Company Demographics


For all customers or prospect records the following basic attributes will lay a solid foundation for numerous segmentations:

  1. Category code: A four-digit code is usually a sufficiently descriptive definition your market is concentrated in several Standard Industry Codes, then going to the six or eight digit level may be appropriate. Remember the SIC is currently undergoing revision, so be flexible with this field.
  2. Company size: There are two choices – sales volume or employee size. It is probably best to use employee size, as it is more easily obtained and more accurate than company revenue. Record employee numbers by site so that they can be rolled up to the corporate level.
  3. Site Type and Linkage: There are some standard definitions here such as branch, division and corporate headquarters. It is important that you take time to develop a site definition that fits your business as this might include plant, research center, etc. secondly, link the sites to a corporate structure, so that a roll-up to the enterprise level can be carried out to look at the customer picture.
  4. Financial year: For those selling situations that involve the customer needing to budget for your product or service, the knowledge of the fiscal year becomes critical, as this will drive the buying process and therefore your selling cycle. Most companies are on a calendar/fiscal year, but about 20 percent are on a different fiscal year basis. In the consumer market this might also be relevant – for example in acquiring expensive items.

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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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 www.asifjmir.com, and my Lectures.

Inflation and Disinflation


Fiscal policy is related to inflation, which occurs when the prices of goods and services rise steadily throughout the economy. Although many factors (such as increases in the prices of imported goods) contribute to inflation, government borrowing is major factor. When the government borrows great sums of money to bolster the economy, the total amount of money circulating tends to increase. With more money chasing the same quantity of goods and services, inflation increases too.

Theoretically, the government is supposed to pay back its debt during inflationary times, thereby taking some of the excess money out of the economy and slowing inflation to moderate level. This system worked throughout 1950s and 1960s, but during the 1970s, inflation kept building. By the end of the decade, prices were increasing by almost 14 percent a year.

Inflation of this magnitude brings an unproductive mind-set. People become motivated to buy “before the prices goes up,” even if they have to borrow money to do it. With greater competition for available money, interest rates increase to a level that makes business borrowing riskier and business expansion slower. Businesses and individuals alike begin spending on short-term items instead of investing in things like new factories and children’s education, which are more valuable to the nation’s economy in the long run.

Because of the peculiar psychology that accompanies high inflation, slowing it has always been difficult. In addition, the causes of inflation are complex, and the remedies can be painful. Nevertheless, several factors conspired to bring about a period of disinflation, a moderation in the inflation rate, during the 1980s.

Whether inflation will remain under control is debatable. The country is still vulnerable to outside shock. Bad weather could jack up food prices, and political upheavals could limit the supply and boost the price of vital raw materials. Also, government efforts to stimulate the economy could rekindle inflation. When the economy slumps, the government is inclined to increase the money supply, which tends to drive prices up.

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.