The Circular Flow


In a simplified world with only two types of economic agents, individuals and business firms, the relations between them can be pictured. Individuals and firms have dual aspects, and thus transact with one another in two distinct ways. Individuals are in one aspect consumers of goods, while firms are producers of goods. Thus, a real flow of consumption goods occurs from firms to individuals. But the goods must be produced. To permit this there must be a “real” flow of productive services, from the individuals in their second aspect as owners of resources to the firms as employers of resource services.

In a socialist command economy these flows of goods and resources might be directly ordered by a dictator. But in a private enterprise economy the relations are based on exchange and so must be mutual and voluntary. Hence, offsetting the “real” flows are reverse “financial” flows of claims that in a modern economy normally take the form of money payments. The consumers’ financial expenditures on goods become the receipts or revenues of the firms. The exchange of consumption goods between individuals and producing firms in return for financial payments take place in what economists call “the product market.”

The revenues received from sales to consumers provide firms with the wherewithal to buy productive services from resource-owners. This closes the circle; the firms’ payments for productive services become income to the individuals, available once more for spending on consumer goods. Purchase and sale of productive services take place in what economists call “the factor market,” again really a number of distinct markets for the various types of productive services.

Looking within the box representing the firms as economic agents, what takes place there is the process of production, the physical transformation of resources into products. Within the box representing individuals, consumption of the produced goods takes place. Here again the circle is closed by the fact that consumption is necessary to reiterate the main productive resource—labor power—for the next cycle.

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

Flexibility


Perhaps the biggest difference between an individual businessperson and a large corporation is in the degree of flexibility each possesses. Here the balance tips in favor of the small business. Because it hasn’t indoctrinated numerous level of management and a gigantic sales organization in the tactics and strategies of its marketing plan, it can make changes on the spot. It can be fast on its feet and can react to make changes, competitive ploys, economic realities, new media, newsworthy events, and last minute offers.

Like the furry quick mammal, you’ve got the flexibility, the speed, the disregard of image, that enables you to use radio commercials and also hire high school students to hand out printed circulars on street corners. You don’t have a body of rules to follow, a committee to answer to, a set structure to follow. You are the organization. You answer to yourself. You make the rules and you break the rules. And that means you get to be amazing, outrageous, surprising, unpredictable, brilliant, and quick.

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.

Circulars and Brochures


There is not much difference between a circular, a flier, and a brochure. Circulars and fliers are the same, and a brochure is longer and more detailed than either. Dictionaries don’t shed much more light on the subject.

There are several ways to distribute circulars and brochures. They may be mailed alone, mailed as part of a mailing package, placed in mailboxes, slipped under doors, slipped under windshield wipers, handed out at street corners, handed out at trade shows, handed out whenever lots of prospects congregate, handed out to prospects and/or customers, placed in the racks that say, “Take One,” placed on counters for general distribution, or dropped from airplanes. If you are going to distribute many of these, make them circulars, because circulars are less expensive per piece. If your plans for disseminating them are relatively limited, you might opt for the more expensive brochures.

The simplest form of one of these printed pieces is a single sheet of paper, printed on one side. Printing on both sides makes matters a tad more complex. Printing on both sides of two of two pieces of paper – each folded in half – makes a booklet that may be called a brochure. Some brochures run as long as twenty-four pages. When planning to produce such materials, remember that when you fold a sheet of paper in two, you have a total of four pages (two on each side). So generally you must think in terms of four-page units. Brochures are ordinarily four or eight or twelve pages. Some brochures have panels that fold rather than pages that turn. Usually, these are six-panel brochures – three panels on each side.

The format isn’t nearly as important as the content. And the content must be factual information, enlivened with a touch of style and romance. Unlike ads, which must flag a person’s attention, a brochure – or circular –already as that attention. So its primary job is to inform with the intention of selling. Most brochures and some circulars, use artwork. Sometimes this is intended to keep the pace interesting. But most of the time, the purpose is to explain, inform and sell.

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

A Healthy Company


A healthy company is like a fine athlete is more than someone who isn’t sick, a healthy company embodies people and practices that combine and coordinate to produce an exceptional performance.

 

Healthy companies all possess and emanate a certain vitality and spirit. This spirit is not a religious fervor or a mindless cheerleader enthusiasm but a deep feeling of shared humanistic values at the core of the company. These values are the glue that binds healthy, successful employees with healthy, productive workplaces. They influence the way people act and think at all levels of the company and form the foundation for corporate policies and practices. They define roles and responsibilities and dictate hor business decisions are made. These principles are expressed and applied at every turn of the business, from receptionists and loading dock workers, through managers and executives, and into the board of directors.

 

These values are perpetually interacting, expanding, and contracting like a living entity. Each value depends on and determines the health of the others; sickness or disease that undermines on weakens all; roboustness in one value strengthens all. The values at the heart of a healthy company enable it to continuously grow, evolve, and renew itself, reinforcing what is productive and prositive and sloughing off the unhealthy and unworkable. In short, the causes and effects between values, people, and companies are not linear but circular. Values are the center of the enterprise; they circulate through every cell and artery of a company, and a company and its employees either reinforce healthy values or bring about their decline.

 

Healthy company values bind people to their organizations. By creating a common language and appealing to principles of dignity, commitment, and growth, these values help to create an identity that connects thousands of people around a shared mission. Suddenly, the traditional hard values of business success and the nontraditional soft values of human development merge into one dream.

 

This convergence generates a synergy, producing something greater than the sum of their parts—a vital business that lives and breathes a humanistic philosophy, that treats people as more than profit producers, views relationships as more than simply financial contracts, and regards the workplace as more than a setting for business. It is a holistic environment, one that nurtures, stretches, and empowers peple. The result is an organization that optimizes people, principles, and profits.

 

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 contact www.asifjmir.com, Line of Sight

Psychic Profile of a Healthy Company


Just like a fine athlete is more than someone who isn’t sick, a healthy company embodies people and practices that combine and coordinate to produce an exceptional performance.

Healthy companies all possess and emanate a certain vitality and spirit  This spirit is not a religious fervor or a mindless cheerleader enthusiaism but a deep feeling of shared humanistic values at the core of the company. These values are the glue that binds healthy, successful employees with healthy, productive workplaces.  They influence the way people act and think at all levels of the company and form the foundation for corporate policies and practices. They define roles and responsibilities and dictate how business decisions are made. These principles are expressed and applied at every turn of the business, from receptionists and loading dock workers, through managers and executives, and into the board of directors.

These values are perpetually interacting, expanding, and contracting like a living entity. Each value depends on and determines the health of the others; sickness or disease that undermines one weakens all; robustness in one value strengthens all. The values at at the heart of the healthy company enable it to continuously grow, evolve, and renew itself, reinforcing what is productive and positive and sloughing off the unhealthy and unworkable. In short, the causes and effects between values, people, and companies are not linear but circular. Values are the center of the enterprise; they circulate through every cell and artery of a company, and a company and itsemployees either reinforce healthy values or bring about their decline.

Healthy company values bind people to their organizations. By creating a common language and appealing to principles of dignity, commitment, and growth, these values help to create an identity that connects thousands of people around a shared mission. Suddenly, the traditional hard values of business success and the nontraditional soft values of human development merge into one dream.

This convergence generates a synergy, producing something greater than the sum of their parts–a vital business that lives and breathes a humanistic philosophy, that treats people as more than profiot producers, views relationships as more than simply financial contracts, and regards the workplace as more than a setting for business. It is a holistic environment, one that nurtures, stretches, and empowers people. The result is an organizatipn that optimizes people, principles, and profits.

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 contact www.asifjmir.com