Equality, Inequality


Some people don’t think of you as an equal. Before they can accord you with the honor of being treated as an equal, they feel you need to prove yourself. You’ve run into these people before – you can probably spot them right away. And, try as you might, you probably have a difficult time respecting them, because you know that, deep down, they don’t respect you.

By nature, we are organizers, and sometimes we fall into the trap of organizing people. One of the most persistent downfalls of human society has been the urge to rank people according to worth. Even today, many cultures that now enjoy political freedom are still tarnished with the vestiges of a class system – a declaration that people are inherently unequal.

On a social level, this tendency is nothing more than a reflection of how we often behave in our personal lives. For whatever reason, we conclude that some type of people is better than others, and we make decisions based on this conclusion. If you think about it, all complaints of discrimination are essentially protests against decisions based on the notion of inherent inequality.

Another brand of inequality that has plagued history is the inequality of opportunity. Some people have a head start over others. Some people have more opportunities open to them than others do. It’s easy to say that ‘achievers create their own opportunities,’ but the fact is, life isn’t fair. Some people do have an advantage when it comes to opportunity. in life, there are few level playing fields, and there is very little any of us can do to change this.

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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Benefits of Using Teams


Teams are coherent groups of people with complementary skills who work together towards a specified goal. Teams are often the most efficient way of working, and their benefits include:

  1. The members achieving more by working together than they would by working separately or in large, unstructured groups;
  2. Improved motivation and effort;
  3. Flexibility to deal more effectively with change;
  4. More imaginative solutions to new problems; fewer mistakes, as faults are spotted by other members;
  5. Fair division of work, resources and rewards.

Nelson Mandela asked, ‘How can one individual solve the problems of the world? Problems can only be solved if one is part of a team.’ Notice that there is a difference between a team and a group of people who are simply working together. A team is a cohesive set of people who are motivated to achieve common goals. Simply collecting different people does not give a team, as they don’t trust each other, bring along internal politics, don’t share common goals and so on. Twenty people in a room don’t make a team. Team doesn’t just happen. They have to be developed, facilitated and motivated.

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.

 

Sole Proprietorships


Sole proprietorships, businesses owned and operated by one individual, are the most common form of business organization. Sole proprietorships are generally managed by their owners. Because of this simple management structure, the owner/manager can make decisions quickly. This is just one of many advantages of the sole proprietorship form of business.

Ease and Cost of Formation: Forming a sole proprietorship in relatively easy and inexpensive. In some countries, creating a sole proprietorship involves merely announcing the new business in the local newspaper. Other proprietorships, such as barber shops and restaurants, may require state and local licenses and permits because of the nature of the business. No lawyer is needed to create such enterprises, and the owner can usually take care of the required paperwork.

An entrepreneur starting a new sole proprietorship must find a suitable site from which to operate the business. Some sole proprietors look no farther than their garage or a spare bedroom that they can convert into a workshop or office. Computers, personal copiers, fax machines, and other high-tech gadgets have been a boon for home-based businesses, permitting them to interact quickly with customers, suppliers, and others. Many independent salespersons and contractors can perform their work using a notebook computer as they travel. E-mail and cell phones have made it possible for many proprietorships to develop in the service area.

Secrecy: Sole proprietorships make possible the greatest degree of secrecy. The proprietor, unlike the owners of a partnership or corporation, does not have to discuss publicly his or her operating plans, minimizing the possibility that competitors can obtain trade secrets. Financial reports need not be disclosed.

Distribution and Use of Profits: All profits from a sole proprietorship belong exclusively to the owner. He or she does not have to share them with any partners or stockholders. The owner decides how to use the profits.

Flexibility and Control of the Business: The sole proprietor has complete control over the business and can make decisions on the spot without anyone else’s approval. This control allows the owner to respond quickly or competitive business conditions or to changes in the economy.

Government Regulation: Sole proprietorships have the most freedom from government regulation. Most government regulations apply only to businesses that a certain number of employees, and securities laws apply only to corporations that issue stock. Nonetheless, sole proprietors must ensure that they follow all laws that do apply to their business.

Taxation: Profits from the business are considered personal income to the sole proprietor and are taxed at individual tax rates. The owner pays one income tax.

Closing the Business: A sole proprietorship can be dissolved easily. No approval of co-owners or partners is necessary. The only legal condition is that all loans must be paid off.

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.

