By Bengt Karlöf (auth.)

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Extra resources for Business Strategy: A Guide to Concepts and Models

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On the one hand we have the worker who performs the operations, and on the other the capitalist who finances them. Between these two we can interpose the executive who administers ongoing operations. In the view of many others, this is a static picture which focuses on routine operations and contains no creative elements at all. So it is perhaps not so surprising that the main body of creativity research has concentrated on scientific discoveries, technological inventions and works of art. If the businessman is mentioned in the literature at all, he is seen as the person who uses the creative end-product in such a way as to make money and generate profit.

By this I mean that the message to be communicated has not been properly thought out, and the quantity of communication is used to disguise its poor quality. In some situations form is more important than substance; this is truer in the United States, for example, than it is in Scandinavia. Formulation of the message must never be the main issue: the important thing is the intellectual substance of the message. Otherwise there is a strong risk that it will come out as empty blather that no-one will listen or pay attention to.

The idea is to make the cost of admission to the market place so high as to risk a negative return on the capital that must be invested. Entry barriers can thus be designed either to raise the admission fee or to increase the risk to the newcomer. Exit barriers, on the other hand, force business units to keep on operating in an industry where profitability is low or return on capital is negative. As you can see from the list above, exit barriers can be divided into three classes: socio-political, economic and emotional.

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