Week 89 (28.12.08)

Learn (Exploring Corporate Strategy - Strategic Choice, Pg 21)

Strategic analysis provides a basis for strategic choice.

1. Identifying bases of strategic choice.

• Some of these bases of strategic choice arise from an understanding of stakeholder expectations and influence; and it may be important to reflect these in statements of strategic mission and intent which provide overall guidance about the nature of aspirations of the organisation.
• There are also bases of strategic choice in terms on how the organisation seeks to compete, at SBU level.
• This requires an identification of bases of competitive advantage arising from an understanding of both markets and customers, and special competences that the organisation has to offer which contribute to its generic strategy.

1. Generation of strategic options.
2. Evaluation and selection of strategic options.

• In deciding between options, we have to ask a series of questions.
• First, which of these options built upon strengths, overcame weaknesses and took advantage of opportunities, while minimising or circumventing the threats that the business faced?
• This is assessment of the suitability of the strategy. (If the resource capability can be developed, or "strectched", to yield new opportunities)
• Second question is to what extent could a strategic option be put into effect? These are questions of feasibility.
• Eg: Could required finance be raised, sufficient stock be made available at the right time and in the right place, staff be recruited and trained to reflect the image was trying to project?
• Even it these criteria could be met, would the choice be acceptable to the stakeholders? Would this be acceptable to the corporate centre? All these acceptable risk is an important criterion.

Useful though such criteria of evaluation are, there is unlikely to be a clear-cut 'right' or 'wrong' choice because any strategy must inevitably have some dangers or disadvantages.

So, in the end, choice is likely to be a matter of management judgement. It is strongly influenced by the values of managers and other groups with interest in the organisation, and ultimately may very much reflect the power structure in the organisation.

Unlearn

NIL

Relearn

Strengthen learning from the past.

In making a clear strategic choice, we must know clearly the strategic intent's of our organisation. In meeting Pfizer's purpose and mission, our strategic intent is to deliver high value of dividends for our stakeholders through innovating new medicines and achieving the aspirations of delivering fast medicines to our patients via new business units structure.

Week 88 (21.12.08)

Learn (Exploring Corporate Strategy - Pg 19)

• The mission of an organisation tries to encapsulate its purpose.
• The issue of corporate governance is important.
• The question is: which stakeholder group should the organisation primarily serve and how should managers be held responsible for this?
• The expectations of different stakeholders affect purpose and what will be seen as acceptable in terms of strategies advocated by management.
• Which views prevail will depend on which group has the greatest power, and understanding this can be of great importance in recognising why an organisation follows the strategy it does.
• Cultural influences from within the organisation and from the world around it also influence the strategy an organisation follows. All of this raises ethical issues about what managers and organisations do and why.

Together, a consideration of the environment, strategic capability, the expectations and the purposes within the cultural and political framework of the organisation provides a basis for the strategic analysis of an organisation.

Hence, Is the current strategy capable of dealing with the changes taking place in the organisation's environment? Is it likely to deliver the results expected by influential stakeholders?

Unlearn

NIL

Relearn

Reflecting on what i have learnt above; Pfizer's mission is encapsulating its' purpose. Our mission and purpose as below:

Our Purpose:

Work Together For a Healthier World

Our Mission:

Applying Innovative Science to Improve World Health

The corporate governance for the pharmaceutical industry is the requirements for all ethical companies to comply to the Pharmaceuticals Association of Malaysia's (PhAMA) Code of Conduct and the Foreign Corrupt Practices Act (FCPA) in the United States.

Week 87 (14.12.08)

Learn (Exploring Corporate Strategy - Pg 19)

The resources and competences

• makes up its strategic capability.
• Just as there are outside influences on the organisation and its choice of strategies, so there are internal influences.
• One way of thinking about the strategic capability of an organisation is to consider its strength and weaknesses (what it is good or not so good at doing, or where it is at competitive advantage or disadvantage).
• Strengths and weaknesses are resource areas of a business, such as its physical plant, its management, its financial structure and its products.
• Competences which provide real advantage are "core competences" - are more likely to be activities, know-how and skills which in combination provide advantages for that organisation which others find difficult to imitate.
• Here, resources and competences are seen as not so much to be "fitted" into environmental opportunities or demands; but rather to be "stretched" to create new opportunities.

Unlearn

NIL

Relearn

Reviewing Pfizer's (M) resources and competences in identifying our competitive advantage and disadvantage in order to be "stretched" to create new opportunities.

Strength
Strong Financial resources
Biggest Sales force
GFK customer satisfaction survey - 1st in 2007 survey
No 1 since 2000
Patented & established products
Established Company with strong support from various department
Good Corporate image
Leader in driving corporate governance ie GPIHP, FCPA, PhAMA

Weakness
High turnover of sales rep
Lack of products' pipeline
New & inexperience Middle managers - new management
Poor Talent Management & Not concrete succession planning
Lost of government tenders (Value RM100million)
Uncertainity in Biz Structure
Lack of interdept communications
Poor colleague engagement

Opportunities
Oncology products
New marketing initiative – Pfizer Value Program, Branded Value (generics)
Asia Strategy
New product launch – Lyrica, Eraxis, Maraviroc,
Compete for Government tender


Threats
Pressure to reduce price
Price War with generics
Government efforts in promoting generics
Reduce antibiotic use to reduce resistance
Champix – low support from Gov & public
Outsourcing to continue

Week 86 (7.12.08)

Learn (Exploring Corporate Strategy - Strategic Analysis, Pg 19)

• The aim of strategic analysis is, then, to form a view of the key influences on the present and future well-being of the organisation, and what opportunities are afforded by the environment and the competences of the organisation.

The environment

• The organisation exists in the context of a complex commercial, economic, political, technological, cultural and social world. (PESTLE)
• Many of those variables will give rise to opportunities and others will exert threats on the organisation.

Unlearn

NIL

Relearn

Scan the current environment status following PESTLE:

Political

There will be a change of Prime Minister in March 09. Unsure how it will affect healthcare industry, most probably not much impact.

Economical
Economic growth 2009 - 3%
Economic growth 2009-2013 - to find out
Inflation rate - 7.6 % (Oct 2008)
GDP - 5.9%
Per capital drug expenditure rise – reason purchasing power & private insurance increase, gov shift drug cost to pts.
Msia is the fastest growing pharmaceutical market in asia pacific ( BMI chp 5)
Pulling out of foreign investor - due to global economy recession
Discuss on 9th msian plan – what is the helping factor for the healthcare industry.

Socio-cultural
Prevalence of Diseases
Presentation rate of patient seeking treatment in Government Hospital vs Private Hospital
Health Insurance growing - really growing?
Total population
Population by age group (important for champix)

Health warning label on the harzardous of smoking – government’s move of anti-smoking

Technological
Robotic surgery
Drug info & disease awareness via Internet
Paperless hospital - e-prescribing system

Legal
No protection from government on patent products
Counterfeit enforcement insufficient – (code value from BMI)
Asean Free Trade Agreement (to find out more)
PhAMA code of Conduct not practiced by all – not standardized

Week 85 (30.11.08)

Learn (Exploring Corporate Strategy - Chapter on Strategic Analysis, Pg 18)

• Strategic analysis is concerned with understanding the strategic position of the organisation.
• What changes are going on in the environment, and how will they affect the organisation and its activities?
• What are resources and competences of the organisation and can these provide special advantages or yield new opportunities?
• What is it that those people and groups associated with the organisation - managers, shareholders or owners, unions and others who are stakeholders in the organisation - aspire to, and how do these affect what is expected for the future development of the organisation?

Unlearn

NIL

Relearn

When reviewing our group SALP project, these 3 points of "changes in environment", "resources and competences of the organisation", and "people and groups associated with the organisation" are taken into much consideration in recommending strategic choice as a basis for Pfizer's competitive advantage.

Week 84 (23.11.08)

Learn (Exploring Corporate Strategy - by Gerry Johnson & Kevan Scholes)

Self Review for Group SALP assignment (Pg 10 & 11)

Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and to fulfil stakeholder expectations.

Levels of strategy

3 levels:
1) Corporate strategy - overall purpose and scope of the organisation; may involve consideration of diversification and acquisition; influenced by the overall mission of the organisation.

2) Competitive or Business Unit Strategy - how to compete successfully in a particular market: the concerns are how advantage over competitors can be achieved; what new opportunities can be identified or created in markets; which products or services should be developed in which markets; and the extent to which these meet customer needs in such a way as to achieve the objectives of the organisation - profitability, market growth or measures of efficiency.

