The Present by Spencer Johnson is a small informative book that is written as a parable and is based on an old man narrating to a young man about the Present. The Present actually refers to the present time, and the book aims at informing its readers that they should focus their energies on the present time. On the overall, the book gives a reader valuable insight, which he/she can use in establishing organization strategies.
Spencer’s book The Present is an engaging and insightful book that teaches people on the importance of focusing on their present objectives (19). In particular, the author notes that a person should focus on his/her present activities to be effective and happy. In this case, a person should live in his/her present moment. Additionally, Spencer also notes that individuals should learn from their past (23). In this case, a person past experiences should give him/her appropriate lessons that he/she can use to overcome current challenges or exploit available opportunities.
Besides living in the present and learning from the past, Spencer asserts that an individual should plan for the future (33). In this case, an individual must establish appropriate actions, plans, and strategies that may help him/her achieve his/her future objectives. Finally, Spencer notes that a person must realize his/her purpose (61). This realization can enable the individual to appropriately respond to his/her present by reflecting on his/her past, and still focusing on his/her future.
Using the information from Spencer, managers in private and public sector can establish appropriate strategies for their companies. In particular, these individuals can focus on the present issues affecting their organization, use lessons that they learned from their past experiences formulating their strategies, and establish plans for their success. Finally, these individuals should always consider the primary purpose of their organization so that they can develop sound strategies that will enable them to achieve their future goals.
When establishing strategies, organizations should consider their present business environment. In this case, their managers can use Porter’s five force model to develop strategies for the organization. The forces that affect the present competitive environment of an organization are its competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry. With regards to competitive rivalry, an organization should look at the current strengths of its competitors. It should also check the number of its rivals and their strategies. In this case, it should consider their pricing models, marketing tactics, and quality of items that they sell. The company can use this information to develop appropriate tactics to counter the competitors’ actions.
Additionally, an organization must also consider the ease of its suppliers to adjust their prices or operating policies. If there are very few suppliers, these individuals can easily increase their rates or change their terms and conditions. On the other hand, if there are many suppliers, these individuals may hesitate in adjusting their prices since the organization can simply shift to those with more appropriate terms. In this regard, the supplier power affects a company’s strategies such as how it engages with its suppliers.
An organization must also consider its buyer power when it is establishing its pricing strategies. Few large buyers always have a high buyer power. Therefore, these individuals can influence the price at which the business sells its products to them. Nonetheless, the company should consider the ease with which these organizations can switch their products and services to those of a rival. If the company’s customers have difficulty in switching to competitors, then, even large buyers may still have a low buyer power. Consequently, the organization should consider the present status of its buyers when setting its prices.
The threat of substitution is always present in any organization. As a result, organizations must always be alive to the fact that their products may be replaced by similar products from competitors. In worse cases, the company’s products may be replaced by new innovative items, which can make them redundant. In this regard, the organization must be alive to the fact it is faced with a threat of substitution and always aim at developing better and more creative items.
An organization must also consider the threats of new entry into its industry or market when establishing its strategies. When the competitors have few barrier to enter the market, there is a high likelihood that it may face a lot of competitors in its operations. In such a market, the business may not easily increase the price of its items since such a strategy would lead to an increase in the number of competitors. On the other hand, if the threats of new entry are few, it may freely increase the prices of its items to maximize its profits.
Finally, an organization must consider the lessons learned from its past experiences. In this case, it should avoid repeating past investment and recruitment mistakes. The strategies formed by the organization must aim at enabling it to achieve its plans. Equally important, the organization must always stick to its primary objectives when establishing its strategies. This measure makes an organization to focus on what is relevant to its success when creating policies that reflect its present business environment, while still enabling it to achieve its future objectives.
Johnson, Spencer. The Present: The Gift That Makes You Happier and More Successful at Work and in Life, Today! Crown Business, 2003.