Traditional Control Systems


Traditional Control Systems are based on setting standards and then monitoring performance. These systems include three categories of controls: diagnostic controls, boundary systems and interactive controls.

  • Diagnostic Control Systems (such as budgets) allow managers to determine whether important targets have been met and if necessary, to figure out why they haven’t been.
  • Boundary Control Systems are policies that identify the boundaries within which employees are to operate. Ethical rule against accepting gifts from suppliers are an example.
  • Integrative Control Systems involve controlling employees interactively, by questioning them 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.

Person Marketing


Person marketing is a category of nontraditional marketing that refers to efforts designed to cultivate the attention, interest, and preferences of a target market towards a celebrity or authority figure. Celebrities can be real people, functional characters, or widely recognized authority figures.

Campaigns for political candidates and the marketing of celebrities are examples of person marketing. In political marketing, candidates target two markets. They attempt to gain the recognition and preference of voters and the financial support of donors.

The big winners among celebrity endorsers are professional sportspeople. The fans are eager to participate in an illusion—those landlocked pillars of their community pretending they are finally going to cash in their chips and set sail for uncharted waters.

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.

Checklist for Evaluating a Franchise


The Franchise

  • Did your lawyer approve the franchise contract you are considering after he or she studied it paragraph by paragraph?
  • Does the franchise give you an exclusive territory for the length of the franchise?
  • Under what circumstances can you terminate the franchise contract and at what cost to you?
  • If you sell your franchise, will you be compensated for your goodwill (the value of your business’s reputation and other intangibles)?
  • If the franchisor sells the company, will your investment be protected?

The Franchisor

  • How many years has the firm offering you a franchise been in operation?
  • Has it a reputation for honesty and fair dealing among the local firms holding its franchise?
  • Has the franchisor shown you any certified figures indicating exact net profits of one or more going firms which you personally checked yourself with the franchisee? Ask for the company’s disclosure statement.
  • Will the firm assist you with:

A management training program?

An employee training program?

A public relations program?

Capital?

Credit?

Merchandising ideas?

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.

Want Satisfaction and Levels of Living


The level of want satisfaction achieved in a given economic society is hard to measure. Ordinarily it is expressed in terms of per capita income—sometimes gross and sometimes net, depending on the availability of data. There may be a great dispersion around the average; and the average income figure may be misleading.  Nevertheless, per capita income appears to be one of the best measures available of the performance of an economy.

Sometimes people judge the performance of an economy on the basis of whether per capita incomes are at a satisfactory level. The implication is that if the level is below satisfactory, something ought to be done about it—that everyone is entitled to a satisfactory level of living. Judgments of these kinds are not very valuable from the point of view of economic analysis.

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.

 

Factors that Affect Price


The price of everything—from bubble gum to space shuttle—is determined by some combination of demand and supply as analyzed by managers. Demand factors are the things that determine the strength of the consumers’ desire and ability to pay for goods and services. Supply factors are the things that determine the amount of goods and services producers place on the market. Figured in supply are the costs of producing and marketing a product and the number of competing procedures. So when pricing, managers must consider (1) demand, (2) production and marketing costs, and (3) competition.

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.

 

Common Advertising Techniques


It’s a good idea to be aware of certain common advertising techniques. There is nothing illegal or even misleading about a food advertisement that tempts you because it is photographed in a warm, cozy setting that reminds you of dinners at your grandmother’s house. But you should be aware that you may be buying the product because of the romanticized advertisement. Frequently used advertising techniques include:

  • Use of glamorous figure to endorse a product;
  • Use of sentimental pictures to awaken feelings of longing and nostalgia that the ad suggests may be fulfilled by using the product;
  • Use of “can be,” “up to,” or other “weasel words” that enable the advertiser to avoid making firm promises;
  • Implications that only the most up-to-date people use a certain product;
  • Gimmicks that make you feel you are getting a bonus, such as a free hairbrush attached to a bottle of shampoo;
  • Creation of market through convincing you that a new product will revolutionize your life.

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.

Price Breaks the Rules


In retail business there are three cardinal rules: 1) Do anything you can to lure in customers; 2) build on the bedrock of “location; 3) keep your doors open as long as possible. The express lane at the Price Club is 2,000 items or less.

Not only are the Price Club’s huge discount warehouses in atypical, out of the way locations, but people actually pay to get in the door, and you need an elephant’s memory to figure out there hours. When value is high, people are willing to spend a small fortune and travel to faraway places.

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.

What Strategic Planning is not?


Clearly, strategic planning is no panacea. Strategic planning is simply a set of concepts, procedures, and tools designed to help leaders, managers, and planners think and act strategically. Used in wise and skillful ways by a “coalition of the willing,” strategic planning can help organizations focus on producing effective decisions and actions that further the organization’s mission, meet in mandates, and satisfy key stakeholders. But strategic planning is not a substitute for strategic thinking and acting. Only caring and committed people can do that. And when used thoughtlessly, strategic planning can actually drive out precisely the kind of strategic thought and action it is supposed to promote.

Furthermore, strategic planning is not a substitute for leadership. There is simply no substitute for leadership when it comes to using strategic planning to enhance organizational performance. At least some key decision makers and process champions must be committed to the strategic planning process, or any attempts to use it are bound to fail.

