Category Archives: Managerial Econ

Posts relevant to Managerial Economics.

Setting value, not price

Posted on October 1, 2013 by just2bruce | Leave a comment

This article from McKinsey shows us that we have to position products while anticipating what other firms will do. Marketing is a strategic game, and if we offer a product without considering what others will do, we could hurt ourselves. It’s an interesting analysis, and makes a lot of sense. How can we apply it in logistics?

Setting value, not price | McKinsey & Company.

Strike! at port terminals

Posted on May 19, 2013 by just2bruce | Leave a comment

Are strikes at ports force majeure events? and what are the consequences? This is an issue in shipping because a strike in a port backs up traffic– ships cannot load or unload, and cargoes are massively delayed. The result is that much money is lost. A lot more than if ground transport is involved, because you only have the choice of ocean or air modes, vastly different in cost and capability.

Here we see that force majeure is not really defined in law, and that economic loss is not a reason for force majeure– it is always a possibility in commercial transactions, and you are supposed to consider that possibility when signing a contract.

All About Shipping » Blog Archive » Strike! The impact on shipping of industrial action at port terminals.