The Cobra Effect on business

The Cobra Effect on business

What is the Cobra Effect on business? It is certain that solutions and ideas must be found for all the natural crises facing us, and ideas and solutions must be based on studies and results, so thinking outside the box to solve any crisis facing us causes new crises to occur, and this is the best evidence of the Cobra Effect, or what is called the Cobra Effect, and this What we explain in detail in today’s article is the Cobra Effect on business.

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The Cobra Effect on business

  • Government or company management are often reckless when trying to address a particular problem.
  • They rush, and sometimes without adequate consideration, impose new policy or offer certain incentives.
  • In a move that best describes it, it is like poor quality tape that does not stand the test of time.
  • Or like a broken faucet that you try to block the water from and plug it with your finger to increase the pressure somewhere else, and the water leaks again.
  • Cobra Effect on Business Sometimes people are smart and reduce quality to save costs.
  • Without exhausting himself thinking about his position in the market in the long term.
  • Or shortens the supposed training period for salespeople, but what will happen to sales in the end? He often doesn't bother thinking about it.

What is the meaning of cobra effect?

  1. Cobra effect A well-known term that appeared when poisonous cobra snakes spread in the city of Delhi, India.
  2. It became a concern that the English government had to deal with as India was under British rule.
  3. So the British ruler had a smart idea to make the public the ones to solve the snake problem.
  4. Especially since many of them are familiar with how to deal with cobra snakes.
  5. This is by observing a generous reward for anyone who brings a dead snake and cobra. In fact, the British governor’s decision was to monitor a large reward.
  6. Indeed, people began struggling to find and kill the cobra snakes and rushed to the government headquarters to obtain the prize.
  7. But the unexpected happened. There were many people who became a profession in killing snakes, and it became their source of livelihood.
  8. Therefore, when the number of snakes began to decline, they rushed to breed them.
  9. Instead of the hunter looking for snakes, he goes to the person who raises these snakes, buys them, and then goes and gets his prize.
  10. Here the crisis expanded and the poisonous snakes spread and became like birds raised in homes. The British government learned of this, and its decision was to cancel the rewards program.

The story of the rat's tail - the Cobra Effect on business

  1. A similar story to the story of cobra snakes in India, but in Vietnam, where rats spread in the city of Hanoi.
  2. The French occupation had to deal with this problem, so they also offered a good reward for each rat killed.
  3. So that people would not bring mice to them, they asked people to bring the mouse's tail in order to seize the reward, but they discovered a new phenomenon, which is the spread of mice without tails.
  4. Where farmers cut the tail of the mouse and then leave it until it mates and increases the number of mice and thus increases the number of rewards.

Cobra effect in business

  • Crisis resolution must be carefully studied, knowing all aspects of the crisis, the results of the solution method, and whether the result is like the story of the Cobra effect.
  • Procedures in government are often complex and time-consuming.
  • So that a citizen, for example, cannot obtain a driving license without going through several destinations, and this is supposed to be to reduce errors, but what about speed and efficiency!!
  • This is definitely not a call to maintain any negative attitude or not face any problem.
  • But in order to avoid the “cobra effect,” officials, whether in government or business, must develop flexible plans that can properly handle the effects that might result if the first domino falls on its neighbor.

Incredible example! The Cobra Effect on business

In the Colombian capitals, Bogota and Mexico City, authorities have tried to ease traffic congestion by only allowing car owners to drive on a few days of the week.

This is verified using the final number on the license plate.

For example, only owners of cars with the last digit on their license plate in the range 1 to 4 are allowed to drive on Mondays and Wednesdays.

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What is the impact of Cobra on business?

  1. a result Cobra effect, people who had to drive every day began to buy more than one car.
  2. Instead, the family, consisting of a working husband and wife, had to buy four cars in order to be able to go to work every day, so the bottom line of this policy was more congestion and more pollution.
  3. Finally, back to the issue of government incentives, they are probably good.
  4. But sometimes it is misused by citizens, and in fact there is no solution to this situation except for all parties to realize that they need to cooperate with each other.
  5. Because this is the only way that will ensure that these actions achieve the desired results, otherwise everyone will sing alone and the symphony will certainly be a cacophony.
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