Management Salt: What is going to disrupt your industry tomorrow?

Do you. know what is going to disrupt your industry tomorrow? Not day after tomorrow – but tomorrow.

How can you find out what is going to disrupt your industry?

How come you don’t know?

The problem might be that you are successful and are busy with your Vision and Goals and Ambitions.

Or the problem is that you are struggling to survive and make both ends meet and you don’t have much time to reflect on the long term trends.

In either case, what’s missing is LISTENING.

Is your organization listening to the future that wants to emerge or is too preoccupied ?

Are your leaders trained to LISTEN? or are they champions of speaking and selective listening?

Are your front line staff and the all the employees and associates trained to LISTEN ? or are they surviving the hierarchy and carrying on carrying on; going through the motions, making the right noises not really up for some creative destruction?

What is the LISTENING we are talking about?

Level 1 Listening: Default Listening: Habitual Listening: Listening through Opinions and Judgements.

Output of Level 1 Listening: Reinforcing Opinion and Judgement

Enemy that keeps you stuck in level listening: Illusion called ‘I am Listening’.

Level 2 Listening: Factual Listening: Open Mind: Discovering new data (disconfirming data)

Output of Level 2 Listening: New information, which forces one to question the current assumptions.

Enemy of Level 2 Listening: Voice of Judgment

Access to develop Level 2 Listening: Develop Curiosity

Level 3 Listening: Empathic Listening: Open Heart: Seeing from Other’s eyes

Output of Level 3 Listening: Strong emotional connect with other person.

Enemy of Level 3 Listening: Voice of Cynicism

Access to develop Level 3 Listening: Operate with Compassion

Level 4 Listening: Generative Listening: Open will: Listening to the future that wants to emerge

Output of Level 4 Listening: New Possibilities and New Realms

Enemy of Level 4 Listening: Voice of Fear

Access to develop Level 4 Listening: Operating with Courage

This is the foundational competency for leaders and everyone in the organization to make your organization future ready, being able to hear, sense and connect with the future that wants to emerge and create your business in sync with that future. Otherwise the future will still come and you get DISRUPTED.

4 Levels of Listening by Dr. Otto Scharmer

If you organization masters deep listening at all levels with internal and external stakeholders including employees,associates, customers, users, industry professionals, cross industry etc., – you could create a core competency of sensing the emerging future and capture the opportunity and ride the wave to new level of success.

Ofcourse, it is not a one time phenomenon – but an ongoing game like the waves in the ocean. You sense the wave and you sense the sea… moment by moment – forever.

Happy Listening. Happy Sensing. Ride the wave of the future emerging instead of getting DISRUPTED!

Management Salt: Is it really a department problem?

In our consulting conversations, we find this situation many times.

Recently we were working with a CEO and his team. One day over dinner, we asked him about the various problems his company is dealing with. He said that his Head of Customer Service had a problem in delivering on time and while he and others are trying to help her, it is not working out.

Another business owner was sharing that her Sales Head was not able to meet the targets for the last 2 months and that has affected the whole years performance.

Another one complained that their process is complex and that they are late in giving their quotations to potential clients at least 40% of the time.

The real question is “Whose problem is it?”

Unfortunately, many more companies, than one would expect, operate from it is that concerned departments problem.

When we work with the top management to explore the source of the problems, the impact on the problems and how the problem shows up inside of their Vision and Intention – all of a sudden their relationship with the problem changes.

So, Are you dealing with a department level problem or is it something else?

Ego Vs Eco shows up as Silo Thinking in Corporates

Management Salt: Is your culture dumbing the organization?

Fields of Conversation from Theory U by MIT Prof. Dr. Otto Scharmer

“Culture eats Employee Intelligence for breakfast.”

This can be new twist to the old quote “Culture eats Strategy for breakfast.”

The culture of an organization can be identified through the conversational field present in the organization.

Unfortunately a good chunk of organizations have a TALK NICE field of conversation, where in people tend to speak what others want to hear, specially what the seniors/powerful people want to hear; not rocking the boat, not addressing the difficult conversations powerfully enough.

This is the cancer of an organization. It causes the following:

  1. People progressively stop sharing their thoughts which are different than or at a tangent with the thought process of the senior.
  2. People reduce addressing of issues and problems
  3. People tend to reduce their engagement and ownership
  4. And there is no real motivation to do some rigorous thinking – given that ultimately I have just agree with the senior manager.

Overall people reduce sharing their real thoughts, they reduce their listening and drastically reduce the conscious mindful thinking.

Do you see this pattern in organizations and teams around you?

Manoj Onkar, MANAGEMENT INNOVATIONS, manoj@managementinnovations.co.in, 91-9106456275

MANAGEMENT SALT: Department Vs Company: Are you married to your department?

People join companies but get married to their departments.

All people who get married to their departments have a risk of becoming a problem for the company.

Departments have no real existence except for work distribution.

There are no successful departments in failed companies. Not really.

The mess that companies face just because people start identifying themselves as part of a department or SBU or a function would have been a good comedy film if it were not for the disastrous impact they have on the culture and performance of the organization.

The resultant politics is all about the benefit of some people at the cost of the majority.

Unfortunately, many well – meaning, good intention people get stuck into this blindspot.

Even some CEOs and top management encourage departmental thinking initially to manage work and control, but realize it when it is quite late that they have built a monster that will destroy their creation.

Wishing you all to get married to the company, better still – to the purpose of the company.

If you want to transform organization culture you may connect with Manoj Onkar, MANAGEMENT INNOVATIONS – manoj@managementinnovations.co.in, 91-9106456275

Healthcare 4.0: From Pathogenesis to Salutogenesis

Realizing that only 20% of health depends on the provision of healthcare services while 60% depends on social, environmental and behavioural factors, one needs to shift the focus from Pathogenesis: Treating the symptoms of illness, to Salutogenesis: Strengthening the social determinants of health and well-being in communities.

Main stream health organizations have transformed from:

OS 1.0: Traditional input-centric operations, revolving around doctors and healthcare insititutions, to

OS 2.0: Output-centric, revolving around evidence based, standards based, and science-centric ways of operating, to

OS 3.0: Patient-Centric experiences for organizing more seamless and innovative ways of providing healthcare services, to

OS 4.0: Strengthening the sources of health and well being (Salutogenesis)

This write up is based on the book – The Essentials of Theory U by MIT Prof. Dr. Otto Scharmer

Innovating from the Future – Part 5: Co-Evolving: Grow Innovation Eco Systems

The movement of co-shaping focuses on scaling the new while growing and evolving innovations Eco-systems for collective impact.

The problem with today’s societal eco-systems is the broken feedback loop between the parts and the whole. The essence of consciousness-based systems thinking like Theory U, is to relink the parts and the whole buy making the system sense and see itself – by closing the feedback loop between collective impact and shared awareness.

It is why innovation labs are working; it is why their initiatives have been able to succeed. But what about the larger eco-systems in which they and all of us operate?

That is where these new innovation infrastructures for making the system sense and see itself are largely missing. The lack of these infrastructures is one of the biggest barriers to societal innovation today.

This is important because we are in the midst of seeing the birth of a fourth co-ordination mechanism. The traditional mechanisms that co-ordinate our social and economic systems i.e. hierarchies, markets and interest group negotiations are not able to provide the governance mechanism required today. Therefor the fourth co-ordination mechanism is critical: acting from shared awareness – acting from seeing the whole.

The development of that collective capacity requires cultivation, practice and enabling infrastructure. That is what Co-Evolving is all about.

Outcomes of Co-Evolving:

  1. Reviewing prototype initiatives
  2. Sharing key learnings
  3. Deciding which prototypes/ideas to advance to the pilot phase
  4. Widening the focus from prototype to evolving the eco-system as whole
  5. Infrastructures that allow the eco-system to see itself
  6. A set of bottlenecks that, if removed, allowed the new to go to scale.
  7. Newly formed generative partnerships and alliances for scaling the new
  8. A new narrative that links the work with societal or civilizational renewal

Principles:

  1. Creating Enabling Infrastructures that allow the system to sense and see itself.
  2. Create Massive Capacity-Building mechanisms
  3. Labs and Platforms for Cultivating the Social Soil

Next write up: 24 Principles of Large Scale Leadership and Change Management Interventions

This write up is based on Theory U by MIT Prof. Dr. Otto Scharmer

Leadership Rule: ENERGY follows ATTENTION

The way I pay attention shapes how the social reality around me unfolds.

I attend (this way), therefore it emerges(that way).

Energy follows attention.

Wherever you put your attention as a leader, as an innovator, as a change maker, or as a parent, that is where the energy of the system around you will go- including your own energy.

We need to cultivate and focus our attention.

We all live in a culture where technologies and multi tasking inhibit our capacity to sustain focused attention.

The biggest enemy of our capacity to sustain attention is of course our smartphones.

Energy follows attention means that the key to great leadership and breakthrough innovation lies in our capacity for sustained attention.

We have to focus on not only on the what- what we pay attention to, but even more son on the source: the place from which our attention originates.

There are 4 different types of listening, each of which operates from a different source.

  1. Habitual Listening: From my past experiences.
  2. Factual Listening: From my Open Mind
  3. Empathic Listening: From my Open Heart
  4. Generative Listening:From my Open Will

If the essence of leadership lies in our ability to shift the inner place from which we operate, then this means that we need to develop the collective capacity to operate from all four types of listening as required by the circumstances.

How do we develop this capacity to operate from all four types of listening?

Practicing every day.

  1. Downloading: Whenever you sit in a meeting in which everything that happens confirms what you expected, then you are downloading. Downloading is neither good or bad. It may be appropriate in one situation but not in another. It is just one type of listening. But if it is the only way you listen, then you are headed for trouble.
  2. Factual Listening: Moving from downloading to factual listening is quite doable: Just pay attention to what is most surprising, most unexpected, or most interesting. Cultivate your curiosity and pay attention to everything that deviates from your earlier expectations (i.e. to dis-confirming data). Capture these observations in a journal to ensure that you don’t lose them and the habit becomes stronger.
  3. Empathic Listening: Moving from factual to empathic listening requires you to step into the perspective of another person. Taking this step requires you to love the other person to activate the intelligence of the heart. Love begins by accepting people the way they are and the way they are not. You could also find things to appreciate about them. Get interested in them.
  4. Generative Listening: Moving from empathic to generative listening is the most challenging. It is something that you cannot force. You can create conditions for generative listening. The most important intervention at this level is : DO NOTHING. Do not intervene. Do not disengage. Just STAY WITH and hold the space for what wants to emerge.

Like a flame when applied to metal, nothing happens. But if you keep the flame ON for a while, the metal begins to change from solid to liquid. Similarly, as you continue to apply deep listening, over time the conversation will drop to a deeper level, to a different state. That is the leadership expected from all of us.

This write up is based on Theory U by MIT Prof. Dr. Otto Scharmer

Presencing Vs Absencing : Creation Vs Destruction — The Leadership Challenge

There is fair amount of PRESENCING in the world; the sensing and actualizing of our highest future potential. But there is much more ABSENCING also happening on the planet right now.

In the world of Absencing the three enemies of Voice of Judgement, Voice of Cynicism and Voice of Fear show up as:

IGNORANCE

HATE

FEAR

IGNORANCE: The closing of the mind. (Stuck in One Truth).

HATE: The closing of the heart (Stuck in One Us Vs. Them)

FEAR: The closing of the will ( Stuck in One Will)

What happens to a social system that operates on these principles?

It creates an architecture of separation by building walls. It facilitates a disconnect (denying, de-sensing) form the world around us, from the world that is emerging (absencing), which results in blaming others (an inability to reflect) and destruction ( of trust, relationships, nature and self).

This cycle of absencing is depicted in the upper half of the picture above.

The cycle of Presencing shown in the lower half is based on:

CURIOSITY : The opening of the mind.

COMPASSION: The opening of the heart

CURIOSITY: The opening of the will.

Social systems that operate on these principles enact architectures of connection that tear down the walls of separation.

SOCIAL FIELDS:

The cycle of absencing and the cycle of presencing denote different social fields. The cycle of absencing represents a field of destruction and social coldness. The cycle of presencing represents a field of co-creation and social warmth.

Each field tends to be self -reinforcing. E.g.: Once you are inside a cycle of absencing, inside a social dynamic of destruction, it is very hard to escape it.

The job of the leadership team is to keep moving the system from the default pull of absencing to the world of presencing.

The future of the organization and the world depends on it.

This writeup is based on Theory U by MIT Prof. Dr. Otto Scharmer.

Theory U Leadership: Cultivate the Social Field of the Organization or Society that you want to transform

Adapted from the book ‘The Essentials of Theory U’ by MIT Prof. Dr. Otto Scharmer.

Theory U makes a distinction between the different ways that action and attention come into the world. I pay attention this way, therefore it emerges that way. Or as the late CEO of Hanover Insurance, Bill O’Brien puts it: The Success of an intervention depends on the interior condition of the intervener.

In case of a farm, the field has two dimensions; one that is visible, what’s growing above the surface; and one that is invisible, what’s beneath the surface – that is, the quality of soil.

The same distinction applies to social fields. We can see what people do, the practical outcomes that they accomplish in the visible realm. But we rarely pay attention to the deeper root condition: the source and interior condition from which we operate.

Theory U draws our attention to that blind spot – to the invisible source dimension of the social field, to the quality of relationships that we have to each other, to the system, and to ourselves.

There are 4 different ways(or sources from) that action and attention come into the world. They arise from a quality of awareness that is

  1. Habitual
  2. Ego-Systemic
  3. Empathic-relational
  4. Generative Eco-Systemic

The essence of leadership is to become aware of our blind spots (these interior conditions or sources) and then to shift the inner place from which we operate as required by the situations we face.

That means that our job as leaders and change makers is to Cultivate the Soil of the Social Field. The social field consists of the relationships among individuals,groups and systems that give rise to patterns of thinking, conversing, and organizing, which in turn produce practice results.

Social fields are like social systems-but they are seen from within, form their interior condition.

To shift form a social system perspective to a social field perspective, we have to become aware of our blind spot, the source level from which our attention and our actions originate. That source level fundamentally affects the quality of leading, learning and listening.

The problem with leadership today is that most people think of it as being made up of individuals, with one person at the top. But if we see leadership as the capacity of a system to co-sense and co-shape the future, then we realize that all leadership is distributed – it needs to include everyone.

To develop collective capacity, everyone must act as a steward for the larger eco-system.

To do that in a more reliable, distributed, and intentional way, we need:

  1. A social grammar: a language
  2. A social technology: methods and tools
  3. And a new narrative of social change

Theory U resolves around a core process of co-sensing and co-shaping emerging future possibilities. But is much more than that.

Some of the leadership capacities that are at the hear of the U method include:

  • Suspension and Wonder: Only in the suspension of judgment we can open ourselves up to wonder. Wonder is about noticing that there is a world beyond our patterns of downloading.
  • Co-Sensing: You must go to places of most potential yourself because it is in these connections that the seeds of the future come into the world. Connect with these places with your mind and heart wide open.
  • The Power of Intention: The power of ‘intention’ is key. In all presencing work, the deeper intention is the opposite of corporate indoctrination. It is about increasing, not decreasing, your range of possibilities. It is about strengthening your sources of self in a world that otherwise tends to tear us apart. It is about making you aware of your own sources of curiosity, compassion and courage.
  • Co-creating: Explore the future by doing, by building small landing strips for the future that wants to emerge.
  • Container building: Creating new holding spaces that activate the generative social field.

The problem with our current societal eco-systems is the broken feedback loop between the parts and the whole.

Theory U offers a method for relinking the parts and the whole by making it possible for the system to sense and see itself. When that happens, the collective consciousness begins to shift from ego-system awareness to eco-system awareness – from a silo view to a systems view.

ENERGY follows ATTENTION

Wherever we put our attention as leader, educator, parent etc., that is where the energy of the team will go. The moment we see the quality of attention shifting from ego to eco, from me to we, that is when the deeper conditions of the field open up, when the generative social field is being activated.

Background of Theory U – Transformation of Business, Society and Self

Inputs from the book: The Essentials of Theory U by MIT Prof. Dr. Scharmer

Theory U blends systems thinking, innovation, and leading – change from the view point of an evolving human consciousness.

Drawing on the MIT tradition of action research and learning by doing, Theory U has evolved over 2 decades of experimentation and refinement.

Theory U comprises 3 key elements:

  1. A framework for seeing the blindspot of leadership and systems change.
  2. A method for implementing awareness-based change:process, principles, practices.
  3. A new narrative for evolutionary societal change:updating our mental and institutional operating systems (OS) in all of society’s sectors.

Theory U integrates these methods and lineages for effecting change:

  • Actions research and organizational learning in the tradition of Peter Senge, Ed Schein, Donald Schon, Chris Argyris and Kurt Lewin.
  • Design thinking in the tradition of Tim Brown and Dave Kelly
  • Mindfulnes, cognition science, and phenomenology in the tradition of Francisco Varela, Jon Kabat-Zinn, Tanja Singer, Arthur Zajonc and David Bohm
  • Civil Society movements in he tradition of Martin Luther King Jr., Nelson Mandela, Mahatma Gandhi and millions of others who are mobilizing change in their local contexts.

Strategy Formulation: BCG Growth-Share Matrix Model

BCG Growth-Share Matrix:

The Boston Consulting Group, a leading consulting firm, developed and popularized a portfoilo analysis tools that helps managers develop organizational strategy based on market share of businesses and the growth of markets in which businesses exist.

The 1st step in using this model is identifying the organization’s strategic business units (SBUs). A Strategic business Unit is a significant organization segment that is analysed to develop organizational strategy aimed at generating future business or revenue.

Exactly what constitutes as SBU varies from company to company. In bigger organizations, and SBU could be a company division, a single product or a complete Product Line.

In smaller organizations, it might be the entire company.

Eventhough they vary drastically in form each SBU has the following characteristics:

  1. It is a single business or collection of related businesses.
  2. It has its own competitors.
  3. It has a manager who is accountable for its operation.
  4. It is an area that can be independently planned for within the organization.

After identifying the SBUs, the next step is to categorize each SBU within one of the 4 Matrix Quadrants:

  1. STARS – Star SBUs have a high share of a high growth market and typically need large amounts of cash to support their rapid and significant growth. Stars also generate large amounts of cash for the organization and are usually segments in which management can make additional investments and earn attractive returns.
  2. CASH COWS: SBUs that are Cash Cows have a large share of a market that is growing only slightly. Naturally, these SBUs provide the organization with large amounts of Cash, but since their market is not growing significantly, the cash is generally used to meet the financial demands of the organization in other areas, such as the expansion of a STAR SBU.
  3. QUESTION MARKS: These category of SBUs have a small share of a high growth market. These are “question marks” because it is uncertain whether management should invest more cash in them to gain a larger share of the market or deemphasize or eliminate them. Management will choose the 1st option when it believes it can turn the question mark into a star, and the 2nd option when it thinks that future investments would be fruitless.
  4. DOGS : SBUs that are dogs have a relatively small share of a low-growth market. They may barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs. These are the SBUs which are likely to be shortlisted for deemphasize or elimination.

PITFALLS of the BCG Growth Matrix Model:

The matrix does not consider factors like:

  • Various types of Risk associated with product development
  • Threats that inflation and other economic conditions can create in the future.
  • Social,Political and Ecological Pressures.

