Do you know?
Why “BUSINESS ADVENTURES” is a one of the FAVOURITE BOOK of Mr. Bill Gates?
The Book was gifted to Mr. Bill Gates by Mr. Warren Buffet.
How much it can influence you?
Are You exited to know?
I know absolutely “YES”.
So, let’s START…….
This Book is a bundle of 12 incidents of AMERICAN PAST AGE to teach us that How can we make our Business Knowledge better.
We’ll discuss here Top 5 incidents.
1- FLASH CRASH ON 28 MAY 1962
How Feelings Driven INVESTORS destroyed the
As Investors did not get update about stocks about more than 45 mins.
Most of them felt that Market performance is getting low.
They started “A SELLING LOOP” and thus market lost about USD 20 BILLION STOCK VALUE.
But In really-the market was not getting low.
The INVESTORS did not find the REAL REASON.
They only ALLOW FEELINGS to command on BRAIN.
That was WRONG.
2- PARTIALITY OF FEDERAL INCOME TAXS SYSTEM 1913
Any Good system can be HARM full to our society if it had not changed from Long Time.
Due to UNCHANGEMENT in Federal Income Tax system; it become flexible for THE RICH and hard for THE POOR.
Here is “A FORMULA” to be remember-
GOOD SYSTEM + LONG DURATION WITHOUT REFORM
1-Every System should REFORM and MODIFIED time to time,
It did not matter that HOW GOOD IS.
2-Every system HARMS in Long time if not reformed.
3- 1958, FLOP EDSEL BY FORD
In 1955, in America, Families income was increasing. The People could afford a “MIDDLE SEGMENT CAR”.
Ford point out this Opportunity and planed for “ELSEL”. But launch got late at 1958.
Till this American’s test and demand shifted to “LOW SEGMENT CAR”.
So, People did not like EDSEL and this failed.
Ford lost about 250 million USD in this project.
4- SUDDEN FALL OF “XEROX” IN 1960
As “XEROX COMPANY” invented an easy-fast-successful photocopy machine. Because of this, its growth become very high and company valuation become 500 Million USD.
But due to this unexpected success, they become philanthropist and did not give any attention to INNOVATION.
Innovation become slow and other Competitors used this moment and make their R&D fast.
They invented more efficient and Less pricing machine. This beat to XEROX, and they Lost more.
Always remember SIP
for your business
5- PRICE INCREASED BY 25% DUE TO MISTAKE OF G.E.
How COMMUNICATION plays “A Big Role” to make a Company success?
Communication mistake by Managers of G.E. (GENERAL ELECTRIC) made G.E. in trouble.
And price increased by 25%.
Managers did not understand, that what Executives want to say.
Because of “LACK OF COMMUNICATION”
Suppose - cost of product = 100 USD.
Then 25% of 100 = 25
After increasing price by 25% = 100 + 25
So, the real price was 100 USD but customers have to paid 125 USD.
It is because – “LACK OF COMMUNICATION”