Introduction
Much information that comes into our management hands is obtained directly or recommended by the best business schools in the world. But how can they know how we do things here? That is why this article offers a look that mixes the direct vision of a professor who has meant a lot in international management style, who must be unquestionably known and from the experience of those who have had the opportunity to be aware of the theoretical framework of the management and practice experience here in Chile.
Dr. Maital is a great academic at MIT and his thinking is relevant in the international business world. This time that I have been in Chile I have learned a lot. Therefore, I feel the need to persuade and also transfer my experience to people involved in the business world. Discussion topics are aimed at professionals from all areas oriented to use simple tools of business economics, developing strategies from a local or global perspective, to be applied to large or small companies. It is interesting to see how we try to implement knowledge that is highly resisted by our peers.
Doing a strategic analysis, aimed at knowing and internalizing the tools that we will need in the face of the coming competition. In summary, these tools are related to Costs. But, why is it important to know how to measure costs? The answer is obvious, to make the company more profitable anywhere in the world. Why does one have to know how to moderate costs and maintain added value to our clients?
And why do we have to provide the appropriate prices according to the value that we create? It is important to mention that reducing costs means being more efficient and not confusing with buying cheaper materials that only leads to poor quality. Those are our challenges. The rest is related to what is most important today, increasing our knowledge. In the world we are in there is a new concept of demand, there is a new economy, there is global competition and most important of all there is the need to open our minds to flexibility.
1. Let's start by asking ourselves Are all our processes evaluated?
We could ask ourselves the same question a thousand times and we will receive many different answers. Best of all, they generally aren't. For this reason, managers must ensure that they do so in order to deliver adequate cost - price and value to their clients (CPV). With a reasonable price, at the lowest cost and that generates an adequate profit for the owners or shareholders. But how do we create value? What is the formula that keeps us being the best? High Quality vs. Low Prices? What is the Value formula in your company or business? Is it the formula known to all managers and employees? Is it your formula (benchmark) compared to those of the competition?
It hardly is, many times we work without knowing what is the value formula that we have in our company, we can add value and neglect prices, other times we only worry about costs, without thinking about quality.
We do not invest money in improving the products and we do not look at how the competition is doing it. What we don't think is that we don't really realize that by not thinking about all these factors, all we do is harm ourselves as a whole. Therefore, it is imperative to know where we are in every aspect. Making sure we can know exactly how we are inside and how we are around us to be able to make better decisions. In developing a new product, are you adding value to customers? A TV only gives us one image. There are high resolution, flat screen, plasma etc. What comes with the TV ?, a DVD player of course.
Before it was a video cassette, but they are out of fashion or are going out of style.
What did the companies that sold each device individually, accepted the rules of the market, of supply and demand, but to add value they managed and created a TV set that included the video cassette included. (TV + VCR = Added value)
This met the needs of the clients, low price, more convenient, had fewer connections, more technology, had 4 heads instead of 2, much more comfortable and more practical. That reflects the perfect formula. There is a balance in Costs - Price and Value. Albert Einstein said simplify as much as you can and everything will be easier. To have the perfect balance, we must keep asking ourselves: What type of business am I in? What are the needs of my clients and how are they changing? How well are my products compared to the competition? services with the needs of my clients? How much do they create value? What is the fair price that I must command? If I set the prices too high, what will happen to my sales? o What will happen if I put them too low?What is my profitability ?, 3%, 19% or 43%. We really must think that if we get a return of 3%, the best thing I can do is close the business and put my money in a savings book or better still in a mutual fund. The profitability is the same and it is safer. What is the lowest cost that I can produce that value to have a perfect balance and have an adequate profitability? You have to look at the
future, we must think about what we are going to be selling in 5 years.
Studies (Maital, S. 1997) show that 90% of all new products are variations of existing ones. Only 10% are truly new products that generate 25% of corporate profits. For that reason, we must know what the Cost - Price
- Value (CPV) of our products and services of our business to be able to generate the best value for customers, have new products and with adequate prices.
