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Showing posts from October, 2013

You don't have to be lucky to be a success

There are five things that most people get wrong about what makes great companies succeed. Great companies are not led by risk takers. They do not innovate more than their competitors. They are not quicker to react to change. They don’t change the way they work. And they don’t have more good luck. In Great byChoice , written by Jim Collins and Morten Hansen, the real attributes of success are analysed and presented in a way that will help any business leader think about what she is doing well and where she needs to improve. But first a spoiler alert. If you are a fan of Robert Falcon Scott, this book is not for you. Collins and Hansen use a discussion of the ways that Roald Amundsen and Scott approached their 1911 race to be first to the South Pole to demonstrate how the findings above make the difference between life and death. While the book runs to 304 pages, mostly to back up the authors’ arguments, you can get a great deal out of reading the stories. In just six page...

The trend towards local continues

In a briefing reported by the Financial Times, Walmart suggests it is hitting an inflexion point in its business as shoppers wanted smaller stores closer to their homes. While its model of big out-of-town stores is still successful, Bill Simon, head of the US business, said consumers were reluctant to drive long distances to shop and people were moving back to city centres. He split shopping trips into three types: - large grocery shops often at weekends (falling) - medium-sized purchases (flat) - "immediate access" trips (growth). Competition with small stores was intense as dollar stores had expanded, drug stores were competing for sales and competitors were opening small format stores. What does a Walmart small store look like in the US? - Neighbourhood markets = 38,000 sq ft - Express stores = 15,000 sq ft. Simon stressed that Walmart was not abandoning its business model as a mass market discount retailer.

Shake up your ideas with this feast of a read

  The US edition of Setting the Table , Danny Meyer’s inspiring guide to success as an independent restaurateur, has a brilliant blue cover with a single saltshaker. The edition I bought does not and that is the only weakness with this useful guide to setting up your first shop, moving from one to two, from two to four, and from four to infinity. The saltshaker is relevant because it is attached to a brilliant story about leadership from Meyer’s early days in the mid-1980s when he had opened his first restaurant and was developing his business style. Pat Cetta, an experienced restaurateur who informally mentored Meyer asked him to clear a table of everything except a saltshaker. He asked: “Where is the saltshaker now”. “Right where you told me in the centre of the table.” “Are you sure it’s where you want it?” I looked closely. The shaker was actually about a quarter of an inch off centre. “Go ahead put it where you really want it.” I moved it very slightly...