Stakeholder Involvement


If we are to develop a new product that meets the goals for it (sales, profits, whatever), it must be acceptable to the end user. Therefore, a new product process should have end-user involvement. But, the buying/using decision is often a complex one, where advisors, resellers (and even vendors) play roles, and hence they are stakeholders. And, because it rather defeats the purpose of working for a year or so and eventually they don’t like it, the stakeholders should be involved from the very beginning, and often. And not just surveyed once or twice, involvement of stakeholders must be continuous.

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, Lectures, Line of Sight

Product Life Cycle


Once the market has emerged and a firm has decided to enter, it must still contend with uncertinities in the products in the market. The marketing literature offers a parallel to the technology life cycle: the product life cycle. A product has four predictable stages with distinctive characteristics, marketing objectives, and strategies. The introduction stage starts when the new product is launched. Sales are low, costs per customer are high, profits are negative, customers are largely lead users, and competitors are few. In the growth stage, sales rise rapidly, costs per customer start to drop, profits start rising, and the number of customers also increases. In the maturity stage, sales peak, costs per customer are low, profits are high, and the number of competitors is stable. In the decline stage, sales start to decline, costs per customer increase, profits arte declining, and the number of compititors is also declining. These characteristics call for specific strategies. For example, in the introduction stage, a firm’s objective is to create product awareness, and product strategy is to offer a basic product. The demand in each market is fulfilled by a seriies of different generations of products, with the first one introduced at the emergence of the market.

 

The main drawback in using the product life cycle to reduce uncertainty is that number of stages and duration of each vary from product to product. It is also difficult to tell when a stage starts and ends. In any case, they provide some regularities to help a firm know when and what to invest in an innovation.

 

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

Company Performance Appraisal


Company performance appraisal studies the trends of specific profitability and productivity ratios derived from financial statements for at least past three  periods (year, quarter, month). Its main purpose is to diagnose problem areas through establishing productivity indicators for continuous monitoring and control of the whole enterprise, in order to set up an appropriate productivity improvement programs.

 

In conducting company performance appraisal, two basic comparisons have to be made:

a.       Between current performance and a historical base performance;

b.       Between actual performance and the target.

 

The former indicates whether performance is improving or declining and at what rate. The latter requires that performance or productivity targets be set and matched against actual performance.

 

Using profitability along as the basis for evaluating the overall performance of an organization makes it difficult to identify the cause of profitability changes. Are they due to productivity or price-cost movement? The following demonstrates this relationship:

 

            Output value     =          Quantity sold     X          Unit price

 

 

             Profitability       =          Productivity       X          Price recovery

 

 

             Input value        =          Quantity used    X          Unit cost

 

Considering the relationships over time, profitability is defined as charge in output value compared with change in input value; productivity as the change between quantity of output and/or quantity in unit price, and change in unit cost.

 

In effect, what is computed are performance ratios classified into:

  • Change in profitability;
  • Change in productivity;
  • Change in price recovery.

 These performance ratios are then evaluated in relation to their effect on profits. In general, a drop in profitability, in productivity or in price recovery reduces profits. Lower productivity signals a need for further analysis and for correction action. However, increased productivity does not necessarily lead to profitability on a short-term basis. The effect of increased productivity will be realized only in terms of long-term profitability.

 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

Services Marketing


Services have moved to the forefront of business landscape. those who were once considered as big manufacturers are shifting their focus to services. The economic growth in services, their profit and competitive advantage potential, and the overall decline in customer satisfaction with servives, the potential and opportunities for companies who can excel in services marketing, management, and delivery are great. To face the challenges of modern day competition, your company needs transformation and necessary planning. My Consultancy–Asif J. Mir – Management Consultant–transforms organizations, makes them relevant, and suggests solutions for succes. For details please contact Asif J. Mir