Hamburg Class - Prosperity Is Possible - Day One

 
Date:
February 3, 1990
Location:
Hamburg, Germany
 
 
 
 

Students: (----)

Student: (?) We are talking about business aspect. There is also a personal aspect to it but I will leave that to you to transfer that from the business aspect to your personal life , what YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. Bhajan said was that it is necessary to buy cheap and sell at a higher price. In business we call that value added, it starts with a supply side, here is your business and over there is the customer and that's way to evaluate source and it is important for you to understand that as you in business in here, in the middle you have a predecessor and someone who follows you and your part of this process which continues to all stages on different levels, so first you have to accept for yourself that you have one thought, one thought serving a big system.

The advantage of doing business and doing your own business is you can pick which business you want to be in. If you in this situation of a whole change, the profit that remains with you, depends on the forces which pull away the money and the value so it depends how forceful, how powerful, the suppliers are, how, how powerful your customers are, what other choices they have to buy called substitution and what other people can come into your line of business, these are the five forces determining your level of profit in, in this type of business.

We have to supply side, customer side, people entering your line of business, yeah, no, no, no people entering trying to enter also this, this type of business, potential competition. The days of substitution and the competition yourself that is already in the market, knowing that this situation of these five forces and then it changes in what depending on which business field you are in it's make a voice show, wise choice as to where you want to be entered. It is absolutely essential that a (?) sort of business you know what your scope you want to be working with, a scope that allows you to formulate career and strategy that allows you to sustain a competitive advantage, so would like to make an example on it how to choose the line of business? I assume you all know YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea and let's assume that a person who wants to be in YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea business and he thinks YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea is not enough he would like to augment his business whether something else and suppose it considers natural cosmetics is that the same line of business?

Student: No.

Student: No, why not?

Student: (----)

Student: It can be eaten, okay, so you are talking about the use do you have the same customers? Okay so they all will have, okay so the use is different, the customers are similar, okay I have got somewhat better here you have all customers they all drink YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea potentially, usually in natural cosmetics we have woman, so it's all, all customers, it's all, person, because it is not only the end customer but it also your immediate customer. The one who is actually buying from you, now with YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea this direct customer can be helped with stock as a help for store with natural cosmetics that can also be help with store because they diversify so when you are talking about your line of distribution these products are similar, now what are the criteria that you consider there is a question of substitution, what is the substitution for YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea?

YB: (?)

(Students laughter)

Student: That is what he thinks.

Students: (----)

Student: Okay, Himalaya tea what your customer think what's the substitution for them for YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea?

Students: (----)

Student: Herb tea, black tea, coffee, strong coffee,

(Students laughter)

Okay so what is the substitution for natural cosmetics?

Students: (----)

YB: Chemical cosmetic.

Students: (----)

Student: Chemical cosmetic, Nivea.

(Students laughter)

Exercise,

Students: (----)

Student: Okay so these products serve different needs and the sense that they have, they have to defend themselves against different substitutes so indicator that they are different lines of products. There are other criteria's manufacturing for example, what is important in manufacturing YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea it's the packaging you buy the spices, you packed them, you know the recipe and you sell them. It's a similar process with natural cosmetics you buy raw materials you package it in very simple way knowing the recipe and you sell them so someone who knows how to package YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea in a very efficient way should also have an idea of how to package natural cosmetic, someone distributing YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea knows about the working of the distribution channel (?) he also knows how distribution channels should work for natural cosmetics.

These were some criteria, which you can use to decide a line of business range of products you are targeting sit together and make sense, any specification might be other considerations but you give up similar way and decide it. What I would like to do is to lead you through the way of strategy development because I feel that while you start at business you have a, should have a very clear projection of what his strategy is going to be. Strategy is actually very simple it means how you can survive? How you tend to survive in this battlefield of the five forces, what you need for that you have to know the market, knowing the market I mean you have to know the science, the change, the trends, you have to know its segments, but segments of customers and products for example the car industry, car industry, car industry is one big field but you have different segments of customers, mercedes catering to high end well of the due people and the fiat thunder most of the students like people, not clear, okay what's the question?

