Table of contents Appendices

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Appendices

Appendix II

Mission and Strategy CRV

In the first appendix the mission and strategy of CRV are portrayed. In addition to the description of the mission and strategy in the introduction, a wide explanation of both the factors will follow in this appendix.

Mission CRV

CRV is an international leading cattle improvements cooperation, that delivers added value to cattle breeders by means of:

• High-grade products and services;

• Active commitment of members and employees; • Continue innovation;

• Permanent attention to sustainable developments. High quality products and services

A wide assortment of products is needed to respond to the demands of local buyers world-wide. CRV wants to provide sound products and services at a competitive price to its members and customers. The operation wants to be a market-focused entrepreneur. Values such as profitability, durability, reliability and service are core to the activities of CRV.

Active involvement of members and employees

Active involvement of members is important. In order to maintain this and to ensure sufficient input in policy development, members can participate in member meetings, youth committees and boards which discuss the future of the organization. Besides involvement by employees is important as well. They can give a lot of attention to professional development, thanks to an employee’s policy in which a lot of attention is given to professional development, in order to keep the organization competitive. In addition to involvement, this also ensures motivation and loyalty.

Ongoing innovation

In order to realize added economic and durable value, renewal is a prerequisite. Therefore cost control and innovation receive a lot of attention. The goal is to offer the best price-quality ratio for dairy and beef farmers. The innovation is focused on new technologies surrounding semen collection and processing, genetic markers and improved breeding value estimations. Services via the internet are an important development in assisting farmers to manage their operation more effectively. In this area as well, CRV contributes to innovative products.

Constant attention to trends in society

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Strategy

The market proposition is cost leadership. To be a succesfull player on the market CRV strives to the following aspects:

• Creating market and customer value; • Grow of the turnover;

• Continuity;

• Healthy financial results;

• Propagate the cooperative consideration. Focus on market and customers

The increasing expertise of the members/customers and growing competition demand a market and customer focused approach. CRV’s goal is to maintain intensive contact with customers and to

respond to the needs that exist in the market place. It wants to distinguish itself from the competition with an optimum combination of price, quality, ease of purchase and reliability.

Growth in turnover

CRV sells its high quality products and services all over the world in order to counterbalance its continuously shrinking domestic market. The goal is to further expand the volume of business via acquisitions and the establishment of structural international cooperative alliances.

Continuity

CRV’s goal is to remain competitive in the market place for the future. To do this, it aims for effective, efficient management and focused price differentiation. Further internationalization is a prerequisite to control costs and to spread veterinary risks. In this way CRV can continue to support dairy farmers in achieving profitable farm results.

Healthy financial results

CRV aims for healthy financial organizational development. This means that the services cover their own costs and that the sale of products contribute to the profit. CRV is currently aiming for an annual profit of approximately 4% of turnover after taxes.

Give meaning to the concept of a cooperative

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Appendix III

Macro environmental information

In this appendix extra information about macro environmental information is presented. The information apply to be an addition to the results of DESTEP method.

Demographic factors

The average annual growth rate of the population, over 10 years period and rural and income share in 2005 are projected in the next table:

Population Income

1996-05 2006-15 2005 rural share 1996-05 2006-15 2005 income share

World 1.26 1.10 50.8 2.64 2.90 100 Africa 2.24 2.08 60.3 3.50 3.78 1.8 Latin America 1.47 1.20 22.4 2.03 3.61 5.7 North America 1.00 0.87 19.2 3.02 3.21 28.7 Europe 0.00 -0.11 26.7 2.33 2.17 32.1 Asia 1.28 1.07 60.1 2.64 3.13 30.2 Oceania 1.36 1.36 26.7 3.48 3.09 1.6

Table 1: population and income, appendix III

Consumption patterns with regard to beef and dairy products: Milk

(liter) Beef&Veal (kg) Cheese (kg) Butter (kg)

