Foreign Licensing


The method of going global through the use of contractual agreements is foreign licensing. Such an agreement grants foreign marketers the right to distribute a firm’s merchandise or use its trademark, patent, or process in a specified geographic area. These arrangements usually set certain time limits, after which agreements are revised or renewed.

Licensing offers several advantages over exporting, including access to local partners’ marketing information and distribution channels and protection from various legal barriers. Because licensing does not require capital outlays, many firms, both small and large, regard it as attractive entry strategy. Like franchising, licensing allows a firm to quickly enter a foreign market with a known product or concept. The arrangement also may provide entry into a market, which government restrictions close to imports or international direct investment.

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.

Why have Contracts?


Contracts are probably a necessary device in any kind of market economy where goods and services are exchanged by people acting in their own interest. People might not enter into agreements that call for some future performance unless they know some means exist to force other people to honor their promises.

It is also true that it would probably be impossible to have an industrialized, market economy without contracts. A manufacturer would be unable to do the kind of planning necessary to run a business if he could not rely on agreements with suppliers to finish the raw materials he needs to make the products. Similarly a manufacturer might not be willing to commit herself to buy raw materials or hire employees if she could not rely on buyers’ promises to buy her products.

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.

Muddled Communication


It is only when an organization fails to communicate effectively with its market place that problems are sometimes noticed.

The first response to a drop in sales can be an immediate call for a new identity of a new advertising campaign. Rebranding may be expensive but it can be an easier pill to swallow than brutally honest self-examination of core relationships.

Less than scrupulously honest communication companies will queue up to offload and organization’s cash if they think there is money to be made; but putting a new face on a sick organization is purely papering over the cracks.

Muddled communication has often been the first point of contact with new companies. Many companies prefer easy, con-confrontational action that they can take immediately to challenging questions and the need to may be think and behave in new ways.

Only when presented with unequivocal evidence are some companies prepared to take hard decisions, especially if it involves the agreement and support of peers—worse still—bosses.

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.

 

Attitude


Attitudes are hypothetical constructs, they cannot be seen, touched, heard, or smelled. Because attitudes cannot be observed, a variety of perspectives have developed over the years in attempting to describe what they are. Fortunately, there is now widespread agreement that the term attitude should be used to refer to a general and enduring positive  or negative feeling  about some person, object, or issue.

The effective component  is what is generally  being referred to when people use the word “attitude.” However, attitude theorists recognize two additional components, cognitive and conative. The cognitive component refers to a person’s beliefs (knowledge and thoughts, which sometimes are erroneous) about an object or issue (e.g., “Reebok shoes are more stylish  that Nike;” “Nike Air Jordans are high-quality basketball shoes”).

The conative component represents one’s behavioral tendency toward an object. In consumer-behavior terms, the conative component represents a consumer’s intention to purchase a specific item.

Attitudes are learned predispositions to respond to an object or class of objects in a consistently favorable or unfavorable way.

An attitude is characterized by progressing from “thinking” (cognitive), to “feeling” (affective), to “behaving” (conative).

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.

 

Termination of Agency Agreement


  1. Termination by expiration of the specified period in which the agent has to act. The courts say that the agency was for a “reasonable” time if no specific duration was stated in the agency agreement. The meaning of “reasonable time” is construed by the courts on a case-by-case basis, depending on the nature of the agency, the difficulty of accomplishment, and other controlling factors.
  2. Termination by specific agreement to do so between the principal and the agent.
  3. Termination by death or legal incapacity (insanity and so on) of either the principal or the agent. Most courts also hold that bankruptcy of either the principal or the agent terminates the relationship. However, the agent may still dispose of the principal’s property that is being held at the time of the bankruptcy.
  4. Termination through revocation by the principal. The agency contract is one that the principal is allowed to end at any time without giving any reason.
  5. Termination by withdrawal of the agent. This may be done at any time in an agency at will. If the agent is operating under a contract for a specified time of service or until a certain event is accomplished, the agent will be liable of damages to a principal who was not at fault in bringing about the termination.
  6. Termination by loss or destruction of the subject matter or by change of circumstances. The agent’s authority is lost if the subject matter is seriously disabled, lost, or destroyed.
  7. Termination by rescission. The general rules of law concerning rescission apply to agency contract.

