Should Dr Chalmers listen to Dr Kahneman in framing the coming budget?
We lost an intellectual giant last week, Daniel Kahneman. Psychologist and Nobel prize winner in economics, he along with long term collaborator Amos Tversky, created what has become known as 'Behavioural Economics’. So what you say. In 2010 Kahneman...
Does analysis give you the truth?
It seems that 'the truth' is a malleable concept. We are overwhelmed by opinion masquerading as fact, economic and social models designed to deliver a predetermined outcome, managed correlation equated to causation, and market research that asks the...
The only way to solve a problem.
The only way to solve a problem, particularly a significant one is to understand the cause of the problem and eliminate that cause. Rip the band-aid off. Taking a short-term action to address a symptom of a problem is just kicking the can down the road....
The beauty of monopoly
Democratic governments have always spent time talking about creating regulations to control monopolies, or at least the profits that can accrue to the monopolist. In Australia, it has only been talk, and choices to sell public natural monopoly assets to...
Are the two FMCG gorillas at a crossroads?
The retail landscape is changing, even as the two retail gorillas hunker down and set about extracting more from the current model. Following are a few of the macro trends I see that will continue to erode the current model that has been so successful....
Four strategic tasks for the owner of a successful SME.
Success of an SME means they have crossed that shark filled river where most SME's fall over. They have sufficient scale to employ functional personnel to address the day to day running of the business, and are returning the cost of capital and a bit...
What is the ‘right’ price for your product?
This is one of the most common questions asked, particularly when configuring a new product. The 'right ' price will be the pricing model that delivers superior value to customers while delivering optimal returns to the seller. Developing a pricing model...
Why are supermarkets so hard to deal with?
Anyone dealing with Australia’s two supermarket gorillas knows how hard it is. You know the old adage: Question: Where does a 400 kg gorilla sleep? Answer: Anywhere they bloody like! Over the 45 years I have rubbed up against them, beginning as a young bloke...
Colesworth: Is it collaborative gouging or ruthless collaboration by oligopolies.
Collaboration between competitors is illegal, but tough to prove. It is also the natural state of affairs in an oligopoly. When a competitive market evolves over time into an oligopoly, the focus of management attention of the remaining oligopolists...
12 barriers to a successful grant application
Recently at a meeting of SME's, I found myself in a conversation about accessing government grants, initiated by a guest speaker. She was a very impressive woman with significant experience delivering grants from the Department of Industry. The notable...