2006 2015 2006 2015 2006 2015 2006 2015 Canada 87,22 87,3 22,1 21,89 11,03 11,21 3,03 2,68 USA 85,31 81,33 30,65 28,89 14,66 16,52 2,07 2 Europa (25 countries) 80,68 83,69 12,54 12,27 17,76 19,16 4,18 3,82 Rusland 11,37 14,19 4,91 6,5 3,08 3,97 Australia 98,28 90,01 26,89 24,54 9,57 9,38 3,04 3,5 New Zealand 81,23 75,8 17,04 18,19 6,89 6,52 7,72 7,46 China 14,97 21,02 4 5,96 0,22 0,3 0,1 0,13 India 1,74 1,72 0 0 2,77 3,77 Argentina 41,86 37,33 8,89 8,76 0,86 0,62 Brazil 25 32,35 2,61 2,81 0,46 0,53 South Africa 10,3 10,77 0,86 0,78 0,29 0,28

Other african countries 4,01 4,13 1,28 1,3 0,42 0,37

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The total number of cows is to a large extent established in the following countries: Number of cows (2005) Argentina 50,768,000.00 Australia 27,782,000.00 Brazil 207,000,000.00 Canada 15,063,000.00 China 115,229,500.00 France 19,383,000.00 Germany 13,034,500.00 India 185,000,000.00 Japan 4,402,000.00 Mexico 31,800,000.00 Netherlands 3,799,000.00 New Zealand 9,609,000.00 South Africa 13,764,000.00 Spain 6,463,530.00 Ukraine 6,902,900.00 United Kingdom 10,378,000.00

United States of America 95,848,000.00 Table 3: number of cows, appendix III

Development in dairy and beef trade

Brazil and India are the leading countries in the total number of cows. However, many of these cows are not kept for producing on a large scale. In these (especially developing) countries cows are still kept for self sufficiency only, what implies there is a high rate of small farms. On the other hand, in the developed countries farms are intensified and produce on a large scale, with commercial purposes. Groenewold (2004) has made a study in which production systems and regions dairy cattle is bred. 40 per cent of all dairy cattle and 67 per cent of global milk production comes from temperate and tropical highlands systems.

In 1995, for the first time, meat volume produced in the developing countries exceeded that of developed countries and since then, the gap in milk output between developing countries and developed countries has been narrowing. Especially the influence of agricultural superpowers Brazil, China and India is increasing, these three developing economies account for almost two thirds of the total meat production in developing countries and for more than half of the milk. India is the world’s largest milk producing country.

However, the diary market the OESO countries will continue to dominate (Europe, New Zealand, and Australia). This is because developing countries India, China, Brazil find it difficult to enter international markets with their dairy products. This, to a large extent, is due to food safety and quality issues. Larger foreign holdings which invest in those markets will improve these factors. New players on the world market which will play a significant role in the dairy market are Argentina and Ukraine.

Animal diseases have had a significant impact on the international trade in meat products, but traditional exporters (USA and Canada) are expected to recover lost their market share. Brazil is expected to be the number one exporter of beef in the long term future. Russia is one the most important markets for meat products.

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Appendix IV

Import and Export Bovine semen

In this appendix the organization of the export and import market of (bovine) semen is described. The information is reached from www.icongrouponline.com. In the first table the import rates are represented and in the second table you will find the export rates. Only the top ten world players have been selected

Table 1: Total world import rates, appendix IV

Table 2: Total world export rates, appendix IV

The world exporters's market for imported bovine semen: 2007

Rank Value (000 US$) % of world % of world

USA 1 $ 23.317,00 14,42% Europe 49,37%

UK 2 $ 12.818,00 7,92% N. America & Caribbean 17,50% Japan 3 $ 10.635,00 6,57% Latin America 16,29%

Mexico 4 $ 10.498,00 6,49% Asia 8,22%

Netherlands 5 $ 8.263,00 5,11% Oceana 4,14%

Italy 6 $ 8.000,00 4,95% Africa 2,95%

Spain 7 $ 7.903,00 4,89% The Middle east 1,52% Germany 8 $ 6.798,00 4,20% Total world 100,00% Australia 9 $ 5.932,00 3,67%

France 10 $ 5.837,00 3,61%

Total top 10 $ 100.001,00 62%

Total world $ 161.753,00 100%

World supplies of exported bovine semen: 2007

Rank Value (000 US$) % of world % of world

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Appendix V

Herfindahl index

In this appedix the results of the Herfindahl index are portrayed. The Herfindahl index equals the sum of the squared market shares of all the firms in the market. Using the most recent competitors’ analysis of CRV (2004), information of eight structural attractive foreign markets is available.1_{The Herfindahl} index of all these markets will be determined separately.