It is therefore very important that there is a clarity about the needs of customers and who competitors are for a particular SBU.

3) Operational strategies - which are concerned with how the component parts of the organisation in terms of resources, processes, people and their skills are pulled together to form a strategic architecture which will effectively deliver the overall strategic direction.

Unlearn

NIL

Relearn

Reading from the above, the context that could be applied to IKEA is:

Corporate Strategy - IKEA mission was to provide good-value home furnishings around the whole at prices that the majority of people were able to afford.

Business Unit Strategy - at IKEA, each store is a separate SBU; but realistically it may be that specific competitive strategies need to differ, perhaps by national geographic markets.


Operational strategies - in IKEA, it is crucial importance that design, store operations and sourcing operations dovetailed into higher-level decisions about product range and market entry.

Week 83 (16.11.08)

Learn

The Competitive Early Warning System:Continued War Gaming (Pg 97)

"Vulnerabilities" are identified using SWOT exercise.

Unlearn

NIL

Relearn

Analyzing Pfizer's SWOT as below:

Strength
Financial resources to pursue licensing and acquisition activity as well as support share repurchases.
Large primary care and global commercial sales infrastructure to attract partnering opportunities.
Deep mid to early stage pipeline with over 100 compounds in clinical development.

Weaknesses
Declining sales base of leading Lipitor franchise.
High level of patent expiration exposure over next few years.
Lack of visible pipeline and poor track record in recent late stage product development.

Opportunities
Pursue new product acquisition opportunities to support near-term top line growth.
Develop more profitable operation through restructuring.
Capitalise on more biologic opportunities with new centre.

Threats
Lipitor patent challenges in various global markets.
Increasing penetration of competing statins and alternate treatments in the cholesterol market.
Champix, new product safety concerns may hold back performance of this high growth franchise.

Week 82 (9.11.08)

Learn

The Competitive Early Warning (CEW) System: Management Action (Pg 157)

• Laying out options and making recommendations increases the appeal of the alert to management.
• Laying out options makes the analysis more "actionable".
• Recommendations save executive time.
• Strategy formation creativity must be cultivated as a "core" skill inside the company.
• One should choose those options that her team believes are the best and recommend them to the management.
• That makes decision easier and quicker or at least focuses the debate.
• Management is, of course, free to disagree, consider other options, or send the CEW team to bring in more intelligence.

Unlearn

NIL

Relearn

The knowledge pool within the team if build correctly, will be unmatched. As currently reflect in our SALP team, the proposed alternative courses of actions put forward include pros and cons. The pro/con analysis draws two important elements as below:

1. Understanding the industry structure and where it is going
2. Crucially for options analysis, understanding competitors' mindset, intentions, drivers and capabilities.

Week 81(2.11.08)

Learn

Early Warning: Using Competitive Intelligence to Anticipate Market Shifts, Control Risk, and Create Powerful Strategies by Ben Gilad, 2004 AMACOM

Chapter 5: Identifying Risk (and Opportunities) - pp 67 to 87

• If a company waits until everyone is certain about the direction of change in its environment and its effect, it is a sure dissonance failure's.
• Forces affecting a company and its industry must be monitored continuously to identify early signs of risk.
• This involves piecing together bits and pieces of intelligence data.
• Steps involve as below:

1. Identify "Change Drivers" (technology/science, govt action, social change & competitors' move)
2. Identify "Industry's uncertainties" - what will the future look like?
3. Identify "Possible divergence from company's assumptions"
4. Identify "Dissonance with company's strategy" (functional policies and pattern of actions)
5. Identify "Strategic risk" - which future is most damaging? (expected loss; impact matrix; competitors' relative posture toward event; effect on the industry structure)

• After identifying the above steps, then generate "scenarios"
• Explore "strategic implications, options, and decisions
• Implement monitoring and contigencies

Unlearn

Reinforce previous learning in Strategic Planning & Implementation Module.

Relearn

In preparation for the SALP (group project), review certain chapters in enhancing my knowledge on strategic planning for Pfizer's 5 years plan (2009-2013). This is critical, as important analysis and risk identification need to be carried out before generating any scenarios and options in our project plan.

Week 80 (26.10.08)

Learn

Execution: The Discipline of Getting Things Done
by Larry Bossidy and Ram Charan, 2002, Crown Business, New York, pp 141-226

Building Blocks
As Leaders of leaders, you play a key role in execution.
These are the behaviors that you need to make sure that your team executes successfully.

Core Processes
The following 3 processes are central to execution. These processes are also linked to one another.

Strategy

• Many strategies fail because people do not understand that a good strategic planning process requires the utmost attention to the hows of executing the strategy.
• The substance and detail of a strategy must come from the minds of the people who are closest to the action and who understand their markets, their resources, and their organization's strengths and weaknesses.
• The strategy must be linked to the people process and the operations process if it is to be successfully executed, as both processes are essential to successful execution.

People

• Bossidy and Charan argue that the people process is more important than either the strategy or operations processes. This is because it is the people of an organization who translate strategy into operational realities. A robust people process does 3 things. It:

1. Evaluate individuals accurately and in depth.
2. Provides a framework for identifying and developing the leadership talent the organization will need to execute its strategies down the road.
3. Fills the leadership pipeline that's the basis of a strong succession plan.

• The people process must also be linked to an organization's short-term and long term strategic milestones.
• It must also be linked to operating plan targets.

Operations

• While the strategy process defines where a business wants to go, and the people process defines who's going to get it there, the operating plan provides the path for those people.
• This plan must be more than a budget; it must be a flexible plan that allows the people of the organization to synchronize resources in the interest of executing the strategy.

Unlearn

NIL

Relearn

From the findings of my BAP project, I need to identify one top priority/goal to execute. Then, I need to review the current state strategy, people and operation process and evaluates the goal successes, gaps and put on actions to close the gaps.

Week 79 (19.10.08)

Learn

Execution: The Discipline of Getting Things Done
by Larry Bossidy & Ram Charan, 2002, Crown Business, New York, pp1-9

• A fundamental problem with execution is that people think of it as the tactical side of the business, something leaders delegate while they focus on the perceived "bigger" issues.
• This is wrong. Execution is not just tactics - it is a discipline and a system.
• Execution must be a systematic process of rigorously discussing hows and whats, questioning, tenaciously following through, and ensuring accountability
• It requires robust dialogue to surface the realities of the business.

Unlearn

Before reading this book, I am quite in the same opinion thinking execution as tactical plan of carrying out a task. Execution will help a business leader to choose a more robust strategy with the right resources and the right people to execute it.

Unlearn

Understand better now that execution is not just tactics - it is a discipline and system, discussing how and what, questioning, following through and ensuring accountability taken by leaders. For my BAP project, in order for me to add value for Pfizer and able to apply leadership improvement based on the findings, priorities were set and action plans were drafted by me for execution. On going feedback will be gathered through meetings in measuring the progress.

Week 78 (12.10.08)

Learn



Writing and presenting your project report (Chapter 14, pp518-546)

1. Getting started with writing

• Create time for your writing
• Write when your mind is fresh
• Find a regular writing place
• Set goals and achieve them
• Use word processing
• Generate a plan
• Finish the writing session on a high point
• Get friends to read your work

2. Structuring your project report

• Abstract/Executive Summary
• Introduction
• Literature Review
• Method
• Results
• Conclusions
• References
• Appendices

3. Developing an appropriate writing style

• Clarity and simplicity - write simple sentences, avoid jargon, beware of using large numbers of quotations from the literature
• Check your spelling and grammar - avoid common grammatical errors
• Person, tense and gender - pass tense, passive voice, preserving anonymity
• Need for continual revision - to polish work with successive drafts, or give it to your colleague or friend to read

Unlearn

NIL

Relearn

Learn some new tips in mantaining creativity and freshness during writing the report. For BAP, follow the guide given by Mr Chan in structuring the business research report. Upon completion of writing the report, may get assistance from my colleague whom has taken before MBA to read and comment or provide feedback on my first draft. This revision will help to polish my thoughts and work before submission.

