John Stieber - Profit is not a four-letter word : the real truth about what it is, where it comes from, how it improves the quality of life for everyone
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Profit is not a four-letter word : the real truth about what it is, where it comes from, how it improves the quality of life for everyone
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This book is available at a special discount when ordered in bulk quantities. For information, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Stieber, John. Profit is not a four-letter word: the real truth aboutwhat it is, where it comes from, how it improves the quality of life for everyone/John A. Stieber. p. cm. Includes index. ISBN 0-8144-7983-9 1. Profit 2. Markets 3. Quality of life. I. Title.
HB01.S693 1998 658. 15'5dc21 97-32858 CIP
1998 John A. Stieber. All rights reserved. Printed in the United States of America.
This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019.
Printing number
10 9 8 7 6 5 4 3 2 1
For Tonni
Profit is not a four-letter word
the Real Truth about what it is, where it comes from, how it improves the quality of life for everyone
JOHN A. STIEBER
Illustrations by Tom Clare
AMACOM
American Management Association International New York Atlanta Boston Chicago Kansas City San Francisco Washington, D.C. Brussels Mexico City Tokyo Toronto
title
:
Profit Is Not a Four-letter Word : The Real Truth About What It Is, Where It Comes From, How It Improves the Quality of Life for Everyone
author
:
Stieber, John.
publisher
:
AMACOM Books
isbn10 | asin
:
0814479839
print isbn13
:
9780814479834
ebook isbn13
:
9780585023458
language
:
English
subject
Profit, Markets, Quality of life.
publication date
:
1998
lcc
:
HB601.S693 1998eb
ddc
:
658.15/5
subject
:
Profit, Markets, Quality of life.
Page 1
The First Cup of Coffee in the Morning: Brought to You by the Pursuit of Profit
Describing the benefits that accrue from the pursuit of profit is not an easy task, because they are so obvious that we usually take them for granted. When our clock radios wake us in the morning to our favorite music mixed with reports about traffic conditions and the weather, we drag ourselves out of bed in our centralheated and air-conditioned homes and take hot showers. We then sit down with coffee that was automatically brewed when the clock radio turned on, eat precooked breakfasts that were prepared in microwave ovens, and read newspapers that were hand-
Page 10
in the arts, in the news media, or in politics.
For any business to create profit, it must engage in highly disciplined people activities. In many ways, this activity is like the activity of producing a great symphony, a well-written play, a fine painting, a vintage wine, a piece of sculptured glass, or a new scientific discovery. It demands excellence, delivers quality, and requires an abundance of creativity. In fact, the best businesspeople are more often than not the most creative.
Moreover, I believe that some of the greatest works of art in this world are the American farm, IBM, American Airlines, a Boeing 747, an Apple computer, a Ford Mustang, and the neighborhood grocery store. For a comprehensive list of these works of art in your community, just look in the yellow pages of your local telephone directory.
Page 11
Checking the Scoreboard: Profit as Information
Every morning before they go to work, millions of people, mostly guys, open up the sports page and check the scoreboard to see how their favorite baseball, football, basketball, or hockey team performed. If their team scored more points than the opposition, without looking at the statistics, they can predict with high probabilities that their team outperformed the opposition in runs, pitching, fielding, pass completions, number of baskets, and so on. In other words, just by looking at the score, millions of people have a lot of information about their teams.
And so it is with profit. As an information parameter, profit is one of the best barometers
Page 12
businesses have to rank the things consumers want. If there is more profit in producing personal computers than there is in producing calculators, then consumers are telling business that they want the one more than the other. Accordingly, businesses will shift their resources to comply with this ranking, and they will make more computers and fewer calculators.
Profit, or lack of it, is also a signal for businesses to enter or exit the marketplace. For example, from 1973 through 1980, when profit was high in the oil industry, there was a surge of entry by new companies. Since then, profit in the industry has declined, and a large number of companies have gone out of business.
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