Melissa BuehrlenInstructor SomersBusiness Economics06/14/2013Case Study 4; Business MythsSeveral...

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Melissa BuehrlenInstructor SomersBusiness Economics06/14/2013Case Study 4; Business MythsSeveral blogs have pointed out what they called “business myths”. Some of these are:   	To be successful you have to be first. This is also sometimes reworded as “the first in, wins” or “first mover advantage”.     	To be successful, you have to be cheaper. Take an SBA (Small Business Administration) course, and they will tell you that if you’re only competitive point is to be cheaper, don’t bother starting your business.      	I’m a good cook, so I should start a restaurant. “Hey, this meal is fantastic! You should start a restaurant!”     	The customer is always right. You should never tell a customer that you don’t want them as a customer anymore.      	I’ll just open my store, and people will stream in off the sidewalks and buy from me. This is also known as the “If you build it, they will come” approach to business.     	It’s a cool idea. Everyone will love this. Often focus groups provide such input to marketers-we love the idea.     	Ours is better, so we’ll be successful. Quality always wins.     	Adding more people to the project will make it go faster. This is a very common view in the software world.    	Failure is bad. Failure is the opposite of success. This is why dodge ball has been banned in schools and soccer teams are penalized if they get more than five goals ahead of their competitors. 	Knowledge is power. In the knowledge economy, knowledge is the distinct capability that is necessary for success.     	Cash flow is what really matters in business. Profit can be a trick of accounting whereas cash flow controls whether you can stay in business. Many companies go out of business due to cash flow challenges, even though they were profitable on paper.     	Having more customers is better than having fewer customers. Would you believe that some companies go out of business because they have too many customers or too much demand for their product?  Exercise Questions:   	Are these myths? Explain why each is either true or a myth.     	Is it true that: YOU CAN WIN CUSTOMERS JUST by LOWERING YOUR PRICES? Explain.   	Would you say that you should never form a partnership or a new business with close friends? Explain.

Robert · Accepted Answer

Running Head: BUSINESS MANAGEMENT   1 

Economics
Running Head: BUSINESS MANAGEMENT   2 
 
Case Study 4; Business Myths 
Answer 1: Followings are the reason to each blog separately to know that which is true and 
which one is myth: 
1. To be successful you have to be first: It is myth because success is depends on then 
situation of market, purchasing potentiality and desires of the customers instead of timing 
of entry.   
2. To be successful, you have to be cheaper: It is also myth because customers like to pay 
any value to those products which carry happiness to then whether the product is cheaper 
or costly.   
3. I’m a good cook, so I should start a restaurant: It is also myth because only skill could 
not be sufficient to start a business it also requires money, commitment, efforts, market, 
and resources.   
4. The customer is always right: In the concern of business, it is true that customers are 
always right because customer provides the information and guidance to the 
organizations by which the organizations product the products to fulfill the need of a 
customer.   
5. I’ll just open my store, and people will stream in off the sidewalks and buy from me: It is 
also myth because only opening of a business could not force the customers to buy a 
product but building a strong and fair relationship with the customers definitely makes 
extra pressure over the customers to buy from the store.  
6. It’s a cool idea. Everyone will love this: It is also myth that the idea of someone or a 
group would be appreciate by whole community members. But, the idea also helps to 
offer a new thing to customer for knowing their liking and disliking.  
Running Head: BUSINESS MANAGEMENT   3 
 
7. Ours is better, so we’ll be successful: It is true that quality helps to get win in market 
against the competitors.  
8.

Melissa Buehrlen Instructor Somers Business Economics 06/14/2013 Case Study 4; Business Myths Several blogs have pointed out what they called “business myths”. Some of these are: To be successful you...

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