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Any Business Students wanna help interpret this?

edited July 2009 in General
most-powerful-business-model.JPG

I found this on the internet, and some MBA prof described it as "the most powerful business model" out there but without any good explanation as to why. Anyone wanna take a crack at it so that we can actually apply it?

Comments

  • edited July 2009
    centralize?
  • edited July 2009
    Divide and Conquer?
  • edited July 2009
    Hmm.. I have no idea but i'm going to take a wild guess.

    Maybe it's a model on business communications networking?
    Now to explain a bit i guess. You have two diagrams. The circles represent people in the network. Person A-D are the first 4 circles vertically down in diagram one on the left side. Persons E-H are the next 4 circles on the right side of diagram one vertically downwards.

    Person A reports/ communicates with Person E and F.
    Person E responds to B. B responds to either F or G. This continues and what you have is a messed up communications structure in which no one knows who the primary source is ie ( the manager ). No one knows who to report to.

    In diagram 2 we have a central source so that each group can report to this central source and hopefully as a result the newer communications system will allow for better business planning and decision making and will enhance other factors such as productivity etc.

    That's my guess anyways... Probably not close to what it really means :P
    Diagram 1 is the one with all 8 peo
  • edited July 2009
    I think it's a culture corporations create or some form of brand loyalty/fan boys.

    Consumers stick to a brand no matter what they release or how shitty it is. An example would be Apple.

    Another thing that ties in would be the whole "culture" created around your products/corporations. Apple would also be another example. They make huge amounts of profits for each product sold because it's overpriced. It's overpriced because the marketing geniuses has created an entire image or culture around owning Apple products. It's become something of a social status. People has always wanted to identify with something, and buying Apple products gives you the illusion of you being hip, cool, laid-back or a struggling artist who writes screenplays at Starbucks. The black dots represents a culture, and those white dots represent consumers. It's powerful because you reaps in huge amounts of cash by making shitty products. You also have a bunch of shallow, brain-dead consumers that follows a culture/image you created, and you can manipulate them however you want.

    I don't hate Apple or people that owns Apple products, they just kind of perfected this and is a good example (note, I also understand that some people buy Apple products based on personal preferences, not conforming to anything, so relax). DeBeer cartel did this as well by taking useless rocks and making it into a pathetic representation of materialism in the 1930s and somehow having people buying into it and making it into a "tradition".

    Of course, I'm a CS student, so take it with a grain of salt.

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