International Investment


More important than world trade in the future may be worldwide capital investment—buying stock in companies in other countries, buying farms and businesses in other countries, building your own plants in other countries, and joining firms from other countries in producing products for world markets.

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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Changing Buying and Selling Processes


Winning companies are all focused on speed to market, cost reduction, and customer satisfaction—whether buying or selling goods, services, and solutions. Today, many leading companies are changing their selling processes and tools, including the following actions:

  • Expanding self-service sales via Web-based sales catalogs of products and related services available to buyers.
  • Creating customized electronic interfaces between themselves and their strategic customers to facilitate rapid order receipt and order processing. Typically, sellers provide their most favored customers with preferred pricing or large discounts.
  • Offering multinational companies global pricing policies for products and services with economic-related adjustments, i.e., variations due to labor rates in specific countries or regions, inflation or deflation, value-added taxes, etc.
  • Developing standard statements of work, acceptance criteria, and standards intervals for consistent on-time delivery worldwide.
  • Understanding the buyer’s business needs and budget in order to develop customized solutions priced to fit the buyer’s desired business case.
  • Providing financing to buyers to help them purchase products when required.
  • Offering extended payment terms to customers, well beyond the usual net—15 days, or net—30 days to net—90 days or net—180 days.
  • Developing Web portals to facilitate rapid and direct communications between sellers and their strategic partners.
  • Providing countertrade, offsets, or counter purchases, in order to secure large purchases.

These actions are just a few of the many innovative process changes, tools, or unique business arrangements that sellers are using to build successful partnerships with their best buyers.

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.

Human Capital


The economic growth, employment levels and the availability of a skilled workforce are inter-related. Economic growth creates employment, but economic growth partly depends on skilled human resources – a country’s human capital. The concept encompasses investment in the skills of the labor force, including education and vocational training to develop specific skills.

Personal and national success are increasingly correlated with the possession of skills. Skilled individuals can command a premium salary in periods of high economic activity. Worldwide, unemployed levels remain high, while organizations have difficulty filling vacancies which require specific expertise. A shortage of skilled people can act as a limiting factor on individual organizations and on the economy as a whole. Small firms are also vulnerable because their owners do not possess basic marketing and finance skills. It is in the interest of any country to maximize its human resources by investing in the skills of its workforce, its human capital. Human capital is one component of a country’s overall competitiveness.

The most successful developing countries are investing heavily in the education and technical skills of their population. Skills requirement are particularly critical at the managerial level.

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.

 

Strategic Reasons for Outsourcing


  1. Improve business focus: For many companies, the single most compelling reason for outsourcing is that several “how” issues are siphoning off huge amounts of management’s resources and attention.
  2. Access to World Class capabilities: By the very nature of their specialization, outsourcing providers bring extensive worldwide, world-class resources to meeting the needs of their customers. Partnering with an organization with world class capabilities can offer access to new technology, tools, and techniques that the organization may not currently possess, better career opportunities for personnel who transition to the outsourcing provider; more structured methodologies, procedures, and documentation; and competitive advantage through expanded skills.
  3. Accelerated Reengineering benefits: Outsourcing is often a byproduct of another powerful management tool—business process reengineering. It allows an organization to immediately realize the anticipated benefits of reengineering by having an outside organization—one that is already reengineered to world-class standards—take over the process.
  4. Shared risks: When companies outsource they become more flexible, more dynamic, and better able to adapt to changing opportunities.
  5. Free resources for other purposes: Outsourcing permits an organization to redirect its resources from noncore activities toward activities that have the greater return in serving the customers.

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.