Students: (----)

Student: Cars automobiles, so you want to look at the market and divide it up into pieces, which looks, which can be treated similar. Number two, for those of your strategy you know about, you have to know about customers what do they want, what do they need, what are their purchasing criteria so you want to know how to serve him best. What they want is not always what they need and what they want is not always what the guy is purchasing so go out and ask them it is very important that you have always a close contact to your customers that means don't rely only on your sales people that you go and checkout yourself be sure you get a very objected view this is one field to every sales organization likes to cheat on you. It is their job to serve the customer so they feel, they feel they know the customer best and they feel threatened if you doubt them.

Also when you look at the customer try to group them in customers with the similar purchasing by behavior that way you can cater more efficiently, it's the best of the due, we can gear your organization to serve one consistence group customers and to optimize it for this purpose, that much concerning customers now you know only on your own. We have competition; the competition is out to get you. So you have to know the focus, you have to know that strength and weaknesses and you should guess the strategy so you understand what is driving them, if your competitor is large company their aim mighty be to be very big but not to serve, every, every segment of the market so it can be your strength to be, to be very flexible and fill in all the initials that are left out.

If the strength of your competitor is his product then your strength might be at your service if the strength of a competitor is at cheap price it can be your strength to build up consistent quality so understanding what the competitor is after in order to optimize your own approach, once you know these factors and nobody of the outside world then you have to know the inside world, inside your company, and that means you have to know the cost side of it. The cost side means you have to be aware to cost structure meaning you have to know where the big cost blocks are, if your cost is in manufacturing or it's in service or it occurs through logistic you have to know, cost is often something static, if you have a cost accounting system it's a static view in order to as to understand the dynamics, you have to understand the cost driving factors, usually for volume, the more you sell, the cheaper it gets on a (?) but it's not only volume that is also complaint.

Side B

Something very, that is very difficult to measure and to express in terms of cost complexity can mean you have lots of variance of your products, you have a wide product range or you are serving many different countries or you have many different manufacturing locations, it is very important for you to see which of these describing criteria describing the business it (?) your cost so you can start with these criterion and optimize your, your business structure, you can leave our products in order to reduce complexity, or you can increase the number of products in order to increase volume but you should know what, what pays more it's the cause of increasing complexity, is that aspect of savings of high volume, in business the prices are also determined by the price level of competitors and in the long run that is often they turned by their cost so if you want to know if you are going to be in business for a long while you should know the competitor's cost of course you cannot know the competitors cost but proportionality not necessary to know the absolute value what matters is the relative cost position, knowing your value, knowing your own volume and their volume, knowing your complexity and their complexity and knowing the behavior of the cost you can estimate what their level of cost should be?

And just scoring it, once you have done these four types of analyses you are ready to position yourself in the market that two dimensions to position one dimension is your performance, livestock and the other one is the cost which you need to produce this performance let's suppose this is the industry average or cost and you can be below cost or above cost. This is the average performance and it can offer less or it can offer more then you find competitors up here they are, they are offering you cheap (?), they offer less performance and they have a better a cost position meaning they can offer better price you find competitors over there that offer premium performance with cost as advantage, you should pick, don't end up here.

When you offer lower performance at a worst price, of course you dream to be up here, but that doesn't usually happen, there are few companies that can sustain that position and only a few don't bet on being among them make a clear cut choice whether you want to offer performance or whether you all want to offer good price?

And then gear your organization to that it makes it total difference if you don't want to offer performance you don't need a service department, if you don't want to offer performance you don't need quality assurance but they are sure once you add the service department and the quality assurance department the additional cost will be recuperated by the additional price and not only that you gain a premium over that.

You cannot be stressed enough that it is so important to make this choice and usually businesses go out of business because they are not clear in their mind what they are after? Make the picture in your mind so you understand your position and you know where to go for so now you done the analysis, you know your position it's time to look for the alternatives and which way to go. What are the alternatives come to your mind? Counsel change, what often people when they find, find out they are in trouble with their business they try to do more of the same which bring him into vicious cycle because what they did so far brought me to trouble and doing more often it won't get them out, but sometimes this might be a good way, if your business is not in trouble doing more of the same can help, what people usually don't think about when they are in business, and they are having trouble that they can get out after it come they are so locked into serving that business, being with the business that they miss the point where they should quit, quit gracefully.