2. A second step is to discover what to do to reveal all the costs involved to improve the company's performance.
We will continue to pass on hidden costs without realizing how much the income statements affect. Have we managed to quantify the hidden costs? Or better yet, have we discovered them? Do we really know what they are? Have we brought them to the surface? What are they? SMEs are generally more affected by hidden costs, but here we will see that large companies also have the same problem.
Absenteeism, staff turnover, work accidents, low quality, low productivity, overtime wages, inadequate storage, etc. are some of the hidden costs that we can mention. Have we audited our business to know where they are and to be able to quantify them? Once this is done, have we taken the necessary measures to eliminate the hidden costs? Is there someone who is responsible for them? For example, have we calculated how much it costs to have merchandise in stock in a warehouse, compared to receiving it with a Just in Time (JIT) system like the Japanese?
What happens if you do not consider the costs of sending a product with damage? Do I consider all phone calls to solve the problem? Do I consider sending by express mail? Did you consider the new tax that you had to add for the sale of your air ticket? The client is going to be upset if you tell him one price and when he is going to pay we tell him another. They do not forgive, or we take responsibility for the error or it is one less client that we have. Can we afford those hidden costs? Are we clear what our variable prices are? What are our fixed prices? Have we sharpened the aim well and have we included the hidden costs in them? In large companies, the manager has to see if the interests were considered or not as cost of capital (bank debt) in prices.We must then assign someone to be responsible for all costs including hidden costs.
3. In life, especially in social aspects and which are related to charity, they express a feeling that says “that we have to give until it hurts” to those most in need
Business reality shows us that it is difficult to reach that premise. For this reason, economists instead ask ourselves two basic questions: What am I going to gain? And what am I going to have to give up or sacrifice? in exchange for something.
So we use the term of Exchanges or Trade-offs to refer to "giving until it hurts". That is, "the pain we must pay to win or lose" or pain v / s gain. This topic is easy to explain, let's see how we would do it. On the one hand, if you earn more (benefits) than you have to give up and it hurts. Is that good or bad? Obviously, it's very good. On the other hand, of course if you have to give up more things that hurt than you win, how do you feel. Is that good or bad? Is it really bad? Definitely bad!
Then the formula is transformed into cost / Trade-offs. It is like when we go to a restaurant and order something from a menu, maybe you want something that is very expensive compared to something that is very cheap. What you will eat will only depend on how much you are willing to pay and how much it will hurt to pay for that exquisite dish that tells you to eat me. It can also be illustrated by signing the Free Trade Agreement (FTA) with the United States. Let's talk about the size of the US economy compared to that of Chile. Who wins and benefits the most from entering the FTA, Chile or the US? The answer is obvious. So we should look at our operations and ask ourselves the following questions. Am I making full use of my resources in technology? Can I make several products using the same amount of resources and technology?How many years will it take us to do it? What will happen when the market demand increases? The market and the decisions will dictate that more is produced or less is produced. The frontier of efficiency (FE) will tell us that we are more efficient. In other words, the Trade-off decision is going to be dictated by the efficiency frontier.
Some companies will face such a level of competition that they will have to go through restructuring (reengineering, etc.) of reducing or expanding the company. The Efficiency Frontier is the allocation of efficiency v / s the efficiency of excellence. Then one wonders how so many organizations have operated so inefficiently and for so long. With so much lack of investments in Information and technology. Others will see that where there is a lot of redundancy of labor, machines and technology will replace them. For example: for Toyota that just changed its slogan from "Everything keeps going right" to "Lead the way", that is the value or motivation that they have added to their products, everyone knows it, all suppliers, all workers, all the direction, all pursue the idea of leadership.For Ford Motor Co., it is "Job quality is Number 1", for General Electric it is "We bring good things to life".
