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Blog 4

Bryan Parry

Blog 4

MBA 610

Prof. Alan Glass

 Team Update:

 The team is trying a new strategy this quarter. Either we’re on to something or we’re setting ourselves up for more failure. I’ve gotten the team to consider differentiating and getting smarter with our SG&A and operational expenses. Kelly really devoted an exceptional amount of time to this. I want to see her work be a success! We scrapped our cost cutter since it’s a low profit machine and focused all of our ads, staff, R&D and capacity on the Mercedes and Innovator markets. We customized our pricing to suit specific regions and we customized our advertising and sales priority to match market demand in specific regions. I was able to point out that this ties directly in with the differentiation by local regions and demographics that we are learning about in our global strategies class. We’re prepared to lose market share, however, we hope this will increase our profitability margins overall. We recognize now that there is no stopping the Catronix train, so we are focusing on what we’ve done well and how to capitalize most on that. I hope it’s a successful move, we’ve put a lot of work into it including 4 hours last night, but I fully expect to flop due to the simple fact that this is just too little too late. On a side note, Sabah was present and did ask questions but never replied to my email addressing her comment that Kelly and I weren’t taking her suggestions seriously. She also didn’t come prepared to point out specific details in the simulator to defend her ideas. Once we explained our logic and evidence in the system, she agreed to the new strategy.

 Personal Position Update:

 The class (and the MBA program) are finally coming to an end. I am both excited and disappointed. Mainly, I’m pretty sore after the spanking I just got from Craig’s team. Especially since I’ve worked my butt off to understand all of this to the best of my abilities and have pulled straight A’s through the entire program (including the pre-reqs I took prior to the program). That said, I still learned from this class. Although my team isn’t going to be the one that wins, I still view it as a successful class and I am not going to let myself believe that this one business simulation experience means I am incompetent. My worst fear in this program, as I mentioned before, is that the lack of continuity and organizational structure would not prepare me for the real world, in spite of spending hours in the textbooks and doing research, essays, and practice exercises. Fear, however, is a form of resistance (see my personal vision essay). I have developed a healthy skepticism about the capabilities and motivations of higher education at this point.

At any rate, I have a couple of promising interviews coming up that wouldn’t be possible without those 3 little letters after my name. One of which is a Revenue Qualification Supervisor position for a national chain of long-term care (LTC) pharmacies owned by CVS. I would be in charge of a staff of 10-15 representatives in this position, would have budget responsibility, and would need to recommend methods of improvement. Thanks to my MBA skills, I already pulled CVS’ financials and looked at the long term care segment. I can tell that the company’s revenues are up 12% over last year but that the NOPM is only up by 2% rather than 5% the year before in the LTC segment. Hence, in part, the need for my position. I also did some research and found out that the company settled a very big lawsuit concerning Medicare Part A fraud prior to being purchased by CVS. This is important since Part A is a key part of my future responsibilities should I be offered and accept the position.         I have a TON of pharmacy billing experience, but supervising my own staff would be a new challenge.

Craig – the classmate who is kicking my ass in the business simulator much to my chagrin and admiration – has also put me in contact for an interview at his company, C&S Wholesale Grocers. This is for the position of Financial Operations Analyst. According to the recruiter, I would work directly with the Operations Manager to review daily, weekly, and monthly financials, budgets, and operations reports to identifying inefficiencies and variances. I would then report my findings and to the executive and management teams including the president of the company. This one pushes me out of my comfort zone big time. I question my level of preparedness, however, usually when I leave my comfort zone I do far better than I could have imagined.

All of this is occurring at a time when Cedar Crest seems to think screening phone calls, filing papers, and basic data entry are responsibilities suitable of a person who has over a decade of practical experience and 18 years of formal education. Yeah, I am upset. Yup, I want out and quick! Why should I stay? Actually, I feel truly insulted and demeaned by this college. However, I will not make negative remarks after my departure since they have taken care of me as a stakeholder even if they cannot offer me meaningful work.

