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.

Marketing Eras


  • Production Era:  Prior to 1925, most firms operating in highly developed economies focused narrowly on production. Manufacturers stressed production of quality products and then looked for people to purchase them.  The production era did not reach its peak until the early part of 20th century.
  • Sales Era: Manufacturers began to increase their emphasis on effective sales forces to find customers for their output. Firms attempted to match their output to the potential number of customers who would want it. Companies with a sales orientation assume that customers will resist purchasing products and services not deemed essential and that the task of personal selling and advertising is to convince them to buy. Although marketing departments began to emerge from shadows of production, finance, and engineering during the sales era, marketing dominated sales and other areas. Selling is thus a component of marketing.
  • Marketing: Personal incomes and consumer demand for products and services dropped rapidly thrusting marketing into a more important role. Organizational survival dictated that managers pay close attention to the markets for their goods and services. The trend ended with the outbreak of World War 11, when rationing and shortages of consumer goods became commonplace. The war years created only a pause in an emerging trend in business: a shift in the focus from products and sales to satisfying customer needs.
  • Relationship: It emerged during the 90s. Organizations carried the marketing era’s customer orientation one step further by focusing on establishing and maintaining relationships. This effort represented a major shift from the traditional concept of marketing as a simple exchange between buyer and seller. Relationship marketing by contrast, involves long-term, value-added relationships developed over time, strategic alliances and partnerships retailers play major roles in relationship marketing.

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.

Sun Tzu’s Advice to Strategy Makers


More than 2300 years ago, Sun Tzu wrote The Art of War, an amazing book on the principles of military strategy. Herebelow are some idea extracts:

  1. Adopt SOSTAC. He believed that it is essential first to carry out a complete analysis of the situation. The strengths and weaknesses of one’s position, the relationship between one’s goals and the goals of society at large, the intensity of one’s courage and determination, and the worthiness and integrity of one’s objective must all be carefully evaluated. Even then, it seems, SOSTAC (Situation Analysis, Objectives, Strategy, Tactics, Action, and Control) was emerging—situation analysis, objectives and strategy.
  2. Do your Homework. Those who triumph, compute at their headquarters, a great number of factors, prior to a challenge. Those who are defeated, compute at their headquarters, a small number of factors, prior to a challenge. Much computation brings triumph, little computation brings defeat. How much more so with no computation at all. By observing only this, I can see triumph or defeat.
  3. Develop some options. Therefore those who are not entirely aware of strategies that are disadvantageous, cannot be entirely aware of strategies that are advantageous.
  4. Know your Resources. You must be certain that your resources have been carefully evaluated before engaging in this challenge.
  5. Why senior management Support: before engaging in a challenge, a leader must be certain that the organization is prepared to support the expense of a confrontation.
  6. Do you hurt your market or environment? Brilliant leaders are always aware of the entire system, both inside and outside of their organizations. They know that to harm or destroy what is outside will hurt their own growth, while employing their rivals and incorporating their resources will enhance their strategy.
  7. Put everything in place before making a move. Sun Tzu believed that a true victory can be won only with a strategy of tactical positioning, so that the moment of triumph is effortless and destructive conflict is avoided even before considering a confrontation – for whatever purpose.

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.

Silence as Acceptance


As a generalization, the offerer can never consider silence by the offeree as an acceptance. In some cases the offerer attempts to bring about a situation of this kind by a statement in the offer to the effect that failure to reply will be construed as acceptance of the offeror’s proposal. Usually, the offeree is under no obligation to reply to any business proposal. However, if the offeree requested that goods be shipped on approval, or there is a prior business arrangement or understanding between the parties, silence may be fairly construed as acceptance. These cases are exceptional, however.

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.

Baselining


One of the most distinctive and helpful features of single system research involves collecting information on the client’s problem/situation before intervention actually begins. This is called baselining. The period of time over which this information is collected is called the baseline. The information or data that you collect is called the baserate, which involves systematic collection of data on the client’s problem prior to the implementation of your intervention program. The data that you collect during baseline continue to be collected throughout your intervention program. They provide an important basis for evaluating your effectiveness, since the baseline is almost always the first phase of your design.

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 Adoption Process


The adoption process consists of the mental stages an individual goes through in accepting and becoming a repeat purchaser of an innovation. Marketing communicators play a role in accelerating the rate of new product adoption and thereby increasing the probability of product success. As firms have become more sophisticated marketers, the rate of adoption in consumer markets has increased.

