Management Responses to Inflation


Businesspeople must deal with the rising price spiral. Higher costs must be absorbed or passed on to the consumer in the form of higher prices. Management needs to adopt innovative responses to the problems of inflation and tight budgets. Inflation does not have a negative impact on all firms. Consumers are adapting to inflation, and businesses must make similar adaptations to remain in operation.

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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Context for Reinventing the Corporation


  1. The shift in strategic resource from an individual to an information society;
  2. The coming seller’s market and the new competition for the best employees;
  3. The whittling away of middle management;
  4. The continuing entrepreneurial revolution;
  5. The emergence of the new variegated work force;
  6. The demographic revolution of working women;
  7. The growing use of intuition and vision;
  8. The mismatch between our education system and the needs of the new information society;
  9. The rising importance of corporate health issues.

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.

Organizational Paralysis


Within 6 months of life some organizations suffer a paralysis:

  1. Point zero minus six months: growing anticipation of the new organization is rife; most senior managers are preoccupied with networking amongst the organization’s rising stars in order to be well positioned for advancement.
  2. Point zero minus three months: the new organization is due shortly, so no one will do anything in case it is seen to be wrong in light of the new structure.
  3. Point zero minus one month: all senior managers desperately plead for a new job so the sin of the last year’s time wasting can be hoofed off onto another poor unsuspecting victim.
  4. Point zero: the planned reorganization is put back two months to accommodate the wishes of an intransigent director who keeps digging in his heels and refuses to listen.
  5. Point zero plus six months: senior mangers look forward to extremely generous takeover conditions and contemplating retirement

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.

 

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