Employee-Employer Contract


Employees and employers are engaged in a stakeholder relationship that includes numerous expectations by both parties. The employer, for example, has assumed various duties and obligations. Some of these responsibilities are economic or legal, others are social or ethical in nature.

The relationship is clearly more than simply paying a worker for the labor provided. Cultural values and traditions also play a role. In most Western countries, employers feel they have a duty to include workers on the board of directors to assist in forming company policy. For many years, Japanese employers have offered their workers lifelong employment, although this practice has become less widespread in recent years.

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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Global Sourcing & Operating Guidelines


Levi Strauss & Company developed the following policy to guide the firm through the maze of international business and maintain its high standard of ethical integrity. Levi Strauss & Co., has a heritage of conducting business in a manner that reflects its values. Because the company sources in many countries with diverse cultures, it must take special care in selecting business partners and countries whose practices are not incompatible with its values. Otherwise, its sourcing decisions have the potential of undermining this heritage, damaging the image of its brands and threatening its commercial success.

Business Partner Terms of Engagement

Terms of Engagement address issues that are substantially controllable by our individual business partners.

We have defined business partners as contractors and subcontractors who manufacture or finish our products and suppliers who provide material (including fabric, sundries, chemicals and/or stones) utilized in the manufacturing and finishing of our products.

i.            Environmental Requirements: We will only do business with partners who share our commitment to the environment and who conduct their business in a way that is consistent with Levi Strauss & Co.’s Environmental Philosophy and Guiding Principles.

ii.            Ethical Standards: We will seek to identify and utilize business partners who aspire as individuals and in the conduct of all their businesses to a set of ethical standards not incompatible with our own.

iii.            Legal Requirements: we expect our business partners to be law abiding as individuals and to comply with legal requirements relevant to the conduct of all their businesses.

iv.            Employment Practices: We will only do business partners whose workers are in all cases present voluntarily, not put at risk of physical harm, fairly compensated, allowed the right of free association and not exploited in any way. In addition . . . . specific guidelines [are provided in the areas of]: wages and benefits, . . . . working hours, . . . . . child labor, . . . . prison labor/forced labor, . . . . health and safety, . . . . discrimination, [and] . . . . disciplinary practices.

v.            Community Involvement: We will favor business partners who share our commitment to contribute to the betterment of community conditions.

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.

Foreign Licensing


The method of going global through the use of contractual agreements is foreign licensing. Such an agreement grants foreign marketers the right to distribute a firm’s merchandise or use its trademark, patent, or process in a specified geographic area. These arrangements usually set certain time limits, after which agreements are revised or renewed.

Licensing offers several advantages over exporting, including access to local partners’ marketing information and distribution channels and protection from various legal barriers. Because licensing does not require capital outlays, many firms, both small and large, regard it as attractive entry strategy. Like franchising, licensing allows a firm to quickly enter a foreign market with a known product or concept. The arrangement also may provide entry into a market, which government restrictions close to imports or international direct investment.

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.

Forces in the Environments


Environment is the sum of all the forces surrounding and influencing the life and development of the firm. The forces themselves can be classified as external or internal. Management has no direct control over them, though it can exert influences. The external forces are commonly called uncontrollable forces and consist of the following:

  1. Competitive: kinds and numbers of competitors, their locations, and their activities.
  2. Distributive: national and international agencies available for distributing goods and services.
  3. Economic: variables (such as GNP, unit labor cost, and personal consumption expenditure) that influence a firm’s ability to do business.
  4. Socio-economic: characteristics and distribution of the human population.
  5. Financial: variables such as interest rates, inflation rates, and taxation.
  6. Legal: the many kinds of foreign and domestic laws by which international firms must operate.
  7. Physical: elements of nature such as topography, climate, and natural resources.
  8. Political: elements of nations’ political climates such as nationalism, forms of government, and international organizations.
  9. Socio-cultural: elements of culture (such as attitudes, beliefs, and opinions) important to international businesspeople.
  10. Labor: consumption, skills, and attitudes of labor.
  11. Technological: the technical skills and equipment that affects how resources are converted to 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.

 

Direct-mail Marketing: Checklist


  • Is there a perceived need for the product or service?
  • Is it practical?
  • Is it unique?
  • Is the price right for your customers or prospects?
  • Is it a good value?
  • Is the markup sufficient to assure a profit?
  • Is the market large enough? Does the product or service have broad appeal?
  • Are there specific smaller segments of your list that have a strong desire for your product or service?
  • Is it new? Will your customers perceive it as being new?
  • Can it be photographed or illustrated interestingly?
  • Are there sufficient unusual selling features to make your copy sizzle?
  • Is it economical to ship? Is it fragile? Old shaped? Heavy? Bulky?
  • Can it be personalized?
  • Are there any legal problems to overcome?
  • Is it safe to use?
  • Is the supplier reputable?
  • Will backup merchandise be available for fast shipment on reorders?
  • Might returns be too huge?
  • Will refurbishing of returned merchandise be practical?
  • Is it, or can it be, packaged attractively?
  • Are usage instructions clear?
  • How does it compare to competitive products or services?
  • Will it have exclusivity?
  • Will it lend itself to repeat business?
  • Is it consumable, so that there will be repeat orders?
  • Is it faddish? Too short-lived?
  • Is it too seasonal for direct mail selling?
  • Can an add-on to the product make it more distinctive and salable?
  • Will the number of stock keeping units – various sizes and colors – create problems?
  • Does it lend itself to multiple pricing?
  • Is it too readily available in stores?
  • Is it like an old, hot item, so that its success is guaranteed?
  • Is it doomed because similar items have failed?
  • Does your mother, wife, brother, husband, sister, or kid like it?
  • Is direct mail the way to go with it?
  • Does it fill an unfilled niche in the marketplace?

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.

 

Basic Organizational Structures


Although there is an almost infinite variety of structural forms, certain basic types predominate in modern complex organizations. There are three basic organizational structures. The conglomerate structure is a variant of divisional structure and is thus not depicted as a fourth structure. Generally speaking, each structure tends to support some corporate strategies over others.

  • Simple Structure has no functional or product categories and is appropriate for a small, entrepreneur-dominated company with one or two product lines that operates in a reasonably small, easily identifiable market niche. Employees tend to be generalists and jacks of all trades.
  • Functional structure is appropriate for a medium-sized firm with several related product lines in one industry. Employees tend to be specialists in the business functions important to that industry, such as manufacturing, marketing, finance, and human resources.
  • Divisional structure is appropriate for a large corporation with many product lines in several related industries. Employees tend to be functional specialists organized.
  • Strategic business units (SBU)are a recent modification to the divisional structure. Strategic business units are divisions or groups of divisions composed of independent product-market segments that are given primary responsibility and authority for the management of their own functional areas. An SBU may be of any size or level, but it must have 1) a unique mission, 2) identifiable competitors, 3)an external market focus, and 4) control of its business functions. The idea is to decentralize on the basis of strategic elements rather than on the basis of size, product characteristics, or span of control and to create horizontal linkages among units previously kept separate.
  • Conglomerate structure is appropriate for a large corporation with many product lines in several unrelated industries. A variant of the divisional structure, the conglomerate structure (sometimes called a holding company) is typically an assemblage of legally independent firms (subsidiaries) operating under one corporate umbrella but controlled through the subsidiaries’ boards of directors. The unrelated nature of the subsidiaries prevents any attempt at gaining synergy among them.

If the current basic structure of corporation does not easily support a strategy under consideration, top management must decide if the proposed strategy is feasible or if the structure should be changed to a more advanced structure.

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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