A LEARNING ORGANIZATION

A LEARNING ORGANIZATION is an organization that does well in creating, acquiring and transferring knowledge, and in modifying behaviour to reflect the new knowledge.

Learning organizations emphasize systematic problem solving,experimenting with new ideas, learning form experience and past history, learning from the experience of others, and transferring knowledge rapidly throughout the organization.

According to Peter Senge, the 5 features of a learning organization are:

  1.  SYSTEMS THINKING: Every organization member understands her own job and how the job fits together to provide final products to the customer.                                                        
  2. SHARED VISION: All organization members have a common view of the purpose of the organization and a sincere commitment to accomplish the purpose.                                                       
  3. CHALLENGING OF MENTAL MODELS: Organization members routinely challenge the way business is done and the thought processes people use to solve the organizational Problems.                 
  4. TEAM LEARNING: Organization members work together, develop solutions to new problems together, and apply the solutions together. Working as teams rather than individuals will help organizations gather collective force to achieve organizational goals.                                                                                         
  5. PERSONAL MASTERY: All organization members are committed to gaining a deep and rich understanding of their work. 

Consumer Decision Making & Relationship Marketing

The Consumer’s decision to purchase or not to purchase a product or service is an important moment for most marketers. It can signify whether a marketing strategy has been successful or not. Therefore, marketing people are interested in the consumer’s decision making process.

For a consumer to make a decision, more than one alternative must be available, including the alternative called making a decision to not buy or not buy now.

The various models of 

  1. Consumers View
  2. Passive View
  3. Cognitive View
  4. Emotional View

depict consumers and their decision making processes in distinctly different ways.

An overview consumer decision making model ties together the psychologist, social,and cultural concepts into easily understood network. This decision model has 3 sets of variables: input variables, process variables and output variables.

Input variables that affect the decision – making process include commercial marketing efforts, as well as non commercial influences from the customer’s sociocultural environment. The decision process variables are influenced by the consumer’s psychological field, including the evoked set or the brands in a particular product category considered in making a purchase choice.

The psychological field influences the consumer’s recognition of a need, pre purchase search for information and evaluation of alternatives.

The output phase of the model includes the actual purchase (either trial or repeat purchase) and post purchase evaluation. Both pre purchase and post purchase evaluation feeds back in the form of experience into the consumer’s psychological field and serves to influence future decision making process.

GIFTING:

The process of gift exchange is an important part of consumer behaviour. 

Various gift giving and gift receiving relationships are captured by the following 5 specific categories in the gifting classification scheme:

  1. Intergroup gifting: A group gives a gift to another group.
  2. Intercategory gifting: An individual gives a gift to a group or a group gives a gift to an individual.
  3. Intragroup gifting: A group gives a gift to itself or its members.
  4. InterPersonal gifting: An individual gives a gift to another individual
  5. Intrapersonal gifting: A Self Gift.

Consumer behaviour is not must making a purchase, it also includes the full range of experiences associated with using products or services. It includes the sense of pleasure and satisfaction derived from possessing or collecting “things”. The outputs of consumption are the changes in feelings,moods, attitudes, reinforcement of lifestyles, an enhanced sense of self; satisfaction of a consumer related need; belonging to groups; and expressing and entertaining oneself.

Among other things, consuming includes the simple utility of using a Superior product, the stress reduction of a vacation, the sense of having a “sacred” possession, and the pleasures of a hobby or a collection. Some possessions serve to assist consumers in their effort to create a personal meaning and to maintain a sense of the past.

Relationship Marketing impacts consumer’s decisions and their consumption satisfaction. Firms establish loyalty programs to foster usage loyalty and a commitment to continued usage of their products and services.

Relationship marketing is all about buildign trust between the firm and its customers and keeping promises made to the customers. Therefore the focus is always on developing long term bonds with customers by making them fee special and by providing them with personalized services.

How is your relationship marketing doing?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Consumer Behaviour, Consumer Influence and the Process of Diffusion

What is Opinion Leadership?

Opinion Leadership is the process by which the opinion leader informally influences the actions or attitudes of others, who may be opinion seekers or merely opinion recipients. Opinion receivers perceive the opinion leader as a highly credible, objective source of product information who can help reduce their search and analysis time and percieved risk.

Opinion leaders are motivated to give information or advice to others, in part doing so enhances their own status and self image and because such advice tends to reduce any post purchase dissonance that they may have.Other motives include product involvement, message involvement or any other involvement.

Market researchers identify opinion leaders by such methods as self designation, key informants, the sociometric method and the objective method.

Studies of opinion leadership indicate that this phenomenon tends to be product category specific, generally one of their interest. An opinion leader of one product range can be an opinion receiver for another product category.

Generally, opinion leaders are gregarious, self confident, innovative people who like to talk. Additionally, they may feel differentiated from others and choose to act differently (or public individuation).

They acquire information about their areas of interest through avid readership of special interest magazines and ezines and by means of new product trials.

Their interests may often overlap into adjacent areas and thus their opinion leadership may also extend into those areas.

Who is a market maven ?

The market maven is an intense case of a opinion leader kind of person. These consumers possess a wide range of information about many different types of products, retail outlets, and other dimensions of markets.

They both initiative discussions with other consumers and respond to requests for market information over a wide range of products and services. 

Market mavens are also distinguished from other opinion leaders because their influence stems not so much from product experience but from a more general knowledge or market expertise that leads them to an early awareness of a wide array of new products and services.

The opinion leadership process usually take place among friends, neighbours and work associates who have frequent physical proximity and thus have ample opportunity to hold informal product related conversations. These conversations usually occur naturally in the context of the product-category usage.

The two – step flow of communication theory highlights the role of interpersonal influence in the transmission of information from the mass media to the populations at large. This theory provides the foundation for a revised multi step flow of communication model, which takes into account the fact that information and influence often are 2 way processes and that the opinion leaders both influence and are influenced by opinion receivers.

It is important for the marketers to segment their audiences into opinion leaders and opinion receivers for their respective product categories. When marketers can direct their promotional efforts to the more influential segments of these markets, these opinion leaders will transmit the information to those who seek product advice.

Marketers try to simulate and stimulate opinion leadership. They have also found that they can create opinion leaders for their products by taking socially involved or influential people and deliberately increasing their enthusiasm for a product category.

The diffusion process and the adoption process are 2 closely related concepts concerned with the acceptance of new products by customers.

The diffusion process is a macro process that focuses on the spread of an innovation from its source to the consuming public.

The adoption process is a micro process that examines the stages through which an individual consumer passes when making a decision to accept or reject a new product.

The definition of the term innovation can be

1. Firm oriented(new to the firm),

2. Product oriented(a continuous innovation, a dynamically continuous innovation, or  A discontinuous innovation),

3. Market oriented(how long the product has been on the market or an arbitrary percentage of the potential target market that has purchased it), or

4. Consumer oriented (new to the customer).

Market-oriented definitions of innovation are most useful to consumer researchers in the study of the diffusion and adoption of new products.

Five Product Characteristics influence the consumers acceptance of a new product:

 

  1. Relative Advantage
  2. Compatibility
  3. Complexity
  4. Trialability
  5. Observability

 

Diffusion researchers are concerned with 2 aspects of communication – the channels through which word about a new product or service is spread to the public and the types of messages that influence the adoption or rejection of new products or services.

Diffusion is always examined in the context of a specific social system, such as a target market, a community, a region or even a nation.

Time is an integral consideration in the diffusion process. Researchers are concerned with the amount of purchase time required for an individual customer to adopt or reject a new product/service, with the rate of adoptions and with the identification of sequential adopters.

The 5 adopter categories are innovators, early adopters, early majority, late majority and laggards.

Marketing Strategists try to control the rate of adoption through their new product pricing policies. Companies who wish to penetrate the market to achieve market leaderships try to acquire wide adoption as quickly as possible by using low prices. Those who wish to recoup their developmental costs quickly use a skimming pricing policy but lengthen the adoption process.

The traditional adoption process model describes 5 stages through which an individual consumer passes to arrive at the decision to adopt or reject a new product:

  1. Awareness, 
  2. Interest,
  3. Evaluation
  4. Trial
  5. Adoption

To make it more realistic, an enhanced model is recommended as one that considers the possibility of a pre existing need or problem, the likelihood that some form of evaluation might occur through the entire process, and that even after adoption there will be post adoption or purchase evaluation that might either strengthen the commitment or alternatively lead to discontinuation of the product/service.

Companies marketing new products are vitally concerned with identifying the consumer innovator so that they may direct their promotional campaigns to the people who are most like to try new products, adopts them and influences others.

Consumer Research has identified a number of consumer related characteristics, including product interest, opinion leadership, personality factors, purchase and consumption traits, media habits, social characteristics, and demographic variables that distinguish consumer innovators from later adopters. These serve as useful variables in the segmentation of markets for new product introductions.

Who are the innovators and early adopters for your products and services? How have you planned your diffusion strategy for the current products and the new products?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

PRICING STRATEGY IN COMPETITIVE TIMES

Pricing has lot to do with the target audience that you are positioning your product and service offerings for?

Do you want to target the uber rich and super rich or you want to target the rich and the upper middle class?

These competitive times along with the recessionary pressures will force most of the organizations to relook at their pricing strategy?

What should be your strategy? What target market will fulfill the sustainable growth requirements for your organization? 

How would your budgets look with high pricing and low volumes vs little lower pricing or even half pricing and increased volumes?

What Volumes are you expecting at what price point?

What will be the increased sales and marketing costs required based on change of the target market segments and the pricing policy to ensure the successful implementation.

What is the scalability in your production capacity, especially if you are a service organization?

Service offerings may have more restriction on their capacities and hence more restrictions on how much they can play around with their pricing models.

What is your product or service packages? What pricing models are your exploring? What optional target market segments are you considering?

Contact: MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com, manojonkar@gmail.com; 919375970812

STRATEGY FORMULATION TOOLS

After the managers involved in the strategic management process have analyzed the environment and determined organizational direction through the development of a mission statement and organizational objective, they are ready to formulate strategy.

STRATEGY FORMULATION is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing organizational purpose.

Managers formulate strategies that reflect environmental analysis, lead to fulfillment of organizational mission, and result in reaching organizational objectives.

Special tools they can use to assist them in formulating strategies include the following:

  1. CRITICAL QUESTION ANALYSIS
  2. SWOT ANALYSIS
  3. BUSINESS PORTFOLIO ANALYSIS
  4. PORTER’S MODEL FOR INDUSTRY ANALYSIS.

These 4 strategy development tools are related but distinct. Managers should use the tools or combination of tools that seems most appropriate for them and  their organizations.

CRITICAL QUESTION ANALYSIS:

The 4 critical questions to be answered here are:

  1. What are the purposes and objectives of the Organization?
  2. Where is the Organization presently going?
  3. In what kind of environment does the organization now exist?
  4. What can be done to better achieve organizational objectives in the future?

 

SWOT ANALYSIS:

SWOT Analysis is a strategic development tool that matches internal organizational strengths and weaknesses with external opportunities and threats.

SWOT is an acronym for the organization’s Strengths, Weakness, Opportunities and Threats.

It is based on the assumption that if managers carefully review such strengths, weaknesses, opportunities and threats, a useful strategy for ensuring organizational success will become evident to them.

 

BUSINESS PORTFOLIO ANALYSIS:

Business Portfolio Analysis is an organizational strategy formulation technique that is based on the philosophy that Organizations should develop strategy much as they handle investment portfolios.

In the way, in which the sound financial investments should be supported and unsound ones discarded, sound organizational activities should be emphasized and unsound ones deemphasized.

2 Business Portfoilo tools are:

  1. The BCG Growth Share Matrix by Boston Consulting Group.
  2. GE Multifactor Portfolio Matrix by General Electric Company.

BCG Growth-Share Matrix:

The Boston Consulting Group, a leading consulting firm, developed and popularized a portfoilo analysis tools that helps managers develop organizational strategy based on market share of businesses and the growth of markets in which businesses exist.

The 1st step in using this model is identifying the organization’s strategic business units (SBUs). A Strategic business Unit is a significant organization segment that is analysed to develop organizational strategy aimed at generating future business or revenue.

Exactly what constitutes as SBU varies from company to company. In bigger organizations, and SBU could be a company division, a single product or a complete Product Line.

In smaller organizations, it might be the entire company.

Eventhough they vary drastically in form each SBU has the following characteristics:

  1. It is a single business or collection of related businesses.
  2. It has its own competitors.
  3. It has a manager who is accountable for its operation.
  4. It is an area that can be independently planned for within the organization.

After identifying the SBUs, the next step is to categorize each SBU within one of the 4 Matrix Quadrants:

  1. STARS – Star SBUs have a high share of a high growth market and typically need large amounts of cash to support their rapid and significant growth. Stars also generate large amounts of cash for the organization and are usually segments in which management can make additional investments and earn attractive returns.
  2. CASH COWS: SBUs that are Cash Cows have a large share of a market that is growing only slightly. Naturally, these SBUs provide the organization with large amounts of Cash, but since their market is not growing significantly, the cash is generally used to meet the financial demands of the organization in other areas, such as the expansion of a STAR SBU.
  3. QUESTION MARKS: These category of SBUs have a small share of a high growth market. These are “question marks” because it is uncertain whether management should invest more cash in them to gain a larger share of the market or deemphasize or eliminate them. Management will choose the 1st option when it believes it can turn the question mark into a star, and the 2nd option when it thinks that future investments would be fruitless.
  4. DOGS : SBUs that are dogs have a relatively small share of a low-growth market. They may barely support themselves; in some cases, they actually drain off cash resources generated by other SBUs. These are the SBUs which are likely to be shortlisted for deemphasize or elimination.

PITFALLS of the BCG Growth Matrix Model:

The matrix does not consider factors like:

  • Various types of Risk associated with product development
  • Threats that inflation and other economic conditions can create in the future.
  • Social,Political and Ecological Pressures.

 

GE Multifactor Portfolio Matrix:

GE Multifactor Portfolio Matrix is a tools that helps managers develop organizational strategy that is based primarily on market attractiveness and business strengths.

The GE Multifactor Portfolio was deliberately designed to be more complete than the BCG Growth Share Matrix.

Each of the organization’s SBUs are plotted on a 2 dimensional matrix of Industry Attractiveness and Business Strength.

Each of these 2 dimensions are a composite of  a variety of factors that each firm must determine for itself, given its own unique situation.

As examples, Industry Attractiveness might be determined by such factors as:

  • No. of Competitors in the Industry
  • Rate of Industry Growth
  • Weakness of Competitors within an Industry

Business Strengths might be determined by such factors as:

  • Company’s Financial Solid Position
  • Its Good Bargaining Position over Suppliers
  • Its high level of Technology Use.

Specific strategies for a company are implied by where their businesses fall on the matrix.

 

While portfolio models are useful frameworks and reference points, no model is yet designed that will deal with all the various dynamics involved in an organization and an industry and the changing environment. Hence Portfolio models should never be applied in a mechanistic fashion and sound managerial judgement and experience is to be applied alongwith.

 

PORTERS MODEL FOR INDUSTRY ANALYSIS:

Perhaps the best known tool for formulating strategy is the model developed by Michael E. Porter, an internationally acclaimed strategic management expert.

Essentially, Porter’s model outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related.

The model suggests that in order to develop effective organizational strategies, managers must understand and react to those forces within an industry that determine an organization’s level of competitiveness within that industry.

According to these model, competitiveness within an industry is determined by the following factors:

  1. New Entrants or New Companies within the Industry
  2. Substitute Products or Services – for goods or services that the companies within the industry produce/provide.
  3. Supplier’s Ability to control issues like costs of material/ inputs that industry companies use to manufacture their products or provide their services.
  4. Competition level among the firms in the industry.

According to the model, buyers, product substitutes, supplier and potential new companies within an Industry all contribute to the level or rivalry among industry firms.

 
For further support and clarifications contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com

919375970812

ORGANIZATIONAL DIRECTION: MISSION & OBJECTIVES

DETERMINING ORGANIZATION DIRECTION:

Through an interpretation of information gathered during environmental analysis, managers can determine the direction in which an organization should move.

2 important ingredients of organizational direction are Organizational Mission and Organizational Objectives.

DETERMINING ORGANIZATIONAL MISSION:

The most common initial act in establishing organizational direction is determining an organizational mission.

ORGANIZATIONAL MISSION is the purpose for which the Organization exists.

The firms organizational mission reflects such information as what types of products or services it produces, who its customers tend to be, and what important values it holds.

Organizational Mission is a very broad statement of organizational direction and is based on a thorough analysis of information generated through environmental analysis.

DEVELOPING A MISSION STATEMENT:

A MISSION STATEMENT is a written document developed by management, normally based on input by managers as well as non managers, that describes and explains what the mission of an organization actually is.

The mission is expressed in writing to ensure that all organization members will have easy access to it and thoroughly understand exactly what the organization is trying to accomplish.

IMPORTANCE OF ORGANIZATIONAL MISSION:

An organization mission is very important to an organization because it helps management increase the probability that the organization will be successful.

There are several reasons why it does this.

First, the existence of an organizational mission helps management focus human effort in a common direction.

The mission makes explicit the major targets the organization is trying to reach and helps managers keep these targets in mind as they make decisions.

Second, an organizational mission serves as a sound rationale for allocating resources.

A properly developed mission statement gives managers useful guidelines about how resources should be used to best accomplish organizational purpose.

Third, a mission statement helps management define broad but important job areas within an organization and therefore critical jobs that must be accomplished.

RELATION BETWEEN MISSION & OBJECTIVES:

Sound organizational objectives reflect and flow naturally from the purpose of the organization.

The organization’s purpose is expressed in its mission statement.

Thus organizational objectives must reflect and flow naturally from an organizational mission that, in turn, was designed to reflect and flow naturally from the results of an environmental analysis.

STRATEGY PLANNING – ENVIRONMENTAL ANALYSIS

The 1st step of the strategy management process is environmental analysis. An organization can only be successful if it is appropriately matched to its environment.

ENVIRONMENT ANALYSIS is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations.

MANAGERS commonly perform environmental analyses to help them understand what is happening both inside and outside their organizations and to increase the probability that the organizational strategies they develop will appropriately reflect the organizational environment.

In order to perform an environmental analysis efficiently and effectively, a manager must thoroughly understand how organizational environments are structured.

For purposes of environmental analysis, the environment of an organization is generally divided into 3 distinct levels:

  1. General Environment
  2. Operating Environment
  3. Internal Environment

Managers must be well aware of these 3 organizational environmental levels, understand how each level affects organizational performance and then formulate organizational strategies in response to this understanding.

THE GENERAL ENVIRONMENT:

The components normally considered part of the general environment are:

  • Economic
  • Social: Including Demographics and Social Values
  • Political
  • Legal
  • Technological

THE OPERATING ENVIRONMENT:

The operating Environment includes various components like:

  • Customer
  • Competition
  • Labour
  • Supplier
  • International Issues.

THE INTERNAL ENVIRONMENT:

The level of an organization’s environment that exists inside the organization and normally has immediate and specific implications for managing the organization is the internal environment.

It includes marketing, finance and accounting,planning,organizing, influencing and controlling within the organization.

