Bid Decision-Making


Following tools and techniques are used:

  1. Risk Assessment: Sellers must identify, analyze, and prioritize the risks associated with a potential project. Many world-class companies have developed practical risk assessment tools—surveys, checklists, models, and reports-containing both qualitative and quantitative information. Software programs are increasingly being developed to help managers assess risks.
  2. Opportunity Assessment: Sellers must identify and analyze the opportunities that are potentially viable. Many successful companies have developed standard forms, surveys, checklists, or models to help managers assess opportunity.
  3. Risk Management Team Process: Sound business management requires a solid understanding of risks and the methods to identify, analyze, and mitigate them. Successful companies follow a designated risk management team process, not just a best guess individual assessment.

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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Entering New Markets


Managers are always under pressure to increase the sales and profits of their firms, and why they face a mature, saturated market at home, they begin the search for new markets outside their home country. They find that 1) a rising GNP/capita and population growth appear to be creating markets that are reaching the critical mass necessary to become viable candidates for their operations and 2) the economies of some nations where they are not doing business are growing at a considerably faster rate than is the economy of their own 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, and my Lectures.

Inventory of Talent


The process addresses the supply side of planning. It requires identification of the current incumbents and the possible candidates. Candidates are usually nominated by the immediate or unit manager, and the inventory typically sweeps widely, including all viable management candidates rather than being exclusive at the outset.

Included among the candidates are in-line successors (essentially replacements waiting to move up), candidates elsewhere in the organization, and longer-term or high-potential candidates. Many companies make a specific effort to include all women and minorities who may have management potential, near-term and long-term.

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.

Effective Market Segmentation


Market segmentation is a means to an end: to identify and profile distinct groups of buyers who differ in their needs, preferences, and responsiveness to an organization’s marketing programs. Effective market segmentation should provide answers to six fundamental buyer-related questions for each market segment:

  1. Who are they?
  2. What do they want to buy?
  3. How do they want to buy?
  4. When do they want to buy?
  5. Where do they want to buy?
  6. Why do they want to buy?

More often than not, the answers should be expressed in a narrative form documented with quantitative and qualitative research.

From a managerial perspective, effective market segmentation means that each segment identified and profiled satisfies four fundamental requirements. Each market segment should be:

  1. Measureable. The size and buying power of market segmentation can be quantitatively determined.
  2. Differentiable. A market segment is distinguishable from other segments and responds differently to different marketing programs.
  3. Accessible. A segment can be effectively reached and served through an economically viable marketing program.
  4. Substantial. A segment should be large enough in terms of sales volume potential to cover the cost of the organization serving it and return a satisfactory profit.

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 Knowledge


You have to be expert before you even start your business. The old saying, “We learn by our mistakes” will not do your business reputation any good if it applies to your lack of expertise. You have to know your products or service inside out. You may love a business for the product lines, but will your customers love the products too? When problems arise with a product, or when a customer asks technical questions, are you knowledgeable enough to resolve these problems and answer their questions competently and confidently?

One way to increase your product knowledge is to contact the manufacturers or local distributor. They are usually happy to send you product information and answer your questions. Some of the questions you should research about your product lines (or service) are these:

  • How long have these products been on the market?
  • Are they seasonal, and when do most sell?
  • How often are these products upgraded or changed?
  • Could you be caught unexpectedly with obsolete inventory?
  • What do the manufacturers’ warranties cover?
  • Are replacement parts readily available?
  • Are the products competitively priced?
  • Are buying trends increasing or decreasing?
  • Are the products high, medium, or low in quality?
  • How do the products compare to the competition?
  • What are groups do these products appeal to?
  • What is the life expectancy of the products?
  • Could the products become obsolete due to changing technology?

After these questions are answered, you may find that the business is not viable after all. The product pricing may be too high compared to the competition, or you may discover that over the previous five years, overall demand for the products is declining due to technological changes and shifts in consumer buying trends. In another five years, the demand could become substantially less. The products may appear high in quality on sight, but you may discover that they are poorly made and not something that you would feel confident selling. Perhaps the manufacturer’s guarantees are inadequate, or replacement parts are priced exorbitantly and hard to secure.

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.

Expanding into New Functions


A common difficulty for entrepreneurs during the growth of their business is expanding into another distinctive business function. When we read or hear about outstanding entrepreneurs we see the exponential portion of their record. The long, slow foundation building is not interesting to the investment community or the media. But the truth is there was a long period of solid building within one distinctive business function.

A new business or a young business can barely support the management, administration, and marketing it has to have to operate in one distinctive function. Different business functions require different handling in each of these areas. This imposes an additional nonproductive burden on an already overburdened revenue-generating segment of the business.

Successful entrepreneurs start the smallest possible viable business concept and concentrate on it until it works very well. They get to know more and more about their little business until they know more about it than anyone else. They become the expert about their business.

When discussing the entrepreneur’s career path they perceive growth opportunities. At this point it is very easy for them to conclude that having made this business work they can make any business work. They frequently see green pastures on the other side of the fence. The successful entrepreneurs develop and refine a business concept for the growth they will undertake. They then expand their little business. They don’t leap after someone else’s headaches. They build on their own experience and expertise.

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

Facing the Harsh Facts


Many companies that have lost profits or market share have managers who are still waiting patiently for their business to “get back to normal.” Others are looking for government help for their declining market and profit positions. Neither of these approaches is a viable situation. What is needed is less wishful thinking and rhetoric and greater willingness to squarely face the true facts about their markets and competitive positions. The demand changes that have occurred in many markets are structural, not cyclical, and it is unrealistic to expect any kind of a dramatic recovery or turnaround that will restore demand to former levels.

It is extremely difficult for managers who have built their entire careers around specific products and technology to accept the fact that their former business base has now leveled out from prior peaks, or worse yet, become obsolete or irretrievably lost to new competitors or technology. Obviously, many old-line steel managers could not imagine today’s world of aluminum cans, plastic auto parts and bodies, or Japanese, Korean, and small regional producers who constantly “beat their pants off.” Nor could managers in the high flying semiconductor business foresee the situation where their markets have not only ceased to gallop ahead, but decline dramatically, and where foreign sources, including Brazil, Korea, and Taiwan, have captured the bulk of the remaining business. Unfortunately, these are the facts, and an equally discouraging set of forces applies in many other markets.

It is understandable that managers who have grown up and lived through the growth years in any of these industries find today’s conditions difficult to accept. But they must change their myopic or unrealistic views of their business so they can tackle the hard work required to regain a profitable competitive footing. Otherwise, their situations will not improve and will most likely deteriorate further.

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