Week 77 (5.10.08)

Learn

Analysing Qualitative Data (Chapter 13, pp 470-508)

• Qualitative data are non-numerical data that have not been quantified. They result from the collection of non-standardised data that require classification and are analysed through the use of conceptualisation.
• The process of qualitative analysis generally involves the development of data categories, allocating units of your original data to appropriate categories, recognising relationships within and between categories of data, and developing and testing hypotheses or propositions to produce well-grounded conclusions.
• The process of data analysis and data collection is necessarily an interactive one.
• There are a number of aids: interview, observation, document and interim summaries, self-memos and maintaining a researcher's diary.
• Different qualitative analytical strategies can be identified, related to using either a deductively based or an inductively based approach to research.
• Quantifying some categories of qualitative data may help to analyse it.
• The use of computer-assisted qualitative data analysis softward (CAQDAS) can help during qualitative analysis with regard to project management and data organisation.

Unlearn

NIL

Relearn

NIL. BAP did not undertake using qualitative data.

Week 76 (28.9.08)

Learn

Collecting primary data using semi-structured, in-depth and group interviews (Chapter 10, pp 310-344)

• The use of non-standardised (qualitative) research interviews should allow you to collect a rich and detailed set of data, although you will need to develop a sufficient level of competence to conduct these and to be able to gain access to the type of data associated with their use.
• Interviews can be differentiated according to the level of structure and standardisation adopted. Different types of interviews are useful for different research purposes.
• Non-standardised (qualitative) research interviews include two broad types that are generally referred to as in-depth or unstructured interviews and semi-structured interviews. You can use non-standardised interviews to explore topics and explain other findings.
• Your research design may incorporate more than one type of interview.
• In-depth and semi-structured interviews can be used in quantitative as well as qualitative research.
• Data quality issues, your level of competence and logistical and resource matters will all need to be considered when you use in-depth and semi-structured interviews.
• Apart from one-to one interviews conducted on a face-to-face basis, you may consider conducting such as interview by telephone or electronically in particular circumstances. In addition, you may consider using group interviews such as focus groups. There may be particular advantages associated with group interviews, but these are considerably more difficult to manage than one-to-one interviews.

Unlearn

Before undertaking this course on Research Methods for Business Students, i thought research can only be done via quantitative approach. New learning on qualitative research interviews.

Relearn

In BAP, my research question only involves quantitative approach as time is a constraint for me in completing the project in 18 weeks. Recommendation for future research in BAP is to conduct the research in combine methods of quantitative and qualitative.

In order to reveal the type of leadership that is successful in a particular organizational context, in-depth interviews (qualitative data analysis) with effective leaders at various levels of the organization help to determine when, where, and how they operate effectively within Pfizer. These leaders then become key change agents, helping to raise Pfizer’s overall leadership capability.

Week 75 (21.9.08)

Learn


Collecting primary data through observation (Chapter 9, pp 282-302)

• Participant observation is a method in which the researcher participates in the lives and activities of those whom they are studying. It is used to attempt to get to the root of "what is going on" in a wide range of social settings.
• Participant observation means that you adopt a number of potential roles differentiated by the degree to which your identity is concealed from the subjects of the research and the degree to which you participate in the events you are studying.
• Participant observation must avoid the trap of mere storytelling. The purpose is to develop theory.
• A prevalent form of data analysis used in participant observation is analytic induction. This may lead to an initial hypothesis being redeveloped more than once.
• Structured observation is concerned with the frequency of events. It is characterised by a high level of predetermined structure and quantitative analysis.
• The main threats to reliability and validity inherent in structured observation are subject error, time erroe and observer effects.

Unlearn

NIL

Relearn

NIL. In BAP, i did not pursue to use primary data under observation. Therefore, no skills applied.

Week 74 (14.9.08)

Learn

Using secondary data (Chapter 8, pp 246-272)

• Data that have already been collected for some other purpose, perhaps processed and subsequently stored, are termed secondary data. There are 3 main types of secondary data:

1. documentary
2. survey
3. from multiple sources

• Most research projects require some combination of secondary and primary data to answer your research question(s) and to meet your objectives. You can use secondary data in a variety of ways. These include:

1. to provide your main data set
2. to provide longitudinal data
3. to provide area-based data
4. to compare with, or set in context, your own research findings.

• Any secondary data you use will have been collected for a specific purpose. This purpose may not match that of your research. In addition, the secondary data are likely to be less current than any data you collect yourself.
• You must evaluate the precise suitablility of the secondary data. Your evaluation should include both reliability and any likely measurement bias. You can then make a judgement on the basis of the costs and benefits of using the data in comparison with alternative sources.

Unlearn

NIL

Relearn

In BAP, my secondary data was on "leadership" and "leadership effectiveness". These secondary data were used to support my research question on leadership perception of sales employees' upon Pfizer's Sales Leaders'. The leadership effectiveness definitions by Leadership Gurus were used to compare with my own research findings.

Week 73 (7.9.08)

Learn

Negotiating access and research ethics ( Chapter 6, pp 162-196)

• Access and ethics are critical aspects for the conduct of research.
• Different types and levels of access have been identified that help us to understand the problems of gaining entry; physical access to an organisation; access to intended participants; continuing access in order to carry out further parts of your research or to be able to repeat the collection of data in another part of the organisation; cognitive access in order to get sufficiently close to find out valid and reliable data.
• Feasibility has been recognised to be an important determinant of what you choose to research and how you undertake the research.
• Qualitative research is likely to lead to a greater range of ethical concerns in comparison with quantitative research, although all research methods have specific ethical issues associated with them.
• Ethical concerns are also associated with the "power relationship" between the researcher and those who grant access, and the researcher's role (as external researcher, internal researcher or internal consultant).

Unlearn

NIL

Relearn

In BAP, I seek permission from Sales Department Head to allow me gain access to undertake my research from our sales employees. As a return, i will share the research findings to add value to our department with the objective to improve our leadership capabilities.

Week 72 (31.8.08)

Learn

The credibility of research design (Chapter 5, Pg 151, Research Methods for Business Students)

Generalisability

• This sometimes referred to as external validity.
• Whether your findings may be equally applicable to other research settings, such as other organisations
• Your task will be simply to try to explain what is going on in your particular research setting.
• It may be that you want to test the robustness of your conclusions by exposing them to other research settings in a follow-up study.
• In short, as long as you do not cliam that your results, conclusions or theory can be generalised, there is no problem.

Unlearn

NIL

Relearn

Understand this concept. In my own BAP topic about leadership in Pfizer, the results and conclusion will solely meant for Pfizer at this point of time after transformation, the findings cannot be generalised to other pharma companies.

However, in my opinion, the findings can be shared with the management for recommendation of improvement and further action plans.

Week 71 (24.8.08)

Learn

The credibility of research findings (Chapter 5, Pg 149, Research Methods for Business Students)

Reducing the possibility of getting the answer wrong means that attention has to be paid to two particular emphases on research design: reliability and validity.

That is why good research design is important.

Reliability

Refers to data collection techniques or analysis procedures will yield consistent findings.
4 threats to reliability:

1. Subject or participant error: You should choose a more "neutral" time when employees may be expected to be neither on a "high", looking forward to the weekend, nor on a "low" with the working week in front of them.
2. Subject or participant bias: Elaborate steps can be taken to "ensure the anonymity"of respondents to questionnaires. Care should also be taken when analysing the data to ensure that your data are telling you what you think they are telling you.
3. Observer error: Three of us conducting interviews with potential for at least three different ways of asking questions to elicit answers.
4. Observer bias: There may have been three different ways of interpreting the replies!

Validity

Refers to whether the findings are really about what they appear to be about. This potential lack of validity in the conclusions was minimised by a research design that built in the opportunity for focus groups after the questionnaire results had been analysed.

6 threats to validity:

1. History: If the research is conducted shortly after a major product recall this may well have a dramatic, and quite misleading, effect on the findings.
2. Testing: If the operators believe that the results of the research may disadvantage them in some way, then this is likely to affect the results.
3. Instrumentation: In the above example, if the telesales operators may have received an instruction that they are to take every opportunity to sell new policies between the times you tested the first and second batches of operators. Consequently, the calls are likely to last longer.
4. Mortality: This refers to participants dropping out of studies, ie a year-long management development programme.
5. Maturation: In the earlier management development example above, it could be that other events happening during the year have an effect on their management style.
6. Ambiguity about causal direction: This is particularly difficult issue. Eg: What was not clear about was whether the poor performance ratings were causing the negative attitude to appraisal or whether the negative attitude to appraisal was causing the poor performance ratings.

Unlearn

NIL.

Relearn

Able to criticise study design more effectively. Cautious about the threats of study reliability and validity for my own research design in BAP.

