The Three Types of Strategies


There are three main types of strategies:

  1. The corporate level strategy identifies the portfolio of businesses that in total will comprise the corporation and the ways in which these businesses will relate;
  2. The competitive strategy identifies how to build and strengthen the business’s long-term competitive position in the marketplace; and
  3. The functional strategies identify the basic courses of action that each department will pursue to contribute to the attainment of its goals.

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.

Advertisements

Price Differentiation


A common response during slow demand is to discount the price of the service. This strategy relies on basic economics of supply and demand. To be effective, however, a price differentiation strategy depends on solid understanding of customer price sensitivity and demand curves.

Heave use of price differentiation to smooth demand can be a risky strategy. Over –reliance on price can result in price wars in any industry where eventually all competitors suffer. Price wars are well known in the airline industry, where total industry profits suffered as a result of airlines simultaneously trying to attract customers through price discounting.

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.

Market-Development Strategy


A market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. Examples include introducing existing products to different geographical areas or different buying publics.

The mix of marketing activities used must often be varied to reach different markets with differing buying patterns and requirements. Reaching new markets often requires modification of the basic offering, different distribution outlets, or a change in sales effort and advertising.

Market development involves a careful consideration of competitor strengths and weaknesses and competitor retaliation potential. Moreover, because the firm seeks new buyers, it must understand their number, motivation, and buying patterns in order to develop marketing activities successfully. The firm however must consider the strengths, in terms of adaptability to new markets, in order to evaluate the potential success of the venture.

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.

Effective Segmentation


Segmentation does not promote marketing success in all cases. Effectiveness depends on the following basic requirements:

  • The market segment must present measurable purchasing power and size.
  • Marketers must find a way to effectively promote to and serve the market segment.
  • Marketers must identify segments that are sufficiently large enough to give them good profit potential.
  • The firm must target segments that match its marketing capabilities. Targeting a large number of niche markets can produce an expensive, complex and inefficient strategy.

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.

Factors of Production


Each business has its own mix of the four factors of production, vis-à-vis, natural resources, labor, capital, and entrepreneurship.

Natural resources refers to everything useful in its natural state as a productive input including agricultural land, building sites, forests, mineral deposits, and so on. Natural resources are basic resources required in any economic system.

Labor is critically important. It refers to everyone who works for a business, from the company president to the production manager, the sales representative, and the assembly line worker.

Capital is defined as the funds necessary to finance the operation of a business. These funds can be provided in the form of investments, profits, or loans. They are used to build factories, buy raw materials, hire workers, and so on.

Entrepreneurship is the taking of risks to set up and run a business. The entrepreneur is the risk taker in private enterprise system. In some situations the entrepreneur actively manages the business; in others this duty is handed over to a salaried manager.

All four factors of production must receive a financial return if they are to be used in a private enterprise system. These payments are in the form of rent, wages, interest, and profit. The specific factor payment received varies among industries, but all factors of production are required in some degree for all businesses.

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 Human Context of Management


In addition to understanding the ongoing behavioral processes inherent in their own jobs, managers must understand the basic human element of their work. Organizational behavior offers three major perspectives for understanding this context: people as organizations, people as resources, and people as people.

Above all, organizations are people, and without people there would be no organizations. All organizations differ from each other dramatically in size, purpose, and structure, they have one thing in common: people. Thus, if managers are to understand the organizations in which they work, they must first understand the people who make up the organizations.

As resources, people are one of an organization’s most valuable assets. People create the organization, guide and direct its course, and vitalize and revitalize it. People make its decisions, solve its problems, and answer its questions. People are at the core of many of the possible contributors to this trend. To reverse declining productivity, many organizations have taken steps to boost the contribution from their human resources. Some companies have encouraged management and labor to cooperate better; others have increased employee participation in decision-making and problem-solving.

There is another perspective—people as people. People spend a large part of their lives in organizational settings, mostly as employees. They have a right to expect something in return beyond wages and employee benefits. Employees seek satisfaction, and many want the opportunity to grow and develop and to learn new skills. An understanding of organizational behavior can help managers better appreciate these needs and expectations.

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.

Social Interactions


Social interactions establish the role that people play in a society and their authority responsibility pattern. Their roles and patterns are supported by a society’s institutional framework, which includes, for example, education and marriage.

Social roles are established by culture. For example, a woman can be a wife, a mother, a community leader, and/or an employee. What role is preferred in different situations is culture-bound. Most Swiss women consider household work as their primary role. For this reason, they resent modern gadgets and machines. Behavior also emerges from culture in the form of conventions, rituals, and practices on different occasions such as during festivals, marriages, get-togethers, and times of grief or religious celebration.

With reference to marketing, the social interactions influence family decision-making and buying behavior and define the scope of personal influence and opinion. In Latin America and Asia the extended family is considered the most basic and stable unit of social organization. It is the center for all economic, political, social, and religious life. It provides companionship, protection, and a common set of values with specifically prescribed means for fulfilling them. By contrast, in the US the nuclear family (husband, wife, and children) is the focus of social organization. The US wife plays a more autonomous role than the Dutch wife in family decision-making. Thus social roles vary from culture to culture and are likely to affect marketing behavior.

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.

Previous Older Entries