Archive for the ‘Motivational’ Category

What are Common in Sports Umpires and Business Managers?

Friday, October 24th, 2008
small business management
Satish Nair asked:


“Respect is important in sports and in business. You can not be successful without respect for the customer or the competitors. Respecting the rules means respect the referee”. Perluigi Collina, Retired International soccer referee, a respected figure among soccer referees in the world.

 

Collina says, both sports and business are similar when it comes the decision making, a wrong decision can be fatal for both business and soccer. If your decision is getting wrong-footed, you may be ended up in hot water, however if you take the decision under good judgment and the decision should be for the benefit of the business and for the sports, however the wrong decisions may lead to on field battle by the players and spectators and in business doubts created about the credibility of the manager. He says, there are things that could be very similar between his activity and the business world, as for a manger, he has to take decisions very quickly under pressure. Important decisions will have big consequences, if it goes wrong. Another key is that decisions are all about building relationships with players on the pitch and employees in the organizations. Sometimes, the decision the referee takes is accepted not only because it is correct but because the relationships are positive.

 

The final goal for the referee and for a manger that they are to be accepted even when they are wrong.  It means that the players trust the referee, as if someone trusts the business manger even if he is wrong. The referee is accepted not because of the role but because of what he does on the field.  This is similar the case of a manager. The manager can not be accepted because he is a CEO, but the manager is accepted because he has shown everybody that his way to run a company is correct.

 

Business leaders need to have an insight into coping under pressure could do worse that to follow the referees, who do not betray some nerves prior to the game probably should not be there. Like referees the manager needs to be little nervous just before taking a big decision. If a manager feels powerful more strong, but there is a limit. If he takes it too far, nerves reduce his performance. Everything which happens on a pitch that also happens round the table. Both the manager and referee face challenges and have to have criticisms, when something happens, the like the manager, referee has also to change the things what can be changed and look to the future and this what the referees and manager do. 

 

The vital and important key of a soccer referee is the instant and immediate decision making ability, that too in split seconds, there is some relief to the cricket umpires that in cricket matches, the umpire can refer to third umpire for decisions and let them decide, however in soccer no such assistance can be taken from the replays or third umpire, he has to take the decision instantly and immediately and we can see from the replays that 99% of the decisions were correct, in fact referees are not playing spoiling sport, he actually manage a business of 2.00 hours, he can not be partial, even if the spectators think so. They have nothing to do if a team win or loss, they are just managers of a soccer match and once the match is over, they go another assignment. In most of the decisions, though players and their coaches could still be argued the decision is wrong. It becomes more crucial for referee that when taking decisions in a match, which is being watched by millions of spectators around the globe.

 

If the referee wants to do his best i.e. to referee in big matches, from Arsenal vs Man United to world cup matches, even though it’s still just a game of football and nothing else. Making good decisions is essential even either in EPL matches or in the small matches. There’s been an explosion of exposure lately - every single incident gets noticed and analyzed. Like soccer, the managers are also watched by the directors and stake holders, then the decision should be correct to the great extent. If the referee, they had a couple of cameras at a game 10 years; nowadays for a live match there are numerous cameras, capturing every decision the referee is going to take. If a referee makes a mistake, millions of people are there to blame him, he should be affected only by his desire to do a good job, not adverse publicity. This is similar to the business managers, as these days the media closely watches all the decisions they take.

 

Both in the business and in sports, the respect is very important; giving and taking the respect, nobody can be successful without giving respect and getting respected for the customers, or the competitors and once you get the respect and trust of players and employees, you are successful and your decisions are respected by everybody. People may not instantly put a name to the face, but once they realize that this is the man who is credited with being the most outstanding referee/businessman, the penny drops. There is some dissimilarity too, in football it is mandatory to retire referee at the age of 45, irrespective of they mental and physical strength, but in business there is no such restrictions, he can perform till his health allows him to do. The qualities required for a good referee and good businessman are the same; they have to have;

 

To stick eyes on the “ball”

Both should focus on what is going on in the pitch in case soccer and organization or market and without watching following the ball (focus) no manager can take any decision for the benefit of the organization and this is also applicable for referees, once their eyes distract from the ball, wrongful decisions can be made, it may be fatal. It may attract the ire of the spectators and can lead to loss the job. Both should stick on the focus for taking a decision for the interest of the business and the game being played amidst pressure for both sides.

