Beyond Profit Margins and The Unrelenting Work Ethic of Michael Jordan
☕ Hey! Sippers,
Here are this week’s notes!
Beyond Profit Margins
In today’s cutthroat business world, simply generating profits is no longer the sole concern for enterprises. The challenges faced by competitive businesses extend far beyond financial considerations. Let us imagine running a restaurant in Mountain View, where dozens of similar establishments compete for survival. To stay afloat, one must navigate through narrow profit margins, resulting in low wages for employees. Efficiency becomes paramount, leading to unconventional practices such as employing family members and utilizing children for menial tasks.
However, the problems stemming from fierce competition are not limited to small establishments alone. Even at the highest echelons of fine dining, where prestigious ratings and reviews dictate success, the pressure can be so intense that it drives individuals to extreme measures. This edition examines the detrimental effects of a competitive ecosystem and highlights the contrasting advantages of a monopoly, using Google as an example.
Surviving the Competitive Jungle: In a fiercely competitive market, businesses must constantly fight for their survival. Profit margins are often slim, forcing them to resort to cost-cutting measures to maintain affordability. This translates into paying employees minimum wage, leaving them financially constrained.
To maximize efficiency, small restaurants resort to employing family members, like Grandma at the cash register, and even having children wash dishes in the back. Such practices exemplify the lengths businesses go to in order to scrape by in a highly competitive landscape.
The Cruelty of Intense Competition: Even at the upper echelons of the culinary world, the culture of intense competition can have devastating consequences.
Renowned French chef Bernard Loiseau, who held three Michelin stars, famously said, “If I lose a star, I will commit suicide.” The rigorous standards and unrelenting pressure placed on chefs in pursuit of prestigious ratings and reviews can push them to their limits. Despite Michelin maintaining Loiseau’s rating, he tragically took his own life in 2003 when a competing French dining guide downgraded his restaurant. This grim incident sheds light on the destructive nature of competition and its potential impact on mental health.
The Advantages of Monopolies: In stark contrast to competitive businesses, monopolies like Google operate in a different paradigm. Unburdened by the need to compete with others, they possess greater freedom to prioritize their workers, products, and societal impact.
While Google’s famous motto, “Don’t be evil,” may partly serve as a branding strategy, it also reflects the mindset of a successful enterprise that can genuinely prioritize ethics without jeopardizing its existence. In the world of business, money can either be important or everything, and monopolists can afford to consider factors beyond financial gains.
The Power of Monopoly Profits: Competitive businesses are so fixated on their immediate margins that long-term planning becomes a luxury they cannot afford. The daily struggle for survival leaves little room for visionary thinking. However, there is one crucial element that can elevate a business beyond this brutal fight for survival: monopoly profits. By enjoying a dominant position in the market, monopolistic enterprises have the luxury to think beyond short-term gains. They can invest in research and development, focus on employee well-being, and address their impact on the wider world.
Via, Zero to One: Notes on Start Ups, or How to Build the Future.
The Unrelenting Work Ethic of Michael Jordan
Michael Jordan, widely regarded as the greatest basketball player in history, did not achieve his legendary status effortlessly. Behind his extraordinary skills and physical prowess lay an unparalleled work ethic that propelled him to greatness.
Despite facing setbacks and being overlooked by teams at various stages of his career, Jordan’s unwavering dedication to improving himself made him an icon of determination and resilience. This newsletter explores the lesser-known journey of Michael Jordan, emphasizing the immense hard work and mental fortitude that contributed to his unrivaled success.
From High School Cuts to NBA Draft Mishaps: Contrary to popular belief, Michael Jordan’s path to greatness was not without obstacles. In high school, he faced rejection when he was cut from the varsity team—an incident that many now view as a laughable mistake by the coach.
His dream of playing for his desired college, North Carolina State, was also shattered when he wasn’t recruited. Furthermore, two NBA teams passed on him during the draft. Hindsight may suggest their decisions were foolish, but at that time, he was simply Michael Jordan, yet to become the basketball legend we know today.
The Power of Discipline and Hard Work: Devastated by the high school setback, Jordan’s mother advised him to focus on self-discipline. He took her words to heart and embarked on a journey of relentless practice and improvement.
Rising before dawn, he would start his training before school, displaying an unmatched work ethic. Even at the University of North Carolina, where he played college basketball, Jordan continually worked on his weaknesses, diligently honing his defensive game, ball handling, and shooting skills. His dedication and willingness to outwork everyone amazed his coach and teammates alike.
The Unending Pursuit of Excellence: Jordan’s commitment to self-improvement persisted even after achieving remarkable success and fame. Following a loss in the final game of a season, he spent hours practicing his shots, preparing for the next year. This tireless devotion to his craft became legendary.
Former Bulls assistant coach John Bach described him as a “genius who constantly wants to upgrade his genius.” Jordan’s relentless pursuit of improvement was not limited to his physical abilities but also extended to his mental toughness and inner drive, which he believed played a pivotal role in achieving success.
The Mindset of Greatness: Contrary to common perception, Michael Jordan attributes his success not solely to physical advantages but also to mental toughness and an indomitable spirit. He firmly believed that the strength of one’s mind and heart outweighed any physical advantages one may possess.
While others may see his physical perfection as the sole reason behind his greatness, Jordan emphasized the power of mental fortitude and the relentless pursuit of excellence.
Via, MINDSET.