That is to say, that finally the investment they make in quality (pain) cannot exceed the value of customers (gain). What entrepreneurs must do to transform their company into an organization that works based on the frontier of efficiency. In other words, full efficiency in the use of resources. Making pain v / s gain decisions and always asking ourselves what I gain from making more "x" products and what do I lose from making "y" products. If we clearly manage our trade-off points and we can quantify our pains v / s gains in each case, we will definitely be able to justify our decisions and we will be sure that we will know how to face them. Can we win without it hurting? How can we improve efficiency? That is our challenge.
4. For the optimization of resources, economists generally use cost functions to know what our costs are and how much it will cost us to make an extra unit. In other words, we economists ask other types of questions to find out basic indicators in the production of goods or services.
This leads us to recommend managers to ask the following: Do we know how our costs have changed when output changes? Do we know how much it costs to make an additional unit? Have we quantified our marginal cost? Have you calculated its marginal cost? Do I calculate your fixed costs v / s variables? How exactly can you divide all the items? Once this is done, could we make a balance between the fixed costs (independent of the production level) v / s variables (directly related to the production level) with the marginal costs (cost of the last unit produced) v / s average costs (total cost / number of units produced) ?. If the market becomes more competitive, prices will go down and how do we make our managers lower the marginal cost to continue competing?Can we reduce our storage costs? Or can we reduce dead and non-moving stock? Can we reduce redundant lines or products? The higher the production costs decrease, but there is an equilibrium, after that equilibrium point, making an extra unit costs additional money.
5. Employees / knowledge / technology (People / knowledge / Machines) are important resources of the company. But people are the most important asset of all
They are important because it is they who create value. Therefore, our mission is to encourage everyone to have the freedom to innovate and succeed. But before that, we know how productive people are, how can we develop or train people as a key asset of the company? First we have to see how productive they are, and how we calculate it. If we know that an employee sells US $ 100,000 a year, how much are we willing to pay him for what he brings to our business? If we know that labor in Germany costs approximately US $ 25.00 an hour, in Japan US $ 17.00, in the US $ 16.00, in Singapore US $ 5.00, in Mexico US $ 2.50 and in Chile US $ 1.27. What can we expect? Seeing the differences in wages, what do you think can happen? Do you think you can be as productive as a German employee?
Look at the Standard for employers, "reduce wages and increase productivity." In other words, in Germany they pay an employee $ 25.00 an hour and in Chile they pay a little more than $ 1.00. How do we think this is going to affect us, in terms of productivity? How do we overcome this problem? The first thing to do is increase productivity. But since we do it by adding people with knowledge and machines, these are our challenges. Productivity increases by being more efficient, faster, with fewer people and with better wages. This is something that cannot be reversed. The more open the economy, the more technology enters the country, this is what happens. You have to invest in technology first, train the employee,But the most important thing is to change the mindset of entrepreneurs to make small changes that benefit the company's resources. At every important point in human history there is a key resource at stake. In the Middle Ages the most important resource was land, during the industrial revolution "the machines" (physical capital) were the most
important, then it became financial capital and today it is knowledge and the future is imagination (Werther, W. 1997). Knowledge is the key (Maital, S. 1997), Why do countries have a competitive advantage over others? Countries have a unique and exclusive advantage because they have a lot of knowledge. Why do countries grow faster than others? They do so thanks to everyone's willingness to invest in the new worker. Employees will be with me while they create value for my company, he will have the right to demand resources, training, training to do a good job.
In practice, managing knowledge is more difficult than managing machines. Therefore, the importance of making the difference between people, knowledge and machines is of utmost importance. That is, we return to the economic momentum, knowing how to measure where our resources are in labor, capital, resources and technological information are our responsibility. Without that information, it is very difficult to make important and effective decisions.
So we can ask ourselves again: Are our resources being highly productive and cost effective? Are they relatively being used according to what you paid for them? Are you paying more than they really are or are they worth? the correct mix between human assets, knowledge and machinery? And finally, you can ask: can one be substituted for the other?