FUNDAMENTALS OF STRATEGIC PLANNING

STRATEGIC PLANNING:

Strategic Planning is  the long range planning that focuses on the organization as a whole. In doing strategic planning, managers consider the organization as a total unit and ask themselves what must be done in the long term( 3 to 5 years) to attain organizational goals.

In strategic planning, managers try to determine what their organization should do to be successful 3 – 5 years from now. The most successful managers tend to be those who are capable of encouraging innovative strategic thinking within their organization.

STRATEGY:

Strategy is defined as a broad and general plan developed to reach long term objectives.Organizational strategy can and generally does focus on many different organizational areas such as Finance, Sales,Marketing,Production, Research and Development and PR.

It gives broad direction to the organization.

Strategy is actually the end result of strategic planning. Although larger organizations tend to be more precise in  developing organizational strategy than smaller organization, every organization must have a strategy.

For a strategy to be worthwhile, it must be consistent with organizational objectives, which, in turn, must be consistent with organizational purpose.

STRATEGY MANAGEMENT:

Strategy management is the process of ensuring that an organization possesses and benefits from the use of an appropriate organization strategy. An appropriate strategy is one best suited to the needs of an organization at a particular time.

The strategy management process is generally thought to consist of 5 sequential and continuing steps:

  1. Environmental Analysis
  2. Establishment of an Organizational Direction.
  3. Strategy Formulation
  4. Strategy Implementation
  5. Strategic Control

PROCESSES FOR MAKING GROUP DECISIONS

3 Famous Processes for Group level Decision Making are:

  1. Brainstorming
  2. Nominal Group Technique
  3. Delphi Technique

BRAINSTORMING:

Brainstorming is a group decision making process in which negative feedback on any suggested alternative by any group member is forbidden until all members have presented alternatives that they perceive as valuable.

Brainstorming is carefully designed to encourage all group members to contribute as many viable decision alternatives as they can think of.

Its premise is that if the evaluation of alternatives starts before all possible alternatives have been offered, valuable alternatives may be overlooked.

During brainstorming, group members are encouraged to state their ideas, no matter how wild they may seem, while an appointed group member records all ideas for discussion.

NOMINAL GROUP TECHNIQUE:

The nominal group technique is another useful process for helping groups make decisions. This process is designed to ensure that each group member has equal participation in making the group decisions.

It involves the following steps:

  1. STEP 1: Each group member writes down individual ideas on the decision or problem being discussed.
  2. STEP 2: Each member presents individual ideas orally. The ideas are usually written on a board for all other members to see and refer to.
  3. STEP 3: After all members present their ideas, the entire group discussed these ideas simultaneously. Discussion tends to be unstructured and spontaneous.
  4. STEP 4: When discussion is completed, a secret ballot is taken to allow members to support their favourite ideas without fear. The idea receiving the most votes is adopted and implemented.

DELPHI TECHNIQUE:

The Delphi technique involves circulating questionnaires on a specific problem among group members, sharing the questionnaire results with them, and then continuing to recirculate and refine individual responses until a consensus regarding  the problem is reached.

In contrast to the nominal group technique or brainstorming, the Delphi technique does not have group members meet face to face. The formal steps followed in the Delphi Technique are:

  1. STEP 1: A problem is identified.
  2. STEP 2: Group members are asked to offer solutions to the problem by  providing anonymous responses to a carefully designed questionnaires.
  3. STEP 3: Responses of all group members are compiled and sent out to all group members.
  4. STEP 4: Individual group members are asked to generate a new individual solution to the problem after they have studied the individual responses of all other group members.
  5. STEP 5: Step 3 and 4 are repeated until a consensus problem solutions is reached.

 

Brainstorming offers the advantage of encouraging the expression of as many useful ideas as possible, but the disadvantage of wasting the group’s time on ideas that are wildly impractical.

The nominal group technique, with its secret ballot, offers a structure in which individuals can support or reject an idea without fear of recrimination. Its disadvantage is that there is no way of knowing why individuals voted the way they did.

The advantage of the Delhi Technique is that ideas can be gathered from group members who are too geographically separated or busy to meet face to face.Its disadvantage is that members are unable to ask questions of one another.

Managers must carefully weigh the advantages and disadvantages of these 3 group decision making tools and adopt the one or some combination of the three – that best suits their unique organizational circumstances.

TYPES OF DECISIONS & DECISION MAKING PROCESS

A decision is a choice made between 2 or more available alternatives.

Decision Making is the process of choosing the best alternative for reaching objectives.

Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.

Some decisions affect a large number of organization members, cost a great deal of  money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.

Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.

TYPES OF DECISIONS:

PROGRAMMED DECISIONS

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.

NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.

5 ELEMENTS  OF THE DECISION SITUATION:

  1. The Decision Makers
  2. Goals to be served
  3. Relevant Alternatives
  4. Ordering of Alternatives
  5. Choice of Alternatives

DECISION MAKING PROCESS:

Decision making steps this model depicts are as follows:

  1. Identify an existing problem                                                                      
  2. List possible alternatives for solving the problem                       
  3. Select the most beneficial of these alternatives.                           
  4. Implement the selected alternative.                                                        
  5. Gather feedback to find out if the implemented alternative is solving the identified problem.

THE PLANNER: Qualification and Evaluation

The planner is probably the most important input in the planning subsystem. This individual combines all other inputs and influences the subsystem process so that its output is effective organizational plans.

The planner is responsible not only for developing plans but also for advising management on what actions should be taken to implement those plans.

Regardless of who actually does the planning or what organization the planning is being done in, the qualification, duties, and evaluations of the planner are all very important considerations for an effective planning subsystem.

QUALIFICATIONS OF PLANNERS:

Planners should have four primary qualifications:

  1. They should have considerable practical experience within their organization. Preferably, they should have been executives in one or more of the organization’s major departments.This experience will help them develop plans that are both practical and tailor made for the organization.                   
  2. Planners should be capable of replacing  any narrow view of the organization they may have acquired while holding other organizational positions with an understanding of the organization as a whole. They must know how all parts of the organization function and interrelate. They must have an abundance of conceptual skills.                                                                     
  3. Planners should have some knowledge of and interest in the social,political, technical and economic trends that could affect the future of the organization. They must be skillful in defining those trends and possess the expertise to determine how the organization should react to the trends to maximize its success. This qualification can be overemphasized.                                             
  4. They should be able to work well with others. Their position will inevitably require them to work closely with several key members of the organization, so its is essential that they possess the personal characteristics necessary to collaborate and advise effectively. The ability to communicate clearly, both orally and in writing, is one of the most important of these characteristics.

EVALUATION CRITERIA FOR PLANNERS:

  1. Organizational Plan is in writing.
  2. Plan is the result of all elements of the management team working together.
  3. Plan defines present and possible future business of the organization.
  4. Plan specifically mentions organizational objectives.
  5. Plan identifies future opportunities and suggests how to take advantage of them.
  6. Plan emphasizes both internal and external environments.
  7. Plan describes the attainment of objectives in operational terms whenever possible.
  8. Plan includes both long and short term recommendations.

Over and above all these, the subjective considerations include how well planners get along with key members of the organization, the amount of organizational loyalty they display and their perceived potential.

MBO – Management by Objectives

MBO – Management by Objectives was popularized mainly through the writings of Peter Drucker.

Some Managers find organizational objectives such an important and fundamental part of management that they use a management approach based exclusively on them.

Although mostly discussed in the context of profit oriented companies, MBO is also a valuable management tool for non profit organizations.

MBO Strategy has 3 basic parts:

  1. All individuals within an organization are assigned a specialized set of objectives that they try to reach during a normal operating period. These objectives are mutually set and agreed upon by individuals and their managers.                                                 
  2. Performance reviews are conducted periodically to determine how close individuals are to attaining their objectives.                    
  3. Rewards are given to individuals on the basis of how close they come to reaching their goals.  

The MBO  process consists of 5 steps:

  1. Review Organizational Objectives: The manager gains a clear understanding of the organization’s overall objectives.                     
  2. Set Worker Objectives: The manager and worker meet to agree on worker objectives to be reached by the end of the normal operating period.                                                                                               
  3.  Monitor Progress:  At intervals during the normal operating period, the manager and worker check to see if the objectives are being reached.                                                                                             
  4. Evaluate Performance: At the end of the normal operating period, the worker’s performance is judged by the extent to which the worker reached the objectives.                                               
  5. Give Rewards: Rewards given to the worker are based on the extent to which the objectives were reached.

CRITICAL SUCCESS FACTORS:

  1. Top Management must be committed to the MBO process and set appropriate objectives for the organization.
  2. Managers and subordinates together must develop and agree on each individuals goals.
  3. Employee performance should be conscientiously evaluated against established objective.
  4. Management must follow through on employee performance evaluations by rewarding employees accordingly.

ADVANTAGES:

  1. MBO programs continually emphasize what should be done in an organization to achieve organizational goals.
  2. MBO process secures employee commitment to attaining organizational goals.

DISADVANTAGES:

  1. One is that the development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work.
  2. Increased Paper Work

GUIDELINES FOR ESTABLISHING OBJECTIVES

In general an organization should have 3 types of Objectives:

  1. Short Term Objectives : Targets to be achieved in 1 year or less.
  2. Intermediate Term Objectives: Targets to be achieved in 1 to 5 years.
  3. Long Term Objectives: Targets to be achieved in 5 to 7 years.

The necessity of predetermining appropriate organizational objectives has led to the  development of a management guidelines called the PRINCIPLE OF OBJECTIVE.

This principle states that  before managers take any action, they should clearly determine, understand and state organizational objectives.

SUB OPTIMIZATION:

Sub optimization is a condition where sub objectives are conflicting ro not directly aimed at accomplishing the overall organizational objective.

GUIDELINES FOR ESTABLISHING OBJECTIVES:

  1. Let the people responsible for attaining the objectives have a voice in setting them.
  2. State Objective as specifically as possible.
  3. Relate objectives to specific actions whenever necessary.
  4. Pinpoint expected results.
  5. Set goals high enough that employees have to strive to meet them, but not so high that employees give up trying to meet them.
  6. Specify when goals are expected to be achieved
  7. Set objectives only in relation to other organizational objectives.
  8. State Objectives clearly and simply.

PLANNING CHARACTERISTICS

4 Aspects of Planning are :

  1. Definition of Planning
  2. Purposes of Planning
  3. Advantages and Potential disadvantages of planning
  4. Primacy of Planning

DEFINING PLANNING:

Planning is the process of determining how the organization can get where it wants to go, and what it will do to accomplish its objectives.

Planning is the systematic development of action porgrams aimed at reaching agreed business objectives by the process of analysing, evaluating, and selecting among the opportunities which are forseen.

PURPOSES OF PLANNING:

The protective purpose of planning is to minimize risk by reducing the uncertainities surrounding business conditions and clarifying the consequences of related management actions.

The affirmative purpose is to increase the degree of organizational success.

The fundamental purpose of planning, however, is to help the organization reach its objectives.

PLANNING: ADVANTAGES & DISADVANTAGES

A vigorous planning program produces many benefits.

First, it helps managers to be future oriented. They are forced to look beyond their everyday problems to project what situations may confront them in the future.

Second, a sound planning porgram enhances decision coordination. No decision should be made today without some idea of how it will affect a decision that might have to be made tomorrow.

The planning function pushes managers to coordinate their decisions.

Third, planning emphasizes organizational objectives. Because organizational objectives are the starting points for planning, managers are continually remind of exactly what their organization is trying to accomplish.

DISADVANTAGES:

The downside is that if the planning function is not well executed,planning can have several disadvatnages for the organization.

e.g.: An overemphasized planning program can take up too much managerial time. Managers must strike an appropriate balance between time spent on planning and time spent on organizing, influencing, and controlling.

PRIMACY OF PLANNING:

Planning is the primary managerial function- the one that precedes and is the absis for the organizing, influencing and controlling functions of managers.

Only after manaers have developed their plans can they determine how they went to structure their organization, place their people and establish organizational controls.

FIRST STEP : PLANNING

SECOND STEPS: ORGANIZING, INFLUENCING, CONTROLLING

RESULTS: ACHIEVING OBJECTIVES

***********************************************************

 

STEPS IN THE PLANNING PROCESS:

The planning process consists of the following 6 steps:

  1. State Organizational Objective
  2. List alternative ways of reaching objectives
  3. Develop premises on which to base each alternative
  4. Choose the best alternative for reaching objectives
  5. Develop plans to pursue the chosen alternative
  6. Put the plans into action.

ORGANIZATIONAL OBJECTIVES:

Organizational objectives are the targets toward which the open management system is directed. Organizational input,process and output all exist to reach organizational objectives.

Properly developed organizational objectives reflect the purpose of the organization.

ORGANIZATIONAL PURPOSE:

Organizational Purpose is what the organization exist to do, given a particular group of customers and customer needs. If an organization is accomplishing its objectives, it is accomplishing its purpose and thereby justifying its reason for existence.

Organizations exist for various purposes and thus have various types of objectives.

Therefore, its objectives are aimed at furnishing this assistance. The primary purpose of a business organization, in contrast, is usually to make a profit.

6 variables in International Systems

IMPORTANT VARIABLES IN THE INTERNATIONAL SYSTEM:

  1. Different National Sovereignties.                                                         
  2. Disparate National Economic Conditions
  3. Different National Values and Institutions
  4. Difference in timing of National Industrial Revolution
  5. Geographical Distance
  6. Different Areas and Population

Diversity Management: Ethnocentrism and other negative dynamics

The changing demographics set in motion certain social dynamics that can interfere with workforce productivity. If an organization is to be successful in diversifying, it must neutralize these dynamics. 

ETHNOCENTRISM:
Our natural tendency is to judge other groups less favourably than our own.
These tendency is the source of ethnocentrism.
Ethnocentrism is the belief that one’s own group, culture,country or customs are superior to others.                                                                                      
PREJUDICE
A prejudice is a preconceived judgement,opinion, or assumption about an issue,behaviour or group of people.                                                    
STEREOTYPE:
Stereotype is a positive or negative assessment of members of a group or their perceived attributes.
It is important for managers to know about these negative dynamics so they can monitor their own perceptions and help their employees view diverse coworkers more accurately.
DISCRIMINATION:
Discrimination is the act of treating an issue, person, or behaviour unjustly or inequitably on the basis of stereotypes and prejudices.
TOKENISM:
Tokenism refers to being one of very few members of your group in the organization.
“Token” employees are given either very high or very low visibility in the organization.
PROMOTING DIVERSITY THROUGH HUDSON INSTITUTE STRATEGIES:
6 major issues:
  1.  Stimulate Balanced World Growth
  2. Accelerate Productivity increases in Service Industries
  3. Maintain the dynamsism of an Aging Workforce.
  4. Reconcile the conflicting needs of women, work and families.
  5. Fully integrate all groups of workers into the economy.
  6. Improve the education and skills of all workers. 

VARIOUS APPROACHES TO MEETING SOCIAL RESPONSIBILITY

Lipson, a desirable and socially responsive approach to meeting social obligations does the following:

  1. Incorporates social goals into the annual planning process.
  2. Seeks comparative industry norms for social programs.
  3. Presents reports to organization members, the board of directors, and stockholders on social responsibility progress.
  4. Experiments with different approaches for measuring social performance.
  5. Attempts to measure the cost of social programs as well as the return on social program investments.

S. Prakash Sethi presents 3 management approaches to meeting social obligations:

  1. Social Obligation Approach: It considers business as having primarily economic purposes and confines social responsibility activity mainly to existing legislation.                            
  2. Social Responsibility Approach: It sees business as having both economic and societal goals.                                                                    
  3. Social Responsive Approach: It considers business as having both societal and economic goals as well as the obligation to anticipate potential social problems and work actively toward preventing their occurrence.

CONVERTING ORGANIZATION POLICIES ON SOCIAL RESPONSIBILITY INTO ACTION:

A policy is a management tool that furnishes broad guidelines for channeling management thinking in specific directions.

To be effective, social responsibility policies must be converted into appropriate action.

PHASE 1: It consists of the recognition by Top Management that the organization has some social obligation. Top Management then must formulate and communicate some policy about the acceptance of this obligation to all organization members.

PHASE 2: It involves staff personnel as well as Top Management. In this phase, top management gathers information related to meeting the social obligation accepted in phase 1. Staff Personnel are generally involved at this point to give advice on technical matters related to meeting the accepted social obligation.

PHASE 3: It involves division management in addition to the organization personnel already involved from the first 2 phases.

During this phase, top management strives to obtain the commitment of organization members to live up to the accepted social obligation and attempts to create realistic expectations about the effects of such a commitment on organizational productivity.

Staff specialists encourage the responses within the organization necessary to meet the accepted social obligation properly; and division management commits resources and modifies existing procedures so that appropriate socially oriented activities can and will be performed within the organization.

OUTCOMES OF SOCIAL RESPONSIBILITY INVOLVEMENT EXPECTED BY EXECUTIVES

POSITIVE OUTCOMES:

  1. Enhanced corporate reputation and goodwill.
  2. Strengthening of the social system in which the corporation functions.
  3. Strengthening of the economic system in which the corporation functions.
  4. Greater Job satisfaction among all employees.
  5. Avoidance of issues with government regulations.
  6. Greater job satisfaction among executives
  7. Increased chances for survival of the firm.
  8. Ability to attract better managerial talent.
  9. Increased long term profitability.
  10. Strengthening of the pluralistic nature of American Society.
  11. Maintaining or gaining Customers
  12. Investor Preference for socially responsible firms
  13. Increased short term profitability

 

NEGATIVE OUTCOMES:

  1. Decreased Short term profitability
  2. Conflict of economic or financial and social goals.
  3. Increased prices for consumers
  4. Conflict in criteria for assessing managerial performance
  5. Disaffection of stock holders.
  6. Decreased Productivity
  7. Decreased Long term profitability
  8. Increased Government Regulation
  9. Weakening of the economic system in which the corporation functions.
  10. Weakening of the social system in which the corporate functions.

 

STAKEHOLDERS:

 

SOCIAL OBLIGATIONS OF THE MANAGERS TO VARIOUS STAKEHOLDERS :

  1. STOCKHOLDERS: To increase the value of the organization.
  2. SUPPLIERS : To deal with them fairly
  3. BANKS & LENDERS: To replay debts
  4. GOVERNMENT AGENCIES: To abide laws.
  5. EMPLOYEES & UNIONS: To provide safe working environment and to negotiate fairly with union representatives.
  6. CONSUMERS: To provide Safe Products
  7. COMPETITORS: To compete fairly and to refrain from restraints of trade.
  8. LOCAL COMMUNITIES & SOCIETY: To avoid business practices that harm the environment.

KEITH DAVIS MODEL OF CORPORATE SOCIAL RESPONSIBILITY

Davis’s model is a list of 5 propositions that describe how and why businesses should adhere to the obligation to take action that protects and improves the welfare of society as well as of the organization:

Proposition 1: SOCIAL RESPONSIBILITY  ARISES FROM SOCIAL POWER.

This proposition is derived from the understanding that a business has significant amount of  influence on and power over various critical issues like Environment, Minority Employment, Neighbourhood Development etc.,

All business in the country primarily determines the various situations like employment,environment and overall atmosphere that the citizens get to live in.

Since business has power and influence over the society, the society can and should hold the businesses responsible for social conditions that result from the exercise of the power.

