21st Century "4S Business Model"

Strategy, Structure, Social Engagement & Stakeholders

20th Century 20th Century "2S" Business Model

From the 1920s through the 1950s Alfred P. Sloan was president, chairman and CEO of General Motors Corporation. His career defined successful, competitive business practices of the 20th Century that were widely emulated. 

He developed and perfected the "2S" Business Model.

In 1962, Harvard Business School Professor Alfred Chandler published the landmark book, Strategy and Structure in which he reviewed seventy of the largest corporations in America for how they dealt with a single economic problem: the effective administration of an expanding business. 

He summarized the history of the expansion of the nation's largest industries during the previous hundred years and then examined in depth the modern decentralized corporate structure as it was developed independently by four companies--du Pont, General Motors, Standard Oil (New Jersey), and Sears, Roebuck.

Chandler wrote that a corporate Structure is created in order to implement a given corporate Strategy.

He described corporate Strategy as"the determination of long-term goals and objectives, the adoption of courses of action and associated allocation of resources required to achieve goals." 

He defined Structure as"the design of the organization through which Strategy is administered. Changes in an organization's Strategy led to new administrative problems which, in turn, required a new or refashioned Structure for the successful implementation of the new Strategy."

The 21st Century 4S Leader

Today more than ever, as the internet shifts control to the consumer, leaders must adjust their business models to address rapidly emerging opportunities and threatsThe question is "How and where do I adjust?"

Short answer: In this always-open. omnichannel world, traditional "2S Business Models" must be replaced with "4S Business Models" to uncover astonishing insight into authentic  and ever-changing consumer requirements.

As Google Semantic Search expert, David Amerland said recently in Forbes"The market’s evolving needs must be met by evolving products. Those needs are increasingly expressed not in the classic focus-groups of yore, but in today’s vibrant social media forums. This fundamentally changes the game between a company and its customers."

Donnie Smith, CEO of Tyson Foods, is an example of a "21st Century 4S Leader" who operates within what appears to be a traditional American corporation. Look closer and continue reading about how you can introduce a "21st Century Business Model" into your 20th Century organization.

The Good News?

You don't need me. I'll give you everything you need to do this yourself. 
Here's how to start.

For additional information, please contact Jim Shankle.

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By Jim Shankle, Copyright © 2010-2015 JimShankle.net & MBAMarketingStrategies.com