The New Science of Human Capital
The need to improve the quality and the quantity
Where the talent has the biggest impact?
Business strategy and talent
Break down into components
Process, recourse, supporting document
How much difference that we should make to have a better vision
What’s the problem, where talents can make a difference?
Employees make a difference
To determine who are those people?
How to develop them?
Performance makes a difference, that area, customer service is important
Porter’s Strategies – Generic Strategies
Competitive advantage – what you make above the average
Generic strategies – source of competitive advantages
Porter’s Generic Strategies
Overall cost leadership
Narrow market Business travel
Broad market Airline
The low cost leader in any market gains competitive advantage from being able to many to produce at the lowest cost
Costs are shaved off every element of the value chain
Products tend to be “no frills.” However, low cost does not always lead to low price
Producers could price at competitive parity, exploiting the benefits of a bigger margin than competitors
Some organization, such as Toyota, area very good not only at producing high quality autos at a low price, but have the brand and marketing skills to use a premium pricing policy
Differentiated goods and services satisfy the needs of customers through a sustainable competitive advantage. This allows companies to desensitize prices and focus on value that generates a comparatively higher price and a better margin
The benefits of differentiation require producers to segment markets in order to target goods and services at specific segments, generating a higher than average price
For example, British Airways differentiates its service. The differentiating organization will…