ENDS 101 Lecture 8
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Sustainable Competetive Advantage
Deciding Factors in job competition:
- GPA (academic success)
- Extracurricular activity (organizations, leadership, and pro-experience)
Market-RoR
On a market gradient (x-axis), company states can range from terrible to excellent Rate of Return (y-axis) ranges from high to low.
For example, Southwest is still making money in a terrible market, and when the market is good, they really make money. Other airlines are not doing so well... the only difference between the two companies is corporate culture (business model)
Corporate Culture
Board and Executive management puts forth corporate culture and creates a sustainable competative advantage.
People have certain "boundaries"
- circle of competence (zone of comfort)
- circle of indifference (zone of opposition?)
- circle of incompetence (zone of rejection)
Each circle represents employees' actions: great job, bad job but pays well, "I quit".
Overlay these circles on the Market-RoR graph. Most of the ideas that would solve the problem are in the zone of rejection since they are so radical.
Brainstorming normally takes place in the zone of comfort.