The Contract Theory


The contract theory holds that when a person buys a product or service, he or she is entering into a contract with the manufacturer. The manufacturer (and by implication the employee representing the manufacturer) has four main obligations:

  1. To make sure the product or service complies with the contract in several respects: it should do what its advertisements say it can, it should operate a certain period of time before needing service or maintenance, and it should be at least as safe as the product information states and the advertising suggests.
  2. To disclose all pertinent information about the product or service, so that the potential consumer can make  an informed decision on whether to purchase it.
  3. To avoid misrepresenting the product or service.
  4. To avoid coercion.

Critics of the contract theory argue that the typical consumer cannot understand the product as well as the manufacturer does, and that consumer ignorance invalidates the 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.

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Judges as Social Engineers


Our courts still follow the idea of stare decisis. This adherence to precedent furnishes a system whereby a businessman or businesswoman may act in a certain way, confident that this action will have a known legal effect. At times, however, some modern judges feel that it is their duty to engage in the practice that lawyers term social engineering—shaping the law to the judge’s own individual social and economic beliefs.

When a judge tailors a decision to personal ideas about how society should operate, the holding of the court may be directly opposite to what the legislature intended by the passage of the law. Many legal observers feel that this social engineering by judges is an outright usurpation of the privileges and responsibilities of the legislature. Many critics feel that the laws should be made by the legislative branch of government, not by the holding of a court. Business and trade interests usually favor the idea of permitting the legislature to enact the laws.

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.

Where does Competition Fit?


Some critics say that the marketing concept doesn’t go far enough in today’s highly competitive markets. They think of marketing as “warfare” for customers, and argue that a marketing manager should focus on competitors, not customers. That viewpoint, however, misses the point. The marketing concept idea isn’t just to satisfy customers, but to do it at a profit through an integrated, whole company effort. All three must be considered simultaneously. Profit opportunities depend not only on outdoing some other firm, but also on doing the right thing. In fact, often the best way to beat the competition is to be first to find and satisfy a need that others have not even considered.

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.

 

Need Theories of Motivation


Need theories represent the starting point for most contemporary thought on motivation, although these theories too attracted critics. The basic premise of need theories is that human motivation is caused primarily by deficiencies in one or more important needs or need categories. Need theorists have attempted to identify and categorize the most salient needs, that is, those that are most important to people. The best known need theories are Maslow’s hierarchy of needs, Murray’s manifest needs, and Alderfer’s ERG theory.

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 Challenges of Global Business


Many past political barriers to trade have fallen or been minimized, expanding and operating new market opportunities. Managers who can meet the challenges of creating and implementing effective and sensitive business strategies for the global marketplace can help lead their companies to success. Multinational corporations, such as, General Electric and Ford, which derive a substantial portion of their revenues from international business, depend on savvy managers who can adapt to different cultures. Lucent Technologies has invested more than $24 million in a design center in China in an effort to aid in China’s modernization of its infrastructure and telecommunications technology. The income potential from Lucent, which manufactures, designs, and delivers products for networking, communications systems, software, data networking systems, business telephone systems, and microelectronics components, is enormous. Small businesses, too, can succeed in foreign markets when their managers have carefully studied those markets and prepared and implemented appropriate strategies. Being globally aware is therefore an important quality for today’s managers and will become a critical attribute for managers of the 21st century.

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 Forces of Demand and Supply


In free enterprise system, the distribution of resources and products is determined by supply and demand. Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. From your own experience, you probably recognize that consumers are usually willing to buy more of an item as its price falls because they want to save money.

Supply is the number of products that businesses are willing to sell at different prices at a specific time. In general, because the potential for profits is higher, businesses are willing to supply more of a good or service at higher prices.

The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time is the equilibrium price.

Changing the price alters the supply situation and a new equilibrium price results. This is an ongoing process, with supply and demand constantly changing in response to change in economic conditions, availability of resources, and degree of competition.

Critics of supply and demand say the system does not distribute resources equally. The forces of supply and demand prevent sellers who have to sell at higher prices and buyers who cannot afford to buy goods at the equilibrium price from participating in the market. According to critics, the wealthy can afford to buy more than they need, but the poor are unable to buy enough of what they need to survive.

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.

Consumers of Advertising


It is vital, from the outset, to guard against the normal psychological tendency to impose your advertising “pattern” on a rather complex reality. Consider, for example, that the advertisements you may encounter through television, radio, the campus newspaper, magazines, direct mail, billboards, and the like are only a fraction of all the forms that advertising takes in other places in other times, for different purposes, and among different audiences. Yet, there is a tendency to equate that fragmented reality with the whole. Advertising is bad (good) for children; advertising is good (bad) for the economy; advertising helps us make wise (unwise) purchase decisions; advertising makes goods cost more (less); and so on. Simply, some advertising may be (or do) any of these things. All advertising is however far too complex to permit such over-simplifications.

By way of further example, one of the frequently voiced complaints of advertising critics is that advertising is not informative enough. Now, if we wish to point to some specific advertisements, it would not be difficult to accept such a premise. An advertisement for an expensive car may tell us that the car offers greater “class” than its competitors but nothing of its performance or life expectancy. Or a message for a cereal may feature a talking tiger, telling us of his adventures, but little of nutrition.

But there is other grist for this mill as well. A classified ad for a refrigerator may tell us its make, age, capacity, operating efficiency, and the reasons the seller has put it on the market. A message on drill bits for all rigs inundates its readers with performance data concerning the cost efficiencies to be accrued through the use of this bit compared with those of traditional composition. Do these ads also lack information?

To understand advertising then, you must first develop some knowledge of its more prominent functions. One way of getting a realistic picture of the landscape of advertising is to ask a simple question: Who uses advertising to reach what audiences through what media for what purpose? The pursuit of the answer not, of course, reveals all the nuances of advertising. It may, however, after a reasonable of some of the major species and subspecies and—not incidentally—serve to discourage embracing, “Advertising does …” thinking.

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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