Quote:
Originally Posted by xelasnave
Folk at the top of an organisation often think they know "everything" and as such present a view as if they were God and their infalibility is greater than his.
So often folk at the top "call the market" not apparently from research but from mere opinion...
But imagine the pressure on management... they have a meeting on this or that and those who attend must present an idea that says they deserve to be in management... given that idea is behind management proposals become straw grabbing episodes.
Consider a MacDonalds management meeting... what can you do...the market says Maccas exsist because they deliver a burger and a shake when you step and ask at the counter for same... well look at macas these days..you can not do that anymore and the simplicity of their business is now extremly complex... someone has determined the old system needed fixing so now many macas have a order taker walking down the line of folk waiting...who under their old system would not be lining up...to take the order radio it back so they may be able to do it like they once did.
This situation comes from not preparing the burgers and having them ready...some fool manager convinced the other managers that his new system was better... no doubt he idea gets up because he can sell it to the other managers present ..whoever... but any fool would that the burgers are still "prepared" they now just sit in "draws" and are not assembled until the order is received... no fresher no flasher but with more effort and convelution to produce a very simple result.
Management overlooks the core desire of the macas client that got them started... burger fries and shake immediately... that system guarantees profit... but they try for other parts of the market and as a result macas now have a range that is outside what their market clearly demanded and rewarded their system.
I doubt if the car industry is different... each manager has to have an idea or why have him...so when he presents his drink holder in the new model idea sure it is well received by the other managers cause it is sold well to them... but a drink holder may only be relevant and a good idea to the group assembled... the core of the market simple demands a "good" economical, reliable nice looking car... but drink holders and other "ideas" cost time and money...and so the price goes up, the ease of production becomes more complex and so the prroduct drifts away from the core of market focus...in my humble opinion.
I often wonder how well a car would sell if it was cheap and the must haves are not there..
My VW did not have a fuel gauge it was so basic...but it ran well, did the job and was excellent transport... had no where to put a drink but got me to where I was going.
The aspect of selling add ons after the main car sale is seen as an area of high profitability and so they pursue this aspect but it is faulse economy..for they forget they are selling cars not goodies...and this aspect of car marketing has a great deal to do with why the us makers are in the poo..in my humble opinion... new features often dont just come with the car..as is the case more often with Japanese manufactures... but are there to work this aspect in approach to marketing...
So we get in many businesses a desire to take more and create "new" markets to increase turnover but one must remeber there is a profitable level and often seeking to extend turnover decreases profitability and in time viability.
alex
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In the beginning, there was the Plan.
And then came the Assumptions.
And the Assumptions were without form,
And the Plan was without substance.
And darkness was upon the face of the Workers and they spake among themselves saying, "It's a crock of s**t, and it stinks."
And the Workers went unto their Supervisors and said, "It is a pail of dung, and we cannot live with the smell."
And the Supervisors went unto their Managers saying, "It is a container of excrement, and it is very strong, such that none may abide by it."
And the Managers went unto their Directors saying, "It is a vessel of fertilizer, and none may abide it's strength."
And the Directors spoke among themselves, saying to one another, "It contains that which aids plant growth, and it is very strong."
And the Directors went to the Vice Presidents saying unto them, "It promotes growth, and it is very powerful."
And the Vice Presidents went to the President saying unto him, "This new plan will actively promote growth, and vigor of the company with very powerful effects."
And the President looked upon the Plan, and said that it was good,
And the Plan became Policy.
And this is how s**t happens.
Bill