Book contents
- Frontmatter
- Contents
- List of figures
- Introduction
- Acknowledgements
- Part 1 A dream of future wealth
- Part 2 The hidden art of management
- 13 The sweet spot
- 14 Elastic bands
- 15 An offer you can't refuse
- 16 The best of both worlds
- 17 Financial Perestroika on Interstate 95
- 18 Loads of money
- 19 Checkmate
- 20 Acts of God
- 21 Acts of men
- 22 Hubble, bubble, double-entry trouble
- 23 Credit crunch conclusion
- 24 Twenty-first-century accounting
- Appendix 1 Mathematical anchor
- Appendix 2 Getting to grips with cash
- Postscript
- Bibliography
- Index
15 - An offer you can't refuse
from Part 2 - The hidden art of management
Published online by Cambridge University Press: 05 June 2014
- Frontmatter
- Contents
- List of figures
- Introduction
- Acknowledgements
- Part 1 A dream of future wealth
- Part 2 The hidden art of management
- 13 The sweet spot
- 14 Elastic bands
- 15 An offer you can't refuse
- 16 The best of both worlds
- 17 Financial Perestroika on Interstate 95
- 18 Loads of money
- 19 Checkmate
- 20 Acts of God
- 21 Acts of men
- 22 Hubble, bubble, double-entry trouble
- 23 Credit crunch conclusion
- 24 Twenty-first-century accounting
- Appendix 1 Mathematical anchor
- Appendix 2 Getting to grips with cash
- Postscript
- Bibliography
- Index
Summary
Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for.
Peter DruckerNot all perfumes smell the same. Not all jeans look the same. Not all pianos sound the same. What's the difference? A single word: quality.
Most customers feel that a great perfume is of higher quality than a bottle of lavender water. Whether this is in some sense ‘true’ in terms of a chemical analysis of the perfume is for these purposes irrelevant. As Drucker points out, quality is not what the supplier puts into the bottle: it is what the customer gets out and is willing to pay for.
But all of this sounds most elusive: how can we possibly run a business simulation about quality? Take a deep breath and a look at Figure 15.1. Better still, if you are online and you have access to the simulation, just click on the diagram.
In this picture I have moved the right-hand panel to one side so as to create more space for the diagram, but if you inspect that edge of the screen you will see a handle that you can click on to restore it.
The next point to bear in mind is that the four boxes inside the red line are just the same as those in the previous chapter: Price Sensitivity, Unit Price, Unit Volume and Sales.
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- Financial Management for BusinessCracking the Hidden Code, pp. 103 - 113Publisher: Cambridge University PressPrint publication year: 2010