Procurement Planning


Procurement planning is determining what to procure and when. The first contract management problem for the buyer is to decide which goods and services to provide or perform in-house and which to outsource. This make or buy decision requires consideration of many factors, some of which are strategically important. The decision to buy creates a project that will be implemented in cooperation with an outside organization that is not entirely within the buyer’s control. As a result, an element of uncertainty and risk will be introduced for the buyer.

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 Know-how


People who bring capital, labor, and resources together to fashion them into a productive organization that must face the risks of an uncertain world, occupy strategic positions. Thus, given the same inputs, presumably a country with superior management will do better than one with weak management. The importance of managerial know-how can be illustrated by the airlines industry.

Obviously an explanation of world business involves many elements. But with a basic understanding of the few elements, comparative advantage and specialization.

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.

Market Sales Potential and Profitability


An essential activity in opportunity evaluation is the determination of market sales potential and profitability. Estimating market’s sales potential for offerings is a difficult task even for a seasoned marketing executive. Markets and offerings can be defined in numerous ways that can lead to different estimates of market size and dollar sales potential. For innovative offerings or new markets, marketing analysts must often rely almost entirely on judgment and creativity when estimating market sales potential. Therefore, it is understandable that market sales potential estimates very greatly for high definition television  (HDTV) and hybrid (gasoline and battery powered) automobiles. The underlying technology for both offerings is still evolving as is the physical form. In such dynamic settings, measures for identifying prospective market segments are uncertain.

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.

 

Message Content in Marketing Communications


Message content deals with what is said in a message and how it is said. There are five common content topics that have great relevance for marketing practitioners: 1) fear appeals; 2) the use of humor; 3) the role of music; 4) sex appeals; and 5) subliminal messages. Advertisers, salespersons, public relations spokespersons, and other marketing communicators use all of these message styles to varying degrees in hopes of gaining attention, achieving impact, and ultimately producing sales.

Fear Appeals: Companies sometimes use fear appeals in attempting to motivate customers to action. The underlying logic when using fear appeals is that fear will stimulate audience involvement with a message and thereby promote acceptance of message arguments. The appeals may take the form of social disapproval or physical danger aside from the basic ethical issue of whether fear should be used at all, the fundamental issue for marketing communicators is determining how intense the fear presentation should be. Numerous fear-appeal studies have been performed by psychologists and marketing researchers, but the fact remains that there still is no consensus on the “optimum” level of fear. Some Neither extremely strong nor very weak fear appeals are maximally effective. It seems that appeals at a somewhat moderate level of fear are best.

Humor: Politicians, actors and actresses, after-dinner speakers, professors, and indeed all of us at one time or another use humor to create a desired reaction. Salespeople and advertisers also turn to humor in the hopes of achieving various communication objectives. Whether humor is effective and what kinds of humor are most successful are matters of some debate among marketing communications practitioners and scholars.

Despite the frequent use of humor in advertising, relatively little is known in a definitive scientific sense about its effects on customer behavior. However there are some generalizations:

  • Humorous messages attract attention.
  • Humor can inhibit consumers’ understanding of the intended meaning of a message.
  • Because humor is a pleasant form of distraction, it can produce an increase in persuasion by effectively “disarming” receivers’ natural selective perception and reducing their tendencies toward counter arguing with persuasive selling claims.
  • Humor tends to enhance source credibility, thereby improving the persuasive impact of an ad message.
  • A humorous context may increase liking for the source and create a positive mood, thereby enhancing the persuasive effect of the message.
  • To the extent that a humorous context functions as a positive reinforce, a persuasive communication placed in such a context may be more effective.
  • The effects of humor can differ due to differences in audience characteristics. Advertisers must use humor carefully since consumers display a variety of tastes in what is humorous and what is not.

Music: celebrated musicians, as well as, non-vocal accompaniment and unknown vocalists are used extensively in promoting everything. Music performs useful communication functions such as attracting attention, putting consumers in a positive mood, and making them more respective to message arguments. Although music’s role in marketing is an increasingly understand subject, a few recent studies have begun to demonstrate the roles that music performs. Music is an unconditional stimulus in an effort to influence experimental subjects’ preference.

