Rejuvenating the Mature Business: The Competitive Challenge - Hardcover

Organizations can rejuvenate and seek industry leadership--even when their industry environment is hostile--if their managers reject standard recipes and create innovative new products, services, and, most importantly, strategies. Illustrated by many examples drawn from a wide range of international businesses, this book challenges conventional theories of strategic management and shows how immense progress has been achieved, even with limited resources, by creating entrepreneurial organizations that capture and gain leverage from experimentation, imagination, and skill enhancement at all levels. The authors identify the common features that lead to success, including a commitment to continuous change and improvement; an organizational climate that encourages experimentation and entrepreneurial behavior; and a recognition of the need to invest in knowledge and human capital. Finally, the authors chart four stages to rejuvention: building a top team, simplifying the organization; building new competitive advantages; and leveraging the new benefits.

In business, as in life, those people who succeed are focused, energetic, creative, persistent - and brave. They not only confront the changes taking place in their environment, but also take charge of change to lead their industries. To help managers of mature businesses take control of their destinies, Rejuvenating the Mature Business outlines a four-step procedure for rejuvenation. Charles Baden-Fuller and John Stopford explain how a mature business can rejuvenate and how it can transform not only itself, but also its industry - even going so far as to rewrite the rules for success. Baden-Fuller and Stopford challenge managers to jettison the traditional thinking that pervades their industry, and to replace it with new, entrepreneurial ideas ranging from distributor relationships to new product design to market scope. They profile such companies as Hotpoint, which broke traditional rules by focusing on a national market when its rivals were international; Benetton, whose innovative strategic supplier alliances have made it a low-capital, high-profit operation; Banc One, whose service innovations revolutionized U.S. consumer banking; and knife manufacturer Richardson Sheffield, whose pioneering quality control, "lean" production strategies, and new product innovations led it from near bankruptcy to world leadership. The stories of these companies and many others, from Toyota to British Airways, dramatize each phase of rejuvenation. How can managers be rejuvenators? The authors emphasize what they call a crescendo approach - starting with experiments using few resources, then working up to larger investments. They clearly lay out the practical steps, demonstrating how managers mustfirst galvanize, creating a top team dedicated to renewal and willing to take new initiatives. They then describe the process of simplification, focusing scarce resources on a few carefully selected goals. Their third step is building new capabilities through strategic innovation. And fourth, they outline the methods for maintaining momentum. Along the way, managers learn why rejuvenators have low staff turnover and high morale; how they can assess and cope with risk; why effective change is like mounting a "strategic staircase"; how value can be delivered - without tradeoffs - to staff, customers, and shareholders alike; how conventional opposites - like high quality and low costs - can go hand in hand; and how economic downturns, fast-changing technology, and fluctuating consumer behavior can be translated into golden opportunities. This book is the rejuvenators' manual, replacing outdated conventional wisdom with powerful new thinking and strategies for success. Reading it should be every manager's first step toward giving their own firms new life.