6. How can we be effective in saving costs by expanding our volume (Scale) of operations, creating value at the same time and even more importantly, expanding the variety (Scope) of products
Why not ask at the same time if we can effectively do both and at the same time? Can you massively tailor your products or services? Can you tailor your products and according to the customer needs? Can you do it without exceeding costs? And still, can you reach mass markets? Because we are concerned about this. Have you heard of globalization? Globalization is not a new topic, it has had recesses due to wars or natural catastrophes and yet even against the attack on the Twin Towers, the process did not stop. That is, we have to be prepared for everything. Especially with the recently signed Free Trade Agreements (FTA). The first thing that will happen is that cheaper and better products will arrive.How do we make ours more competitive? Also, transnational companies will arrive. How do entrepreneurs make their companies attractive so that those who come do not take their assets (people)? They will offer better conditions and take away all the know-how. That means that we are going to do better, so why compete only here if we can do it in other markets too? or better yet on both sides. Imagine a great company like ENAEX from the Sigdo Koppers (SK) group. This is an industrial explosives company. ! One of the best ! in the heading and the most important of the SK group. Imagine what would have happened if they had opened offices in Africa, Canada, China, or other countries where the big mining industries are.If they had done so, they would already be a global company of tremendous proportions, but I did not take the opportunity. Imagine, what awaits that company from one moment to the next?
Especially now that it's in the bag. The usual M & As operation, or takeover of a large company that will buy it, to grab the market and liquidate it. Use your business channels to the maximum to introduce your own.
Here in this matter all you are going to see is who wins who ?. Those times when people were resting on their "It`s over" laurels, are over! What should we do?. The business world is changing, we have to achieve Mass Customization operations.
We have to have the ability to mass produce and to order. Who do it? Dell is the best example.
You can order a notebook with the exact specifications of how you want it. 100 GB of memory, DVD reader and writer, centrino speed and you can order everything in your pocket. There are many examples of companies that do things to order. When you buy a car, perhaps you don't like the interior tapestry, or the radio you buy wants it in a different color or the bicycle wants it with other types of rough, the bed wants it round, and the pants the exact length. There are many examples that can be given, but the important thing is to understand that today's information is massive. People in China, the USA, Europe, Africa, the Middle East and in all parts of the world, can see our products and services on the website of our company, university, newspaper, any type of business and even the personal web page.He doesn't sit around waiting and selling the usual. Find a way to benefit from all this. Otherwise I assure you that you will be harmed. People say "how bad the economy is, don't you think?", "That this is bad" and "that the other". Pure excuses to justify the unjustifiable. Good managers grow companies, bad managers shrink them. Einstein said, if you don't want to change things, how do you expect better results? We have to find ways to do things according to the needs of our clients. If we don't, the competition will be doing it for you.Pure excuses to justify the unjustifiable. Good managers grow companies, bad managers shrink them. Einstein said, if you don't want to change things, how do you expect better results? We have to find ways to do things according to the needs of our clients. If we don't, the competition will be doing it for you.Pure excuses to justify the unjustifiable. Good managers grow companies, bad managers shrink them. Einstein said, if you don't want to change things, how do you expect better results? We have to find ways to do things according to the needs of our clients. If we don't, the competition will be doing it for you.
Mass customization is not creating a wide variety of products to have large inventories under our belt. On the contrary, it is to create products made especially for you and according to your needs, incredible! Color, size, exact measurements, a unique product that only you know why. If only you thought about what people in developed countries are willing to pay to have something specially made for you. It is simply unusual. People pay up to $ 10,000 for a dress, as long as they don't meet someone with the dress at a party. Mass customization reflects understanding the psychology of the market, customer needs, and most importantly how to use technology. In other words, large or small companies are producing unique products on a massive scale,creating value for the company and customers.
7. Supposedly every time we do a thing, we learn to do it better
In other words, every time we make a mistake, we correct it. In other words, each time more products are made, costs are reduced because it is done in less time, more efficiently, and with fewer errors. This is called the Learning Curve. By reducing costs Can you with the learning curve expand to new markets? And how fast can you lower your prices? But what generally happens to most companies? and in this you have to be very careful. Because when a company tries to go faster, the first thing it does is to hire more people and that is the first mistake they make, new people have no experience and make the process go backwards.
