MANAGEMENT NOTES

Qualities of a Good Salesman 1. Courtesy: A salesman should always be polite and courteous towards his customers. It costs nothing but wins permanent customers for the product. He should help the customers in making the right choice or in selecting the products. This will definitely help in winning over the confidence of the customers. 2. Good behavior:   A salesman should be co-operative and courteous. Good behavior enables one to win the confidence of the customers. He should not feel irritated if the buyer puts up many questions even if the questions are irrelevant. It is also not necessary that the person he is trying to convince buys the products. A salesman has to remain courteous in every case. 3. Social Qualities: A salesman should be social and have the ability to mix up with people. He should have the patience to listen to the customers and understand their needs. He should be polite and humble in talking to the customers. He should remain courteous with the customers t...

  Porter's Generic (Competitive) Strategies Michael Porter's Generic Strategies are a useful framework for organizations to identify a potential niche in which they can gain a competitive advantage in any industry.  The Generic Strategies Each of these is an example of a  Generic Strategy , as coined by Porter. They are referred to as generic as they can be applied to products, services across all industries, and in organizations of a variety of sizes.  These initial strategies as described by Porter were:  Cost Leadership   (cheap, no expenses),  Differentiation   (unique or premium products) and  Focus   (a specialized service or market). He later sub-divided Focus into two different strategies:  Differentiation Focus   (unique strategy differentiation in a focused market) and  Cost Focus   (lower costs in a focused market).  1. Cost Leadership This strategy generally consists of an organization attemp...

  Levels of Business Strategy The business goal is achieved by the effective execution of different business strategies. While every employee, partner, and stakeholder of the company focus on fulfilling a single business objective, their activities are defined by various business strategies according to their level in the organization. Level 1: The Corporate Level The corporate level is the highest and most broad level of the business strategy. It is the business plan which sets the guidelines of what is to be achieved and how the business is expected to achieve it. It sets the mission, vision, and corporate objectives for everyone. Level 2: The Business Unit Level The business unit level is a unit-specific strategy which differs for different units of the business. A unit can be different products or channels which have totally different operations. These units form strategies to differentiate themselves from the competitors using competitive strategies and to alig...

  Business Strategy A business strategy can be defined as the combination of all the decisions taken and actions performed by the business to accomplish business goals and to secure a competitive position in the market. It is the backbone of the business as it is the roadmap that leads to the desired goals. Any fault in this roadmap can result in the business getting lost in the crowd of overwhelming competitors.

  Advantages of SWOT Analysis a.      It is a source of information for strategic planning. b.     Builds an organization’s strengths. c.      Reverse its weaknesses. d.     Maximize its response to opportunities. e.      Overcome the organization’s threats. f.       It helps in identifying the core competencies of the firm. g.      It helps in setting objectives for strategic planning. h.     It helps in knowing past, present, and future so that by using past and current data, future plans can be chalked out.

  Swot Analysis Definition:   SWOT stands for 'Strengths, Weaknesses, Opportunities and Threats'. This is a method of analysis of the environment and the company's standing in it. 1. Strengths-   Strengths are the qualities that enable us to accomplish the organization’s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. 2. Weaknesses -   Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on organizational success and growth. Weaknesses are the factors that do not meet the standards we feel they should meet. 3. Opportunities - Opportunities are presented by the env...

  PESTLE Analysis The PESTLE analysis is another environmental scanning techniques that help provide insight into the external situation of an organization from many different angles. It focuses on political, economic, social, technological, legal, and environmental factors. Political factors  – The  impact of government policies, trading policies or elections.  Economic factors   – The impact of economic trends, taxes, or import/export ratios.  Social factors  –  The  impact of demographics, lifestyles, or ethnic issues.  Technological factors   – The impact of advancing technology or technology legislations.  Legal factors   –  The  impact of employment laws or health and safety regulations.  Environmental factors  –  The  impact of climate change or environmental regulations. 

What is Situation Analysis? Situation analysis is basically the process of critically evaluating the internal and external conditions that affect an organization, which is done prior to a new initiative or project. It provides the knowledge to identify the current opportunities and challenges to your organization, service, or product. This in turn helps with devising a strategy to move forward from your current situation to your desired situation.

