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[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

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The method of vertical expansion is fundamentally either upstream or downstream. The criteria for upstream and downstream refer to moving towards manufacturing if transitioning from the current business model, or towards retail if transitioning from the current business model. Additionally, approaching the final end user is also a perspective to consider. Upstream expansion involves entering businesses that have manufacturing or construction functions. It does not necessarily require capital investment by the company itself; instead, it can involve outsourcing or subcontracting to have manufacturing or construction capabilities while executing projects based on the company's own plans. A representative company is Uniqlo. A common example of downstream expansion is when a lumber company undertakes new residential construction or renovations and transforms into a housing company (Tama Home). Downstream expansion is a method of entering fields that are closer to consumers. Next, horizontal expansion involves entering peripheral or niche fields. For example, a housing company or construction firm may enter the remodeling sector in a separate division, or a building materials sales company may engage in termite extermination or house cleaning, all of which are expansions into peripheral fields related to housing. The key points of horizontal expansion are entering fields where a gross profit margin can be obtained (compared to the current core business) and being able to leverage existing personnel from traditional businesses. It involves entering niche areas where there are few or no existing competitors and which have future potential.

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[Column] Team Management in the 21st Century: Building Teams with Participation from All Employees

[Column] Team Management in the 21st Century: Building Teams with Participation from All Employees

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Participation means thinking for oneself, making judgments, taking action, and taking responsibility. In contrast, mere attendance is just being present. The goals and objectives of the company and team are the same for all employees. However, the roles of the management, leaders, and members are different. There are countless themes that cannot be linked to results by just one manager or one leader. When all members think for themselves about what their team and individual roles should be, make judgments, and take action, a sense of ownership begins to emerge. This leads to a strong attachment to achieving results. Consequently, the level of joy experienced upon achievement increases. A company that can strongly feel this sense of experience becomes a "company where employees feel joy in working," and because individuals feel fulfilled by being needed by this company and team, they find happiness as workers. Members desire not only personal satisfaction gained from the company, such as rewards and promotions, but also satisfaction from achieving the company's goals and the joy of participating in that process. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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[Column] Working to Move the Team with the Team

[Column] Working to Move the Team with the Team

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Teamwork refers to the ability to take individual actions while maintaining a coordinated effort as a team. The importance of teamwork lies not just in improving the relationships among the people involved, but in the fact that things that are difficult to achieve with individual abilities and strengths can be accomplished by the team. Simply gathering the necessary number of people to work does not guarantee effective teamwork. A team fundamentally begins with all members having a sense of ownership as part of the team, sharing a common purpose and goals, and collaborating on the process to achieve them. To strengthen teamwork, it is necessary to engage in team building, and there are four key points to consider: ■ Sharing purpose and goals (understanding the purpose, goals, and methods) ■ Enhancing participation motivation (understanding what one needs to do) ■ Skill development (improving one's own work capabilities) ■ Cooperation (knowing and adhering to team rules) *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.

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[Column] Principles of Combat

[Column] Principles of Combat

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Stability allows for the creation of battles. The term "base" is a commonly heard expression. The representative indicators that reflect the state of management include: ■ Stability - Represents the stability and risk level of management ■ Profitability - Represents the structure of sales and expenses to secure profits ■ Productivity - Represents the quantity and quality of sales and gross profit generated by employees ■ Turnover - Represents the turnover and utilization of goods and assets, which are one source of profit ■ Growth - Represents the degree of growth in scale compared to the past, present, and future All management indicators are based on balance. For example, when making capital investments, profitability may temporarily decline, but growth will increase. In other words, there are management indicators that are crucial at any given point due to management strategies, but when asked which is the most important among these, I am convinced that it is "stability." In battle, having something that can be read as "they should be able to do this much..." allows for the development of tactics and combat strategies. That which can be read = the base. *For more detailed content of the column, you can view it through the related links. For more information, please feel free to contact us.*

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[Column] You cannot become a member of a fighting group if you do not know about the company or the product.

[Column] You cannot become a member of a fighting group if you do not know about the company or the product.

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Everyone knows themselves well. There are no employees who cannot answer questions about their birth date, blood type, zodiac sign, or the origin of their name. However, when asked about the company's founding date, number of employees, annual sales, history, main bank, or the selling points of its products, few employees can answer adequately. It's not that "the grass is greener on the other side," but employees know less about their own company than the president imagines. If you think this is hard to believe, it would be beneficial to create a test from your company's brochures or website and conduct it; you will likely be astonished by the reality. When you think about it calmly, it's remarkable that small and medium-sized enterprises attempt to compete without knowing their own company’s overview or products. They waste time without any sense of problem awareness, which hinders growth. Such a group can be referred to as a rabble. In other words, they cannot be recognized as members of a fighting group. *For more details on the column, please refer to the related links. Feel free to contact us for more information.

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