Forums: Discussions for entrepreneurs and small business.

Equity does not have intrisic value, rather it is the representation of value.

Also, i do not think that change needs to be the focus of integration, i think a more way to think of it is "continuous improvement".

Change implies that once the change has been implimented you are done, you should NEVER be done improving on processes and procedures. There is always a better, more efficient way to do things, it is just a matter of finding.

Hmm...I`m almost ready to agree on the "continual improvement" except for a number of negative examples that come to mind. Coke, then the New Coke, then Coke Classic comes to mind.

There`s a point at which a product is perfect for the market, and people everywhere recognize the brand. Then some genius comes along and want to improve it. And that`s the end of the product.

Setting that aside, though, and to the point of continuing improvement and adaptation: Aren`t we holding this topic specifically to fundamentals in business? If so, then I think we have to assume certain overall basics of living.

Whether it`s a business or a family or relationship, without adapting to changing circumstances, they all fall apart. So I think it may muddy the waters to imply that adaptation is specific only to business, as a fundamental "thing."

Adaptation may not be exclusive to business, but it is certainly a fundamental to the survival of a business. The sheer fact that change is NOT exclusive to business is the very reason why businesses need to be able to face constant change and adapt.

Craig, your example of coke is a good one. Sure, improving the product might not have been the most successful of ideas, but their are other elements Coke had to adopt to. The rise of the internet has forced many companies to have an online presence, and Coke specifically has had to respond to the increasingly health-conscious consumer base by purchasing manufacturers who offer healthier drinks, offering Diet coke, etc...

@mfackrell, I`m not sure if I agree with your point about change. I think the concept of change very much implies that you are never done adjusting to change. Change is constant and thus, you must be constantly ready to adapt.



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Motivation for Entrepreneurs
Entre-Propel.com

Okay, let`s put this again into perspective. The general theme for Startup Nation is that it`s a site where entrepreneurs, startup owners, and people who`d like to start their own business can come together and share ideas.

This topic about the fundamentals of business applies to business across the board, but presumably we`re trying to lay out the basics of business, right? Perhaps someone stumbles across this topic who hasn`t been to business school, or doesn`t have any experience in business.

How do we present The Fundamentals of Business in such a way that this potential visitor and topical-reader has something they can take away and apply?

With regard to your coke example, you are correct. that was not an improvement. What i am referring to specifically is the internal workings of a company. That may or may not include changes to products. Obviously in the case of coke they had a bad idea.

I don`t think that adaptation is fundamental only to business but that does not mean that it is not still fundamental to business.

Yes, its probably a good idea that we clarify why this is important and something we can all learn from.

In the opening post in this thread, I mentioned the author of the book, "The Art of Learning" who was a master chess player and martial artist. He argued that he was able so thoroughly learn these seemingly different art forms through "mastering the fundamentals"

Therefore, I feel we can learn a lot if we can identify the fundamentals of business and see how they are applied. Perhaps identifying these fundamentals can reveal a new business strategy that we haven`t thought of yet because our knowledge of the basics is a little cloudy.

So we have already pointed out that a common goal of business is for the value of outputs to exceed the value of inputs--which can be related to profits, competition, staffing management, etc...

We have defined what is a business, which is something that exchanges value--so perhaps thinking of new or creative ways to exchange value might unveil new ways to be profitable.

We have covered that in order to justify a higher markup, we must deliver attributes with market perceived value...thus we can`t just charge a high price for a product without including some sort of valuable attribute with it.

And we are currently discussing change and its presence in business.

I think all of these concepts have many implications, and I believe identifying them and understanding them can help all of us come up with new and creative strategies, simply by understanding the basic concepts behind business.


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Motivation for Entrepreneurs
Entre-Propel.com

I agree with you, I think we just misunderstood each other a bit. When I am referring to change, I don`t mean change INSIDE of the business, but a changing environment OUTSIDE of the business. Since the environment around us is always changing, it is imperative that businesses embrace a strategy that constantly allows change.

So I believe understanding strategies that allow businesses to better cope with change can be very helpful. How can an organization do this? Become "flatter"? Hire change agents? How can an organization overall become more nimble?


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Motivation for Entrepreneurs
Entre-Propel.com