Res Judicata


The old Latin legal phrase, res judicata, means a thing already decided and settled. Res judicata is a legal principle quite consistently followed by almost all courts. It is the rule that a final judgment or decree on the merits of a matter by a court of competent jurisdiction will be final and conclusive as to any later lawsuit on all points or matters determined in the former suit. This means that between the parties themselves the dispute is closed at the conclusion of trial. However, this does not prevent a lower court decision from being appealed to a higher court.

This principle of res judicata prevents  an unsuccessful litigant from taking an unfavorable decision to another trial court for a second lawsuit on the same complaint or same set of facts. Res judicata applies between the parties in a civil lawsuit, affecting those parties and no others.

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.

Components of a Business Plan


Business plan tells a very special story. It is the story of a unique business enterprise, the one you, the entrepreneur, will create. Telling this story will reveal how knowledgeable and competent you are, how certain the outcome is, and how desirable it is to proceed with the project.

There are similarities among all good business plans, but no two are exactly alike, because no two businesses are exactly alike, even if they make and sell same thing to the same market, two businesses will have different personalities. The behavior and attitudes of the managers will be reflected in the businesses. Even the décor will be different, just as the homes of the managers will reflect their individual taste and style. Each business plan is unique.

Several topics that deserve consideration in the plan: what, how, where, and when. You would expect to see topic headings like the following:

  1. The Product. What product or service is being offered? How is it made ready for sale?
  2. Target market. Who will part with their money? How many of them are there? Where are they?
  3. Competition. Where do the customers obtain the product or service now? How does that product or service differ from yours? How strong is the competition?
  4. Marketing. How will the customers learn about your product? Where can they buy it? How does it get to where they buy it?
  5. Management. Who will coordinate the activities of production, administration, and marketing? Who will decide what is to be done and when?
  6. Financial Performance? How much profit will be made and when? How much capital is required? What will the business’s net worth be a year from now? Two years from now?

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.

Group Cohesiveness


Group cohesiveness results from all forces acting on the members to remain in the group. The forces that create cohesiveness are attraction to the group, resistance to leaving the group, and the motivations to remain a member of the group. Group cohesiveness is related to many aspects of group dynamics—maturity, homogeneity, and manageable size.

Group cohesiveness can be increased by competition or by the presence of an external threat. Ether factor can serve as a clearly defined goal that focuses members’ attention on their task and increases their willingness to work together.

Successfully reaching goals often increases the cohesiveness of a group because people are proud to be identified with a winner and to be thought of as competent and successful. They may be one reason for the popular phrase, “Success breeds success.” A group that is successful may become more cohesive and possibly even more successful.

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 Seedbeds of Managers


Good managers are not born; they are made. An organization acquires managers in three ways: promoting employees from within, hiring managers from other organizations, and hiring managers graduating from universities.

Promoting people within the organization into management positions tends to increase motivation by showing employees that those who work hard and are competent can advance in the company. Internal promotion also provides managers who are already familiar with the company’s goals and problems. Promoting from within , however, can lead to problems: it may limit innovation. The new manager may continue the practices and policies of previous managers. Thus, it is vital for companies—even companies committed to promotion from within—to hire outside people from time to time to bring new ideas into the organizations.

Finding managers with the skills, knowledge and experience required to run an organization or department is sometimes is difficult. Specialized executive employment agencies—sometimes called headhunters, recruiting managers, or executive search firms—can help locate candidates from other companies. The downside is that even though outside people can bring fresh ideas to a company, hiring them may cause resentment among existing employees as well as involve greater expense in relocating an individual to another city.

Schools and universities provide a large pool of potential managers, and entry level applicants can be screened for their developmental potential. People with specialized management skills are specially good candidates. Some companies offer special training programs for potential managers just graduating from college.

When exposed to advertising, the consumer is not merely drawing information from the ad but is actively involved in assigning meaning to the advertised 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.

 

Context Connotation of Organizing


Organizing is the means by which management blends human and material resources through the design of a formal structure of tasks and authority. It involves classifying and dividing work into manageable units by:

  1. Determining specific work activities necessary to accomplish the organizational objectives;
  2. Grouping work activities into a logical pattern or structure, and
  3. Assigning the activities to specific positions and people.

Included in the organizing function are the important steps of staffing the organization with competent employees who are capable of performing the necessary activities, and assigning authority and responsibility to these individuals.

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.

Product Knowledge


You have to be expert before you even start your business. The old saying, “We learn by our mistakes” will not do your business reputation any good if it applies to your lack of expertise. You have to know your products or service inside out. You may love a business for the product lines, but will your customers love the products too? When problems arise with a product, or when a customer asks technical questions, are you knowledgeable enough to resolve these problems and answer their questions competently and confidently?