Proposition 2: BUSINESS SHALL OPERATE AS A 2 WAY OPEN SYSTEM, WITH OPEN RECEIPT OF INPUTS FROM SOCIETY AND OPEN DISCLOSURE OF ITS OPERATIONS TO THE PUBLIC.

Business must be willing to listen to what must be done to sustain or improve social welfare. In turn, the society must be willing to listen to business reports on what is is doing to meet its social responsibilities.

DAVIS suggests that there must be ongoing, honest and open communications between business and society’s representatives if the overall welfare of society’s representatives if the overall welfare of society is to be maintained or improved.

Proposition 3: THE SOCIAL COSTS AND BENEFITS OF AN ACTIVITY, PRODUCT or SERVICE, SHALL BE THOROUGHLY CALCULATED AND CONSIDERED IN DECIDING WHETHER TO PROCEED WITH IT.

The technical feasibility and economic profitability and the shot term and long term consequences of all business activities should be considered before undertaking them.

Proposition 4: THE SOCIAL COSTS RELATED TO EACH ACTIVITY, PRODUCT OR SERVICE SHALL BE PASSED ON TO THE CUSTOMER:

The proposition states that business cannot be expected to completely finance activities that may be socially advantageous but economically disadvantageous. The costs of maintaining socially desirable activities within business should be passed on to consumers through higher prices for the goods or services related to these activities.

Proposition 5: BUSINESS INSTITUTIONS, AS CITIZENS, HAVE THE RESPONSIBILITY TO BECOME INVOLVED IN CERTAIN SOCIAL PROBLEMS THAT ARE OUTSIDE THEIR NORMAL AREAS OF OPERATION: –

If a business possesses the expertise to solve a social problem with which it may not be directly associated, it should be held responsible for helping society solve that problem.

Since the business eventually will reap an increased profit from a generally improved society, businesses should share in the responsibility of all citizenry to generally improve society.

THE SYSTEM APPROACH

The system approach to management is based on general system theory founded by Scientist Ludwig Von Betalanffy.

The main context of this theory is that to be able to fully understand the operations of an entity, the entity must be viewed as a system.

A system is a number of interdependent parts functioning as a whole for some purpose.

The concept of WHOLENESS is very important in general system analysis. The system must be viewed as a whole and modified only through changes in its parts.

L. Thomas Hopkins suggested 6 guidelines for system analysis:

  1. The whole should be the main focus of the analysis. Parts to receive secondary attention.
  2. Integration is the key variable in wholeness analysis. It is defined as the interrelatedness of the many parts within the whole.
  3. Possible modifications in each part should be weighed in relation to possible effects on every other part.
  4. Each part has some role to play so that the whole cam accomplish its purpose.
  5. The nature of the part and its function is determined by its position in the whole.
  6. All analysis starts with the existence of the whole. The parts and their interrelationships should then evolve to best suit the purpose of the whole.

 

THE MANAGEMENT SYSTEM:

The main parts of the management system  are:

  • Organizational Input
  • Organizational Process
  • Organizational Output

The management system is an open system, which interacts with its environment.

The factors which the management system interact with are:

  • Government
  • Suppliers
  • Customers
  • Competitors

Each of these factors represents a potential environment influence that significantly change the future of the organization and thus the management system.

MANAGEMENT SCIENCE

The Scientific Method of problem solving dictates that one should:

  1. Systematically observe the system whose behaviour must be explained to solve the problem.
  2. Use these specific observations and from which consequences of changing the system can be predicted.
  3. Use the model to deduce how the system will behave under conditions that have not been observe but could be observed if the changes were made.
  4. Finally, test the model by performing an experiment on the actual system to see if the effects of changes predicted using the model actually occur when the changes are made.

The OR ( Operations Research) groups proved very successful at using the scientific method to solve the problems.

 

THE CONTINGENCY APPROACH:

The contingency approach to management emphasizes that what managers do in practice depends on, or is contingent upon, a given set of circumstances – a situation.

In essence, this approach emphasizes “if-then” relationships.

“If” this situational variable exists,”then” this is the action a manager probably would take.

In general, the contingency approach attempts to outline the conditions or situations in which various management methods have the best chance of success.                                                                                        

This approach is based on the premise that, although there is probably no one best way to solve a management problem in all organizations, there probably is one best way to solve any given management problem in any one organization.

MAIN CHALLENGES OF USING THE CONTINGENCY APPROACH

  1. Perceiving organizational situations as they actually exist.
  2. Choosing the management tactics best suited to those situations.
  3. Competently implementing those tactics.

The notion of a contingency approach to management is a popular discussion topic for contemporary management thinkers.

THE SYSTEM APPROACH:

The system approach to management is based on general system theory. Ludwign von Bertalanffy as scientist is recognised as the founder of the general system theory.

The main premise of the theory is that to understand fully the operation of an entity, the entity as viewed as a system.

A system is a number of interdependent parts functioning as a whole for some purpose.

HENRI FAYOL’S 14 Principles of Management

Management Principles developed by Henri Fayol: 

  1. DIVISION OF WORK: Work should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.                                                                                                                   
  2. AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.                                                              
  3. DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.                                                                              
  4. UNITY OF COMMAND: Workers should receive orders from only one manager.                                                                                              
  5. UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.                                                                                                        
  6. SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.                                                                                                                                        
  7. REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.                                                                                                  
  8. CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.                                                                                                                  
  9. SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.                                                                                                    
  10. ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.                                                                          
  11. EQUITY: All employees should be treated as equally as possible.                                                                                                                 
  12. STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.                                                                                                 
  13. INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.                                                    
  14. ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

 

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UNIVERSALITY OF MANAGEMENT & MANAGEMENT SKILL

Management principle are universal; that is why, the apply to all types of organizations including but not limited to FOR PROFIT AND NOT FOR PROFIT ones like businesses, churches,sororities, athletic teams, hospitals and so on.

Manager’s jobs vary somewhat from one type of organization to another because each organizational type requires the use of specialized knowledge, exists in a unique working and political environment, and uses different technology. However, there are job similarities across organizations because the  basic management activities – planning, organizing, influencing, and controlling are common to all organizations.

The basic ingredients of successful management are applicable to all organizations.

MANAGEMENT SKILL:

Management skill is the ability to carry out the process of reaching organization goals by working with and through people and other organizational resources.

Learning about management skill and focusing on developing it are of critical importance since possessing such skill is generally considered to be the prerequisite for management success.

Katz indicates that 3 types of skills are important for successful management performance: technical, human and conceptual skills.

* TECHNICAL SKILLS:

Technical skills are skills involving the ability to apply specialized knowledge and expertise to work related techniques and procedures.

Examples of these skills are engineering, computer programming, and accounting. Technical skills are mostly related to working with “things” – processes or physical objects.

HUMAN SKILLS:

Human skills are skill that build cooperation with the team being led. They involve working with attitudes and communication, individual and group interests – in short, working with people.

CONCEPTUAL SKILLS:

Conceptual Skills involve the ability to see the organization as a whole. A manager with conceptual skills is able to understand how various functions of the organization complement one another, how the organization relates to its environment, and how changes in one part of the organization affect the rest of the organization.

As a manager grows, the need for conceptual skills increases.

Human skills are required at all levels.

 

MANAGEMENT SKILL: A contemporary View:

The major activities that the modern managers typically perform are of 3 basic types:

  1. Task Related Activities:                                                                                                Task related activities are management efforts aimed at carrying out critical management related duties in organizations. Such activities include short term planning, clarifying objectives of jobs in organizations, and monitoring operations and performance.                                                                       
  2. People Related Activities:                                                                                                    People related activities are management efforts aimed at managing people in organizations. Such activities include providing support and encouragement to others, providing recognition for achievements and contributions,developing skill and confidence or organization members,consulting when making decisions, and empowering others to solve problem.                                                                                         
  3. Change Related Activities:                                                                                                    Change related activities are management efforts aimed at modifying organizational components. Such activities include monitoring organization’s external environment, proposing new strategies and vision, encouraging innovative thinking, and taking risks to promote needed change.

To increase the probability of being successful, managers should have competence in :

  • Clarifying Roles
  • Monitoring Operations
  • Short term Planning
  • Consulting
  • Supporting
  • Recognizing
  • Dveloping
  • Empowering
  • Envisioning Change
  • Taking risks for Change
  • Encourge Innovative Thinking
  • External Monitoring

 

 

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MANAGERIAL EFFECTIVENESS & EFFICIENCY

ORGANIZATIONAL RESOURCES:

 

  1. Human Resources
  2. Monetary Resources
  3. Raw Materials
  4. Capital

 

Organizational resources are used,combined and transformed into finished products during the production process.

Human resources are people who work for an organization.Their skills and their knowledge are leveraged by the managers.

Monetary resources are amounts of money that managers use to purchase goods and services for the organization.

Raw materials are ingredients used directly in the manufacturing of products.

 

Managers must become both efficient and effective.

MANAGERIAL EFFECTIVENESS:

The effectiveness of the managers is measured in the effectiveness of the organization in achieving the organizational goals.

MANAGERIAL EFFICIENCY:

Managerial efficiency is the proportion of total organization resources that contribute to productivity during the manufacturing process. The higher this proportion, the more efficient the manager. The more resources wasted or used during the production process, the more efficient the manager.

Managers can be efficient but not effective and vice versa.

If managers achieve the organization goals they are effective, but if they end up using or wasting a high amount of resources, then definitely, the concerned manager is not being efficient.

On the other hand, if the manager is very efficient by using the resources in a limited manner, but misses accomplishing the organizational goals and objectives.

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DEFINE MANAGEMENT & ITS FUNCTIONS

Management is the process of reaching organizational goals by working with and through people and other organizational resources. 

Management has the following 3 characteristics:

  1. It is a process or series of continuing and related activities.
  2. It involves and concentrates on reaching organizational goals.
  3. It reaches these goals by working with and through people and other organizational resources.

 

MANAGEMENT FUNCTIONS:

The 4 basic management functions that make up the management process are described in the following sections:

  1. PLANNING
  2. ORGANIZING
  3. INFLUENCING
  4. CONTROLLING.

PLANNING: Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to be successful. Planning is concerned with the success of the organization in the short term as well as in the long term.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning stages, to various individuals or groups within the organization. Organizing is to create a mechanism to put plans into action.

People within the organization are given work assignments that contribute to the company’s goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization.

INFLUENCING:

Influencing is also referred to as motivating,leading or directing.Influencing can be defined as guiding the activities of organization members in he direction that helps the organization move towards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.

CONTROLLING:

Controlling is the following roles played by the manager:

  1. Gather information that measures performance
  2. Compare present performance to pre established performance norms.
  3. Determine the next action plan and modifications for meeting the desired performance parameters.

Controlling is an ongoing process.

 

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ROLE & IMPORTANCE OF MANAGEMENT

IMPORTANCE OF MANAGEMENT:

Managers influence all the phases of modern organizations. Sales Managers maintain a sales force that markets goods. Personnel managers provide organizations with a competent and productive workforce. Plant managers run manufacturing operations that produce the clothes we wear, the food we eat, and the automobiles we drive.

Our society could never exist as we know it today nor improve without a steady stream of managers to guide its organizations. The well known management author Peter Drucker highlighted this point when he said that Effective Management is probably the main resource of developed countries and the most needed resource of developing ones.

In short, all societies, whether developed or developing, need a huge lot of good managers.

THE ROLE OF MANAGEMENT:

Essentially, the role of managers is to guide the organizations toward goal accomplishment. All organizations exist for certain purposes or goals,and managers are responsible for combining and using organizational resources to ensure that their organizations achieve their purposes.

The role of the Management is to move an organization towards its purposes or goals by assigning activities that organization members perform.

If Management ensures that all the activities are designed effectively, the production of each individual worker will contribute to the attainment of the organizational goals.

Management strives to encourage individual activity that will lead to reaching organizational goals and to discourage individual activity that will hinder the accomplishment of the organization objectives. 

There is no idea more important than managing the fulfillment of the organizational goals and objectives. The meaning of the Management is given by its goals and objectives.

All managers, must have a single minded focus on the fulfillment of the organizational goals.

 

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ETHICS OF CONSUMER PRODUCTION AND MARKETING – Theories and Definitions

How far must manufacturers and their representatives go to make their products and services completely safe?

WHAT Is the relationship between a business and its customers? a contract, or is there more to it than that?

Hos does the fact that companies usually know more about their products than their customers IMPACT their duty to protect customers from injury or harm?

What responsibility do businesses have for customer injuries no one could reasonably have foreseen or prevented?

What about customer’s privacy – what obligations do companies have?

 

MARKET APPROACH TO CONSUMER PROTECTION:

Consumer safely is seen as a good that is most efficiently provided through the mechanism of the free market whereby sellers must respond to consumer demands.

PROBLEMS WITH THE ASSUMPTION OF FULL INFORMATION:

 

  • Many products are too complex for consumers to understand
  • Markets cannot provide consumers with product information.

 

FREE RIDERS:

individuals who enjoy the benefits of a good without paying their share of its costs.

RATIONAL UTILITY MAXIMIZER:

A person who has a well defined and consistent set of preferences, and who knows how personal choices will affect those preferences.

PROBLEMS WITH THE ASSUMPTION OF RATIONAL UTILITY MAXIMIZATION:

 

  • Few people are good at estimating probabilities.
  • People are irrational and inconsistent when weighing choices.
  • Many consumer markets are monopolies or oligopolies.

 

CONTRACT VIEW OF THE FIRM’S DUTIES TO ITS CUSTOMERS:

The view that the relationship between a business firm and its customers is relationship, and the firm’s moral duties to the customer are those created by this contractual relationships.

RELIABILITY:

The probability that a product will function as the consumer is led to expect that it will function.

SERVICE LIFE:

The period of time during which the product will function as effectively as the consumer is to led to expect it to function.

MAINTAINABILITY:

The ease with which the product can be repaired and kept in operating condition.

PRODUCT SAFETY:

The degree of risk associated with using a product.

MORAL DUTIES TO CONSUMERS UNDER CONTRACTUAL THEORY:

 

  • Duty to comply with express and implied claims of reliability, service life, maintainability, and safety.
  • Duty of disclosure
  • Duty not to misrepresent
  • Duty not to coerce

 

DUE CARE THEORY OF THE MANUFACTURER’S DUTIES TO CONSUMERS:

The view that because manufacturers are in more advantaged position, they have a duty to take special care to ensure that consumers’ interests are not harmed by the products that they offer them.

CAVEAT EMPTOR:

Let the buyer take care.

CAVEAT VENDOR:

Let the seller take care.

 

AREAS OF PRODUCER RESPONSIBILITY ACCORDING TO DUE CARE THEORY:

 

  • Design
  • Production
  • Information

 

SOCIAL COSTS VIEW OF THE MANUFACTURER’S DUTIES TO CONSUMERS:

The view that a manufacturer should pay the costs of any injuries sustained through any defects in the product, even when the manufacturer exercised all due care in the design and manufacture of the product and has taken all reasonable precautions to warn users of every foreseen danger.

 

  • Manufacturer should pay the costs of all injuries caused by defect in a product even if exercised due care.
  • Argues that injuries are external costs that should be internalized.

 

STRICT LIABILITY:

A legal doctrine that holds that manufacturers must bear the costs of injuries resulting from product defects regardless of fault.

CRITICISMS OF THE SOCIAL COST VIEW:

 

  • Unfair to manufacturers since it forces them to compensate unforeseeable injuries.
  • Assumption that adherence to the social cost view will prevent accidents is false.
  • Leads to successful consumer lawsuits in cases where manufacturers took all due care.

 

COMMERCIAL ADVERTISING:

Communication between a seller and potential buyers that is publicly addressed to a mass audience and is intended to induce members of this audience to buy the seller’s products.

 

  • Public communication aimed at mass audience
  • Intended to induce members of its audience to buy the Sellers’s products
  • Succeeds by creating a desire for the seller’s product or a belief that a product will satisfy a pre existing desire.

 

PRODUCTION COSTS:

The costs of the resources consumed in producing or improving a product.

SELLING COSTS:

The additional costs of resources that do not go into changing the product, but are invested instead in getting people to buy the product.

DECEPTIVE ADVERTISING:

 

  • Is a function of the author’s intent to make the audience believe what is known to be false.
  • OR a function of The media’s communication of the false message.
  • OR a function of The audience’s vulnerability to deception.

 

RIGHT TO PRIVACY:

The right of persons to determine what, to whom, and how much information about themselves will be disclosed to other parties.

PSYCHOLOGICAL PRIVACY:

Privacy with respect to a person’s inner life.

PHYSICAL PRIVACY:

Privacy with respect to a person’s physical activities.

IMPORTANCE OF PRIVACY:

 

  • Protects individuals from interference, shame, embarrassment, hurting loved ones, self-incrimination
  • Enables the development of personal relationships,professional relationships, distinct social roles and self determination.

BUSINESS & ENVIRONMENT

The process of producing goods forces businesses to engage in exchanges and interactions with 2 main environments ie. the customer environment and the natural environment.

It is from the natural environment that business ultimately draws the raw materials that it transforms into it the finished products, which are then promoted and sold to the customers. 

Thus, the natural environment provides the raw material input of business, whereas the consumer environment absorbs it finished output.

POLLUTION:

The undesirable and unintended contamination of the environment by the manufacture or use of commodities.

RESOURCE DEPLETION:

The consumption of finite or scarce resources.

GLOBAL WARMING:

The increase in temperatures around the globe due to rising levels of greenhouse gases.

GREENHOUSE GASES:

Carbon dioxide, nitrous oxide, methane and chlorofluorocarbons – gases that absorb and hold heat from the sun,preventing it from escaping back into space, much like a greenhouse absorbs and holds the sun’s heat.

OZONE DEPLETION:

The gradual breakdown of ozone gas in the stratosphere above us caused by the release of chlorofluorocarbons (CFCs) in to the air.

ACID RAIN:

Acid rain occurs when sulfur oxides and nitrogen oxides are combined with water vapour in clouds to form nitric acid and sulfuric acid.

These acids are then carried down in rainfall.

PHOTOCHEMICAL SMOG:

A complex mixture of gases and particles manufactured by sunlight out of the raw materials- nitrogen oxides and hydrocarbons – discharged to the atmosphere chiefly by automobiles.

MAJOR TYPES OF AIR POLLUTION:

  • Global Warming Gases
  • Ozone depleting Gases.
  • Acid Rain
  • Airbone Toxics
  • Air Quality

ORGANIC WASTES:

Largely untreated human wastes,sewage,and industrial wastes from processing various food products,from the pulp and paper industry and from animal feedlots. 

ECOLOGICAL SYSTEM:

An interrelated and interdependent set or organisms and environments.

ECOLOGICAL ETHICS:

The view that nonhuman parts of the environment deserve to be preserved for their own sake, regardless of whether this benefits human beings.

PRIVATE COST:

The cost an individual or company must pay out of its own pocket to engage in a particular economic activity.

SOCIAL COST:

The private internal costs and wider external costs of engaging in a particular economic activity.

 

KINDS OF ETHICAL APPROACHES TO ENVIRONMENTAL PROTECTION:

  • Ecological approach: non humans have intrinsic value.
  • Environmental Rights Approach: Humans have a right to a livable environment.
  • Market Approach: External costs violate utility, rights and justice.

INTERNALIZATION OF THE COSTS OF POLLUTION:

Absorption of costs by the producer, who takes them into account when determining the price of goods.

