Professional Documents
Culture Documents
The Examinations of ICAP are a demanding test of student’s ability to master the wide
range of knowledge and skills required of the modern professionals. Subject of “Business
Management” is one of the efforts made by ICAP in this context for enhancing student’s
knowledge about detailed overview of effective management of businesses.
The best and recommended book for this subject is “Study Text by PBP” that covers each
and every area of syllabus in extraordinary detail. The basic problems faced by the
students in going through PBP are its size and the language used. Students who are new to
this subject have to spend most of their precious time in understanding the theme conveyed
in any chapter. Moreover students feel it very hard to revise the complete course near or on
the exam day.
For these reasons there arise needs to have some short and easy to revise notes for this
subject that covers the extent of PBP in a concise form. For this purpose we used short
notes of PBP prepared by Muhammad Asif (Ex A.M, AFF & Co Lahore) 3 years earlier.
After compiling the notes Faraz Ahmad reorganized the notes and updated it using the
PBP. Now those notes are finalized and presented to you in a booklet form. Hopefully it
will help you all.
I would suggest that first of all you should read BM from PBP and afterwards you may
consult these notes for revision purposes. An Annexure has been given at the end of this
booklet to help you deciding how you can use this booklet in combination with PBP.
May ALLAH bless you with success in every exam of both lives.
Thanks
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To create Value for Money, funds must be applied
Chapter 1 : Objectives of Economically, Efficiently and Effectively.
Organization
Chapter 2 & 3: Strategy
Introduction to Strategy
Strategy: Formulation and Choice
“Course of actions, including specification of resources required,
to achieve a specific objective” Strategy formulation/choice
Diversification Vertical
Related Backward
Growth Horizontal
Organic Growth
Required rate of return, adjusted by
Chapter # 4: Planning and Control Return %age
Payback period
Finance (strict rules of financing i.e. out of profits)
Planning Quantification risk:
Planning: Rule of Thumb (best estimate of value within worst to best
“Planning involves making choices between alternatives and is possible range)
primarily a decision making activity” Probability Theory (likelihood of occurrence of a forecast
2 approaches to planning: result)
Top-down approach means strategic management starts from Standard Deviation (calculate Standard Deviation of
top management and flows down the structure. Expected Value, the higher it is the higher risk is)
Bottom-up approach means information is accumulated at lower
level and presented to top management along with summary and Budgetary Control
options available. Control:
“Control is comparing actual results with planned performance
Planning cycle and taking appropriate actions”
1. Identify objectives
2. Identify available strategies Control Cycle
3. Evaluate each strategy 1. Actual results are recorded and analyzed for each
4. Choose strategy (course of action) responsibility center.
5. Implement long-term plan in the form of annual budgets 2. Feedback is reported to management.
3. Management compares actual results with plans or
Risk factors in planning: targets.
Types of risks: 4. Do one of three things
Physical i. Decide to do nothing
Economical ii. Take control actions
Political iii. Alter the plan or target
Financial Feedback:
Business “The process of reporting back control information to
Product lifecycle management and the control information itself”
Accounting for Risk: ¾ It may be Single Loop or Double Loop.
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¾ It may be Positive or Negative. 1. Motivates employees
2. Establish system of control
Feed forward Control: 3. Responsibility accounting
Control actions taken in advance. 4. Achievement of goals
Actual results are compared with Budgeted (i.e. 5. Communication
adjusted by past results) 6. Coordination
Well organized system of control should have: 7. Compel planning
¾ Hierarchy of budget center.
¾ Clearly defined responsibilities. Responsibility Accounting:
¾ Responsibilities for Cost, Revenue, and Capital Each manager has a clearly defined area of responsibility and
Employed. authority to make decisions within that area. No uncertainty as to
who is responsible for what (sometimes dual responsibility
Budget Center: exists).
“Each section of the organization for which budget is prepared” There are 3 different areas of responsibility.
Objectives of budgeted planning and control:
Responsibility Center is a unit of organization headed by a manager who has a direct responsibility for its performance.
Controllable Cost is an item of expenditure which can be directly influences by a given manager within a given time span.
Controllability of fixed cost:
Committed fixed cost (e.g. PPE-------non-controllable in short term)
Discretionary fixed cost ( e.g. R.&D. or Advertisement ---------- controllable in short term)
9 Scenarios
Chapter 4 & 5: Strategic o Analyzing internal environment
Management: Traditional and (Situation analysis/Position audit)
o Resources Audit
other models o BCG and GEBS matrices
o Value chain
o System structure
o SWOT Analysis
Traditional and other models of Strategic Management
o Gap analysis
Strategic Management: o Strategy formulation/Choice (how we can go)
“Strategic Management is the analysis, choice, implementation o Strategy implementation
and control of agreed strategies” o Strategy evaluation and Control
Strategy is a course of action including the specification of
resources required to meet a specific objective. Favor of rational model: (Ansoff and Drucker support it)
Tactics is the deployment of resources to execute an agreed 1. Corporate level first
strategy. 2. Strategies are best generated from Top-Down
Policy is a general statement providing guidelines for 3. Provide a common thread
management of decision-making. 4. Enables decision making in conditions where
i. Partial ignorance (Ansoff)
Levels of strategy: (by Hofer and Schendel) ii. Risk is inevitable (Drucker)
Corporate Strategy determines the overall purpose and scope 5. Basis for strategic control
of the organization. It is concerned with what types of business 6. Improves stakeholders’ perception
the organization is in. Problems with rational model: (Mintzberg criticizes it)
Defining aspects of corporate strategy: 1. Organizations are incapable of having objectives
− Scope of activities (whole organization) because
− Faces environment (opportunities and threats) i. Objectives may conflict with each other.
− Resources (how to obtain and allocate them) ii. Objectives will change from time to time
− Values (of people in power in organization affect iii. Objectives are unlikely to be directly related to
it) economic benefits of shareholders.
− Time scale (long term) 2. Senior management should not be only strategy- setter.
− Complexity (uncertainty of future) 3. In reality formulation is not a simple step by step process.
Business Strategy is how an organization approaches a 4. Strategies that firms follow are not the same as ones they
particular product market area (applied at SBU level). set in plans.
