In the last few decades the world is increasingly recognizing the need for business management. While teaching the importance of competition to management students, I always ask them, “Assume you are the CEO of Maruti Suzuki, a leading automobile company in India. Now tell us what business you are in?” The answers I get are usually are mostly the obvious one, that is, automobiles, four wheelers and cars. And when I ask them a follow up question as to who their competitors are, they name all the car manufacturers. According to Levitt, it is this way of narrowly defining what business you are in that leads to downfall of a large number of companies. Taking Levitt’s theory into consideration, Maruti is in the business of “transportation of people.” The benefit that customers receive from using cars is that they can transport themselves to a destination of their choice. As such, Maruti should consider itself to be a part of the transportation industry, not just as a part of the automobile industry.
The truth is that if you have honest, trustworthy and successful professional in your board, customers can easily trust you with their hard earned money. In some countries trust is one of the key factors that is hampering the growth of the insurance industry. Here is a sample business plan for starting an insurance firm. The idea of drop shipping goods in social networks is a good option in finding a good source of income. But not only social networks are a good niche for this marketing technique. A well-designed website can also make a popular place for customers to purchase products and services from especially if what they are selling is in-demand. The risks made here are only minimal as the website is one of the primary expenditures that must be taken care of. The entrepreneur does not necessarily have the products in their custody, but advertises them to their target market instead.
In late 1986, the significant diversification and restructuring of the company recognized that it became a vastly different corporation and found the need to change its name from United States Steel Corporation to USX Corporation. The company â€˜s conglomerate during that time included joint enterprises on the fields of chemical, agri-business, oilfield supply, and domestic transportation. In 2001, USX Corporation underwent reorganization yet again. This time, the plan was to separate USX Corporation and United States Steel Corporation. The separation became effective on 01 January 2002 that marks the date of the independent operation of the two companies. United States Steel Corporation concentrated its efforts in going back to its original business, to make steel products (USS, 2009).
As highlighted previously those with entrepreneurial spirit should not be considered as reckless mavericks indeed quite the opposite, good entrepreneurs are motivated by profit and are skilled at identifying a lucrative niche in the market that can be exploited for profit. Take for example, Steve Jobs at Apple Computers who has successfully navigated a profitable course in the computing and software industry despite the market being dominated by Microsoft and IBM for a number of decades. In addition he was the first to spot the potential of utilising the computing industry to open a new market to the music fraternity , with the introduction of the IPOD, the market leader in its business stream. Such actions requires great skill and confidence and demonstrate a clear entrepreneurial spirit.