How and When should companies introspect to re-“evolve”? (a strategy in analyzing the company)

Unlike general companies, many companies take extreme steps to become a different industry or vision when developing their business.

BMW at its inception was a company for aircraft. BMW was involved in supporting the German army in World War I. But after Germany lost the war, the Treaty of Versailles banned the production of aircraft in the European country. As the main source of income was lost, BMW switched to other types and started producing motorcycles. BMW motorcycles are still produced today, but not as heavily as their cars, which are a symbol of luxury in the automotive world. The first car produced by BMW was the 315 Dixi, a type of city car and the price was cheap. Thanks to 315 Dixi, the car engine industry in Germany is booming again until now.

3M was originally a mineral mining company called the Minnesota Mining and Manufacturing Company (3M) founded in 1902. Five of the company's founders wanted to mine a mineral called corundum in Crystal Bay, near Orono. However, the minerals were neither plentiful nor profitable, so they abandoned the business. But still using the 3M name. When in 1925, the company suddenly changed direction, starting to produce various types of glue and duct tape as it is today.

National Geographic, the Magazine known for its humanist coverage and stunning photographs, was once just a scientific journal for a group of people in Washington, D.C. thirsty for geographic knowledge. Founded by the National Geographic Society on January 27, 1888, National Geographic has members from various backgrounds such as lawyers, scientists, military officers, teachers, cartographers, and the wealthy. A major change occurred in 1899 when there was a change of leadership that finally changed the direction of a scientific journal that only contained text to a magazine that featured high-resolution photos. The only thing that hasn't changed from National Geographic is the yellow border that frames the main cover.

Nokia has been in business in a number of fields for more than 150 years. The company was founded as a pulp mill and has long been associated with rubber and cable, but since the 1990s, the company has shifted its focus to telecommunications infrastructure, although it eventually went bankrupt.

This Japanese manufacturer has long been coloring the automotive world. Honda started in 1946, when the most common mode of transportation was bicycle. Honda started as a manufacturer of bicycle auxiliary engines at a small factory in Hamamatsu, Japan. The company's other key product areas include agricultural machinery starting in 1953.When inventing a former Imperial Army generator engine to power wireless radios, Soichiro Honda developed the concept of using this engine as additional power for bicycles. The new bike made by Honda suddenly became popular with many orders coming in but the engine stock was running out. From there Honda decided to develop and build the original engine. In 1947, the A-Type engine, bearing the Honda name for the first time, was completed.

With more and more people shopping online, you might assume that Amazon, the US-based e-commerce and cloud company, derives most of its revenue from its e-commerce sites. Amazon has indeed managed to dominate the online retail industry with its virtual store, but, in fact, Amazon's revenue does not come from e-commerce much. So where does Amazon's revenue come from? The Memo says that most of Amazon's revenue comes from the cloud, almost 70%.

do not want to be outdone by other parts of the world, in Indonesia also "POWERHOUSE" companies such as Pertamina and PLN are starting to show their teeth to "re-evolution".

Pertamina, which originally used oil and natural gas production, is now starting to use other energy sources. Pertamina is currently undergoing an energy transition towards renewable energy that is more environmentally friendly. A total of 63 gas stations have been recorded using PLTS Rooftop and will be expanded to all gas stations. Pertamina is also developing solar power plants (PLTS) at TBBM and Pertamina refineries.

PLN is an electricity supply company, but now by utilizing electricity distribution poles it has started to enter the internet provider business through its subsidiary ICON plus/ICONNET

From the above-mentioned company phenomena, there is one thing in common, namely there is great pressure from outside or from within, so management decides to change the direction of the company, both long-term vision, or short-term mission.

sources : https://www.professionalacademy.com/blogs/marketing-theories-pestel-analysis/All the external environmental factors (PESTEL factors)

Political Factors, These are all about how and to what degree a government intervenes in the economy.?

Economic factors, these factors can be further broken down into macro-economical and micro-economical factors.?