So what we have to do is ask ourselves: Have we created a learning company? Have you managed to reduce your costs because your staff is able to make products better, more efficient, faster and smarter? Or are we one of those who buy cheap products to reduce costs? If we are one of those we are going to lose in the long run. Learning curves make companies very vulnerable to innovation. The best example of this is the case of Ford Motor Co. Once having mastered online production, Ford said we have a Model - T and black, with this we will reach everyone. But what happened? Another company in the automotive industry could make the same cars but in different colors. No matter what had to happen, people wanted to be different and started buying anything but Ford.It took Ford Co. a long time to regain leadership.
But learning curves don't happen because they do happen because there are talented managers who realize they have to worry about seeing what they have learned and improve past experiences. So we must worry about knowing if costs are reduced and if our knowledge and experience increases.
8. The essence of management is knowing how to listen, how can we know how to listen to the voice of our clients?
That is our biggest challenge. Because if you do it like this, you will not hear anything! Because they are silent, the only way to listen to them is to analyze information. Listening to them will depend on how we analyze demand information, it will depend on how we analyze competitive forces. But how do we measure success or failure by adding value? How do we create or create successful products and services? The forces of demand among them are: cost and price, demographic information, elasticity, habits, income, price sensitivity, etc. The US is the largest market on the planet, the most demanding and the most competitive.Large companies have had to see how the forces of the demand act against their products and they have had to adapt their strategic policies to do business in it. Marlboro uses its marketing strategies as brand management. Who does not know Marlboro ?. When products are transformed more and more into commodities, competition is only governed by price. When we come to price maximization, a small change in prices means a big cut in profit. In other words, the only way to save the situation is by creating brand loyalty, just like Marlboro does. In the markets and in the demand for products, we must avoid price sensitivity as much as possible. Managers must know how important prices are to our clients and how sensitive they are to changes.Marlboro uses its marketing strategies as brand management. Who does not know Marlboro ?. When products are transformed more and more into commodities, competition is only governed by price. When we come to price maximization, a small change in prices means a big cut in profit. In other words, the only way to save the situation is by creating brand loyalty, just like Marlboro does. In the markets and in the demand for products, we must avoid price sensitivity as much as possible. Managers must know how important prices are to our clients and how sensitive they are to changes.Marlboro uses its marketing strategies as brand management. Who does not know Marlboro ?. When products are transformed more and more into commodities, competition is only governed by price. When we come to price maximization, a small change in prices means a big cut in profit. In other words, the only way to save the situation is by creating brand loyalty, just like Marlboro does. In the markets and in the demand for products, we must avoid price sensitivity as much as possible. Managers must know how important prices are to our clients and how sensitive they are to changes.When we come to price maximization, a small change in prices means a big cut in profit. In other words, the only way to save the situation is by creating brand loyalty, just like Marlboro does. In the markets and in the demand for products, we must avoid price sensitivity as much as possible. Managers must know how important prices are to our clients and how sensitive they are to changes.When we come to price maximization, a small change in prices means a big cut in profit. In other words, the only way to save the situation is by creating brand loyalty, just like Marlboro does. In the markets and in the demand for products, we must avoid price sensitivity as much as possible. Managers must know how important prices are to our clients and how sensitive they are to changes.
We know that if we lower prices, we sell more and if we raise them less. So why did we upload them? If we do not know how the competition is doing it, we will not know if our prices are very high or very low. The consumer buys features of products and services and we have to understand what are the most valuable attributes to our customers and put the features in a single package in order to understand the needs of our customers. So it is better to start asking ourselves: Do we know the price sensitivity of the demand for our products and particularly that of the competition?
This is pure Marketing work and if there is no such department, it is the responsibility of sales and if there is none of the above, it is the sole responsibility of the owner.
9. Another important factor to consider is calculating risk. Have you thought about this? We know that the higher the risk, the higher the return and the lower the risk, the lower the return. Basic finances. But do we know all of our financial alternatives?