Functional/Operational strategies deal with specialized area 5. Over reliance on formalization.
of activity within an SBU e.g. Production, Marketing, HRM, 6. Predetermination
Finance. 7. Failure in practice (suitable for only stable environment)
8. Hinders innovation and radical change.
Traditional approach to make strategy: (through Planning in
a systematic way) Other models of (making strategy) Strategic
o Strategic analysis Management
Analyzing Vision, Mission and Objectives
(Strategic Direction)
Corporate appraisal (where we are) Mintzberg’s emergent strategy model: (Considers random
o Analyzing external environment shocks)
9 SLEPT analysis It is unlikely that a firm’s environment is totally
9 Porter’s 5 forces model predictable.
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Emergent strategy is a non-conscious strategy arising Strategic Management is to control and shape/craft
from patterns of behavior. these emergent strategies as they arise.
Intended Deliber
Strategies
t
Realized
Unrealized Strategies
Strategies
Patterns of
Unexpected Emergent
behavior Contingencies Strategies
Summary:
Incrementalism: a) Managers do not take best
Bounded Rationality Theory: (Herbert Simon) decisions but satisfactory
Mangers are limited by time, information and skills. ones.
They satisfice rather than maximize. b) Managers do not pursue the
whole rational model but take
Incrementalism: (Lindblom) small-scale decisions.
It involves small-scale extension of past practices.
Organizations change incrementally, during which time, strategies form gradually.
Disadvantages of Incrementalism:
1. Not suitable where radical new approaches are needed.
2. Some changes are dramatic not incremental.
3. Ignores influence of corporate culture.
4. Applicable to stable environment only.
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Double loop learning is where purpose is also reviewed. (derived from control theory)
Future will change incrementally
Future Orientation: (Hamel and Prahalad)
Future will be radically different
How to cope with future: o Focus on key factors and distinctive competences)
- simply more far-sightedness How strategic thinking operates
- imaging products and services that do not exist. o Ask right question
- spend less time in positioning in competitive environment o Find solution of problem, not remedy or symptom.
- future orientation is embodied in the corporate culture. o Observe the problem
o Group problems together (e.g. by brainstorming) to see
Environmental Fit: (Hofer and Schendel) key factors.
Strategy is a mediating force between organization and Competition: (Ohmae & Porter)
environment.
Fit or Suitability means ‘ Organizations are successful when Competitive strategy is the taking of offensive or defensive
they intentionally achieve internal harmony and external actions to create a defendable position within an industry------ and
adaptation. a superior return on investment.
Strategic logic requires that strategy must:
Successful strategy is the interplay of 3 Cs (strategic
o Be consistent with objectives
triangle)
o Match organization’s capabilities with environment.
1. Competitor
2. Customer
Survival and growth are process of adaptation :
3. Company
Why: because environment gives physical resources and
3 assumptions of theory: (focus: survival in competitive
financial resources
environment)
1. Survival of business is impossible without a competitive
Hence: choice of strategy must follow a strategic logic.
strategy.
2. Actual strategy will be unique.
Ecology Model:
3. Marketplace is a battlefield.
Organization’s environment changes radically, it will only survivor
if it adopts its environment and evolves i.e. finding niche areas
Competitive strategy:
which provide both demands for output and resources to be used
“A strategy by which a firm can have significant ground on its
as input to the system.
competitors at an acceptable costs”
Pattern and Competencies: (Andrew)
Corporate strategy is the pattern of management decisions
Competitive Advantage:
in a company
- Re-adjust current resources Æ i.e. identify key success
o That determines and reveals its objectives,
factors
purposes or goals,
- Relative superiority Æ i.e. exploiting competitors
o That produces the principal policies and plans to
weakness
achieve those goals,
- Challenge assumptions
o Defines the range of business, and
- Degree of freedom Æ i.e. segmenting
o Kind of human and economic organization it is or
intends to be.
How to create sustainable strategic position:
Strategy is exploitation of competencies.
- operational effectiveness
o The distinctive competence is what it does well,
- doing unique things
uniquely or better than rivals. It comes through
- doing trade-off
Experience
- combining good individual activities
Quality of co-ordination
- making own choices i.e. not blindly imitating competitors.
Talents and potentials of individuals
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-
Implicit & Explicit Strategies
Realized Strategies
(Depends upon extent to which strategies are
deliberate or emergent)
Intended or planned strategies Emergent strategies
Implicit Æ Only in head of chief executive
Explicit Æ Properly documented
- Senior management decisions - not planned
- Imposed from top - not fore thought
Flaws:
- Well planned - not the result of mangmnt intentions
- Purely deliberate strategy prevents
- Well thought-out - caused by pattern of behavior
learning from experience.
- Time consuming
- A purely emergent strategy defies
- Deliberately planned
control
Descriptive : “what is actually happening in the organizations i.e. paradigm, politics, pattern of decisions, incremental approach
Prescriptive : “to prescribe something” i.e. rational model, strategic thinking, learning based environment, resource based model
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Strategic intent:
“Vision with an emotional core to energize and stretch”
- similar to vision
- stretch current competencies 3 levels of goals/objectives and strategy:
- gives sense of direction Corporate level
- gives coherence to plans SBU level
Operational level
Mission Statement:
This is a statement purpose of existence-What it wants to Corporate level objectives: (trade off between objectives)
accomplish in the larger environment. 1. Profit (Accounting Profit = Economic Profit = Sale price
Mission statement includes Purpose, Competence, Strategic – Explicit Cost – Implicit Cost i.e. Opportunity Cost)
Scope, Product, Targeted customers, and Values of various 2. Market share and growth
stakeholders. 3. Cash flow
It should be market oriented, specific, realistic, motivating 4. Customer satisfaction
and consistent with market environment. 5. Quality of product
e.g. “ To provide best satisfaction to customers and fair return 6. Industrial relations
on investment, keeping environment healthy and clean and 7. ROCE
promising secure future to employees”. 8. EPS
Stakeholder Objectives
Shareholders To maximize wealth
Increased by (dividend, capital gain of shares, EPS, ROCE)
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Measured by (increase in Retained earnings, Market Value listed or non-
listed)
Lenders Timely repayment of interest and principal
Trade creditors Timely payment
High prices
Continuing profitable relations
Employees High wages
Job security
Job satisfaction
Retailers and Continued supply
customers Quality products
Management Maximize own reward
Training and career development
Society SHE Issues
Level of employment
Govt. Taxes
Legislation compliance
2 approaches to stakeholders:
1. Strong view (To balance all stakeholders is important)
2. Weak view (Primary objective is profit, stakeholders are satisfied indirectly)
Belief is what we feel to be the case on the basis of objective Harrison and Handy’s Work: (gods of management)
and subjective information. There are 4 types of culture in organizations:
Values are beliefs which are relatively general and widely
accepted as culturally appropriate behavior. i) Power Culture (Zeus)
Customs is culturally accepted behavior in response to given All decisions are centered on one person i.e. founder of
situation. business
Artifacts are physical tools designed by human beings for their For small entrepreneurial companies
physical and psychological well being including works of arts
and technology. ii) Task Culture (Athena)
Rituals are activities which take on symbolic meanings.
