Skip to main content Accessibility help
×
Hostname: page-component-77c89778f8-7drxs Total loading time: 0 Render date: 2024-07-19T04:48:50.447Z Has data issue: false hasContentIssue false

13 - The sweet spot

from Part 2 - The hidden art of management

Published online by Cambridge University Press:  05 June 2014

Robert Bittlestone
Affiliation:
Metapraxis Ltd
Get access

Summary

The term originally referred to various pieces of sporting equipment, notably cricket and baseball bats and tennis racquets. When hitting the ball, the bat (for instance) will rebound, but there is a location along the bat where this force is completely balanced out by the turning force of the bat. If the ball is hit closer to the end of the bat, the grip of the bat will try to rotate forward out of the batter's hands, whereas if the batter hits it closer to the handle, the bat's tip will try to rotate forward. There is a small ‘sweet spot’ where these two tendencies cancel out. The ‘sweet spot’ location on a given baseball bat varies however it is approximately 6½” from the end of the barrel.

Wikipedia

In this chapter we are going to use simulation models as we did in Part 1, but there is a major difference in the way in which you will be taking business decisions. You will recall my caveat at the end of Chapter 10.

Finally, while you have been playing with this simulation you will undoubtedly have noticed that it contains some attractive but most improbable simplifications. For example, you are permitted to set a price mark-up as high as you like (by setting your own gross profit margin), while at the same time you can also set your sales revenues to whatever value you want. So there doesn't seem to be any connection in this model between setting a higher price and suffering from a consequent drop in sales volume.

Type
Chapter
Information
Financial Management for Business
Cracking the Hidden Code
, pp. 85 - 92
Publisher: Cambridge University Press
Print publication year: 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

  • The sweet spot
  • Robert Bittlestone
  • Book: Financial Management for Business
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9780511778865.016
Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • The sweet spot
  • Robert Bittlestone
  • Book: Financial Management for Business
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9780511778865.016
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • The sweet spot
  • Robert Bittlestone
  • Book: Financial Management for Business
  • Online publication: 05 June 2014
  • Chapter DOI: https://doi.org/10.1017/CBO9780511778865.016
Available formats
×