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 When everything is added and taken away
- What do you need those stars for, the Little Prince asked the businessman. - To be rich, he answered. - And why do you want to be rich? - To buy more stars. - And what will you do with them? - I'll put them in the bank? - What does that mean? - That means that the I can write down the number of stars I have on a piece of paper and then place that piece of paper in a drawer. Is your business motto to "make as much money as quickly as possible, accumulate profit, and place it in a bank"? Of course, all companies strive to run profitably. Growth and development implies achieving profits, however, what happens when achieving profits becomes the only goal? Many companies, in the name of "profitability", "productivity", "competitiveness", irrationally exploit natural resources, use questionable raw materials in production in order to "save", spray and genetically modify crops, take advantage of the work force, cheat buyers, blackmail suppliers... They operate under the principle - squeeze out as much as possible, and give as little. They complacently rub their hands and live in the delusion that this kind of business philosophy will provide them with a bright future and ensure long-term profitability. Maybe such a business strategy will bring significant revenues, however, this will only be short-term because customers, clients, business partners and all others can be deceived only for a short time. Just think of the consequences to Nike when it was uncovered that it used children as cheap labor to work in its factories, how the Enron story ended, or bear in mind the Exxon Valdez case and the billions of dollars that Exxon had to pay to clean up "the mess" it left behind. Many companies learned from their own example that it would have been much cheaper and cost effective to have run business a little differently. More than profits The paradox lies in that the less emphasis you place on profit, the more of it you will have. Experience shows that the most successful and richest individuals and companies are usually those in which earnings were never the only objective of their activities. "When I started my airline company, I didn't get into it to earn a great deal of money, but because I wanted to create, after a series of bad experiences with other airline companies, a company me and my friends would like to fly with." - said Richard Branson, owner of Virgin, recently in the magazine Fast Company. Today, in Virgin airplanes you have bars, manicure services and a total of 700 massagers, who will very gladly make your flight more comfortable. Did Branson achieve less profit because of these "extra" conveniences? Well, let's just say that Branson is a multi-billionaire and that Virgin is a "business" with about 10 billions dollars of annual revenue. Ford too believed that his company could be more than just a profit-making machine. He gave his workers salaries that were much higher than the average at the time, he rewarded his customers with yearly discounts on automobiles, and he supposedly even said that reasonable profit is all right, but that excessive profit isn't. He even went so far with his philosophy that he ended up in court because of it in a case that became known by the name "Dodge Against Ford". Namely, in 1906, John and Horace Dodge helped Ford found a company. 10 years later the Dodge brothers intended on launching their own automobile company and they planed on financing its establishment with dividends of their stock in Ford. However, Ford's decision to cancel dividends and to redirect that money to buyers in the form of another drop in price stopped the brothers. They sued Ford and the court came to a verdict in their favor. The disgusted Ford then said in front of the entire courtroom that "business is a service, not a bonanza". Who loses and who gains? The road towards real success begins only when we realize that no one needs to lose for us to win. Actually, it all functions in such a way that when others gain, you gain as well. When others lose, you lose as well. Give your employees minimum salaries, you'll get minimum efforts, resulting in minimum performance. Give your customers poor service, offer them low quality products and the outcome will be that very few of them will return. Companies that don't give their customers, employees, suppliers, business partners. not even a millimeter more that what they must are very quickly left with no one! Archive  Relationship marketingThe New CompetitivenessWhat is the use of a brand?Logo |
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