Ethics is a set of moral principles to guide behavior. No dominant leader
Principal concern is to get the job done
McKinsey’s 7-S model iii) Role Culture (Apollo)
Explains relationship of different aspects of business: [Link b/w Organization has formal structure and well established
organizational & individual behavior] rules and procedures
People do their jobs as specified in their contracts
3 Hard elements: [Formal Aspects] For large organizations where work is predictable
1. Structure (division of tasks and hierarchy of authority) iv) Person/Existential Culture: (Dionysus)
Organization’s purpose is to serve interest of
individuals within it.
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(e.g. designers)
Miles and Snow’s Work: (models of strategic culture) Take initiatives
There are 4 approaches to strategy in organizational culture.
3. Analyzers
1. Defenders (doing things right) Balance risk and profit
Low risk, low profits Using core stable products & markets
Secured niche market e.g. managers
(e.g. accountants, engineers etc) Follow the change, do not initiate change
Tried and trusted solution
4. Reactors
2. Prospectors (doing the right thing) Do not have viable strategy
High risk, high profits
Move into new ways
Denision’s model:
Peter and Waterman’s Excellence Culture: SEP will fall into 3 fields:
“Dominance and coherence of culture was an essential feature 1. Product related
of excellent companies”. 2. Market related
Employees are loyal and make efforts if: 3. Functional
9 Cause is great. SEP can be developed only if culture supports it.
9 They are treated as winners.
9 They can satisfy dual needs of team and own interest.
Key attributes of excellence Chapter 8 : Corporate
1. Autonomy and Entrepreneurship
2. Bias for action
Reorganization
3. Customer orientation Defensive Strategies
4. Stick to core activities Capital Restructuring Scheme
5. Simple organizational structure “A capital reconstruction scheme is a scheme whereby a
6. Simultaneous loose-tight properties (competition company reorganizes its capital structure”.
between individuals and group within organization) Procedure of designing a capital restructuring scheme:
Pumpin’s dynamic company (Cultural characteristics of 1. Calculate what each party’s position would be in a
dynamic companies) liquidation
“Dynamic company is one that considerably increases the 2. Assess possible sources of finance
benefits for its stakeholders within a relatively short time” 3. Design the reconstruction
4 aspects of such a culture 4. Assess each party’s position as a result of the
Speed reconstruction
Productivity 5. Check that the company is financially viable.
Expansion Exit strategies for a venture capitalist:
Risk taking 1. Sale of shares to public or institutional investors
following a flotation
Weak areas in a dynamic company 2. Sale of shares to another company
Customer service 3. Sale to company itself or its owners
Innovation 4. Sale to institution management
Technology
Attitude to workforce Downsizing
Company spirit and loyalty
Divestment- (selling of business)
Strategic Excellence Position: (similar to excellence)
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“Divestment is a proportional or complete reduction in ownership Disadvantages:
stake of an organization” e.g. ¾ No trading of shares on stock exchange
¾ Demerger ¾ Loss of repute
¾ Sell off ¾ Loss of some value of share
¾ Liquidation
¾ Spin off
¾ Management Buy Out (MBO) Disadvantages of De-Merger
¾ Privatization 9 Loosing economies of scale
Reasons for Divestment: 9 Lower turnover
To concentrate on a particular part of business 9 Higher overhead cost
Selling a loss making unit 9 Less ability to raise finance
Liquidity problems
Selling a subsidiary with high risk Chapter # 9 : Ethics and Social
Selling a subsidiary at profits Responsibility
Provide an exit route for investors
Remove value gaps to avoid takeover
Demerger is splitting up of a corporate body into two or more Ethics
separate and independent bodies.
Sell off is a form of divestment involving the sale of a part of a Ethics:
company to third party usually another company. Ethics is a set of moral principles to guide behavior. It concerns
Liquidation is extreme form of liquidation where the entire with what is right and what is wrong.
business is sold and funds are distributed to shareholders in
their proportion.
Management Buy Out. (MBO) management buyout is the Levels of
purchase of all or part of a business from its owners by its Practicing ethics
managers.
Management Buy Out.(MBI) where purchase of a business is Individual
made by group of managers from outside the business.
Spin Off : a new company is created whose shares are owned Personal ethics professional ethics
by the shareholders of the original company which is making the
distribution of assets.
Organization
Management Buy Out: Org. culture Org. System
Possible reasons for MBO:
¾ All reasons of Divestment Ethical problems faced by organization:
¾ Best offer from management While achieving a higher ROI, an organization faces following
¾ Sale can be arranged quickly problems:
¾ Group can still maintain relations
− SHE Issues (Safety, Health, Environment)
− Extra payments to govt. officials
Success factors of MBOs: (Advantages)
Extortion (when officials threaten company with
¾ Favorable buyout price
complete closure)
¾ Personal motivation and determination
Bribery (where organization is not entitled to
¾ Quicker decision making and more flexibility
services)
¾ Saving in overheads
Grease money ( where organization is entitled but
¾ Healthy relationship with subsidiary
unable to receive services)
Gifts
Questions in evaluating MBOs for investment:
¾ Does management has full range of skills? − Honesty in advertisement (e.g. Marketing ethics)
¾ Why is the company for sale? − Competitive behavior (e.g. putting others to competitive
¾ Projected benefits and cash flows? disadvantage)
¾ What is being bought?