Market Herfindahl index

Germany 0,029 GB 0,28 Spain 0,19 Czech Republic 0,19 USA 0,19 Australia 0,29 New Zealand Unknown Brazil Unknown

Table 1: Herfindahl index, appendix V

Of six countries the herfindahl index is calculated. The total Herfindahlindex of the six countries is 0,0028.

On the basis of the Herfindahl index it is possible to classify the markets. There are four categories: Nature of competition Range of Herfindahls Intensity of Price competition Perfect competition Usually below 0,2 Fierce

Monopolistic competition Usually below 0,2 May be fierce, depending on product differentiation

Oligopoly 0,2 to 0,6 May be fierce or light, depending on interfirm rivalry Monopoly 0,6 and above Usually light, unless threatened

by entry Table 4.2.2: Nature of competition

Four of the six researched countries score below 0,2 and the other two just above. This means that the competition is a matter of a perfect competition and/ or monopolistic competition, depending on product differentiation.

Characteristics of a perfect competition are: • There are many sellers;

• Consumers perceive the product to be homogeneous; • There is excess capacity.

Characteristics of a monopolisitic competition are: • There are many sellers;

• Each seller sells a differentiated product.

The monopolistic competition is the most suitable for the cattle improvement market.2_{This is} because the products are not homogeneous (there are quality differences between cattle breeds).

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Besides one of the characteristics of the perfect competition is excess capacity, but in the world market there still is a shortage.

Prices in monopolistic competitive markets are set according to the willingness of consumers to switch from one seller to another, if customers are disloyal and have low search costs, sellers may lower prices to steal business for their competitors. If customers are loyal they are willing to pay higher prices (for instance Mexico, farmers are willing to pay higher prices for USA semen, than they are willing to pay for CRV semen). Profits may be eroded further by entrants. Economists distinguish between vertical differentiation and horizontal differentiation. A product is vertically differentiated when it is unambiguously better or worse than competing products. A product is horizontal differentiated when only some consumers prefer it to competing products (holding price equal). CRV experienced that the semen products are not vertically differentiated. None of the competitors, as well as CRV itself has created a sustainable competitive advantage because of product quality. The degree of horizontal differentiation depends on the magnitude of consumer search costs. In markets with high search costs consumers have highly idiosyncratic preferences (Besanko et al, 2004). In the cattle improvement market customers have idiosyncratic preferences; many are still very local orientated.

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Appendix VI

Competitor information

Competitor Country of origin 2004 Volum X 1.000.000ds % of world market characteristics

Genus/ ABS USA 9,1 3,4% • Offensive strategy;

• Aimed at R&D and production;

• Active with expanding, affiliates in UK, Australia, Brazil, Mexico, Italy, Canada, Chile;

• Scaling and synergy with patentable biotechnology products and genetics products of for example swine and shrink

• Global production and distribution network

• Trying to get strong position in Chinees market;

• Most international

market share.

Select Sires USA 7,0 2,6% • Cooperation structure;

• Business especially in US market;

• Aimed at R&D and production;

• Export via WWS.

CRI USA 5,2 2,0% _• No foreign subsidiaries;

• Cooperation;

• Aimed at differentiation (for example with water and soil research);

• Strategic alliance with Monsanto for putting sexed semen into the market.

Semex Alliance Canada 5,0 1,9% • Aimed at a niche

segment (top of the line);

• Global connections;

• Experienced exporter.

Alta genetics Canada 3,8 1,4% • Struggling with strategic

direction;

• International oriented.

