Subsistence Economy


In such an economy, each family unit produces everything it consumes. There is no need to exchange goods and services. Each producer-consumer unit is totally self-sufficient, although usually its standard of living is relatively low. No marketing takes place because marketing doesn’t occur unless two or more parties are willing to exchange something for something else.

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.

Price: A Measure of Value


Prices in the marketplace are a rough measure of how society values particular goods and services. If consumers are willing to pay the marketplaces, then apparently they feel they are getting at least their money’s worth. Similarly, the cost of labor and materials is a rough measure of the value of resources used in the production of goods and services to meet these needs. New consumer needs that can be served profitably—not just the needs of the majority—will probably be met by some profit-minded businesses.

In a market-directed economic system the prices in both the production sector (for resources) and the consumption sector (for goods and services) vary to allocate resources and distribute income according to consumer preferences. Over time, the result is a balance of supply and demand and the coordination of the economic activity of many individuals and institutions.

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.

Elaboration


Taking an idea or a thing and bending and stretching it in interesting ways is elaborative ability. Management is full of tools and techniques. Each of these is an elaboration of an insight. The idea that if management gets vital information about the performance and operations of the organization, then remedial action can be faster has led to computerized management information systems, which can be highly elaborate, with periodic reports running into dozens of pages. The idea that money is a motivator of effort has led to all sorts of elaborative incentive systems. The idea that in a market economy the customer is the king has led to all sorts of market research models to find out what the customer wants and what he or she is willing to pay for it.

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.

Who Innovates?


Schumpter first suggested that small entrepreneurial firms were the sources of most innovations. Later he changed his view and suggested that large firms with some degree of monopoly power were more likely to be the sources of technological innovation. He argued that large firms have the production and other complementary assets that are necessary to commercialize an invention; have the size to exploit the economies of scale that are prevalent in R&D; are more diversified and therefore more willing to take the kind of risk that is inherent in R&D projects; have better access to capital that smaller firms; and, as monopolists, do not have competitors ready to imitate their innovations and therefore are more likely to invest in them. By shifting the focus to the type of innovation, however, whether incumbents or new entrants are able to introduce and exploit innovation is a function of whether the innovation is incremental—a function of how new knowledge and the new product are.

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.

Delegation Skills


It’s not uncommon for managers to resist delegating the work they once did themselves. However, to be an effective and successful manager, it is essential that you delegate work to others.

To increase your willingness to delegate, first determine the reason for your resistance, then identify ways to overcome it. Common reasons for managers’ reluctance to delegation include:

  • Insufficient time to explain the task or train someone to do it. While this is sometimes an acceptable reason for not delegating short-term projects, more often it is not. The time you spend teaching employees’ tasks will save you time and effort in the long run. The sharing of knowledge is an investment in time that pays of in many ways.
  • Desire for perfection. If you feel that you are the only person who can do certain tasks well enough, be careful; this is a danger sign. It’s often unlikely that you are the only person who can do them. Start by delegating parts of these tasks, and each employees to help them perform to your satisfaction.
  • Personal satisfaction and/or reward from task accomplishment. If you enjoy a task or receive recognition from others when you perform it, you may tend to reserve it for yourself when you could be delegating it. It is difficult to give up work you really like. Learn to achieve satisfaction from other parts of your job.
  • Lack of confidence in employees’ abilities. If you lack confidence in an employee’s abilities, carefully evaluate what the employee can and cannot do. You may want to check your impressions with others, because people sometimes pigeonhole other people based on one or two vivid events. Then delegate work the person can do, and provide coaching as the work proceeds.
  • Fear of failure. Many managers are concerned that if mistakes are made, the consequences will be disastrous. Identify the  possible risk with the employee, if the risks are really large, ask that contingency plans to be made. Ultimately, you need to be  willing to take responsibility for your employees’ mistakes on delegated tasks to help them grow and develop.

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.

Post-sale Customer Loyalty


Maintaining the loyalty of major current customers can be crucial for improving a business’s profitability as its markets mature. Loyal customers become more profitable over time. The firm not only avoids the high costs associated with acquiring a new customer, but it typically  benefits because loyal customers a) tend to concentrate their purchases, thus leading to larger volumes and lower selling  and distribution costs, b) provide positive word-of-mouth and customer referrals, and c) may be willing to pay premium prices for the value they receive.

Periodic measurement of customer satisfaction is important, then, because a dissatisfied customer is unlikely to remain loyal to a company over time. Unfortunately, however, the corollary is not always true. Customers who describe themselves as satisfied are not necessarily loyal. Indeed, 60 to 80 percent of customer defectors in most businesses are “satisfied” or “very satisfied” before their defection. In the interim, perhaps, competitors improved their offerings, the customers requirements changed, or other environmental factors shifted. Businesses that measure customer satisfaction should be commended, but urged not to stop there. Satisfaction measures need to be supplemented with examinations of customer behavior, such as measures of the annual retention rate, frequency for purchases, and the percentage of a customer’s total purchases captured by the firm.

Defecting customers should be studied in detail to discover why the firm failed to provide sufficient value to retain their loyalty. Such failures often provide more valuable information than satisfaction measures because they stand out as a clear, understandable message  telling the organization exactly where improvements are needed..

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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