¾ Price? Ethical systems in an organization:
¾ Fund availability? − Personal ethics (e.g. religious, political, personality
¾ Exit routes? ethics)
− Professional ethics (e.g. CA code of ethics,
Problems faced by MBOs: (Disadvantages) medical ethics, fit and proper criteria)
¾ Little experience of financial management − Organization culture (e.g. customers first)
¾ Tax and other legal complications − Organization system (ethics must be contained in
¾ Changing the attitude of employees formal code e.g. part of ethical sys. and mission
¾ Deciding the bid price statement)
¾ Cash for maintenance of fixed assets
¾ Change in HR (loss of key employees) 2 approaches to manage ethics:
¾ Maintenance of relations with suppliers/customers Compliance based approach aims to remain within letter of
law by establishing system of audit and review so that violations
Going Private are prevented, detected and punished. It works from outside the
system.
“A public company goes Private when a small group of Integrity based approach combines a concern for the law with
individuals buys all of the company’s shares (possibly including an emphasis on managerial responsibility. This approach
existing shareholders)” incorporates ethics in organization’s culture in which managers
Advantages: will do the right thing e.g. shared accountability, sound behavior,
¾ Cost saving (cost of meeting statutory requirements are defining values. It works from within the system
saved)
¾ Limited number of members Whistle blowing:
¾ Similar objectives of shareholders It is the disclosure by an employee of illegal, immoral or
¾ Shareholders are close to management illegitimate practices on part of the organization.
¾ Protection against volatility in share price
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Four types of ethical leaderships in organizations:
i) Creative:-reflecting founder, such leaders create ethical style.
Chapter 10: Corporate
ii) Protective:-they sustain value of customer services Governance
iii) Integrative: - aim through consensus through people Corporate Governance is the system by which companies are
iv) Adaptive: - changing culture as per new environment directed and controlled.
Patterns of share ownership: (Who are shareholders of
Social Responsibility company)
Objectives of a company: Types of institutional investors:
− Economic objectives ¾ Pension funds
− Social/Ethical objectives ¾ Insurance companies
− Boundaries (Imposed rules; they restrict ¾ Investment trusts
management’s freedom of action) ¾ Unit trust
− Responsibilities (Voluntarily undertaken obligations e.g. ¾ Venture capital organizations
charities)
Range of shareholders:
Social/Ethical objectives of a company: Advantages:
− SHE Issues (e.g. minimum wages, job security) − Greater activity in firm’s shares
− Good employer (e.g. good working environment, job − No individual controlling whole firm
satisfaction) − Less effect on share price if anyone sells
− Good Public image (e.g. good quality products) − No threat of takeover
− Society well being (e.g. regular order and timely Disadvantages:
payments to suppliers) − Administrative cost is high.
Pollution − Various objectives in holding shares.
Financial assistance (e.g. Charity, Sports)
(For other objectives see Stakeholders’ objectives) Why knowing shareholders:
− To get support by exchanging views.
Arguments against and favoring Social Responsibility − Knowledge of shareholders’ preference about Dividend
recognition: Policy.
Social responsibility is expected from all types of organizations. − To explain recent share price movement.
− Shareholders’ attitude to risk and gearing.
AGAINST: − Key shareholders to consult in the event of takeover bid.
Organizations should concern wealth only because Agency Theory:
− Shareholders own assets. “Although individual members of the business team act in their
− Shareholders are part of society. own self-interest, the well being of each individual depends on
− Taxes on revenues are given to build society. the well being of other team members and on performance of
− Businesses exist for profit. the team in competition with other teams”
Views of HRM:
HR Planning description and data for recruitment, training, job evaluation &
Human Resource Planning: performance management.
“HR Planning is forecasting demand of human resources, Systematic way to gather and analyze information about the
forecasting its supply and closing gap between demand and ¾ Content
supply” ¾ Context
It considers When employees needed. How many employees ¾ Human requirements of the job.
needed. So basically HR Plan deals with recruitment, retention,
downsizing & training of workforce. Type of information needed
Purpose of the job
Process of Human Resource Planning Content of the job
Relations to other job
1. Strategic Analysis (of) Performance criteria
a. Environment Responsibility
b. Organization’s objectives Accountabilities
c. Manpower’s SWOT Organizational factors
2. Job Analysis Development factors
a. Job description Environmental factors
b. Job specification
c. Employee specification Job analysis results in:
¾ Job description
3. Forecasting of ¾ Job specification
a. Internal Demand and Supply ¾ Employee specification
b. External Supply Job Description
4. Implementation A written statement of duties, responsibilities and tasks of job.
a. HR Plan It should be written in outputs and performance levels.
Job Analysis
The process of collecting, analyzing & setting out information Purpose of Job description:
about the contents of job in order to provide basis for job
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¾ Organizational--------- Defines job’s place in HR Plan is prepared on the basis of personnel requirements,
organizational structure (job evaluation). productivity and cost.
¾ Recruitment------------ Provides person specification
¾ Legal-------------------- Provides basis for contract of Meeting Shortage of HR (Less supply More Demand)
employment
Internal Promotions, Transfers (Redevelopment Plan) and
¾ Performance----------- Performance objectives can be
Training (Training Plan) etc.
set.
Reducing Labor turnover (Retention Plan)
Overtime (Productivity Plan)
Contents of Job description:
External recruitment (Recruitment Plan)
A job description should be a formal, written document, usually
from one to three pages long. It should include the following:
Date written. Meeting Surplus of HR (Less Demand More supply)
Job Status (full-time or part-time; salary or wage). Restricting recruitment
Position title. Part-time working
Job summary (a synopsis of the job responsibilities). Redundancies (Redundancy Plan)
Detailed list of duties and responsibilities.
Supervision received (to whom the jobholder reports). Recruitment (a part of HR plan)
Supervision exercised, if any (who reports to this employee). Definition:
Principal contacts (in and outside the organization). “Recruitment is the process of generating a pool of qualified
Related meetings to be attended and reports to be filed. applicants for organization’s job”
Competency or position requirements. Strategic Recruitment Decisions:
Required education and experience. 1. Organization based Vs. Outsourcing
Career mobility (position[s] for which job holder may qualify 2. Regular Vs. Contractual Vs. Leased
next). 3. Internal Vs. External recruitment
Alternative to Job Description is Role Definition. (wider) 4. EEO and Diversity issues
Competencies
Methods of Job Analysis: Capacity of a person that leads to behavior that meets
¾ Logos/Diaries the job demands.
