Protected: Godfather Teaches Business – 11 (Change. Or cause it.)
A few thousand years ago humanity gingerly took its first step into trade with barter: Exchanging goods for goods. Later the money system was introduced, then slowly modern economic phenomenon like banking, companies, industrialisation started appearing. There have been business leaders in every age, but none have been able to maintain the lead for a very long time. They just couldn’t cope with the changes.
“The Corleone family is thinking of giving up all its interests in the olive oil business and settling out here.”
Michael ‘Godfather’ Corleone
Like the senior Godfather, Michael Corleone too had a head for business. All through his career, he was always ahead of the time. Anticipating change, or causing it. He knew that the drug war would make his home state Nevada an unfriendly place and so he decided to move to Las Vegas, so that he could place his family and his business away from the meddling hands of the other mafia bosses. He was ready to give up the business his family had built up over the years and enter a field entirely knew to him, Casinos.
He was doing what his good businessman’s instincts told him to do. Exiting a business which was increasingly becoming insecure to enter one where he saw potential.
Smell Change Before It Arrives
In the late 1950s, a former petrol attendant in Aden arrived back in India and set up a small fabric trading house. At that time, cotton was the dominant fabric, with almost all of the trade happening in cotton. Polyester had just been invented, but was rejected by the cotton traders who believed it could not challenge the dominance of cotton. This trader felt different. He invested all his money in polyester. The fabric was a raging success due to its shine and durability, and that trader became the polyester prince of India. He was Dhirubhai Ambani, and the company he founded is Reliance Industries. India’s first Fortune 500 company.
Ambani’s knack of smelling change earned his company the status it has achieved. In fact, e did not just smell change, he caused it. Many years later his telecom venture shook the very foundations of telecom business in India by introducing call rates that were less than a tenth of the nearest competition. It wasn’t surprising that the company got a huge chunk of the market share before competitors could react.
Change is About Minimizing Your Losses
Change is inevitable, and constant. Your market and business is changing constantly due to the impact of many forces. There are social factors, new discoveries, trends, changes in incomes, demographics, almost everything is changing. If you can flow with the tide you will not only survive, but also prosper. Stay rooted at a spot, and you will be washed out.
In the 1990s the market for audio CDs and cassettes in India was exploding. All the companies seemed to be doing well, and there was a new ‘pop-sensation’ almost everyday. By the arrival of 2000, the trend had declined. Suddenly sales weren’t high as earlier and were falling at an alarming rate. Before the industry knew the earth moved from under their feet. Many companies went bankrupt. What was the factor that caused so drastic a change? MP3 Music, the Internet, and multiple FM radio stations that played good music all day and night long.
Many companies understood the new business dynamics and changed themselves according to it. Some of them stepped into movie production, while others cut spending heavily. They survived.
Change is about opportunities too
The changing face of the music industry brought fresh opportunities. Ventures like MP3.com, Napster, Raaga.com, etc. became popular just as fast as the traditional companies faded out. People were looking for only one kind of music – Digital.
Many years later a super-product emerged from this transformation. The iPod. The iPod was a revolution that was borne of the change that destroyed so many music companies. A success so spectacular it changed the fortunes of Apple Inc. One man’s threat became another’s opportunity.
Know that if you can exploit change properly, it can turn your world around.
And remember
Change is constant, so prepare yourself for it constantly.
If you’re outraged by the sexist remark. Don’t. The godfather didn’t have a need to be politically correct. Not in Sicily, where he hailed from. Let me re-interpret the comment for you. The godfather is telling you that you can only afford to be careless if you have someone else to take care of things if you make a mistake. If you have responsibilities then you can’t afford to make mistakes.
When I picked up this book by Immanuel Velikovsky from the book pile at the pavement (for all of Rs. 10), I expected it to be science fiction. It could have been about alien civilizations fighting against each other, or maybe a different earth in a different time facing a threat from its own colonies. No, none of that. When Immanuel Velikovsky picks a title, he means it literally.
There is a word in Hindi: ‘Gyan’. A simple word, but for it there is no exact translation in the English language. It falls somewhere between consciousness and knowledge. It’s a combination of both. It stands for knowledge that is awareness, or leads to awareness. It is not information. It is a higher ideal.
What kind of science fiction fan am I to read one of the most legendary science fiction books so late? I am talking about Robert A Heinlein’s Strange In A Strange Land. Between Children of the Dune, and this book I’ve read 4 others, but none remarkable. 