Tangible and Intangible Property


Tangible property has a physical existence; land, buildings, and furniture are examples. Property that has no physical existence is called intangible property; patent rights, easements, and bonds are intangible property. The distinction between tangible and intangible property is important primarily for tax and estate planning purposes. Generally, tangible property is subject to tax in the state/province in which it is located, whereas intangible property is usually taxable in the state where its owner lives.

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.

Organization Structure and Innovations


Organizational structure fulfils many functions—everyone in the organization knows who he or she reports to; how various repetitive/routine activities are to be discharged; who has what authority and responsibility; how personnel are grouped together (e.g., by departments or divisions); which individuals/groups have decision-making authority and which have primarily advisory functions (line versus staff functions); and what mechanisms are deployed primarily for reducing decision-making uncertainty, for ensuring differentiated or specialized responses to the operating environment, and for coordinating and integrating these differentiated or specialized responses. A well-designed structure that is compatible with strategy or is internally coherent and compatible with the organization’s operating environment tends to contribute to superior organizational performance.

Can organizational structure facilitate innovations? Possibly. Relatively flat managerial hierarchy and extensive decentralization or delegation of authority, including extensive use of profit centers and SBUs.

Certain kinds of structural changes, notably creating many self-contained, substantially autonomous units with stretch targets, extensive delegation of authority to lower level decision-makers, and delayering (removal of some of the managerial levels to reduce the number of approving authorities for innovation)  may increase the potential innovations of the organization.

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.

Corporate Disclosures


Giving stockholders more and better company information is one of the best ways to safeguard their interests. The theory behind the move for greater disclosure of company information is that a stockholder, as an investor, should be as fully informed as possible to make sound investments. By law, stockholders have a right to know about the affairs of the corporation in which they hold ownership shares. Those who attend annual meetings learn about past performance and future goals through speeches made by corporate officers and documents such as the company’s annual report. Those who do not attend meetings must depend primarily on annual reports issued by the company and the opinions of independent financial analysts.

Historically, management has tended to provide stockholders with minimum information. But companies now disclose more about their affairs, in spite of the complicated nature of some information. Stockholders therefore can learn about sales and earnings, assets, capital expenditures and depreciation by line of business, and details of foreign operations.

Corporations also are required to disclose detailed information about directors, how they are chosen, their compensation, conflicts of interest, and their reasons for resigning in policy disputes with management.

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.

 

Need Theories of Motivation


Need theories represent the starting point for most contemporary thought on motivation, although these theories too attracted critics. The basic premise of need theories is that human motivation is caused primarily by deficiencies in one or more important needs or need categories. Need theorists have attempted to identify and categorize the most salient needs, that is, those that are most important to people. The best known need theories are Maslow’s hierarchy of needs, Murray’s manifest needs, and Alderfer’s ERG theory.

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.

 

Just About Money


Strictly defined, money is anything generally accepted in exchange for goods and services. To be used as a medium of exchange, money must be acceptable, divisible, portable, stable in value, durable, and difficult to counterfeit.

Acceptability: To be effective, money must be readily acceptable for the purchase of goods and services and for the settlement of debts. Acceptability is probably the most important characteristic of money: If people do not trust the value of money, businesses will not accept it as a payment for goods and services, and consumers will have to find some other means of paying for their purchases.

Divisibility: Given the widespread use of quarters, dimes, nickels, and pennies in the United States, it is no surprise that the principle of divisibility is an important one. With barter, the lack of divisibility often makes otherwise preferable trades impossible, as would be an attempt to trade a steer for a loaf of bread. For money to serve effectively as a measure of value, all items must be valued in terms of comparable units—dimes, for a piece of bubble gum, quarters for laundry machines, and dollars (or dollars and coins) for everything else.

Portability: Clearly, for money to function as a medium of exchange, it must be easily moved from one location to the next. Large colored rocks could be used as money, but you couldn’t carry them around in your wallet. Paper currency and metal coins, on the other hand, are capable of transferring vast purchasing power into small, easily carried bundles.

Stability: Money must be stable and maintain its declared face value. The principle of stability allows people who wish to postpone purchases and save their money to do so without fear that it will decline in value. Money declines its value during periods of inflation, when economic conditions cause prices to rise. Thus, the same amount of money buys fewer and fewer goods and services.

Durability: Money must be durable. The crisp new dollar bills you trade at the music store for the hottest new CD will make their way all around town for about 18 months before being replaced. Were the value of an old, faded bill to fall to line with the deterioration of its appearance, the principles of stability and universal acceptability would fail. Although metal coins, due to their much longer useful life, would appear to be an ideal form of money, paper currency is far more portable than metal because of its light weight. Today, coins are used primarily to provide divisibility.

Difficulty to Counterfeit: To remain stable and enjoy universal acceptance, it almost goes without saying that money must be very difficult to counterfeit—that is, to duplicate illegally. Every country takes steps to make counterfeiting difficult. Most use multicolored money, and many use specially watermarked papers that are virtually impossible to duplicate.

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.

Primary Research Data


Primary data consists of data that is obtained directly from the source. It is generally captured through surveys, interviews, focus groups, or other direct interactions with individuals. The use of primary data has increased dramatically over the past few years, and with the advent of bar code scanners, home shopping, interactive television, and other electronic media, the number of channels through which primary data can be collected will increase exponentially.

Primary data consists of two major types:

  • Individual level demographic data such as age, income, and home value.
  • Attitudinal and behavioral data.

In the past, primary data was often the province of market research, and was used primarily to provide direction for marketing programs that addressed large groups of customers and prospects. Demographic data was used to get a better “fix” on the characteristics of the larger market, and attitudinal data was used to provide a sense of which issues were important to various groups of customers, and therefore should be emphasized in promotional materials.

Market researchers use primarily data to identify new product opportunities or new segments within the customer file. This is usually done by sending surveys to a representative sample of customers or prospects to determine what products and services they are interested in but do not currently purchase from the firm sending the questionnaire. In this way, primary data gathered through market research surveys can lead to the development of products that are either new to the firm or, in some cases, new to the industry.

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.

Law in Business


A person who is involved in business is also involved in the law concerning business. Making contracts and using negotiable instruments—both of which are legal concepts—are the essence of business. Business and law were closely associated even when there were few lawyers and business managers spent relatively little time with them. The growing importance of law in business, however, is shown by the rapid increase in the use of lawyers by people in business. In recent years, the number of corporate counsel, the full-time lawyers who are employed by corporations; has been growing faster than the number in any other category of attorneys. Law firms that serve primarily business people have also been expanding at a great rate. Even the smallest businesses turn to lawyers frequently.

In the past quarter century there has been a qualitative as well as a quantitative change in the concern of business managers with law. In earlier times, business managers generally employed lawyers only in emergencies. A lawyer might be engaged if a summons to appear in court was received, if a businessperson could not collect a debt that was due, or if a supplier’s goods were defective and no settlement could be reached. Lawyers are still sought out when such things happen today. However, more and more, business managers employ lawyers to help them plan to avoid such emergencies and comply with a rapidly growing mass of legal rules imposed on business operations by government bodies. This use of lawyers by business people is called preventive law.

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.

Customer Value Checklist


  1. Who is your customer?
  2. How does your customer experience value?
  3. What is unique about your value proposition?
  4. Are you competing primarily on price or value?
  5. Do you design products and services that deliver the desired value?
  6. Do you design effective sales and service channels?
  7. Do you recruit and equip employees to deliver and increase customer value?
  8. What are you willing to do to deliver better value?
  9. How have you added value to customers of late?

10.  Do you refine and measure the value proposition to ensure customer loyalty and retention?

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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