Archivio tag per: venzin

Fixing Greece: why not treat it like a troubled subsidiary

Reading time: 5 minutes

09 Lug
09/07/2015
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

What are the next steps now after the strong “ókhi” (no) vote of the Greek population against the last bail out offer from the creditors? The EU can’t let Greece fall by the wayside. There is so much more at stake than the cost of a bailout: Patients struggle without medicines and elderly citizens cry in front of closed banks because they can no longer access their pensions. Children are hit hard as services dry up. The EU cannot say "this is not our problem anymore."

To find a solution, let's take for a moment a management perspective, with Greece being a subsidiary, and the EU its parent company. How would the top management team of this multinational company handle the issue?

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Stop milking this cash cow! The pitfalls of portfolio matrices*

Reading time: 7 minutes

29 Apr
29/04/2015
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

The BCG matrix and modified portfolio planning tools have for a long period of time occupied a fundamental position in corporate planning departments as well as in business school courses. With this contribution, I attempt to show that the BCG matrix has a number of flaws and its application is rather problematic. The Boston Consulting Group’s (BCG) growth share matrix – and its close relatives (most prominently the GE/McKinsey matrix) - is one of the best known and persistent tools in strategic management. At the height of its success between 1972 and 1982, the BCG matrix was used by around 45% of the Fortune 500 companies. In 1975, the prominent strategy scholar Peter Lorange asserted that the growth share matrix has become the common method of corporate planning.

The apparent simplicity of having reduced a complex decision problem to a two dimensional matrix was of intuitive appeal. The central assumption was based on academic research (i.e., the PIMS study) and managers located in corporate headquarters were able to show their value added for their businesses. The proliferation of portfolio planning as a resource allocation tool was accelerated by the BCG consultants and their competitors like McKinsey, and Arthur D. Little which developed similar matrixes together with their clients.

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VIDEO: Le aziende sono abbastanza resilienti per affrontare il contesto attuale? – Are Companies Resilient Enough in The Current Climate?

Reading time: 2 minutes

15 Mar
15/03/2015
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

Lo scenario della “Nuova Normalità” è destinato a perdurare, pertanto le aziende devono diventare più forti se vogliono sopravvivere alle sfide odierne e future. Markus Venzin, Direttore CDR, Claudio Dematté Research in SDA Bocconi, ha sviluppato un modello denominato VOLARE (Volatility + Return of Equity), che misura la resilienza di un’azienda e la sua capacità di sopravvivere in tempi di instabilità sulla base degli indicatori chiave di performance. Il Prof. Venzin ritiene che la performance debba essere misurata in modo diverso e spiega cosa deve fare un’azienda per sviluppare una crescita proficua sostenuta oggi e negli anni a venire.

The new normal is here to stay and companies must become more resilient if they are going to survive challenging times of today and tomorrow. Markus Venzin, Director of the Strategic & Entrepreneurial Management Department at SDA Bocconi has created a model called VOLARE (Volatility +Return of Equity) which measures a company’s resilence and ability to survive these turbulent times based on key performance indicators. Prof. Venzin asserts that business performance needs to be measured differently and discusses what exactly it takes for a company to have sustained profitable growth today and in years ahead.

SWOT Analysis: Such a Waste Of Time?

03 Feb
03/02/2015
Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management

In a strategy process, the current situation is often depicted as a SWOT (strengths, weaknesses, opportunities, threats) analysis. A SWOT analysis is not much more than a simple listing of the factors falling under the four categories. It highlights the interaction among the company’s strengths and weaknesses, and the opportunities and threats in the marketplace. Strengths and weaknesses are judged by comparing the company’s own resources and capabilities with those of (potential) competitors. Opportunities and threats are determined through market analysis.

Surveys have revealed that the SWOT analysis ranks very high in the list of the most often used management tools. Maybe because the methodology is apparently simple to understand and to use. In a brainstorming session, it is relatively easy to come up with a list of internal and external factors that potentially shape the future of the firm.
However, I have seen too many flawed SWOT analysis’ in my professional life. The purpose of the article is therefore to discuss the most common mistakes made while using the tool and to contribute to a more sophisticated application of the SWOT methodology.

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Why we need a paradigm shift in leadership

Reading time: 5 minutes

18 Dic
18/12/2013

Foto del profilo di Markus Venzin

by Markus Venzin

SDA Professor of Strategic and Entrepreneurial Management


Are you happy with how things are going in society, politics and business?

The 2013 Edelman Trust Barometer is at a historical low and indicates that times demand that leaders should behave differently. Take the financial services industry as an example: The global economic decline and the liquidity crisis are often dated to various events, including when BNP Paribas terminated withdrawals from three hedge funds (2007), the U.S. subprime mortgage crisis and the bursting of the U.S. housing bubble, the plummeting of the values of securities tied to U.S. real estate pricing, and the overall damage of financial institutions globally

The reasons for the crisis were manifold: excessive financial leverage (including the use of off-the-balance-sheet financial vehicles), ill-considered acquisitions, diversification based on dubious synergies, flawed risk management and governance systems, as well as problems of vertical and horizontal coordination along the wider banking value network. The economic side effects cascaded globally, impacting the European sovereign debt crisis, which created high levels of household debt, trade imbalances, and record-high unemployment, thus imposing severe austerity measures.  In the financial industry, many banks have lost more than 90% of their share price, scores of banks were foreclosed, and of those that survived, many have yet to fully recover. Leggi tutto →