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The New Capitalist Manifesto Building a Disruptively
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International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990, Basically this book is about Institutional Innovation instead of producing better. services and products in 21st century From the Institutional Innovation means reinventing. management in an organization so that it delivers a systematically more value sooner instead of. generating systematically services and products of dubious ecological and social value In simple. words it s a journey of imagination where we will see production consumption and exchange. through new eye,Problem Statement, In the world economy trillions of dollars of budgetary resources annihilated trillions in. shareholder esteem vanished overall GDP slowed down However this isn t a money related. emergency or even a financial one It s an emergency of organizations goals acquired from the. modern age These standards incorporate widespread abuse of assets top down order of asset. portions withholding of data from partners to control them and a resolute quest for benefit. for its own purpose This has created slender worth transient financial increases that collect. to a few people significantly more than others and that don t make us more satisfied or more. beneficial,Motivation of the study, This study concentrate on rehashing administration in an association with the goal that it. conveys a methodically more esteem sooner as opposed to creating administrations and results. of questionable and social quality In straightforward words it s an excursion of creative ability. where one can see generation utilization and trade through new eyes Study gives us essential. ideas on new private enterprise 21st century private enterprise versus old free enterprise. twentieth century private enterprise and makes the conflict that the present sort of free. enterprise free endeavor might be not sensible any longer Study edified the thought. regarding slender worth and thick regard These qualities lay that basis to how free enterprise. may experience to meet the distinctive difficulties Concentrate further depicts in point of. interest the components of misfortune favorable position by re conceptualizing rearranging. reconstructing creation and utilization as a worth cycle rather than quality chain. Notwithstanding that concentrate further reported about acing flexibility that is upset yourself. as opposed to securing yourself and disturb yourself before another person tags along and does. it The study is powerful in light of the fact that it characterize inventiveness as the capacity to. make ultra high require with minimal effort markets where quality is thickest Concentrate. thoughtfully expound the valuable industrialists make Unthinkable new markets fragments. and Industries,Contribution of the study, The book is intriguing significant splendid scholarly and moral As per its own specific. benchmarks it gives us regard esteem that matters regard that will expand duplicate and. regard that will last The new entrepreneur pronouncement is book for the individuals who. anticipating offers the respectable thought of both financial quality and in addition thick. esteem This book adds to the business society and financial analyst will get extraordinary. advantage from this book,www hrmars com, International Journal of Academic Research in Business and Social Sciences.
2016 Vol 6 No 9,ISSN 2222 6990,Executive summary, Umair Haque divided his book into 8 chapters six steps The main concepts of the each. chapter will be discussed below, Chapter 1 The Blueprint for a better kind of business. In this starting chapter haque give us basic concepts on new capitalism 21st century. capitalism versus old capitalism 20th century capitalism This chapter makes the contention. that the current kind of capitalism free enterprise may be not reasonable anymore Haque. enlightened the idea about Thin Value and Thick esteem These values lay that groundwork to. how capitalism might experience to meet the different challenges Thin value is meaningless. artificial and unsustainable comparatively Thick value Mc Donald Mc Mansion and Hummers. who get advantage when we eat consume enormous macs. Salient Features, Constructive capitalists were shifting from value chain to value conversation when resources. are utilized by renewing them instead of by exploiting them. Constructive capitalists were shifting from value propositions to value conversation When. resources are allocate democratically respond better to demand supply shocks. Constructive capitalists were shifting from strategies to philosophies when to become more. competitive over the long term in spite of just blocking competition temporarily 2. Constructive capitalists were shifting from protection to completion of their market places. when to create new arenas of completion instead of just dominating existing ones 3. www hrmars com, International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990, Chapter 2 Step One Loss Advantage From value chains to value cycles.
In this chapter Haque describes in detail the elements of Loss Advantage First. step Loss advantage happens by re conceptualizing reorganizing rebuilding production. consumption as a value cycle instead of value chain 4 He replaced the value chain into value. cycle where value cycle is based on simple objective that is waste nothing But replenish every. possible thing by using the example of starkest wal mart strategies 5. Walmart strategy for Constructive Capitalism,1 Use 100 renewable resources. 2 To achieve zero waste, 3 To sell only those products that benefits the environment. Salient Features,Remarketing, Remarketing has to do with understanding what kinds of resources are renewable and. can be fed to a cycle and which aren t and can t be To build a value cycle is to be able to feed it. stuff that can be cycled Conversely only when a company understands what it is depleting can. it understand what to renew instead 6,Reproduction. Manufacturing of the same product at low cost instead of producing completely new. product in the market 7, Example Nike has discovered a mix of materials it is a process and treatments that isn t toxic.
