What can explain the longevity gap between a company that survives for centuries--the Swedish company Stora, for example, which is more than 700 years old--and the average corporation, which does not last 20 years? A team at Royal Dutch/Shell Group explored that question. Arie de Geus, a retired Shell executive, writes about the team's findings and describes what he calls living companies-organizations that have beaten the high mortality rate of the average corporation. Many companies die young, de Geus argues, because their policies and practices are based too heavily on the thinking and language of economics. Their managers focus on producing goods and services and forget that the organization is a community of human beings that is in business--any business--to stay alive. In contrast, managers of living companies consider themselves to be stewards of a long-standing enterprise. Their priorities reflect their commitment to the organization's long-term survival in an unpredictable world. Like careful gardeners, they encourage growth and renewal without endangering the plant they are tending. They value profits the same way most people value oxygen: as necessary for life but not the purpose of it. They scuttle assets when necessary to make a dramatic change in the business portfolio. And they constantly search for new ideas. These managers also focus on developing people. They create opportunities for employees to learn from one another. Such organizations are suited for survival in a world in which success depends on the ability to learn, to adapt, and to evolve.
Although brand theorists suggest that what a person knows about a company (i.e., corporate associations) can influence perceptions of the company's products, little systematic research on these effects exists. The authors examine the effects of two general types of corporate associations on product responses: One focuses on the company's capabilities for producing products, that is, corporate ability (CA) associations, and the other focuses on the company's perceived social responsibility, that is, corporate social responsibility (CSR) associations. The results of three studies, including one that measures respondents' CA and CSR associations for well-known companies and one that uses consumers recruited in a shopping mall, demonstrate that (1) what consumers know about a company can influence their beliefs about and attitudes toward new products manufactured by that company, (2) CA and CSR associations may have different effects on consumer responses to products, and (3) products of companies with negative associations are not always destined to receive negative responses. The authors conclude by discussing the implications of these findings for marketing managers and further research.
The Idea of a Learning Company Why is The Learning Company Relevant Now? Are You a Learning Company? The Biography of Your Company Era Spotting Becoming a Learning Company 101 Glimpses of the Learning Company Unfinished Business.
In this article, the authors try to determine why and under what conditions consumers enter into strong, committed, and meaningful relationships with certain companies, becoming champions of these companies and their products. Drawing on theories of social identity and organizational identification, the authors propose that strong consumer–company relationships often result from consumers’ identification with those companies, which helps them satisfy one or more important self-definitional needs. The authors elaborate on the nature of consumer–company identification, including the company identity, and articulate a consumer-level conceptual framework that offers propositions regarding the key determinants and consequences of such identification in the marketplace.
Subjective measures of company performance are widely used in research and typically are interpreted as equivalent to objective measures. Yet, the assumption of equivalence is open to challenge. We compared the use of both types of measure in 3 separate samples. Findings were consistent in showing that: (a) subjective and objective measures of company performance were positively associated (convergent validity); (b) those relationships were stronger than those between measures of differing aspects of performance using the same method (discriminant validity); and (c) the relationships of subjective and objective company performance measures with a range of independent variables were equivalent (construct validity).
A glance at an organizational chart can show who's the boss and who reports to whom. But this formal chart won't reveal which people confer on technical matters or discuss office politics over lunch. Much of the real work in any company gets done through this informal organization with its complex networks of relationships that cross functions and divisions. According to consultants David Krackhardt and Jeffrey Hanson, managers can harness the true power in their companies by diagramming three types of networks: the advice network, which reveals the people to whom others turn to get work done; the trust network, which uncovers who shares delicate information; and the communication network, which shows who talks about work-related matters. Using employee questionnaires, managers can generate network maps that will get to the root of many organizational problems. When a task force in a computer company, for example, was not achieving its goals, the CEO turned to network maps to find out why. He discovered that the task force leader was central in the advice network but marginal in the trust network. Task force members did not believe he would look out for their interests, so the CEO used the trust map to find someone to share responsibility for the group. And when a bank manager saw in the network map that there was little communication between tellers and supervisors, he looked for ways to foster interaction among employees of all levels. As companies continue to flatten and rely on teams, managers must rely less on their authority and more on understanding these informal networks. Managers who can use maps to identify, leverage, and revamp informal networks will have the key to success.
Abstract How has Japan become a major economic power, a world leader in the automotive and electronics industries? What is the secret of their success? The consensus has been that, though the Japanese are not particularly innovative, they are exceptionally skilful at imitation, at improving products that already exist. But now two leading Japanese business experts, Ikujiro Nonaka and Hiro Takeuchi, turn this conventional wisdom on its head: Japanese firms are successful, they contend, precisely because they are innovative, because they create new knowledge and use it to produce successful products and technologies. Examining case studies drawn from such firms as Honda, Canon, Matsushita, NEC, 3M, GE, and the U.S. Marines, this book reveals how Japanese companies translate tacit to explicit knowledge and use it to produce new processes, products, and services.
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Acknowledgments. Introduction. 1. The Case for Doing at Least Some Good. 2. Corporate Social Initiatives: Six Options for Doing Good. 3. Corporate Cause Promotions: Increasing Awareness and Concern for Social Causes. 4. Cause-Related Marketing: Making Contributions to Causes Based on Product Sales. 5. Corporate Social Marketing: Supporting Behavior Change Campaigns. 6. Corporate Philanthropy: Making a Direct Contribution to a Cause. 7. Community Volunteering: Employees Donating Their Time and Talents. 8. Socially Responsible Business Practices: Discretionary Business Practices and Investments to Support Causes. 9. Twenty-five Best Practices for Doing the Most Good for the Company and the Cause. 10. A Marketing Approach to Winning Corporate Funding and Support for Social Initiatives: Ten Recommendations. Notes. Index.
Preface Chapter 1 In Good Company Chapter 2 Trust: The Air We Breathe Chapter 3 Networks and Communities: The Ties That Bind Chapter 4 Social Place, Social Time Chapter 5 Social Talk and Story: The Voice of Social Capital Chapter 6 The Challenge of Volatility Chapter 7 The Challenge of Virtuality Coda The Future of Social Capital Notes Suggested Readings Index About the Authors
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