¾ Interviews Intellectual Competence (Strategic, judgment,
¾ Observations planning)
¾ Questionnaires Interpersonal Competence (managing staff)
HR managers write job description & specification for review by Adaptability (flexibility with change)
managers Results
Managers identify performance standards based on job analysis 2. Employee referrals
information. 3. Promotion and Transfers
Advantages:
Forecasting Demand and Supply of manpower: ¾ Good employee relations
Demand is estimated from: ¾ Encourages ambitious individuals
¾ New markets ¾ Less costly
¾ New product/service ¾ No adjustment or orientation time required, because
¾ New technology already familiar
¾ Divestment i. Individual with organization and policies
¾ Organizational restructuring ii. Organization with individual
Supply is estimated from: Disadvantages:
¾ Current workers’ Stocks and Flow analysis ¾ No new blood, no innovation and new perspectives
¾ External labor market ¾ Political fight for promotion
A Position Survey compares demand and supply. (Grade, skills, ¾ Morale problems of those not promoted
location etc) ¾ Diversity lacking
¾ Requires training
Closing the gap between Demand and Supply- HR Plan: External Search:
(along with subsidiary plans of HR Plan) 1. Advertisement (method depends on organization and
nature of job)
Newspaper
T.V.
Net
2. Agencies and Professional organization
3. Blind Box ads
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4. Schools, Colleges and Universities Fail to provide accurate prediction (error of judgment)
5. Unsolicited applications Halo and Horns Effect (based upon single attribute)
6. Creative recruitment methods Stereotyping candidates on the basis of dress, hairstyle,
Banners accent etc.
Announcing prizes for
o Referee Discrimination in selection is justified only if required by law.
o Applicants
Induction Training:
What must be included in job advertisement: ¾ Identify area for later learning or training (e.g. detailed
¾ Information about organization technical knowledge)
Primary business ¾ Explain nature of job and goal of each task
EEO Employer ¾ Explain working hours
¾ Information about job and application process ¾ Explain structure of organization hierarchy and his
Title and responsibility position
Job location ¾ Introduce with people in office.
Starting pay range ¾ Plan and implement training program.
Contact address ¾ Appraise after 3,6 or 12 months.
Closing date for application
¾ Desired qualification of candidate Chapter 13 : Motivation and
Experience Performance
3----5 Characteristics needed
Internet Search:
1. Employer website Individuals
2. Professional career websites Variables affecting Job performance:
Advantages:
¾ Cost saving Organizational and Social variables
¾ Time saving Social environment
¾ Global in nature Type of Incentives
Disadvantages: Type of Training and Supervision
¾ Non-serious application
¾ Difficult to process large number of application
Situational variables
¾ Not accessible to all
Selection: (part of Recruitment) Characteristics of Organization
Definition Physical environment
“The process of choosing individuals who have needed
qualification to fill job in an organization” Physical and Job variables
Purpose of selection: Methods of work
“Filling a right person to the job” ensuring Work space and arrangements
9 Person fits job (matching people with job Designing and condition of work equipment
characteristics)
9 Person fits organization (Objectives, culture, values etc. Individual (non work) variables
of organization)
Steps in selection process: Age
Initial screening Sex
Complete application (on specific form) Physique
Employment tests Education
Comprehensive interview (keeping in mind job Experience
description & job specification) Intelligence
Background information (depends on nature and Aptitude
sensitivity of job) Motivation
Medical examination Personality
Conditional job offer
Permanent job offer Personality and individual Development:
(Individuals are different because their personality is difference
and personality differences affect work behavior).
Why and What tests are conducted
Personality is the total patterns of thinking; feeling and behaving
¾ Cognitive ability tests that constitute the individual’s distinctive method of relating to the
o Thinking, memory, reasoning environment.
o Mathematical abilities According to Chris Argyris, as people mature they display
o Communication abilities certain characteristics:
¾ Physical ability tests 1. Increasing self awareness
¾ Writing analysis 2. Acceptance of equal or superior relationship to others
¾ Performance simulation test (requiring to perform 3. A tendency to move from dependence towards independence
actually a small segment of the job) 4. Diversification of behavior patterns
5. An increasing tendency to activity, rather than passivity
Advantages of interview 6. Deepening and more stable interests
Most valid to determine applicant’s
o Organization fit Factors affecting personality differences:
o Level of motivation - Authoritarianism - Need of achievement
o Interpersonal skills - Self-esteem - Attitude
- Feedback on performance- controls and standard
Limitations of Interviews - Moderately difficult tasks- levels of risk taking
- Psychological success - challenging goals and achievement
Unreliable assessment (wrong decision) - Commitment - willingness
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Motivation (Content theories VS Process Theories)
Motivational Theories McClelland’s needs:
McGregor’s theory X and theory Y: ¾ Need for achievement, Need for power, Need for
¾ Theory X---People dislike work and responsibility, affiliation
they have to be controlled, threatened, and ¾ These needs could be taught from top to lower
punished to get work done. managers.
¾ Theory Y---Work is as natural as play and rest, they Top management Æ Power
accept responsibility, and they give way to Entrepreneur Æ Achievement
consultation and self growth. Employees Æ Affiliation
Ability Understanding
Importance of Success/Failure
reward
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Methods:
Job enrichment Æincreases depth of responsibility by adding 1. Check list appraisal (yes/no)
planning and control of current job. 2. Forced choice appraisal (MCQs)
3. Essay appraisal/ Overall assessment (paragraph)
4. Grading, result oriented schemes, and self appraisals
Working arrangements:
Æ attitude and values Æflexible working arrangement An appraisal system:
Æ high performance work systems Æ multi-skilling − Identify criteria for assessment
Æ empowerment Æ flexi time − Preparation of appraisal report
Æ compressed week Æ job sharing − Appraisal interview
Æ part-time work Æ home-working (distant − Review assessment
working) − Action/plan preparation
i) Numerical flexibility − Monitoring progress (follow-up)
ii) Financial flexibility
iii)Task flexibility Methods of appraisal:
i) Upward appraisalÆ sub-ordinates upraise their seniors
Employee Appraisal ii) Customer appraisal Æ internal & external
“Appraisal is a systematic review and assessment of an iii) 360 degree appraisal
employee’s performance” Mair’s 3 approaches to appraisal interview:
Why: Employee Development: − The tell and sell method
Specific Job performance feed back − The tell and listen method
Career opportunity information − The problem solving approach
Assessing employee potential
Decision Making for Action by Administration: (Results of Effective Appraisal:
appraisal) Job related criteria
Promotion Standardization
Demotion Trained appraisers
Transfer Employee access
Termination Purpose must be understood by both
Organizational Research: (Importance of appraisal) It must be participative, problem solving activity
HR Planning (Promotability and Potential) Regularly conducted.
