In a market where famous brands rule, a start-up can have quite the difficult time attracting the attention of the average citizen. While it is a challenge, it is not impossible- all large brands started somewhere. It is also worthy to acknowledge that the small business will not have an extravagant marketing and advertising budget. There are however plenty of free- or inexpensive- ways to have people paying attention to your brand.
There are many occasions in life that require the use of a licensed notary. It can be essential for binding legal documents and contracts. While many people believe these typically involve a notarized document for the benefit of the receiver of the document, there are important benefits for signers. The truth, is notarized documents provide an important verification process for those people having items notarized as well as the recipients of documents that are being notarized.Continue reading “Understanding The Importance of Having Documents Notarized”
The young generation of India is smart, vibrant, and capable. They have the strength and willpower that can take them places. And when it comes to studies, Indian students are excelling in every stream. Many global universities have seen a steady rise in the number of Indian students enrolling for post graduation degree courses away from their home country. This is because the Indian job market welcomes a degree from a top international university as compared to an Indian’s Bachelor’s or Master’s degree. Although, getting admission in an International Institution can be a hard nut to crack.
Shipping a product is one of the key elements of the fulfillment services. However, for small and medium business this is the trickiest part as they have to reduce their cost & also maintain a position in the growing competition. The catch here lies in economical ways of shipping inventories.
Predictive pricing supposedly came from the Japanese rice exchanges in the 17th century, analyzing rice stock to characterize stock market behavior and make predictions about future prices and trends. Today, retailers use the strength of algorithms to establish optimal prices and generate revenue. What are some of the biggest changes that machines have made in retail?
One of the most crucial steps to profitability and success for any business is to distinguish itself from the competition. By achieving a high level of visibility and maintaining it, a business can easily attract a lot of potential customers, which may then go on to become a part of their loyal customer base.
Do you have an employee with an ambiguous job title? Think of someone who has been with the company for countless years and does a great job, even if you are unsure of what they do. Now imagine losing that employee.
Many companies exist in this kind of limbo-stage, where they are highly reliant on a specific employee, but don’t fully understand their entire job purpose until the employee retires or moves on. As an employer, it is critical that you identify the qualities and tasks put on these employees before you lose them. Continue reading “3 Tips for Preserving Company Knowledge”
Since the beginning of the 21st century, former presidential candidate and vice president Al Gore travelled the world raising awareness about the effects of global warming. In 2006, his world famous movie “An Inconvenient Truth” hit the movie theatres and people from all over the world flocked to the movie theatres to watchthis movie. It showed how the polar ice cap is melting away and demonstrated very real evidence of what will happen if the ice cap disappears completely. Al Gore’s documentary explains that one of the results of the melted polar ice cap is that all of the freshwater willrun into the sea and slow the Gulf Stream down. The worst-case scenario is that the Gulf Stream will eventually stop flowing. The effects on the northern European climate will be catastrophic as the Gulf Stream is responsible for the summers in northern Europe, and without it there is a very real possibility that the warm summer weather will disappear. Continue reading “The art of saving our planet”
All industries are covered by legislature governing their operational responsibilities. These responsibilities may include anything from finances and employee rights, to health and safety or manufacturing guidelines. The very nature of regulatory responsibilities means that they are, for the most part, governed by law. Therefore, not adhering to them could spell disaster for your company and your employees, not to mention any third parties involved in whichever regulated procedure is being neglected. Continue reading “Is Your Business Meeting Its Regulatory Responsibilities?”
Strategic management literature has established multiple popular frameworks which are used by decision makers to develop a roadmap for business strategy. Some of the popular frameworks for business strategy are Porter’s 5 forces model, BCG / GE McKinsey Matrix, PEST analysis and the Ansoff Matrix. However, all these frameworks focus on factors which are external to the firm. In this article, however, we focus on the frameworks which are a mix of the external view of the macro-environment and the internal view of the strengths and weaknesses existing within the firm, namely the Industry Structure view, the Resource based view and the Relational view of the firm.
The Industrial Structure view is somewhat more macro-industry focused. It postulates that firms operate in an environment of competitive forces of rivalry and forces involving barrier of entry (even exit). In general industry structure refers to the distribution of firms in an industry. The existence of a large number of firms in an industry both reduces and increases opportunities for coordination among firms in the industry. Depending on the degree of consolidation or fragmentation in the industry, the macro-economical dynamics affect the firm’s competency in how it deals with the forces of competition.
In contrast, the Resource based view is somewhat more internal focused. It stresses that the competitive advantage of a firm lies primarily in the application of the bundle of valuable resources at the firm’s disposal. To transform a short-run of competitive advantage for a firm to a sustained competitive advantage is like winning both the battle and the war. It requires creation of resources which are heterogeneous in nature and not perfectly mobile across competing firms. This again translates into the fact that the value of these resources arise from the criticality that they are neither perfectly imitable nor substitutable without great effort.
Similarly, the Relational view is a theory for considering networks and dyads of firms interlinked within the daily intercourse of business transactions, as the unit of analysis to study and frame strategies for sustainable competitive advantage. The relational view argues that idiosyncratic inter-organizational linkages are the sources of competitive advantage, whereby relationships play a major role in development and exploitation of competencies in an industry that is traditionally highly competitive.
