If P&G can’t get it right, what will the rest of us do? P&G the master of consumer branding recently reported a 11% year-over-year revenue decline, more than analysts expected. The maker of Tide, Pampers, Bounty, Charmin, Crest, and Olay blames market share losses for part of the drop as more consumers switch to lower-priced [...]

Economics lacks meteorology’s scientific basis, although many economists make their money forecasting where the business cycle is headed (albeit with less success than weather channels). This economist has little faith in economic predictions today as they are based primarily on past trends and relationships, captured through rigorous econometric models. The depth of this recession, its [...]

Image via Wikipedia Many business leaders debunk strategic planning.  “The external environment is too uncertain,” they argue.  Or, “Strategy is decided at the point of contact with our customers and markets.” I also hate strategic planning because the decisions from strategic planning are strategic in name only. We delude ourselves into thinking that we’re planning [...]

Image via Wikipedia Commoditization – Why You Need a New Business Model Strategy In response to price pressures leaders have cut (and cut and cut) costs by outsourcing, off- shoring, consolidating, etc. Marketing departments have branded around compelling emotions expressed in powerful messaging. They’ve enhanced marketing communications to the point that potential listeners are tuning [...]

In November of 2008, Business Week magazine reported that Apple’s cash on hand exceeded Dell’s total market valuation. These two statistics explain how it happened – Apple net profit margin = Dell’s net profit margin plus 10 percentage points Apple operating margin = Dell’s operating margin plus 13 percentage points There is a vital lesson [...]