ENVIRONMENTAL INJUSTICE:

The bearing of external costs of pollution largely by those who do not enjoy a net benefit from the activity that produces the pollution.

SOCIAL AUDIT:

A report of the social costs and social benefits of the firm’s activities.

CONSERVING:

The saving or rationing of neutral resources for later uses.

Arguments against the Existence of the Rights of Future Generations:

  • Future generations do not now exist and may never exist.
  • The potential argument that the present must be sacrificed fot he future.
  • Our ignorance of the interests of future generations.

CONSERVATION BASED ON JUSTICE:

  • Rawls: Leave the world no worse than we found it.
  • Care: Leave our children a world no worse than we received.
  • Attfield: Leave the world as productive as we found it.

ETHICS IN THE MARKET – Theories and Definitions

PERFECT COMPETITION:

A free market in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged.

PURE MONOPOLY:

A market in which a single firm is the only seller in the market and which new sellers are barred from entering.

OLIGOPOLY:

A market shared by a relatively small number of large firms that together can exercise some influence on process.

MARKET:

Any forum in which people come together for the purpose of exchanging ownership of goods or money.

EQUILIBRIUM POINT:

The point at which the amount of goods buyers want to buy exactly equals the amount of goods sellers want to sell, and at which the highest price buyers are willing to pay exactly equals the lowest prices sellers are willing to take.

DEMAND CURVE:

A line on a graph indicating the most that customers would be willing to pay for a unit of some product when they buy different quantities of those products.

SUPPLY CURVE:

A line on a graph indicating the prices producers must charge to cover the average costs to supplying a given amount of a commodity.

PRINCIPLE OF DIMINISHING MARGINAL UTILITY:

Each additional item a person consumes is less satisfying than each of the earlier items the person consumed.

PRINCIPLE OF INCREASING MARGINAL COSTS:

After a certain point, each additional item a seller produces costs more to produce than earlier items.

POINT OF EQUILIBRIUM:

The point at which the supply and demand curves meet, so amount buyers want to buy equals amount suppliers want to sell and price buyers are willing to pay equals price sellers are willing to take.

Perfectly Competitive Free Markets are characterized by the following 7 features:

  1. There are numerous buyers and sellers, none of whom has a substantial share of the market.
  2. All buyers and sellers can freely and immediately enter or leave the market.
  3. Every buyer and seller has full and perfect knowledge of what every other buyer and seller is doing, including knowledge of prices, quantities, and quality of all goods being bought and sold.
  4. The goods being sold in the market are so similar to each other that no one cares from which each buys or sells.
  5. The costs and benefits of producing or using the goods being exchanged are borne entirely by those buying or selling the goods and not by any other external parties.
  6. All buyers and sellers are utility maximizers. Each tries to get as much as possible for as little as possible.
  7. No external parties(such as government) regulate the price, quantity, or quality of any of the goods being bought and sold in the market.

MORAL OUTCOMES OF PERFECTLY COMPETITIVE MARKETS:

  • Achieve a certain kind of justice.
  • Satisfy a certain version of utilitarianism.
  • Respect certain kinds of moral rights.

MONOPOLY MARKET CHARACTERISTICS:

  • One Seller
  • High Entry Barriers
  • Quantity below Equilibrium
  • Prices above equilibrium and Supply Curve
  • Can extract monopoly profit.

OLIGOPOLISTIC COMPETITION:

IMPERFECTLY COMPETITIVE MARKETS:

Markets that lie somewhere between the two extremes of the perfectly competitive market with innumerable sellers and the pure monopoly market with only one seller.

HIGHLY CONCENTRATED MARKETS:

Oligopoly markets that are determined by a few large firms.

HORIZONTAL MERGER:

The unification of two or more companies that were formerly competing in the same line of Business.

PRICE FIXING:

An agreement between firms to set their prices at artificially high levels.

MANIPULATION OF SUPPLY:

When firms in an oligopoly industry agree to limit their production so that prices rise to levels higher than those that would result from free competition.

EXCLUSIVE DEALING ARRANGEMENTS:

When a firm sells to a retailer on condition that the retailer will not purchase any products from other companies and/or will not sell outside of a certain geographical area.

TYING ARRANGEMENTS:

When a firm sells a buyer a certain good only on condition that the buyer agrees to purchase certain other goods from the firm.

RETAIL PRICE MAINTENANCE AGREEMENTS:

A manufacturer sells to retailers only on condition that they agree to charge the same set retail prices for its goods.

PRICE DISCRIMINATION:

To charge different prices to different buyers for identical goods or services.

UNETHICAL PRACTICES IN OLIGOPOLY INDUSTRIES:

  • Price – Fixing
  • Manipulation of supply
  • Exclusive dealing arrangements
  • Tying Arrangements
  • Retail Price Maintenance Agreements
  • Price Discrimination

PRICE LEADER:

  • The firm recognized as the industry leader in oligopoly industries for the purpose of setting prices based on levels announced by that.

TRUST:

An alliance of previously competitive oligopolists formed to take advantages of monopoly powers.

MAIN VIEWS OF OLIGOPOLY POWER:

  • Do-Nothing View
  • Anti trust View
  • Regulation View

THINGS TO CHECK IN A BUSINESS PLAN

We have been consulting an investor ( a strategic VC Operations) on investing in various projects.

Common findings:

  • The entrepreneurs who had approached the investors were operating more from their gut feelings than from data.
  • They are very optimistic about their future prospects, even though they have been facing tough times for a long time.
  • The data of the best possible scenario is generally referred to as the standard expected scenario, which is never even remotely close.
  • Expenditures are considered on a very loose levels and always underestimated.
  • Lot of challenges are discounted and overlooked till the time they become big and unconfrontable.
  • Competition is never given its dues in terms of considering market share, marketing, sales and talent retention challenges.
  • Sweeping generalities become the business plan instead of data oriented thought through strategies.
  • Cash Flow is expected to be taken care of, by the expected business revenue – which generally fail to be as per the expectations.
  • Challenges faced by the industry as a whole, are not fully considered and rarely brainstormed to create innovative solutions.
  • Scant respect for Financial Planning, strategy, HR, training and development are seen in many cases.
  • Employees are expected to be automatically aligned to the vision that is hidden in the mind of the promoters.

These are some of the observations, but definitely not applicable to everyone.

Many entreprenuers have demonstrated that they do not fall in the above pitfalls and they steer their organizations to great success and sustained performance standards by combining the entreprenuers fire in the belly, with the strategy and systems.

WHAT WORKS:

  1. Have accurate data of the past and realistic data about the future.
  2. Have all industry related information handy.
  3. Have your financial data impeccable and ready to discuss.
  4. Have your competition and various factors affecting your organization performance detailed out.
  5. Have a strong strategy and marketing plan.
  6. What are the Key requirements for success in your industry, is it technolgoy, manpower, skills, market converage? Have all the bases worked out.
  7. Realistic Growth Plans.
  8. Detailed SWOT Analysis or the reverse TOWS Analysis.
  9. Create a realistic picture of the Opportunites and Challenges and your plans for dealing with them.
  10. Clearly identify the areas where you have not yet sorted out things or you would like inputs or are working out external inputs.
  11. Have guidance from professionals like CAs, Management Consultants, Govt. liasoning officers etc., as required.
  12. Create 3 plans , worst scenario, best scenario and realistic scenario.

To discuss more, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

THE BUSINESS SYSTEM – Markets, Government and International Trade

ECONOMIC SYSTEM:

The system a society uses to provide the goods and services it needs to survive and flourish.

GLOBALIZATION:

The process by which the economic and social systems of nations are connected together so that goods, services, capital, and knowledge move freely between nations.

TRADITION BASED SOCIETIES:

Societies that rely on traditional communal roles and customs to carry out basic economic tasks.

In Locke’s State of Nature:

  • All are free and equal
  • Each person owns his body and labour, and whatever he mixes his labour into
  • People agree to form a government to protect their right to freedom and property

Lockean Rights:

  • The right to life, liberty and property.

Weaknesses of Lockean Rights:

  • Assumption that individuals have neutral rights
  • Conflict between positive and negative rights
  • Conflict between Lockean rights and principles of Justice.
  • Locke’s individualistic assumptions

INVISIBLE HAND : Arguments of Adam Smith

  • According to Adam Smith, the market competition that drives self interested individuals to act in ways that serve society.
  • Market Competition ensures that the pursuit of self interest in markets advances of public’s welfare.
  • Govenment interference in markets does not advance the public’s welfare.

Criticisms of Smith’s Argument:

  • Rests on unrealistic assumptions
  • False assumption that all relevant costs are paid by manufacturer
  • False assumption that human beings are solely motivated by self interested desire for profit.
  • Some degree of economic planning is possible and desirable.
  • Keynes’s claim that government can affect unemployment.

SAY’S LAW:

In an economy all available resources are used and demand always expands to absorb the supply of commodities made from them.

AGGREGATE DEMAND:

According to John Maynard Keynes, the sum of the demand of the 3 sectors of the econonmy; households,businesses and government.

KEYNESIAN ECONOMIES:

The theory of John Maynard Keynes that free markets alone are not necessarily the most efficient means for co-ordinating the use of society’s resources.

SOCIAL DARWINISM:

Belief that economic competition produces human progress.

SURVIVAL OF THE FITTEST:

Charles Darwin’s term for the process of natural selection.

NATURALISTIC FALLACY:

The assumption that whatever happens naturally is always for the best.

ABSOLUTE ADVANTAGE:

A situation where the production costs (costs in terms of the resoueces consumed in producing the good) of making a commodity are lower for one country than for another.

COMPARATIVE ADVANTAGE:

A situation where the opportunity costs (costs in terms of other goods given up) of making a commodity are lower for one country than for another.

FREE TRADE:

  • Advocated by Smith with the idea of Absolut advantage.
  • Advocated by Ricardo with idea of Comparative Advantage.
  • Favours Gloablization.

Difficulties in Applying Ricardo’s Theory Today:

  • Easy movement of capital by companies
  • False assumption that a country’s prodcution costs are constant.
  • Influence of International rule setters.

MEANS OF PRODUCTION:

The buildings, machinery, land and raw materials used in the production of goods and services.

ALIENATION:

In Marx’s view not allowing the lower working classes to develop their productive potential, satisy their real human needs, or form satisfying human relationships.

ECONOMIC SUBSTRUCTURE:

The materials and social controls that society uses to produce its economic goods.

SOCIAL SUPERSTRUCTURE:

A society’s government and its populare ideologies.

FORCES OF PRODUCTION:

The materials- land, labour,natural resources,machinery,energy,technology used in production.

RELATIONS OF PRODUCTION:

The social controls used in producing goods i.e. the social controls by which society organizes and controls its workers.

HISTORICAL MATERIALISM:

The Marxist view of history as determined by changes in the economic methods by which humanity produces the materials on which it must live.

MARX’S PRINCIPLE Claims of Injustice in Capitalism:

  • Exploitation of workers whose “surplus” is taken by owners as “profit”.
  • Alienation of workers from product, work,self and others.
  • Subordination of government to interests of ruling economic class.
  • Immiseration of Workers.

IMMISERATION:

The combined effects of increased concentration, cyclic crises, rising unemployment, decliining relative compensation.

INTELLECTUAL PROPERTY:

Property that consists of an abstract and nonphysical object.

COPYRIGHT:

A grant that indicated that a particular expression of an idea is the private property of an individual or a company.

ETHICAL PRINCIPLES IN BUSINESS – Various Definitions

ETHIC OF CARE:

An ethic that emphasizes cring for the concrete well being of those near to us.

ETHIC OF VIRTUE:

An ethic based on evaluations of the moral character of persons or groups.

UTILITARIANISM:

A general term for any view that holds that actions and policies should be evaluated on the basis of the benefits and costs they will impose on society.

UTILITY:

The inclusive term used to refer to any net benefits produced by an action.

UTILITARIANISM:

  • Advocates maximising utility.
  • Matches well with moral evaluations of public policies
  • Appears intuitive to many people
  • Helps Explain why some actions are generally wrong and others are generally light.
  • Influenced Economics

COST BENEFIT ANALYSIS:

A type of analysis used to determine the desirability of investing in a project by figuring whether its present and future economic benefits outweight its present and future economic costs.

EFFICIENCY:

Operating in such a way that one produces a desired output with the lowest resource input.

NONECONOMIC GOODS:

Goods such as life, love, freedom,equality, health, beauty, whose value is such that no quantity of any economic good is equal in value to the value of the noneconomic good.

INSTRUMENTAL GOODS:

Things that are considered valuable because they lead to other good things.

INTRINSIC GOODS:

Things that are desirable independent of any other benefits they may produce.

JUSTICE:

Distributing benefits and burdens fairly among people.

RIGHTS:

Individual entitlements to freedom of choice and well being.

EVALUATING UTILITARIANISM:

  • Critics say not all values can be measured.
  • Utilitarians respond that monetary and commonsensee mesures can measure everything.
  • Critics say utilitarianism fails with rights and justice.
  • Utilitarians respond that rule – utilitariansim can deal with rights and justice.

LEGAL RIGHT:

An entitlement that derives from a legal system that permits or empowers a person to act in a specified way or that requires others to act in certain ways toward that person.

MORAL RIGHTS:

Rights that human beings of every nationality possess to an equal extent simply virtue of being human beings.

CHARACTERISTICS OF RIGHTS:

  • A right is an individual’s entitlement to something.
  • Rights derieved from legal systems are limited by jurisdiction
  • Moral or human rights are based on moral norms and are not limited by jurisdiction.

SUMMARY OF MORAL RIGHTS:

  • Tigthly correlated with duties.
  • Provide individuals with autonomy and equality in the free pursuit of their interests.
  • Provide a basis for justifying one’s actions and for invoking the protection or aid of thers.

NEGATIVE RIGHTS:

Duties others have to not interfere in certain activities of the person who holds the right.

POSITIVE RIGHTS:

Duties of other agent to provide the holder of the right with whatever he or she needs to freely pursue his or her interests.

KINDS OF MORAL RIGHTS:

  • Negative rights require others leave us alone
  • Positive rights require others help us
  • Contractual or special rights require other to keep agreements.

CATEGORICAL IMPERATIVE:

The requirement that everyone should be treated as a free person equal to everyone else.

MAXIM:

The reason a person in a certain situation has for doing what he or she plans to do. 

UNIVERSALIZABILITY:

The person’s reasons for acting must be reasons that everyone could act on atleast in principle.

REVERSABILITY:

The person’s reasons for acting must be reasons that he or she would be willing to have all others use, even as a basis of how they treat him or her.

KANT’S CATEGORICAL IMPERATIVE FORMULAS:

  • Never do something unless you are willing to have everyone do it.
  • Never use people merely as means, but always respect and develop their ability to choose for themselves.

CRITICISMS OF KANT:

  • Categorical Imperatives are unclear
  • Kant’s rights can conflict
  • Kant’s theory implies some mistaken moral conclusions

LIBERTARIAN PHILOSOPHERS:

  • Believe that freedom from human constraint is necessarily good  and that all constraints imposed by others are necessarily evil except when needed to prevent the imposition of greater human constraints.

TYPES OF JUSTICE:

  • Distributive Justice: Just distribution of benefits and burdens
  • Retributive Justice: Just imposition of punishments and penalities.
  • Compensatory Justice: Just compensation for wrongs or injuries.

DISTRIBUTIVE JUSTICE:

Distributive society’s benefits and burdens fairly.

RETRIBUTIVE JUSTICE:

Blaming or punishing persons fairly for doing wrong.

COMPENSATORY JUSTICE:

Restoring to a person what the person lost when he or she was wronged by someone.

EGALITARIANISM:

Every person should be given exactly equal shares of a society’s or a group’s benefits and burdens.

POLITICAL EQUALITY:

Equal participation in, and treatment by, the political system.

ECONOMIC EQUALITY:

Equality of income, wealth and opportunity.

PURITAN ETHIC:

The view that every individual has a religious obligation to work hard at his calling (the career to which God summons each individual).

WORK ETHIC:

The view that values individual effort and believes that hard work does and should lead to success.

PRODUCTIVITY:

The amount a person produces.

PRINCIPLE OF EQUAL LIBERTY:

The claim that each citizen’s liberties must be protected from invasion by others and must be equal to those of others.

DIFFERENCE PRINCIPLE:

The claim that a productive society will incorporate inequalities, but takes steps to improve the position of the most needy members of society.

PRINCIPLE OF FAIR EQUALITY OF OPPORTUNITY:

The claim that everyone should be given an equal opportunity to qualify for the more privileged positions in society’s institutions.

ORIGINAL POSITION:

An imaginary meeting of rational self interested persons who must choose the principles of justice by which their society will be governed.

VEIL OF IGNORANCE:

The requirement that persons in the original position must not know particulars about themselves which might bias their choices such as their sex,race,religino,income,social status etc.,

PRINCIPLES OF DISTRIBUTIVE JUSTICE:

  • Fundamental: Distributive benefits and burdens equally to equals and unequally to unequals.
  • Egalitarian: Distribute equally to everyone.
  • Capitalist: Distribute by Contribution
  • Socialist: Distribute by need and ability.
  • Libertarian: Distribute by Free Choices
  • Rawls: Distribute by equal liberty, equal opportunity, and needs of disadvantaged.

ETHIC OF CARE:

An ethic that emphasizes caring for the concrete well being of those near to us.

  • Claims ethics need to be impartial.
  • Emphasizes preserving and nurturing concrete valuable relationships.
  • Says we should care for those dependent on and related to us.

COMMUNITARIAN ETHIC:

An ethic that sees concrete communities and communal relationships as having a fundamental value that should be preserved and maintained.

Objection to Care Approach to Ethics:

  • Charge: Ethic of care can degenerate into favoritism.
  • Response: Conflicting moral demands are an inherent characteristic of moral choices.
  • Charge: Ethic of care can lead to “burnout”
  • Response: Adequate understanding of ethic of care will address the need to care for the caregiver.

The Basis of Moral Judgements:

  • Evaluations of social costs and benefits.
  • Respect for individual rights.
  • Just ditribution of benefits and burdens.
  • Caring for those in concrete relationships.

MORAL VIRTUE:

An acquired disposition that is valued as part of th character of morality good human being and that is exhibited in the person’s habitual behaviour.

THEORIES OF MORAL VIRTUE:

  • Aristotle: Habits that enable a person to live according to reason.
  • Aquinas: Habits that enable a person to live responsibly in this world and be united with God in the next life.
  • MacIntyre: Disposition that enables a person to achieve the good at which human”practices” aim.
  • Pincoff: Dispositions we use when choosing between persons or potential future selves.

VIRTUE THEORY:

The theory that the aim of the moral life is to develop those general dispositions called moral virtues, and to exercise and exhibit them in the many situations that human life sets before us.

VIRTUE THEORY CLAIMS:

  • We should exercise, exhibit, and develop the virtues.
  • We should avoid exercising, exhibiting, and developing vices.
  • Institutions should instill virtues not vices.

Business Ethics – Various Definitions and Theories

Business Ethics:

The principles of conduct governing an individual or a group.

Business Ethics:

Ethics is the study of Morality.

 

Ethics is not the same as morality, it is a study  of various dimensions of Morality.

Ethics is the discipline that examines one’s moral standards or the moral standards of a society.

WHAT IS MORALITY?

