Public Policy and Courts


Public policy is a broad concept that is impossible to define precisely. Perhaps the only realistic way to define it is to say that a court’s view of public policy is determined by what the court feels is in the best interests of society. Public policy may change with the times; changing social and economic conditions may make behavior that was acceptable in an earlier time unacceptable today, or vice versa.

There is therefore no simple rule for determining when a particular bargain is contrary to public policy and illegal. Public policy includes immoral and unethical agreements, even though they may not call for the performance of an illegal act. The courts have broad discretion in ruling on questions of public policy, and the discretion can provide the legal system with a degree of healthy flexibility. However, the courts may differ in their views of what constitutes desirable public policy—a difference that can make  a contract legal in one state/province and illegal in other.

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.

Bargaining Power of Suppliers


Increasing prices and reducing the quality of products sold are potential means through which suppliers can exert power over firms competing within an industry. If a firm is unable to recover cost increases through its pricing structure, its profitability is reduced by its suppliers’ actions. A supplier group is powerful when:

  • It is dominated by a few large companies and is more concentrated than the industry to which it sells;
  • Satisfactory substitute products are not available to industry firms;
  • Industry firms are not a significant customer for the supplier group;
  • Suppliers’ goods are critical to buyers’ marketplace success;
  • The effectiveness of suppliers’ products has created high switching costs for industry firms, and
  • Suppliers are a credible threat to integrate forward into the buyers’ industry. Credibility is enhanced when suppliers have substantial resources and provide the industry’s firms with a highly differentiated product.

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.

Theory of Incapacity


The basic reason for holding that insane persons lack the capacity to contract is that we presume such persons are unable to bargain effectively with those who do not share their disability. Some countries treat drunken persons like insane persons if, the time they entered the agreement, they were so drunk that they were unable to understand the nature of the business at hand.

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.

Negotiating for Change


Occasionally, in any change effort a manager may run into another kind of roadblock: he/she may require the cooperation and support of managers in other departments and divisions, but may have no formal authority over them. Attempts to influence or persuade them  to support change may fail because the change may involve a perceived loss for the other managers, this could be loss in status, power, authority, prestige or prerequisites. Under these circumstances, it is not in the self-interest of those managers to support the change. Situations like these make the management of change explicitly political because, in order to gain their support, the manager may have to do some bargaining. In other words, when influence and persuasion fail, a manager may need to mobilize support through negotiation. Many managers, particularly those with technical backgrounds, find this process distasteful because it seems irrational. However, there is little that is irrational in these situations and they arise out of calculated self-interest. Just as there are sound scientific principles to influence and persuade people, negotiation and bargaining can also be based on logic and science. While part of negotiation—like management—is art, most of it is amenable of scientific analysis.

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 Drive for Speed


The ‘time culture’ can impose unrealistic deadlines upon those who are charged with the responsibility for delivering improvements. When a supply chain is improved, the single company may be no more able to achieve a tangible impact upon the external environment than it can deliver all the value that is sought by a final customer. When others are involved, there is likely to be bargaining and negotiation.

Environmental initiatives should not result in the pressure for speed or ‘response’ driving out the long-term thinking that is required. Assuming ‘results’ are required, these might best be achieved as a result of flexibility within the framework of a longer term relationship.

Today’s craze can be tomorrow’s memory. Too many managers assume that trends will continue longer than subsequently turns out to be the case. With many environmental and social policies taking many years to have a significant impact, companies face a dilemma similar to that encountered by those seeking to change attitudes and behavior. By the time the outcomes initially sought have been achieved, the requirement may have changed. Will there be a backlash when people count the costs? Will they become bored?

Attempts to deal with ‘isms’ can open a Pandora’s box of dashed hopes and unfulfilled expectations, especially when initiatives are not thought through. Enough noise may be raised to alarm some, while not enough is done to appease or deliver to others. Companies should beware of cosmetic programs.

Winners assemble a comprehensive, complementary and coordinated set of initiatives, embracing all the parties involved, that are likely to have a significant impact upon an environmental or social issue. They achieve significant changes of attitude or behavior, because all the various change elements that are necessary have been put in 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.