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Blog 3

Bryan Parry

Blog 3

MBA 610

Prof. Alan Glass

 Thoughts on War Day

 Quarters 5 through 7 were our big comeback quarters.  We learned that our level of aggressiveness was nowhere near the level of Catronix. This allowed them to gain an early lead, but they seemed legitimately surprised at our rapid comeback and capture of the market in quarters 5 and 6. In Quarter 7 we both started to realize that this could be a neck-and-neck race if we don’t find a way to differentiate from each other. We’ve been looking very closely at the design of their ads, volume of their ads, volume of their sales staff, and components used in their machines each quarter. I’ve identified that they may be over spending on their advertising and sales staff and bumping up against capacity problems, something we have yet to encounter since we invest in capacity and process improvements every quarter. I’ve also been reading up on global strategy and have noted that many MNCs use an advertising to sales ratio and an R&D to sales ratio. Ideally, we want to see those percentages drop while revenues increase. This would indicate to us that our marketing and product design is becoming more targeted and that ROI is increasing. Going forward, we want to limit our licensing of R&D to Catronix, but work out a way to reach a manufacturing agreement with them. I am very hesitant about this though due to inventory costs and losing market share. This deal would have to involve some very specific language about which machines we are willing to make for them in NORAM and EU. We both have high margins on traveler, but perhaps we could agree that one team focuses on traveler and the other on Mercedes. We also had our target inventory and replenishments set WAY too high in q7, which severely hurt our cashflows in Q8. Now we have to dump something like 2,000 machines that we are re-designing. We are monitoring that very closely going forward. I’ve complained enough that Kelly and Sabah are well aware that I will throw a temper tantrum if we have over $2M in inventory sitting on the shelf again! Especially with all of these expensive new parts we need to put in our new machines. As any good operations manager would…although operations isn’t supposed to be what I’m in charge of here…that’s Sabah’s jurisdiction. J

 Thoughts on the VC Presentation and Team Dynamic

 First, let me say that I know you just bought our company, Allan. J You have 54% of our shares, which gives you a controlling interest…but I have an endgame spin on this in mind! I also made an error during the presentation when I said that I wanted to see the ad to sales ratio increase. That percentage should trend down if we are doing a good job.

 The last week has been extremely stressful and there were some fireworks within the team. I had some resistance from Kelly about the amount of out of class time required to complete the presentation and 3 quarters that were due. I had to remind her that accommodating her work schedule led to the pile up of work for this class this week and that no individual in the group’s time is more or less valuable than another’s. We’ve also had some disagreement about the level of risk to take on in Q8 and how to set our replenishment points. Kelly is committed to high risk decisions, but doesn’t look at the financial impact until I point out some very specific cashflow impacts. This is also why I made the P&L forecast to reign it in if need be. Often, my opinion is dismissed – none to diplomatically - which irritates me, but eventually we reach a middle ground. I’m getting the sense that certain people haven’t heard the word “N.O.” too much. Fortunately, I don’t cave into bullying and I’m glad to dig in my heels until a compromise is reached. I recognize that this is a symptom of different leadership styles, negotiation styles, creative styles, and risk aversion. The great thing though is that Kelly pushes me out of my comfort zone and I also push her out of her comfort zone. The dynamic works! We both know that we do much better when we collaborate…even if we do want to strangle each other on occasion! Sabah has some very anticipated comprehension setbacks; however, this also helps the team dynamic because Sabah forces us to explain our decisions to her. This works as a QA measure too because we might realize some errors we’ve made when we explain things to her that we didn’t see before. We have had occasional problems with getting her to commit to group meetings and then changing things in the simulator without our knowledge. This has been addressed.  Although we are all feeling frustrated and very burnt out, I think we came together nicely to deliver a great presentation. Even if we go bankrupt or don’t win this thing, I am taking a lot away from the whole experience, which is more valuable than winning or losing.

 Obviously, there are some aspects of the simulation that aren’t quite how things would play out in the real world. For instance, we’re on all contents in 2 FYs. Highly unlikely. We invest in millions of dollars in R&D each quarter, also highly unlikely in the early stages of opening a business. We have one competitor. Nope. We have huge venture capital investments. Again, nope. We are constantly tweaking our operating capacity and cashflows, this would require a ton of labor hours, an army of managers/consultants, and analysts in the real world. Yet, oddly, we have no current liabilities that are AR or AP related on our Balance Sheet… However, the experience is close enough to reality to provide an extremely valuable learning experience. You just have to suspend disbelief sometimes.