The standards that an individual or a group about what is right and wrong or good and evil.

MORAL STANDARDS :

The norms about the  kinds of actions believed to be morally right and wrong as well as the values placed on the kinds of objects believed to be morally good and morally bad.

NON MORAL STANDARDS:

The standards by which we judge what is good or bad and right or wrong in a nonmoral way.

5 Characteristics of Moral Standards:

  1. Involved with serious injuries or benefits.
  2. Not established by Law or Legislature.
  3. Should be preferred to other values including self interest.
  4. Based on impartial considerations
  5. Associated with special emotions and vocabulary

NORMATIVE STUDY:

An investigation that attempts to reach conclusions about what things are good or bad or about what actions are right or wrong.

DESCRIPTIVE STUDY :

An investigation that attempts to describe or exploan the world without reaching any conclusions about whether the world is as it should be.

BUSINESS ETHICS:

A specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations and behaviour.

BUSINESS ETHICS STUDIES:

  • Moral Standards
  • How moral standards apply to social systems and organizations that produce and distribute goods and services.

KINDS OF ETHICAL ISSUES:

  • Systemic – Social Systems or institutions within which business operate.
  • Corporate – An Individual Company taken as a whole
  • Individual – A Particular individual or individuals within a company and their behaviours and decisions.

ETHICAL RELATIVISM :

A theory that there are no ethical standards that are absolutely true and that apply or should be applied to the companies and people of all societies.

Objections to Theory of Ethical Relativism:

  • Some moral standards are found in all societies.
  • Moral differences do not logically imply relativism
  • Relativism is incoherent
  • Relativism privileges the current moral standards of a society.

 

Kohlberg’s Three Levels of Moral Development :

  • Preconventional – Punishment and obedience; instrumental and relative.
  • Conventional – Interpersonal concordance; law and order
  • Postconventional – Social contract, universal principles

MORAL REASONING:

The reasoning process by which human behaviours, institutions or policies are judged to be in accordance with or in violation of moral standards.

Objections to Bringing Ethics into Business:

  • In a free market economy,the pursuit of profit will ensure maximum social benefit
  • A manager’s most important obligation is to the company.
  • Business ethichs is limited to obeying the law.

Arguments Supporting Ethics in Business:

  • Ethics applies to all human activities
  • Business cannot survive without ethics
  • Ethics is consistent with profit seeking
  • Prisoner’s dilemma argument
  • Customers and Employees care about Ethics

Elements of Moral Responsibility:

  • Individual must cause or fail to prevent an avoidable injury or wrong.
  • Individual must know what he is doing
  • Individual must act of his own free will.

RECOMMENDED WEBSITES:

http://www.scu.edu/ethics

http://www.ethics.acusd.edu

http://www.web-miner.com/busethics.htm

http://www.essential.org

http://www.sec.gov/edgar.shtml

http://www.betterworldlinks.org/book100.htm

http://www.corpwatch.org

http://www.worldwatch.org

http://www.arq.co.uk/ethicalbusiness

http://www.bsr.org

http://www.mallenbaker.net/csr

http://www.pwblf.org

BUSINESS ETHICS

Business Ethics is applied ethics in the day to day operations of the business.

It is the on the court application of our understanding or what is good and right to that assortment of institutions, technologies,transactions,activities and pursuits that we call BUSINESS.

Although ethics may be the best policy, the ethical course of aciton is not always clear.

We will try to explore this issue in details through the various series of blog postings in the coming days. The purpose is not to give moral advice but to provide a deeper knowledge of the nature of ethical principles and concepts and an understanding of how these apply to the ethical problems encountered in business.

This kind of knowledge and understanding will help managers in charge to see their way through the various ethical dilemmas that one confronts in our business life.

REFERENCE BOOK:

BUSINESS ETHICS – Concepts and Cases by Manuel G. Velaszquez

Culture & Consumer Behaviour

CULTURE :

The study of culture is the study of all aspects of a society. It is the language, knowledge, laws, and customs that give that society its distinctive character and personality. In the context of consumer behaviour, culture is defined as the sum total of learned behaviours, beliefs, values, customs that serve to regulate the consumer behaviour of members of a particular society. 

Beliefs and Values are guiding principles while customs are the usual and accepted norms of behaviour.

The impact of the culture on the society is so natural and so ingrained that its influence on behaviours is rarely noted. It is like fish distinguishing water.

Culture offers orders, direction and guidance to members of society in all phases of human problem solving.

Culture is dynamic and gradually and continually evolves to meet the needs of the society.

Culture is learned as a part of the social experience. Children acquire a set of beliefs, values and customs, which constitutes the culture,from the environment. These beliefs, values and customs are acquired through formal learning, informal learning and technical learning.

Advertising enhances formal learning by reinforcing desired modes of behavior and expectations; it enhances informal learning by providing models for behaviour.

Culture is communicated to members of society through a common language and through commonly shared symbols. Because the human mind has the ability to absorb and to process symbolic communication, marketers can successfully promote both tangible and intangible products and product concepts to consumers through mass media.

All the elements in the marketing mix serve to communicate symbolically with the audience, Products project an image of their own, so does promotion. Price and Retail outlets symbolically convey messages concerning the quality of the product.

The elements of culture are transmitted by 3 pervasive social institutions; the family, the schools and the church. A fourth social institution that plays a major role in the transmission of culture is  the mass media, both through editorial content and through advertising.

A wide range of measurement techniques is used to study culture. The range includes Projective Techniques,attitude measurement methods, field observation,participant observation, content analysis and value measurement  survey techniques.

What are you Consumer Groups? What are their Cultures?  How are you understanding and leveraging that for your business development and client engagement?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Social Class and Consumer Behaviour

SOCIAL CLASSES & CONSUMER BEHAVIOURS:

Social Stratification, the divison of memebrs of a society into a hierarchy of distinct social classes, exists in all societies and cultures.

Social class usually is defined by the amount of status that members of a specific class possess in relation to members of other classes. Social-class membership often serves as a frame of reference for the development of consumer attitudes and behaviour.

The measurement of social class is concerned with classifying individuals into social class groupings. These groupings are of particular value to marketers, who use social classification as an effective means of identifying and segmenting target markets.

There are 3 basic methods for measuring social class:

  1. Subjective Measurement
  2. Reputational Measurement
  3. Objective Measurement

Subjective Measures rely on an individual’s self perception.

Reputational Measures rely on an individual’s perceptions of others and 

Objective Measures use specific socioeconomic mesures, either alone or in combination with others.

Composite variable indexes sucha s the index of status characteristics and the socio economic status score, cominbe a no. of socio economic factors to form one overall measure of social class standing.

Class strucutres range from two class to nine class systems. A frequently used classification system consists of 6 classes: Upper upper, lower Upper, upper middle, lower middle, upper lower, and lower lower classes.

Profiles of these clases are reflected in differences in attitudes, in leisure activities, and in consumption habits. That is why, for the marketers, social class based market segmentation is of high importance.

Geodemographic clustering is a technique that combines geogrpahic and socio economic factors to locate concentrations of consumers with particular characteristics. Particular attention currently is being directed to affluent consumers, who represent the fastest growing segment in our population; however, some marketers are finding it extremely profitable to cater to the needs of non affluent consumers.

Research has revealed social class differences in clothing habits, home decoration, leisure activities, as well as saving, spending and credit habits.

Thus, smart marketeres tailor specific product and promotional strategies to each social-class target segment.

Which Social classes are your customers from? How are their behaviours impacted by these various factors?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Behaviour Influencers

Consumer Behaviour & Purchase Decisions Influenced by Reference Groups and Families

Almost all individuals regularly interact with other people who directly or indirectly influence their purchase decisions. Therefore, the study of groups and their impacts on the individual is of great importance,specially for the marketers who want to influence the consumer behaviours in favour of their products and services.

Consumer Reference Groups are groups that serve as frames of reference for individuals in their purchase decisions. Reference groups include:

  1. Friends
  2. Work Groups
  3. Shopping Groups
  4. Virtual Groups & Communities
  5. Consumer Action Groups.

Normative Reference Groups are those groups that influence general values or behaviour.

Comparative Reference Groups are those that influence Specific Attitudes.

Consumer Reference Groups include groups with which consumers have no direct face to face contact such as film stars, sportspersons, other celebrities and social classes.

The credibility, attractiveness and power of the reference group affect the degree of influence it has. Reference group appeals are used very effectively by some advertisers in promoting their goods and services because they subtly induce the prospective consumer to identify with the pictured user of the product.

The 5 reference group appeals most commonly used in marketing are:

  1. Celebrities
  2. Experts
  3. Common Man
  4. Executive and Employee spokesperson
  5. Trade Spokes Character

Celebrities are used to give testimonials or endorsements as actors or as company spokespersons.

Experts may be recognized experts in the concerned product category or actors playing the part of experts.

The common man approach is designed to show that individuals who are just like the prospective customers are satisfied with the advertised product or service.

Companies are using their top executives as spokespersons because their appearance in company advertisements seems to imply that someone at the top is watching over the customer’s interest.

For many customers, their family is their primary reference group for many attitudes and behaviours.

The family is the primary target for most products and services. As the most basic membership group, families are defined as two or more persons related by blood, marriage or adoption who reside together.

There are 3 types of families: Married Couples, Nuclear Families and Extended Families. 

Socialization is the core function of the family. Other functions being economic and emotional support and the pursuit of a suitable lifestyle for its members.

The members of a family assume specific roles in their everyday functioning: such roles or tasks extend to the realm of consumer purchase decisions. Key consumer related roles of family member include influencers, gatekeepers, deciders, buyers, preparers,users, maintainers and disposers.

A family’s decision making style in influenced by its lifestyle, roles and cultural factors e.g.: husband dominated, wife dominated, joint, autonomic decisions etc.,

Classification of the families by the various stages in the family life cycle (FLC) provides valuable insights into family consumption related behaviour.

The traditional FLC begins with bachelorhood, moves on to marriage, then to an expanding family, to a contracting family and to an end with the death of a spouse.

Various other situations also exists like childless couples, live in couples, single parents or single person households.

Who are the influencers for your Customers? How does this show up in Corporate Purchase decisions?

How are you leveraging the various influencers?

MANAGMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Marketing Communication and Consumer Behaviour

MARKETING COMMUNICATION:

There are 5 basic components of communication:

  1. Sender
  2. Receiver
  3. Medium
  4. Message
  5. Feedback

 

In the communications process, the sender encodes the message using words,pictures, symbols sends it through a selected medium.

The receiver decodes the message based on his or her personal characteristics and experience, and responds based on such factors as selective exposure, selective perception, comprehension and psychological noise.

There are 2 types of communications:

 

  1. Interpersonal Communications
  2. Mass Communications

 

Interpersonal communications occur on a personal level between tow or more people and may be verbal or non verbal, formal or informal.

Interpersonal communications take place in person,by telephone,by mail,by email,on the web etc., 

In mass communications, there is no direct contact between source and receiver.

Mass communications occur through such impersonal  media as television, radio, newspapers and magazines.

Feedback is an essential component of all types of communications because it provides the sender with some notion as to whether and how well the message has been received.

The credibility of the source, a vital element in message persuasiveness, often is based on the source’s perceived intentions.

Informal sources and neutral or editorial sources are considered to be highly objective and thus highly credible. The credibility of a commercial source is more complex and usually is based on a composite evaluation of its reputation,expertise,and knowledge and that of the medium in which it advertises, the retail channel and company spokespersons.

Media Selection depends on the product,the audience, and the advertising objectives of the campaign.Each medium has advantages and shortcomings that must be weighed in the selection of  media for an advertising campaign.

Following the emergence of new technologies, many advertisers are now developing more customized communications that can reach consumers via media with narrow casting, rather than broadcasting.

The manner in which a message is presented influences its impact. One sided messages are more effective in some situations and with some audiences; two sided messages are more effective with others.

High involvement products are best advertised through the central route to persuasion, which encourages active cognitive effort. 

Marketers can either use objective,factual appeals or emotional appeals. The emotional appeals most frequently used in advertising fear, humour,sexual appeals etc.,

Audience participation is a very effective communications strategy becuase it encourages internalization of the advertising message.

What are the challenges you are facing in designing and delivering your Marketing Communications to your current and potential customers?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

Consumer Attitutde

What is an Attitude?

An attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object whether it is a product, product category, a brand, a service, an advertisement, a website, a store etc., Each property of this definition is critical to understanding why and how attitudes are relevant in consumer behaviours and marketing.

The 4 broad categories of attitude models are:

  1. Tri component attitude model
  2. Multiattribute attitude model
  3. Trying to Consume Model
  4. Attitude toward the ad Model

The tri component model of attitudes consists of 3 parts:

  1. A cognitive Component
  2. An affective Component
  3. A conative component

The cognitive component captures a consumer’s knowledge and perceptions about products and services.

The affective component focuses on a customer’s emotions or feelings with respect to a particular product or service. The affective component determines an individual’s overall assessment of the object in terms of some kind of favourableness scoring.

The Conative component is concerned with the likelihood that a consumer will act in a specific fashion with respect to the attitude object. The Conative component is many times treated as an expression of the customer’s intention to buy.

Multiattribute attitude models like attitude toward object, attitude toward behaviour and the theory of reasoned action models have received much attention from consumer researchers. These models examine consumer beliefs about specific product attributes. The thoery of trying is designed to account for the many cases in which the action or outcome is not certain. The attitude toward the ad models examine the influence of advertisements on the consumer’s attitudes toward the brand.

How attitudes are formed?

Attitudes are learned and the different learning theories provide unique insights as to how attitudes initially may be formed. Attitude formation is facilitated by direct personal experience and influenced by the ideas and experiences of friends and family members and exposure to mass media.

Individual’s personality also plays a role in attitude formation.

Strategies of Attitude Change can be put into 6 distinct categories:

  1. Changing the basic motivational function
  2. Associating the attitude object with a specific function
  3. Relating the attitude object to conflicting attitudes
  4. Altering components of the multiattribute model
  5. Changing beliefs about competititor’s brands, products and Services
  6. The Elaborated Likelihood Model.

Each of these strategies provide the marketer with alternative ways of changing consumer’s existing attitudes.

Cognitive dissonance theory suggests that the conflicting thoughts or information, following a purchase might propel consumers to change their attitudes to make them consonant with their actions.

Attribution theory focuses on how people assign casualty to events and how they form or alter attitudes as an outcome of assessing their own behaviour or the behaviour of the other people OR things.

What are you doing to ensure that your potential customers are creating favourable attitudes towards your company, brand, product and services? How are your competitors doing it? Talk to us for further support.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Consumer Learning

What is Consumer Learning?

Consumer Learning is the process by which individuals acquire the purchase and consumption knowledge and experience they apply to future related behaviour.

Most of the learning is incidental. Some of it is intentional. Basic elements that contribute to an understanding of learning are:

 

  1. Motivation
  2. Cues
  3. Response
  4. Reinforcement

 

There are 2 theories on how Individuals learn:

 

  1. Behavioural Theory
  2. Cognitive Theory

 

Both contribute to an understanding of consumer behaviour.

Behavioural Theorists view learning as observable responses to stimuli, whereas Cognitive Theorists believe that learning is a function of mental processing.

3 Major Behavioural Learning Theories are :

 

  1. Classical Conditioning : Includes Repetition, Stimulus generalization and Stimulus discrimination.                                          
  2. Instrumental Conditioning: Instrumental Learning theorists believe that learning occurs through a trial and error process in which the positive outcomes in the form of results or desired outcomes lead to repeat behaviour like Repeat Purchase or Repeat Positive Word of Mouth.                                        Both positive and negative reinforcement can be used to encourage the desired behaviour. The timing of repetitions influences how long the learned material is retained. Learning usually persists longer with distributed re-inforcement schedule, while mass repetitions produce more initial learnings.                                             
  3. Observational Conditioning or Vicarious Learning:

Cognitive learning theory holds that the kind of learning most characteristics of humans is PROBLEM SOLVING. Cognitive theorists are concerned with how information is processes by the human mind: how it is stored, retained, and retrieved.

Involvement theory proposes that people engage in limited information processing in situations of low relevance to them and people engage in extensive information processing in situations of high relevance.

TV is a low involvement medium for learning and print and interactive media encourage more cognitive information processing.

Measures of consumer learning include recall and recognition tests, cognitive responses to advertising, and attitudinal and behavioural measures of brand loyalty.

A basic issue among researchers is whether to define brand loyalty in terms of consumer’s behaviours or the consumer’s attitude towards the brand. Brand Equity refers to the inherent value a brand name has in the marketplace.

Brand Loyalty consists of both attitudes and actual behaviours toward a brand and both must be measured. For marketers, the major reasons for understanding how consumers learn are to teach them that their brand is best and to develop brand loyalty.

What does your brand mean to your customers? Are they really loyal to your brand? How do you increase their loyalty?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Perception

Perception is the process by which individuals select, organize and interpret stimuli into a meaningful and coherent picture of the world.

Perception has strategy implications for marketers because consumers make decisions based on what they perceive rather than on the basis of objective reality.

Consumers selections of stimuli from the environment are based on the interaction of their expectations and motives wit the stimulus itself. The principles of selective perception include the following concepts:

  1. Selective Exposure
  2. Selective Attention
  3. Perceptual Defense   and
  4. Perceptual Blocking.

People usually percieve things they need or want and block the perception of unnecessary, unfavourable or painful stimuli.

Consumers organize their perceptions into unified wholes according to the principles of Gestalt Psychology:figure and ground, grouping, and closure.

The interpretation of stimuli is highly subjective and is based on what the consumer expects to see in light of previous experience, on motves and interests at the time of perception, and on the clarity of stimulus itself.

Influences that tend to distort objective interpretation include Physical apprearances, stereotypes, halo effects, irrelevant cues, first impressions and the tendency to jump to conclusions.

Just as individuals have perceived images of themselvs, they also have perceived images of products and brands. The perceived image of a product or service is probably more important to its ultimate success than are its actual pysical characteristics.

Products and Services that are percieved distinctly and favourably have a much better chance of being purchased than products or services with unclear or unfavourable images.

Service Marketers face several unique problems in positioning and promoting their offerings because services are intangible,inherently variable, perishable and are simultaneously produced and consumed.

Regardless of how well the product or service appears to be positioned, the marketer may be forced to reposition it in response to market events, such as a new competitor, new strategies of existing competitors, changing market dynamics, changing consumer preferences.

The quality of a product or services is judged on the basis of a variety of informational clues; intrinsic or extrinsic. Intrinsic will be things like size, colour, flavour, aroma, packaging, look and feel. Extrinsic clues will include store image, price, brand image, service environment etc.,

In the absence of the first hand experience or other information, consumers often rely on price as an indicator of quality. How a consumer perceives a price – as high,low or fair has a strong influence on purchase intentions and satisfaction. Consumers rely on both internal and external reference prices when assessing the fairness of price.

Consumer imagery also includes perceived images of retail stores that influence the perceived quality of products they carry, as well as decisions as to where to shop.

Manufacturers or Retailers who generally enjoy a favourable image find that their new products are accepted more readily compared to those manufacturers or retailers who have less favourable or even neutral images.

Consumers often perceive risk in making product selections because of uncertainty as to the consequences of their purchase decisions.

