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.

Conducting an Interview


Have a plan and follow it. You should devise and use a plan to guide the interview. Significant areas to cover include the candidate’s:

  • College experiences
  • Work experiences
  • Goals and ambitions
  • Reactions to job you are interviewing for
  • Self assessments (by the candidate of his or her strengths and weaknesses)
  • Outside activities

Follow your plan. Start with an open-ended questions for each topic—such as, “Could you tell me about what you did when you were in high school?” keep in mind that you are trying to elicit information about four main traits—intelligence, motivation, personality, and knowledge and experience. You can then accumulate the information as the person answers. You can follow up on particular areas that you want to pursue by asking questions like, “Could you elaborate on that, please?

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.

Sun Tzu’s Advice to Strategy Makers


More than 2300 years ago, Sun Tzu wrote The Art of War, an amazing book on the principles of military strategy. Herebelow are some idea extracts:

  1. Adopt SOSTAC. He believed that it is essential first to carry out a complete analysis of the situation. The strengths and weaknesses of one’s position, the relationship between one’s goals and the goals of society at large, the intensity of one’s courage and determination, and the worthiness and integrity of one’s objective must all be carefully evaluated. Even then, it seems, SOSTAC (Situation Analysis, Objectives, Strategy, Tactics, Action, and Control) was emerging—situation analysis, objectives and strategy.
  2. Do your Homework. Those who triumph, compute at their headquarters, a great number of factors, prior to a challenge. Those who are defeated, compute at their headquarters, a small number of factors, prior to a challenge. Much computation brings triumph, little computation brings defeat. How much more so with no computation at all. By observing only this, I can see triumph or defeat.
  3. Develop some options. Therefore those who are not entirely aware of strategies that are disadvantageous, cannot be entirely aware of strategies that are advantageous.
  4. Know your Resources. You must be certain that your resources have been carefully evaluated before engaging in this challenge.
  5. Why senior management Support: before engaging in a challenge, a leader must be certain that the organization is prepared to support the expense of a confrontation.
  6. Do you hurt your market or environment? Brilliant leaders are always aware of the entire system, both inside and outside of their organizations. They know that to harm or destroy what is outside will hurt their own growth, while employing their rivals and incorporating their resources will enhance their strategy.
  7. Put everything in place before making a move. Sun Tzu believed that a true victory can be won only with a strategy of tactical positioning, so that the moment of triumph is effortless and destructive conflict is avoided even before considering a confrontation – for whatever purpose.

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 Efficiency


Managerial efficiency is essential. A business may produce a good or service that satisfies customers and earns some profit. But unless it is as efficient as its major competitors, these aggressive rivals will serve customers better, make more profit, and eventually drive it out of business.

A good location, large size, quality people, and other factors like luck help a business remain efficient. But the most important component of efficiency is good management. So an effective management must:

o     Set realistic goals for the firm.

o     Identify the key markets and types of customers for its main production and marketing efforts.

o     Use the resources of a business (its men, and women, materials, machinery, and money) efficiently.

o     Adapt to outside factors, such as government regulations, ethical standards, and economic and technological trends.

In short, management must direct the resources of the business toward realizable objectives. In the process, management must consider both (1) the firm’s own strengths and weaknesses and (2) the opportunities and threats posed by outside factors in determining what the business actually can achieve.

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.

 

Company Self-Concept


A major determinant of a firm’s success is the extent to which the firm can relate functionally to its external environment. To achieve its proper place in a competitive situation, the firm realistically must evaluate its competitive strengths and weaknesses. This idea—that the firm must know itself—is the essence of the company self-concept. The idea is not commonly integrated into theories of strategic management; its importance for individuals has been recognized since ancient times.

Both individuals and firms have a crucial need to know themselves. The ability of either to survive in a dynamic and highly competitive environment would be severely limited if they did not understand their impact on others on them.

In some senses, then, firms take on personalities of their own. Much behavior in firms is organizationally based; that is, a firm acts on its members in other ways than their individual interactions. Thus, firms are entities whose personality transcends the personalities of their members. As such, they can set decision making parameters based on aims different and distinct from the aims of their members. These organizational considerations have pervasive effects.

Ordinarily, descriptions of the company self-concept per se do not appear in mission statements. Yet such statements often provide strong impressions of the company self-concept. The following excerpts from the Intel Corporation mission statement describe the corporate persona that its top management seeks to foster:

The management is self-critical. The leaders must be capable of recognizing and accepting their mistakes and learning from them.