 What a great way to wrap up the program! This capstone class may be one of the best classes I’ve taken in that it forces me to apply all of the knowledge I’ve gained throughout the program. I’ve also enjoyed our Accounting, Financial Management, and Public Policy classes. All of these classes have a few things in common: they make me uncomfortable, they push me just a bit past my breaking point, and the professors don’t give an inch. This class proves to me that I did learn from this, which is more important to me than the three letters that will soon be on my resume after my name. I want to wow my future employer, not just be competent.

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Blog 2

Bryan Parry

Blog 2

MBA 610

Prof. Allan Glass

5/30/2017

 Business Simulator Reflection Q1-3:

 Our first operational quarter severely underperformed our expectations. The team was initially shocked that we failed to capture a competitive amount of market share and that we wound up needing an emergency loan already. However, following our in class consult, we realized that this early failure wasn’t as big a setback as we may have anticipated, that we hadn’t completely failed at all, and that we gained valuable insight on how to proceed early in the game. Our team appears to have made slightly better product design and ad layout decisions, however, our advertisings and marketing strategy was grossly underfunded and staffed. For starters, we opted to utilize regional ads since we opened a web center in NORAM, but vastly understaffed the facility. We also failed to target local markets as heavily as the opposing team. Finally, we developed 2 desktops (one for the workhorse segment and one for the cost cutter segment), but not a laptop. This caused us to totally miss the opportunity to capture market share in the traveler and innovator markets.

 After reviewing the results at length independently, the team met as a group for a few hours on Saturday morning to finalize our Q4 strategy. So far, we designed a laptop to break into the traveler and innovator markets, developed a new ad, invested in a local media ad blast, increased our operational capacity to keep up with anticipated demand increases, and increased our sales force 3 fold. We also raised our prices and opted to promote a rebate offer based on feedback. Finally, the team plans to get very aggressive about expanding our sales offices by Q5. We hope to catch the other team unexpectedly with these huge expansions. The problem I have had personally is that I am not a risk taker. Kelly, by contrast, feels that spending liberally with aggressive expansion is what we need to do to gain a competitive market share early on. I agree and nervously await our Q4 results. I think that Q6 will be a telling quarter on our whether or not our team will be successful or fail since this is the quarter after our $5M venture capital funds are received and that revenues from our new sales offices should be realized.

 Thoughts on the GE HBR Innovation Case Study:

 Our decision to expand rapidly ties directly in with what we are covering in global strategies and the case study on GE. At first, the team wanted to open an office in every region. I was able to talk them down to all but one. The reason is that rapid expansion can be very difficult to manage in terms of capacity and recognizing the changing needs in a localized demographic. The strategy we are using in NORAM and APAC may not work in LATAM or EUROPE. Also, if we have a huge variance in demand, this could hurt revenues or the reputation of the company. GE is a good case in point because they found that manufacturing super high end imaging devices did not suit the needs of the demographic of emerging, rural economies (i.e. the workhorse group). What the company had to do is actually make portable imaging devices that were lower quality than those sold in developed nations (i.e. the cost cutter or traveler group). The reason is that doctors in these areas often travel and the local economy simply cannot afford to invest in stationary, expensive machines. Naturally there was some uncertainty in the corporation surrounding this decision since these types of innovations would theoretically cannibalize sales if they were sold in existing markets. This is how the company “disrupted” itself. So the lesson, as it applies to this class, seems to be not to ignore the needs of local markets and beware of “growth fever” caused by expanding into too many markets at the same time. I would propose identify markets with most growth potential and expand from those outward. Of course this also depends heavily on what the competition is already doing too…

 Professional Reflection:

 Now for the “dear diary” part of my blog entry. I have been very critical of the MBA program for some time and this stems from dissatisfaction with my frozen valuation in my current employment situation and a fear of being unprepared in a professional setting after completing this degree. I also have the problem of being in an awkward position as both a student and staff member at the college. That said, I have always viewed this position as a means to an end rather than an end in itself.

 For the third time, I have returned from going on a brief vacation to discover that a major leadership figure at the college has resigned. In the beginning of November I came in on a Monday morning to discover the Dean had resigned. In the third week of April, also on a Monday morning, the director of SAGE admissions called me into her office to explain that she herself had resigned. When she called me in, I wasn’t sure if I should get a box for my belongings ready! (What does that say about the culture?) Today, Tuesday after Memorial Day weekend, I learned that the president has resigned. (In president Ambar’s case, I think after nearly a decade, she needed to go somewhere where she could continue to grow in a personally fulfilling direction.) I have developed an objective viewpoint on all of this since I am somewhat detached from the college at this point, but find the situation interesting to learn from. I think there is a lesson in the organizational structure issues and unsatisfactory professional culture in this particular employment situation.

