Appointing a Dealer


  1. The Branch Manager perceives a need for an additional dealer in an area. Need occurs if any existing dealer leaves or is removed. It could also happen when the company expands into new territory.
  2. The Branch Manager has to convince the general manager of the division about the need for anew dealer.
  3. The selection process for the dealer begins with placing advertisements in newspapers and trade magazines inviting applications. Applications for dealership are directed to the concerned branch manager.
  4. The branch manager then reviews the application forms and prepares a shortlist if necessary. The company has not laid down any concrete guidelines for shortlisting at this stage. The branch manager is allowed to exercise his discretion.
  5. The shortlisted applicants are interviewed by the branch manager along with the regional sales manager of the division. Whatever additional information is required is obtained from the applicants during the interview. The dealers are evaluated on:
    1. Prior business record
    2. The capability of maintaining and running his own showroom
    3. Financial strength
    4. Inventory: The dealer must have enough working capital for maintaining specified level of inventory. This condition is however is applied only in the case of dealers whose territories are located considerably away from a branch office. This is because there is a company owned warehouse along with every branch office and for dealers located in the same cities there is no necessity to maintain separate inventory
    5. Contacts with customers
    6. Availability of salesforce to service customer effectively. In addition, technicians also need to be present to meet the after-sales service requirements of the products
  6. The final selection decision is made after talking with the bankers of the applicant. This is done to check the veracity of information regarding financial strength and prior business experience. It is only after the company is satisfied regarding all aspects of he information, that it sends the dealer an appointment letter
  7. The appointment letter lays down several terms of the contract that have to be fulfilled by the dealer. The company expects the dealers not to sell any competitors’ products. The dealer is also expected to conduct his business only within the clearly demarcated sales territory allocated to him by the 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.

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Rolling up your Sleeves


If there’s one way that you can get other people to become more interested and more focused on improving themselves, it is to lead by example. Take time out to go on training courses, even though you may be too busy. Take time to read useful information, not just novels, books or newspapers but actual up-to-date books and texts from the experts within your industry. Practise your skills, use them and make sure that they’re developed as far as they possibly can be. If it means learning a new language or learning a skill that you don’t have then take on that challenge. It is very difficult to manage people well if you have low self-esteem, but if you feel good about yourself and you have that feeling of progress and achievement, then it is very hard for this not to rub off on other people.

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.

Promoting Sales


First stage marketing strategies should focus on sales promotions that will attract immediate customers and selling methods that will ensure repeat business. First stage companies can also benefit from sales and promotion activities, but with a focus on short term rather than long term benefits. Ideas include:

  1. Invite a local newspaper to write an article on some unique aspect of the company.
  2. Invite television reporters to cover a special event sponsored by the company (fund raising drive, a banquet honoring an employee, or the introduction of snappy new product).
  3. Start a charity book collection drive at local schools.
  4. Sponsor a young people’s athletic team.
  5. Sponsor a civic band or float in a local parade.
  6. Donate materials, space, or services to community theater groups.
  7. Sponsor a paper, glass, aluminum, or plastic recycling drive.
  8. Get behind a social cause.
  9. Donate used computers, office equipment, etc., to local schools, hospitals, or welfare agencies.

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 Marketing


Direct market refers to direct mail, mail order, or coupon advertising, telephone marketing, or any method of marketing that attempts to make a sale right then and there. It does not require a middleman. It does not require a store. It only requires a seller and a buyer. And because of that, much unnecessary game playing is removed from the marketing process, leaving only accountable results. When you run a TV commercial or newspaper ad, you do all in your power to make sure that it works, but you don’t really know if it does. But when you engage in direct-mail advertising, the firm of direct marketing you will know clearly whether or not your mailing worked. Either it did or didn’t. If it worked, you’ll know how well it worked. And if it failed, you’ll know how dismally it failed.

Direct mail is the least expensive method of marketing on a per sale basis. The overall cost may be high, but if it works for you, it is inexpensive marketing. Direct marketing is more science than art. This is not to downplay the art of creating a successful direct mail package.

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.

 

Value Chain Analysis


The term value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that customers value. Customer value derives from three basic sources: activities that differentiate the product, activities that lower its cost, and activities that meet the customer’s need quickly. Value chain analysis (VAC) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value.

VCA takes a process point of view: it divides (sometimes called disaggregates) the business into sets of activities that occur within the business, starting with the inputs a firm receives and finishing with the firm’s products (or services) and after-sales service to customers. VCA attempts to look at its costs across the series of activities the business performs to determine where low-cost advantages or cost disadvantages exist. It looks at the attributes of each of these different activities to determine in what ways each activity that occurs between purchasing inputs and after-sales service helps differentiate the company’s products and services. Proponents of VCA believe it allows managers to better identify their firm’s strengths and weaknesses by looking at the business as a process—a chain of activities—of what actually happens in the business rather than simply looking at it based on arbitrary organizational dividing lines or historical accounting protocol.

