Business Archives

What Causes a Train to Derail? A Close Look at the Ohio Disaster

What causes a train to derail? How common are train derailments in the U.S.? On February 3, a 150-car, Norfolk Southern freight train carrying vinyl chloride derailed in Ohio, sparking a massive fire and sending toxic gasses into the air. For years, rail unions have sounded the alarm that freight rail companies’ “speed over safety” mentality and drastic workforce cuts would lead to disaster. Read on to learn more about what causes a train to derail, including why derailments are happening more often in the U.S.

How to Assess Organizational Culture as a Performance Coach

Want to know how to assess organizational culture? What tools can performance coaches use? According to Sir John Whitmore, it’s important to assess organizational culture and your impact on it as a performance coach. In Coaching for Performance, he provides valuable assessment tools to help performance coaches achieve this goal. Read on to learn how to assess organizational culture as a performance coach, according to Whitmore.

How to Build Trust With Employees as a Leader

What are some good ways to build trust with employees? How can leaders connect better with their employees? To build trust with employees, performance consultant Sir John Whitmore suggests that leaders learn coaching skills to empower their employees and make the most of their potential. In Coaching for Performance, he provides coaching strategies for leaders hoping to build trust in the workplace. Read on to learn how to build trust with employees as a leader, according to Whitmore’s advice.

The Cost of Capital: 3 Factors That Influence Capital Lending

How is the cost of capital determined? What impacts capital lending markets? One of a business’s costs is its capital, which it usually borrows from capital lenders. This lending happens in a competitive market. In The Wealth of Nations, Adam Smith discusses three factors that influence that market: risk to the investor, profit on capital, and changes in supply chains. Continue reading to learn how the markets determine the cost of capital, according to Smith.

2 Factors That Influence the Cost of Labor (Adam Smith)

How are wages set? Why does geography affect the cost of labor more than the cost of goods? The natural price of a good changes in accordance with changes in any of the costs of production. In The Wealth of Nations, Adam Smith identifies labor as one of these costs. He discusses how supply and demand, as well as the living conditions of workers, influence the cost of labor. Continue reading to understand how the cost of labor operates in an economy.

What Is Natural Price? Adam Smith Explains the 3 Factors

What does it mean to get a “good deal” on a product? What’s the natural price of a good? When supply and demand are in equilibrium, goods will be sold for their natural price. Adam Smith explains that the natural price is the cost of bringing a good to market. He discusses this concept in his classic work The Wealth of Nations. Read more to understand natural price and the three primary costs that determine it.

The Cold Start Problem by Andrew Chen: Book Overview

How to Develop Your Success Consciousness

Want to read an overview of The Cold Start Problem by Andrew Chen? What is the network effect and how can it help your business? In The Cold Start Problem, Andrew Chen explains how to build a startup that uses the network effect to compete with the established giants in your industry. In the book, Chen offers tips on building a network-based business from scratch. Read on for an overview of Andrew Chen’s book The Cold Start Problem: How to Start and Scale Network Effects.

Adam Smith: Capital Grows a Nation’s Wealth in These 2 Ways

What role does self-interest play in capital lending? How is it good for the economy as a whole? According to Adam Smith, capital grows a nation’s wealth. He identifies two main reasons. First, the self-interest of the capital lender encourages them to invest in productive labor. Second, the self-interest of the lender guides them to invest in less-developed portions of the economy and help them develop. Keep reading to learn how lending capital for profit plays an essential role in growing the wealth of nations.

Why a Niche Targeting Strategy Works Best for Tech Startups

What is a niche targeting strategy? Why does this strategy work best for business growth, especially for tech startups? According to Andrew Chen, if there’s a secret to success in the tech industry, it’s a thorough understanding of the network effect. He claims that using the network effect together with a niche targeting strategy is one of the best ways to make your startup profitable. Read on to learn why a niche targeting strategy helps tech startups grow, according to Chen.

Adam Smith’s Theory of International Trade: It’s About Freedom

Do embargoes lead to smuggling? Does trade benefit both countries? Is a trade deficit a bad thing? Adam Smith disagrees with restricting international trade for three reasons. He argues that it incentivizes smuggling, redirects domestic capital towards inefficient industries, and prevents countries from entering into mutually beneficial trade relationships. Continue reading for an overview of Adam Smith’s theory of international trade.