LIC New Zealand 3,5 1,3% • Exporting but no foreign

subsidiaries;

• Searching for

cooperation’s in Australia;

• Trying to step into the South-east Asian and Chili market;

• Same total product

concept (semen and services) as CRV

Total large players 40,2 15,2%

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Appendix VII

Interview

Interviews have been taken with the manager international business development, interim manager international sales and a business analyser. The interview is written in Dutch because of the consistency. Most other (internal) information of CRV is in Dutch as well and with regard to (the translation of) technical terms a Dutch system has been chosen.

Interview CRV 6 mei 2007

1. Wat betekent business development voor CRV?

2. Is het uitgangspunt een focus op de klant of een focus op de markt?

3. CRV heft gekozen voor cost reduction, internationalisation and doing other things! Cost Leadership, keuze bepaald op basis van markt trends, daarnaast ook klantgericht zijn (lokale markt bedienen), hoe dat in te vullen (zie bovenstaande model)?

4. Mondiale concurrentiestrategie: zeer effectief en efficient inzetten van zaken als R&D, foktechniek, productie, distributie en marketing. Wie zijn bezig met de implementatie, hoe verloopt deze?

5. Nu multinationaal of inmiddels mondiaal? Hoe mondiaal te worden?

6. Vertaling marktbehoefte – fokwaarden loopt met vertraging 6 a 7 jaar, dus heel vroeg scouten, trends bepalen?

7. Welke producten doen het goed?

8. Hoe is de internationale orientatie van de hoofdstructuur? (ook directie) 9. Markt performances konden moeilijk gemeten worden, hoe gaat dat nu?

10. Hoe wordt een nieuwe markt benaderd, welke stappen worden ondernomen? Waar zijn de markten te vinden (Oost Europa, Zuid Amerika?) Taalbarriere?

11. Wat is de functie van de cooperatieve achtergrond, wat levert dus op, wat zijn de nadelen? 12. Wat gaat er goed, wat kan er nog beter?

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14. Wel eens nagedacht om je te richten op export van andere producten? ICT kennis en programma’s? Zijn programma’s met weinig kosten, snelle ontwikkeling en verspreiding mogelijk!

15. Huidige activiteiten, waar nu mee bezig? Concurrentie

1. In 2002 evaluatie, op internationale markten is het veel moeilijker om een positie te creeren, dan vooraf ingeschat, hoe is de situatie nu? Wat ervan geleerd?

2. Fast follower, hoe denken jullie dat te gaan invullen?

3. Waar zijn concurrenten mee bezig, hoe wordt deze kennis verzameld? Benchmarken)

Intern

1. Het internationaliserings proces is een leerproces, waarin CRV beter wordt, waaruit blijkt dat? 2. Visie 2010, volledig plan technisch gezien, maar hoe verloopt de implementatie, hoe gaat het

personeel ermee om, wordt men ook professioneler?

3. Komt er kennis binnen via Sales? Hoe gaan Sales mensen te werk?

4. Is er synergie tussen Sales, Relation en Business Development? Wordt er waarde gecreerd? Leren is:

• Open minded inquiry

• Wide-spread information distribution

• Gemeenschappelijk geinformeerde mental models (iedereen besteed aandacht aan essentie en potentie van informatie)

• Toegankelijk geheugen/ kennis (over wat is geleerd, zodat kennis gebruikt kan blijven worden) • Evaluaties

5. Is er veel conflict en waarom?

6. Zijn er collega’s die Spaans spreken en lezen? 7. Personeel, meegegroeid of nieuw?

8. Rol directie, directeur Internationaal& Fokkerij? 9. Achtergrond personeel?

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Appendix VIII

Substitution products

In this appendix the substitution products for CRV its’ semen are explained. The substitution and complement products for semen can be categorized into the following segments:

• Trade of life stock; • Embryo’s;

• Different breeds; • The use of natural bulls;

There is export of life diary cattle to many countries. This market is still strong affected by animal diseases (BSE, Footh and Mouth disease, Blue tongue). However it is an important market in the Dutch industry. For instance the export of livestock to Russia is still growing. CRV sees this market not as a competing market, but as a complementing market, the export of livestock and semen together is functioning well.