One way to increase your product knowledge is to contact the manufacturers or local distributor. They are usually happy to send you product information and answer your questions. Some of the questions you should research about your product lines (or service) are these:

  • How long have these products been on the market?
  • Are they seasonal, and when do most sell?
  • How often are these products upgraded or changed?
  • Could you be caught unexpectedly with obsolete inventory?
  • What do the manufacturers’ warranties cover?
  • Are replacement parts readily available?
  • Are the products competitively priced?
  • Are buying trends increasing or decreasing?
  • Are the products high, medium, or low in quality?
  • How do the products compare to the competition?
  • What are groups do these products appeal to?
  • What is the life expectancy of the products?
  • Could the products become obsolete due to changing technology?

After these questions are answered, you may find that the business is not viable after all. The product pricing may be too high compared to the competition, or you may discover that over the previous five years, overall demand for the products is declining due to technological changes and shifts in consumer buying trends. In another five years, the demand could become substantially less. The products may appear high in quality on sight, but you may discover that they are poorly made and not something that you would feel confident selling. Perhaps the manufacturer’s guarantees are inadequate, or replacement parts are priced exorbitantly and hard to secure.

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.

Disadvantages of Sole Proprietorship


What may be seen as an advantage by one person may turn out to be a disadvantage to another. The goals and talents of the individual owner are the deciding factors. For profitable businesses managed by capable owners, many of the following factors do not cause problems. On the other hand, proprietors starting out with little management experience and little money are likely to encounter many of the disadvantages.

  1. Unlimited Liability: The sole proprietor has unlimited liability in meeting the debts of the business. In other words, if the business cannot pay its creditors, the owner may be forced to use personal, non-business holdings such as a car or a home to pay off the debts. The more wealth an individual has, the greater is the advantage of unlimited liability.
  2. Limited Sources of Funds: Among the relatively few sources of money available to the sole proprietorship are a bank, friends, family, or his or her own funds. The owner’s personal financial condition, then, determines his or her credit standing. Often the only way a sole proprietor can borrow for business purposes is to pledge a car, a house, or other real estate, or other personal assets to guarantee the loan. And if the business fails, the owner may lose the personal assets as well as the business. Publically owned corporations, in contrast, can not only obtain funds from commercial banks but can sell stocks and bonds to the public to raise money. If a public company goes out of business, the owners do not lose personal assets.
  3. Limited Skills: The role proprietor must be able to perform many functions and possess skills in diverse fields such as management, marketing, finance, accounting, bookkeeping, and personnel. Although the owner can rely on specialized professionals to provide advice, he or she must make the final decision in each of these areas.
  4. Lack of Continuity: The life expectancy of a sole proprietorship is directly related to that of the owner and his or her ability to work. The serious illness of the owner could result in failure if competent help cannot be found.
  5. Lack of qualified Employees: It is usually difficult for a small sole proprietorship to match the wages and benefits offered by a large competing corporation because the proprietorship’s level of profits may not be as high. In addition, there is little room for advancement within a sole proprietorship, so the owner may have difficulty attracting and retaining qualified employees.
  6. Taxation: Although it is considered that taxation is an advantage for sole proprietorships, it can also be a disadvantage, depending on the proprietor’s income. Under current tax rates, sole proprietors pay a higher marginal tax rate than do small corporations. The tax often determines whether a sole proprietor chooses to incorporate his or her business.

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.

Improving Quality


Improving quality is a lot like taking vitamins, eating healthy foods, and exercising regularly. Although the results may not be immediate, long-term benefits are significant. Quality is neither a quick fix nor the program of the month, but rather a way of life for companies who are serious about improvements.

Quality is a fundamental to creating value, yet it is a moving target and must meet the customers’ current definition of quality. Thus, we offer the following recommendations for improving service quality and ultimately delivering superior customer value:

  • Design services in cooperation with customers. Learn what customers truly value by incorporating the voice of the customer earlier in the service development process. Also, it is important to determine not only the customers’ preferred service attributes but their relative importance, as well.
  • Focus your improvement programs outward, on market break points. Only by defining those episodes, when the customer comes in contact with the organization, and by focusing on the ones most critical can you see things as the customer sees them. Also, visualize the complete sequence of the moments of truth a customer experiences in having some need met. Remember, the customer sees service in terms of a total experience, not an isolated set of activities. Mapping the service cycle helps companies see these activities as the customer sees them.
  • Create a triangle representation of service quality. Hotels and restaurants often advertise and display on their properties ratings by one of the major motor clubs, such as AAA or Mobil Oil, Hertz #1 Gold Club service communicates a premium, value-added bundle of services to business travelers seeking a hassle-free car rental experience.
  • Use teamwork to promote service excellence—service workers who support one another and achieve together can avoid service burnout.
  • Create a service bias based on each of the following service quality determinants: professionalism, attitudes and behaviors, accessibility and flexibility, reliability and trustworthiness, service recovery, and reputation and credibility. These criteria can be used as guidelines for influencing positive service quality perceptions.
  • Develop proper measurements. Use metrics that are specific on nature, such as 95% on-time-delivery, customer wait time, or order processing time. Benchmark the best practices for each service are being measured, such as wait time or order delivery.
  • Employee selection, job design, and training are absolutely crucial to building customer satisfaction and service quality. Structure the job of service workers to maximize their ability to respond quickly and competently to customer needs. Also, train service personnel in areas of service delivery and attitude. Role play different service scenarios, showing various service recovery strategies. Provide service workers with some basic tools to help control service quality variation and uncover service problems.
  • Reward total quality efforts in marketing. Look for opportunities to reinforce quality behaviors when they occur. Employees should be rewarded ob the basis of these behaviors (commitment, effort) rather than strictly on outcomes, such as sales quotas. Rewarding a salesperson for meeting or exceeding quota with a bonus while giving a nominal award such as a pin or plaque to the person who fixes the product or process sends a clear message about the importance of quality.
  • Think of service as a process, not a series of functions. Service quality occurs when the entire service experience is managed and the organization is aligned to respond accordingly.