Evaluation of Selection and Training methods Effort, integrity and ability of line managers.
To motivate employees giving feedback
Inventory assessment for planning Lockett’s appraisal barriers:
To assess training needs − Lack of agreement on performance level
Purpose of appraisal: − Rater is biased.
Reward review for deserving employees − Recency effect (weighting recent events)
Performance review to confirm whether any training
− Disagreement on long term prospects
is required or not
− One sided process
Potential review to confirm whether any
management career planning is required or not. − Central tendency
Objectives: − Many targets at annual meeting become out of date.
Achieving objectives − Central tendency (giving average rating to anyone)
Performance levels − Sampling Error (available information is insufficient or
Training needs inaccurate)
Identifying lacking areas
Communication Interview and counseling:
1) Tell and sell method (manager tells, and then try
360-degree feedback -Sources: to gain acceptance)
9 Self
9 Senior 2) Tell and listen method (manager tells, the
9 Peers subordinates responds, and consensus is achieved)
9 Juniors
9 Assessment centers 3) Problem solving approach (manage becomes
9 Customers counselor, and ask work problems)
Upward appraisal is better.
Managing Careers:
Types: (What could be assessed)
¾ Traits Career management is a technique whereby the progress of
¾ Behavior individuals within an organization from job to job is planned
¾ Performance keeping organization needs and individual capacity in mind.
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Formal
channels
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− Group becomes more structured and organized. ¾ Game to change the organization
− Members eliminate their differences, get close and At senior level political activities occur in following cases
demand loyalty. − Allocation of resources.
− Climate becomes task oriented. − Management Succession
− Members’ individual needs are subordinated to − Interdepartmental coordination
achievement. − Structural change
− Leadership moves from democratic to autocratic
with group’s acceptance. Chapter 15 : Strategies for
Winning group:
− Cohesion
Critical Periods
− Relaxation
Large Vs. Small organizations
− Return to group maintenance and concern for
members’ needs. Issues/problems in large organizations:
Organization’s structure:
− Assertion for group self-concept with little
reevaluation. − Sharing roles and responsibilities (who does
Losing group: what?)
− It may deny defeat or blames on others. − How much specialization
− Loses cohesion. − How many levels of management
− Turn to regrouping. − Delegation of authority (centralized or
decentralized)
− Reevaluates perception of itself and other group.
Planning and control:
− Might become cohesive and effective unit if defeat
− Vague accountability
is accepted.
− MIS should be in place
Managerial response to conflicts: (by Hunt) − Coordination
− Denial/Withdrawal (if conflict is trivial) − Reward
− Suppression (preserve working relations despite Slow adoption to change
minor conflicts) Motivation is down
No self-esteem
− Dominance (application of power to settle the
Slow decision-making
conflict)
− Compromise (bargaining, negotiating, conciliating)
Solutions:
− Integration/Collaboration (emphasis must be put
− Decentralized and delegation of authority
on task and individuals must modify behavior)
− Fair pay policies with bonus, awards and rewards
To reduce conflict behavior:
− MIS
− Limited communication
− Delayering in hierarchy
− Structural separation
− Job design
− Bureaucratic authority (use of)
To encourage cooperative behavior:
Issues/problems in small organizations:
− Job rotation
− Over reliance on a few key persons
− Inter-group training
− NO economies of scale
− Integration devices (e.g. problem solving teams,
− Small market area/ restricted range of products
force to work together)
− Low bargaining power
Group think: (IL Janis) − Cannot raise money
“Psychological drive for consensus at any cost that suppresses − Can not afford help (from experts)
dissent and appraisal of alternatives in cohesive decision Solutions:
making groups” − Growth
Symptoms of group think: − Specialist servicing
− Moral blindness (might is right) − Key person’s insurance
− Perception of unanimity
− Strong group pressure to quit dissent Corporate decline
− Rationalization for inconsistent facts. 3 types of decline:
− Mutual support to guard the decision.
1. Declining industries (i.e. Environment entropy;
Group subculture: environment is no longer supportive)
Subcultures are cultures which exist within cultures.
Characteristics: − Temporary decline (product revitalization)
¾ Group share distinctive way of life, beliefs. − Permanent decline (end game)
¾ Learned from others in the group. 2. Vulnerability
¾ Way of life has somehow become traditional. − SLEPT
− Porter’s 5 forces
Political behavior: 3. Declining company (i.e. organization atrophy)
Organizations are political systems because people within them − Symptoms (by Stuart Slatter)
have their own objectives and priorities. Decrease in sales revenue
Political behavior is concerned with competition, conflict, rivalry Decrease in profitability
and power relationships in organization. Decrease in liquidity
Decrease in market share
Political Game: Lack of planning
Mintzberg identifies various Political Games played in Increase in gearing
organization which can be useful or harmful. Top management fear
¾ Game resist authority Change in senior executive
¾ Game to counter this resistance Financial engineering (change in
¾ Game to build power basis (control over resources accounting policies, auditors etc.)
and superiors, colleagues, subordinates etc.) Restriction on dividend policy
¾ Game to defeat rivals (interdepartmental) − 4 stages in the crisis (by Stuart Slatter)
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Blind stage/Crisis denial Faulty action/Disintegration
Inaction/Hidden crisis Crisis/Collapse/Dissolution
Causes of decline and strategies to overcome:
Causes Strategies
− Poor management − New management + restructuring
− Poor financial controls − Tighter controls + delegation of
− High cost structure responsibilities
− Poor marketing − Cost focus strategy + Ansoff’s matrix
− Competitive weakness − Redevelop marketing mix + motivate sales
− Big projects/acquisition force
− Escalation of commitment of bad decisions − Porter’s generic strategies
− Feasibility reports
Reasons for escalation:
− They think decision was right; implementation was wrong.
− Humiliation of climb down.
− Consistency is valued.
− Mistakes are viewed as failure not learning
− Outcomes are uncertain.
− Failure to understand principle of relevant cost.
Turnaround of decline:
− Visionary leader required.
− Contraction and cost cutting.
− Reinvestment in organization’s capability.
− Rebuilding with innovation.
