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You are here: Home / Continuous Improvement / Game Theory – Keep Strategic Aim

Game Theory – Keep Strategic Aim

December 13, 2011 By mco Leave a Comment

All employees must work to increase sales, regardless of job function.

It’s time to remember:
BAS=Book-a-sale • Save a Buck!

What’s good for the business is good for the Family.

Harvey Mackay, author of The Mackay MBA of Selling in the Real World, is founder and chairman of the Mackay Mitchell Envelope Company. He has written six New York Times bestsellers, including the #1 Swim with the Sharks Without Being Eaten Alive. When asked how many Sales people do you have?” I reply that we have “500”. “WOW!” is the usual response, followed by “How many employees do you have?” My answer is the same: “500.”

No business = no jobs • more business = more jobs!

To me, job titles don’t matter. Everyone is in sales. It’s the only way we stay in business.

We manufacture a product that’s been around in a similar form for hundreds of years. Nobody stops me on the street and says, “Gee, what a great envelope you guys make.” The truth is much of our product line is a commodity with very competitive pricing. We have differentiated ourselves over the years as high quality, direct mail envelope manufacturers, but sometimes it is not enough.

All employees have one goal. Sales.

Our employees understand that whether or not they interact with customers, they have to put their best foot forward all the time. Regardless of the job description, every employee represents the company and has a keen interest in seeing it succeed: No business = no jobs.

This concept is not really news to employees. After all, they are customers somewhere too. They know how they like to be treated. They know what inspires their loyalty, and what makes them move their business to another vendor.

Other concepts are more difficult to understand; consider game theory. Children have always played games. Today colleges and universities teach Game Theory. Business strategist’s with the aid of computers use game theory. They start with these key considerations:

  • All games, problems, business situations are composed of distinct phases-opening mid-game and end game.
  • All of the options cannot be analyzed during the early phases of the game, because the mind lacks the processing power and short term memory.
  • To overcome these limitations experts use patterns or precedents rather than logic.
  • To win consistently requires building a larger lexicon of patterns. (computer analysis shows a Grand Master Chess player recognizes 3 to 4 times the patterns as an average player)

 

Game theory in business is the study of competitors, how they act, react and interact. A key in every situation is to maintenance of strategic aims, while managing operational, situational events. This loss of strategic aim, this shift of resources and focus has been linked to lost battles, sales and accounts.

BAS-book a sale-Save a Buck- stay focused.

What’s good for the business is good for the Family.

More Profitable business means more jobs!

Filed Under: Continuous Improvement, Sales Tagged With: business, game theory, harvey mackay, interact, react, sale, strategic aims, successful strategic

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