Market-Development Strategy


A market-development strategy dictates that an organization introduces its existing offerings to markets other than those it is currently serving. Examples include introducing existing products to different geographical areas or different buying publics.

The mix of marketing activities used must often be varied to reach different markets with differing buying patterns and requirements. Reaching new markets often requires modification of the basic offering, different distribution outlets, or a change in sales effort and advertising.

Market development involves a careful consideration of competitor strengths and weaknesses and competitor retaliation potential. Moreover, because the firm seeks new buyers, it must understand their number, motivation, and buying patterns in order to develop marketing activities successfully. The firm however must consider the strengths, in terms of adaptability to new markets, in order to evaluate the potential success of the venture.

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.

Individual Power


Power involves the potential to influence others successfully—both the things they do and the ways they feel about something. The individual bases of power are the factors that give people the capacity to influence others successfully.

It is an inevitable fact of organizational life that some individuals can boast a greater capacity to influence the people around them than others. In other words, power is definitely not distributed equally in most organizations.

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.

Extending the Product Life Cycle


The concept of the product life cycle tells us that a sequence of actions is required to maintain a product’s sales and profits. The goal of the planning is to stretch out the life of the product, thus keeping it profitable longer. The following techniques are often effective in extending a product’s life cycle:

  1. New or extended uses: The sales of rugged four-wheel drive sport utility vehicles, ranging from inexpensive jeeps to Range Rovers, increased dramatically once they became accepted as family automobiles.
  2. b. Reduce price and build volume: Tylenol became a much more successful product after Johnson & Johnson reduced its price.
  3. c. Increased frequency of Use: Trade associations that are connected to the poultry and fish industries have been successful in informing the public that their products are low in cholesterol and should be eaten frequently as part of a healthy diet.
  4. d. Broaden the target market: As the ethical issue, American tobacco firms have successfully enlarged the market for American cigarettes by focusing on Japan. They have also been very successful in expanding the market for tobacco products in Europe and South America.

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.

Linear Programming


Linear programming is a mathematical method used to solve resource allocation problems, which arise “whenever there are a number of activities to be performed, but limitations on either the amount of resources or the way they can be spent.” For example, it can be used to determine the best way to:

  • Distribute merchandise from a number of warehouses to a number of customers;
  • Assign personnel to various jobs;
  • Design shipping schedules;
  • Select the product mix in a factory to make the best use of machine and labor hours available while maximizing the firm’s profit;
  • Route production to optimize the use of machinery.

In order for managers to apply linear programming successfully, the problem must meet certain basic requirements: There must be a stated, quantifiable goal, such as “minimize total shipping costs”; the resources to be utilized must be known (a firm could produce 200 of one item and 300 of another, for instance, or 400 of one or 100 of another); all the necessary relationships must be expressed in the form of mathematical equations or inequalities; and all these relationships must be linear in nature.

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

Differentiation Strategy


With the differentiation strategy, the unique attributes and characteristics of a firm’s product (other than the cost) provide value to customers. Because a differentiated product satisfies customers’ unique needs, firms following the differentiation strategy usually charge premium prices. To do this successfully, a firm must truly be unique at something or be perceived as unique. The ability to sell a good or service at a price that exceeds what was spent to create the product’s differentiated features allows the firm to outperform its rivals and earn above average returns.

 Rather than costs, the differentiation strategy’s focus is on continuously investing in and developing features that differentiate a good or service in ways that customers value. Overall, a firm using the differentiation strategy seeks to be different from its compititors along as many dimensions as possible. The less similarity between a firm’s goods or services and those of competitors, the more buffered the firm is from rival’s actions.

 A product can be differentiated in an almost endless number of ways. Unusual features, responsive customer service, rapid product innovations and technological leadership, perceived prestige and status, different tastes, and engineering design and performance are examples of approaches to differentiation. In fact, virtually anything a firm can do to create real or perceived value for customers is a basis for differentiation. The challenge is to identify features that create value for the customer.

 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

Reproduction of Change Agents


A large force of change agents can quickly bring in not only many innovations but also a culture of innovation. A number of companies that successfully attempted turnaround from sickness showed how this can be done.

 

One strategy for creating numerous change agents is to identify those with fire in their belly, give them training and exposure, and empower them to innovate. Another strategy is to shock the stolid into the recognition of the need for innovations and changes, provide them with a vision of change, and provide opportunities to them to contribute innovative ideas and actions. When orchestrated, the two strategies may give excellent results in terms of yielding not only numerous innovations but also an innovationist organizational culture.

 

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

Efficiency and Values


The term ‘efficiency’ is a concept that has meaning only in the context of an agreed set of objectives. Such objectives can include objectives about inter-personal distribution, typically reflecting one or other interpretation of equity. Occasions when the goals of efficiency and distribution conflict of the agreed set of objectives does not include equitable distribution. Indeed, historically and still to a great extent, the dominant interpretation of ‘efficiency’ has typically included only the objective of measured economic production/consumption. We should at most call this interpretation ‘economic efficiency’ and not honor it with the label of efficiency in general. But the efficiency label has enormous legitimizing power and functions as a trump card in the modern vocabulary. No one can declare themselves against it. If a policy option is deemed inefficient that usually sinks it. So contenders try to capture the label, to serve their particular set of objectives. This is what business interests and mainstream economists have successfully done for a long time. We need ask: Efficiency by which values?

 

Mainstream economists have focused on growth of aggregate production and national income. Business and other sectional interests may focus on sectional gains but advocate these behind the language of ‘efficiency.’ Not infrequently, the policies behind an efficiency label have been less economic as well as less equitable, and an ‘efficient’ only for elites.

 

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

Legal Fiction or Economic Reality?


Knowing the cost of your operations, however, is not enough. To compete successfully in an increasingly competitive global market, a company has to know the costs of its entire economic chain and has to work with other members of the chain to manage costs and maximize yield. Companies are therefore beginning to shift from costing only what goes on inside their own organizations to costing the entire economic process, in which even the biggest company is just one link.

The legal entity, the company, is a reality for shareholders, for creditors, for employees, and for tax collectors. But economically, it is fiction. Thirty years ago the Coca Cola Company was a franchisor. Independent bottlers manufactured the product. Now the company owns most of its botling operations in the United States. But Coke drinkers–even those few who know that fact–could not care less. What matters in the marketplace is the economic reality, the costs of the entire process, regardless of who owns what.

Again and again in business history, an unknown company has come from nowhere and in a few short years overtaken the established leaders without apparently even breathing hard. The explanation always given is superior strategy, superior technology, superior marketing, or lean manufacturing. But in every single case, the newcomer also enjoys a tremendous cost advantage, usually about 30 percent. The reason is always the same: the new company knows and manages the costs of the entire economic chain rather than its costs alone.

A powerful force driving companies toward economic chain costing will be the shift from cost-led pricing to price-led costing.

It will be painful for most businesses to switch to economic chain costing. Doing so requires uniform or at least compatible accounting systems at companies along the entire chain. Yet each one does its accounting in its own way, and each is convinced that its system is the only possible one. Moreover, economic-chain costing requires information sharing across companies, yet even within the same company, people tend to resist information sharing. Despite those challenges, companies can find ways to practice economic chain, costing now.

Whatever the obstacles, economic chain costing is going to be done. Otherwise, even the most efficient company will suffer from an increasing cost disadvantage.

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 http://www.asifjmir.com