Destructive Improvement - Lack of Managerial Economics

Such a topic I came across and I believe its so serious topic and wanted to be discussed due to the recent economical situation that this world is going through . especially for the CEOs and the Strategists who thinks that they do a good job in driving the company profitability . Guess what , you aren't .

As for you who leads a business. Whilst you think that the company is doing great in revenues with a high markup in profits; a little change in the market economy destroys all the past efforts and “obviously” you start thinking about cutting some costs , laying off people and shutdown some units . Guess what , your strategy just made you lose a lot more money which I estimate 5X . Laying off your loyal employees “Assets: who spent a lots of time and efforts in sustaining the operations and driving your profitability vision and by the time the economical situation changes ; you just start CUTTING COSTS without taking a step back to see the overall picture .

My recommendation to all business leaders and heads, Start Learning Economics . contains a great tools to design and plan your organization strategy . Supply and demand , your product price elasticity and marginal analysis , market factors “drivers” affecting the pricing which allows you to fix the pricing issues and plan your marketing campaigns

#clientsatisfaction #customerengagement