 

Coping under pressure: Soccer officials are routinely subjected to a wide range of potential stressors, like the businessmen, as both reveal a considerable mental and physical toll. Soccer referees identify spectators, players, coaches, trainers and other personnel as sources of aggression. Unlike the businessman, at the extreme, referees and their assistants have been pushed, punched, kicked, and even shot to death by players, managers, coaches and fans. Referees and their regulating bodies are well aware of these sources of threat, and some attempts have been made to provide psychological training to help them cope.

In addition, match-specific demands are extreme. The referee must have a thorough knowledge of the current laws of soccer and implement them while keeping constant vigilance over complex activities and interactions, whereas a manager should know the market trends, customer trend . Considerable amounts of time must also be spent on pre-match preparation, travel, and post-match reports.

A few studies have examined referee responses to stress, but little was found about the mechanisms which motivate officials to continue their involvement despite the variety of potential physical, social and cognitive factors which are regularly encountered. The present study was designed to allow referees to convey their perceptions, particularly with regard to their methods for coping with demands and abuse and their reasons for remaining referees.

To deal the negativity : Social psychologists have identified a number of cognitive strategies that help people explain and deal with negative experiences. Blaming others for failure while taking personal credit for success, distorting or ignoring unpleasant information, and interpreting one’s motives as principled and righteous, are among the variety of available methods of maintaining confidence in difficult circumstances. Misrepresenting reality with ‘positive illusions’ (Taylor & Brown, 1988, 1994) can ultimately be healthy and adaptive. Indeed, they serve a vital function of removing perceptions of self-blame, protecting from external censure, and providing palatable explanations for disturbing events. In the longer term, they may lead to more positive expectations about the future, greater persistence and self-efficacy. Taylor and Brown (1988) suggest that people who fail to use these strategies are more likely to be anxious or depressed.

To expect the unexpected: Sports performers and coaches often make use of self-serving attributions to explain their own disappointing results. External factors such as bad luck or other people’s incompetence are used to deal with unpleasant experiences, defeats, and rejection, while internal factors such as skill and effort are seen as responsible for victories and other successes. Some analysis showed that players and coaches were more likely to attribute their successes to internal factors, such as skill and determination and their losses to external factors, such as cheating opponents and poor weather. These factors are closely associated with the business managers in various situations.

To decide on personal strengths : Another potentially useful mechanism is ‘illusory superiority’ or self- elevation, where people adopt the view that they have more positive qualities than others and describe their personal strengths as above average compared with those of other people their age. Individuals made more flattering judgments about themselves than others made of them. Individuals also believe their personal relationships are of a higher quality than the relationships of others and remember experiences as more successful than they really were. These factors are also existing in the managers

The managers and the umpires are the connecting link between players and spectators, likewise a manager, who is a connecting link between the employees and the board of directors, stakeholders, the job of a referee and a manager are same in most of the scenarios, though there are indeed some deviations. The keys for success for both are almost all the same – and the most important is the INSTANT DECISION MAKING POWER. Therefore, one wishes to analyze the similarities and qualities of a manager and referee, similar factors impact their performance off and on the pitch/office are vitally required for success, to get respected and to get the reputation of a good referee or a good manager. 

 

 



Ronnie

From Small Business To Big Business: Costco Wholesale

Tuesday, April 29th, 2008
small business management
Cash Miller asked:


If you own a small business there’s a good chance you are already shopping at a Costco store near you. Based on sales volume Costco has become the largest wholesale membership chain in the world. So you might just have a store around the corner from you. Of course this wasn’t always so. Now to say that Costco was ever really a small business wouldn’t exactly be true. But how did the Costco we know today come about?

Well the history of Costco can actually be traced back to one man. He’s known as the pioneer of the “warehouse store” retail concept. His name is Sol Price and he started the original warehouse store known as FedMart back in 1954. Eventually he would wind up selling this chain which is how we come to PriceClub. Sol’s next effort came in 1976. That is the year he started PriceClub along with his son Robert Price. Together they would build PriceClub into the largest warehouse store operation in the country.

