Market-Development Strategy


A market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. Examples include introducing existing products to different geographical areas or different buying publics.

The mix of marketing activities used must often be varied to reach different markets with differing buying patterns and requirements. Reaching new markets often requires modification of the basic offering, different distribution outlets, or a change in sales effort and advertising.

Market development involves a careful consideration of competitor strengths and weaknesses and competitor retaliation potential. Moreover, because the firm seeks new buyers, it must understand their number, motivation, and buying patterns in order to develop marketing activities successfully. The firm however must consider the strengths, in terms of adaptability to new markets, in order to evaluate the potential success of the venture.

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.

 

Job Restructuring


Job restructuring comprises an important group of work organization methods which aim at increasing both productivity and job satisfaction. Increased job satisfaction itself can also result in higher productivity and better motivation. Many managers and workers feel that job restructuring , covering job enrichment and job enlargement, is a promising strategy for improved job satisfaction.

Job restructuring can build up the content of jobs, so as to enhance skills, interest, initiative and range of responsibility while reducing frustration and monotony. Job enrichment and job enlargement are concerned with job and work changes through modification of the workers’ tasks. Restructuring, the addition of further similar tasks, is often referred to as job enlargement and can be viewed as horizontal change. One variation of job enlargement is job rotation. Workers are “rotated” between various fragmented activities with some degree of choice. Vertical change involves increased individual involvement through the addition of different tasks and duties; such changes are generally referred to as job enrichment.

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.

 

Productivity Measurement System


One of the important steps in productivity improvement is establishing a productivity measurement system with the enterprise. This in itself brings some improvement in performance by making people more aware of the meaning of productivity. The following advice could be useful in setting up the measurement system:

  • Determine the elements of the enterprise that most need to be monitored.
  • Determine the types of measure to be used.
  • Select perfect concepts and units of measurement for the output and input of the company as a whole, and for the critical sub-activities.
  • Ascertain the availability of data and make necessary compromises.
  • Select a post activity, section or group within the organization, and test the measurement system to obtain periodic feedback on the results.
  • Assess the system’s value, make any modifications and conduct a new pilot activity if the modifications completely change the original system design.

A measurement system must consider cost effectiveness, the limitations of productivity measurement and whether total factor measurement is necessary; in other words, it must determine the range and terms of the measurement system tasks. It must be easy to use and serve to identify the reasons for the organizational changes.

The general consideration on productivity management helps in identifying the so-called organizational meta-structure of productivity improvement process. Every given method of productivity improvement covers:

  1. Organizational forms of productivity improvement
  2. Productivity improvement areas
  3. Productivity improvement techniques

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.

Coping with Red Tape


No business operates in a vacuum or under a glass dome. New businesses are subject to the pressures and requirements of society’s legal and regulatory system. If you need a trademark, a company brand, or a patent, or if you’re thinking of becoming incorporated, you will definitely need legal help. Many other situations require the help of a lawyer too.

Likewise, you’ll be coping with government regulations, many of which were written with larger businesses in mind are applied to SMEs anyway. Disposing off hazardous wastes, for example, may be difficult for small companies, which typically lack their own water-treatment facilities. Similarly, small businesses may have problems complying with disabilities laws, designed to ensure that disabled consumers receive the same level of services as other customers. Thus SMEs may be required to make costly modifications to their facilities or prove that doing so would pose an economic hardship.

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.

Executive Summary


The executive summary, sometimes called the epitome, executive overview, management summary, or management overview,  is a brief consideration of the document addressed to managers, who rely on it to cope with the  tremendous amount of paperwork they must read everyday. Generally, managers need only a broad understanding of the projects the organization undertakes and how they fit together into a coherent whole.

An executive summary for a document under 20 pages is typically one page (double spaced). For a longer document the maximum length is often calculated as a percentage of the document, such as 5 percent.

The executive summary presents information to managers in two parts:

  1. Background: this section explains the background of the project: the specific problem or opportunity—what was not working effectively or efficiently, or what potential modification of a procedure or product had to be analyzed.
  2. Major findings and implications: the methods are covered in only one or two sentences. The conclusions and recommendations, however, receive a full paragraph.

An executive summary differs from an informative abstract. An abstract focuses on the technical subject (such as whether the new radio based system effectively monitors the energy usage); an executive summary concentrates on whether the system can improve operations at a particular company.

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

Developing the Channel Design


Channel design refers to those decisions involving the development of new marketing channels where none existed before, or to the modification of existing channels. Channel design is an important decision as the channel is a means through which the firms can find new prospects, communicate to customers, and physically deliver the product. Of all the marketing decisions, the ones regarding distribution (channel) are the most far-reaching. It can revamp a promotional program, modify its product line. But once a company sets up its distribution channels, it generally find changing them to be difficult. Channel design, therefore, does not refer to channel structures that have simply evolved, it refers only to those where the management has taken an active role in the development of the channel.

 

Specifically, the channel design decision includes:

1.    the number of channels to employ;

2.    the number of levels to be included in each channel;

3.    the type of intermediaries to employ; and

4.    the number of channel intermediaries at each level.

 

The selection of the best channel (channel design decision) to accomplish the objectives is challenging because:

a)      channels need to be adopted depending on the target segment and positioning;

b)      the goals of the channel members may differ;

c)      the alternatives are numerous.