 Cedar Crest seems to be an organization in the midst of transition. The college claims to be an all-women’s institution, but doesn’t adhere to its own mission, which causes confusion in terms of a strategic plan, marketing approach, and unifying mission for administrative personnel.  Either as a symptom of this or as a catalyst causing this disorganization, I have personally observed what is defined as dissonant leadership in our Becoming a Resonant Leader textbook. According to Becoming a Resonant Leader, “Dissonant leaders are often commanding and use top-down or micromanaging approaches. They focus relentlessly on details and immediate results, to the exclusion of near everything else.” This defines my former boss to a “T”.  I think the cause of this behavior is insecurity which stems from a lack of organizational support or defined direction. I’ve also experienced the opposite type of dissonant leader who is simply unavailable, indecisive, scattered and inconsistent. The point is, no one wants to be this person.  In that situation there were unrealistic goals which created ethics issues via staff looking for corners to cut to meet those goals. A classic mistake. (Other great books on work culture problems and organizational issues I’ve read include Tribal Leadership, The No Asshole Rule, and Take the Bully by the Horns.)

 I hope that I can recall these examples when I need to when I am in a position to lead others. I am aware of some of my shortcomings already, which I will certainly explore in my personal vision essay. As for the college, as a stakeholder, I certainly hope they regain their bearings. They might start by really investing in marketing and market research, improving the organizational structure to provide clear paths for advancement, and re-evaluating their mission to unify the branding message, marketability, and purpose of the organization.

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Blog 1 MBA 610

Bryan Parry

Blog 1

MBA 610

Prof. Alan Glass

 Personal position/viewpoint:

 Coming into these final capstone courses, I am reviewing where I am currently at professionally and where I want to go. I also come into this class with some anxiety about my level of preparedness based on previous coursework the college has provided me. I view this course as a way to measure how much I’ve actually absorbed from my previous courses and how prepared I am for my next steps professionally. I am currently very underemployed, but have acknowledged that the opportunity cost of my current employment has paid for my ability to complete this program in general. In fact, I took the job with the ability to complete this program in mind. I am thankful for that but eager to move into a position that challenges and compensates me commensurate to my ability. I am looking forward to obtaining position in which I am valued and respected. In general, I feel prepared to draw on the content of previous courses to complete this last course in the program and gain access to employment that was previously unattainable. I began this program with an end in mind. Now I have to see if that end is actually within reach.

 Relevant to the project:

 So far the team has worked well on the first couple quarters of the project. We have had some apprehension about working again with one of our teammates, but so far she appears to be committed to trying her best in this course. We’ve agreed on our business model and have assigned tasks. We’ve also committed to a structure of reaching decisions and meeting outside of class. I am feeling much more confident that the workload for this course will be manageable and that we will perform well at this point. I am fairly confident in my ability to apply the product design concepts learned in my previous course as well as the accounting and finance acumen that I’ve acquired. I am also confident that my teammates will challenge my decisions and that we will scan for each other’s errors. I always enjoy working with Kelly because she has a lot more business acumen than she realizes, and I learn something from her every time.

 Relevant to the assigned reading:

 I’ve read through the first 3 chapters of On Innovation and the first 4 chapters of Becoming a Resonant Leader and have really enjoyed the material so far. For now, I’ll just focus on the On Innovation material. I like the idea of identifying “innovation catalysts” from different aspects of an operation and at various levels of the hierarchy. Something I hadn’t considered though was the tug-of-war that goes on between the regular operations personnel and the innovation team. They really do work at cross purposes in a sense and so it is vital that the CEO or senior most executives show their support and open up a dialog. I thought it was interesting how WD-40’s CEO, Garry Ridge, actually carried the portable version of the product being developed along with him to demonstrate his commitment to the initiative. The adage fail fast and fail often also comes to mind, exemplifying that the operations people are still crucial in monitoring progress. Engineering and product design really is an iterative process though, so even small failures are just steps closer to the end product concept and a learning opportunity that is valuable. Every time a design fails, more is learned about the market to strengthen future attempts. That said, always remember the concord!