Corporate Self-Analysis
Intelligent Business Analysis
by Larraine D. Segil
Corporate Self-Analysis
• Task of examining your own company before
developing plans for the possible use of alliances
in pursuit of company goals
• May require people from various parts of
organization to develop.
Purpose
• Understaing of how we do things (both good and
bad)
• To ease finding of the right partner
• To ease the partner’s understanding of our
organization
Elements
I.
II.
III.
IV.
V.
VI.
The Culture Cluster
The Financial Picture
The Business Definition and SWOT Analysis
The Possible Strategic Direction
The Senior Executive Input
Selection of Alliance Strategy
I. The Culture Cluster
• Understanding about the company’s culture –
unwritten rules, norm, value, reality of the
company
• Potential partner has no way to understand our
culture, so it is important to do this analysis to
prepare for compromise on cultural clashes.
I. The Culture Cluster
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Styles of decision making and problem solving
Authority-delegation and control; reporting methods
Work behavior
Compensation and incentives
Leadership and mentoring styles
Communication-oral; written; nonverbal
Levels of secrecy
Attitude toward time and milestones
Ethics and values
Personal versus corporate goals
1.1)Decision Making and Problem Solving
• Covers all the ways decisions are made in
organaization
• One of the most common areas for culture clash
in alliances
eg- Start-up company vs old, sophisticated company
- Japanese expatriate making all the decisions
1.1)Decision Making and Problem Solving
• It should examine senior-to-senior and seniorto-middle managerial processes (those who are
likely to be involved in alliance)
• “What is the decision-making process within
your organization?”
1.1) Decision Making and Problem Solving
• Also involves how the company solves problems
• Doing this analysis will enable your potential
partner to know how we deal with issues
1.2) Authority-Delegation and Control; Reporting methods
• Issues concerning authority
• “How is authority delegated and what
management controls are in place, including
reporting responsibilities?”
• Not only the official organization chart, but also
the actual one
1.3) Work Behavior
•
•
•
•
Dress
Management of work space
Arrival and departure norms
Task-oriented or process-oriented
• Country cultures affect some work habits
Examples
•
•
•
•
35-hour work week in France
Formal dress of mature company
Casual dress of start-up company
“Not-leaving-before-the-boss” norms in Japan
1.4) Compensation and incentives
1. Every Organization have
standard policies and
procedures on
compensation and
Incentives
2. Different way of looking at
Compensation
Result
"Destroy a strategically
important relationship"
Example:
Salesperson
Alliance
Asian Company Vs US Company
•Who would get the commission and credit?
•Who got the customer relationship?
•Different incentive system
1.5)Leadership and Mentoring Styles
1. Leadership style are often
related to the stages in the
corporate life
2. Mentors are knowledgeable
about internal politics
3. There are many types of
leadership
 Autocratic leader
 Hunter Manager
 Entrepreneuriar
Result
"The lack of understanding of
power structure in the alliance will
lead to a failure of a project "
Example
Michael Dell
Adventure Manager to Hunter
Manger
George Kozmertsky is the mentor
1.6) Communication - Oral, Written;
Nonverbal
• Miscommunication
can occur in any levels
when you combined
country culture
Example
Result
1. Relationship
2. Trust
3. Misunderstanding
Aero space company
culture
•viewgraphs
•data
Partner Research firm
doesn't see it necessary
Can we talk without
overheads?
1.7) Level of secrecy
• Closed-door meeting
• Revealing corporate goal
• Knowing the actual decision
makers
• Example:
• Adventurer Manager
combined with later-phase
Company.
Before the alliance stage we should make the agreement that every
member should admit that some topics or information will
communicate though only certain groups of the project and at which
topic should be informed to every member.
1.8) Attitude toward time and milestone
“now”, “soon” and “on time”
• “Now” = Tomorrow
• Some cultures believe in the
natural progression of
activities
 in Saudi Arabia, believe that
we can’t control the external
progression of activities
Speedcom time VS Judge time
Begins at 9 o’clock by rule
 it real begin at 9.20AM
Judge time  lawyer must be at
the court at 7.29 AM when it
starts at 7.30 AM to answer his
name when the judge call but if
he can’t make it on time his case
will be put off.
1.9) Ethic and Value
Example:
• CEO of milti-billion-dollar
Company found out that the
tactic of his partner is
unethical but anyway it still
legal.
• Western countries consider
“bribery”, other countries
consider a cost of business.
Doing a particular thing is
acceptable your company but
unethical for your partner.
“Frontier Capitalism” evolved into
democratize capitalism
• Stage1: Gangsters and
pirates has highly
influencing.
• Stage2: Family business
began to develop (age of
robber barons).
• Stage3: Foreign
investors entered the
market.
• Stage4: Western mode
of commerce
• Stage5: The legal
institution was
enforced.
1.10) Personal VS Corporate Goal
Multi-Billion-Dollar US Company
VS
Australian chemical industry group
Money VS Relationship
II. Financial Picture
• See the big picture of company
• Learn not to make the same
mistake
• Plan for alliance
• Easier way to observe to learn
other companies.
III. The Business Definition and SWOT
Analysis
1. The listing of SWOT
issues brought issue into
the open
2. To develop an alliance in
context
•Know who you are
•You hope to be
•SWOT that will get you
there
Major people in every
department should be
included
IV. The Possible Strategic Direction
Time
V. The Senior Executive’s Input: “Golf
Cours” and “Designer” Alliances
• A stage where the senior executive take action to
develop the alliance with potential partner
Golf Course Alliance
• Alliance that is established by two CEO meeting
on a golf course and making agreement
• Many early alliances are formed in this kind of
nature
Designer Alliance
• The announcement of the alliance that catches
media and public attentions
• But often falls usually because of poor analysis
VI. Selection of Alliance Strategy
• After all the analysises, you now have enough
information and this is the stage where you
decide what type of alliance strategy is most
appropriate
Develop a Mission Statement
• Set a goal for your alliance activity that is both
qualitative and quantitative
• It sereves as a reference point when you want to
see whether the alliance is working effectively or
not
After the Corporate Self-Analysis
• You have now become able to prevent issues that
could be otherwise avoided by doing analysis
• Once it is done, there is no need to do it in detail
again
After the Corporate Self-Analysis
• Outcome may be that you decide not to go for
alliance
• If you do decide to go for alliance, now you need
to set a timetable and the next major task is
developing alliance partner criteria, followed by
partner search, negotiation, and closure