The embryo business is a substituted market. Because producing embryos is much more expensive, it is aimed at especially the top end market. An advantage of the use of embryo’s is that it is possible to exploit the own specific breed elsewhere on the world and, thereby to utilize the qualities of the own breed. Compared to the export of livestock it is much easier and cheaper to export embryos.

In the dairy market, the Holstein breeding seems to be most popular, in the beef market one can distinguish a few popular breeds. Because of the closed markets, different circumstances and experiences, there are many different breeds and different market needs. The price-value characteristics of these substitutes are comparable. CRV experienced that an international operating company, requires a broad view on the international market and, much understanding of local needs, to be able to anticipate to those needs, be means of offering these local products. This means that at this moment the market is relative stable and that there is no matter of a specific threat of substitute products. However with liberalization the threat of substitute products can increase.

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Appendix IX

Analysis Strategy

In this appendix the analysis of the strategy is represented. The strategy represents the way an organization uses its’ resources (human, economic, or technical) to achieve its goals and gain a competitive advantage. It can be described by the organization’s mission, goals and objectives, strategic intent and functional policies (Cummings & Worley, 2005).

Mission statement

The mission statement describes the long-term purpose of the organization, the range of products or services offered, the markets to be served and the social needs served by the organization’s existence (Cummings & Worley, 2005). The mission statement of CRV is:

CRV wants to be a leading and dominant market player in the field of cattle improvement.

This sentence describes the long-term purpose of the organization. A more detailed description tells us that this mission should be achieved by means of a wide breeding program, adapted to the needs of the local customers and aimed at interested markets all over the world. The planning is to be a dominant market player in 2015. Being a dominant player also depends on the market structure. At this moment the market is a monopolistic competition with many competitors. CRV expects that this will change and a few players will remain. Than the competition can be classified as a oligopoly. In an oligopoly the herfindahl index is between 0.2 and 0.6. The competition may be fierce or light, depending on the inter-firm rivalry. In this market with only a few sellers, it is reasonable to expect that the pricing and production strategies of any one firm will affect overall industry price and production levels (Besanko et al, 2004). Being attractive to customers depends on the price and/or product quality.

Goals and objectives

The goals and objectives are statements that provide explicit direction, set organization priorities, provide guidelines for management decisions and serve as the cornerstone for organizing activities, designing jobs and setting standards of achievement.

The main goal of CRV is to make a growth in the turnover of the subsidiaries of 300 percent of 25 million and that is 75 million euro. This should be realized in the year 2015. The main part of this growth has to be realized by means of international acquisitions (kralenrijgen). CRV strives to take over several smaller competing companies.

The goal of the sales division is to growth four percent in turnover each year. To achieve this goal CRV developed a General Electric (GE) matrix. By means of a GE matrix it is possible to do a business portfolio analysis to determine the market attractiveness and business assessment. The working of the method is as follows: Per market there are several criteria to score the attractively and the current position of HG in that specific market. The scores are counted and the two results are placed in a matrix opposite each other. Countries with a high attractiveness and in which CRV has a good position, will lead to investments. In countries with a low attractiveness and a bad market position, disinvestment is the advice. (Meanwhile CRV made of GE matrix for the division “International business development” as well).

The highly attractive markets are segmented into three forms, the developed market, the developing markets and, the pioneer markets. CRV is especially focused on the developing markets. The last years CRV is more customer focused, what implies that they try to serve the customer on based of their needs. Thus the breeding programs in the different countries will be aimed at the local market, in contrast with before when CRV was trying to sell only its’ own core product, the Holstein (breeding), but that was not very successful. Applying this customer focus on a international scale is not easy, witness the fact that some of the current foreign subsidiaries do not have as much market share as expected, but that it is not clear why customers in these markets do not buy the semen of CRV, but from other companies.