Week 70 (17.8.08)

Learn

Chapter 12 - Analysing Quantitative Data

• Data for quantative analysis can be collected and subsequently coded at different levels of numerical measurement.
• Data are entered for computer analysis as a data matrix in which each column usually represents a variable and each row a case.
• All data should, with few exceptions, be recorded using numerical codes to facilitate analyses.
• Where possible, you should use existing coding schemes to enable comparisons.
• For primary data you should include pre-set codes on the data collection form to minimise coding after collection. For variables where responses are not known, you will need to develop a codebook after data have been collected for the first 50 to 100 cases.
• You should enter codes for all data values, including missing data.
• Your data matrix must be checked for errors.
• Your initial analysis should explore data using both tables and diagrams. Your choice of table or diagram will be influenced by your research question(s) and objectives, the aspects of the data you wish to emphasise, and the level of measurement at which the data were recorded. This may involve using:

1. tables to show specific values
2. bar charts, multiple bar charts, histograms and, occasionally, pictograms to show highest and lowest values
3. line graphs to show trends
4. pie charts and percentage component bar charts to show proportions
5. box plots to show distributions
6. scatter graphs to show relationships between variables

• Subsequent analyses will involve describing your data and exploring relationships using statistics. As before, your choice of statistics will be influenced by your research question(s) and objectives and the level of measurement at which the data were recorded. Your analysis may involve using statistics such as:

1. the mean, median and mode to describe the central tendency
2. the inter-quartile range and the standard deviation to describe the dispersion
3. chi square, Cramer's V and phi to test whether two variables are significantly associated
4. Kolmogorov-Smirnov to test whether the values differ significantly from a specified population
5. t-tests and ANOVA to test whether groups are significantly different
6. correlation and regression to assess the strength of relationships between variables
7. regression analysis to predict values

Unlearn

NIL. Mostly new learning

Relearn

As for the BAP assignment, the survey i undertook are only quantitative questionnaires to understand the perceptions of SEs on leadership across supervisory levels in Pfizer. With these results, i am going to analyse these quantitative data using tables and diagrams (bar charts) to show specific values in answering my research question(s) and objectives. As this research is not looking at any relationship, therefore, no correlation or regresssion analysis is required.

Week 69 (10.8.08)

Learn

Chapter 7 : Selecting samples

For many research questions and objectives, it will be impossible to either collect or to analyse all the data available owing to restrictions of time, money and ofter access.

Sampling techniques provide a range of methods that enable to reduce the amount of data needed to collect by considering only data from a subgroup rather than all possible cases or elements.

Sampling provides a valid alternative to a census when:

• it would be impracticable for you to survey the entire population
• your budget constraints prevent you from surveying the entire population
• your time constraints prevent you from surveying the entire population
• you all collected all the data but need the results quickly

Sampling techniques available can be divided into 2 groups:

• probability or representative sampling - the chance, or probability of each case being selected from the population is known and usually equall for all cases.
• non-probability samples - the probability of each case being selected from the total population is not known and it is impossible to answer research questions or to address objectives that require you to make statistical inferences about the characteristics of the population. You may still be able to generalise from non-probability samples about the population, but not on statistical grounds.

Unlearn

NIL

Relearn

Learning from the above, for my BAP assisgnment, I chose to use non-probability sampling because it can increase the accuracy of the results by not having any influence on the sample population. The questionnaire sent to them does not focus on whom i select but instead base on the convenience of the SEs to provide the information of the survey through "free post".

Unlike intranet survey for probability sampling, respondent may felt bias in responding because of the sensitivity in sending back the results via intranet (researcher know who send back the results of the survey).

Week 68 (3.8.08)

Learn



Chapter 11: Collecting Primary Data using Questionnaires

The design of questionnaire will affect the response rate and the reliability and validity of the data you collect. Response rates, validity and reliability can be maximised by:

• careful design of individual questions
• clear layout of the questionnaire form
• lucid explanation of the purpose of the questionnaire
• pilot testing
• carefully planned and executed administration

Self-administered questionnaires are usually completed by the respondents. Such questionnaires are administered electronically using:

1. Internet
2. Intranet
3. Posted to respondents who return them by post after completion
4. Delivered by hand to each respondent and collected later
5. Telephone questionnaires

Your choice of questionnaire will be influenced by a variety of factors related to your research question(s) and objectives(s):

• characteristics of the respondents from whom you wish to collect data
• importance of reaching a particular person as respondent
• importance of respondents' answers not being contaminated or distorted
• size of sample you require for your analysis, taking into account the likely response rate
• types of question you need to ask to collect your data
• number of questions you need to ask to collect your data

Unlearn

NIL

Relearn

Learning from the above choice of questionnaire, the design of questionnaire differs according to how it is administered and, in particular, the amount of contact i have with the respondents.

Weighing the advantages and disadvantages in administering the questionnaires, as the topic of my business research is on "leadership", it may pose high sensitivity and distort the respondent result if i chose answering through intranet (even though anomynity and confidentiality is assured) because intranet-mediated questionnaires administered in conjunction with email has direct answers from the user which may result them not comfortable to share the accurate information with me.

Therefore, delivered by hand is the technique that I will choose weighing the benefits over the risk in achieving an accurate results for a better survey outcome. Closed questions can be designed so that responses may be entered using optical mark readers after questionnaire has been returned to ensure a smooth data input and easier data analysis.

Week 67 (27.7.08)

Learn

Revisit Chapter 2 of Research Methods for Business Students: Formulating and clarifying the research topic.

Important points to note:

• If undertaking a research project as part of a course study, the most important attribute is to meet the examining body's requirements and, in particular, that it is at the correct level. This means that I must choose the topic with care.
• If unsure, I should discuss any uncertainties with my project tutor.
• My research topic must be something I am capable of undertaking and one that excites my imagination.
• A topic in which you are only vaguely interested at the start is likely to become a topic in which you have no interest and with which you will fail to produce your best work.
• Ability to find the financial and time resources to undertake research on the topic will also affect my capability. Some topics are unlikely to be possible to complete in the time allowed by your course of study.
• Finally, it is important to consider your career goals. If you wish to become an expert in a particular subject area or industry sector, it is sensible to use the opportunity to develop this expertise.

Unlearn

Nil, capture more of the learning and quickly put the new learning into perspective and real practise.

Relearn

I drafted an outline proposal and discussed it with my tutor, Mr Chan CS. To my surprise, Mr Chan was sceptical about my idea on the research topic. He thought the research topic was broad and objective not clear. He also thought three months was too short a timescale in which to judge the five drivers that can impact on organizational performance. However, I felt Mr Chan may be right about the 3 months period is insufficient time for me to carry out the project.

I felt dispirited at once, and I agreed to think the matter over and submit a new proposal by end of the week. Nevertheless, I take this as a new challenge and take this new learning by revising Chapter 2 in instilling my confidence. In short time and overnight, I think of a more focus topic that I would be keen to be an expert in developing my career goals. Therefore, i have used this research opportunity to develop one of the skills which i want to learn more ie "Leadership".

I had sent in again my research proposal, and finally it was accepted for me to further undertake. I hope with this research, it will provide fresh insights into the topic for Pfizer and me.

Summary: I felt the two way interactive tutor-student role in guiding throughout this research is very important for the most effective learning process to take place with a good outcome.

Week 66 (20.7.08)

Learn



Research Proposal - Section 6, AMA Module

• Is a plan for conducting the research. Why do research?

1. It allows the researcher to document the logic supporting the various decisions made during the previous stages of the research process. This documentation process can assist the researcher clarify a number of issues in his/her mind.


2. Proposal must justify the investment in the research.


3. Used to persuade other people to support the research, perhaps to obtain approval to proceed with the research.

Format for Research Proposal

1. Research Title


2. Rationale for undertaking the research


3. Research Objective


4. Justification


5. Research design


6. Research schedule


7. Approvals


8. Resources


9. Budget

Unlearn

NIL

Relearn

Thinking through very thoroughly on the research title, rationale, objectives & justification. Weighing what are the potential outcomes and benefits arising from this research to be applied to my MBA assignment for research proposal and project.

