iNM October, 2011 | Page 52

Risk and Return - Return is always directly proportional to Risk. Higher the risk, higher is the possibility of reaching the extremes – be it a flamboyant success or an eccentric failure. This is very evident from the profits/losses achieved by investors of financial markets. The two men, in the movie, went for such a risk where there was a very high chance of ending up as a wreck which could lead to losing their lives. They faced the crisis boldly and since things came their way, they were able to succeed. “Sound Strategy starts with having the right goal. – Michael Porter” where the concept of plan B is the heart of its business model. For serving the customer needs, they rely on a distinctive procurement strategy: Maintain modest inventory, rely on wholesalers, publishers for some of the orders, etc. So if the demanded item is not available with one source, they procure it and deliver to the customer from the other. In the movie, the circumstances had a lot of constraints to deal with. There was a high possibility that plans could go in vain just like that. In such a case, it is highly important for the VP operations to have suitable back up plans in place. But when his primary plan failed, he changed his strategy itself and devised a risky secondary plan. After the failure of Plan B, he was helpless. He could do nothing except sit and watch the crisis on the screen like any other spectator. “Only the tough & the persistent survive” In this highly competitive world of business, only those will survive who continuously keep reinventing themselves. For example, Apple always comes out to the market with innovative products to satisfy customer needs. The ‘Exciter’ factors of Apple products are the ones which leave the customers with a “WOW”. Their persistent research efforts make them a tough company to compete with. Prachi Garg Great Lakes Institute of Management,Chennai MOVIE REVIEW THE DEVIL WEARS PRADA “T In a fish bone diagram, it is essential to identify the correct problem/effect, else one would end up identifying wrong causes as well, ultimately resulting in producing an effective waste. In the movie, the goal of VP Operations initially was to save the company from losing one of its costly assets (Runaway Freight Train). The goal instead should have been focused on working on all the available options and then arrive at a decision whether to stop the train before Stanton Curve or derail it before Findlay. Since his initial goal itself was biased towards stopping the train at any cost, his strategies failed miserably. In the last moment when the train was crossing the Stanton curve, it almost seemed that the accident could not be avoided. But Frank and Will stayed firm to their commitment and worked towards avoiding the accident successfully. “The most successful people are those who are good at Plan B.”- James Yorke Successful people keep themselves ready for any circumstances. Even the most intelligent, at times, may not be able to make the best decision. This happens often due to the constraints or lack of information. In such cases, it is highly important to have atleast one proper back up plan ready. In the business world, Amazon is the best example 52 iNM VOLUME 1, October 2011 NMIMS Hyderabad In the movie, Will and Frank were persistent towards stopping the runaway train. They were really tough guys, did not give up their goal at any stage. These two factors helped them survive the crisis. “Stay calm and cool, but focused, especially in a crisis situation” A Crisis situation tests the patience of a person. Only the one who can withstand that pressure can emerge successful. In this context, when Frank and Will started chasing the runaway train, they managed to keep themselves cool. They were seriously involved in sharing each others’ personal stories. 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