  7 Steps of the Decision-Making Process 1.     Identify the decision. 2.     Gather relevant info. 3.     Identify the alternatives. 4.     Weigh the evidence. 5.     Choose among the alternatives. 6.     Take action. 7.     Review your decision. 1. Identify the decision: To make a decision, you must first identify the problem you need to solve or the question you need to answer. Clearly define your decision. If you misidentify the problem to solve, or if the problem you’ve chosen is too broad, you’ll knock the decision train off the track before it even leaves the station. 2. Gather relevant information: Once you have identified your decision, it’s time to gather the information relevant to that choice. Do an internal assessment, seeing where your organization has succeeded and failed in areas related to your decision. Also, seek information from external sources...

  Mintzberg’s Modes of Strategic Decision-Making 1. Entrepreneurial Mode: Strategy is made by one powerful individual who has entrepreneurial competencies like innovation and risk-taking. The focus is on opportunities. Problems are secondary. Generally, the founder is the entrepreneur, and the strategy is guided by his or her own vision of direction and is exemplified by bold decisions. 2. Adaptive Mode: Sometimes referred to as “muddling through,” this decision-making model is characterized by reactive solutions to existing problems, rather than a proactive search for new opportunities. Much bargaining goes on concerning priorities of objectives. The strategy is fragmented and is developed to move the corporation forward incrementally. 3. Planning Mode: This decision-making model involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. It incl...

What is Strategic Management Process? Strategic Management Process is an ongoing process of five steps which defines the way an organization makes its strategy to achieve its goals. Using the Strategic Management Process, an organization decides to implement a selected few strategies along with stakeholders, details the implementation plan, and keeps on appraising the progress & success of implementation through regular assessment. The five stages of the strategic management process are shown in the figure below. Steps in the Strategic Management Process The process is not a one-time implementation but we can think strategic management process as a loop which keeps on going to achieve the objectives as per the need.  1.  Goal Setting: The vision and goals of the organization are clearly stated. The short-term and long-term goals are defined, processes to achieve the objectives are identified and the current staff is evaluated to choose capable people to ...

  What is Business Policy? The term "Business Policy" comprises of two words, Business, and Policy. Business: "Business means exchange of commodities and services for increasing utilities." Policy: Policies may be defined as "the mode of thought and the principles underlying the activities of an organization or an institution." Policies are plans in they are general statements of principles that guide the thinking, decision making, and action in an organization. Business policy as a principle or a group of related principles, along with their consequent rule (s) of action that provides for the successful achievement of specific organization/business objectives. Accordingly, a policy contains both a "principle" and a "rule of action." Both should be there for the maximum effectiveness of a policy.

CONSUMER ORIENTED SALES PROMOTION TOOLS The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers and to attract new customers to the firms. It is also called a pull strategy. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both. 1. Demonstration:   The demonstration is required when products are complex and of a technical nature. Customers are educated as to how to make proper use of the product. Demonstration of products induces customers to buy. Demonstrations are provided free of cost. 2. Exchange scheme: In this case, the customer exchanges the old product for a new one. The old product’s exchange value is deducted from the price of the new product. This sales promotion tool is used by several companies for consumer durables. For instance. Philips came up with a five-in-one offer. The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractiv...

  Trade-Oriented Sales Promotion 1. Dealer conferences: A firm may organize dealer conferences. The dealers may be given information about the Company’s performance, future plans, and so on. The dealers can also provide valuable suggestions to the company at such conferences. 2. Merchandise allowance: The manufacturer  may offer an allowance in return for the retailer’s agreement to feature the manufacturer’s product in some way. For example, an advertisement allowance compensates retailers for advertising the product. A display allowance compensates the retailers for the usage of special displays. 3. Cooperative advertising : Dealers are given an allowance to advertise the manufacturer’s product. Dealers claim such allowance by producing to the manufacturer the proof of advertisement. 4. Dealers’ sales contests:   A sales contest is a contest for dealers to encourage them to increase their sales performance over a period of time. Sales contests recognize good performer...