Positioning Strategy Decision


The challenge facing a manager is deciding  which positioning strategy is most appropriate in a given situation. The choice of a strategy is made easier when the following three questions are considered. First, who are the likely competitors, what positions have they staked out in the marketplace, and how strong are they? Second, what are the preferences of the target consumers sought and how do these consumers perceive the offerings of competitors? Finally, what position, if any, do we already have in the target consumer’s mind? Once answered, attention can then be focused on a series of implementation questions:

  • What position do we want to own?
  • What competitors must be outperformed if we are to establish the position?
  • Do we have the marketing resources to occupy and hold the position?

The success of positioning strategy depends on a number of factors. First, the position selected must be clearly communicated to target customers. Second, as the development of a position is a lengthy and often expensive process, frequent positioning changes should be avoided. Finally, and perhaps most impotant, the position taken  in the marketplace should be sustainable and profitable.

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.

Market-Driven Management


Market-driven management is a cross functional effort involving all levels of the organization. Properly followed, it ensures all activities are coordinated to meet the specific needs of target customer groups. All R&D projects are focused on developing solutions to identified customer problems, manufacturing is committed to meeting cost targets, quality standards, and delivery cycles, and sales focused on identifying and interpreting customer problems and then selling them solutions. If someone ask the individual managers within any of these functional areas how they operate, they would most likely say, “just as you described.” It is unlikely, however, that their counterparts in other functional areas would agree, and even more unlikely that there would be a consensus among all managers at all levels. Achieving this market driven focus with fully agreed upon objectives and priorities in each functional area requires the complete support of everyone in the organization. Market-driven management is much easier said than done because it flies in the face of the attitudes and actions of most managers.

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.

Fundamental Change


There is an evident and strong desire for corporate transformation. With all the smoke there has to be some fire. Against the background of multiple and profound changes and challenges in the business environment, management accepts that incremental is no longer enough.

How fundamental the transformation should be will depend upon the situation and circumstances of the individual company. There are easier ways of getting directorial and managerial kicks.

Circumstances might allow a gradual transition and incremental adjustment. Managers need to understand the profound nature of the distinction between evolutionary and revolutionary change, and the requirements for beginning about a revolution in thought. They must learn from radicals rather than administrators.

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.

 

Generating Meaningful Response from Customers


To generate meaningful response from customers, you must be conscious of the following points:

  1. Avoid Criticism: Don’t appear critical in the way you ask questions. Nonverbal messages delivered via tone or body language can change the meaning of your spoken words from positive to negative.
  2. Ask only positively phrased questions: You can ask for the same information in different ways, some more positive than others.
  3. Ask direct questions: You generally get what you ask for. Therefore, being very specific with your request for information can often result in more useful information. It can also save time and effort.
  4. Ask customers what you can do to better serve them: There is no better or easier way to find out what customers want and expect than to ask. They will appreciate it and you’ll do a better job serving them.

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.

 

Muddled Communication


It is only when an organization fails to communicate effectively with its market place that problems are sometimes noticed.

The first response to a drop in sales can be an immediate call for a new identity of a new advertising campaign. Rebranding may be expensive but it can be an easier pill to swallow than brutally honest self-examination of core relationships.

Less than scrupulously honest communication companies will queue up to offload and organization’s cash if they think there is money to be made; but putting a new face on a sick organization is purely papering over the cracks.

Muddled communication has often been the first point of contact with new companies. Many companies prefer easy, con-confrontational action that they can take immediately to challenging questions and the need to may be think and behave in new ways.

Only when presented with unequivocal evidence are some companies prepared to take hard decisions, especially if it involves the agreement and support of peers—worse still—bosses.

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 Ideal Customer


Before you begin to pick up phone, or write a letter, the starting point is to target the ideal customers, or ideal potential customers.

One of the best places to start in finding your ideal customer is with your existing customers. List down those 10 to 30 customers who are current, active and successful. Think about what kind of company, organization or individuals that they are.

If you sell to businesses consider the size, nature and location of the company. Whereabouts are they based geographically? What kind of business are they in? What are their size, turnover and other factors that may influence their suitability?

What sort of attitude must they have towards your products or services? What facts would you need to check for to make them a suitable prospect? Who would it be best to contact within that organization? Is there anybody else that you could also contact who may be easier to get through to on an initial call?

If you sell to individuals or consumers, you may want to consider what time of day is best to catch your potential prospects in, what are their ages, hobbies, background, social status, and income etc?

