When a friend went to Wharton University of Pennsylvania, economics lecture given by Professor Richard Bromm, a professor who is also wealthy from family heritage and his talents classify fund family companies. One of his lectures is that the discussion of Economic Theory in business practices should not be mixed because the theory often confuse too many factors and too many books often conflicting and confusing each other. Business is the practices of a collection of theories, from the thoughts of the business. If it all depends on the theory, the work would benefit if treated the professor of business management or theorist.
While most professors still live in the adequacy and not luxuries like the business. That is why if we want to learn and express Economic Theory, we must perform consistently and should not be mixed with slurry with business practices are complex and constantly changing: DYNAMICS.
Prof. Bromm also noted that in practice there is always business and changes very fast dynamics. If we use a theory that is outdated, obviously will bring destruction. That is why successful entrepreneurs are often entrepreneurs who have experienced bankruptcy, but bounced back. Richard Li, the son of Li Ka Hsing Tycoon from Hong Kong lose billions U.S. $ in the IT business after his name skyrocketed by success in some profitable business. But Richard Li still face loss of business and sticking to the possibility of future business will benefit. It is precisely the courage to take risks and courage to change the paradigm that makes the business can reap the benefits.
Obviously, in his lecture Prof. Bromm suggested that the paradigm will change continues today, and promising business will also change. Anyone who knows the business of IT within the 1980′s? IT Business was not too well known in those days, even Multilevel Marketing business has not grown, and that there is traditional, then Franchise businesses are still promising to spread around the world: although it looks vaguely similar paradigm but we should still be wary: the paradigm is always change with the new discoveries. If we imagine how the business before the invention of the steam engine, where the concentration of business is product agriculture, textiles and textile-making enterprises transform the industry into the auto industry: Toyota is a manufacturer of textile machinery and managed to become one of the car manufacturers
world’s largest.
That said, theory had to be well studied and there are always theories that contradict each other because of the paradigm, the time factor, the factor of economic growth and also economic factors which it applies. The American economy is very different to other countries economies. We just look at how Fast food is now sold all: Big Mac, KFC, and some of the Franchise from America, Japan and Europe. In 1970s sellers with franchising mostly bankrupt. And only in 1980 that’s kind of KFC foods, then Italy and the current food restaurant with dishes franchising mushroomed in major cities in the world.
