Economics

Decision Making in Uncertainty

By 24. Juni 2009 No Comments

This morning I found a little but interesting report in the Handelsblatt, my second breakfast. It is written by Anja Müller who referes to an academic  study published in the UK.  „Marketing in uncertainty„, a  study comparing behaviour of entrepreneurs to corporate company people in marketing – very intersting results about risk management, trust in figures, planning and checking finance, etc.  If you are an entrepreneur yourself it is nothing really new – of course you take risks and if you fail you pay with your own money. You are much more carefull where you invest and how much money at all and you will check on cash flow, which is not a buzz word for you, but the money on your own bank account. As easy as that. The entrepreneur has full transparency – the manager has his monthly figures or the EBIT at the end of the quarter.

I will use this story in my future seminars to show the different decision making of people – but this is triggert by responsibility. As the entrepreneur puts in all her/his money, the manager is only responsible for EBIT – and most of the time he/she has no influence on this key indicator anyway … as marketing cost are still small compared to total operational cost … this makes them going easy.  You get what you measure !

Enjoy reading more  about the marketing association.

and please share your thoughts with me. Claudia

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