The types of risk that the customers perceived are:

  1. Functional Risks
  2. Physical Risk
  3. Financial Risk
  4. Social Risk
  5. Psychological Risk and
  6. Time Risk.

Customers try for reducing the risk by increasing their information search, buying from reputable retailers, buying the expensive brands, and seeking reassurance in the form of money back guarantees, warranties, and pre purchase trial.

The concept of perceived risk is important implications for marketers, who can facilitate the acceptanc e of new products by incorporating risk-reduction strategies in their new product or service promotional campaigns.

How do your customers percieve you? How do your customers percieve your products? What are you doing to increase the perceptions in your favour.

Talk to us for further support:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Consumer Research – Personality & Consumer Behaviour

Personality can be described as the psychological characteristics that both determine and reflect how a person responds to his or her environment. Although mostly the personality tends to remain consistent and enduring, it may change abruptly in response to a major life events. Personality also change gradually over time.

Theories:

3 theories of personality are prominent in the study of consume behaviour:

 

  1. Psychoanalytic Theory
  2. Neo-Freudian Theory and 
  3. Trait Theory

 

Freud’s psychoanalytic theory provides the foundation for the study of motivational research, which operates on the premise that human drives are largely unconscious in nature and serve to motivate many consumer actions.

Non- freudian theory tends to emphasize th fundamental role of social relationships in the formation and development of the personality.

Alfred Adler viewed human beings as seeking to overcome feelings of inferiorty.

Harry Stack Sullivan believed  that people attempt to establish significant and rewarding relationships with others.

Karen Horney saw inidividuals as trying to overcome feelings of anxiery and categorized them as compliant, aggresive or detached.

Trait Theory is a major departure from the qualitative or subjective approach to personality measurement. It postulates that individuals possess innate pyschological traits to a greater or lesser degree, and that traits can be measured by specifically designed scales or inventories.

Because they are simple to use and to score and  can be self-administered, personality inventories are the preferred mehtod for many researchers in the assessment of consumer personality.

Product and brand personalities represent real opportunities for marketers to take advantage of consumers’ connections to various brands they offer.

Brands often have personalities- some include “humanlike” traits and even gender. These brand personalities help shape consumer responses, preferences and loyalities.

Each individual has a perceived self image or images as a certain kind of person with certain traits, possessions, relationships, habits, behaviours etc., Consumers frequently attempt to preserve, enhance, alter or extend their self images by purchasing products or services and shopping at stores they percieve as consistent with their relevant self image and by avoiding products and stores they percieve as not consistent to their self image.

What are the personalities of your target consumers?

What is your company’s brand image? What is your product/services image?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 91-9375970812

RECESSION STRATEGY – Honour your Vision and Core Values

What should you do when in Recession?

How to Create the right Recession Strategy?

Maybe, more than anytime else, Recession is the time for the companies to be true to their Vision, get more focused on fulfilling their mission and dedicatedly honour their core values.

This is the time, when the companies and their top management are tested by the employees, customers and all stake holders. 

Are they visionaries or are they just another bunch of opportunists?

Do they really have a Vision or they have a Vision Statement as a good PR exercise.

What are their Real Core Values? or are there any core values at all, except self preservation and survival.

The difference between great companies, visionary companies and ordinary companies is very vividly visible in the way they deal with the challenging times like Recession.

This is where the rubber meets the road. This is where the CEO and the board have to walk their talk.

Do all those hours spent in the vision mission exercises mean anything?  OR the vision the first casualty of the recession.

What is the value of the Core Values created by the top management, investing some huge amount of man hours and a great amount to time and money?

All the companies, who will dump their vision and their core values at this time, are being short sighted.

Next Quarter, next financial year, when you would have survived the tough times, when you look back at those people, will you be able to talk big? will you be able to get everyone aligned on any big vision? 

 

How do you honour your values and fulfill your vision – when you are worried about going down?

That is the time, more than any other time in your life, to honour your values and be true to your vision.

This is what differentiates the originals from the fake, the men from the boys, the winners from the also rans.

 

For support contact: MANAGEMENT INNOVATIONS managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

Our Work in Education Field

As management consultants and advisers, we have had the privilege to work on various interesting and esteemed projects in the field of Education.

 

  1. Delhi Public School, Ahmedabad   – a K-12 CBSE School
  2. Calorex Institute of Technology – a VLSI Chip Design Institute
  3. DPS Prerna (DPS Nalanda) – A School for Dyslexic Children
  4. VISAMO – a Special Initiative for children from BPL families
  5. Zydus School for Excellence – a K-12 school from the house of Zydus Cadila.

 

 

Various Activities that we have provided valuable inputs and guidance include:

 

  1. Market Research
  2. Organizational Positioning
  3. Pricing
  4. Marketing
  5. Sales
  6. Staff Selection and Induction
  7. Teaching Staff ongoing Training & Development
  8. Admin Staff and Support Staff Orientation
  9. Customer Orientation
  10. HR & Employee Engagement
  11. Overall Growth and development

 

For further information contact:

MANAGEMENT INNOVATIONS ( erstwhile INNOVATIVE CONSULTANTS)

managementinnovaitons2020@gmail.com;   manojonkar@gmail.com; 91-9375970812

Consumer Motivation

What is Consumer Motivation?

Motivation is the driving force within individuals that impels them to action. This driving force is produced by a state of uncomfortable tension, which exists as the result of an unsatisfied need. All individuals have needs, wants and desires. The individual’s subconscious drive to reduce need-induced tensions results in behaviour that he or she anticipates will satisfy needs and thus bring about a more comfortable internal state.

All behaviour is goal oriented. Goals are the sought-after results of motivated behaviour. The form or direction that  behaviour takes-the goal that is selected-is a result of thinking processes(cognition) and previous learning(e.g. experience).

There are 2 types of goals: generic goals and product-specific goals. A generic goal is a general category of goal that may fulfill a certain need; a product-specific goal is a specifically branded or labeled product that individual sees as a way to fulfill a need.

Product-specific needs are sometimes referred to as wants.

What are Innate Needs?

Innate Needs are those an individual is born with. They are Physiological (biogenic) in nature; they include all factors required to sustain physical life (e.g. food, water, shelter, clothing, sex, physical safety etc.,).

What are Acquired Needs?

Acquired needs those an individual develops after birth are primarily psychological (psychogenic). They include love, acceptance, esteem, and self-fulfillment.

For any given need, there are many different and appropriate goals. The Specific goal  selected depends on the individual’s experiences, physical capacity, prevailing cultural norms and values, and the goal’s accessibility in the physical and social environment.

What is the relationship between Needs and Goals?

Needs and goals are interdependent and change in response to the individual’s physical condition, environment, interaction with other people, and experiences. As needs become satisfied, new, higher order needs emerge that must be fulfilled.

How do People deal with Failure in achieving the goals?

Failure to achieve a goal often results in feelings of frustration. Individuals react to frustration in two ways:”fight” or “flight”. They may cope by finding a way around the obstacle that prohibits goal attainment or by adopting a substitute goal (fight); or they may adopt a defense mechanism that enables them to protect their self esteem (flight). Defense mechanisms include aggression, regression, rationalization, withdrawal, projection,daydreaming, identification, and repression.

Motives & Behaviours:

Motives cannot easily be inferred from consumer behaviour. People with different needs may seek fulfillment through selection of the same goals; people with the same needs may seek fulfillment through different goals. 

Although some psychologists have suggested that individuals have different needs priorities, other believe that most human beings experience the same basic needs, to which they assign a similar priority ranking.

Maslow’s hierarchy of needs theory proposes five levels of human needs; physiological needs, safety needs, social needs, egoistic needs and self actualization needs.

Other needs widely integrated into consumer advertising include the needs for power, affiliation and achievement.

What are the 3 common methods for identifying and measuring human motives?

  1. Observation and Inference
  2. Subjective Reports
  3. Qualitative Research – including projective techniques.

None of these methods is completely reliable by itself.

Therefore researchers often use a combination of 2 or 3 techniques in tandem to assess the presence or strength of consumer motives.

What is Motivational Research ?

Motivational research is qualitative research designed to delve below the consumer’s level of conscious awareness. Despite some shortcomings, motivational research has proved to be of great value to marketers concerned with developing new ideas and new copy appeals.

Consumer Research

What is Consumer Research?

The field of Consumer Research developed as an extension of the field of Market Research to enable the marketers to predict how the consumers would react in the marketplace and to understand the reasons of the various purchase decisions taken.

What is Positivism ?

Consumer Research undertaken from a managerial perspective to improve strategic marketing decisions is known as Positivism.

Positivist research is quantitative and empirical and tries to identify cause and effect relationships in buying situations. It is often supplemented with qualitative research.

Qualitative Research is concerned with probing deep within the consumer’s psyche to understand  the motivations, feelings, and emotions that drive consumer behaviour. Qualitative research findings cannot be projected to larger populations but are used primarily to provide new ideas and insights for the development of the positioning strategies.

What is Interpretivism ?

Interpretivism, a qualitative research perspective, is generally more concerned with understanding the act of consuming rather than the act of buying. 

Interpretivists view consumer behaviour as a subset of human behaviour, and increased understanding as a key to eliminate some of the ills associated with destructive consumer behaviour.

Positivists generally used Probability Studies that can be generalized to larger populations.

Interpretivists tend to view consumption experiences as unique situations that occur at specific moments in time, and therefore, cannot be generalized to larger populations.

These 2 theoretical research orientations are highly complementary and, when used together, provide a deeper and more insightful understanding of consumer behaviour than either approach used alone.

The Consumer Research Process, whether quantitative or qualitative in approach consists of 6 steps:

  1. Defining Objectives
  2. Collecting Secondary Data
  3. Developing a Research Design
  4. Collecting Primary Data
  5. Analyzing the Data
  6. Preparing a Report of the Findings.

The research objectives should be formulated jointly by the marketer and the person or company that will conduct the actual research.

The finding from the secondary data and exploratory research are used to refine the research objectives. The collection of secondary data includes both the sources – internal and external.

Quantitative Research designs consist of 1. Observation, 2. Experimentation or Surveys, and, for the most part, 3. Questionnaires with or without attitude scales are used to collect the data.

Qualitative Research- data collection methods include 

  1. Depth Interviews
  2. Focus Groups
  3. Projective Techniques
  4. Metaphor Analysis.

Customer Satisfaction measurement is an integral part of consumer research.

In large, quantitative studies, the researcher must make every effort to ensure that the research findings are RELIABLE ( that a replication of the study would provide the same results) and VALID (that they answer the specific questions for which the study was originally undertaken).

The selection and design of the sample is crucial since the type of sample used determines the degree to which the results of the study are representative of the population.

After the data collection, the results are analysed and specific analytical techniques applied respectively to qualitative or quantitative data.

How are you applying Consumer Research in your business?

Talk to us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 91-9375970812

Market Segmentation

Market Segmentation and diversity are complementary concepts. Without a diverse marketplace, composed of many different peoples with different backgrounds, cultures,environments,paradigms, thoughts processes, interests, needs and wants, there really would be little reason to segment markets.

Earlier Mass Marketing – selling the same product or service package to everyone, was the most widely used marketing strategy, before the widespread adoption of the marketing concept. In many countries this is still developing and yet to become the part of the marketing and management DNA.

Market Segmentation is to be followed as a logical way to meet customers needs. Market Segmentation is defined as the process of dividing a potential market into distinct subsets of consumers with a common need or characteristic and selecting one or more segments to target with a specially designed marketing mix or product, price, promotion, place etc.,

Besides supporting in the development of new products, Market Segmentation research also supports in the redesigning and repositioning of existing products and services and in the creation of the appropriate promotional materials, including the selection of the most effective media for promotion.

Market Segmentation Strategies benefit both the customers and the marketers, hence they received full support from both parties. Market Segmentation is now widely used by most of the organizations including manufacturers, retailers, channels and even the not for profit sector.

9 Major Classes of Consumer Characteristics serve as the most common basis for Market Segmentation. These include:

  1. Geographic Factors
  2. Demographic Factors
  3. Psychological Factors
  4. Pyschographic Factors
  5. Socio-Cultural Factors
  6. Use -related Factors (Application)
  7. Use – Situation Factors (Environment)
  8. Benefits Expected and
  9. Hybrid Forms of Segmentation like Psychographic-demographic profiles  or geodemographic factors.

Key Criteria for Market Segmentation include:

1. Identification

2. Sufficiency

3. Stability

4. Accessibility.

 

Once one identifies potential target markets, one must decide whether to target 1 segment i.e  concentrated marketing OR to target several market segments i.e. differentiated marketing.

One has to then develop a positioning strategy for each of the selected target segment.

In some cases, one can recombine 2 or more market segments into one larger segments.

How do you Market Segmentation in your company?

MANAGEMENT INNOVATIONS

managmentinnovations2020@gmail.com;  manojonkar@gmail.com; 91-9375970812

Customer and Consumer Behaviour

The study of consumer behaviour enables the marketers to fully understand and be able to predict the consumer behaviours. It deals with not only with what the customer buy, but also with why, when, where, how, and how often they buy it.

Consumer Research is the Methodology that is used to study Customer and Consumer behaviour and it takes place at every stage/phase of the consumption process: before, during, and after the purchase.

The foundation fo the consumer behaviour is the Marketing Concept. Marketing Concept is the business orientation that evolved in the second half of the last century and is picking up more and more in the current environment. Marketing Concept was the evolution of the industry over the earlier concepts of production and product.

The 3 major strategies tools fo marketing are Market Segmentation, Targeting, and Positioning.

The Marketing Mix consists of a company’s products and services offering(S) to customers and the pricing, promotion and distribution methods needed to accomplish the deal.

The Professional Marketers make the customers the core of the company’s culture and ensure that all employees view any interaction with the customers as a part of a Customer Relationship and not just a Transaction. The Top 3 drivers of successful relationships between marketers and customers are customer value, high levels of customer satisfaction, and building a  structure for customer retention.

Consumer behaviour is multi disciplinary, i.e it is based on various theories and concepts about people that have been developed by scientists in such diverse disciplines as economics, cultural anthropology, social psychology, sociology and psychology.

Consumer behaviour has to be an integral part of strategic market planning. 

Contact for further inputs:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;   manojonkar@gmail.com;  91-9375970812

Consultative Sales – First Step – Pre Sales Preparation

Pre Sales Preparation is one of the most under estimated sales tool. Over a period of time, pre sales preparation gets compromised for one reason or the other. There is always some other urgent, seemingly more important work running the clock, and this foundation keeps getting neglected.

Consultative Sales is built on Credibility. Credibility is built on knowledge and mastery. Knowledge and Mastery of one’s own industry, products, services, past projects, difference made to the customers businesses, successes and breakdowns.

One also needs to know the competitors, their products, services, strengths, weaknesses, strategies etc.,

Most importantly, we need to learn the customer’s company, industry, the challenges, the opportunities and what are the best ways that we can make a difference to these potential or existing clients.

Every dollar invested in pre sales preparation will pay back atleast 100 times.

To know what and how you need to do pre sales preparation for your business, feel free to get in touch with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com ;  manojonkar@gmail.com;  91-9375970812

Change Management – First Deal with Harboured Resentments

The impact of Harboured Resentments could be the following:

1. You have traitors in the game, who pretend to be committed to what you are planning, but are secretly waiting for or even planning your failure. You trust them and they will betray you.  If you delegate to them, then it is your funeral.

2. Some of them will be vociferous about their upsets, of course, not the real issues, but some other issues, like why your plans will not work etc., It is good, that atleast these people have been identified by you. They may not be easy to deal with, but atleast you know who they are.

3. The real dangerous people are the ones, who have the harboured resentments, and do not say anything against you. They are the ones, who will pretend to play ball, and at the right time, not do what you expect them to do, or, work behind your backs and create strategic attacks on you. This is very difficult to deal with and almost impossible to address once they have begun their attacks. The only time, you can be effective is , if you can identify them and get them to be transparent and get their issues addressed. Otherwise you have neutralize them, marginalize them or even remove them – even if they are otherwise good capable people.

Ignore this at your own peril.

For help in identifying these kind of people in your organization, you can get in touch with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;     manojonkar@gmail.com ;     91-9375970812

Key Challenge of Change Management & How to deal with it

There are innumerable challenges in any Change Management Processes, whether the change management is in a for profit or not for profit organization.

The key factor that everyone knows for change management is People.

But, what may not be known is the real challenge in dealing with People. The real challenge in most cases is the harboured resentments. Harboured Resentments may be for any reasons, may be against anyone, against the person leading the change movement or the top management, or the old management.

Harboured Resentments are very difficult to be dealt with since, most of the times, one does not even know who has what harboured resentment, and naturally, the person concerned is not communicating the same.

Most Change Management efforts fail or give less than optimum results because of the Harboured Resentments.

Some things that one can try to deal with the challenge of Harboured Resentments are:

  1. Before starting any change management exercise, make a list of people involved in the current situation and how they could be affected by the change. What kind of conversations they are having for this change? Who are they blaming and for what? what are they upset about? what is taking away their attention? where are they getting stuck?
  2. Get all the reasons for the proposed change up on the table and have everyone empty the cup with regards to the need for the change.
  3. Ensure that the environment of Blame on anyone, is dealt with and everyone is trained and enrolled to communicate. Tell everyone that there will be Harboured Resentments and if they do not speak up and they do not get complete it for themselves, it will come in the way of the performance.
  4. Each Person has to be encouraged continually for being in full communication and any upset or potential upset has to be resolved with urgency.
  5. Teamwork and clear cut accountabilities for each and every person will help.
  6. Creating small winnable games for the teams to start experience winning.

For further inputs on this aspect of Change Management, please be in communication with us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com,  manojonkar@gmail.com, 91-9375970812

Some More Information on Courses available at Landmark Education

As a lifetime participant and a person assisting, we have found most of the courses available at Landmark education to be very rewarding and enriching.

The curriculum for living has the following courses:

1. The Landmark Forum

2. The Landmark Forum in Action ( Seminar Series)

3. The Landmark Advanced Course

4. The Landmark Self Expression and Leadership Course.

 

The Graduate Curriculum has approx 16 different 10 session seminar series on various topics like:

Money, Relationships, Effectiveness and Velocity, Living Passionately, Being Extraordinary. Breakthroughs, Commitment – Power of the Word, Integrity, Sex & Intimacy, Beyond Fitness.

The Communication Curriculum has various Courses inlcuding:

Communication – Access to Power     and

Communication – Power to Create.

There are also other courses like Team Management and Leadership Program,

Landmark Forum for Young People

Wisdom Course.

For Corporate Transformational Work: there is Landmark Education Business Division, now called the VANTO Group.

For further details contact a local Landmark Education Office or visit http://www.landmarkeducation.com

Happy Customers:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com, manojonkar@gmail.com, 919375970812

Recommended Education for All – Landmark Education

We spend 16 years for our Schooling and Education that enables us to earn a living.

Landmark Education provides Learning for Living a Life you love and Living Life Powerfully.

The education starts with a 3 & 1/2days and the whole curriculum can be completed within 6 months or so.

Please check the website: http://www.landmarkeducation.com

The education is based on the science of applied philosophy and ontology. People get free from the constraints of the past on the thinking and view of life and allows them to create their life, and each and every aspect of their life.

It is available in more than 150 cities globally.

