Retailing & Strategic Decisions


The strategic part determines the type of business that the retailer would be in. this is governed by two considerations—financial and familiarity considerations and image related consideration:

  1. Financial and familiarity considerations: A most of the outlets are proprietary in nature, the type of business that retailer would like to undertake would be governed by the investment capacity of the person and his familiarity with the product line.
  2. Image related considerations: Retailing is just not a way of business, it is a way of expressing oneself in the society. The shop depending on where it is located and the type of products and brands it deals in, will contribute to the social standing of the shop owner.

As these decisions are taken before taking up dealership with a company, the strategic considerations are not studied. From a marketer’s point of view the managerial considerations become important as they determine (a) whether the retailer would stock and sell their brands, and (b) the effort the retailer would put in to sell the brand.

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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Selection of Dealers


  • The company does not advertise for new dealers. Whenever the need to appoint a new dealer for an area is felt the word is spread around. This is being used as the type of dealer who sell pumps and motors are mostly concentrated in a locality in every town or city
  • The interested dealers are asked to present before the branch manager and the group marketing manager as to how they would be able to serve the company
  • The selection is then done on the basis of following criteria:
  1. Financial Strength: The capability of the dealer to be able to hold sufficient stock as per the potential of the area, both in the present and in the future, and whether he will be able to pay the companies dues in time.
  2. Manpower: the strength of the workforce for handling sales, delivery, store handling, after sales service etc. the quality of the workforce in terms of educational qualifications, technical competency, and experience is also seen.
  3. Contacts: As the business for these types of products is done on  the basis of contacts that form a major basis for selection and include the present customers of the dealers, experience in dealing with such customers, and overall contacts in the society
  4. Floor space: Depending on the quantity of products to be stocked for the targeted sales, the floor space of the godown should be sufficient and located close to the market
  5. Location: Location and ambiance of the outlet are not important.
  • Feedback from the market is obtained through the market network and the present dealer network. The feedback is sought for things like authenticity of the claims and the reputation of the person to be appointed.
  • Appointment is given to the elected dealers after they give a security deposit. Every dealer is required to make a deposit with the company, which works out to roughly around three months of expected sales.

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.

Modern Retailers


Economies of scale and information technology have given top retailers enormous power. Sophisticated computer systems can tell retailers instantly what they are selling in each of their numerous stores, how much money they are making on each sale, and, increasingly, who their customers are. They no longer are lumbered which stock they may not be sold, or run out of items customers want to buy.

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.

Business Financial Strategy


Financial strategy examines the financial implications of corporate and business-level strategic options and identifies the best financial course of action. It can also provide competitive advantage through a lower cost of funds and a flexible ability to raise capital to support a business strategy. Financial strategy usually attempts to maximize the financial value of the firm.

The trade-off between advancing the desired debt-to-equity ratio and relying on internal long-term financing via cash flow is a key issue in financial strategy. Many small and medium-sized companies try to avoid all external sources of funds in order to avoid outside entanglements and to keep control of the company within the family. Many believe that only by financing through long-term debt can a corporation use financial leverage to boost earnings per share, thus raising stock price and the overall value of the company. Higher debt levels not only deter takeover by other firms (by making the company less attractive), but also leads to improved productivity and improved cash flows by forcing management to focus on core businesses.

A very popular financial strategy is the leveraged buy out—a company is acquired in a transaction financed largely by debt—usually obtained from a third party, such as an insurance company or an investment banker. Ultimately the debt is paid with money generated from the acquired company’s operations or by sales of its assets. The acquired company, in effect, pays for its own acquisition. Management of the leveraged buy out is then under tremendous pressure to keep the highly leveraged company profitable. Unfortunately the huge amount of debt on the acquired company’s books may actually cause its eventual decline by focusing management’s attention on short-term matters.

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.

Best Practices of Winning Companies


Winning companies realize the strategic value of building successful partnerships. While all companies experience periods of highs, lows, and transitions in their respective performance and in stock prices, truly successful companies build lasting partnerships that sustain and provide long term value to all partners, employees, and shareholders.

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.

Overproduction


Overproduction is regarded as the most serious waste as it discourages a smooth flow of goods or services and is likely to  inhibit  quality and productivity. Such overproduction also tends to lead to excessive lead and storage times. As a result defects may not be detected early, products may deteriorate and artificial pressures on work rate may be generated. In addition, overproduction leads to excessive work-in-progress stocks which result in the  physical dislocation of operations with consequent poorer communication. This state of affairs is often encouraged by bonus systems that encourage the push of unwanted goods. The pull or Kanban system was employed by Toyota as a way of overcoming this problem.

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.

Corporate Stakeholders


Stockholders are a critically important group. By providing capital, monitoring corporate performance, assuring the effective operation of stock markets, and bringing new issues to the attention of management, stockholders play a very important role in making the business system work. Corporate leaders have an obligation to manage their companies in ways that promote and protect a variety of stakeholders. Balancing these various interests is a prime requirement of modern management. Although stakeholders are no longer considered to be the only important stakeholder group, their interests and needs remain central to the successful operation of corporate business.

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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