Risk in Commerce
Lukman Alhakim ????
B2B Sales & Marketing Advisory | Investment Matchmaker | Business Branding & Leads Gen Expert ?? | 800+ Clients in 3 Countries ?? Helping YOUR business shine through: ?? Organic Branding ?? Digital Marketing
Retired as president, COO and director of The Coca-Cola Company (serving 1986 to 1993), Keough also wrote one of my favourite management literature. Several months ago, I decided to bring his experience & business takeaways into life, by creating a specific Masterclass Sessions for SMEs entrepreneurs & C-suites clients under my consultancy wing, centric on the subject of how a business could fail.
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The Ten Commandments for Business Failure encapsulates more than 30 business case studies, where each were discussed in-depth & lesson learn divided into 10 distinctive and digestible categories.
In the context of RISK seeking activities, there are multitude school of thoughts that emphasised on how it could be managed in the light of achieving long term business sustainability. In many cases, the key is not to avoid or run away from making risky judgement; rather hedging it with sufficient information from available data or market analysis.
Here I share two out of many business examples to put the idea of RISK in the context of commerce:
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?? Founded in 1886
?? Post-market crash in 1929, the founder of modern Coca-Cola, Robert Woodruff expanded the business into the giant it is today
?? It was done by incepting Coca-Cola Export Corporation in 1930 with a vision to cater for markets outside the USA. To date, they are serving >200 countries worldwide
?? Robert also took a lot of risks by boosting advertising budget in 1930 to USD4.3 million
?? In the context of marketing, he even reinvented the character of Santa Claus into the personification we know & remember today
?? With the above risky initiatives, sales went off the chart ??
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?? Encapsulates both triumph & tragedy
?? Chester Carlson was the inventor of electro-photographic copying device
?? In 1947, the two giants IBM & GE turned down his invention
?? The light at the end of the tunnel appeared when XEROX took his idea into massive production
?? By 1959, they came out with the world’s 1st automatic copier - The XEROX 914
?? By 1965, revenue from this single machine alone exceeded USD500 million
?? As success becomes a norm, they became complacent and stop taking RISK by focusing on lucrative short-term selling rather than INVENTING
??By 1970s, when Apple and Microsoft were beginning to gain traction, XEROX’s had lost the majority of their tech experts & engineers - Their ideas were not listened to
Failures are valuable lessons and part of the price of stay in the business.
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