Although consumers are accepting new products more readily than ever, there is still a high percentage of failure in the introduction of new products. Understanding the factors that facilitate or impede successful adoption is crucial to a full appreciation of the role of marketing communications and promotion management in modern marketing.

The adoption process consists of five stages: 1) knowledge, 2) persuasion, 3) decision, 4) implementation, and 5) confirmation. Each stage is necessary precondition to a subsequent stage. Various conditions and characteristics act to increase or retard the innovation-decision process. Among the broad groups of variables that influence the various stages are prior conditions (e.g., the consumer’s previous consumption practices), characteristics of the decision-making unit (e.g., socio-economic characteristics), and perceived characteristics of the innovation (e.g., relative advantages).

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.

 

Contractual Relationship


A contractual relationship exists when employers and employees have a legal agreement regarding how employee issues are handled. Under such contractual arrangements, discharge may occur only if it is based on just cause. Inasmuch as a distinct definition of just cause does not exist, they are guidelines derived from labor arbitration of collective bargaining relationships under which just cause can be shown as follows:

  • Was there adequate warning of consequences of the worker’s behavior?
  • Are the rules reasonable and related to safe and efficient operations of the business?
  • Before discipline was rendered, did a fair investigation of the violation occur?
  • Did the investigation yield definite proof of worker activity and wrong doing?
  • Have similar occurrences, both prior and subsequent to this event, been handled in the same way and without discrimination?
  • Was the penalty in line with the seriousness of the offense and in reason with the worker’s past employment record?

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.

Do’s and Don’t’s in Brainstorming


Do’s

  • Have warming up session prior to brainstorming in order to create a free environment.
  • Allow people to make noise, shout, laugh, etc.
  • Write ideas on a board or sheet so that everyone can see it.
  • Encourage/appreciate all ideas.
  • Allow wild and silly ideas
  • Give them time to think.
  • Number all ideas sequentially.
  • Transmit ideas to get more ideas from it.
  • Try to have as many youngsters as possible.
  • Do end on the wildest idea.

Don’t’s

  • Don’t allow non-members/non-participants.
  • Don’t allow interruptions in any form.
  • Don’t drag the session when ideas don’t come.
  • Don’t spend too much of time for initial briefing.
  • Don’t remove/wipe the ideas written on the board.

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.

Facing the Harsh Facts


Many companies that have lost profits or market share have managers who are still waiting patiently for their business to “get back to normal.” Others are looking for government help for their declining market and profit positions. Neither of these approaches is a viable situation. What is needed is less wishful thinking and rhetoric and greater willingness to squarely face the true facts about their markets and competitive positions. The demand changes that have occurred in many markets are structural, not cyclical, and it is unrealistic to expect any kind of a dramatic recovery or turnaround that will restore demand to former levels.

It is extremely difficult for managers who have built their entire careers around specific products and technology to accept the fact that their former business base has now leveled out from prior peaks, or worse yet, become obsolete or irretrievably lost to new competitors or technology. Obviously, many old-line steel managers could not imagine today’s world of aluminum cans, plastic auto parts and bodies, or Japanese, Korean, and small regional producers who constantly “beat their pants off.” Nor could managers in the high flying semiconductor business foresee the situation where their markets have not only ceased to gallop ahead, but decline dramatically, and where foreign sources, including Brazil, Korea, and Taiwan, have captured the bulk of the remaining business. Unfortunately, these are the facts, and an equally discouraging set of forces applies in many other markets.

It is understandable that managers who have grown up and lived through the growth years in any of these industries find today’s conditions difficult to accept. But they must change their myopic or unrealistic views of their business so they can tackle the hard work required to regain a profitable competitive footing. Otherwise, their situations will not improve and will most likely deteriorate further.

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

Forward Contracts


Forward contracts are similar to futures contracts in that they are agreements to buy and sell an asset at a certain time in the future for a certain price. However, unlike futures contracts, they are not traded on an exchange. They are private agreements between two financial institutions or between a financial institution and one of its corporate clients.

 One of the parties to a forward contract assumes a long position and agrees to buy assets at a certain specified date for a certain price. The other party assumes a short position and agrees to sell the asset on the same date for the same price. Forward contracts do not have to conform to the standards of a particular exchange. The delivery date in the contract can be any date mutually convenient to the two parties. Usually, in forward contracts, a single delivery date is specified, whereas in futures contract, there is a range of possible delivery dates.

 Forward contracts are not marked to market daily like futures contracts. The two parties contract to settle up on the specified delivery date. Whereas most futures contracts are closed out prior to delivery, most forward contracts do lead to delivery of the physical asset or to final settlement in cash

 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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