This time, we will deliver the first part of "Introduction to Effect to Survive Uncertain Age" that our representative Takasaki teaches in employee training.
We hope that you will be able to help us by sharing the know-how we have cultivated with everyone.
YOUTUBE Please also take a look.

What is effectuation?

A management technique proposed by Saras Salasbathy, a disciple and business scientist of Harvard Simon, who won the Nobel Prize in Economics, derives from quantitative research on how to make a company run well.
It is not just experience or intuition, but academically researches and abstracts the thinking/behavioral patterns of entrepreneurs who have made some success multiple times.
Recently, it has been attracting enough attention to feature features on Mizuho Bank’s site that executives and entrepreneurs can say the theory is harmless knowing.

corporate survival rate

First of all, I want to know the survival rate of companies.
In fact, the survival rate in the first year of business is about 70% and after 10 years it drops to approximately 26.1%, and there is a reality that more than 70 percent of companies will collapse within 10 years.
For example, if you work from 20 to 60 years old, your professional life is 40 years, but your company’s life expectancy is likely much shorter than that.

startup failure

Most startups fail.
As a result of hearing about the reasons for the failure, “we didn’t have market needs,” “we ran short of money” and “our team was bad.
The most common "no market needs" means that we've created something no one wants, not a lack of effort but the wrong direction or place for our efforts.

"Let's do market analysis,"a term often used in traditional business science.

In order to prevent such failures, “market analysis” has been recommended in traditional business science.
Typical frameworks include 3C analysis, PEST analysis, SWOT analysis, 5F analysis and STP analysis.
What we share is the idea of analyzing current market segments, targets and positioning, and then “preventing failure if you can take the right position”.

Problems:

Suddenly, it's a problem here.
In an era when you can listen to music on your phone, Sony Walkman has been a big hit for some reason. What's the reason? (Thinking Time!)

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Answer:

The correct answer is that it has been “accepted as a high-quality device for music enthusiasts.
Even if the data became a bit heavy, there were some people who wanted to stick to sound quality anyway.
This is a successful example of discovering needs from segment analysis, and it can be said that the market analytics framework we have cultivated has been a big win.

mystery of Starbucks' success

Conversely, there are cases that cannot be explained by conventional analysis.
For example, Starbucks was one of the most popular coffee markets in the era when Coke was founded and its coffee market had been shrinking, making it difficult to succeed with simple market analysis.
Nevertheless, why did Starbucks succeed?The key to solving that mystery exists in the effection.

What is Innovative about Effectiveness?

In business administration, the equation of success is to “think first about purpose, analyze market, draw a plan and execute it without taking any notice.” On the other hand, the idea that success has a causal relationship was premised; on the other hand, in effection we believe that success can be achieved by starting from your own values or means and repeating things that are useful for others.

The first part is up to this point, and in the second part we will talk more specifically about five principles of effection with examples. here Please also take a look.