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.

Learn the Language


If you are going to spend a year or more in a country—definitely, absolutely, do your utmost to learn the language. It will make a tremendous difference to your state of mind. Ability to understand the local language seems to play a major role in adjustment to culture shock and personal success in a foreign world.

It is not clear why speaking the language makes such a big difference, but it does. Obviously it makes getting around a lot easier. In hundreds of moments of struggling to get something done, from shopping to household repairs to getting directions, just knowing some of the language removes huge portions of aggravation and helps you gain a sense of safety and self-assurance. When people around you are babbling away in a foreign language, you become vaguely insecure and feel isolated. Knowing the language gives you a sense of mastery in situations where you may feel vulnerable.

The more process of learning the language gets you more in tune with the culture, and breaks the ice, putting you in the right frame of mind to adjust. In some places, speaking a second language is important to enhance your image as a well-bred, educated person—you may be somewhat better off if the language you learn is not the language spoken in the country.

The frequent traveler should think about learning languages too, of course, depending on the amount of travel and bilingualism of the business community. Speaking a language fluently can permit you to attain levels of relationship and business advantage unattainably by someone who doesn’t.

Fluency in the language will allow the traveler into otherwise exclusive realms of local business. The process of negotiation often depends on behind-the-scenes information flow.

Learning the language is no substitute for learning the culture and appropriate behavior. People who are fluent in a language but not sensitive to the culture can make worse mistakes, perhaps because the local experts more of them. And there are dangers in speaking a language if you are not competent in it. Not knowing the nuances of words or being careless with intonations, you might say things you don’t mean. In most languages, some common words have extremely vulgar meanings if pronounced incorrectly. Or you may hear unintended meanings.

If you don’t speak the language well, it is best to reveal that you have made the effort to learn—but then rely on English or an interpreter. Experts advise that is generally best to speak the language for socializing and daily activities, but not when transacting business. As a rule of thumb, if you are not fluent and your foreign counterpart does not speak fluent English, always transact business with an interpreter. Traders who meet frequently with foreigners say that while English is the business language around the world, buyers are far more comfortable talking in their native language, and even if they can speak English, it is often better to have an interpreter. They don’t have to struggle so hard, and it puts them at ease.

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.

Competitive Success


An industry’s key success factors (KSFs) are those things that most affect the ability of industry members to prosper in the marketplace—the particular strategy elements, product attributes, resources, competencies, competitive capabilities, and business outcomes that spell the difference between profit and loss. Key success factors concern what every industry member must be competent at doing or concentrate on achieving in order to be competitively and financially successful. KSFs are so important that all firms in the industry must pay them close attention—they are the prerequisite for industry success. The aswers to three questions help indentify an industry’s key success factors:

  • On what basis do customers choose between the competing brands of sellers?
  • What must a seller do to be competitively successful—what resources and competitive capabilities does it need?
  • What does it take for sellers to achieve a sustainable competitive advantage?

Determining the industry’s key success factors is a top priority. At the very least, managers need to understand the industry situation well enough to know what is more important to competitive success and what is less important. They need to know what kinds of resources are valuable. Misdiagnosing the industry factors critical to long-term competitive success greatly raises the risk of a misdirected strategy—one that over-emphasizes less important competitive targets and under-emphasizes more important competitive capabilities. On the other hand, a company with perceptive understanding industry KSFs can gain substantial competitive advantage by training its strategy on industry KSFs and devoting its energies to being better than rivals on one or more of these factors. Indeed, KSFs represent golden opportunities for competitive advantage—companies that stand out on a particular KSF enjoy a stronger market position for their efforts. Hence using one or more of the industry’s KSFs as cornerstones for the company’s strategy and trying to gain sustainable competitive advantage by excelling at one particular KSF is a fruitful approach.

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, Lectures, Line of Sight

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