We often pretend that we didn’t know the obvious, but there is a time when you should know the obvious and act accordingly.
Now the question is, when you should know it.
1. When you have a merger and/or acquisition in the industry that you are operating in, you should obviously know that there is a fierce competition coming in. A clever manager would act immediayely on that piece of information.
2. When you are in a market where no one is buying the products from your industry anymore, you should know that someone would shortly come with a new substitute product which will replace the old product and create a new demand. A clever manager would come forward to create that new product, and another clever manager would immediately copy that.
3. When you have a problem with the national economy (e.g. recession, price hyke, currency devaluation etc.), you should know that people would reduce expences to save more for future. a clever manager would start thinking about capturing that future, andother clever manager would reduce production to save on the COGS, thus to save some money so that the company can do some real R&D which he would use for selling a better product in future, thus would get back the money into the business faster.
4. to be continued…
[written from my iPhone, pardon spelling pls]