Week 65 (13.7.08)

Learn

Research Design - Section 5, AMA Module

• A plan for selecting the sources and types of information used to answer research questions
• A framework for specifying the relationships among the study variables
• A blueprint that outlines each procedure from hypothesis to analysis
• Problem statement --> Purpose of Study (Exploratory/Descriptive/Hypothesis/Case study) --> Study setting (Non contrived/Contrived) -->Unit of analysis (Individuals/Dyads/Groups/Organizations) --> Time dimension (Cross sectional/Longitudinal) --> Operationalisation & Measurement --> Sampling --> Data collection --> Data analysis

Unlearn

NIL

Relearn

In my MBA assignment:

1. Problem statement: What human capital management (HCM) drivers that can predict organizational performance?
2. Purpose of the study: Descriptive study- to ascertain and be able to describe the characteristics of the variables of interest
3. Study setting: Non contrived - business research is undertaken in the natural environment where work proceeds as normal
4. Unit of analysis - Group
5. Time dimension - Cross sectional study - 4 months from July to October 2008
6. Operationalisation & Measurement - follows Human Capital Capability Scorecard (HCCS) by McBassi. 5 dependent variables operationalize to 24 independent variables
7. Sampling - use the 20-80 rules to represent the population = 30 samples
8. Data collection - questionnaires survey
9. Data analysis - using Microsoft Excel and interpretation of results

Week 64 (6.7.08)

Learn

Framework Development - Section 4, AMA module

• A framework model offers how to make logical sense of the relationships among several factors identified as important to the research
• The framework discusses the inter-relationships among the concepts and/or variables that are deemed to be integral to the dynamics of the situation being investigated
• Developing such a framework helps us to formulate research questions and, perhaps, postulates or hypothesise and test certain relationships so as to improve our understanding of the dynamics of the situation.
• From the framework, then research objectives can be developed to examine whether relationships formulated are valid or not.
• The suggested relationships can thereafter be tested through appropriate analyses.
• Being able to test and replicate the findings will also further convince you of the rigour of your research.
• The framework is then the basis on which the entire research rests.
• The theoretical framework is a logically developed, described and elaborated network of associations among concepts or variables deemed relevant to the problem situation, which have been identified through preliminary information gathering and literature review.
• A concept is an idea expressed as a symbol or in words eg Motivation, Culture, Learning.
• Concepts are obscure and difficult to operationalise and measure.
• A variable is something that can be observed and measured.
• If the researcher operationalise the concepts to variables, a theoretical framework can be formulated. A theoretical framework allows a more precise hypothesing of the relationship between variables.
• Hypothesis : a logically conjectured relationship between two or more variables expressed in the form of a testable statement.
• Null hypothesis : no significant difference between two variables/groups
• Alternate hypothesis: expressing a relationship between two variables/groups

Unlearn

NIL

Relearn

In my MBA assignment, there are 5 measures constitute the dependent variables, they are:

1. quality of leadership practices
2. measures of the learning capacity of the sales division
3. the sales division ability to optimize its workforce productivity
4. practices that foster employee engagement
5. measures of how accessible knowledge is to employees of sales division

The independent variables include 24 factors (within 5 measures) throughout my analysis.

Week 63 (29.6.08)

Learn

Problem Definition - Section 3, AMA Module

• A research problem does not necessarily imply that something is seriously wrong with a current situation which needs to be corrrected immediately.
• It could simply indicate an interest in an issue and a sense that finding the right answers might help to improve an existing situation.
• Thus, it is useful to define a Research Problem as " any situation where a gap exist between the actual and the desired ideal states"
• Ascertain the decision maker's objectives --> Understand background of the problem--> Isolate the problem, not the symptoms --> Determine unit of analysis --> Determine relevant variables --> State research questions and objectives

Unlearn

To really isolate and define the true problem, not the problem definition based on symptoms.

Relearn

In my assignment, i will take up the challenge to identify what are the true problem via employee surveys feedback on human capital management (HCM) vs traditional HR metrics - such as employee turnover rate, average time to fill open positions, and total hours of training provided - don't predict organizational performance. Until recently, there were simply weren't robust methods for measuring the bottom-line contributions of investments in HCM ie leadership, employee engagement, knowledge assessibility, workforce optimization and learning capacity.

Week 62 (23.6.08)

Learn

Preliminary Information Gathering - Section 3, AMA Module

• on the possible problem or business opportunity
• Sources of information : organisational records, knowledge of staff, internet & library search
• Nature of information: SPECIFIC to the PROBLEM or CHALLENGE yet BROAD in nature
• BROADER information can be classified as:

1. Background information of the organisation
2. Managerial philosophy, company policies and other structural aspect
3. Perceptions, attitudes and behavioural responses of organisational members

Literature Review

• Past research on the phenomenon under investigation must play key role in the process of problem formulation
• A literature review is not a listing of studies but a Critical Evaluation of previous research or studies
• A literature review requires a researcher to find, evaluate, and integrate past research into present investigation.
• When writing a review, it is necessary to provide references for all materials that the researcher did not think of him/herself.
• References are cited briefly in the text and in detail at the end.

Unlearn

NIL

Relearn

More alert when in reading business research proposal papers that the investigator actually find, evaluate and integrate past research into his/her present investigation. This adds value to me when reading it because i learn how the investigator critically evaluates the paper.

Week 61 (15.6.08)

Learn (AMA Module)

10 Stages of Research Process

1. Catalyst for Research - something sparkle to take off as threat or opportunity
2. Information Gathering/Literature Review
3. Problem Definition
4. Framework Development
5. Research Objectives
6. Research Design
7. Data Gathering
8. Data Analysis
9. Interpretation of findings
10. Conclusion & Report

Research Process - T.E.A.R

1. Theoretical Stage - Pre data collection, Identify research problem, Develop conceptual framework, Postulate hypothesis, Operationalise variables
2. Empirical Stage - Research Design, Sampling, Data source & collection
3. Analysis of Results Stage - Post data collection, Data analysis, Desscription of data, Hypothesis testing
4. Research Report - Style & Format

Unlearn

NIL. New learning.

Relearn

Understand better on the business research process which can help individually on the needs to get to know better something before making any decision. Hopefully by the end of my assignment, i will be skillful to conduct any business research when in need to assist better for my business decisions.

Week 60 (8.6.08)

Learn

Business Research (AMA Module)

• A systematic & objective process of generating information for aid in making business decisions.
• The discovery of the solution is undertaken through a detailed study of the situational factors related or associated with the problem.
• Detached and impersonal rather than biased
• It facilitates the managerial decision process
• Purpose : Reporting, Description, Explanation & Prediction
• 2 types of research : Basic Research & Applied Research
• Basic Research: Attempts to expand the limits of knowledge. Not directly involved in the solution to a pragmatic problem.
• Applied Research: Conducted when a decision must be made about a specific real-life problem
• 2 types: Quantitative & Qualitative Research
• Quantitative Research: Study that employs empirical data to investigate phenomena
• Qualititative Research: In depth study of phenomena by observing a particular case or unit of analysis. Research that produce descriptive data ie people's own written or spoken words and observable behaviors

Unlearn

NIL

Relearn

Started to realize on some of the company's survey questionnaires objectives that I had filled in recently ie Survey for Company's Incentive Trip for 2008. It contains approximately 10 questions with both quantitative and qualitative questions. The research aims to get employees feedback on their choice of destinations and employees' satisfaction.

Week 59 (1.6.08)

Learn (Lessons from IDEO - AMA Module, pp 3-2)

Notes were taken when watched the way IDEO deals in creating a new shopping cart for its customers:

Deep Dive Guidelines

• One conversation at a time
• Stay focused
• Encourage wild ideas
• Defer judgement
• Build on the ideas of others

Practices

• Very little hierarchy
• Everyone votes/equal votes
• Small groups/multiple prototypes
• Project leaders-based on facilitation vs tech/tenure

Unlearn

Learnt before on brainstorming process. However, this module reinforce the techniques and practices.

Relearn

I organized a group meeting on 8th May with 10 Sales Executives (SE) and 1 Sales Manager. I shared on the opportunity to improve on our teams' product knowledge (as GfK results showed needed improvement). To have better understanding on why and what actions should the team adopt for continuous improvement, I conducted a survey with them (Ask Question!).

I changed the venue from meeting room to go to our gym. At first, the tone and content were the same as when we were in the room. But wonderful things started to happen! Six SE started walking around and loosening their ties. Several of them went over to the cycle machine and got on them. Two others found a ball and started playing catch. And while all of this was going on, I was asking questions and they were coming up with ideas-fresh and exciting ideas! I wrote on the flip chart while they played and talked. Very little hierarchy, everyone contributes and no criticism of any ideas were permitted. We stayed focus on the topic until the whole session was over. I thanked them for their contributions and the plan of action committed. I believe there is a better buy-in because all were committed for the improvement to take place.

