The Grid audiobook cover - The Decision-Making Tool for Every Business (Including Yours)

The Grid

The Decision-Making Tool for Every Business (Including Yours)

Matt Watkinson

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Categories:
EntrepreneurshipMoney & InvestmentsManagement & Leadership

If You're Curious About These Questions...

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Key Takeaways from The Grid

Learning Tools

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Mind Map

The Grid
Core Philosophy+
Three Interconnected Goals+
Three Navigational Factors+
Nine Elements of Success+
Systemic Interdependence+
Pricing Strategy+

Quiz — Test Your Understanding

Question 1 of 8
According to the author, what important lesson can business leaders learn from his experience with chronic knee pain?
  • A. Fixating on treating individual symptoms rather than looking at the holistic system prevents long-term solutions.
  • B. Hiring highly specialized experts is the only way to solve complex, structural problems within a company.
  • C. Drastic measures, like surgery or mass layoffs, are sometimes necessary to cut out unprofitable parts of a business.
  • D. Physical wellness and personal health are prerequisites for making sound, rational business decisions.
Question 2 of 8
What are the three interconnected ultimate goals that all businesses share, according to the Grid?
  • A. Innovation, Market Share, and Customer Satisfaction
  • B. Desirability, Profitability, and Longevity
  • C. Scalability, Efficiency, and Affordability
  • D. Awareness, Imitability, and Adaptability
Question 3 of 8
The author compares running a business to steering a ship at sea. What are the three unpredictable 'currents and winds' (factors) a business must constantly navigate?
  • A. Suppliers, competitors, and government regulations
  • B. Investors, employees, and technological advancements
  • C. Customers, the organization, and the market
  • D. Product quality, marketing budgets, and sales channels
Question 4 of 8
Why does raising the price of a product generally boost profits more effectively than increasing the volume of products sold?
  • A. Higher prices automatically increase a product's desirability and brand prestige in the eyes of consumers.
  • B. Customers are less likely to notice small price increases than they are to notice changes in product availability.
  • C. Producing a higher volume of goods usually decreases the overall quality of the product, leading to refunds.
  • D. Increasing volume raises material costs because you have to make more to sell more, whereas raising prices keeps material costs the same.
Question 5 of 8
When trying to protect a product's originality to ensure longevity, why might trade secrets be more effective than legal patents?
  • A. Patents require public disclosure of marketing strategies, while trade secrets do not.
  • B. Patents are expensive and eventually expire, while trade secrets cost nothing and can last indefinitely.
  • C. Trade secrets are recognized internationally by default, whereas patents are only valid in the country of origin.
  • D. Trade secrets allow companies to sue competitors for much higher financial damages than patents do.
Question 6 of 8
What crucial lesson about business longevity does the rivalry between action camera companies Contour and GoPro demonstrate?
  • A. The company with the lowest price point will eventually capture the entire market.
  • B. Developing proprietary technology is the only way to beat a well-funded competitor.
  • C. Expanding into multiple product categories too quickly will eventually bankrupt a start-up.
  • D. A business cannot survive if consumers are unaware it exists, even if it has the superior product.
Question 7 of 8
What does the story of Dell outsourcing its production to Asus illustrate about the interdependence of the Grid's elements?
  • A. A change in one element, like cutting costs through outsourcing, can negatively impact other elements like bargaining power and imitability.
  • B. Outsourcing always improves longevity by allowing a company to focus entirely on marketing and customer awareness.
  • C. Improving the customer experience is more important than maintaining a low price point in the technology sector.
  • D. Entering a new international market requires a company to completely abandon its original customer base.
Question 8 of 8
According to the book's final actionable advice, how should a business determine the price of its product?
  • A. By calculating the total production costs and adding a standard 20 percent profit margin.
  • B. By setting the price according to the value the customers attribute to the product.
  • C. By finding the exact average of all competitor prices in the current market.
  • D. By dynamically adjusting the price based on daily supply and demand metrics.

The Grid — Full Chapter Overview

The Grid Summary & Overview

The Grid (2017) identifies a set of factors that can make or break businesses. Rooted in a holistic approach, these blinks will help you evaluate business ideas, anticipate the impact of your decisions, and take advantage of changes in the market. Apply these principles in your own company, and you’ll be able to identify the true causes of problems rather than simply treating the symptoms. 

Who Should Listen to The Grid?

  • Entrepreneurs going through a sticky patch
  • Managers looking for a new approach to problem-solving
  • Business and economics students

About the Author: Matt Watkinson

Matt Watkinson is an internationally renowned business consultant. His first book, The Ten Principles Behind Great Customer Experiences, won the 2014 Chartered Management Institute’s Management Book of the Year Award. 

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