by Bert Shlensky | Aug 25, 2015 | Marketing
And remember,
Ceteris Paribus
Every economics course – at least the good ones – will cover the idea of “ceteris paribus,” and its meaning: “all things being equal.” While it’s central to every economics program, the term is taught early in the class, and then forgotten as the semester goes on, and unfortunately when the student becomes a business owner.
But it is essential that is remembered in business, and especially in decision-making. In everyday language, ceteris paribus translates into “every business plan or analysis assumes certain assumptions that must be valid for the analysis to be useful.” (more…)
by Bert Shlensky | Aug 7, 2015 | Marketing
The hottest marketing idea in the news was the recent Amazon PRIME sale, where, for a day, prices were dramatically lowered for new and existing PRIME members. Advertised as “Better than Black Friday,” this was simply an online version of the “one-day” sale that your local department store would hold now and then; it’s been around for years. However, it’s hot, because it is perceived as being “new,” but also for showing a 200-300% increase in sales and generating a lot of new traffic for internet retailers.
In contrast to that, I have had small business and startup clients ignore the notion of a “discounted price” and “competitiveness” as critical factors in operating their business. For example: (more…)
by Bert Shlensky | Jul 10, 2015 | Planning Templates
Business culture: know about it, and just as important, don’t underestimate its importance
I read an interesting article in Harvard Business Review (Pisano; June 2015) about the need for better strategies in executing innovation in organizations. While the article has some great recommendations, it ignores one critical element of innovation: the importance of a business culture that nurtures the creative environment.
Here’s one way I could explain “business culture.” And, forgive me; I do like to use the “shipping” metaphor. So, let’s pretend that Ship A and Ship B have been given the assignment to go find a new route to some new place that will bring in lots of money. Ship A is run by a captain that seeks perfection, that likes to follow the path that other ships have taken before, and will not think about the point when his crew has reached the “fork in the sea,” and has to tell the guy who steers the ship which way to turn. Throughout this voyage, he has taken the safe route, has not considered the idea that taking a new route entirely may be the best way to go. He may either doubt his ability to lead in some way, or does not have the ability to think outside the box. I’m not feeling too good about Ship A’s chances. (more…)
by Bert Shlensky | Jun 4, 2015 | Operations
We make numerous decisions every day like what to wear, what to eat, and what form of advertising should our business pursue?
We even make a decision to defer a decision, or we decide to procrastinate.
We spend too little time on the how and the why of our decision-making, decisions that deeply affect the outcome of our business. (more…)
