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Bill Gates, Steve Jobs and Warren Buffett’s school of thought on business strategy - Alldamoney

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Bill Gates, Steve Jobs and Warren Buffett’s school of thought on business strategy

The ground for choosing these three is that the companies they led, Microsoft, Apple and Berkshire Hathaway became the most valuable company in the world at some point and we believe it's undisputed that the three individuals did accomplish much over the length of their careers.
Bill Gates

A natural strategist, in 1980 IBM came to him in for an operating system for their new personal computer; he sent them off to another company run by Gary Kildall. He clearly understood the opportunity that was ahead to create the foundation for a whole new industry when IBM came back to him. As time went on, there have been several examples of brilliant strategic moves by Gates that includes: putting his resources behind Windows; breaking with IBM; embracing and extending the Internet; and then rebuilding Windows and Microsoft Office around the Internet.

What are the lessons on Gates execution and organization?
Gates knew success doesn't happen overnight, but comes with the culmination of hard work. Driven by his passion, he spent years working from his garage, developing coding and programming, and learning how to create a solution with global reach.
Success it is not just about thinking up a good idea. A leader should get in there and get the work done because Leadership requires action and the passion so that to that good idea can be turned into a sustainable revenue machine.
Gates  understood coding and algorithms, which allowed him to go one-on-one with engineers, but he learned that he couldn't personally run whole areas of the company so he went outside to hire talented managers with different backgrounds and experiences to run operations.
Looking forward
A leader should always be prepared for the unexpected so that no matter what happens, the can carry on Despite Gates’ phenomenal success, he did have to contend with antitrust litigation claiming that Microsoft was a monopoly therefore a leader must continue to look forward, unfazed by any barriers or missteps along the way.
Constantly Evolving
As he noted, “it's fine to celebrate success, but it is more important to heed the lessons of failure.” He also stated that: “Your most unhappy customers are your greatest source of learning. ”A leader should not be static; they should dynamic, Him being a legend of evolution to stay relevant.
Gates understood that the market keeps shifting in its needs and desires ,therefore for Microsoft to maintain its leadership position, it had to continually reinvent itself, moving from just software packages for Office to a web browser to new enterprise solutions.
Steve Jobs

Steve Jobs and his team took 15 years to transform Apple into the most valuable company in the world applying ingenious strategy, a leader with great product instincts who had to learn the essential strategies in the high-tech world.
With Apple the initial strategy was great products, one product at a time. But with pressure from his management team in the 2000s Steve gradually agreed to adopt a broader platform strategy after resisting for years with a vision of a digital hub that targeted Windows as well as Macintosh users.
NeXT was pondering on producing high-powered computer workstations In 1991 but being able to figure out its target customer was a challenge. Was NeXT competing with Sun Microsystems, which focused on the workstation marketplace? Or did NeXT want to compete with Apple and PC manufacturers for a piece of that enormous market.
Jobs and his team were simply ahead of the game in reality; take a look at the users of high-powered iMacs and MacBook Pros today: the creatives, the writers and bloggers, the small-business owners.
Then  the Flexible working and a changing industrial landscape  blurred the lines between professionals and consumers  over time, but Jobs and his team succeeded and built a strong and loyal following that gave Apple the reputation of the best in its class.
Warren Buffett

Warren Buffett while a legendary investor is also a successful business person. In reality, his business initiatives are the core to his investing success and advice that he has provided over the years. Buffett  Early in his career said, "I'm 85% Benjamin Graham." Graham is the godfather of value investing and introduced the idea of intrinsic value  the underlying fair value of a stock based on its future earnings power.
Buffett is known to restrict himself to his "circle of competence” that is to the businesses he can understand and analyze.
His notable advice is “investment success is not a matter of how much you know, but rather how realistically you define what you don't know”. Buffett understands that operating a business is based on the gasp of the prerequisite as a viable of forecast on future business performance.
After all, how can you project performance, if you don't understand the business? Buffett's business strategies support the goal of producing a robust projection. First, you analyze the business, not the market or the economy or investor sentiment and then look for a consistent operating history. Lastly, apply that data to determine whether a business long-term prospect is favorable.
Lessons
The Lessons for managers and strategists here is that great strategists are like chess players or game theorists.  While it's natural instinct to look backward and then reason forward about what they need to do today, which involves learning from history, thinking about the problems the business had yesterday, and how to solve similar problems tomorrow. They need to think several steps ahead to the end of the game and then reason back to what that means about what they need to do today.
Managers need to think where they want their business to be seven years down the road and figure out what are the priorities and boundaries of what they need to do as a company today to achieve that.
They need the ability to anticipate customer needs not just solving the customer problems of today, but what the customer is going to need in future. Then match that to their abilities to deliver in terms of new products and new processes over the next period of years.
Strategists will also have to think about changes taking place in the industry and how it will impact the whole industry at large

Finally, you as a manager  need to anticipate your competitors' actions and  find ways to systematically build barriers and imitations to entry in order to avoid a situation where  that competitor will take away your market share or advantage along the way.


Video: Secrets of their success




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