Tag Archives: Business model

April 19, 2016 · 9:52 am

In Control

One of the interesting parts of The New York Times’ editorial makeup is the public editor. In addition to writing a few times a month, the public editor‘s role is to “handle questions and comments from readers and investigates matters of journalistic integrity. The public editor works independently, outside of the reporting and editing structure of the newspaper; her opinions are her own.” Margaret Sullivan is leaving that role and penned her last column over the weekend. In it she cautioned the following:

The New York Times logo

 (Photo credit: Wikipedia)

The old business model, based on print advertising and print subscriptions, is broken. A new one — based on digital subscriptions, new advertising forms, and partnerships with other businesses and media platforms — is in the works. There are hopeful signs, high ambitions and lofty plans, but certainly no guarantee of success.

I think we all recognize that. It’s interesting that the Times seems have reinvented itself as a digital media company that publishes a newspaper. That paradigm change affects everything – how content is created, the speed with which it’s made available, and most importantly, the business model. The Times isn’t the only organization to have done this. Major League Baseball Advanced Media (MLBAM), for example, has always seemed to think of itself as a digital services company that has Major League Baseball as its primary client, and not just as Baseball’s digital arm. Having run a similar organization for a league, I can tell you that the differences in how business is done based on that thinking are stark. Perhaps it’s time you stepped back and had another think about your paradigm?

Ms. Sullivan also struck a cautionary note:

As partnerships, especially with Facebook, the social media behemoth, become nearly impossible to resist, The Times shouldn’t let business-driven approaches determine what readers get to see. In dealing with Facebook and other platforms and potential partners whose businesses revolve around algorithms, it’s critical that the paper makes sure the news that readers see is driven by the judgment of editors concerned about journalism, not business-driven formulas that may only reinforce prejudices.

In other words, be who you are and service your readers.  Don’t let others control you and broaden your thinking about the best way to solve your customers’ problems. I think that’s a good mantra for any business.  You?

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April 8, 2016 · 9:42 am

Waste Not

Foodie Friday, and the topic this week is a better bottom line. I went out for breakfast this morning. As I ordered, the server asked me if cinnamon toast was OK. I replied that I didn’t care for any toast at all, thanks. When my breakfast showed up a few minutes later, the toast was parked right on the plate along with some apple butter. I’m sure it would have been delicious but it went uneaten.

Toast, toasted

(Photo credit: Wikipedia)

The obvious business point is that food – and therefore margin – was wasted. No business can afford to throw resources away. There are some less obvious points as well. I looked at the check – there was no notation on it to hold the toast, so clearly the blame lies with the server and not with the kitchen. Was the server paying attention? What if the customer had expressed a concern about a food allergy and that concern wasn’t passed along to the kitchen?  While my server was quite attentive, refilling the coffee as it disappeared and providing milk as requested instead of the prepackaged cream, she didn’t handle the single most important part of her job – getting the order right.

I don’t mean to blow what is a relatively minor error into an indictment of this server.  I do want to use it as an example of how minor errors can have an impact on the bottom line if they persist.  Wasted resources, inattentive sales reps, and unhappy customers are the kiss of death in any business.  Who knows how many other orders of toast or grits or potatoes went out of the kitchen, only to come back untouched and tossed.  How often does something similar happen in your business?

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Filed under food, Helpful Hints, Huh?

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March 11, 2016 · 10:02 am

Off The Fairway

I read a sad article this past week and it’s the topic for our Foodie Friday Fun today.  Fairway is one of my favorite markets.  In addition to having a huge selection of groceries and produce, both organic and non-organic, the prices for most things are reasonable.  The store began as a fruit and vegetable stand in the early 1930’s and has grown into a chain of fifteen stores spread across the New York Tri-State area.  That expansion, however, didn’t begin until the mid-1990’s, and really only took off after the chain was purchased by some private equity folks.

Fairway Market

 (Photo credit: Wikipedia)

According to the article I read from Grub Street, the chain is in dire straits.  It has a huge amount of debt and, as the article says:

Almost everyone agrees that a confluence of issues — including an overly aggressive and poorly executed expansion plan and rising competition in the quality-produce business — are the reasons Fairway is now in crisis. “It was a perfect storm,” says a former executive for the company.

Those are lessons for any business.  First, the systems that support one or two stores were inadequate to support many more.  The chain is having issues managing its inventory, and as any retail business knows, inventory management can make or break the operation.  The Point Of Sale system was antiquated, further compounding the inventory problem (how can you manage supply when you don’t have an accurate picture with respect to what’s selling?).  Most importantly, the market changed.

One of Fairway’s primary appeals was the availability of unique ingredients and products.  They have extensive meat and fish departments that often provide hard to find cuts at good prices.  The problem is that others are now doing the same and Fairway rested on their laurels rather than pushing to stay ahead of the pack.  All of those issues might be found in any business that allows success and rapid expansion to disrupt the processes and execution that brought that success in the first place.

It’s easy to think that it can’t happen to your business, and it won’t as long as you continue to attract talented, knowledgeable staff (Fairway couldn’t find enough to keep up with expansion), pay attention to your systems, execute well, and listen to the market (and your customers).  Easy to say, I know, but that’s why they call it work!

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