Week 58 (25.5.08)

Learn (from website www.creatingminds.org/principles/div_conv.htm)

In creative work, there are two modes of thinking that we use that are very different but are both very useful for different parts of the process.

Divergence

Divergence is the process of thinking broadly, of expanding one's mind, of going places where one does not normally go. It is very important in creativity as the process whereby ideas are generated.

Convergence

When you have created a big pile of ideas, the creative activity does not stop there. The next stage, which can be very difficult, seeks to thin down the idea set into a very small set of ideas (maybe one) that will be taken forward for further development.

Judgement and Selection

This approach requires skills of selection, evaluation and judgement to whittle down the list to the most useful ideas.
It is important to keep a balance, and the divergent thinkers have an important task to challenge the ejection of any ideas that may have serioud potential.

Unlearn

I have learnt before the brainstorming process in a group, which is very similar to divergence. However, convergence technique is a new learning which i realized it can be group into criterias selection to solve problems and be creative in providing solutions.

Relearn

From the above learning on divergence and convergence thinking, I had guided my team in one of the brainstorming session on how to improve the current E-card process flow. We achieved a few new creative ideas to provide solutions to our customers.

Week 57 (18.5.08)

Learn - AMA module (Pg 46)

There are 6 important alignment of people is about....

1. Customer Proposition - Why should customer buy from us?
2. Culture - What are our values, and how do we do things around here?
3. Strategy Commitment - What does the strategy mean for me and my job? What am I committing to?
4. Leadership behaviour - How do my leaders enable and support me to do the job they expect from me?
5. Performance metrics - How will I be measured and how will I be rewarded?
6. Processes and Structure - What tools and procedures are in place to help me do the job that is expected?

Unlearn

NIL

Relearn

As NSM for Private Hospital, all of the six important attributes listed above, is crucial for me to remember, implement and support any new projects in Pfizer. For example, as leader, I should communicate the strategy clearly and frequently, with clear call to action and a clear connection to everyone's job. Mobilizing the right skills to implement the strategy - building, developing and motivating people, dealing effectively with poor performers. Leaders and employees' attitudes, values and beliefs matching Pfizer's core strategies and driving the behaviors.

Week 56 (11.5.08)

Learn - Defining Innovation

Innovation is the act of introducing something new or starting something for the first time

The term "innovation" should be reserved for an initiative that can produce a viable new business concept

Successful innovations must

• Generate enough free cash flow to justify themselves
• Meet internal hurdles and performance targets
• Occur fast enough to stay ahead of competition
• Occur often enough to develop a corporate capability around it

Innovation requires a strategy and a disciplined process for implementation!

Innovation = (Idea/concept/invention) x Implementation x Success

Unlearn

From previous own understanding of innovation is only about introducing something new in the marketplace. However, from new learning, it is also about produce new business concept with strategy for implementation and success!

Relearn

With the introduction of Pfizer Value Card to the hospital, it is actually a new business concept for loyalty patients whom are currently on Pfizer's products. However, in my opinion, in order to sustain the business and values provided to customers, we ought to continue to innovate using new technology in order stay ahead of the competition. Also, Pfizer needs to find the uncontested market space to grow our business. How we can achieved this is by analyzing the aging population in Malaysia and offers a wide range of Pfizer's products by providing additional counseling program to the senior citizens.

Week 55 (4.5.08)

Learn

Creativity, Inc. - Building an Inventive Organization (Jeff Mauzy & Richard Harriman)

From Harvard Business School Press 2003

To survive and prosper in the long term, people in companies need to create and innovate. And they need to do so as regularly and reliably as they breathe.

• Corporate leaders need to know the fundamental elements for initiating and sustaining creativity and innovation.
• Value of creativity:

1) Employee and customer satisfaction

2) Increase growth

3) Flexibility to change

4) Attract good talent

5) Increase market interest

6) Strengthen competitiveness

• Six essential understandings of creative process:

1. There is no recipe for systemic creativity - a company needs to build the framework that's right for itself
2. Creativity and innovation are two distinct concepts - creativity is the generation of novel and appropriate ideas. Innovation means taking new ideas and turning them into corporate and marketplace reality. Both creativity and innovation need to be nurtured at every level and function for a corporation to become systemically creative.
3. Creativity happens with individuals , coalitions and teams, and organizations - for success, a company needs to prepare itself to provide the resources, the strategy, and the climate that encourage both individuals and groups to perform at their creative best
4. There are 4 critical dynamics - motivation, curiosity and fear, the breaking and making of connections, and evaluation
5. Creativity depends on climate - companies need to transform the larger climate into one that actively supports creativity throughout the organization
6. Systemic creativity asks everyone to be a leader - each person in a company has the potential for leadership in creativity. Everyone can be creative. Anyone who takes this initiative leads.

Unlearn

I did not have a clear picture on the distinct difference between creativity and innovation.

Relearn

From the above learning, I am able to capture a clearer and precise definition between the 2 distinct concept and how I can play my role in encouraging every level and function to perform their creative best by providing the necessary resources, strategy and climate (=support environment).

Week 54 (27.4.08)

Learn

The Value of Creativity and Innovation (AMA Module)

Creativity - is about- bringing a unique approach and way of thinking to the way you do things.

Innovation - is about - result of a creative process - ended up with a new/better product or service

What do we get from the value of creativity and innovation?

1. Progress
2. Competitiveness
3. Change
4. Efficiency
5. Effectiveness
6. Growth
7. Survival

Ways of Developing Your Creativity:

• Set a goal for new ideas
• Discover new worlds
• Add variety to your pace
• Try new things
• Identify categories or trends
• Learn about inventions and discoveries in a range of fields
• Take a chance
• Question assumptions
• Interact more
• Keep an idea book
• Put your finger on fear, doubt and insecurity
• Look for other explanations

Unlearn

Did not realize that by trying out new things, is unlocking my creativity potential. I associate it more with the "courage" of trying out new things.

Relearn

With what i have learned, i will be more alert to :

• read about market leaders in other industries
• stay in touch with other culture, other age group and gender - read diversified magazines
• increase social circle, eg attend sports club, toastmaster meeting
• avoid criticizing new ideas
• accept failures after putting best attempt...but ask why to get closer to the root cause

Week 53 (20.4.08)

Learn

IT Drivers (Cost/Benefit Analysis) - AMA Module

IT Cost

1. Direct

• Hardware - Server, Network, Computers etc
• Software - Business Application, DBMS, Operating system license fee

2. Indirect

• Personnel - IT personnel, Programmer, Analyst, Third Party
• Downtime - System shutdown

IT Value/Benefits

1. Increase Revenue
2. Reduce Cost

Unlearn

Thought that IT takes up more of the cost only and less benefits can be seen. However, after studying through this IT module, I understand the value that IT can create for all the stakeholders ie customers, employee, business partner and company.

Relearn

IT can enable the program (eg Sales Force Automation) for the Value or Benefits, which I can apply as below in my work place.

1. Increase Revenue

• Expanded share of market
• New revenue streams
• Reduced Churn Rate
• Increased revenue per customer
• Less rebates given
• Increased price
• Less late payers

2. Reduce Cost

• Reduce cost of marketing and sales

- lower cost per lead

- increased lead to opportunity lead

- lower cost per sale

- increased opportunity to sales rate

- shorter sales cycle

• Reduce cost of inventory

- decreased number of inventory

- decreased cost of storage

• Reduce IT cost

- lower maintenance and support cost

Week 52 (13.4.08)

Learn

Article: Enterprise Security, 2006. IT RIsk Management: An Essential Strategy for Business Success, USA, pp 4

IT risk management involves two complementary components:

• security
• availability

Information is worthless, and even be a liability, if it's not secure. Secure information is useless if it can't be efficiently stored and readily accessed.

Unlearn

Did not realize the importance of information security in office. There is risk involves if information are not secured properly.

Relearn

To mitigate the risk and improve on the current business risk and impact on IT, below are my suggestions on how IT or Pfizer can adopt:

1. Tight customer data control particularly during data maintenance exercise, to prevent sales reps from copying the data
2. Firewall and VPN to ensure only authorized devices are allowed to connect to the network and access to all applications
3. Implement company wide Information Protection Plans whereby each user has their own password to access the necessary informations.