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managers know a more structured and, professional policy is needed to achieve the growth, but specific knowledge and, experience is missing. For instance, one of the issues is: “We have x money to invest in foreign companies and, we have to spend this money in three years. So the task is to find interesting companies.” However if found and taken over a company, how to steer this company, how to determine the needs of the customers, how to determine why customers have those needs (thus the reason behind the needs) and, finally make the investments a sustainable success, there is no clear plan for doing that.

In terms of Cummings and Worley: “the goal is clear, but the explicit directions and guidelines with have to serve as the cornerstone for organizing activities designing jobs are incomplete and when present mostly implicit. The strength of CRV is the segmentation strategy, but more competence is needed to serve the segments in a proper way.

Because of old traditions and a shortage of knowledge international commercial business, one can see that the internal organization has difficulties with optimizing the international processes. Explicit guidelines are missing, as well as a commercial attitude. Also an overall strategy for detecting new markets, customers and maybe even more important the needs of these customers is missing.

Strategic intent

The strategic intent is a succinct label or metaphor that describes how the organization intends to achieve its’ goals and objectives. The strategic intent of CRV is operational excellence. Operational excellence is a cost leadership approach. The approach is aimed at efficient operating procedures and standardized assets. Operationally excellent companies reject variety, because it burdens the business with cost. Operational excellent companies strive for low overhead, with efficient, reengineered business processes (Treacy, Wiersema, 1997). CRV strives to deliver the best quality/price concept in its’ product segment.

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16 Management question Preliminary investigation External analysis Internal analysis Macro environment DESTEP method Meso environment Five forces (Porter) Internal environment

Open system model

TOWS analysis Relation forces;

Strategy CRV

Market orientation study Strategy analysis and

design

Problem statement Theoretical framework

DOV model

Appendix X

Research model

In this appendix the complete research model has been portrayed. On the left side one can see the research stages. The research has been started with the management question. On the basis of the management question the preliminary investigation has been executed. The preliminary investigation is executed by means of an external and internal analysis. The external analysis consist of a macro environment analysis (by means of the DESTEP method) and, the meso environment (by means of the Five forces model of Porter. The internal environment has been analyzed by means of the open system model (Cummings & Worley, 2005). Because the external environment influences the internal environment, an arrow has been drawn between these concepts.

The results of the preliminary investigation are connected and discussed in the following phase of the research. The TOWS analysis has been used to determine and correlate opportunities, threats, strengths and weaknesses. On the basis of these findings a strategy has been formulated, which can be seen as a further normative outcome of the management question.

The connection between the model (concept) “relation forces” and, market orientation study is reflected by means of a dotted arrow, to make a clear distinction between preliminary investigation and, the ‘real research’.

In the market orientation study three phases can be distinguished. First on the basis of the strategy a problem statement has been developed. Next a theoretical framework has been build up to put the research into the right context and, to define concepts. In the DOV model the concepts will be used to diagnose CRV its behavior and, to make a design by which the international activities should improve.

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17 Open minded inquiry Wide-spread information distribution Mutually informed mental models Infor-mation utilization Systematic evaluation of outcomes

Accessible memory Augmentation of memory

Data collection (scanning) Data distribution Interpret-ation Action Reflection

Appendix XI

Market driven processes for learning (Day, 1994)

In this appendix the qualities of a learning system are represented. The objective of this information is to give an idea about how to execute a learning process. Also the most common threats of successful learning have been described, because they are difficult to trace in if unknown.

Learning processes in market driven organizations are distinguished by the following stages:

Market driven organizations learn by means of collective processes, systems, procedures, routines and tacit knowledge. (Effective) learning is an ongoing process that pervades all decisions. Open minded inquiry

The open minded inquiry is based on the belief that all decisions are made from the market back. An organization should be open to trends and events what reflect opportunities from the market. In an market driven organization front-line contact people hear complaints or requests for services the firm doesn’t provide as opportunities to be communicated through the organization, rather than as nuisance calls to be avoided. Salespeople are motivated to report on customer developments and competitive moves within their territory, for they know their intelligence gathering efforts will be rewarded, and the information they supply will not disappear into a corporate “black hole” .