 

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

Knowledge Engineering


In the traditional approach to systems design, a system analyst, together with the ultimate end-users, or clients, for the project, will complete a functional specification of the system. At that point, the project is essentially in the hands of professional project management and programming staff, because that group possesses the knowledge and skill required to deliver the agreed upon features and functions. In the development of knowledge systems, this is simply not the case. Following the specification of function, a new problem arises. This is because it is not an algorithm that is being developed but knowledge that is being encoded for machine use.

 

The immediate problem is that traditional applications developers do not have sufficient knowledge of the applications area to complete the project from the starting point of a functional specification. This information generally exists in a variety of forms, depending on the application area. In some cases an individual or group of individuals may uniquely possess the relevant knowledge. In other cases, the knowledge may exist in the form of published materials like manuals or textbooks. In still other cases, the knowledge does not presently exist at all, and must be created and developed along with the system itself. This is an extremely difficult circumstance. Further compounding this problem is a critical factor: Regardless of the form in which the knowledge currently exists, it is not in a form that is ready for use by a knowledge system. Someone must decide what knowledge is relevant and desirable for inclusion, acquire the knowledge, and represent it in a form suitable for a knowledge system to apply. In all but trivial applications the task of representing the knowledge requires not only coding individual “chunks” of knowledge, but also organizing and structuring these individual components.

 

Historically, owing to the remoteness and enigmatic quality of artificial intelligence technologies, the person doing the actual systems development and the “expert,” or source of knowledge, were not the same. The availability of tools, in place of enigmatic technologies, has had an impact on reducing this problem. Even if one can imagine the case in which the “expert” whose knowledge is to be modeled is also an “expert” with the use of artificial intelligence development tools, there still remains a sizable problem.

 

In case where knowledge resides with some practitioner or expert, it does not exist explicitly as a series of IF …THEN rules, ready to be encoded. Most practitioners and experts find it difficult to explain explicitly what they are doing while solving problems. They are not cognizant of the underlying rules they are applying. Their expertise has been developed from numerous experiences and involves highly developed pattern recognition skills and heuristics.

 

In the case where the knowledge to be included is contained in text material like manuals, regulations, procedures, and the like, the information is still not in a form ready for inclusion in an expert system. It must be remembered that one of the most often cited advantages of expert systems is that they make explicit the knowledge that is most often implicit and unavailable for review, evaluation, dissemination, and modification. The task of making knowledge both explicit and available for systems application is that of knowledge engineering. Most literature on the development and application of knowledge systems has identified the need for individuals skilled in knowledge engineering as a critical factor to widespread use of technology.

 

Knowledge engineering involves acquiring, representing, and coding knowledge. The representation and coding aspects of systems development have been greatly impacted by these newly available tools. The speed with which prototyping can be accomplished has also helped reduce some of the difficulty in acquiring or refining knowledge. The knowledge engineer now finds it much less costly in time and effort to represent, code, and test early approaches to systems development, providing a more efficient feedback loop. This feedback loop is critical in the development of knowledge systems. The end-user/client for the project is, by nature, going to be much more involved in the systems design process. The “programmer” often is incapable of deciding if the system is behaving properly, owing to a lack of fundamental knowledge about the application area. This is simply not as strong a factor, where the programmer is capable of evaluating the accuracy and efficiency of algorithms. When the product is actionable knowledge rather than algorithms, the ability to evaluate project progress shifts to the end-user/client. This creates the increased emphasis on the feedback loop.

 

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

Reinterpreting Products


Product is not what the engineer explicitly says it is, but what the consumer, implicitly demands that it shall be. Thus the consumer consumes not things, but expected benefits—not cosmetics, but the satisfactions of the allurements they promise; not quarter-inch drills, but quarter-inch holes; not stock in companies, but capital gains; not numerically controlled milling machines, but trouble-free and accurately smooth metal parts; not low-cal whipped cream, but self-rewarding indulgence combined with sophisticated convenience.

The product does not exist as a separate entity. The product is what the consumer perceives it to be. Consumer perceptions are strategically important at all stages of product development, from initial conceptualization to concept testing, to positioning, to designing, manufacturing, packaging, pricing, delivering, advertising, selling, financing, and servicing. Product analysis, therefore, embraces systematic research at all stages. The focus of such research is not on the product itself, but on the consumers and how they respond to the various alternatives at each stage.

To simplify the exposition I am drawing examples primarily from the field of consumer products, such as the tangible items found on the shelves of supermarkets, in department stores, appliances shops, and automobile showrooms. In doing so I am not overlooking the importance of the field of services, such as airlines, insurance companies, banks, and travel agents; or the field of industrial goods, such as computers, chemicals, textiles, and lift trucks. While there are some differences in marketing strategies from one category to the next, the underlying principle of delivering customer satisfaction is the same.

Therefore, the producer should analyze actual or potential product or service in terms of its ability to meet a consumer need or want. It is axiomatic that consumers cannot draw the blueprints or provide detailed specifications for producers. It is up to the business person to experiment with new products or services, or modifications of old ones, and test their acceptance in the marketplace. Advertising can then be used to point out their presumed need/want satisfying properties to would-be users.

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