Hazards of myopic mindset for managers, entrepreneurs

05 Jan, 2023 - 00:01 0 Views
Hazards of myopic mindset for managers, entrepreneurs nokia company

The Chronicle

Michelle Nonkazimulo Ndiweni

SUSTAINING sound business momentum is a daunting task for many entrepreneurs or managers, and history is replete with scenarios of mighty enterprises that have collapsed along the way due to several factors.

One may recall how Nokia was the market leader at some point, releasing mobile phones every now and then such that everybody looked forward to or dreamt of owning one Nokia set. During that time, Samsung was a tiny follower in the market and Nokia was leading.

Who knew that tiny Samsung would be greater than Nokia today? Certainly, nobody would have guessed, as Nokia was amazing during its years of success.

The biggest takeaway from Nokia’s experience is that it is dangerous to sit comfortably in your business and assume all will be as rosy just like that, assuming that once you are a market leader, you will always be a market leader. This is the unfortunate trap that most business owners fall into.

For the average entrepreneur, making more sales than they imagined is as overwhelming as it can be. Having their business known by more people and getting more referrals than they ever thought they would get is unbelievable.

Unfortunately, most entrepreneurs slip into the trap of enjoying all the small glory that comes with their business performing better than they expected and forget the potential their business has and that it does not exist in a vacuum.

There are some lessons we could possibly learn from our personal lives that could assist with ensuring good management that leads to business growth and longer-lasting success. In life, we thrive to get the most out of anything we do and everything we have.

Be it time, money or anything we may so possess. Our aim is to always get the best. On average, we have about eight hours to carry out our duties for the day.

The most efficient people ensure to use their time resources wisely. The same applies to the financial resource – money. The average person seeks to spend it in the most efficient way ever. The simplest reason behind all this planning is – we want to get the most out of everything.

We want the best! An example that most people can resonate with is that of a retired or unemployed grandmother in rural areas. Each time they receive money, they ensure to spend it on as many things as possible while also attempting to store it for as much time as possible – all because they want to make the best use of their money.

The same applies to the business setting. The same way we take our time and money, or any other resources seriously, is the same way we should take our business seriously. In order to make the most of our businesses, to achieve optimal growth and profits at any given time, it is crucial to be deliberate and strategic about the decisions we make.

To curb getting too comfortable with minor success and hindering business growth, one of the crucial activities entrepreneurs or managers need to consider is the state of the market. It is vital that they research the key dimensions. These include market potential, structural change, competitors and industry, pricing, sales negotiations, and of course customers. During the weeks to follow, we’ll deliberate deeper on effectively interrogating these facets.

The manager or entrepreneur should ensure they ascertain the potential of the market by measuring its capacity against consumption. This basically refers to assessing the size of the market, how much of the market is being served by all companies in the industry, and how much of the market is served by the manager or entrepreneur’s business.

Additionally, while assessing market potential, one should establish how much of the products in their market is imported, comparing the imports to their market share. There’s also the export potential that most entrepreneurs overlook. It is imperative that the entrepreneur or manager ascertains if there is room to export, as this would improve growth.

Structural changes occur in the market. It is important for one to have perfect information on mergers, acquisitions, and new entries, as these all have a bearing on the performance of the business.

Imagine a scenario where the only way an entrepreneur or manager discovers that there has been a new entry into the market or any other structural change is customers leaving and sales declining. That would be catastrophic. Therefore, staying informed enables one to make informed decisions that will enable them to defend their market share.

Therefore, it is important for managers and entrepreneurs to have perfect information on the market potential and structural changes in the market.

This enables them to make informed and better-quality decisions that enable business growth. The other areas that need the manager or entrepreneur’s attention will be deliberated on in the article to follow.

Michelle N Ndiweni holds a Master of Science Degree in Marketing and is a lecturer at a local university. She is a marketing consultant, researcher, and trainer and may be contacted on the following profile on LinkedIn, <https://www.linkedin.com/in/michelle-ndiweni-29015176/>

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