Analyzing Current Situation: Checklist


Phase 1: The Environment

  1. What is the state of the economy and are there any trends that could affect the industry, firm, or marketing strategy?
  2. What are current trends in cultural and social values and how do these affect the industry, firm, or marketing strategy?
  3. What are current political values and trends and how do they affect the industry, firm, or marketing strategy?
  4. Is there any current or pending federal, state, or local legislation that could change the industry, firm, or marketing strategy?
  5. Overall, are there any threats or opportunities in the environment that could influence the industry, firm, or marketing strategy?

Phase 2: The Industry

  1. What industry is the firm in?
  2. Which firms are the major competitors in the industry and what is their annual sales, market share, and growth profile?
  3. What strategies have competitors in the industry been using, and what has been their success with them?
  4. What are the relative strengths and weaknesses of competitors in the industry?
  5. Is there a threat of new competitors coming into the industry, and what are the major entry barriers?
  6. Are there any substitute products for the industry, and what are their advantages and disadvantages compared to this industry’s products?
  7. How much bargaining power do suppliers have in this industry, and what is its impact on the firm and industry profits?
  8. How much bargaining power do buyers have in this industry, and what is its impact on the firm and industry profits?

Phase 3: The Firm

  1. What are the objectives of the firm? Are they clearly stated? Attainable?
  2. What are the strengths of the firm? Managed expertise? Financial? Copyrights or patents?
  3. What are the constraints and weaknesses of the firm?
  4. Are there any real or potential sources of dysfunctional conflict in the structure of the firm?
  5. How is the marketing department structured in the firm?

Phase 4: The marketing Strategy

  1. What are the objectives of the marketing strategy? Are they clearly stated? Are they consistent with the objectives of the firm? Is the entire marketing mix structured to meet these objectives?
  2. What marketing concepts are at issue in the current strategy? Is the marketing strategy well planned and laid out? Is the strategy consistent with sound marketing principles? If the strategy takes exception to marketing principles, is there a good reason for it?
  3. To what target market is the strategy directed? Is it well defined? Is the market large enough to be profitably served? Does the market have long-run potential?
  4. What competitive advantage does the marketing strategy offer? If none, what can be done to gain a competitive advantage in the marketplace?
  5. What products are being sold? What is the width, depth, and consistency of the firm’s product lines? Does the firm need new products to fill out its product line? Should any product be deleted? What is the profitability of the various products?
  6. What promotion mix is being used? Is promotion consistent with the products and product images? What could be done to improve the promotion mix?
  7. What channels of distribution are being used? Do they deliver the product at the right time and right place to meet customer needs? Are the channels typical of those used in the industry? Could channels be made more efficient?
  8. What pricing strategies are being used? Hw do prices compare with similar products of other firms? How are prices determined?
  9. Are marketing research and information systematically integrated into the marketing strategy? Is the overall marketing strategy internally consistent?

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.

Failure in International Business


Failure overseas rarely results from technical or professional incompetence. Multinationals take their international business seriously and typically send abroad high achievers who have proven skills and expertise. But their success is usually in their home countries, where their skills, style and attitude may be exactly the opposite of what will work overseas. Employees’ ignorance of or inability to adjust to foreign ways are usually what cause problems.

In one country people know in vivid details the colors, designs and sounds that appeal to various customer groups. Careerists climbing the corporate ladder study intently the values and norms that characterize their company’s “culture” so that they can maneuver successfully toward the top. Negotiators approach their bargaining table with a rich understanding of what motivates their adversaries. When it comes to foreigners, however, people see only silhouettes. Overseas many foreign companies approach their customers, colleagues, and employees with an ignorance that would be unthinkable on home ground. They are willing to transact business with foreigners without understanding who they are, what makes them tick, how they view the world and how their corporations. Because they do not look behind the foreign mask, their approach to international business is often like shadow-boxing. They deal with imaginary targets.

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.

Management by Objectives


To provide a framework within which to evaluate subordinates’ behavior and, in particular, to allow managers to monitor progress toward achieving goals, many organizations implement some version of management by objectives. Management by objectives is a system of evaluating subordinates for their ability to achieve specific organizational goals or performance standards and to meet operating budgets. Most organizations make some use of management by objectives because it is pointless to establish goals and then fail to evaluate whether or not they are being achieved. Management by objectives involves three specific steps:

  1. Specific goals and objectives are established at each level of the organization. Management by objectives starts when top managers establish overall organizational objectives, such as specific financial performance targets. Then objective-setting cascades down throughout the organization as managers at the divisional and functional levels set their objectives to achieve corporate objectives. Finally, first-level managers and workers jointly set objectives that will contribute to achieving functional goals.
  2. Managers and their subordinates together determine the subordinates’ goals. An important characteristic of management by objectives is its participatory nature. Managers at every level sit down with the subordinate managers who report directly to them and together they determine appropriate and feasible goals for the subordinate, and bargain over the budget that the subordinate will need so as to achieve these goals. The participation of subordinates in the objective-setting process is a way of strengthening their commitment to achieving their goals and meeting their budgets. Another reason why it is so important for subordinates (both individuals and teams) to participate in goal setting is so they can tell managers what they think they can realistically achieve.
  3. Managers and their subordinates periodically review the subordinates’ progress toward meeting goals. Once specific objectives have been agreed upon for managers at each level, managers are accountable for meeting those objectives. Periodically, they sit down with their subordinates to evaluate their progress. Normally, salary raises and promotions are linked to the goal-setting process, and managers who achieve their goals receive greater rewards than those who fall short.

In the companies that have decentralized responsibility for the production of goods and services to teams, particularly cross-functional teams, management by objectives works somewhat differently. Managers ask each team to develop a set of goals and performance targets that the team hopes to achieve—goals that are consistent with organizational objectives. Managers then negotiate with each team to establish its final goals and the budget the team will need to achieve them. The reward system is linked to team performance, not to the performance of any one team member.

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, Line of Sight

Competitive Forces


Competitive strategy has become an area of specialty among management researchers and consultants. These specialists find that the competition within an industry is constrained by an underlying structure consisting of five powerful driving forces:

a)    Rivalry among existing firms in the industry

b)   The threat of new firms entering the industry

c)    The bargaining power of suppliers to the industry

d)   The bargaining power of the buyers from the industry

e)    The threat of substitute products or services

The underlying forces determine the profit margins that are characteristic of the industry. They limit the prospects for greater than normal profit margins. They influence the intensity of the competition and the long-term probable outcome of the competition. To entrepreneurs who are not familiar with these forces represent fate.

We often attribute the success of an entrepreneurial venture to its entrepreneur. We shouldn’t detract from the importance of the leader in a new venture, but it is very important to recognize that there are other forces that contribute to the success. A super individual with a good product entering an industry with an adverse underlying structure may have little success. A lessor individual entering an industry with a more favorable structure may succeed despite mistakes and misjudgments.

There may be many factors that influence a business firm’s performance in the short term. These factors are transient such as economic conditions, material shortages or strikes. In the long term, however, the five underlying structural forces determine the potential returns achievable by the industry. The various firms competing within an industry are thereby limited in their potential profit margins and returns on 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, Line of Sight

Guerrilla Marketing


Guerrilla mrketing is the type of all-out marketing necessary for entrepreneurial success. It is virtually unknown to the large corporations. And thank heavens it is. After all, the large corporations have the benefit of big bucks. You don’t. so you’ve got to rely on guerrilla marketing.

 Your size is an ally when it comes to marketing. If you are a small company, a new venture, or a single individual, you can utilize the tactics of guerrilla marketing to their fullest. You’ve got the ability to be fast on your feet, to employ a vast array of marketing tools, to gain access to the biggest marketing brains and get them at bargain-basement prices. Now you may not need to use every weapon in your potential marketing arsenal, but you’re sure going to need some of them. So you’d best know how to use tham all.

 It may be that you will require no advertising at all. But you will require marketing. It may be that word of mouth is so favorable, and spreads so rapidly, that your venture can reap a fortune just because of it. If so, you can be sure that the word of mouth was motivated by effective marketing in the first place.

 In fact, a strong word of mouth campaign is part of marketing, and so are business cards, stationery, matchbooks, the clothes you wear. And certainly your location is important in marketing. Every component that helps you sell what you are selling is part of the marketing process. No detail is insignificant to be included. The more you realize that the better your marketing will be. Its not about sales, its about profits—the dear old bottom line.

 That’s the good news. Here’s the bad: One of these days, you’re going to be an entrepreneur no longer. If you successfully put into practice the principles of guerrila marketing, you’ll become fat and rich and famous and will no longer have the lean, hungry mentality of the entrepreneur.

 Once you’re reached that stage, you wll have to resort to the textbook forms of marketing, for you’ll be too encumbered with employees, traditions, paperwork, management levels, and necessary bureaucracy to be flexible enough for gurella marketing.

 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, Line of Sight

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