Week 51 (6.4.08)

Learn - In corporate IT

No IT Project; but only Business Project

To engage any IT project which is actually a business project, need to determine:

1) What was the SCOPE in terms of size of the business; geographical location?
2) What kind of SERVICE LEVEL provided to client?
3) How does it compare EXISTING OPERATIONS?

It is important to determine where the business is in TODAY versus the FUTURE where the business vision and mission set to be.

Therefore, the traditional financial measures when accepting a business project is:

1) Net Present Value > 0 AND
2) Internal Rate of Return > Discount Rate (Hurdle Rate) of the project AND
3) Certainty of Cash Flow

All these are based on assumptions on the likely scenarios and possible outcomes.
To go ahead with a project, the IT Value/Benefits > IT Cost

In this Cost Benefit Analysis,

IT Cost consists of Direct Cost (hardware, software) & Indirect Cost (personnel, downtime)
IT Value/Benefit are Increase Revenue (development of new product), Reduce Cost (business cost & IT cost) & Reduce Risk (will not jeopardise company image)

Summary: Benefit-Cost>0

Unlearn

NIL

Relearn

Further enhance my knowledge from previous module in Strategy & Financial Management to see the link and apply the NPV & IRR to a business project.

However, the drawback is needed to work closely with Finance Department to advice on the sensitivity analysis on what is the percentage of discount rate or hurdle rate (= to support cost of the project + pay the investment of the stakeholder) for each option of the business project. Then, this will allow senior managers, after considering the IRR and business risk, in deciding which business options to take incorporating the business technology.

Week 50 (30.3.08)

Learn - IT System Development Methodologies

3 types:

1) Waterfall
Advantage: Sequential steps, upfront analysis and decision making
Disadvantage: Difficult to back up to previous step

2) Iterative
Advantage: Prototype based, faster to market, phase approach eg every 3 months, 6 months, not exposing risk to the whole population entirely before rollout
Disadvantage: Resulting system can be fragile or nonscalable

3) Hybrid
Start with Iterative, Move to Waterfall when appropriate
Can have advantages of both methods

IT Project & Application - 5 steps

1) Analysis - determine what user wants
2) Design - determine technical specification
3) Development - writing code and configuring package
4) Test - unit test and assembly test (or user acceptance test)
5) Deploy - provide training & address change management

Unlearn

Did not realize the importance role when I was involved in the User Acceptance Test. After learning from this chapter, I realized that if, I am as a user, did not happy or accept the application as what i needed, then I should not sign off during the User Acceptance Test despite whatever reason given to me.

Relearn

In order to get employees "Buy-In", in my opinion, "Hybrid" model would be a better approach for a business project application because when started with "Iterative", IT would be able to build something quickly and get user to deploy quickly and feedback. With this phase approach by doing small steps, the success will then be decided whether to deploy entirely to the whole population.

Therefore, subsequently, my role as a manager to teamwork with IT in providing the training and address change, will be easier and time shortened for people to accept and take new changes. This will cut down the time for "Valley of Despair" of individual to accept new change and get everyone to align to the business goals.

Week 49 (23.3.08)

Learn - IT Oraganization

3 Types:

1) Centralized
Advantage : standardization, efficiency, negotiating power with supplier, cost saving
Disadvantage: Inflexibility, user feels unresponsive & do not understand business

2) Decentralized
Advantage : responsiveness, alignment to business, flexibility
Disadvantage : difficult to integrate system across units, lack of negotiating power, more cost

3) Hybrid
Centralized strategy & architecture (centralized planning)
Decentralized design & delivery (decentralized execution)

Unlearn

NIL. All new concept learnt

Relearn

Found out that Pfizer is adopting "Hybrid" Organization. We centralized the corporate planning strategy among Asia countries but decentralized the execution on the sales function for country specific in Asia region. In my opinion, this strategy and plan will bring Pfizer more competitive because being more customer centric will enable us to identify and analyze customers to improve their satisfaction level.

Week 48 (16.3.08)

Learn

Components of IT Architecture

There are 5 elements:

1. Business Architecture - is a blueprint for how business works. It desribes:

how business makes money (ie profit model)

how business interacts with the outside world; customers, suppliers, regulators & other

stakeholders

2. Organization Architecture - defines how business is organized internally; whether

organization centralized or decentralized.

3. Application Architecture - is the system blueprint that defines how applications are

organized to meet functional needs.

4. Information Architecture - defines how info. is organized, stored, and accessed.

5. Technology Architecture - defines the technology standards for the company.

Unlearn

Thinking that one can comprehend all skills; business & organization architecture are more relavant to a business manager where technology operates, however, application, information and technology architecture relate to the technology itself.

Relearn

Capability: Improve Inventory Tracking & Sourcing

Business Architecture:

• The end goal of keeping sufficient stocks will improve Pfizer's competitiveness over competitors and eventually contributes to revenue and profits upon customer purchased, rather than currrent practise of frequent out-of -stock for major products.
• This will improve customer's needs and satisfaction over time.

Organization Architecture:

• There will be changes in the new roles of assigned logistic executive to be trained on the required skills gap.
• Sales people will be motivated to sell more due to sufficient stocks available for them.
• Appropriate incentives will further drive the sales force motivating them to meet the challenging and competitive environment.

Information Architecture:

• Define the "Low" inventory holding capacity - 1 month, 2 months, 3 months?
• Generate data on items that are fast moving - seasonal ie promotion?
• Sales manager will need accurate data by the 15th of each month before the closing of next month

Week 47 (9.3.08)

Learn

Linking IT Strategy to Business Strategy

IT strategy and business strategy must be linked, influencing each other and responding to the rapid environmental changes.

Organizations that make effective use of IT have the following characteristics:

1. Vision - clear vision on how IT can make them more effective
2. Alignment - IT activities and investments are always closely aligned with business priorities
3. Emerging technology - assess how emerging technologies can impact their competitive environment
4. Technology sourcing - make choices of what to keep in house and what to outsource; constantly evaluate whether they are best in class at performing certain activities

Unlearn

NIL. Now i can comprehend better how IT is linked to Business Strategy

Relearn

Capability: Improve Inventory Tracking & Sourcing

Vision: To improve the out-of-stock situation for major products. Technology can help us to monitor and indicate when the stocks are low and appropriate sourcing. Ultimately, we should be able to address the dissatisfaction of our customers and improve customer relationship with Pfizer.

Alignment: Our biggest issue at the moment is the frequent out of stock situation for fast moving products. IT primary focus is on improving manufacturing, shipping and time of delivery to customers. Within the sales function, the most critical is identifying the purchasing patterns of customers and ensure on time delivery.

Emerging technology: Perhaps this technology can be used to create a mechanism for collecting data that shows low in stock and alert the sales managers/logistic manager.

Technology sourcing: Adopt a technology standard to reduce cost.

Week 46 (2.3.08)

Learn

IT Application has 2 components:

1. Strategic Enabling Opportunity

- deliver value

- lead

- focus on risks & find opportunity

2. Commodity Application

- spend less

- need not lead

- focus on risks

Business strategy drives IT strategy which enables the business to increase its efficiency.

Unlearn

Earlier has no comprehension on whether IT drives business or Business drives IT.

Relearn

In Pfizer, i can now relate how the implementation of E-card works. It is actually a business strategy that drives on the IT deployment. This business strategy helps Norvasc, which loses its exclusitivity, to stay competitive in the market position. E-card provides additional value to loyal customers with a leading concept on customer relationship management.

Week 45 (24.2.08)

Learn

Does IT Matter? - Nicholas Carr, Harvard Business Review

Logic Flow:

• IT is common pervasive
• IT system in place in your company is NOT different from another
• IT is no longer giving business a competitive edge
• Conclusion: IT does not matter
• However, IT is a necessity

Unlearn

I have all the while in the opinion that IT alone will not make any business more competitive because IT can be outsource (via consultants or buy). So, IT never mattered. What matters are the people who invent technologies and who deploy and use them.

Relearn

As a result from my learning, i am more conscious now on my role to work closely with IT department in Pfizer, for a greater adoption of information technologies , to increase the opportunities for competitive advantage for financial performance in sales division.

Week 44 (17.2.08)

Learn

How companies Use IT to Improve Their Effectiveness? - AMA Module

1. Exchanging information
2. Finding new markets or channels
3. Negotiating and completing transactions
4. Supporting major decisions through analysis
5. Streamlining administrative processes

Unlearn

Before reading up this module, in my opinion, I thought IT acts as a tool for data storage, data processing and data transportation only. Actually, IT can increase companies effectiveness through proper implementation and deployment.