As I mentioned before, if I have a company that rents at 3%, I better put my money in a savings account or mutual funds. It is safer and less risky than having a company or a Strategic Business Unit (SBU) that gives me that of profitability. Obviously, if we don't do an analysis we will be making decisions under uncertainty. In other words, we are going to a resounding failure. In other words, it is much better that we make decisions under the premise of Calculated Risk, what is this?
Precisely that, calculate the risk and put a number to know how much risk we are willing to take. It is like in the case of trade-offs or exchanges, pains vs gains and their questions. Here we return to the same thing, we have to ask ourselves: What am I going to earn? And what are the chances that I will achieve it? When buying stocks, the first thing they explain to us is profitability. Very attractive can win a lot and also lose everything, so before buying, demand that they show you the probabilities of the risk and the expected return. There at that point you will be calculating your risk and at that precise moment you will be able to know your probabilities of winning or losing money. The world is uncertain. How do you hope to project yourself into the future?
The more uncertain the world becomes, the more important it becomes to use quantitative tools in all aspects. We have to use predictive models through Business Intelligence (BI). It is not an unattainable issue and it cannot be implemented.
The most important thing is to see the market signals, if we know that the "500 fortune companies" use it and are successful, why don't we do it?
We have to project ourselves and we have to know where we are going to be in 1 or 2 years, 7 and 10 years exactly. Otherwise we cannot implement long-term strategic plans.
What are we going to need in a longer time? We must know who are our best clients? Suppliers? What is critical? What should we be aware of?
The greater the degree of uncertainty, the greater the need to measure our risk. After this, if you want to continue without measuring the risk, you will have a hard time. What you cannot measure you cannot manage (Maital, 97).
Don't forget sooner or later you are going to have to justify risk decisions to someone, the owners of the company, management, senior management or the family for saying something.
10. In which scenario do we work best? Competing with each other, essentially pure Darwinism, in which only the best survive and the weakest lag behind, or we learn the lessons of the past and try to collaborate through competition. In economics, competition is the engine of everything. On the one hand, Maital argues that it is not only competition but also competing with collaboration
In his argument Maital explains that Darwin spoke of the survival of the species by natural selection. Species compete for scarce resources in hostile environments and only the best survive and reproduce. Pure "law of the jungle" and on the other, Maital argues that if we see companies they also compete for scarce resources (market share) in hostile environments and only the best survive and prosper. Pure free market economy. Regardless of the result of this analysis for Maital, this is not so and explains that if people do not collaborate, how can agreements be reached with their employees and suppliers in the processes to do things better. Look at why the strategic alliances. What do we get by doing the 3 typical quotes, if in the end,the acquisitions manager will privilege the one who decides to give you the purchase, and if you are looking for the cheapest price, you believe that the one who sells you will be concerned about your service or how the product came out after the purchase. It is a single sale you will never hear from them again.
But what if you made a strategic alliance with a "professional" company to ensure that they are going to sell you a good product and at a competitive price in the market.
Additionally, they will be concerned about their sales and their products over time. That is why you have to build long-term relationships and make a contract with a company that ensures the best price and the best after-sales service, with the condition or clause that you can see three times a year if there is a company in the market that offers you a better price and service. All the entrepreneurs who have implemented it have seen the results. If your company offers you a safe long-term purchase and not a spontaneous purchase. Your provider will feel obliged not to lose that account and both will take care of each other. Another issue to consider is price management. When do you have the best success? When do you cooperate with the competition in terms of prices? o When is a price war reached?The only thing a price war is able to do is not benefit the consumers who are paying less than the price of the competition, they are momentarily happy but in the long run they do not realize that the companies that are competing with the prices are the only thing they are achieving is harming themselves.
