Strategic Decision


Unlike many other decisions, strategic decision deals with the long-run future of the entire organization and has three characteristics:

  1.  Rare: Strategic decision is unusual and typically have no precedent to follow;
  2. Consequential: Strategic decision commits substantial resources and demands a great deal of commitment from people at all levels.
  3. Directive: Strategic decision sets precedents for lesser decisions and future actions throughout 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.

Act!


People of accomplishment rarely sat back and let things happen to them. They went out and happened to things.

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.

Financing Alternatives


By the time your company reaches its first stage of development, it has probably consumed most, if not all, of its original seed capital. Although business may be looking up, sales are not generating enough free cash to buy the inventory needed for further growth. And, of course, the amount of cash you have taken out of the business for personal living expenses has probably been negligible.

Except in very rare circumstances, a new business needs about three years of steady growth before it generates free cash in sufficient amounts to survive. Working capital to keep the business growing must come from outside the company. Financing must be obtained from banks, other leading institutions, or investors, or the company will stagnate and quickly die.

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 Vicious Circle


Revenge tends to metastatize inside a company, organization, or family. Stepping on someone else rarely if ever occurs in a vacuum: it’s just one part of a potentially endless cycle. Even indirect retaliation leads to a vicious spiral. Repressed revenge can spread just as far and have even longer-lasting impact.

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.

Pricing


Whether or not it is so recognized, pricing is one of the most crucial decision functions of a marketing manager. Pricing is an art, a game played for high stakes; for marketing strategists, it is the moment of truth. All of marketing comes to focus in the pricing decision. To a large extent, pricing decisions determine the types of customers and competitors an organization will attract. Likewise, a single pricing error can effectively nullify all other marketing-mix activities. Despite its importance, price rarely serves as the focus of marketing strategy, in part because it is the easiest marketing-mix activity for the competition to imitate.

It can be easily demonstrated that price is a direct determinant of profit (or loss). This fact is apparent from the fundamental relationship.

Profit = total revenue – total cost

Revenue is a direct result of unit price times quantity sold, and costs are indirectly influenced by quantity sold, which in turn is partially dependent on unit price. Hence, price simultaneously influences both revenues and costs.

Despite its importance, pricing remains on of the least understood marketing-mix activities.

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 Enrichment and Redesign


Although the extreme division of labor was successful with the uneducated workers of 20th century, it doesn’t make as much sense today. For one thing, highly specialized jobs rarely satisfy today’s better-educated and more sophisticated workers, many of whom know more about the technical aspects of their work than their supervisors do. Moreover, machines have taken over some of the specialized tasks previously performed by workers. Faced with these changes, many companies are attempting to boost productivity by reorganizing the way jobs are done. One type of job reorganization is job enrichment—giving workers a more vivid sense of where they fit into the organization by making their jobs less specialized and giving them more meaningful work to do.

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.

Training and Community Colleges


The power of images and names deceives us into picturing big companies as big concentrations of people. They rarely are. Most of the work of any major organization goes on at a multiplicity of small to medium-sized shops, offices, or factories, often widely separated from one another as well as from the head office. Each work site may be no longer than an independent small or medium-sized enterprise in its neighborhood.

Since the operations performed at one work site may bear little resemblance to those at another in the same company, work sites may differ in their training needs as widely as they differ in geography. Accordingly, each work site normally administers most of its own training, with the exception of specifically managerial subjects or skills so company-specific, important, and widely needed that it is more cost effective to conduct them at a central location.

By the same token, each work site has finite resources of staff, space, equipment, and money available for training. One point it must therefore decide about any particular need is whether it is more cost-effective to conduct the training in-house or outside. More and more work sites have turned to community and junior colleges to run training programs for them. So community colleges have evolved various arrangements for working with employers. They have thus employed business-industry coordinators, who learn what services the employers need tell them what the colleges can do to help. Some colleges hire and train industry people to execute the colleges’ training assignments.

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.

Principles of Crisis Management


What does one do when a crisis comes? There are some principles, not rules that can be useful to managers facing a crisis:

Define the real problem: Crises tend to face managers to think short term and focus on the narrow problem at hand. The crisis management team should ask several reflective questions: What would constitute a good job in managing this crisis? What can we accomplish? What is impossible?

Set Goals and Define the Crisis Strategy in Light of Those Goals: The urge to act first, think later is hand to resist when facing a crisis. The better the course is to have some managers actively thinking about the goals—What do we want to accomplish? How do we want to be perceived by the media? By our shareholders? By our employees and customers?

Manage the flow of Information: Experts advise managers to tell the story their way, consistently, and frequently. Because electronic media repeat crisis stories quite frequently in a typical news day, managers have an opportunity to correct errors and should not permit an erroneous statement to stand unchallenged.

Adopt a Team Approach: It is important to have one spokesperson designated at the outset and available to act on the company’s behalf immediately. Successful companies have thought in advance about the skills each crisis team should possess. Legal, media, and government relations skills are essential in many crisis situations.

Plan for the worst case: A crisis always has the potential to worsen, and managers need to anticipate the worst case possibility. It is tempting to assume a crisis will pass and the world will return to normal. It is wise to prepare for the worst.

Plan on the Situation Getting Worse: By doing so, an organization can begin to see ahead and create contingency plans for communicating with key stakeholders, deploying resources, and organizing other companies and people for action.

Follow up after the Crisis is Over: Many contacts with stakeholders occur during a crisis. A company can restore its image and reputation by dedicated follow-up to stakeholders.

Use Technology: Information technology can be a powerful aid to a company facing a crisis and needing to communicate with stakeholders. A company should measure the effectiveness of communication message through polling, surveys, and focus-group interviews.

Don’t Give up: As bad as it can be for an organization, a crisis rarely destroys a well-managed business. Leadership is vital if an organization’s internal and external stakeholders are to believe that there is a bright future beyond the crisis.

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.

Organizing


Rarely are individuals in an organization able to achieve common goals without some form of structure. Organizing is the structuring of resources and activities to accomplish objectives in an efficient and effective manner. Managers organize by reviewing plans and determining what activities are necessary to implement them; then, they divide the work into small units and assign it to specific individuals, groups, or departments. As companies reorganize for greater efficiency, more often than not, they are organizing work into teams to handle core processes such as new product development instead of organizing around traditional departments such as marketing and production.

Organizing is important for several reasons. It helps create synergy, whereby the effect of a whole system equals more than that of its parts. It also establishes lines of authority, improves communication, helps avoid the duplication of resources, and can improve competitiveness by speeding up decision making.

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.

Failure in International Business


Failure overseas rarely results from technical or professional incompetence. Multinationals take their international business seriously and typically send abroad high achievers who have proven skills and expertise. But their success is usually in their home countries, where their skills, style and attitude may be exactly the opposite of what will work overseas. Employees’ ignorance of or inability to adjust to foreign ways are usually what cause problems.

In one country people know in vivid details the colors, designs and sounds that appeal to various customer groups. Careerists climbing the corporate ladder study intently the values and norms that characterize their company’s “culture” so that they can maneuver successfully toward the top. Negotiators approach their bargaining table with a rich understanding of what motivates their adversaries. When it comes to foreigners, however, people see only silhouettes. Overseas many foreign companies approach their customers, colleagues, and employees with an ignorance that would be unthinkable on home ground. They are willing to transact business with foreigners without understanding who they are, what makes them tick, how they view the world and how their corporations. Because they do not look behind the foreign mask, their approach to international business is often like shadow-boxing. They deal with imaginary targets.

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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