harmful or wasteful It can reclaim shoes at the point of disposal Once it can reclaim shoes it. can manufacture them at low cost instead of producing completely new shoes extending its. newer better kind of cost advantage 8,www hrmars com. International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990,Reverse Logistics, The third segment of a value cycle is reverse logistics and the most efficient value cycles. are the shortest Value cycle owners always have an incentive to move production as close to. consumption as possible to minimize how far resources have to flow to be recycled. remanufactured re purposed and reused 9, Example As Nike develops its value cycle ensuring that shoes don t just go from factory to the. athlete but back from athlete to the factory where they can be remanufactured. Fourth and the most powerful value cycle must be spun This spins the gear of. production or reproduction into the motion Cycle spins into two ways Forward from supply. to demand and Backward from demand to supply 10, Chapter 3 Step Two Responsiveness from value propositions to value conversations. This chapter is all about ability agility to engage suppliers customers the market. related to mastering responsiveness Hold value conversation instead of dictate value. propositions The main example to support this topic is Thread less T shirt Company business. model 21st century business are built on new institution that is value conversation but 20 th. century business were built on value propositions 11 The main pillars for value conversation are. deliberation participation Dissent association,Salient Features.
Participant, Under the terms of orthodox capitalism only and only shareholders can participate. because they hold equity but in constructive capitalism more parties than shareholders the. right to participate in decision making Constructive Capitalism focuses on empowering the. community while industrial age capital focuses to empowering just managers. Deliberation, Deliberation is a deeper kind of democracy Deliberation reasoned conversation that. details and debates trade offs between parties with conflicting interests Deliberation is rich. with information and knowledge 12, Example Starbucks encourages discussion context and exploration preventing drive bys by. placing ideas under review and moderating discussions. Association, Association means demands of public spaces that are unencumbered and un. encroached upon by vested interest for conversation to ignite Public spaces allow participants. the freedom to deliberate without the fear of retribution retaliation escalation whether from. managers or other participants, Example At Wikipedia anyone can become a contributor editor or administrator and anyone.
can associate with any other contributor editor or administrator The result is a vast public. space open for deliberation s intense conversations. www hrmars com, International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990, Dissent is the fourth pillar of the democracy Dissent means granting at some. meaningful level the power to veto features attributes products or services and entire. Chapter 4 Step Three Resilience from strategy to philosophy. It is all about mastering resilience that is Disrupt yourself instead of protecting. yourself and Disrupt yourself before someone else comes along and does it And the ability. to evolve by challenging its own business model products markets 13. In thin value Competitive strategies say Here how we will get people to buy our stuff. no matter what While in thick value philosophy says Here how we will make stuff people. want to buy no matter what, Google is used as an example of resilient organization. Salient Features,Resilience is based on two principles. a Knowing knowing about conflicts, First principle specify how we will create thick value instead of merely blocking others.
from creating value They identify specific circumstances in which we won t engage in the. anticompetitive practices of conflict we have identified as business as usual in our industry and. how we will seek free and fair exchange instead,Knowing conflict in the shape of. Price Fixing when prices are fixed markets are robbed of information. Bid Rigging when bids are rigged,Side Payments Kickbacks and side payments. Bundling and tying, Division Territories are implicitly divided to create monopoly. b Synthesizing, The second stage principle in crafting a philosophy is synthesizing knowledge to create. first principles Synthesizing of the knowledge give you limit and prevent failure from the. specific kinds of conflict, Chapter 5 Step Four Creativity from protecting to completing a market place.
This chapter is fully about mastering creativity Haque define creativity as The ability to. create ultra high need with low cost markets where value is thickest 14. TATA Hindustan unilever Apple Sony PS3vs Nintendo wii Microsoft Zune VS Ipod are. the examples of creative organization who follow the principles of completing market place. instead protecting market place According to haque constructive capitalists create. Impossible new markets segments Industries Perfecting imperfect market places instead. of merely protecting them makes constructive capitalists Like TATA Apple. www hrmars com, International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990,Salient Features, There are four paths to perfection in constructive capitalism How each leads to the. creation of impossible new industries market and categories. Meta means above and beyond It has to do with information what sits above and. beyond markets and wires exchanges together Often markets remain incomplete because of. poor information The more expensive information is the more costly transactions are and the. more categories and segments are underserved, Micro has to do with divisibility often markets remain incomplete because products and. services are monolithic only available in tatanic sized increments they cannot be subdivided. So they remain in accessible unaffordable or unreachable for many categories and segments. Macro has to do with turning products and services into assets Sometimes markets. remain incomplete because the assets that underpin production and consumption are not. tradable or are nonexistent in the first place assets like knowledge suppliers distribution. networks or cash, Ortho has to do with simplifying complexity Ortho means straight or straightforward. Markets often remain incomplete because complexity imposes steep costs on production and. consumption rendering products and services uneconomical for many potential buyers. suppliers or customers, Chapter 6 Step Five Difference from goods to betters.