Sex Appeals: Sex appeals in advertising are often explicit. The use of explicit sex was unthinkable just a few years ago, it now represents part of a new trend toward more sexually explicit advertising. Sexual explicitness is prevalent and overt in some countries. Whether such advertising is effective and under what conditions it may be effective remain largely unexplored issues. Complicating the matter is the fact that sex in advertising actually takes two forms: nudity and suggestiveness. It is uncertain which form is more effective. There are several potential roles. First, sexual material in advertising acts as an initial attentional lure and also holds attention for a longer period, given that the models are attractive or the scene is pleasant. This is called the “stopping power” role of sex. A second potential role is to enhance recall. Sexual content or symbolism will enhance recall only if it is appropriate to the product category and the creative advertising execution. Sexual appeals produce significantly better recall only if the advertising execution has an appropriate relationship with the advertised product. A third role performed by sexual content in advertising is to evoke emotional response such as feelings of attraction or even lust.

Subliminal Messages: the word subliminal refers to the presentation of stimuli at a rate or level that is below the conscious threshold of awareness. Stimuli that cannot be perceived by the conscious senses may nonetheless be perceived subconsciously. This possibility has generated considerable concern from advertising critics and has fostered much speculation from researchers.

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.

Productivity and People Management


Productivity—real output per working hour—is not rising quickly as it did previously. This does not necessarily mean that workers are becoming lazier. What it does mean is that in an uncertain economy, businesses are not investing enough in the machinery needed to help workers accomplish more. For example, the steel plants are so obsolete that Japan and Germany are taking over the international steel markets. Too, as the economy become more service-oriented, productivity tends to slow down. The reason is that services—such as family counseling—tend to be able to increase productivity only by reducing their quality.

Managing people and resources on all levels of organizations will continue to be a major managerial challenge. Future managers have to be more sensitive to people’s needs and more flexible in resolving problems. Early retirement and part-time work programs are likely to become common in the near future.

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.

Feedback


People must receive feedback. Unless they know how well they are doing in fulfilling their responsibilities and meeting the standards, they cannot be expected to improve their performance when needed.

Many managers don’t get feedback because they think people know without being told when they are doing a poor job or a good job. The manager who makes this assumption knows very little about human nature. Most people have a limited capacity to judge and evaluate their own performance and work. They need help in seeing their strengths and weaknesses. That goes for the excellent performance as well as for the poor performer.

People need to know when they are doing a superb job and when they need to improve and make changes. When they don’t receive feedback, they become preoccupied with the question of how well they are doing. Are they going to get zapped or praised? Are they on the manager’s good list or bad? Are they going to get promoted or fired? These are difficult questions for anyone to live with.

When people don’t receive the necessary feedback, they feel unnoticed, unappreciated, and uncertain. They usually find a way of getting some form of attention, usually negative, since that is the only thing some managers respond to.

It is impossible to establish an effective working relationship with people unless you give them feedback. There must be two-way communication if there is to be an understanding between you and the people you manage.

Whenever you give feedback to a person on his performance, it should accomplish one or more of the following objectives:

  • Reinforce positive performance.
  • Show the person how and where he needs to change and improve.
  • Motivate the person to perform better.
  • Build pride.

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

Evaluate


Evaluation is intimidating. Often, managers are too busy to keep up with what people are doing and how well they are doing. And when managers don’t know what their people are doing, they can’t  evaluate accurately. As a result, they feel unable to support their impressions or comments about performance—and so they avoid the task.

But when selection and direction are done properly, evaluation becomes a logical, easy-to-implement process. If you know what your people are supposed to do and have assigned each of them specific tasks, responsibilities, and objectives with deadlines, then you have criteria against which to measure that individual’s performance. In this situation, evaluation becomes a simple matter of determining whether or not a person has met those goals, and how well.

Mangers often assume that if they select good people and direct them in what is expected, things will get done. They’re right. Things will get done, but how well they will get done and how long they will take are uncertain. Evaluation lets you determine how well something was done and whether it was done on time. In a sense, evaluation is like a traffic cop. You can post all the speed limit signs in the world, but they will be ignored unless people know that infractions will be discovered and fined.

This sounds logical, but it’s surprising how many managers postpone evaluation again and again while they focus on more pressing but ultimately less important duties. When evaluation is postponed, deadlines also slip, because employees begin to feel that timeliness and quality are not important. When performance slips, more responsibilities shift to the manager—who thus has even less time to direct and evaluate employees.

