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Standardizing the brand and supporting marketing programs across all silos of an organization facilitates consistency in look, feel, and message. In addition, the chances of creating synergistic marketing programs will be enhanced, and the organization will be more likely to rally around the brand promise. However, there are situations in which a standardized brand is not optimal or even feasible because it cannot deliver a winning position in a silo market. In that case, there needs to be a process to adapt a master brand so that it has traction in each silo market while maintaining consistency to its core values.
What should the CMO do during the first ninety days of a new or revitalized job? What should be the first-year agenda? The importance of getting off to a good start and avoiding a bad one is crucial for anyone undertaking a change agent role, even if the change has an extended time horizon. The early efforts should have two prongs: assessing the organization's capability to span silos, and creating an action plan.
Organizations need brilliant, break-out-of-the-clutter marketing programs directed at priority markets, especially in these days of media fragmentation. Great marketing is not only cost effective, but will bring silos together. The challenge is how to rise above good to superior in silo markets while creating synergy and leveraging the scope of the organization. This chapter looks at ways of making silos assets instead of hindrances in creating outstanding cross-silo marketing.
Develop a Common Planning Process and Information System: CMO Strategies for Facilitating Silo Cooperationby David Aaker
Apparently sophisticated marketing firms often lack a common planning process across their silo units. In too many cases, the silo units are able to use their homegrown planning process, and the results are predictably uneven and ad hoc. What is optimal is to have both a planning process and a supporting information system that are the same across silos-and this is where the CMO comes in. This chapter describes some prototype silo planning processes and silo-spanning information systems that can serve as a model and point of departure for those attempting to develop or refine their own.
In order to meet the challenge of reducing barriers to silo cooperation, the CMO must take on a new role in the organization. However, there are a variety of roles to choose from, from that of a facilitator to others that are more ambitious. The selection of the right role, which will vary over activities and over time, can be critical to CMO success or even survival. The determination of the country, product, and functional scope of the CMO team will balance and focus scale.
Credibility is the key to CMO success at breaking down silo barriers and fostering cooperation and synergy. Without mutual respect, without an atmosphere where silos include or seek out the CMO's team, progress on cross-silo issues will be slow. This chapter introduces five routes to gaining credibility and buy-in for initiatives.
Most organizations are rightly proud of the decentralized structures that keep managers close to customers and markets, ahead of competitors, and accountable for results. However, relying on unfettered decentralized organizations with highly autonomous silo units is no longer competitively viable. The world has changed. There is too much at stake to allow silo interests to inhibit or prevent the effort toward achieving strong brands and effective marketing. This chapter outlines the specific problems or missed opportunities that are created or worsened by the silo structure and the new role that the CMO must play in conquering these problems.
Most CMOs looking at their organizations see too many brands with too few priorities and too little leverage-a context that makes it difficult to create strong brands and effective marketing. Silos, particularly product silos, can significantly contribute to brand proliferation and the absence of an effective portfolio strategy. Developing a brand portfolio strategy in a silo environment involves making the decision to add or eliminate brands, assign roles and establish priorities, and determine how to leverage the strategic brands. This chapter introduces three frameworks that can help.
A major challenge of creating business strategy is to develop organizational structures that will help overcome the parochialism and power of silo groups. Organizational structures and processes need to be developed that will create silo linking, whereby people can enhance cross-silo information flow and develop and implement programs across silos. This chapter discusses a variety of devices available for firms to forward silo linking, including teams, informal and formal networks, matrix organizations, and centralized marketing groups.
When markets turn hostile, it's no surprise that managers are tempted to extend their brands vertically--that is, to take their brands into a seemingly attractive market above or below their current positions. And for companies chasing growth, the urge to move into booming premium or value segments also can be hard to resist. The draw is indeed strong; and in some instances, a vertical move is not merely justified but actually essential to survival--even for top brands, which have the advantages of economies of scale, brand equity, and retail clout. But beware: leveraging a brand to access upscale or downscale markets is more dangerous than it first appears. Before making a move, then, managers should ascertain whether the rewards will be worth the risks. In general, David Aaker recommends that managers avoid vertical extensions whenever possible. There is an inherent contradiction in the very concept because brand equity is built in large part on image and perceived worth, and a vertical move can easily distort those qualities. Still, certain situations demand vertical extensions, and Aaker examines both the winners and the losers in the game.
Costs, market fragmentation, and new media channels that let customers bypass advertisements seem to be in league against the old ways of marketing. Relying on mass media campaigns to build strong brands may be a thing of the past. Several companies in Europe, making a virtue of necessity, have come up with alternative brand-building approaches and are blazing a trail in the post-mass-media age. In England, Nestle's Buitoni brand grew through programs that taught the English how to cook Italian food. The Body Shop garnered loyalty with its support of environmental and social causes. Cadbury funded a theme park tied to its history in the chocolate business. Haagen-Dazs opened posh ice-cream parlors and got itself featured by name on the menus of fine restaurants. Hugo Boss and Swatch backed athletic or cultural events that became associated with their brands.
