Bloggy Business Today

While many of us are heaving a sigh of relief on the recent events that saw oil prices going below $115, it is still far from normalizing to the prices that we had enjoyed some months back. Apparently a lot of political issues have been the cause and bordering nation disputes have likewise made oil prices to where it is today.

There are two points for discussion here. Let me enumerate them regarding the current oil price frenzy.

Russia’s invasion of Georgia
While we are celebrating, turn around and look at the oil price in the market. They are not slowly spiking up and a lot of it is due to the current conflict between Russia and Georgia. For the record, Russia is one of the contributing nations towards oil needs in the world and apparently they are now in semi-war with the United States.

With that said, we are slowly getting the feelers. The oil prices are spiking up in preparation for another crisis and if the dispute with Russia is not settled, we may just see another round of oil price increases. Something we do not like but a reality we must face.

Who are responsible for Oil Price?
Oil companies command prices but not depending on supply but more on how they negotiate through contracts. Similar to business, negotiations and set prices are agreed upon depending on how much and how many barrels of oil will be exported from one destination to another.

Unlike what most of us think, oil price hikes are not always signs of oil shortage. Sometimes you have to audit the oil companies closely to get the real score. Sad to say, this is a reality and it is something that we can say that has originated from our own selfish professions in depicting business and focusing on making money.

Source

[tags]oil_price_hikes, current_oil_price, business_negotiations, oil_shortage, oil_companies, oil_prices, professions, invasion, conflict, russia, making_money, contracts[/tags]

This is the first in an ongoing series about Stephen J Covey’s landmark book The Seven Habits of Highly Effective People

If there ever was a bible for those in the business world, it is The Seven Habits of Highly Effective People. Startling in its simplicity and vast in the scope of industries and professions to which it can be applied, the book is a must-have for both new businessowners and those who have been in business for years.

In the the book’s first chapter, Covey talks about the familiar Aesop’s Fable about the goose and the golden egg.

Covey breaks down this classic story into its most basic business principles. At the end of the story, it becomes clear that the farmer has put too much emphasis on the golden egg and not enough on the goose that produced it. For the purposes of Covey’s analogy, the golden egg is the asset (which he labels “P” for production) and the goose is the resource that produces the asset (labeled “PC” for production capability).

Covey stresses the importance of having a P/PC balance in running your business. Too much of either will set you up for failure. In many cases, businesses tend to overemphasize their product or service at the expense of the resources that go into its production.

For example, if you’re selling ice cream cones, you might not want to make too much ice cream at once. Or produce too many flavors if the consumer demand for it isn’t quite there yet. Conversely, if you spend too much on your employees (human capital) or ice cream making equipment, you might not have enough money left to make sure you are still able to provide a quality ice cream product.

Ideally, your goal as a business owner should be to strike a balance between your product and your means of production. Ultimately, these two factors should work in concert with one another. If you can do this consistently, you’re going to be well on your way to success in any business you choose.

[tags]seven_habits_of_highly_effective_people, golden_egg, businessowners, business_principles, business_world, business_owner, professions[/tags]

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