Chapter 16 & 17 : Change Management and Changing Environment
Change
Types of change:
− Changes in environment (Cause)
− Changes in organization (Effect)
Changes in products/services
Changes in technology and working conditions
Changes in management and working relations
Changes in organizational structure and size
Change is small and gradual whereas Transformation is crucial and significant.
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ii) Adaptive change approach 3. Period of maturity
iii) Coercive change approach 4. Organization begins to decline.
iv) Using Change agent Such a lifecycle is not inevitable, if organization is able to adapt.
v) Integrative VS segmentalist
vi) Theory E & Theory O
Greiner’s growth model: (Growth & Organizational
Resistance to change Development)
As an organization ages, it grows in size.
Active resistance passive resistance This growth takes place in 5 discrete phases.
Each phase has 2 characteristics i.e.
− Evolution (distinctive factor that directs growth)
Force Field Analysis: (Lewin) and Æ Growth (“Move” Stage)
It is an interplay of restraining and driving forces that keeps − Revolution. (crisis to pass to enter next phase)
things in equilibrium. Æ Crisis (“Unfreeze” Stage)
Introducing change:
3 factors to consider minimizing resistance. Phase 1: (Focus)
Pace of change: − Evolution (Small organization focusing on
− Adapt strategy according to time available. operations, personnel issues and innovation)
Manner of change: − Revolution (Need for leadership skills)
− Resistance should be welcomed. Phase 2: (Management/group)
− Reasons and results of change should be circulated. − Evolution (Management is professionalized, there
− Change must be sold to people concerned. are more employees but less enthusiasm)
− Individuals must be helped to learn. − Revolution (delegation is problem; lack of detailed
Scope of change: control; no initiation)
− Small or Transformation. Phase 3: (System)
− Evolution (decentralized decision making)
Change process: (by Lewin/Schein) − Revolution (no coordination between departments,
Unfreeze existing behavior: sub optimization occurs)
− Most difficult and neglected stage.
− Selling the change. Phase 4: (Internal Controls)
− Give motive for change. − Evolution (Internal control systems and
Behavior change: procedures are developed for coordination and
− Identify new behavior. optimal use of resources)
− Encourage individuals to own change. − Revolution (new procedure inhibits useful actions)
Refreeze new behavior:
− Through positive or negative reinforcement Phase 5: (Communication / collaboration)
Effect of change on People: − Evolution (Increased informal collaboration;
− Physiological effect (e.g. pattern of shift working affect control is cultural rather than formal)
eating, walking and sleeping habits) − Revolution (Crisis of psychological saturation in
− Circumstantial effect (e.g. working environment and which individuals become exhausted by
working relations) teamwork)
− Psychological effect (e.g. feeling of disorientation,
Insecurity, risk of rejection, feeling of misfit) Criticism on lifecycle models:
− Effect on Self concept (New psychological contract, − Formation could also be by Merger or Joint venture. i.e.
Uncertainty affects sense of competence) not always founded by visionary ppl.
− Too many issues for growth and control. (i.e. org.
Changing culture: structure, org. culture)
Hamper Turner suggests 6 modes of intervention: − Growth is not the same as effectiveness. (i.e. not a
1. Find the dangers (locate black sheeps) normal state of affair)
2. Brings conflicts in open. − No idea of time scale involved in any stage. (i.e. Linear
3. Discuss culture with members (play out corporate development)
drama) − Growth seen as linear development over time; there
4. Reinterpret the corporate myths. might be different rates of growth at different times and
5. Look at symbols, images, rituals. even loss.
6. Create a new learning system. − Model does not clearly indicate relationship with
environment. (i.e. it ignores environment)
Pattern of unhealthy culture: (by Edwin Baker) − Effect of competition in market is also ignored.
− Flourished initially by founder.
− Founder retired, employees become rigid and Measurement of Growth: (how Adamjee is the largest
insular. insurance co.)
− Speed, innovation, flexibility, concern for survival ¾ Sales revenue
and customer disappeared. ¾ Profit (in absolute term or ROCE)
− Formalization ¾ No. of goods/services sold.
− Departmentalism/ Sub optimization ¾ No. of outlets
− Coercive actions needed to compete. ¾ No. of employees
¾ No. of countries reached.
Organizational life cycle: ¾ No. of markets served.
Handy’s sigmoid curve:
Application of concept of lifecycle to organization with 4 broad
stages:
1. The organization is established.
2. Organization grows in size and scope.
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Satisfaction is whether performance meets or exceeds
Chapter 18 : The evolution of expectations.
marketing concept Exchange, Transaction and relationship:
Exchange is an act of obtaining a desired object from someone
“The right product or service to the right customer, at the right
by offering something in return.
price, at the right time and right place”
Transaction is a trade of value between two parties.
Marketing Department: Functions (Research, Demand, Design,
Elements of Marketing:
Selling)
Company Supplier Market Intermediaries
Marketing Environment: PESTEL (Political, Economical, Social, End user Competitors Environment
Technological, Ecological, Legal)
Customer’s life time value: Value of entire stream of
purchases by customer over his lifetime.
Chapter 1- Introduction Customer Equity:
Total lifetime value of all of company’s customers.
Marketing, : Marketing Management: Marketing management has four
Managerial definition: Managing profitable customer functions: Analysis, Planning, Implementation and control.
relationships, by delivering superior value to customers. De-marketing is aim is to reduce demand temporarily or
Social definition: “a social and managerial process by which permanently. It is done when product is not feasible from
individuals and groups obtain what they need and want through supplier or customers’ point of view. i.e. intentional and non-
creating and exchanging products and value with others.” intentional reduction in demand.
Scope of Marketing = Marketing Planning Tied with corporate strategy Short term, and focuses
e.g. which product of market to choose on place, promotion,
price
Marketing Vs. R&D department:
Marketing has commercial and competitive atmosphere whereas R&D has University atmosphere with open-end work and
consumption of substantial resources.
Customers’ needs and change in product specification tighten them.
Three Important Concepts: Marketing and other environmental stimuli: (i.e. Stimulus –
Value-Chain : How activities of organization contributes towards response model)
creating value in goods or services.
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Already discussed For frequent/regular purchases.
Consumer’s Black box: o External search:
The “black box” has two parts. Personal sources (family, friends, neighbors,
1). The buyer’s characteristics influence how he or she acquaintances)
perceive and react to Commercial sources (advertisement, dealers, websites,
stimuli. (Uncontrollable) salesmen)
2). The buyer’s decision process itself affects the buyer’s Public sources ( Mass media, consumer rating
behavior. (Semi-controllable) organizations)
For new products.