As more and more companies begin to see the world as their market, brand builders look with envy upon those businesses that appear to have created global brands--brands whose positioning, advertising strategy, personality, look, and feel are in most respects the same from one country to another. Attracted by such high-profile examples of success, these companies want to globalize their own brands. But that's a risky path to follow, according to David Aaker and Erich Joachimsthaler. Why? Because creating strong global brands takes global brand leadership. It can't be done simply by edict from on high. Specifically, companies must use organizational structures, processes, and cultures to allocate brand-building resources globally, to create global synergies, and to develop a global brand strategy that coordinates and leverages country brand strategies. Aaker and Joachimsthaler offer four prescriptions for companies seeking to achieve global brand leadership. First, companies must stimulate the sharing of insights and best practices across countries--a system in which "it won't work here" attitudes can be overcome. Second, companies should support a common global brand-planning process, one that is consistent across markets and products. Third, they should assign global managerial responsibility for brands in order to create cross-country synergies and to fight local bias. And fourth, they need to execute brilliant brand-building strategies. Before stampeding blindly toward global branding, companies need to think through the systems they have in place. Otherwise, any success they achieve is likely to be random--and that's a fail-safe recipe for mediocrity.
Gordon Johnston has taken his elite health-club concept from the germ of an idea to the pinnacle of success. But the most difficult decision in managing his company lies ahead. Gordon must figure out how to lead Transition fitness clubs into the next phase. In each of the 15 years since Transition's flagship club opened in New York City, its sales have doubled. The company boasts fitness trainers handpicked by Olympic medalists, health-conscious cuisine by in-house chefs, huge facilities in prime locations, and reciprocal memberships at other Transition clubs worldwide. But recently, the company's margins have been shrinking. An aging membership could mean problems for future expansion. And new, upscale competitors are challenging Transition's flat-rate pricing policy. Will Gordon have to run fast to stay in one place? Should he change Transition's pricing policy? In 95205 and 95205Z, William Campbell, Robert J. Dolan, Anita K. Hersh, Peter H. Farquhar, David Aaker, and Mary Shelman offer advice on this fictional case study.
HBR Case Study
Examines the organizational strategy of a professional football team that contributed to the team's sustained success. Considers several aspects of the team's "blueprint" with respect to players: recruitment, retention, task structure, training, culture, and compensation. Presents opportunities to explore: the potential complementarities between multiple human resources systems, the role of intrinsic motivation and extrinsic incentives, whether star players are incompatible with well-functioning teams, and the establishment and maintenance of a culture that reinforces goal alignment.
At a March 2004 annual shareholder meeting, 45% of Walt Disney Co.'s shareholders withheld their support from CEO and Chairman Michael Eisner, producing a large no-confidence vote in the company's leader. The company had struggled financially in recent years and the board was widely believed to be beholden to Eisner. Two directors, Roy Disney and Stan Gold, resigned in protest of Eisner's leadership and the board's unwillingness to change. The two began to wage a PR battle calling for Eisner's removal and asking all shareholders to withhold their support from him at the upcoming shareholder meeting. Traces the history of Eisner's reign at the company and the events leading up to the March 3, 2004, shareholders meeting.
A gritty, riveting, and wholly original murder mystery from PEN/Hemingway Award-winning author and 2015 Edgar Awards winner Chris Abani Before he can retire, Las Vegas detective Salazar is determined to solve a recent spate of murders. When he encounters a pair of conjoined twins with a container of blood near their car, he's sure he has apprehended the killers, and enlists the help of Dr. Sunil Singh, a South African transplant who specializes in the study of psychopaths. As Sunil tries to crack the twins, the implications of his research grow darker. Haunted by his betrayal of loved ones back home during apartheid, he seeks solace in the love of Asia, a prostitute with hopes of escaping that life. But Sunil's own troubled past is fast on his heels in the form of a would-be assassin. Suspenseful through the last page, The Secret History of Las Vegas is Chris Abani's most accomplished work to date, with his trademark visionary prose and a striking compassion for the inner lives of outsiders.From the Trade Paperback edition.
For Mack and her barfly allies, solving homicides calls for equal parts instinct and wit. To strain out a crafty criminal, the mixture has got to be absolutely perfect . . . It's a week before Christmas, but Milwaukee bar owner Mackenzie "Mack" Dalton is hardly in good spirits. Chilled to the core by the murder of bouncer Gary Gunderson, Mack is determined to use her extra perceptive senses to identify the gunman responsible. Did Gary's patchy past brew up some fatal trouble, or could his death be linked to a series of cryptic letters concocted by Mack's anonymous adversary? With a second case to crack, innocent lives at stake, and a media frenzy in their midst, Mack and her barstool detectives have little time to mull over the grim details--especially when clues lead dangerously close to home . . . Includes drink recipes "The first book in the Mack's Bar Mystery series is a hit!" --RT Book Reviews on Murder on the Rocks"Murder with a Twist has a lot of sleuthing pleasure packed into its pages." --Fresh Fiction
This masterpiece of science (and mathematical) fiction is a delightfully unique and highly entertaining satire that has charmed readers for more than 100 years. The work of English clergyman, educator and Shakespearean scholar Edwin A. Abbott (1838-1926), it describes the journeys of A. Square, a mathematician and resident of the two-dimensional Flatland, where women-thin, straight lines-are the lowliest of shapes, and where men may have any number of sides, depending on their social status.Through strange occurrences that bring him into contact with a host of geometric forms, Square has adventures in Spaceland (three dimensions), Lineland (one dimension) and Pointland (no dimensions) and ultimately entertains thoughts of visiting a land of four dimensions--a revolutionary idea for which he is returned to his two-dimensional world. Charmingly illustrated by the author, Flatland is not only fascinating reading, it is still a first-rate fictional introduction to the concept of the multiple dimensions of space. "Instructive, entertaining, and stimulating to the imagination." -- Mathematics Teacher.