Social Factors, also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population. These factors include – population growth, age distribution, health consciousness, career attitudes and so on.?

Technological Factors, we all know how fast the technological landscape changes and how this impacts the way we market our products.

Environmental Factors, they have become important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments?

Legal Factors, include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety.?

And the new one is Ethical Factors, the most recent addition to PESTEL is the extra E, making, it PESTELE or STEEPLE. This stands for ethical, and includes ethical principles and moral or ethical problems that can arise in a business. It considers things such as fair trade, slavery acts and child labour, as well as corporate social responsibility (CSR), where a business contributes to local or societal goals such as volunteering or taking part in philanthropic, activist, or charitable activities.

Of course, with external factors, the company is also influenced by its own internal factors, I prefer to use Michael Porter's 5 forces analysis (although sometimes you have to add other analysis)

sources https://insight.wellcode.io/five-forces-porter-strategy-marketing-industrial

by knowing the review area: Intensity of competitive rivalry; Bargaining power of suppliers; Bargaining power of buyers; Threat of substitutes; Threat of new entrants. According to Porter, “the collective strength of these forces determines the ultimate profit potential of an industry.” We will do an internal analysis

Of all PESTELE external threats, as well as internal threats 5 forces analisys, management or principals have an obligation to decide "what the company should do" in the future, but How and when should we change course or evolve?

First of all, management/principals must first determine what phase the company is in (can be seen from the article It's Time To Say Goodbye, An HR Strategy in dealing with situations in the maturity phase)

The Stages of Organization models-SOO (Sabbeth, 2003) adapted from the Arthur M. Young framework explains that companies in carrying out their cycle phases evolve with different patterns and require different strategies and organizations

After that we go deeper. Like a doctor in examining his patient, he must first know what the patient's disease is from the symptoms that arise. Likewise with companies, we also have to analyze and conclude from the existing symptoms.

sources : Hay Matrix?

The success of a company can be determined by several things as listed above: a clear vision and mission, the right organizational structure, clear job descriptions & KPIs, the right leadership, and good performance and remuneration management.

The first thing we do is look at the symptoms / phenomena, we see the picture above the red boxes. The red box shows the existing symptoms/phenomena of the company, in general there are 5 major symptoms in the company: many initiatives/lack of direction; high workload/high burnout; efficient framework, poor executed; long term frustration and mixed messages

The first example is the easiest, if the employee level survey is confused about where to go, each director has his own initiative and only cares about the division he leads, and doesn't want to know about other divisions, the company's income results go up and down like a "roller coaster", blame each other, and each director has different initiatives.

?From these symptoms, it can be concluded that there are many initiatives and many deviations below, this we can draw a straight line to the right, then we will find that the company has problems with its Vision and Mission.

The second example, we often hear that employees of A/Division A often complain about the work, responsibilities and tasks assigned by management, so that in that division employees are most often frustrated and resign. Besides that, employees of B/B division are very relaxed and have little responsibility.

If there are these symptoms, the company is in the "high workload/high burnout" red box, we just need to draw the line to the right, then we will find these symptoms because there is a problem with factor 2 "Approriate Organization Structure", so we just have to fix the problem in the Organization its structure.

We have to be careful in analyzing, by combining The Stages of Organization models-SOO (Sabbeth, 2003) and the table from the Hay matrix, we will come to conclusions from different points of view, for example Start-up companies, when viewed from SOO then it is in the first phase of “Creativity” where there are many ideas that must be explored because they see opportunities so that the Vision and Mission is something that keeps changing. If in this phase the employees are confused about where to go, each director has their own initiative which is normal.

Thus, we can conclude from the existing symptoms. But proper attention is needed, if the analysis is wrong, it can be biased, like a doctor who has more experience and becomes more skilled, as well as here there must be an expert who analyzes.

When the voice of the heart cries out the tone of love to God

Tangerang, October 2021

DR. Martinus T, MM