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Do CEOs Matter?


Conditions that underpin the power and impact of chief executives vary widely, with remarkable results.
As a young man of 20 in his first job at a state-owned enterprise in China,
Guoli Chen found senior management fascinating, but not in a good way. His boss’s boss did very little – unless one counts reading newspapers, drinking tea and gossiping as work. “I wondered whether anyone could replace him without affecting the [organisation’s] overall performance”, recalls Chen, now a Professor of Strategy at INSEAD.
He didn’t stick around to find out. After two years, Chen moved on. His second job couldn’t be more different, in culture as well as the lessons he learned. Working in an investment bank, Chen observed how the company’s venture capital arm picked firms chiefly on the strength of the founding team, especially the chief executive. “Given the uncertainty of the [firms’] business potential…the VC literally bet the success of their investments ....

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How Toyota thrives when the chips are down


THE STANDARD
BUSINESS NEWS
Toyota offices in Nairobi (PHOTO: FILE)
Toyota may have pioneered the just-in-time manufacturing strategy but when it comes to chips, its decision to stockpile what have become key components in cars goes back a decade to the Fukushima disaster.
After the catastrophe severed Toyota’s supply chains on March 11, 2011, the world’s biggest automaker realised the lead-time for semiconductors was way too long to cope with devastating shocks such as natural disasters.
That’s why Toyota came up with a business continuity plan (BCP) that required suppliers to stockpile anywhere from two to six months’ worth of chips for the Japanese carmaker, depending on the time it takes from order to delivery, four sources said. ....

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