Appointing a Dealer


  1. The Branch Manager perceives a need for an additional dealer in an area. Need occurs if any existing dealer leaves or is removed. It could also happen when the company expands into new territory.
  2. The Branch Manager has to convince the general manager of the division about the need for anew dealer.
  3. The selection process for the dealer begins with placing advertisements in newspapers and trade magazines inviting applications. Applications for dealership are directed to the concerned branch manager.
  4. The branch manager then reviews the application forms and prepares a shortlist if necessary. The company has not laid down any concrete guidelines for shortlisting at this stage. The branch manager is allowed to exercise his discretion.
  5. The shortlisted applicants are interviewed by the branch manager along with the regional sales manager of the division. Whatever additional information is required is obtained from the applicants during the interview. The dealers are evaluated on:
    1. Prior business record
    2. The capability of maintaining and running his own showroom
    3. Financial strength
    4. Inventory: The dealer must have enough working capital for maintaining specified level of inventory. This condition is however is applied only in the case of dealers whose territories are located considerably away from a branch office. This is because there is a company owned warehouse along with every branch office and for dealers located in the same cities there is no necessity to maintain separate inventory
    5. Contacts with customers
    6. Availability of salesforce to service customer effectively. In addition, technicians also need to be present to meet the after-sales service requirements of the products
  6. The final selection decision is made after talking with the bankers of the applicant. This is done to check the veracity of information regarding financial strength and prior business experience. It is only after the company is satisfied regarding all aspects of he information, that it sends the dealer an appointment letter
  7. The appointment letter lays down several terms of the contract that have to be fulfilled by the dealer. The company expects the dealers not to sell any competitors’ products. The dealer is also expected to conduct his business only within the clearly demarcated sales territory allocated to him by the company.

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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The New Trend


Today, everything has changed. Globalization, the internationalization of markets and corporations, has changed the way modern corporations do business. To reach the economies of scale necessary to achieve the low costs, and thus the low prices, needed to be competitive, companies are now thinking of a global (worldwide) market instead of a national market. Instead of using one international division to manage everything outside the home country, large corporations are now using matrix structures in which product units are interwoven with country or regional units. International assignments are now considered key for anyone interested in reaching top management. As more industries become global, strategic management is becoming an increasingly important way to keep track of international developments and position the company for long term competitive advantage.

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.

Fraction


A fraction consists of two numbers separated by a horizontal or slanting bar. In either event, the number to the top or left of the bar is called the numerator while the number below or to the right of the bar is called the denominator.

There are at least four different interpretations for a fraction:

  • A part of a whole;
  • A part of a group;
  • Division of two numbers; and
  • Ratio of two numbers.

There are three different kinds of fractions:

  • A proper fraction – a fraction with a numerator less than the denominator;
  • An improper fraction – a fraction with a numerator greater than or equal to the denominator;
  • A complex fraction – a fraction consisting of a fractional numerator, a fractional denominator, or both.

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 Chief Executive Officer


The chief executive officer (CEO) is the person ultimately responsible for setting organizational strategy and policy. Even though the CEO reports to the chair of the board (who has the most legal authority), in a real sense the CEO is the most powerful person in the corporation because he or she controls the allocation of resources. The board of directors gives the CEO the power to set the organization’s strategy and use its resources to create value. Often the same person is both chief executive officer and chair of the board. A person who occupies both positions wields considerable power and directly links the board to corporate management.

How does a CEO actually affect the way an organization operates? A CEO can influence organizational effectiveness and decision making in five principal ways:

  1. The CEO is responsible foe setting the organization’s goals and designing its structure.
  2. The CEO selects key executives to occupy the topmost levels of the managerial hierarchy.
  3.  The CEO determines top management’s rewards and incentives.
  4. The CEO controls the allocation of scarce resources such as money and decision making power among the organization’s functional areas or business divisions.
  5. The CEO’s actions and reputation have a major impact on inside and outside stakeholders’ views of the organization and affect the organization’s ability to attract resources from its environment.

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.

Organization Structure and Innovations


Organizational structure fulfils many functions—everyone in the organization knows who he or she reports to; how various repetitive/routine activities are to be discharged; who has what authority and responsibility; how personnel are grouped together (e.g., by departments or divisions); which individuals/groups have decision-making authority and which have primarily advisory functions (line versus staff functions); and what mechanisms are deployed primarily for reducing decision-making uncertainty, for ensuring differentiated or specialized responses to the operating environment, and for coordinating and integrating these differentiated or specialized responses. A well-designed structure that is compatible with strategy or is internally coherent and compatible with the organization’s operating environment tends to contribute to superior organizational performance.

Can organizational structure facilitate innovations? Possibly. Relatively flat managerial hierarchy and extensive decentralization or delegation of authority, including extensive use of profit centers and SBUs.

Certain kinds of structural changes, notably creating many self-contained, substantially autonomous units with stretch targets, extensive delegation of authority to lower level decision-makers, and delayering (removal of some of the managerial levels to reduce the number of approving authorities for innovation)  may increase the potential innovations of the organization.

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.

Collaboration: Key Messages


i.            The foundation of a profitable business culture is characterized by a robust spirit of collaboration between:

  1. Employees and management,
  2. Internal departments or divisions, and
  3. The organization, its customers and its suppliers.

ii.            A collaborative environment best enables staff to align their professional goals with the objectives of the organization and to implement strategies and tactics to realize these objectives.

iii.            In order for a knowledge management strategy to be successful, it must include a strategy for collaboration.

iv.            The Internet and the World Wide Web provide a powerful paradigm of collaboration for any organization.

v.            There are cognitive, emotional and motivational dimensions to collaboration.

vi.            There are a number of tools and processes that help develop a culture and psychological environment of collaboration.

vii.            A unique assessment instrument, the Collaboration Quotient, measures the readiness of individuals and their organization to collaborate. This tool is also used to monitor the organization’s progress in developing collaboration.

viii.      An Internet-based knowledge network dramatically facilitates knowledge sharing and co-creation.

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.

 

Creating Departments around Products


With product departmentalization, departments are organized for each of the company’s products or services, or for each family of products. Department heads in this type of organization are responsible for both creating and marketing a product, a family of products, or a service.

Arranging departments around products is sometimes called diviosionalization. Divisionalization exists when the firm’s major departments are organized so that each can manage all the activities needed to develop, manufacture, and sell a particular product, product line, or service. The head of such a division usually has functional departments—say, for production, sales, and personnel—reporting to him or her. As a result, each of these product divisions is self-contained. In other words, each controls all or most of the resources required to create, produce, and supply its product or products.

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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