Opportunity Cost: Making a choice means sacrificing something else at the same time because we can’t have everything. If the value of what is given up is significant, then the choice incurs a relative loss, and it is up to the CEO to recognize this as a cost. In reality, whether I am aware of the opportunity cost or not, it still impacts my current financial situation. However, to calculate profit or loss as an opportunity cost, there must be a future opportunity to forgo the current choice and select an alternative. No one should keep repeating the cycle of giving up and choosing without knowing whether the next decision will be beneficial or not. Giving up is worthwhile only when the next option is good. - Joseph’s “just my thoughts”
The number of gas stations along the road decreases as vehicle mileage increases. If you do not understand your business ecosystem and only manage it diligently, the consequences will stay with you. A gas station is a subordinate part of a car. Therefore, changes in car performance have a ripple effect on many related industries. I must constantly monitor and study the ecosystem in which I operate my business and decide how to respond when changes happen. The shift from internal combustion engines to electric vehicles also impacts gas stations. The world is changing rapidly right now. - Joseph’s “just my thoughts”