In the next diagram, a comparative analysis of these important theories has been presented., which present how these theories are not only different, but also complement each other by taking a different lens to view the competitive landscape for a strategic decision maker.
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The Balanced Scorecard (BSC) is a framework for strategic management, used to monitor and align performance of an organization or a division of the same. It is a semi-standard yet more or less structured report, supported by some established design methods and tools, that can be used by management executives to keep track of the execution of plans / assignments by the staff within their control and to evaluate the possible consequences arising from the execution of these plans. Introduced by Robert Kaplan (Harvard Business School) and popularized by Bain & Company, the Balanced Scorecard has become one of the most popular frameworks for project monitoring and management and align the same to the vision and mission of the organization, be it an industrial, government, or nonprofit organization.
Ref: Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System”, 1996, Harvard Business Review, Vol. 76.
There are 4 major process that needs to be balanced in BSC:
- The Learning & Growth process
- The Business process
- The Customer process
- The Financial process
The learning and growth process involves all the plans and programs an organization or a department is undertaking in terms of training and development related to both individual and corporate self-improvement. It extends the concept that in a knowledge based organization,people or the human resource is the most critical resource to organizational development. This section posits the use of metrics to evaluate performance, progress and development of the human resources of an organization.
The Business Process takes into consideration to develop metrics to measure the performance of the internal processes of an organization. It helps to map development in process efficiencies with incremental changes in internal processes. Process management metrics and workflow management metrics are used in this process to evaluate performance vis-a-vis improvements. Incremental improvements the the processes in terms of meeting targets (say process efficiencies) are measured and how the implementation of plans to meet such targets were conducted, is scrutinized in this process.
The customer process takes into account the philosophy of customer orientation in an organization. In current times, there has been an increasing realization of the importance of customer focus and customer satisfaction in any business. The focus in this process is predominantly Customer Lifetime Value management and in the next stage, harness the Customer’s network value. Incremental improvements in each objectives in terms of meeting targets is measured and how the implementation to meet such targets were planned, is scrutinized in this process.
The financial process is another crucial dimension in the BSC. Although managers using the BSC do not have to rely solely on short-term financial measures as the most important indicators of the division’s performance, financial measures are none the less, extremely relevant and are often recognized as the most critical process by many practitioners. Measures such as financial ratios, total revenue from sales, total cost, cost structure improvements, and indirect sources of revenue are scrutinized against their targets, in this process.
These processes are mapped against each other to check how the organizational vision and mission are being adhered to within a division while implementing ploys and strategies. These help in providing a way to construct a concrete step-by-step path of development for the executives of a division or of an organization.
However, the limitation of the Balanced Scorecard is that it has been severely criticized by scholars for its inability to link a company’s long-term strategy with its short-term ploy. It has become overused in many organizations, sometime not in the most desirable way, as it was conceived when developed.
industry, government, and nonprofit organizations
PEST analysis stands for “Political, Economic, Social, and Technological analysis“. It is a framework for Strategic analysis of markets to evaluate macro-environmental factors used in the environmental scanning component. Some analysts add the Legal factors to the analysis.
Thus when the PEST analysis is expanded to incorporate legal and environmental factors; this is called a PESTLE analysis or a PESTEL analysis.
- Political factors pertain to how the government intervenes in the economic functioning of the country (market) and more specifically how it affects the firm strategic decision making. Political factors such as tariffs, tax policy, labor laws, trade restrictions,environmental law, and political stability. Political stability is a major factor which affect the firm’s strategic decision making and overall legal framework.
- Economic factors consists of interest rates, government bond rates, risk free rate of interest, economic growth, inflation rate (adjusted) and exchange rates. These factors have major impacts on how a firm can operate in a market. Inflation rate and potential GDP affect the demand and prices of goods.
- Social factors include the cultural dimensions of the population in which the firm will operate and include gender consciousness, gender based product/service bias, population growth rate, age spread, health consciousness, career attitudes and risk appetite of the target segment.
- Technological factors consists of factors such as research and development focus in general industries, intellectual property protection laws, technology adoption rates, change assimilation culture, automation and the rate of technological change. They affect entry barriers, technology enabled products and service assimilation, product prices, quality, and innovation.
- Environmental factors consists of factors like ecological and environmental aspects such as forestry and climatic conditions which may especially affect industries such as tourism, farming, and insurance.
- Legal factors focus on discrimination laws, intellectual property protection laws, labor laws, consumer laws, antitrust laws, employment laws, health laws, safety laws and social security laws which can affect how a firm operates, its bottom-line (cost structure) and the demand and distribution for its products and services.
The PEST framework has been recognized as an extremely popular framework for market analysis. It is a part of the external analysis conducted while demonstrating an in-depth strategic analysis during new market entry or doing market research for a new product launch or even sometimes during a product extension, and gives an overview of the different macroenvironmental factors that the company has to take into consideration. It is a useful theoretical tool for estimating market growth or decline, business position, potential and direction for operations.