 

Strategies for Worldwide Innovation


The multi-domestic strategy is appropriate for innovations that depend on understanding local customer preferences, tastes, expectations, distribution channels, and local government regulations than they do on the technological knowledge on which they rest. This strategy is appropriate when the need for market information is high while that for technological information is low. Makers of packaged consumer goods (detergents and cereals) such as Unilever have pursued this strategy. Firms that pursue the multi-domestic strategy have self-sufficient units in each country to better discern and meet local customer preferences and tastes. On the other hand, if technological information requirements are high relative to market information requirements, a firm may want to pursue a global strategy. Firms can locate their facilities either where the environment is most suitable for technological innovations or at home where they have some endowments that give them some advantage. From there they develop products for world markets. If both market and technological information demands are low, a firm can operate using the international arrangement. It can take advantage of whatever home capabilities it has to develop products for its home market. Once the products are successful at home, it can then transfer the capabilities and the innovation to overseas. If both market and technological information needs are high. The transnational arrangement is best. In this mode, firms have access to the best sources of innovation, and the technological knowledge and the market knowledge that underpin them, worldwide.

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.

Advertising and Advertisements


Advertising today is a worldwide phenomenon. It is important to recognize that many advertisers use advertisements for many purposes with many different possible effects. For example, within a given country it is common to find what might be considered highly fanciful advertising for consumer goods such as toothpaste, detergents, or soft drinks, and highly technical messages dealing with construction equipment, medical supplies, or computer services. The advertisers themselves can include huge multinational firms, special interest groups, local shopkeepers, and individuals. Their intents can range from altering behavior to affecting the way people think about a particular social or economic position. The results of their efforts can range from enormously influential to a waste of the advertiser’s money. It is not, then, a subject that lends itself to oversimplification.

 

When you think about “advertising,” you probably think in terms of specific advertisements. To begin there, then, advertisements can be recognized as paid, non-personal communication forms used with persuasive intent by identified sources through various media.

 

As paid communication forms they are different from common varieties of publicity (e.g., a press release) or “public relations” e.g., a news conference), which are often covered by the media without charge. By non-personal they are distinguished from forms of personal salesmanship occurring in business establishments or door-to-door. The advertiser is identified, which again sets this form of persuasive communication apart from various types of promotion and publicity in the form of “news” or “feature” material often carried by the media, but supplied by a particular source whose intent is often persuasive.

 

Advertisements are most commonly associated with the mass media of newspapers, magazines, cinema, television, and radio, although they frequently flourish in other forms such as billboards, posters, and direct mail as well. And, finally, advertisements are overwhelmingly used with persuasive intent. That is, the advertisers are striving to alter our behavior and/or levels of awareness, knowledge, attitude, and so on in a manner that would be beneficial to them.

 

These are some of the most obvious characteristics of advertisements, the end product of much that is advertising.

 

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

The Shift to Customer Service


You may wonder what, exactly, caused the economic shift to service away from manufacturing. Some of the more prominent reasons are described herebelow:

  • Increased efficiency in technology. Because of the development and improvement of machines and computers, production and quality have increased. Two resulting side effects have been an increased need for service industries to care for the technology, and a decrease in manufacturing.
  • Globalization of the economy: Beginning in the 1960s, when worldwide trade barriers were lowered, a variety of factors have contributed to expanded international cooperation and competition. Since that time, advances in technology, communications, diplomacy, and transportation have opened new markets and allowed decentralized worldwide access for production, sales, and service.
  • Deregulation of many industries: the 1970s saw deregulation of industries (e.g., airlines, telephone) alongwith oil embargoes and political unrest (Vietnam, Iran) reducing US competition while allowing other countries free access to those areas of the world. The rapid deregulation of major US public services, competition (with an emphasis on providing service excellence) has flourished.
  • More women entering the workforce: Because more women are in the workplace, many of the traditional roles in society have shifted out of necessity or convenience to service providers.
  • Desire to better use leisure time: More than ever, workers of developed nations enjoy increasing amounts of leisure time. This has heightened a desire to relax, enjoy children, and do other things they value—people want to use their free time in more personally satisfying ways. To accomplish this, they now rely more heavily on service industries to maintain their desired lifestyles.
  • Expectation of quality service: Most customers expect that they will receive a quality product or service. If their expectations are not met, customers simply pick up the phone to call or visit a competing company where they can receive what they think they paid for. This created a need for more and better trained customer service professionals.
  • Better educated customers: Not only are customers more highly educated, they are also well informed about price, quality, and value of products and services. This has occurred in part because of advertising and publicity by companies competing for market share by the activity of consumer information and advocacy groups.

 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

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