Open (constructive) confrontation is encouraged at all levels of the corporation and is viewed as a method of problem solving and conflict resolution.

Decision by consensus is the rule. Decisions once made are supported. Position in the organization is not the basis for quality of ideas.

A highly communicative, open management is part of the style.

Management must be ethical. Managing by telling the truth and treating all employees equitably has established credibility that is ethical.

We strive to provide an opportunity for rapid development.

Intel is a results-oriented company. The focus is on substance versus form, quality versus quantity.

We believe in the principle that hard work, high productivity is something to be proud of.

The concept of assumed responsibility is accepted. (if a task needs to be done, assume you have the responsibility to get it done).

Commitments are long term. If career problems occur at some point, reassignment is a better alternative than termination.

We desire to have all employees involved and participative in their relationship with Intel.

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.

 

Concentric Diversification


Grand strategies involving diversification represent distinctive departures from a firm’s existing base of operations, typically the acquisition or internal generation (spin-off) of a separate business with synergistic possibilities counter-balancing the strengths and weaknesses of the two businesses. Diversifications occasionally are undertaken as unrelated investments, because of their high potential and their otherwise minimal resource demands.

Concentric diversification involves the acquisition of businesses that are related to the acquiring firm in terms of technology, markets, or products. With this grand strategy, the selected new businesses possess a high degree of compatibility with the firm’s current businesses. The ideal concentric diversification occurs when the combined company profits increase the strengths and opportunities and decrease the weaknesses and exposure to risk. Thus, the acquiring firm searches for new businesses whose products, markets, distribution channels, technologies, and resource requirements are similar to but not identical with its own, whose acquisition results in synergies but not complete interdependence.

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.

 

Value Chain Analysis


The term value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that customers value. Customer value derives from three basic sources: activities that differentiate the product, activities that lower its cost, and activities that meet the customer’s need quickly. Value chain analysis (VAC) attempts to understand how a business creates customer value by examining the contributions of different activities within the business to that value.

VCA takes a process point of view: it divides (sometimes called disaggregates) the business into sets of activities that occur within the business, starting with the inputs a firm receives and finishing with the firm’s products (or services) and after-sales service to customers. VCA attempts to look at its costs across the series of activities the business performs to determine where low-cost advantages or cost disadvantages exist. It looks at the attributes of each of these different activities to determine in what ways each activity that occurs between purchasing inputs and after-sales service helps differentiate the company’s products and services. Proponents of VCA believe it allows managers to better identify their firm’s strengths and weaknesses by looking at the business as a process—a chain of activities—of what actually happens in the business rather than simply looking at it based on arbitrary organizational dividing lines or historical accounting protocol.

Judgment is required across individual firms and different industries because what may be seen as a support activity in one firm or industry may be a primary activity in another. Computer operations might typically be seen as infrastructure support, for example, but may be seen as a primary activity in airlines, newspapers, or banks.

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.

A Bad Boss


Bad bosses are people too, with their own fears, feelings, strengths, and weaknesses. Sometimes the pompous ones are basically shy and insecure. The ones who yell at people and unduly assert their aggression may be having significant family problems. Bosses with personal health problems may take these out on the staff. Still other bosses may be nice people who are simply in over their heads, and have absolutely no aptitude for the jobs.

By realizing that human frailties often underlie even the most objectionable qualities of bad bosses, employees can be in a better position to deal with them, and to judge whether the situation is temporary or hopeless. They may help them decide whether to stick it out or quit the job.

Even though a bad boss counts on the inertia of the human spirit, you can break free of the intangible bonds that bind. Also beware of some of the tangible bonds. Whatever you do, don’t lock yourself into an enormous mortgage, or you will not have the option of cooling off in another job at a reduced salary. There is a shortage of skilled labor, and a tremendous shortage of versatile labor (people who will accept a total change in career direction when circumstances dictate). Even if you end up with a different bad boss, at least the change will be refreshing. Remember that the average worker will have between four and six complete job changes in the course of working lifetime, so you don’t need to be caught in the “one company, for better or for work” trap for your whole career.

People need a mission in life. If this is denied by a bad boss at work, there are other ways to fulfill this need—ways that will still allow an overall sense of accomplishment. It is obviously bad business for any company to have such a reversal of energies affecting its operation. However, concentrating most of their energies on pursuits outside of work is a common defense against the bad boss when employees elect to stay with their jobs rather than resigning.

