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3 Forces

The interaction of the three forces can be shown in the above diagram.

These three forces are not static.  Each is in opposition to the others and yet each is dependent upon the others.  Each seeks to maximize its return: The customer seeks to look for the best quality at the cheapest price; the employee will seek to ensure that he gets the best conditions in terms of pay and challenge; the shareholder will look for the most secure growth and best dividends.  The company, therefore, tends to lose its market, employees, and shareholders as they havea tendency to be attracted elsewhere to other means by which to get the maximum return.   This pull from outside gives an outward direction to the dynamism of the forces.

Were this the whole story, a company could not stay in business for even a moment.  However, the forces are not only in competition–in opposition–the forces are also complementary; they mutually support each other and thus there is a tendency toward the center.

March 5th, 2020 ~ This is it in a nut shell.  One of the things I try to do is gauge what customers want and need rather than look at what will sell.  When you are dealing with healthy food products, it is a bit tricky to find the right blend of healthy and profitable.  It is quite helpful to have this image in mind.  Keeping in mind all three: shareholders, employees and market (customers)–it helps focus.   There is a healthy tension between the groups.  This tension is a theme that we will be discussed more in detail, both positive and negative tension.

Reference

As in most posts on Zentrepreneurial.com, italicization of words refers to the words of either Jiddu Krishnamurti or Albert Low.  The website writer’s words are in regular text.

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