Tag: Advantage

House of Fraser has just announced the closure of Dickins and Jones. Lord Fraser had been among the first to see the potential gains from arbitrage between equity markets and property markets. But, as the story of House of Fraser also shows, you can only create enterprise value in the long run by better management of the operating business

In a mature industry - as exemplified by the cult of the practical man at British Motor, or Henry Ford's destruction of a prototype six-cylinder engine - internally focused beliefs deflect customer focus and kill innovation. The principle that familiarity with "the way we do things here" is an essential criterion for advancement is a sure sign of the failing organisation.

Prisoners' dilemmas are more serious problems in theory than in practice. But social institutions, and our own instincts, produce more co-operative behaviour than crude models of rational economic man would allow.

Honda's triumphant entry into the US motorcycle market is one of the most famous and widely debated cases in business strategy. But, as John illustrates this week, most academics and consultants tend to get lost in personal preconceptions in the search for an ultimate truth.

Government should not promote national champions by protecting weak companies from the product market. But there is a case for protecting strong companies from the capital market - the commercial life of a city, region and country is diminished if control of its succesful businesses is transferred elsewhere.

The efficient market hypothesis is 90 per cent true, and you will lose money by ignoring it. However, judging by Warren Buffett’s fortunes, a few skilled searchers might find rewards in the remaining 10 per cent worth chasing.

Genetics is the most exciting of today's new technologies and has the potential to revolutionise nutrition and medicine. Yet, when it comes to GM food, we are patronised by a discredited government department, misled by campaign groups yearning for publicity, and let down by companies whose self-interest is ridiculously obvious.

John used to teach students that Europe could never regain supremacy in civil aircraft manufacture. He was mistaken. What went wrong with Boeing’s strategy?

For countries as for businesses, small scale is no barrier to success. John explains why size isn’t all that matters.

It is in human, rather than natural resources, that the origins of material prosperity are to be found. John describes why natural resources may be a burden rather than a blessing for some developing countries.