Investment in Long Term Growth

Instead of anticipating cold climate, the general managers ought to consider the icy blast from competitors, from innovative products that challenge existing product lines, and perhaps even compete with a better price. As we have seen in some of the cases studied, non-integrated competitors have sharply reduced product introductions from four to as little as one year. We have seen a lack of communication between a parent company looking for profit windfalls and designers, engineers and marketers of hospital beds who know what their customers want, and are willing to buy, given a good price.

What is needed, therefore, is for a general manager (and his parental CEOs) to concern themselves with making some investments in, and preparations for, future market opportunities. No company can afford to produce prop planes for the airlines in a jet age and survive. However, merely to justify a ten percent investment without a specific R & R plan is as useless as having a squirrel stor

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health-care downturn. Economic "tithing" creates a fail-safe opportunity: there is money for plan A, but also a reserve for Plan B, depending on the future markets, the overall national economy, and even the possibility of mergers and acquisitions. Long term technological and R & D strategies and investment now has an international flavor: Again, using the pharmaceutical industry as an example, by applying R & D funds for the future for overseas expansion, the long wait for the FDA approval is not the same in most other nations. Therefore, one can easily see that "Ten percent for the future of our company" is a strategy that even the naive shareholder looking for immediate returns on his investment can approve of. No general manager can permit his markets to mature without preparing for new market opportunities. SUPPLY CHAIN DECISION DATA BASE According to Chapter 6, "more than 80% of the data transactional databases are irrelevant to decision making" (p. 225). Decisions must be based on facts, not guesswork. At the same time, wasting time with having to sort out the relevant data may well be costly in our highly competitive business world. However, much like a patient may want a second opinion from a surgeon befor
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