The Five Deadly Business Sins

Peter Drucker has written an article in The Wall Street Journal commenting the past few years downfall of one once-dominant business: General Motors, Sears and IBM, to name just a few. But in every case, he says, the main cause has been at least one of the five deadly business sins-avoidable mistakes that will harm the mightiest business.

  • The first and easily the most common sin is the worship of high profit margins and of “premium pricing.”
  • Closely related to this first sin is the second one: mispricing a new product by charging “what the market will bear.”
  • The third deadly sin is cost-driven pricing.
  • The fourth of the deadly business sins is slaughtering tomorrow’s opportunity on the altar of yesterday.
  • The last of the deadly sins is feeding problems and starving opportunities.
  • Read more of this very interesting article here.

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