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What’s Important in a Recovering Economy?

Dr. Smith, Dean of the School of Business and Technology Management at NCU

Dr. Smith, Dean of the School of Business and Technology Management at NCU

We’ve seen a number of business developments emerge during early 2013: Office Depot and OfficeMax have merged, while American Airlines and US Airways are creating one of the largest airlines in the world. Home prices are up in many parts of the country, and the DOW Jones Industrial Average reached a new record.

Dean Smith of NCU’s School of Business and Technology Management shares his insights on three things that remain important, even in a rebounding economy:

1) Reducing costs – “Making something cheaper has led to our current trends of outsourcing and globalization,” remarks Dean Smith. “We’re no longer competing with local neighborhood businesses here in the U.S. We’re competing with highly successful international operations in India, Vietnam, China and in this global spectrum, there’s a constant drive to increase profit margins for shareholders.”

2) Differentiation – Consumers are willing to pay more for products and services that are perceived as better. “This is where technology can really be a game changer,” he notes. “Innovation can create differentiation in areas like customer service and product development, by reducing labor costs and utilizing emerging technologies to better serve their valued customers.”

3) Educated Business Leaders – The key to successful businesses is still talent. People with the necessary skills, management ability, and vision to leverage the emerging technologies and seize competitive advantage are required. “Business leaders who fail to understand their operating environment will make costly mistakes that can decimate the organization,” shared Dean Smith. “But people who can see the big picture – people who can collaborate and are adaptive to new ideas and technologies – those are the individuals who can lead successful enterprises.”

2 Comments Post a comment
  1. Bilal E. Muhammed #

    I like and believe in doing business like Michael Dell, listening to the customer and providing them what they want, dictating what people want and how they are going to get it is a thing of the past, people respect and honor businesses that respect them not just as a valued customer, but as a trusted member of the community, continue to produce a good product, people will pass the word on, and you can survive in a downtrodden economy.

    March 7, 2013
  2. Companies lose focus on what’s really important and how to retain their customer base. While small business owners have their eyes on the trends and are slowly devoting more to budgets for customer service courses, large companies are just the opposite. Large corporations merge and focus too much on dividends, and far less on where the money originates from.

    April 12, 2013

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