【正文】 the maximization of the overall social welfare function by the accumulation of numerous personal decisions the customer being seen as being in the best position to determine what they want 2020/7/6 William A. Fischer 8 Establishing the Arena [A market is] that set of suppliers and demanders whose trading establishes the price of a good. Gee Stigler amp。D budgets are highly vertically integrated have little diversification have low debt highly specialized in their anization HighPerforming Focused World Consumerists focus less internationally spend heavily on advertising have low debt diversification almost nonexistent Capon, Farley amp。 Value Migration Value Migration is not new. Value migrated away Ford抯 vertically integrated, singlecarfocused business design toward GM抯 priceladdered business design in the 1920s. It moved from grocery store chains to supermarkets in the 1930s, from fragmented merchandisers to national catalogue sales in the 1890s (Sears), and to national merchandise chains in the 1920s (Sears again). Adrian J. Slywotzky There are always winners and losers in the Value Migration process. 2020/7/6 William A. Fischer 37 We Must Reetablish the Arena [there is a big difference between] defining petitors as 搕 hose panies that do the same thing that we do 厯 [and] defining them [instead] as those business designs that customers can choose from in satisfying their priorities. Adrian J. Slywotzky [Where] a business design is the totality of how a pany selects its customers, defines amp。 Hoenig 2020/7/6 William A. Fischer 24 Early Lessons from In Search of Excellence Excellent firms are characterized by (among other things: Bias for Action Close to the Customer Autonomy amp。 it follows. It is losing market share, it is losing capabilities, it has the wrong set of petencies, it is demoralized, its activities have little impact. In fact, all around us we can observe panies that are in a state worse than death they have joined the living dead, aware (or not) that whatever they do makes little difference to their situation, and yet they feel pelled to keep on acting, producing, carrying on. Death is most often a long drawn out affair. Even with inept management, it still takes a long time to destry a large pany with once strong, if currently obsolete capabilities. Death is no stranger to the ranks of once powerful manufacturing panies. Every industry has its share of the dead, as well as the terminally ill and the walking wounded. Tom Vollmann: 2020/7/6 William A. Fischer 22 Death Signals of the nonpetitive ? staying level of falling behind the petition ? risk aversion ? bureaucracy ? losing capabilities ? erosion of what were once distinctive petencies ? internal focusing of corporate attention ? limited knowledge of the customer ? panic decisions to reduce shortrun costs ? not developing people ? ? Tom Vollmann 2020/7/6 Willi