Relearn

In Pfizer, we used IT as a source to secure more sales from the e-Procurement of government tenders, to analyse market opportunity and customer segmentation, and finally, HR use IT for Employee Database, payroll and e-Leave.

Week 43 (10.2.08)

Learn

The 5Cs and 5Ms in credit application - from THE STAR article dated 28th Dec 1989

Evaluating a credit application - what bankers look for?

• The 5Cs stand for Character, Capacity, Capital, Conditions and Collateral
• The banker will evaluate each of the Cs to determine risks associated with it are acceptable to him.
• Character - A banker will usually base his evaluation of the character of the borrower on his past experiences with him, the paying record of the borrower (with him and other creditors), market talk and how the borrower conducts himself during interviews and negotiations.
• Capacity - refers to the borrower's ability to repay the bank. Involves determining the borrower's net income, ie income after all expenses have been accounted for.
• Capital - refers to the financial backing or strength of the business. It is measured by the equity or net worth of the business, and will determine how much the banker will get back if the business is terminated. The banker will, however, consider the market rather than the book value of the assets.
• Conditions - refers to the conditions of the environment the business is in eg want to know how the business will be affected when, for example, there are changes in the economic conditions, the technological conditions, the political conditions, the regulatory conditions, etc.
• Collateral - is usually asked for by bankers when there is a weakness in one or more of the other Cs, except character. A banker looks at collateral only as a secondary source of repayment.

Instead of 5Cs, some bankers may use the 5Ms in their evaluation exercise. The 5Ms stand for:

• Men - the people behind the business - the owners, the managers & employees
• Money - equivalent to capital, as above
• Market - borrower's marketing strategies and how much they can sell
• Machines - refers to machines and equipment the borrower owns and their ability to produce what they sell
• Materials - ability of the borrower to source their raw materials

The 5Cs and 5Ms are not all that a banker will look at when evaluating a credit application. They are the main areas of investigation though.

Unlearn

New informations gathered and no unlearn. It is more complex than what i think for bank to approve credit application.

Relearn

Now i understand:

When i applied for individual housing loan, the bank actually asked for:

1. To determine my "Capacity"- payslip & EA form

2. To determine my "Character" - last 6 months account statements

Week 42 (3.2.08)

Learn

From perspective of Lenders or creditors (banks, investors in corporate bonds, trade creditors)

Credit analysis also involves the use of fundamental analysis. The primary focus here is not about making investment profits, but about ensuring the security the capital and the ability of the borrowing company to service the debt.

• Evaluating whether to extend funds to corporations, and whether a credit period should be allowed by trade creditors;
• Monitoring changes in the creditworthiness of companies and the security of capital; and
• Assessing compliance with debt covenants

Unlearn

New informations and learning. Nothing unlearn.

Relearn

I imagine if i set up a company:

• When paying back the debt on loan, first is to pay the bank loan, subsequently pay the tax and finally only pay the dividend to my shareholders.
• This is in line with the primary focus of bankers which is to ensure the security of capital and ability of borrowing company to service the debt.

Week 41 (26.1.08)

Learn

Who are the user of fundamental analysis and how do they use it?

From the perspective of equity investors (equity analysts)

Enquity investors are probably the most frequent and common users of fundamental analysis tools. Professional investors like fund managers, and the stockbrokers and equity analysts who support them, use fundamental analysis as their primary tool for selecting investments. The uses include:

• Determining trends in the financial stability and operating performance of companies over time;
• Comparing companies against their peer industry group, both domestic and international
• Helping the investors make decisions on which stocks to buy, sell or hold (after making profit forecasts and valuation assessments) in order to maximise investment profits; and
• Assisting shareholders when considering approving or opposing corporate proposals.

Unlearn

All informations are new learning to me.

Relearn

Operating performance of company as a whole is determine by ROIC/ROA. However, operating performance at a business unit level = Return on Net Asset (RONA).

RONA = Operating Profit/Assets Allocated to Unit

Where, Assets Allocated to Unit = Acc Receivable + Inventory + Fix Asset - Accounts Payable

Therefore, I have a role in influencing the Fix Asset at a business unit level ie equipment purchase, and managing Inventory - efficient stock level to supply. As Pfizer appointed Zuellig Pharma as a distributor and collector, we have minimal role in Acc Receivable in collecting debts from customers.

Week 40 (18.1.08)

Learn

What is Fundamental (Financial) analysis?

• Fundamental Analysis is a broad term, which includes financial ratio analysis and valuation techniques.
• The bottom line is we're trying to analyse companies. Fundamental analysis is the assessment of a company's current financial and operating position.
• It seeks to understand the economic and competitive environment in which the company operates.
• This assessment is compared against the company's past performance, and also compared against its competitors.
• An assessment is also made of what the future is likely to hold for the company. It evaluates the company's strategies to see if they are likely to help it succeed or cause it to fail.

Unlearn

Drop off learning thinking that financial analysis is looking only at the current situation of the company. It actually encompass a very broad macroeconomy, industry and individual companies.

Relearn

As an NSM, when making decision for strategy setting for my division or sales expenses, start to be sensitive in the financial figures on how it can impact the bottom line (net profit) of my division and subsequently on Pfizer.

Week 39 (11.1.08)

Learn

1. Capital expenditure budgets cover projects that last over one year and initial costs are typically spread over the life of the project.


2. Operating budget address the day-to-day costs of the business which are expensed.


3. The sooner an organization receives cash, the greater the value of the cash to the organization. Since capital projects last over one year, it is important to consider the time value of money in evaluating them.


4. A project's payback is the time required to recover the investment in the project. Since payback does not consider cash flows after recovery, it should not be used to rank projects.


5. The hurdle rate is an organization's minimally acceptable rate of return on capital projects.


6. The net present value (NPV) of a project is its cash inflows discounted at the hurdle rate less the cash outflows.


7. A positive net present value indicates the project's rate of return exceeds the hurdle rate.


8. A net present value of zero indicates the projects's rate of return is the same as the hurdle rate.


9. A negative net present value indicates that the project's rate of return is less than the hurdle rate.


10. The internal rate of return (IRR) is the project's rate of return.


11. The profitability index (PI) is the project's cash inflows discounted at the hurdle rate divided by the cash outflows.


12. A profitability index greater than 1 indicates that the project's return exceeds the hurdle rate. Comparing profitability indexes is a good way to rank projects.

Unlearn

Nothing to unlearn as all informations are new learning.

Relearn

I do an imaginary Debt Financing:

Capital RM100,000

A. Saving of FD in bank for 10 yrs

100,000 x 3.5% x 10 = 35,000

Total return = 135,000 (aft 10 yrs)

B. Alternative to invest 600K shop house

Loan 500,000 from bank at BLR -1.5% for 25 yrs (BLR 6.75%- 1.5% = 5.25% annually)

Interest expense = 500,000 at 5.25% x 10 yrs = 262,500

Monthly repayment = 3,500 x 12 x 10 = 420,000

Total investment (aft 10 yrs) = 100K + 262.5K + 420K = 782.5K

After 10 yrs, assume shop house appreciation of 7% annually = 600K + (600K x 7%x 10) =1,020,000

Therefore, total return if property sold after 10 yrs = 1,020,000 - 782,500 = 237,500

In conclusion, with capital of RM100,000 - if invested in property with good assumption of appreciation, the Return on Equity (ROE) is higher with Debt Financing.

Week 38 (6.1.08)

Learn

1. Fixed costs do not move in relation to sales or business volume. Variable costs do.
2. At break even, revenues equal cost.
3. A positive contribution margin indicates that all variable costs are covered and that the business segment is "contributing" to fixed cost.
4. The contribution margin of a product or service is its sales minus variable costs.
5. Pre-tax income of a product or service is its revenue minus total costs (variable+fixed cost)
6. Activity-based costing quantifies the cost of the activities most frequently performed by the organization. By sequencing activities together, the organization can identify the total cost of a product or service.

Unlearn

Do not know that when a business is in a break even situation, the revenue it generates equal to the costs of a business. Cost also can be separated into fixed and variable categories.

Relearn

Break some of the home expenses into fixed and variable categories. As fixed costs is relatively stable and can't be changed much, by reducing the variable costs, can help to generate more saving to the home. Start to be more conscious on expenses that can reduce the variable costs to generate more income for home.