The open minded inquiry is often threatened by closed-mindedness, that blinds management to emerging possibilities and latent threats by narrowing the scope of the inquiry. This learning disability is often hard to detect, being masked by arrogance (“we know what the market wants because we’re out there selling to them”); complacency (“the information was good enough for my predecessor, so it’s good enough for me”) and an inward orientation that focuses attention on readily available internal measures, activities, and standards of performance.

There are five elements to open the collective “mind” to new information that can help anticipate emerging needs and more accurately forecast market responses to changes in strategy:

1. Scanning with peripheral vision. All managers scan, but mostly the information comes from familiar, readily and conveniently available sources. This gives the managers the illusion of being fully informed that may obscure important shifts in the market. Thus managers should scan without a narrowing of vision, with a peripheral vision;

2. Buying decision insurance rather than conducting market research to simply confirm decision insurance or satisfy curiosity. Sufficient market research is executed to anticipate an changes in the market (for instance inconsistent trends) or to improve quality of decisions, thus to create security for a “good” decision;

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information will be used or do not know where it should be send. Unblocking this valuable upward flow requires organizational changes that begin with a recognition of the value of this source of information. Channels for the upward flow of information need to be established and incentives need to be offered for useful insights. Information technology can play a strong supporting role.

4. Learning from others by benchmarking that goes beyond the obvious. Organizations collect information from analysis of competitors products, new sources or unusual activities from competitors. However mostly this is a indigestible load of information which cannot be translated and be answered. Therefore a clear (visible) organization wide competitors analysis should be developed which is accessible for everybody, on a central point in the organization. 5. Continuously experimenting. It is important to experiment for continuously improvements, to

eliminate mistakes and the reach new service levels. Continuously experimenting requires collective leadership and an environments which support daring making mistakes.

Widespread information distribution

The enemy of information distribution are the organizational chimneys or silos, which are responsible that information is forced to flow vertical between different functions. However to spread information organizational wide networks are necessary, standardized systems, languages, protocols, and file management procedures.

Mutually informed mental models

Mental models are used for classifying and simplifying information into coherent patterns.

Mental models secure that organization pay attention to the essences and potencies of consisting information, and precise assumptions about what is important. Mental models are influential, but often deceiving:

! Collective myopia: is especially prevalent within organizations that carefully segment their activities and keep functions separate and distinct in the belief that problems are best solved by breaking them into pieces for assignment to specialist working in isolation;

! Self-fulfilling prophesies: the use of wrong, incomplete models because of wrong (pre) assumptions;

! Foreclosed options: being stuck in the middle;

Better is to bring mental models into the open and share and spread them in the organization, learn from each other.

Accessible memory

Accessible memory/ knowledge is necessary to enable that useful lessons are stored and usable when necessary. Most important systems are: institutional policy, procedures and rules, and also information technology.

Learning to learn about markets

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Appendix XII

figure Kasper (2005)

In this appendice culture elements of a market orientated organization are described and connected. The figure should be read as follows: The rectangles represent marketing issues while the circles represent cultural topics. The figure represents the positive relationships between topics. CRV can use the topics to evaluete its own organization and improve relationships which are amenable to improvement.

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Appendix XIII

SAAP model

In this appendix the four blocks of the SAAP (Bax, 2003) model are explained. The SAAP model consist of four steps. In each step the involved people (for example HRM or managers) should evaluated the companies requirements. In the complete model all the HRM aspects important for a good (HRM) performance and consistency with strategy and environment are connected.

Block stone 1

Block Stone 2

Block Stone 3

Task Competence Characteristics

worker Strategy Technology Market Legislation, etc. Recruiting Selecting Training Judging Rewarding

Exogenous planning environment

Social-cultural Stable/hostile Institutional Simple/complex Technological Integrated/ varieted market Economical Mild/ hostil

Labour demand Labour supply

Technology Culture Structure

Mechanic _contractHard External Recruitment Selection Training Judging Rewarding Organic _contractSoft Internal

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21 Completely SAAP model

Exogenous planning environment

HR-strategy Business strategy

Labour demand Tasks Functions Roles Recruitment Selection Training Judging Rewarding Labour supply