Category Archives: Directing Business

Why Knowledge is Not Power

Today, knowledge is not power, but sharing knowledge is. If you look at the traditional business hierarchy—the same one adopted from the militaryyears ago—the top of the pyramid represents the C-suite, the founders, or those who have the most influence by way of sheer rank or tenure. But does this make sense? Executives at the top of the pyramid must (theoretically) know as much as possible about the company in order to run it effectively and to make the most informed decisions. But what happens as you traverse downwards through the ranks toward the lower levels of the pyramid?

Knowledge sharing is what empowers people to make accurate and timely decisions.

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Focus or diversify?


PVR began its innings in the movie exhibition business by introducing world-class multiplexes in India and went for a ‘related’ diversification into the high-risk high-return business of film production. It decided to get out of the movie making business post the 2012 release of Hindi movie Shanghai because it doesn’t see this as a viable business opportunity for the long term. HCL Infosystems, our second example, said recently that it will phase out its manufacturing business over the next few years to improve margins and increase organisational efficiency. The company will instead focus on strengthening the services and distribution verticals. HCL Infosystems CEO and managing director Harsh Chitale has been quoted in the media saying HCL “will be in PC distribution and in after sales services but will not manufacture HCL branded products in the future”.

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