By Peter Ferdinand Drucker
It is a basic advisor to ideas of fine mangement. the writer has written a variety of books together with "The perform of Management", "The way forward for business guy" and "Managing in Turbulent instances"
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Extra info for Managing for Results. Economic Tasks and Risk-Taking Decisions
Beware however! Not everything in trouble is a repair job indeed, few products are. The requirements spelled out for it must be rigidly enforced. If a product fails to meet a single one, it should be rejected out of hand as a repair job. Otherwise, every yesterday's breadwinner, every unjustified specialty, above all every investment in managerial ego will claim to belong.
Tomorrow's breadwinner is both sizeable reality and promise. It already has a profitable, large market and wide acceptance. Yet its main growth is still ahead, without substantial changes in the product. Net revenue contribution and contribution coefficient are typically high, are indeed typically higher than they should be. Because the product does so well, everybody thinks it does not need support. As a result, the key resources needed to make the most of it go elsewhere, especially to problems such as yesterday's breadwinner and above all to the investment in managerial ego.
The very feature that made it obsolete in the United States market made it almost ideal for the company's Latin American businesses. They needed a product simple in application and suitable for small plants and fairly slow equipment. The company's three manufacturing subsidiaries in Latin America were rapidly losing profitability despite market leadership; they had no cheap product with which to meet the competition of a European product designed for small plants employing a few highly skilled technicians and simple machinery.