Major Harry Abbott wrote this book of his experiences as the military chaplain of Combat Command B of the 13th Armored Regiment of the 1st Armored Division during the North African campaign soon after returning Stateside. He and his fellow chaplains made ceaseless efforts to care for the spiritual and physical needs of the men in their charge. He was frequently called upon to tend to the sick and wounded, he attested to the tremendous courage displayed by the GIs of his unit as they grappled with the veteran Afrika Korps in North Africa. As alluded to in the title many of his charges faced their religious decisions differently under the fired of the deadly German 88 anti-tank gun; he assiduously noted that "there are no atheists in foxholes." Also in charge of the burial parties sent to ensure the proper respect for the fallen, he describes this lesser known part of the US military effort. Illustrated throughout with his own photographs.
Sam Capra is on a one-man mission to find his brother . . . And to stop a war.THE FIRST ORDERTwo brothers. One dead, executed by extremists on a grainy video. The other forged into a top undercover agent. But now, Sam Capra has reason to believe that his brother, Danny, may be alive. And if Danny has been living a secret life these past years, where has he been--and what has he become?Sam's desperate search for his brother leads him into a modern heart of darkness: the Russian elite inner circle, a group of ruthless ex-KGB billionaires who owe fealty to Russia's corrupt president, Morozov. One of these men wants Morozov dead. And Danny will be the one to kill him--on American soil.To save his brother--and to save the world from certain war--Sam, along with his mysterious partner, Mila, must stop Danny from killing Morozov. The mission will take Sam from the slums of Pakistan to the hipster galleries of Brooklyn to the Caribbean playgrounds of the superrich. And as Sam untangles the secret past locked in his brother's heart, he may be forced to make a choice between his brother--and the greater good . . .
The sales representatives at Designs by Kate (DBK) sell private label jewelry at hosted parties and through online social media channels. They are also responsible for recruiting, training, and managing new sales reps. CEO and founder Kate Creevey designed the commission plan to encourage sales reps to build teams and become "leaders" for their teams. The strategy has been very successful over the company's first five years. Now the CEO is concerned that growth in top-line revenue is slowing, possibly due to an unwillingness by current sales representatives to build and manage their own sales teams. A survey reveals that many sales reps believe their incomes from jewelry sales decline when they add members to their sales teams due to increased competition for hosting parties within the same geographic area. The CEO must revisit the commission structure to determine if it is still an effective incentive. The case includes a quantitative assignment that students should complete as part of case analysis.
Surveys scholarship on democracy and democratization. Describes the relationship between democracy and the environment of business, including capitalist economic institutions, economic growth, economic reform, and international relations.
Operations of Royal Dutch/Shell in Russia included a strategic alliance with Gazprom, the country's natural gas monopoly, the development of the Salym oil fields in Siberia, and a small retail refilling network in St. Petersburg. Focuses on the Sakhalin II project. Sakhalin II is the reason for the existence of the Sakhalin Energy Investment Co. (SEIC), owned by Royal Dutch/Shell (55%), Mitsui (25%), and Mitsubishi (20%). Worth approximately $10 billion, the second phase of Sakhalin II would be the single largest investment decision in the history of Royal Dutch/Shell, as well as the single largest foreign direct investment in Russia's history. Sakhalin II would also be the largest integrated oil and gas project in the world. The project, however, faces a number of challenges, however. A production sharing agreement (PSA)--a commercial contract between the foreign investor and a host government that replaces the country's tax and license regimes for the life of the project--governs Sakhalin II. Although Sakhalin II's PSA enjoys the status of Russian law, other Russian laws conflict with the terms of the PSA. PSAs have also become controversial within Russia. After several years of waiting in vain for "legal stabilization," Shell and SEIC executives must decide whether the project should go forward.
Describes Russia's troubled economic transition since 1991, highlights the problem of institutional development, and surveys the challenges President Vladimir Putin faced in 2000. The first section provides a brief synopsis of liberalization, stabilization, and privatization under President Boris Yeltsin. The second section describes the economic difficulties Russia experienced during the 1990s involving demonetization, federalism, taxes, contract enforcement, the legal system, the 1998 financial crisis, and public health. Concludes with President Putin's political and economic plans.
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