Our obsession – building scale

Businesses all over the world are obsessed with achieving market leadership, building scale to achieve economies of scale and last but not the least, consistently clocking high growth rate. However, the obsession of businesses with the above objectives invariably lands them in trouble. Why? Primarily because they have not only misunderstood the concepts behind these objectives but have also misunderstood how these objectives should be achieved. As such, I feel that there is a strong need to clarify what our obsessions mean so that we can avoid the pitfalls and run our businesses successfully. Today, I will discuss our obsession with building scale.

New issue of Management Talk

Guys I am happy to inform you that the 2nd issue of my management magazine Management Talk titled “Theory of PipelIne-Achieving Consistent Higher Sales” has been released today. It contains the following articles:

What Honda does not understand Maruti does!

I think anybody who has had a premature failure of the clutch of his car has heard the excuse that all car manufacturers give immediately, that is, they tell you that the fault is yours because you have been overriding the clutch. They have now added another excuse, that is, the bumper to bumper driving conditions in the city you live in. Honda gave me these excuses when my Honda car’s clutch and flywheel failed at 30,000 km and just a few days back Maruti dealer gave me the same excuse also when my Swift car’s clutch failed at 20,000 km. Some of you who had responded to my blog had also complained of Honda’s clutch problem.

Our obsession – Market leadership

Businesses all over the world are obsessed with achieving market leadership, building scale to achieve economies of scale and last but not the least, consistently clocking high growth rate. However, the obsession of businesses with the above objectives invariably lands them in trouble. Why? Primarily because they have not only misunderstood the concepts behind these objectives but also how these objectives should be achieved. As such, I feel that there is a strong need to clarify what our obsessions mean so that we can avoid the pitfalls and run our businesses successfully. I will discuss each of the obsessions one by one. First, let us deal with our obsession of achieving market leadership.

Core competence concept-Ideal for small businesses

One of my strong beliefs is that practically all management concepts can be applied in small as well as large businesses. Usually, it so happens that while introducing new concepts, management gurus think of large businesses only. For instance, CK Prahalad’s book on his concept of Core Competence is complex and not easy to understand. I am not ashamed of admitting that I also had a difficult time understanding the concept and I am not sure that I have understood all that CK Prahalad had to say. Even a journalist working with the leading business daily in India, Economic Times, was not clear as to what Core Competence meant.

Enhance your understanding of management concepts

I have some good news to tell you guys.

I told you so. We have been made Idiots by 3 Idiots.

In my first post on the subject, I had stated with reasons that we are being taken for a ride by Chetan Bhagat and maybe by the 3 Idiots team. Just yesterday I had written at about 6 in the morning that I hope I do not see Chetan’s face early in the morning but he again turned up like a bad penny on the front page of HT City. Chetan Bhagat has apologised to the producers of 3 Idiots, shown love and respect for Aamir Khan, made Idiots out of the general public and made the media dance to its tune like Idiots.

Chetan Bhagat lies. Makes everyone idiots.

I didn’t know yesterday that the producer of 3 Idiots, Vidhu Vinod Chopra(VVC), had put the contract with Chetan Bhagat on their website. This is exactly what I had suggested yesterday. All this media hoopla of who said what was just a gimmick if not on part of both the parties but certainly on the part of Chetan Bhagat. The contract clearly states that whatever VVC and Aamir have been saying. It clearly indicates that Chetan Bhagat was lying. Also, it seems that Times of India (TOI) people have made the effort to read the book and have stated that according to them whatever VVC have said is correct. I think their article headline should have been, “Chetan Bhagat is a liar” but we know that newspapers like TOI like to be in the good books of celebreties.

Chetan Bhagat just wants more money

It seems that I can’t get rid of Chetan Bhagat’s face. Every morning I open the newspaper, his face pops up with some comment or the other. Now I know why Chetan is doing what he is doing. He had agreed to a stupid deal. Just Rs. 11 lakhs for a movie deal. I am sure that if he accepted such a measily amount for the movie deal, he would not have worried about where they placed his name. He has now realized his stupid mistake. After all how can you blame him. 3 idiots has grossed over Rs. 100 crores. You can’t blame him for being greedy.

Are the 3 idiots making idiots out of us?

Well, I think they are. Not only that they are laughing all the way to the bank by making us idiots. Who am I talking about? Of course, the producers of the movie 3 idiots, actor Aamir Khan and of course Chetan Bhagat.