Mind map

WEALTH CREATION

Adolfo Ramirez Spanish

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WEALTH CREATION

PERFORMANCE
- COMPETITIVE ADVANTAGE
  - FASTER
  - BETTER SOLUTIONS
  - COST EFFECTIVE
  - LESS ADVERSE SIDE EFFECTS
  - $$ PRODUCER WEALTH
- VARIABLES OF PERFORMACE
  - ECONOMIC RETURN
  - COST OF CAPITAL
  - RE-INVESTMENT RATES
  - INDUSTRY COMPETITORS MARGIN
SYSTEM
- SYSTEMS MINDSET
  - COMPLEXITY
    - PATTERNS
      - STRUCTURE
    - iSSOLATED
      - NOT AS A HOLE
        FAULT ASSUMPTION
- PAK LOOP (Perceiving - Acting - Knowing)
  - PURPOSES
    - PERCEPTIONS
      - CAUSE AND EFFECT
        ACTIONS AND CONSEQUENCES
        FEEDBACK
        KNOWLEDGE BASE
        ROOT CAUSES
- OODA LOOP
  - OBERVATION
    - ORIENTATION
      - DECISION
        ACTION
- CREDIT CRISIS 2008 - 2009
  - NO RISK ASSESMENT
  - SHORT TERM PROFITS
  - NO SUSTAINABLE
    - RESILENCE
      - BAD COMPREHENSION OF PROBLEMS
- GOVERMENT REGULATION
  - POOR REGULATION
  - CORRECT REGULATION
FREE MARKET SYSTEM
- GOOD COMPREHENSION OF PROBLEMS
- ADAPTABLE TO CUSTOMER NEEDS
- EFFECTIVE USE OF RESOURCES
- PROVIDE VALUE TO CUSTOMERS
  - LIBERTY
- PRINCIPLES
  - Per capita income
  - Life Expectancy
  - Education
  - Democracy
HOW TO GENERATE VALUE?
- FUNCTIONS
  - Specialization
    - PRODUCT AND SERVICES
      - QUANTITY
      - QUALITY
      - PRICE
      - $$ CONSUMER WEALTH
  - Price Signals
  - Profit Incentives
  - Resource Allocation
  - Experimentation
    - BUSSINESS FIRMS
      - Lifecicle Performance
      - Shoreholder returns
      - Employee Compensation
  - Competition
  - Market discipline
  - NEW KNOWLEDGE GENERATED AND DISPERSED
    - INVESTMENT
      - CAPITAL BASE
- HIGH DEGREE OF COMPETITION
- MINIMUM OF GOVERMENT INTERFERENCE
  - Policies
  - Legislation
  - Regulation
COMPETITIVE LIFE CYCLE VIEW OF THE FIRM
- DYNAMISM
- GOAL
  - Efficiency provided to customer needs
  - Comercialize Service and Products
  - Value Delivered
  - Benefits to employees and shareholders
- MANAGER SKILLS
  - Improving Changes
  - Knowledge base
  - Future opportunities
- LIFE CICLE VALUATION MODEL
  - Forecasts
  - Value net Cash
- RISK ADJUSTED
STRATEGY
- EFFICIENCY
- INNOVATION
- $$$$ EXPECTATIONS
- Long term strategy
  - Historical Record