Industrial Competitiveness

The European Management Forum defines industrial competitiveness as “the immediate and future ability of, and opportunities for, entrepreneurs to design, produce and market goods within their respective environments whose price and non-price qualities form a more attractive package than those of competitors.”

The major factors affect competitiveness:

  • The dynamism of the economy measured by criteria such as growth rates, monetary strength, industrial production and per capita performance.
  • Industrial efficacy, which involves direct and indirect employee costs, per capita output, employee motivation, turnover and absenteeism.
  • The dynamics of the market, when efforts to improve competitiveness are increased and better directed to more intensive market forces.
  • Financial dynamism that is the strength and importance of the commercial banking sector, stock and bond markets and their ability to provide capital.
  • Human resources that is the dynamism of the population and the labor force, employment, unemployment, executive quality and motivation.
  • The role of the state in fiscal policies and other regulations.
  • Resources and infrastructure (transport and communications facilities), domestic energy and raw material sources.
  • Outward orientation, the will to promote trade actively, buying and selling goods, service-related investments or any other form of international exchange.
  • Innovative forward orientation which emphasis national research and development efforts, corporate and government attitudes to exploiting new ideas, products and production processes.
  • Socio-political consensus and stability, the degree to which strategies and policies reflect a society’s aspirations.

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, and my Lectures.

Managerial Practices

  • One of the most important responsibilities of management is to lead the organization to develop a hierarchy of strategic intent that incorporates and mutually supportive set of vision, mission, goals, and objectives.
  • As a leader developing a vision, seek out the ideas and ideals that will inspire an organization and motivate its members to work toward greatness.
  • In developing a mission statement, remember that organization serve multiple stakeholder groups and identify how your organization will address the needs of its most important stakeholders.
  • Develop goals that support the organization’s mission, that address the need for balance among various stakeholder groups, and that “stretch” the organization.
  • In identifying objectives, develop measurable targets, but be mindful of the possible unintended consequences of such measurement.
  • Remember the difference between an intended strategy and a realized strategy and be careful not to confuse the two in your consideration and discussion of strategy.
  • Strategies for simple, stable business may be successfully implemented using strategic programming, while strategies for organizations facing complex and/or unpredictable situations will usually require organizational learning, and overwhelming complexity and dynamism may force adoption of an incrementalist approach.
  • Remember the key distinguishing feature between strategic programming and organizational learning: in strategic programming, the firm can realistically separate planning and doing, strategy formulation and implementation. In organizational learning, a firm assumes that it cannot realistically tell in advance how the future will unfold or what will work, and it therefore intertwines formulations and implementation, continually adjusting its strategy as it gains new insights through a trail-and-error process of learning by doing.
  • Do not assume that either a pure strategic programming approach or a pure organizational learning approach is right for your organization. Most organizations need a blend of the two and, consequently, managers need to understand both.
  • You should recognize that although there is nothing inherently wrong with strategic programming, the incidence of “mechanistic” organizations that can successfully depend on this approach is shrinking. Shifts in the nature of business have made it more important for organizations to become more “organic” and to place greater emphasis on organizational learning.
  • Remember the limitations of each of the three major perspectives on strategic management,: rational planning, incrementalism, and organizational learning. Develop a willingness to draw from all three perspectives to improve your effectiveness.

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, and my Lectures.

Principles of Quality Management


  • Vision will give a sense of direction.
  • Vision will motivate human resource.
  • Vision will help the organization to stay focused.
  • Without vision an organization will fail.
  • Absence of vision will lead to confusion.


  • Open economy has given away monopoly. It is buyer’s market which is in existence now.
  • Without customers no business can exist.
  • Internal customer orientation will improve productivity.
  • One dissatisfied customer can create havoc by unprecedented actions.
  • Retention of customer is the key issue in business.

 Prevention oriented:

  • Prevention is better than cure is a well acknowledged phrase.
  • Prevention orientation will take one nearer to ‘Zero Defects’ status.
  • Foolproof prevention techniques such as ‘Poka Yoka’ are available.
  • Corrective approach calls for costly monitoring mechanism.
  • Correction does not stop recurrence.

 Scientifically approached:

  • Scientific methods are based on fundamental or derived laws of mathematics and science and hence the foundation is strong.
  • Scientific methods are well proved over the years and hence chances of going wrong is remote.
  • Use of scientific methods gives a sense of pride and improves the self esteem of workers.
  • Unscientific methods make one ti depend on the previous experience, which may bot be appropriate.
  • Logical reasoning which may not always be appropriate is avoided in scientific methods.

 Process given more importance than end results:

  • End does not justify means.
  • Proper means will ensure quality result.
  • Zero defect is possible only if the processes are perfect.
  • Process orientation will make workers more responsible.
  • Result orientation will end up with huge los as all the defects are to be rejected.

 Data-based analysis:

  • Data-based approach will always give the best insight to the problem and solution.
  • Information-based or knowledge-based approach may mislead at all times.
  • Data collection is a strenous process; however the returns will be higher.
  • In many situations the raw data themselves will provide solutions to problems or at least provide useful clues.
  • Data collected and documented for one specific purpose, can well be used for some other purpose, thus providing a databank or multiple applications.

 Continuous improvement strategies

  • No one at any point of time can say that ‘Perfection’ has been achieved. Even six sigma companies talk about 3 ppm defects. Hence there is always scope for improvement in everything. Quality improvement is a never ending process.
  • The world has become so competitive that dynamism should reflect in every facet of business, even in product development.
  • Crativity and innovation are the order of the day in business circles.
  • Established tools such as ‘benchmarking’ are available for continuous improvement.
  • Improved products will have a cutting edge in the market.

 Cost conscious attempt:

  • ROI (Return on Investment) is the performance index for any business enterprise.
  • The visible quality costs are like the tip of the iceberg. There are plenty of hidden  costs that go unnoticed.
  • Quality is free, meaning poor quality costs can be offset by good quality profit margin.
  • Affordability is the key factor for customers and profit margin is the key factor for manufacturers.
  • Prevention which could be done with $1 is missed, the failure/defects due to that will cost the company $10. the cost ratios are so high.

 Documentation for traceability

  • Stakeholders ae assured of the quality through documentation.
  • Traceability is effective and easy with documented information.
  • Documentation will amount to standardization.
  • To err is human; documentation helps in curbing human errors.
  • Role clarity is ascertained which reduces workplace confusion.

 Reward/Recognition assured

  • Recognition is one thing that every human being long for.
  • Motivation is the key factor for sustaining quality initiatives.
  • Rewards may be helpful in motivating non-performers to join quality initiators.
  • Disinterest in the job being done is the main culprit for low productivity and poor quality.
  • Human component plays a major role as compared to system component in quality initiatives.

 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, Line of Sight