Because there comes a point that they sell their products at low production costs and the company works at a loss. The only success that it has is that they are going to have to close the company because in the end, there is no company that can sustain itself in the long term by working that way, selling under production costs and in the end no one is left with anything, everyone loses. See how Coca-cola and Pepsi work, they figured out too soon. So collaborating with the competition helps you create the value you need for your products and you can understand the needs of consumers. This type of analysis shows us that companies are not like animals, they have to seek common sense and function as an orchestra. "They are part of a whole." It is important to understand that we all have a better performance collaborating.In other words, the responsibility of management is just that, knowing how to orchestrate the complexity of factors to reach a common goal that benefits all of us. I win and you win, it is better to share and collaborate, we are both going to win more together than alone.
Finally I remind you that at the end of everything there is a market for everyone.
conclusion
In the Global Economy, everyone competes with everyone, we need more effective tools to compete with real advantage. Shareholders or owners, demand a better return on their Capital Investments and in the new general aspect, it is necessary to know more than in the past, today one has to incorporate the vision of Finance, Marketing (Sales), Operations and Technological Information. (IT), Legal Affairs, Human Capital Resources and most importantly Business Intelligence. This is because the range of decisions is broader and riskier. Therefore, the problems of innovation, technology, logistics, distribution, Customer Relationship Management (CRM), Research, development and innovation (R + D + i) are essential to be able to focus on strategic issues and to be able to give more guidance and direction. efficient to the company.Companies, academics, trainers and most important of all, executives will have to understand that the only way to be successful in business is to do things more efficiently to reduce costs and be able to compete with new markets. We all need to understand that living in a cost-cutting way leads nowhere. We must plan and analyze all the information to grow the company and not reduce it, in other words, the budget for the next year must be larger in order to invest in everything that is needed to give incentives for innovation, invest in technology, training and of course invest in the most important capital of the company: its people.Trainers and most important of all, executives will have to understand that the only way to be successful in business is to do things more efficiently to reduce costs and be able to compete with new markets. We all need to understand that living in a cost-cutting way leads nowhere. We must plan and analyze all the information to grow the company and not reduce it, in other words, the budget for the next year must be larger in order to invest in everything that is needed to give incentives for innovation, invest in technology, training and of course invest in the most important capital of the company: its people.Trainers and most important of all, executives will have to understand that the only way to be successful in business is to do things more efficiently to reduce costs and be able to compete with new markets. We all need to understand that living in a cost-cutting way leads nowhere. We must plan and analyze all the information to grow the company and not reduce it, in other words, the budget for the next year must be larger in order to invest in everything that is needed to give incentives for innovation, invest in technology, training and of course invest in the most important capital of the company: its people.We all need to understand that living in a cost-cutting way leads nowhere. We must plan and analyze all the information to grow the company and not reduce it, in other words, the budget for the next year must be larger in order to invest in everything that is needed to give incentives for innovation, invest in technology, training and of course invest in the most important capital of the company: its people.We all need to understand that living in a cost-cutting way leads nowhere. We must plan and analyze all the information to grow the company and not reduce it, in other words, the budget for the next year must be larger in order to invest in everything that is needed to give incentives for innovation, invest in technology, training and of course invest in the most important capital of the company: its people.training and of course invest in the most important capital of the company: its people.training and of course invest in the most important capital of the company: its people.
References:
- Maital Shlomo, Managerial Economics, Class notesMaital Shlomo, Executive Economics, Ten Essential Tools for Managers, Free Press 1994W. Edwards Deming, Quality Productivity, and Competitive Position (MIT, Cambridge, Mass: Center for Advance Engineering Study,) 1982, pp. 16-17. Gross Robert & Kujawa Duane, International Business: Theory and Managerial Applications, Third Edition Robert M. Grant, Contemporary Strategy Analysis, Concept, Techniques, Applications, 2nd Ed. Sanford Ehrlich, San Diego State University, UGM, Course Leadership Class notesKauzes, James M. & Posner, Barry Z., The Leadership Challenge: How to Get Extraordinary Things Done in Organizations, San Francisco: Jossey-Bass Publishers, 1995 William B. Werther, University of Miami, Human Resources Class notes David M Scheder and Charles Goldwasser,Leader of Change Harvard DEUSTO Business Review.