They started the business on the outskirts of San Diego, California. Initially they had just one store that was 100,000 square feet. Sol had managed to raise a little over 2 million dollars to start the business. During that very first year they managed about 16 million dollars in sales but they lost $750,000. It almost ruined them. Then one day Sol asked a customer what they were doing wrong? That’s when he found out that they needed to open membership up to government employees. From there the business took off.

They catered primarily to small businesses and government employees. Knowing that they were less likely to bounce a check. They refused for many years to accept credit cards so that they could keep costs down. Credit card fees for retailers can really add up. They also kept their selection to a minimum but made it cheap to buy in bulk. They would typically only charge about 10% above wholesale cost. They made their profits through sheer volume. And they kept their overhead low.

So what does all this information about PriceClub have to do with Costco? Well Costco was started in 1983 by a former PriceClub employee named James D. Sinegal who had been a PriceClub executive vice president and who had worked with Sol Price at FedMart. James in fact was along with Sam’s Club run by Wal-Mart PriceClub’s main source of competition. But by 1992 Sam’s Club was overtaking them both. So it was decided that PriceClub and Costco would merge into one company. Robert Price became chairman of the board and James Sinegal became CEO.

The new company was named PriceCostco Inc. This was an arrangement that was never going to work. Within a year the writing was on the wall so the company was once again split up. Only this time the company which would soon after be renamed Costco Wholesale Inc. managed to retain most of the store locations. Robert Price took other assets with him and formed Price Enterprises Inc.

Ultimately James D. Sinegal who had helped to found Costco would end up back in charge and to this day he still is. Along with Jeffrey Brotman another founder and chairman of the board. The company does over $60 billion a year in sales and has over 130,000 employees. It’s only real rival is Sam’s Club but Costco is the leader in its industry.

We mentioned Sol Price because without him Costco probably would not exist. He had an idea that turned out to be revolutionary. He essentially created a whole new way of selling to the public. He took a huge risk in doing so and almost lost it all. But he succeeded against the odds and instead of leaving a company as his legacy he left a whole industry. He is a man that had the drive to succeed and did. Do you have that kind of drive in you?



Darrell

From Small Business To Big Business: Subway

Thursday, March 13th, 2008
small business management
Cash Miller asked:


The world is full of sandwich shops. Seemingly they are on every corner and within every strip mall. But there are a few that have managed to stand out from the crowd. They have in fact become so successful that they are known all around the world. Subway is just such a chain. In fact as far as franchises are concerned they are now the third largest in the world. Trailing only Yum! Brands and McDonald’s in total number of stores being operated. For those people looking to buy a franchise this one certainly has some things going for it.

So how did it all start? Well it all started with a thousand dollar loan from family friend Peter Buck to a 17 year old kid. Fred De Luca was the kid in question. At the time he was trying to raise money for college and thought that starting a small business might be a good way of doing it. He had aspirations of becoming a doctor at the time which is what Peter Buck Ph D. was. Hence the official corporate name of Doctor’s Associates Inc. which has absolutely nothing to do with any medical organization anywhere.

As soon as the doors were opened the business was started pouring in. Originally they had named the business Pete’s Submarines but over the radio it came out sounding like Pizza Submarines. So they soon changed the name to Pete’s Subway and eventually just Subway. Regardless of the name they definitely had a hit on their hands. From that first location they have grown to over 29,000 locations as of 2008. And they operate in 86 different countries all over the world. Truly they have become a global force in the fast food industry.

Subway is also responsible for one of the best known advertising campaigns in recent memory. Using Jared Fogle the college student that lost a whopping 245 pounds while eating Subway sandwiches and exercising. Their timing could not have been much better as America was in the midst of a health conscious craze. Still today Subway uses Jared to promote their products.

Each year Entrepreneur Magazine puts out its list of the top 500 franchise opportunities in business. And Subway despite some past problems here and there consistently ranks at the top of the list. In fact for 2008 they were ranked number two along with being ranked the third fastest growing franchise and the number one global franchise going.

What started with a humble beginning has blossomed into a global powerhouse that shows no signs of slowing down. Even the simplest of businesses can still do things better than their competition. So never think that just because your business idea is not new or seemingly innovative enough that you still can’t do it better than the next guy. In business you look to gain an edge over the competition and produce better results than they do. If you do then even the simplest of business models can achieve great success.



Phillip