Archivio per autore per: markusvenzin

Overcoming the divestment trauma*

Reading time: 5 minutes

16 Gen
16/01/2017
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

Why do so many firms have unfocused business portfolios? Too often, firms pay more attention to adding new businesses to accelerate growth than to divesting existing activities that do not provide the desired results. It is (apparently) easier to add another product category than to gain market share in an existing category. Many managers find it hard to turn down creative ideas, so they let colleagues continue to develop them. At some point – without a deliberate, informed decision – the ideas become too big to stop. On the contrary, it seems to be impossible to build a reputation, a career by identifying and executing divestments.

Companies often have low awareness about the strategic importance of divestitures, often considered a last resort. They also miss the psychological and behavioural dynamics behind these moves. Therefore, the majority of divestitures are reactive at best, tardy at worst, and thus, value-destroyers. Of course, it may be helpful to create a position within a firm based on the identification and execution of divestment opportunities.

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Are you exploiting your Multinationality Advantage?

Reading time: 5 minutes

29 Giu
29/06/2016
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

Many Italian firms have increased their international presence substantially in the past two decades. The challenge these firms face now is to take advantage of their international footprint without suffering from what McKinsey has labelled “the Globalization Penalty”.

They try to generate multinationality advantage by creating larger, more specialized production hubs that serve several countries, by reducing fixed costs through the creation of regional headquarters, by leveraging on knowledge generated in different geographies, or by exploiting a firm’s specific resources such as talents, brand equity, technologies, and patents across multiple markets to increase revenues, reduce costs or manage risks.

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Knowledge Management: common sense, not common practice

Reading time: 6 minutes

13 Apr
13/04/2016

Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

One of the main reasons why multinational firms exist is because they gain competitive advantage over purely local rivals by sharing knowledge across borders. But after more than two decades of articles and projects around the topic of management of knowledge (KM), KM as a managerial tool in multinational corporations (MNCs) is still showing a varying degree of impact, depending on the internal organizational culture, the incentives provided for collective participation or the ability of companies to effectively exploit the knowledge they produce on a global scale.

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The Corporate Entrepreneurship Equation

Reading time: 7 Minutes

27 Gen
27/01/2016
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

You do not frequently run into entrepreneurs in large, complex organizations. They are not attracted by all these rules, procedures and hierarchies. They prefer to work in small, agile firms or start their own venture.
If they end up in big firms, it is usually due to a recruiting mistake or the young entrepreneur’s belief that it is less costly to make the big mistakes somewhere else and after she gained some experience start her own venture. But soon salaries become better, risk-tolerance lower and the motivation to leave the safe corporate world is getting lower and lower.
And then hey, you can still be an entrepreneur in a large firm, can’t you?

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Strategy Talk: How to organize strategy meetings that work*

Reading time: 6 Minutes

11 Nov
11/11/2015
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

On a scale from 1 (not at all) to 10 (very much), how satisfied are you with your strategy meetings?

My feeling is that most managers are reasonably good at running meetings that are concerned with operational, short-term issues. But when they are called to organize a strategy workshop, many of them miserably fail.

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