In addition, strategic planning is not synonymous with creating an organizational strategy. Organizational strategies have numerous sources, both planned and unplanned. Strategic planning is likely to result in statement of organizational intentions, but what is realized in practice will be some combination of what is intended and what emerges along the way. Strategic planning can help organizations develop and implement effective strategies, but they should also remain open to unforeseen opportunities. Too much attention to strategic planning and excessive reverence for strategic plans can build organizations to other unplanned and unexpected—yet incredibly useful—sources of information, insight, and action.

The discipline necessary for strategic planning can be of two sorts. The first harkens back to Latin root of the word “discipline,” emphasizing instruction, training, education, and learning. The second embodies later interpretations of the word, emphasizing order, control, and punishment. Emphasis should be placed on education and learning, although there clearly are occasions when imposing order, taking control, and enforcing appropriate sanctions are appropriate. Certainly, key leaders, managers, and planners can best use strategic planning as an educational and learning tool, to help them figure out what is really important and what should be done about it. Sometimes this means following a particular sequence of steps and preparing formal strategic plans, but not necessarily. The ultimate goal of strategic planning should not be a rigid adherence to a particular process or an instance on the production of plans. Instead, strategic planning should promote wise strategic thought and action on behalf of an organization and its key stakeholders. What steps to follow, in what sequence, and whether or not to prepare formal plans are subsidiary concerns.

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.

Calculating Market Share


Market share is the ratio of the competitor’s annual sales to the total annual sales of competitive products in the market being served by the competitors. It is usually measured by dividing the  competitor’s sales in dollars by the total sales volume in dollars for the industry. Dollars are used in the calculation because monetary value is usually easy to obtain.

As may be seen from the dimensions describing the horizontal axis of the economic experience curve. It would make more sense to measure the market share in units sold during the year. Dollar volume does not double when volume in units shipped doubles if price decreases with experience.

The dimensions of the experience curve are fully allocated unit expense in constant dollars and cumulative number of units produced. The reference to doubling sales is measured in units shipped. Because this kind of measure could be counted off on the horizontal axis of the curve, it is possible to relate the growth in shipments to fully allocated expense in constant dollards, a reasonable profit margin, and the resulting dollar volume of sales.

The difficulty in obtaining the information needed to calculate market shares in terms of units shipped is often resolved by trade association data, which reports in both units and dollars. Still the associations may not include every possible competitor among their membership. In almost all cases, however, the non-members are not big enough to be significant. Even without the non-member data, the trade association information is a good approximation to the actual figures.

Given that sufficient data is available, it is not entirely necessary to know a competitor’s exact market share. The information most meaningful to a manager is market share compared to that of the nearest competitor. This gives rise to the concept of a market share ratio.

A proposed ratio that has special meaning when used in conjunction with the economic experience curve. The ratio may be best understood as:

Market Share Ratio =   Your Market Share __________

Market Share of Your Biggest Competitor

The interesting result of defining the ratio this way is that only one competitor has a ratio greater than one. All the others have functional ratios, less than one. For instance, if you the largest market share your biggest competitor will have a smaller share than you, and your ratio will be a number greater than one. If your biggest competitor has a market share larger than yours, your ratio will be less than one.

Because only one competitor has market share ratio greater than unity, the dominant competitor is identified by a number greater than one. Also, the degree of the biggest competitor’s dominance is indicated by the size of the number.

Typically, when a new business concept arises that can be represented by an economic experience curve, several competitors enter the marketplace within a very short span of time. There is an initial market penetratiuon in which market shares are established. Managers have learned how difficult it is to change the market share of the competitors once they have been established. Market shares among suppliers who are competing forcefully tend to remain reasonably constant. Cummulative experience relative to other competitors tends to be aligned with the market share ratios.

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

Marketing Communication


Communication is a constant activity. It is universal and essential feature of human expression and organization. Its scope is as broad as society itself, for every social act involves communication. Communication is concerned with sending and receiving knowledge, ideas, facts, figures, goals, emotions and values. It is much more than an occasional technique employed to convey a message. It is a ceaseless activity of all human beings, and therefore also of all human organizations. Communication is also a central element of the way in which people relate to and cooperate with each other, interpersonal event which is the building block of society. Individuals not only send and receive information in order to cooperate, but parallel with this individuals are constantly communicating their self-images to all around them. Whether we like it or not, whatever a person does as a social act will be observed by others, and is therefore a communication about themselves.

 Communication is more than a marketing tool. It is also an important basis of culture. It has fostered language and music, literature and philosophy, science and poetry. So in one sense, communication can be viewed as neutral and benign, a form of human interaction which helps society and the organizations within it to work well, and which can only benefit those who take part in it. This would be a reasonable approach to a definition if every communication included everything that could possibly be said on a subject, but of course this would be impossible. Communication is a selective art, as important for what it does not convey as for what it does convey.

 Communication is also a human skill, so it is concerned with the state of mind of the communicator, and with the state of mind of the person intended to receive the communication. Communications objectives are often specified as outcomes of attitude change.

 Does this mean that marketing communication is propaganda? To qualify as propaganda, business communication must be seeking to influence the emotional attitudes of others without allowing them to make an effective or rational choice. This is never the situation in business, where in every market there are competitors, and for every product or service there is an alternative or substitute. Indeed, the existence of competition is now arguably a necessary precondition for business strategy. Communication by a business is a creative form of differentiation, always competitive, always seeking to persuade customers, shareholders and employees that its own market offerings are the best choice available. That is the sales pitch of the marketplace, not the imperative of propaganda.

 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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