This chapter is all about mastering difference through focus on creating products that. supports positive results instead just delivering functions Constructive capitalists focuses on. betters inspite of just producing goods Bundles of products services that make a difference. to people communities society by having a tangible meaningful enduring positive impact on. them 15 Nike Nintendo wii are citied,Salient Features. How capitalists are making a difference to each,Physical wellness. In order to affect the category of physical wellness you need to ask do we make people. physically healthier and fitter and help them live longer Do we help them exercise regularly. diet properly and rest fully Do we help them maintain better hygiene and cleanliness 16. www hrmars com, International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990,Social wellness, Social wellness is about connection the quality intensity durability and quality of. relationships To affect this category of wellness you need to ask are we helping people have. better relationship Do we facilitate more trusted relationships with prolonged contact and. more affiliation between people 17,Economic wellness.
Economic wellness is about helping others become more productive and efficient In. order to affect this category you need to ask Are our products and services usable Are we. making people more secure against economic volubility and in security 18. Economic wellness isn t about simply selling people low priced goods and services. because they often simply lead to greater learning maintenance or replacement costs. Mental wellness, To address the category of mental wellness you need to ask Do we make people. mentally healthier Do we make people mentally fitter Do we improving their thinking. reasoning remembering and judging skills 19, Chapter 7 Constructive strategy from Dumb growth to smart growth. Haque discuss in this chapter how constructive strategy business will create on ideas. such as creativity resilience Difference Generosity etc which is also known as learning to. crave a new capstone 20,Salient Features,Locally smart Growth. Dumb Growth is locally self destructive to people communities and countries. because it s not built on investment but on overconsumption instead While smart growth is. built on investment Being locally constructive means feeling people and communities investing. in themselves literally locally instead of merely consuming more and more disposable and. ultimately self destructive 21,Globally smart Growth. Dumb growth is globally self destructive across countries societies and continents. because it requires the poor to subsidize and leverage the rich Globally constructive growth. happens instead when the rich invest in the poor so both can invest in tomorrow 22. Economically smart Growth, Dumb growth is economically self destructive because industrial era business was.
dominated by diminishing returns economics But in Constructive era business is dominated by. www hrmars com, International Journal of Academic Research in Business and Social Sciences. 2016 Vol 6 No 9,ISSN 2222 6990, increases in return the more resources are utilized the more valuable they become and more. they appreciate 23,Chapter 8 Constructive Capitalism. 20th century capitalism does not fit into 21st century economics neither do 20th century. capitalist They are caught in dilemma 20th century. Thick value is value that is more sustainable meaningful and authentic than that of rivals. Sustainable value is value that lasts beyond production and consumption Thick value is driven. by investment in tomorrow replenishing what is taken and caring for what is seeded. Meaningful value is value that matters It has a greater more positive impact on people s. outcomes in ways that matter most of them, Authentic value is value that grows it benefits boardrooms shareholders people. communities society and the natural world Competitive advantage is often selfish but. constructive advantage creates authentic value that accrues to many or all. This chapter gives the proper definitions of the entire constructive capitalism s steps. www hrmars com, International Journal of Academic Research in Business and Social Sciences.
2016 Vol 6 No 9,ISSN 2222 6990, The main issue with haque s illustrations examples are that more than half are expansive. large companies that have the money to try in making the better business move and after. that others started in better business practice social enterprise Examples are Apple Nike. Wal Mart Google Threadless Company and Grameen Shakti etc. Conclusion, In General the book is interesting profound brilliant academic and ethical According to its. own particular standards it gives us esteem value that matters esteem that will increase. multiply and esteem that will last The new capitalist manifesto is book for those who looking. forward to share the noble idea of both economic value as well as thick value I refer this. book to anyone who cares or thinks about the future of humankind. 1 Umair Haque The new Capitalist Manifesto London Harvard Business Press 2011. 2 ibid P 29,3 ibid P 30,4 ibid P 46,5 ibid P 52,6 ibid P 53. 7 ibid P 55,8 ibid P 60,9 ibid P 65,10 ibid P 73,11 ibid P 88. 12 ibid P 99,13 ibid P 110,14 ibid P 139,15 ibid P 154.
16 ibid P 157,17 ibid P 158,18 ibid P 159,19 ibid P 164. 20 ibid P 170,21 ibid P 172,22 ibid P 174,23 ibid P 196.

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