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.

Analyzing Current Situation: Checklist


Phase 1: The Environment

  1. What is the state of the economy and are there any trends that could affect the industry, firm, or marketing strategy?
  2. What are current trends in cultural and social values and how do these affect the industry, firm, or marketing strategy?
  3. What are current political values and trends and how do they affect the industry, firm, or marketing strategy?
  4. Is there any current or pending federal, state, or local legislation that could change the industry, firm, or marketing strategy?
  5. Overall, are there any threats or opportunities in the environment that could influence the industry, firm, or marketing strategy?

Phase 2: The Industry

  1. What industry is the firm in?
  2. Which firms are the major competitors in the industry and what is their annual sales, market share, and growth profile?
  3. What strategies have competitors in the industry been using, and what has been their success with them?
  4. What are the relative strengths and weaknesses of competitors in the industry?
  5. Is there a threat of new competitors coming into the industry, and what are the major entry barriers?
  6. Are there any substitute products for the industry, and what are their advantages and disadvantages compared to this industry’s products?
  7. How much bargaining power do suppliers have in this industry, and what is its impact on the firm and industry profits?
  8. How much bargaining power do buyers have in this industry, and what is its impact on the firm and industry profits?

Phase 3: The Firm

  1. What are the objectives of the firm? Are they clearly stated? Attainable?
  2. What are the strengths of the firm? Managed expertise? Financial? Copyrights or patents?
  3. What are the constraints and weaknesses of the firm?
  4. Are there any real or potential sources of dysfunctional conflict in the structure of the firm?
  5. How is the marketing department structured in the firm?

Phase 4: The marketing Strategy

  1. What are the objectives of the marketing strategy? Are they clearly stated? Are they consistent with the objectives of the firm? Is the entire marketing mix structured to meet these objectives?
  2. What marketing concepts are at issue in the current strategy? Is the marketing strategy well planned and laid out? Is the strategy consistent with sound marketing principles? If the strategy takes exception to marketing principles, is there a good reason for it?
  3. To what target market is the strategy directed? Is it well defined? Is the market large enough to be profitably served? Does the market have long-run potential?
  4. What competitive advantage does the marketing strategy offer? If none, what can be done to gain a competitive advantage in the marketplace?
  5. What products are being sold? What is the width, depth, and consistency of the firm’s product lines? Does the firm need new products to fill out its product line? Should any product be deleted? What is the profitability of the various products?
  6. What promotion mix is being used? Is promotion consistent with the products and product images? What could be done to improve the promotion mix?
  7. What channels of distribution are being used? Do they deliver the product at the right time and right place to meet customer needs? Are the channels typical of those used in the industry? Could channels be made more efficient?
  8. What pricing strategies are being used? Hw do prices compare with similar products of other firms? How are prices determined?
  9. Are marketing research and information systematically integrated into the marketing strategy? Is the overall marketing strategy internally consistent?

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.

Opportunity Analysis


Opportunity analysis consists of three interrelated activities:

  • Opportunity identification
  • Opportunity-organization matching
  • Opportunity evaluation

Opportunity arise from identifying new types or classes of buyers, uncovering unsatisfied needs of buyers, or creating new ways or means for satisfying buyer needs. Opportunity analysis focus on finding markets that an organization can profitably serve.

Opportunity-organization matching determines whether an identified market opportunity is consistent with the definition of the organization’s business, mission statement, and distinctive competencies. This determination usually involves an assessment of organization’s strengths and weaknesses and an identification of the success requirements for operating profitably in a market. A SWOT analysis is often employed to assess the match between identified market opportunities and the organization.

For some companies, market opportunities that promise sizable sales and profit gains are not pursued because they do not conform to an organization’s character.

Opportunity evaluation typically has two distinct phases—qualitative and quantitative. The qualitative phase focuses on matching the attractiveness of an opportunity with the potential for uncovering a market niche. Attractiveness is dependent on 1) competitive activity; 2) buyer requirements; 3) market demand and supplier sources; 4) social, political, economic, and technological forces; and 5) organizational capabilities. Each of these factors in turn must be tied to its impact on the types of buyers sought, the needs of buyers, and the means for satisfying these needs.

Opportunity identification, matching, and evaluation are challenging assignment because subjective factors play a larger role and managerial insight and foresight are necessary. These activities are even more difficult in the global arena, where social and political forces and uncertainties related to organizational capabilities in unfamiliar economic environments assume a significant role.

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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