Crossroads

At the intersection of technology, finance and the Pacific Rim.

Tuesday, August 15, 2006

Strategy and Entrepreneurship

I am back after a week in Kangwando. I participated in the KDI School seminar on how to teach cases--teachers teaching teachers. All an effort by the school to improve continuously the skill in stimulating learning in the classroom.

There was an interview in the WSJ with Sunil Bharti Mittal, CEO and Founder of Bharti Airtel, one of India's largest cellular companies and most interesting question was as follows:

WSJ: What was the toughest decision that you had to make?

Mr. Mittal: Four years back, if you go into the history of Bharti Airtel, it was not a question of if, but when this company would collapse. Our stock was at 20 rupees (43 cents) compared with 380 rupees today. The whole market capitalization of the company was three-quarters of a billion dollars versus $16.7 billion today. This company had operations, it had revenues and it had brand. But it was dying because we were faced with unfair regulations. One decision we had to take was whether to stand up and fight with all that we had, or to lie on the ground and let the storm pass. Either you win or die, or conserve your energies for another day and retreat. We retreated. Then we rose, and rose very strongly, and came back.

In this case, energy equals capital. Most of the time, I see businesses pounding away, wasting precious resources during difficult times. Retreat and preserve and let others blast away at each other.

2 Comments:

Anonymous Jeong-hwan Choi said...

I perfectly agree with your opinion "Energy equals capital." Most of the top management decisions are based on the "Motivation" of themselves which can brak through all difficulties...

11:10 AM  
Anonymous Jeonghwan Choi said...

I perfectly agree with your opinion "Energy = Capital." Most of all leaders "Motive energy" can break through all difficulties in businesses. We can discuss more about "How we can improve the 'Energy' of leaders." That's what I hope to study more..!!

11:14 AM  

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