Judgment is required across individual firms and different industries because what may be seen as a support activity in one firm or industry may be a primary activity in another. Computer operations might typically be seen as infrastructure support, for example, but may be seen as a primary activity in airlines, newspapers, or banks.

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.

Sole Proprietorships


Sole proprietorships, businesses owned and operated by one individual, are the most common form of business organization. Sole proprietorships are generally managed by their owners. Because of this simple management structure, the owner/manager can make decisions quickly. This is just one of many advantages of the sole proprietorship form of business.

Ease and Cost of Formation: Forming a sole proprietorship in relatively easy and inexpensive. In some countries, creating a sole proprietorship involves merely announcing the new business in the local newspaper. Other proprietorships, such as barber shops and restaurants, may require state and local licenses and permits because of the nature of the business. No lawyer is needed to create such enterprises, and the owner can usually take care of the required paperwork.

An entrepreneur starting a new sole proprietorship must find a suitable site from which to operate the business. Some sole proprietors look no farther than their garage or a spare bedroom that they can convert into a workshop or office. Computers, personal copiers, fax machines, and other high-tech gadgets have been a boon for home-based businesses, permitting them to interact quickly with customers, suppliers, and others. Many independent salespersons and contractors can perform their work using a notebook computer as they travel. E-mail and cell phones have made it possible for many proprietorships to develop in the service area.

Secrecy: Sole proprietorships make possible the greatest degree of secrecy. The proprietor, unlike the owners of a partnership or corporation, does not have to discuss publicly his or her operating plans, minimizing the possibility that competitors can obtain trade secrets. Financial reports need not be disclosed.

Distribution and Use of Profits: All profits from a sole proprietorship belong exclusively to the owner. He or she does not have to share them with any partners or stockholders. The owner decides how to use the profits.

Flexibility and Control of the Business: The sole proprietor has complete control over the business and can make decisions on the spot without anyone else’s approval. This control allows the owner to respond quickly or competitive business conditions or to changes in the economy.

Government Regulation: Sole proprietorships have the most freedom from government regulation. Most government regulations apply only to businesses that a certain number of employees, and securities laws apply only to corporations that issue stock. Nonetheless, sole proprietors must ensure that they follow all laws that do apply to their business.

Taxation: Profits from the business are considered personal income to the sole proprietor and are taxed at individual tax rates. The owner pays one income tax.

Closing the Business: A sole proprietorship can be dissolved easily. No approval of co-owners or partners is necessary. The only legal condition is that all loans must be paid off.

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.

Consumers of Advertising


It is vital, from the outset, to guard against the normal psychological tendency to impose your advertising “pattern” on a rather complex reality. Consider, for example, that the advertisements you may encounter through television, radio, the campus newspaper, magazines, direct mail, billboards, and the like are only a fraction of all the forms that advertising takes in other places in other times, for different purposes, and among different audiences. Yet, there is a tendency to equate that fragmented reality with the whole. Advertising is bad (good) for children; advertising is good (bad) for the economy; advertising helps us make wise (unwise) purchase decisions; advertising makes goods cost more (less); and so on. Simply, some advertising may be (or do) any of these things. All advertising is however far too complex to permit such over-simplifications.

By way of further example, one of the frequently voiced complaints of advertising critics is that advertising is not informative enough. Now, if we wish to point to some specific advertisements, it would not be difficult to accept such a premise. An advertisement for an expensive car may tell us that the car offers greater “class” than its competitors but nothing of its performance or life expectancy. Or a message for a cereal may feature a talking tiger, telling us of his adventures, but little of nutrition.

But there is other grist for this mill as well. A classified ad for a refrigerator may tell us its make, age, capacity, operating efficiency, and the reasons the seller has put it on the market. A message on drill bits for all rigs inundates its readers with performance data concerning the cost efficiencies to be accrued through the use of this bit compared with those of traditional composition. Do these ads also lack information?

To understand advertising then, you must first develop some knowledge of its more prominent functions. One way of getting a realistic picture of the landscape of advertising is to ask a simple question: Who uses advertising to reach what audiences through what media for what purpose? The pursuit of the answer not, of course, reveals all the nuances of advertising. It may, however, after a reasonable of some of the major species and subspecies and—not incidentally—serve to discourage embracing, “Advertising does …” thinking.

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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