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.

 

Public Policy


Public policy is a plan of action undertaken by government officials to achieve some broad purpose affecting a substantial segment of a nation’s citizens. It is also is what a government chooses to do or not to do. Governments generally do not choose to act unless a substantial segment of the public is affected and some public purpose is to be achieved. This is the essence of the concepts of governments acting in the public interest.

The role of government is extensive in most modern economies. Although there are vigorous debates about the size and specific actions of government, there is broad agreement that government has some appropriate role to play in modern life. As the world’s population increases, individual nations have more citizens whose needs have to be met and whose interests and concerns have to be reconciled into reasonable plans of action. These are the rules that government, whatever its specific form, plays in the modern world. Public policy, while differing in each nation, is the basic set of goals, plans, and actions that each national government follows in achieving its purpose.

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.

Thinking Before Signing a Franchise Agreement


A franchise agreement is a legally binding contract that defines the relationship between the franchise and the franchiser. Because the Agreement is drawn up by the franchiser, the terms and conditions generally favor the franchiser. You don’t necessarily have to agree to everything on the first go-round. Maybe you can negotiate a better deal. Before signing the franchise agreement, be sure consult an attorney. Here are some tips you must consider before signing the agreement:

  1. Are your legal responsibilities as a franchisee clear? Are your family members similarly obligated?
  2. Who is responsible for selecting the location of your business?
  3. Is the name or trademark of your franchise legally protected? Can the franchiser change or modify the trademark without consulting you?
  4. Has the franchiser made any oral promises that are not reflected in the written franchise agreement?
  5. What are your renewal rights? What conditions must you meet to renew your agreement?
  6. Do you have exclusive rights to a given territory or could the franchiser sell to additional franchisees who would become your competitors?
  7. Under what terms are you allowed or required to terminate the franchise agreement? What becomes of the lease and assets if the agreement is terminated? Are you barred from opening a similar business?
  8. Under what terms and conditions are you permitted or required to sell some or all of your interests in the franchise?
  9. Are you required to buy supplies from the franchiser or other specified suppliers? Under what circumstances can you choose your own suppliers?
  10. Has your attorney studied the written franchise agreement? Does it conform to the requirements of Government rules?

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.

Ethical Expectations and Public Values


Ethical expectations are a vital part of the business environment. The public expects business to be ethical and wants corporate managers to apply ethical principles—in other words, guidelines about what is right and wrong, fair and unfair, and morally correct—when they make business decisions.

In the global arena, ethical standards—and even what is meant by ethics—can vary from one society to another. In spite of differences in ethical meanings, cultural variation does not automatically rule out common ethical agreement being reached among people of different societies.

Human rights issues have become more prominent and important for business. For many years that pressure was exerted on South Africa’s political leaders to halt racially discriminatory practices of apartheid and its business leaders to challenge the South African government’s enforcement of the policy.

The question is not, ‘Should business be ethical?’ nor is it, ‘Should business be economically different?’ Society wants business to be both at the same time. Ethical behavior is a key aspect of corporate social performance. To maintain public support and credibility—that is, business legitimacy—businesses must find ways to balance and integrate these two social demands: high economic performance and high ethical standards. When a company and its employees act ethically in dealings with other stakeholders, they are improving the organization’s contribution as a social actor. When they fail to act ethically, there is the risk of losing the public support an organization needs to be credible and successful.

Business leaders are faced with the continuing challenge of meeting public expectations that are, themselves, always changing. Yesterday’s acceptable behavior may not be tolerated today. Many forms of harassment and discrimination were once common. Today, however, social standards make such actions unacceptable. Public expectations of service and ethical behavior are as relevant to a business as customer expectations regarding products such as automobiles and computers.

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.

Warranty


In general, a warranty is the assumption of responsibility by the seller for the quality, character, or suitability of the goods he or she has sold. The seller may assume this responsibility by agreement with the buyer. In this case the warranty is created by contract, and the rights of the buyer and the liabilities of the seller are contractual in nature. Such a warranty is called an express warranty. In addition, certain responsibilities for the quality of goods sold are imposed on the seller by Uniform Commercial Code. These warranties arise whether or not the seller has made express promises as to the quality of the goods. The warranties imposed by law are known as implied warranties.

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.

Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

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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