Example Success Stories

ADMS 1000 The Business Book Example Success Story Pampers Success Story Procter & Gamble launched Pampers in 1949 as a new innovation in disposable diapers. Waited for customer acceptance before entering the market. Spent five years researching and addressing major problems with Chux. Developed a more absorbent, leak-proof, comfortable, and cost-effective product. Pampers is now valued at over $8.5 billion, purchased by 25 million consumers in 100+ countries. Chux was phased out by Johnson & Johnson in the 1970s due to declining sales. Securing a Foothold in the Market Emphasizes the importance of appropriateness over speed when entering a market. Amazon's success attributed to continuous improvement, offering complimentary products, and cost reduction. Amazon's profitability started in 2001 after years of product development. First-mover advantage is beneficial, but long-term success relies on good business practices. E.X. Jeff Bezos: Amazon's Founder Jeff Bezos, born in 1964, founded Amazon in 1994 after a successful career on Wall Street. Started Amazon as an online book retailer. Amazon went public in 1997 and turned profitable in 2001. Bezos is recognized as one of the wealthiest individuals in the US, with Amazon being a global success story. Managing Risk in Business Entrepreneurs must be willing to bear risks, especially in new ventures where failure rates are high. Risk management is crucial for all businesses to handle potential failures and protect brand reputation. Balancing risk and reward is a strategic process in business management. Deciding the level of acceptable risk and where to place it is essential for effective risk management. Managing Risk Companies now focus on risk oversight and risk management. Risk oversight involves governing processes for identifying and managing risks. Risk management includes detailed procedures for avoiding or reducing risks. Inherent Risks Risk is present in all business activities. Start-ups face risks like insufficient revenue, competition, interest rate fluctuations, and exchange-rate risks. Small companies often rely on one idea or market, making them vulnerable to market changes. New businesses must be adaptable to market changes to survive. Strategic Issue Risk is a strategic issue that requires careful consideration of potential profits or losses. Risk must be quantified and managed to address operational risks effectively. Deepwater Horizon Incident BP's Deepwater Horizon incident in 2010 resulted from management failure to quantify and manage risk. Prioritizing financial return over operational risk led to significant cost-cutting and riskmanagement failures. The incident led to huge fines and government monitoring of BP's safety practices for four years. Other Factors Luck in Business Luck is considered uncontrollable in business, but it can be influenced through hard work. A well-considered business plan can reduce reliance on luck and prepare for contingencies. Planning plays a crucial role in turning lucky discoveries into commercial successes. Maximizing Opportunity Luck and planning go hand in hand in maximizing business opportunities. A good plan reduces the reliance on luck for the survival and success of a start-up. Quotes on Luck Ray Kroc suggests that luck can be created through hard work. Ronald Cohen emphasizes the importance of perseverance and doing the right thing in attracting opportunities. Small businesses outnumber large companies significantly In the US, over 99% of companies employ fewer than 500 people In 2012, almost 5 million small businesses had fewer than 49 employees Reasons for small businesses staying small Many owners content with current lifestyle Lack of desire for growth Finance is a major hindrance to growth Entrepreneurial spirit and growth Growth requires willingness to take risks Need for acquiring leadership and management skills for scaling