Discounted Cash Flow


It is a useful conception from Discounted Cash Flows that they are future cash flows expressed in terms of their present value. The discounted cash flow technique employs this reasoning by evaluating the present value of a business’s net cash flow (cash inflows minus cash outflows). A simplified view of cash flow is “cash flow from operations,” which is net income plus depreciation charges, because depreciation is a non-cash charge against sales to determine net income. The present value of a stream cash flows is obtained by selecting an interest or discount rate at which these flows are to be valued, or discounted, and the timing of each. The interest or discount rate is often defined by the opportunity cost of capital—the cost of earning opportunities forgone by investing in a business with its attendant risk as opposed to investing in risk free securities

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Commitment to Action


Understanding the marketing concept is one thing; following through with the commitment to make tough decisions is quite another. Many companies stumble badly here. Companies with a superior marketing effort, on the other hand, repeatedly demonstrate their commitment to follow the marketing concept by their willingness to require cooperation from all functions, to invest for long-term goals, and to face up to deficiencies in product, price, or service.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Who Innovates?


Schumpter first suggested that small entrepreneurial firms were the sources of most innovations. Later he changed his view and suggested that large firms with some degree of monopoly power were more likely to be the sources of technological innovation. He argued that large firms have the production and other complementary assets that are necessary to commercialize an invention; have the size to exploit the economies of scale that are prevalent in R&D; are more diversified and therefore more willing to take the kind of risk that is inherent in R&D projects; have better access to capital that smaller firms; and, as monopolists, do not have competitors ready to imitate their innovations and therefore are more likely to invest in them. By shifting the focus to the type of innovation, however, whether incumbents or new entrants are able to introduce and exploit innovation is a function of whether the innovation is incremental—a function of how new knowledge and the new product are.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

The Concept of Service


If we open a new business, the key issue is how long we are planning. If all we want to do is make a quick buck and move on, there is absolutely no point spending a single penny we don’t absolutely need to. But that is not the route to creating an amazingly successful organization.

The only approach for an organization to take if it wants to become amazingly successful is to become highly effective and highly focused. And that doesn’t pay dividends overnight.

But no single working culture is right for every situation. Why should anyone spend money to create a future that they do not expect to be part of?

Why invest in intangible assets that are hard to value on the balance sheet such as staff, improving team moral, developing customer focus and lifting competence levels, if you expect to be moving on soon?

A working culture centered around the concept of service generally and customer service specifically is the most likely to deliver long-term amazing success.

An organization that wants to adopt a service-based working culture must however be ready for the long haul. It must have both the patience and the resources to get through the early stages in a market where market dominance and being the largest are critical whatever the future price?

Some organizations are better off starting with one working culture and then migrating to another when scale and success allow or demand it.

Planning to evolve or change our working culture is fine as an idea when those in charge are sufficiently switched on to the challenges of changing an organization’s culture: to act at the appropriate time and effectively instigate a culture shift in line with new market conditions.

Let’s not forget that the larger an organization is, the more careful it must be in choosing its working culture in the first instance. Larger organizations are always going to be harder to change; they are clumsy and less fleet of foot than their smaller counterparts. Larger organizations must change their working culture less often and less dramatically, so must put more time and effort into avoiding problems in the first place.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Take Risks


  • Think excellence. Great satisfaction comes from doing your best in every activity. Average performance is never good enough.
  • You are being copied by others in everything you do. So, set the kind of examples you want followed.
  • Speaking up is essential to leadership. Express yourself at every opportunity. Conquer fear by speaking up. You need other people to help you achieve your goals. So, win their cooperation.
  • Invest all the praise you receive.
  • Take 100 percent responsibility when things go wrong.
  • Coordinate the knowledge of other people.
  • Have the courage to take risks. Taking risks is as essential to success as breathing is to life.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Required Organizational Performance


Required organizational performance demonstrates that the same levels of performance will produce markedly different levels of success for different organizations; and in return, that the same degree of success can be achieved by different organizations putting in different levels of performance.

Required organizational performance is based on the interplay between two key variables and suggests that by linking these two variables we can predict the level of performance that an organization must deliver to succeed.

  • Duration of competition, defined as the period of time that an organization is actively planning for, that is to say the time they willing to wait until the benefits of their decisions start to materialize. Every decision that we make comes with an attached time scale – are we willing and can we afford to invest three years in a project, or do we  want results within the next three months or even the next three days?
  • Degree of competition, which reflects the openness of the marketplace  to new entrants and how fiercely other organizations are competing for the same customers. The degree of competition is determined by the market conditions.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Protectionism


When a government sees that local industry is threatened by imports, it may erect import barriers to stop or reduce them. Even threats to do this can be sufficient to induce the exporter to invest in production facilities in the importing country.

My Consultancy–Asif J. Mir - Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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