MANAGEMENT INNOVATION,

managementinnovations2020@gmail.com, manojonkar@gmail.com, 91 – 9375970812

Books: E-Myth Mastery and Awakening the Entrepreneur within

Some other good books from E-Myth and Michael Gerber.

  1. E Myth Mastery – The 7 essential disciplines for building a World Class Company
  2. Awakening the Entrepreneur Within

Websites:

http://www.e-myth.com

http://www.emythmastery.com

Must read for all entrepreneurs and all those inspiring to be entrepreneurs.

How to create organizations which are run by systems and those systems are run by people, instead of self dependent organizations or people dependent organizations.

The guideline is to WORK ON THE BUSINESS and not just  IN THE BUSINESS.

From time to time, we will be recommended various books and reading materials. We will not have any connections with them, except when categorically mentioned.

We are exploring some such strong concepts being brought into the markets like India through National Collaborations. We are in touch with such like minded organizations and will keep you updated on the developments.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

http://www.linkedin.com/manojonkar

TOWS – Threat, Opportunity, Weakness, Strengths

SWOT has been the standard approach for any business analysis and personal analysis.

Now the trend is to look at the Threats first, and hence the reverse approach to start with T O W S.

SWOT can be said to be Inside out way of thinking and TOWS can be said to be the outside in way of thinking.

Today, in discussion with one of the clients, we were discussing THREATS of TOWS in further details.

THREATS:

  1. Threats can be to the current state as well as to the desired future state.
  2. Threats can be to current market share, customer base, revenue, profitability, manpower, resources, channel and other key factors.
  3. Mapping all possible threats may be a good starting point. One must map all possible threats including the ones, that you are currently able to manage successfully.
  4. Mapping all players, all key stake holders, all constituency will help you generate awareness.
  5. Mapping all possible direct and indirect competition and their strengths is difficult but very useful.

For further details contact us at

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

http://www.linkedin.com/in/manojonkar

Complaints and Unfulfilled Expectations against Management Consultants

We invite all of you to write to us on managementinnovations2020@gmail.com or on this blog, based on your first hand experiences, what have been your moments of dissatisfaction, what have been your complaints, where you have found the Management Consultants not delivering your expectations, where have you found them not in your world.

The opportunity is to share and create awareness and also get inputs on what to do in such situations. 

This would be a WIN WIN for the clients and the consultants reading this blog.

Requested to avoid the names of the consultants and the consultancy firms.

MANAGEMENT INNOVATIONS

managmentinnovations2020@gmail.com; manojonkar@gmail.com, 919375970812

Recommended Readings for Recession Times

If you have not read by now, or even if you have read it once, good time to re- read the extra ordinary book and concept by Management Guru – C.K. Prahlad – “The Fortune at the Bottom of the Pyramid”.

The biggest innovations in the management field have been the new, out of the box, revenue models and business models.

Fortune at the Bottom of the Pyramid concept gets companies access to markets, which were generally not even considered as potential markets ( and of course they are the bigger ocean).

Companies will have to rethink their business models, but those new business models created for tapping the bottom of the pyramid may alter the history of the enterprise as well as the industry and it has a parallel opportunity to make a big difference to the society, while taking care of the stake holders and the stock holders requirements.

Along with that we also recommend the book BLUE OCEAN STRATEGY.

Using both the books as reference points, one can create a unique strategy which will help the companies whether small or big, to emerge as WINNERS in the current times as well as in the future to come.

MANAGEMENT INNOVATIONS,

managementinnovations2020@gmail.com ;  manojonkar@gmail.com ; 919375970812

How are you using Social Networking sites?

Are you using social networking sites for expanding your business, finding potential team members, finding potential service providers with the right references, finding the best sales channel, best technologists,best consultants?

do you want to use social networking sites to build your business, find new customers, do subtle marketing?

Contact us

Management Innovations

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

How are you leveraging the Net for your Business?

Do you have a product with good brand recognition in the offline world, but do not have much online presence?

How many customers are coming to you because of your online presence?

How much percentage of your business is happening because of your online marketing?

What is your online marketing strategy? do you want to brainstorm with us on what is possible in the area of using online marketing to expand your business?

Do you want to do market research?

Do you want to create parallel sales channel?

Do you want to get across the a new customer segment?

Do you want to supplement your advertisement with online activites which draw potential customers to you?

Talk to us

Management Innovations

managementinnovations2020@gmail.com

manojonkar@gmail.com

919375970812

What is your vision? What is your dream?

What is your dream and vision for your organization, we are here to support you in fulfilling the same.

Write to us on managementinnovations2020@gmail.com

If you want support in articulating your vision? Getting clear on the plans for your business?

or creating strategies for your business growth or dealing with any other challenges like Marketing/Sales/HR/Systems/Processes/Training

feel free to write/talk to us.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com

manojonkar@gmail.com

91-9375970812

RECESSION – Shortage of Ideas

Recession can also be looked upon as an environment, in which industries have stopped causing enough value addition to its client base.

Recession is, where the value of your services go down drastically and the premium that you were once expecting, same products and services are now being sold at discount and at some level, are not even being sold at discount, they have become of very less utility in the current environment.

Maybe recession is a function of an industry not having been innovating rapidly enough and the customers have now not been finding enough value for money or as critical.

Client Centric Innovation, moving 1 curve ahead of the industry is what would allow the company to be able to serve the customers in their tough times, and thus avoid the tough times for oneself.

Most of the times, customers do not stop needing things, they just need the same things in a little different way:

1. Special Rates 2. Special Packages 3. Special Combos 4. Special Product range 5. Economy product range 6. Products / Services which the customers would be interested to buy even now by the virtue of effective cost of ownership and cost of usage.

e.g. Low cost housing in the  Construction Industry, High fuel efficient cars at the same price points as the low mileage cars

THE NEW CLIENTS:

Innovation is also required for making your products available to the customer bases that you have not been targeting initially.

Some new applications, some modifications, some new paradigms can create a once in a blue moon idea, which will alter the future of the company.

All the brains in the company need to be tapped for such innovations or possibilities exploration.

Top Management involvement and commitment is critical for developing such a culture, where people are not operating from the recession of ideas.

May be recession of ideas lead to recession of possibilities lead to recession in the markets.

And a new wave of ideas is going to create a new wave of possibilities and a set of new opportunities in the market.

Cost Cutting – How and Why? Are you cutting your flab or your arm?

Cost Cutting is very important in a slow down but at the same time, one has to ask oneself are you cutting down costs or are you cutting down your muscle, your strengths.

Right Sizing is important. Are you cutting down the non- productive people, or are you cutting the non-political people?

Are you cutting people or are you cutting the wastage in the processes?

Is your efficiency increasing or are you just increasing the stress on the current people?

Are you firing people in a way that leaves the existing people searching for their jobs, even when you wanted to retain some of those key people.

System and Processes fine tuning and powerful implementation is important for sustained growth right now and over time.

For guidelines on cost control and recession management, talk to us:

managementinnovations2020@gmail.com; 919375970812

Old Customer Relationships for dealing with the Economic Slowdown

STRENGTHEN YOUR RELATIONSHIPS WITH THE OLD CUSTOMERS:

In a growing economy, you can focus on the new business and can survive and even grow without having to fully serve the old customers. The Customer Relationships and the Loyal Customer Base becomes the lifeline for surviving the Recession.

If you have been maintaining great sustained well managed relationships with your current and old clients – great, fantastic. If not, wake up, before it gets too late.

Call up all your old clients. You call up. Do not delegate to some new sales person. You have to provide the best space to make this work. Find out who in the company has the maximum rapport with this old client and have them help you create the bridge.

Talk to the clients, find out what are they upto, findout new opportunities to serve them. Give Positive energy to all of them, irrespective of their immediate business opportunities and build rapport which will not only last you something in the next month but will help you to not only survive the recession, but will also help you grow phenomenally, the moment the market starts opening up.

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

SPIN SELLING

Spin Selling by Huthwaite UK is one of the highly researched sales models.

Neil Rackham also has published books on SPIN SELLING including Handbook of field Sales.

We can support companies in converting all their marketing and selling in alignment with the principles of the SPIN selling models.

The Presales, the Appointment Process, the Understanding Client Needs, the Expansion of the Client Needs and Problems, the Science of Proposing a Solution, the Negotiation and the Sales Closing Techniques as well as the Post Order Process can be made all in alignment with the principles of SPIN SELLING system.

SALES TRAININGS – GUIDELINES

What kind of topics are required to be covered in the sales trainings?

How long is the Sales training supposed to be?

What is the required frequency of the Sales training ?

First things first.

* Do the Sales Team have the basic communication skills, if not, deal with that immediately or find repalcements.

* Train them into the following things:

  1. The Products and Services offered by the Company.
  2. How are the Products Manufactured and the Services Delivered.
  3. All Sales People should know a little about each department and how it works and what is its role and what are their strengths.
  4. Sales Team should know the complete history of the company, its past products, services, markets covered, key customers, successes, accomplishments, awards, testimonials etc.,
  5. Sales team should be fully exposed to how the customers use the products and services and how the customers are benefited by the use of your products and services.
  6. The detailed understanding of the customer, customers business, customer’s challenges and opportunities, customer’s industry, SWOT and TOWS of the customer and their industry etc., can make a sales person graduate to being a sales consultant.
  7. Knowing about the company’s past clients, past projects, portfolio, industry presence, key accomplishments, recognition, collaborations etc., will help the sales person represent the company in a more effective way.

Consultative Sales

Consultative Sales methods like SPIN Selling, Action Selling and other world class sales methodologies are important not only for the sales team, but for actually the whole company.

One of the top management consultants had once mentioned – how many sales people should be there in a company. As many as the No. of staff that the company has.

It means that each and every person, whatever is the role, has to think from the customer perspective also, al the time.

It would be a good idea to have key people from all the departments trained and exposed to such thinking.

Consultative Sales (Customers come to you during Recession also)

Like you go to the doctors, when you have a problem.

Consultative Sales will help you get connected and engaged with the customers to the level that they would come to you first for solving the problems that they are facing.

Sales Training, Pre Sales, SPIN Selling, Consultative Sales, Proposal Making, Proposing Solutions, Negotiations, Closing techniques are couple of areas where we will support.

SALES, MARKETING & MARKET RESEARCH (Make your company recession proof)

Sales, marketing, market research are a dynamic cycle of continuous study and implementation.

Researching the various target customers based on our best ability to serve their needs in the most effective manner, creates a great relationship between the customers and the company.

As the customer needs keep changing, mapping the needs on a regular basis, re-evaluating the service offerings, customizing the solution packages, fine tuning the delivery mechanism are regular requirements.

Stronger brand awareness, stronger customer engagement, the integration into the customers life style (personally or professionally), becoming indispensable by solving their mission critical problems and supporting them in fulfilling their dreams and visions.

Geographical reach along with strong segmentation and mapping each segment is important.

This is one of those make or break areas of the organization where the top management has to be keenly involved.

Strategy Implementation – BSC (Balanced Scorecard way)

Balanced Scorecard by Dr. Robert Kaplan and Dr. David Norton is one of the strong tools available currently in supporting the companies to get clear of their strategy and to do holistic, organization wide implementation. Strategy Maps and Balanced scorecards are very useful tools for strategy planning, communication, monitoring, evaluation, course correction and overall implementation.

Ensuring that the strategy implementations is done powerfully on all the 4 perspective of Finance, Customer, Process and Capability perspectives, organizations can ensure that on a daily basis they are moving forward in the strategy implementation.

Highly committed and transformed organizations also have couple of other dimensions including Impact on Society.

Different organizations depending on their genre will have different focus, e.g. government, NGO and similar organizations may not be highly focused on the financial perspective.

R&D organizations, Manufacturing Organizations etc., may have extra focus on the process perspective.

“Learning organizations” may focus more on the capability, learning and growth perspective.

But each and every organization committed to sustainable growth have to have balanced growth.

Team alignment, each department scorecard, each individual scorecard, the vertical and horizontal alignment and the lead and lag measures are very useful dimensions of implementing strategy the BSC way.

Need support in creating or implementing your strategy?

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com

919375970812

Strategy Creation – SWOT, TOWS & Blue Ocean Thinking

Strategy creation begins with SWOT or actually better is TOWS i.e. SWOT in reverse.

Starting with Threats, Opportunities, Weakness and Strengths.

As we facilitate the TOWS analysis, you will see lot of inputs on which you can create the strategy.

Industry Analysis, Competition Analysis and Blue Ocean Thinking.

Organizational Strategy will also include product strategy, marketing strategy, finance strategy, hr strategy, sales strategy, production strategy etc.,

 

For help on implementing SWOT, TOWS and other Strategy creation and implementation processes, contact us:

MANAGEMENT INNOVATIONS

 managementinnovations2020@gmail.com; manojonkar@gmail.com;

919375970812

How we help you implement your vision,mission and values

  • An original authentic vision is always easy to share with passion and get people’s alignment.                                                                 
  • You will be guided on how to share your vision effectively and get your people on board.                                                                                   
  • Re-evaluating each work done on a day to day basis and differentiating between which is forwarding the mission and the vision and is in alignment with the Core Values and what is not.        
  • Identifying the most critical actions and conversations required in your organization for the fulfillment of the vision, mission and honouring the core values.                                                        
  • Creating a clear list of WHAT’S ON and WHAT’S NOT ON in the organization.                                                                                                             
  • Education, Education and Education for the team.                                   
  • Seniors walking the talk.

For detailed inputs on Creating and Implementing Vision and Mission, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

How we help you create your Vision,Mission & Core Values

We do not believe in Vision Statements and Mission Statements. You want some good statements, please search on google, get some interesting ones and play with words and create a good one for yourself.

We are interested in VISION and not just Vision Statement.

VISION is not available in the search on google. Vision is available on search in your self, your dreams, your ambitions, your values, your priorities and your view of life.

We will guide you to explore and get in touch with your real vision and how you can have your enterprise be fulfilling that vision.

An authentic vision, when shared, creates full enrollment and inspiration for the team members and staff. Alignment becomes easy and you can deal with the next step that is Strategy.

For more information contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com; 919375970812

For Educational Institutions

Educationists and Educational Institutions are our first love.

We have full understanding of the various challenges faced by you.

We have worked with half a dozen institutions and have helped them setup, grow and flourish.

Some of the Educational Institutions that we have worked with include:

  • DPS (Delhi Public School, Bopal)
  • Calorex Institute of Technology
  • DPS Prerna (DPS Nalanda)
  • Visamo Kids Foundation
  • Zydus School for Excellence
  • Vivekananda Institue of Indian Management

Check our list of services on the home page.

Looking forward to create magic in your institutions.

This will be our service to society.

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com

manojonkar@gmail.com

919375970812

For Government, Associations & NGOs

  • Inside of our commitment to make a big and lasting difference, we consider it our privilege to be able to support various initiatives of the government, associations and the NGOs.                     
  • Authorised persons who have to right to represent the concerned departments are encouraged to get in communication with us directly.                                                                        
  • We will go out of our way to contribute and make a difference to your projects.

Please check the home page for our services list.

Some of the Related Organizations that we have worked with include:

  • VISAMO KIDS FOUNDATION
  • CALOREX FOUNDATION
  • RAMANBHAI FOUNDATION (Zydus)
  • VIVEKANANDA FOUNDATION FOR INDIAN MANAGEMENT.
  • GCERT (Gujarat State Council for Education, Research and Training) – through their Gandhinagar DIET (Distrinct Institute of Education and Training)

Also check: http://www.linkedin.com/in/manojonkar

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com

919375970812

For Entreprenuers

  1. We love supporting entrepreneurs, specially the ones who are willing to learn the world class management systems and grow their organizations systemically.                                                                         
  2. We have some extra ordinary contribution planned for you.

Please check our list of services on the home page.

Also check profile in the blog.

Linkedin : http://www.linkedin.com/in/manojonkar

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com

919375970812

For SME

  1. Compete with the biggies, by getting the best management advice from experts.                                                                                                     
  2. Break the shackles.                                                                                                         
  3. Dream Big and Achieve it.

Check our Set of Services and our Profile on this blog.

Also check http://www.linkedin.com/in/manojonkar

 

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com;  manojonkar@gmail.com

919375970812

FREE ADVISORY SERVICE – Consulting,Mentoring,Coaching,Training & Counselling

An Experiment in Open Source Consulting.
We are starting a breakthrough concept. FREE CONSULTING, MENTORING, COACHING & COUNSELLING.
We will start with free consulting online on a wide variety of topics:

  1. VISION, MISSION & CORE VALUE – creation and org. alignment
  2. GROWTH STRATEGY
  3. OD, CULTURE BUILDING, LEADERSHIP DEVELOPMENT
  4. PROCESS CONSULTING
  5. MARKETING (offline, online & eCommerce)
  6. SALES
  7. HR
  8. TRAINING (Sales, Customer Care, Marketing, Leadership, Soft Skills,Attitude, Team Work etc.,)

Terms and Conditions for FREE Consulting Services

Terms and Conditions for FREE Consulting Services: 

  1. Consulting Services available will include Consulting,Mentoring,Coaching, Training, Counselling.
  2. All companies and individuals requesting the FREE Consulting will be sending the details of their company and the topics on which they want these advisory services by email or on the blogs.
  3. For any further clarity on any of the responses provided, the concerned companies and individuals will have the freedom to be in communication on email/blog again without any charges whatsoever.
  4. In extra ordinary circumstances, telephonic services may be provided on the sole decision of Management Innovations.
  5. Customers using these services are expected to be sharing back the results and progress that they accomplish utilizing our services and we expect to get testimonials and recommendations from them.
  6. Management Innovations will reserve all the rights to use the database for its website or blogs as client profiles and client testimonials. But no information will be shared with any other party. We are completely against SPAM and will not do or allow anybody to do any spamming.
  7. All the advisory services will be given to the best of our ability and based on the information shared. Management Innovations and the consultants involved will not have any liability towards the actual implementation or the actual results and that will remain the complete responsibility of the company and the people involved.
  8. For any further clarification, please feel free to ask on the blog or by email to managementinnovations2020@gmail.com

 

PETER DRUCKER on Setting Management Objectives

Peter Drucker believed that the survival of the company was at risk when managers emphasized only the profit objective because this single objective emphasis encourage managers to take action that will make money today with little regard for how a profit will be made tomorrow.  

8 key areas in which managers should set management system objectives are:
  1. MARKET STANDING: Management should set objectives indicating where it would like to be in relation to its competitors.                                                                                                         
  2. INNOVATION: Management should set objectives outlining its commitment to the development of new methods of operation.                                                                                             
  3. PRODUCTIVITY: Management should set objectives outlining the target levels of production.                                                                                                                                                     
  4. PHYSICAL & FINANCIAL RESOURCES: Management should set objectives regarding the use, acquisition, and maintenance of capital and monetary resources.                                              
  5. PROFITABILITY: Management should set objectives that specify the profit the company would like to generate.                                                                                                                               
  6. MANAGERIAL PERFORMANCE & DEVELOPMENT: Management should set objectives that specify rates of worker productivity as well as desirable attitudes for workers to possess.                                                                                                                                                  
  7. WORKER PERFORMANCE & ATTITUDE: Management should set objectives that specify rates of worker productivity as well as desirable attitudes for workers to possess.                                        
  8. PUBLIC RESPONSIBILITY: Management should set objectives that indicate the company’s responsibilities to its customers and society and the extent to which the company intends to live up to those responsibilities.