Managerial Accounting


Managerial accounting refers to the internal use of accounting statements by managers in planning and directing the organization’s activities. Perhaps management’s greatest single concern is cash flow, the movement of money through an organization over a daily, weekly, monthly, or yearly basis. Obviously, for any business to succeed, it needs to generate enough cash to pay its bills as they fall due. However, it is not at all unusual for highly successful and rapidly growing companies to struggle to make payments to employees, suppliers, and lenders because of an adequate cash flow. One common reason for a so-called “cash crunch” or short fall is poor managerial planning.

Managerial accounting is the backbone of an organization’s budget, an internal financial plan that forecasts expenses and income over a set period of time. It is not unusual for an organization to prepare separate daily, weekly, monthly, and yearly budgets. Think of a budget as a financial map, showing how the company expects to move from Point A to Point B over a specific period of time. While most companies prepare master budgets for the entire firm, many also prepare budgets for smaller segments of the organization such as divisions, departments, product lines, or projects. “Top-down” master budgets begin at the top and filter down to the individual department level, while “bottom-up” budgets start at the departments or project level and are combined at the chief executive’s office. Generally, the larger and more rapidly growing an organization, the greater will be the likelihood that it will build its master budget from the ground up.

Regardless of focus, the major value of a budget lies in its breakdown of cash inflows and outflows. Expected operating expenses (cash outflows such as wages, materials costs, and taxes) and operating revenues (cash inflows in the form of payments from customers and stock sales) over a set period of time are carefully forecast and subsequently compared with actual results. Deviations between the two serve as a “trip wire” or “feedback loop” to launch more detailed financial analysis in an effort to pinpoint trouble spots and opportunities.

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.

Selecting your Foreign Agent


  1. Your agent should be a national of the country where you aim to do business and should have experience in your industry or product line.
  2. The agent should not be involved with a competing company or product, but could be representing a complimentary line.
  3. Do your own checking of references. Have your banker check your agent’s bank references.
  4. Where credit is an issue, get a credit report from a local credit agency.
  5. Check at least five or six of the agent’s references: clients, customers or other business contacts relevant to your business.
  6. Visit your prospective agent in the foreign country and ask to come along on customer calls. Watch carefully how clients, secretaries, and purchasing agents respond to the agent.
  7. Since the personal relationship is so important in business abroad, the contact person must be someone who can negotiate for your company and who has authority to sign a contract on the spot.
  8. Make sure responsibilities are clear. The agent is typically responsible for promoting your interests and products, but it is no standard procedure as to who pays for what. For example, the agent can design local advertising campaign and pay for it, or bill you, or, conversely, you must provide advertising.
  9. If possible, make the written contract with your agent short-term and nonexclusive so that you have a safety valve. However, it is essential for you to treat it as an exclusive arrangement and to establish a strong mutual long-term commitment. Many agents will not consider a contract that is not exclusive or that does not continue for several years.
  10. Consult a local attorney before making any commitment to a national. It is difficult to get out of an agent agreement, so terms of termination and other “outs” should be established in the beginning. Agency laws in foreign countries are changing rapidly and legal problems arising from small mistakes can put you out of the market permanently

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.

Flexibility


Perhaps the biggest difference between an individual businessperson and a large corporation is in the degree of flexibility each possesses. Here the balance tips in favor of the small business. Because it hasn’t indoctrinated numerous level of management and a gigantic sales organization in the tactics and strategies of its marketing plan, it can make changes on the spot. It can be fast on its feet and can react to make changes, competitive ploys, economic realities, new media, newsworthy events, and last minute offers.

Like the furry quick mammal, you’ve got the flexibility, the speed, the disregard of image, that enables you to use radio commercials and also hire high school students to hand out printed circulars on street corners. You don’t have a body of rules to follow, a committee to answer to, a set structure to follow. You are the organization. You answer to yourself. You make the rules and you break the rules. And that means you get to be amazing, outrageous, surprising, unpredictable, brilliant, and quick.

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.

Distinctive Capabilities


A close examination of a market-driven firm will reveal two particularly important capabilities: market sensing and customer linking. First, the market-sensing capability concerns how well the organization is equipped to continuously sense changes in its markets and to anticipate customer responses to marketing programs. Market-driven firms spot market changes and react well in advance of their compititors. Second, the customer-linking capability comprises the particular skills, abilities, and processes that an organization has developed to create and manage close customer relationships.

Customer-goods firms demonstrate these capabilities in working with powerful retailers, multifunctional teams in both organizations work together by sharing delivery and product movement information and by jointly planning promotional activity and product changing. While evident in manufacturer-reseller relations in the consumer-goods market, strong customer-linking capabilities are crucial in the business market where close buyer-seller relationships prevail.

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

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