The importance of carefully targeting ideal customers twofold. The first is that we make greater use of our time; by not wasting time with people or companies who can’t or won’t buy, we can increase our chances that our time spent prospecting will pay off.

We can also protect ourselves from some of the rejection that may come with telephoning for appointments. It is no secret that when you are prospecting by telephone, you are going to get a lot more ‘nos’ than you might do when you are seeing people face-to-face.

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.

 

Behavior Modification


The law of effect states that if behavior is reinforced it will tend to to be repeated. The kind of reinforcement and its timing are important aspects of behavior modification. Reinforcement can be positive or negative. Positive reinforcement strengthens the association between a response and its reward. A negative reinforcement can take the form of either withholding a positive reward or administering a “painful” punishment.

The closer positive reinforcement follows the desired behavior, the more likely it will be repeated. This can cause some problems in an organizational setting. For example, money has the potential for being an extrinsic reinforcer, but money is usually paid at regular intervals, which may occur too long after the behavior being reinforced. For this reason reinforcers such as praise and recognition are easier to administer.

Although it is useful to know about behavior modification and to apply it when appropriate, it clearly is only a part of the total process of motivation. As such all management techniques, it is not a panaea.

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

BPR Combines Several Jobs


The most basic and common feature of reengineered processes is the absence of an assembly line; that is, many formerely distinct jobs or tasks are integrated and composed into one. The payoffs of integrated processes, case workers, and case teams can be enormous. Eliminating handoffs means doing away with the errors, delays, and rework that they engender. Typically, a case worker-based process operates ten times faster than the assembly line version that it replaces. Moreover, because the new process generates fewer errors and misunderstandings, the company doesn’t need additional people to find and fix them.

 

Integrated processes also have reduced process administration overheads. Because employees involved in the process assume responsibility for making sure that customer’s requirements are met on time and with no defects, they need less supervision. Instead, the company encourages these empowered employees to find innovative and creative ways to reduce cycle time and cost continually while producing a defect-free product or service. Improved control is another benefit of integrated processes; because they involve fewer people, assigning responsibility for them and monitoring performance is easier.

 

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

Leveraging better Payment Terms


Negotiating better payment terms is always easier if a company has some bargaining chips. The party with the most to lose or the most to gain is always on the defensive; therefore, the secret to successful negotiating is to develop leverage that forces the other party into one or the other of these positions. Other than not meeting payroll, only two conditions might create circumstances more detrimental to a company on the brink of failure than to a creator: (1) being evicted from the building that houses the business, and (2) not receiving critical materials and services to keep the business going.

 

Not much can be done about either situation. A business must be housed, and it must have materials and services to make and sell products. That’s why landlords and critical suppliers top the payment priority list. Some leverage can be achieved, however. Most lessors would rather work out an extended payment arrangement than go to the expense and aggravation of a formal eviction. As long as the renter’s market holds, deferring rent payments for at least several months should be a real possibility. That’s not a permanent solution, but it does provide some breathing space.

 

It might be possible to leverage critical suppliers to gain better terms. The threat to go to a competitor usually brings even the most recalcitrant supplier to terms. In most cases, a supplier has more to lose (the overdue amounts plus legal costs to sue) or gain (future sales) than a debtor company does. At least making suppliers think that’s the case is good negotiating ploy.

 

Assuming that you have taken reasonable precautions to safeguard your personal assets, the worst thing that can happen is that you will be forced to liquidate the business. Granted, this can be a blow to any entrepreneur’s ego. It might also reduce personal income for a while, however, once the liquidation is over, you can always begin again. As long as creditors believe that they have the most to lose, you’re in driver’s seat. The ultimate creditors’ threat is to force the company into bankruptcy. By making it clear that this won’t hurt and that other plans for the future are in the works anyway, such leverage vanishes abruptly.

 

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

Recovery of Loss-making Companies


A surprising number of large companies have one or more subsidiaries making losses at any time. The number of private companies which fail is further ample proof of loss-making businesses. One response is a desire to sell the loss-making business, which is really an attempt to walk away from a situation which is both a problem and an opportunity. Even if a buyer is found, the purchase price is likely to be lower than net asset value. If loss-making business is sold to the existing management interesting questions are raised. What will they do as owners of the business different from before? Why was this not done at the direction of the group previously? The opportunity is to turn the business into profit before considering selling it, because even if a sale makes sense, it will be easier to achieve and a much higher price should be obtained.

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