I put down two more alter, I put down two more alternatives which I call focus and expansion focus mean, means going back to the basic of your business and expansion meaning knowing in which way to improve to not to expand , in which direction to have products, in which direction to add customers, countries so these alternatives you always have value the alternatives, evaluate them and pick your choice so what he do when you have chosen an alternative? go and run.

Students: (----)

You, you think this alternative and setup you are making business plan this plan should include milestones, milestones including the person responsible for certain job and the date, it has to be completed, the milestones should be formulated in a way that you can check them, don't get away with bad formulations like increase business but say you want to gain two more distributors by the end of next three months so you set up the whole business plan and then act accordingly, but unfortunately the future usually does not evolve as we expect it to so you should know before you start what the critical points are, the critical points to your business plan that would lead to success or failure, he has set up a certain limit that these critical points may achieve or not.

Let's say your goal is to that the business plan depends that you get another fifteen customers by a certain date and you know the plan will fairly won't have profit when they are only five customers, note down these particular points put them in the top of your drawer and every morning you go to business you look in the top of the drawer, see if everything still okay.

Is any of the condition violated, and if not you will run and you go after business you go mean and forcefully, you don't need to hesitate because you mapped it all out, that you are sure have this contingency plan otherwise you don't see it attracts these are the points I feel are necessary to make good strategy planning and if you know them all and follow them all and to experience them all I am sure you will have a successful business. I want to give you at the end one last idea it is the idea of that the differentiation that is what YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. Bhajan call the identity of your business.

Finding the identity of the business is probably as difficult as finding your own identity and living it. In a business differentiation can mean that you have a unique product, and I like to compare those with the haven, outside the water can be rough, but within the haven the water can be very calm your business is the haven so what you are selling is calm water. the success, success in your business depends on the barriers, barriers preventing the water to be looked the same everywhere so when you are selling YogiYogi One who has attained a state of yoga (union) where polarities are mastered and transcended. One who practices the disciplines of yoga and has attained self-mastery. tea you have to make it unique and guard its uniqueness, this uniqueness can be many ways. It can be in the product self, it can be in the packaging of the product and it can be on in, it can be the way the product is delivered to you, just understand that every business having its own identity like a living being .

(YB's laughter)

YB: Be there.

Students: (----)

(Students laughter)

Student: And then, then a business has its own identity similar to a living being and it has its own worth and its own space, time and position, it doesn't mean it's worth or worthless or good or bad, it has its own being. Are there any questions? You mean I said it all?

(Students laughter)

YB: Very good.

(Students clap)

YB: Tomorrow we will discuss the project and the personality of individual, which is interrelated with a relationship with the commodity of the market and right to talk about analysis familiar talks into society so see you tomorrow.

Students: SatSat Existence; what is; the subtle essence of Infinity itself. Sat Naam , Sat Nam The essence or seed embodied in form; the identity of truth. When used as a greeting it means "I greet and salute that reality and truth which is your soul." It is called the Bij Mantra - the seed for all that comes. Sat Naam , Sat Nam The essence or seed embodied in form; the identity of truth. When used as a greeting it means "I greet and salute that reality and truth which is your soul." It is called the Bij Mantra - the seed for all that comes. NamSat Naam , Sat Nam The essence or seed embodied in form; the identity of truth. When used as a greeting it means "I greet and salute that reality and truth which is your soul." It is called the Bij Mantra - the seed for all that comes. Naam , Nam The manifested identity of the essence. The word derives from Naa-ay-ma , which means "that which is not, now is born." A Naam gives identity, form, and expression to that which was only essence or subtle before. It is also referred to as the Word. .

Student: (----)

YB: And please tomorrow bring paper and pencil because there will be lot drawing with the child, (?) thank you, now getup.

(Students laughter)

Goodnight.

• • •

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