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

Marketing as an Information Function


Good information is a facilitator of successful marketing and indeed, seen in this light marketing management becomes first and foremost an information processing activity. The argument that information processing should be seen as the fifth ‘P’ in the marketing mix is based on a view of marketing as a ‘boundary-spanning’ activity, i.e., acting as the interface between the core of the organization and the marketing environment. Indeed, it has been argued that it is a largely through carrying out this boundary-spanning role, i.e., absorbing environmental uncertainty and interpretting the market environment for the rest of the organization, that market gains influence in strategic decision making. This involves, in essence, creating from the pool of information that the marketing environment represents a picture of the world which enables others in the organization to forecast, plan and make decisions. At its simplest, if the marketing department (or, it should be noted, some other subunit in the organization) does not convert the uncertainty of the marketing environment into a sales forecast, there is no basis for planning production, personnel requirements or the financing of operations.

 In this sense, the management of critical types of marketing information is at the very center of the status of marketing management and the implementation of the marketing concept in an organization.

 In these terms, the challenge to marketing executives is not simply to adopt the latest information technology but to actively manage the process of ‘environmental enactment’ in their organizations. The practical side of this argument is that marketing information is concerned with creating a picture of the marketplace for people in the organization which they will use in making the decisions. This picture is likely to be highly imperfect, but it provides a frame of reference for decision making. In this sense there are few imperatives more urgent for marketing executives, when for most organizations so much depends on their ability to understand and respond to demands for service, quality and responsiveness to the market.

 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

Employing Too Many People


This seems obvious; employing too many people to do the work is clearly a waste on money. Unfortunately, there is a natural tendency for organiations to expand – largely because it is easy to employ an extra person, but difficult to sack one.  This growth is particularly obvious at the top.

Most organizations are overstaffed. When someone is overworked they can resign, share the work with a colleague, or demand another two assistants.

When there is not enough work to keep everyone occupied, there is plenty of time to worry, gossip and play politics. This by itself can be disruptive, but there are more problems when you try to trim the costs. Your best people will read the signs and start looking around for another job; the less good will keep their heads down and avoid any controversy, risks or mistakes. No one performs at their best when they spend their time applying for other jobs or trying to look invisible.

Remember that those who are in danger of losing their jobs deserve the longest warning that you can give. It isn’t their fault that the organization is having problems, and they have to plan for a difficult and uncertain future. Many managers delay these decisions, giving different reasons why they shouldn’t say anything until the last possible moment. This leaves everyone worried. It is far better to sort things out early, so that those remaining can concentrate on their work, and those leaving can help for the future.

Overstaffing has more widespread effects than simply wasting money, and you should avoid it by controlling recruitment and promotions.

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

Increasing Knowledge Intensity


Knowledge (information, intelligence, and expertise) is the basis of technology and application. In the 21st Century competitive landscape, knowledge is a critical organizational resource  and is increasingly a valuable source of competitive advantage. Because of this, many companies now strive to transmute the accumulated knowledge of individual employees into a corporate asset. Some argue that the value of intangible assets, including knowledge, is growing as a proportion of total shareholder value. The probability of achieving strategic competitiveness in the 21st Century competitive landscape is enhanced for the firm that realizes that its survival depends on the ability to capture intelligence, transform it into usable knowledge, and diffuse it rapidly throughout the company. Firms that accept this challenge shift their focus from merely obtaining the information to exploiting the information to gain a competitive advantage over rival firms.

 

Conditions in the 21st Century competitive landscape shows that firms must be able to adapt quickly to achieve strategic competitiveness and earn above average returns. The term strategic flexibility describes a firm’s ability to do this. Strategic flexibility is a set of capabilities firms use to respond to various demands and opportunities that are a part of dynamic and uncertain competitive environments. Firms should develop strategic flexibility in all areas of their operations. Such capabilities in terms of manufacturing allow firms to “switch gears—form, for example, rapid product development to low cost—relatively quickly and with minimum resources.

 

To achieve strategic flexibility, many firms have to develop organizational slack. Slack resources allow the firm some flexibility to respond to environmental changes. When the changes required are large, firms may have to undergo strategic reorientations. Such reorientations can drastically change a firm’s competitive strategy. Strategic reorientations are often the result of a firm’s poor performance. For example, when a firm earns negative returns, its stakeholders are likely to place pressure on the top executives to make major changes. To be strategically flexible on a continuing basis, a firm has to develop the capability to learn. The learning continuously provides the firm with new and current sets of skills. This allows the firm to adapt to its environment as it encounters changes.

 

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