Characteristics affecting consumer behavior: “Word of Mouth” or “Personal sources” has 2 major advantages
Marketer can not control them but should learn them. (through satisfied customers):
• Cultural 1. Convincing, i.e. of consumers by consumers for
o Culture consumers
o Subculture 2. Costs are low.
o Social class At the end of this stage, customer arrives at a set of final brand
• Social choices.
o Reference group
o Family iii) Evaluation of alternatives:
o Roles and status Assessing value.
Customer may be interested in many attributes. E.g. for Camera
• Personal
o Age and lifecycle stage • Picture tube
o Occupation • Ease of use
o Economic situation • Size
o Lifestyle • Price
o Personality and self concept However sometimes consumer has to base his decision only on
• Psychological one attribute.
o Motivation
o Perception iv) Purchase Decision:
o Learning o The best rated camera will be bought.
o Beliefs and attitudes
v) Post-Purchase behavior:
Culture is the set of basic values, perceptions, wants, and Either
behaviors learned by a member of society from family and other • Dissatisfied
important institutions. • Satisfied
Subculture is a group of people with shared value systems • Delighted
based on common life experiences and situations. Subcultures A policy by firms is to understate performance because
might be nationality groups, religious groups, racial groups, or customers are delighted with better-than-expected performance.
geographic area groups.
Social classes are society’s relatively permanent and ordered Why satisfaction of Customer/study of this stage is
divisions whose members share similar values, interests and important:
behaviors. 1. To attract new customers cost more than to retain
Reference group has a direct (face to face) or indirect points of current customers.
comparison or reference in forming a person’s attitudes or 2. Satisfied customers are less price sensitive.
behavior. 3. Satisfied customers tell others (words of mouth). Bad
Aspirational group is one to which an individual wishes to words travel farther and faster.
belong.
Opinion leader is a person within a reference group who, Decision process for new product i.e. stages in adoption
because of special skills, knowledge, personality or other process (from hearing to adoption):
characteristics, exerts influence on others. 1. Awareness:
Personality is a person’s unique psychological characteristics 2. Interests: seek information i.e. through external sources
that lead to relatively consistent and lasting responses to his or 3. Evaluation: whether to try or not
her own environment. 4. Trial: on small scale to improve estimate of value
A motive (drive) is a need that is sufficiently pressing to direct 5. Adoption: decides to make full and regular use
the person to seek satisfaction.
Perception is the process by which people select, organize, and Chapter 2 Company and marketing strategy
interpret information to form a meaningful picture of the world. Strategic Planning Process:
Learning is changes in an individual’s behavior arising from “Strategic Planning is the process of developing and maintaining
experience. a strategic fit between organization’s goals and capabilities and
Belief is a descriptive thought that a person holds about its changing marketing environment.
something. Following are steps of strategic planning:
Attitude is a person’s consistently favorable or unfavorable 1. Defining mission
evaluations, feelings, and tendencies toward an object or idea. 2. Analysis of Business Portfolio
3. Setting strategic objectives and goals
2. Purchase Decision Process 4. Developing Competitive strategies
i. Porter’s 5 forces
i) Problem Recognition: ii. Cost-Differentiation-Focus Triangle
Perceiving a need. iii. Growth Strategies (product/market
It can be stimulated by: expansion grid)
• Consumer’s depleted assortment (e.g. empty paste) or 5. Developing detailed marketing and departmental
• Marketing efforts plans and strategies
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It should be market oriented, specific, realistic, motivating Marketing control is the process of evaluating the results of
and consistent with market environment. marketing planning and its implementation, and taking corrective
e.g. “To provide best satisfaction to customers and fair return on action to ensure that marketing objectives are attained.
investment, keeping environment healthy and clean and Two broad forms of control are important:
promising secure future to employees” 1). Operating control involves checking ongoing performance
against the annual plan and taking corrective action when
Designing the business portfolio: necessary.
Business portfolio is the collection of businesses and products
that make up the company. 2). Strategic control involves looking at whether the company’s
Business portfolio planning involves 2 steps: basic strategies are well matched to its opportunities. The major
1. Analysis of current business portfolio. tool for accomplishing this form of control is the marketing audit.
2. Developing strategies
The marketing audit is a systematic analysis and evaluation of
1. Portfolio Analysis: organization’s marketing position and performance. It may cover
A tool by which management identifies and evaluates SBUs to all marketing activities or some of them.
determine which business should receive more, less or no Audit will focus on 3 things:
investment. 1. Marketing capabilities
BCG growth-share matrix is used to evaluate a company’s 2. Performance evaluation (are sales meeting forecasts?)
SBUs in terms of market growth rate and relative market share. 3. Competitive effectiveness (competitive advantage,
SBU is a unit of company that has a separate mission and product differentiation)
objectives and that can be planned independently from other
company businesses. Partnership relationship management:
“Working closely and jointly with
2.Developing strategies for growth and downsizing: ¾ Other departments of company
The product/market expansion grid is a portfolio-planning tool for ¾ Other companies
identifying company growth opportunities through: to bring greater value”.
Existing Product New Product Value Chain and Value delivery network:
Value Chain is series of departments within the company
Existing Market Penetration Product carrying out value-adding activities e.g.
Market Development ¾ Designing
New Market Market Diversification ¾ Producing
Development ¾ Marketing
¾ Delivery
¾ Supporting
Downsizing: Value delivery network is network of suppliers, company,
When a firm reduces business portfolio by eliminating products intermediaries, and consumers who partner with each other to
or business that is not profitable or no longer fit its overall improve performance of entire system.
strategy..
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ii. Purchase of known and established products and Target marketing strategies: (Product affecting Promotion)
brands e.g. Insurance The firm can adopt one of four target marketing strategies:
4. Hedonistic preference A. Undifferentiated marketing (or mass marketing) a
i. Emphasis on “enjoying life now” market-coverage strategy in which a firm decides to ignore
ii. Immediate satisfaction of needs and wants market segment differences and go after the whole market
Behavioral segmentation involves dividing a market into with one offer
groups based on consumer knowledge, attitudes, uses, or B. Differentiated marketing (or segmented marketing) a
responses to a product. E.g. market-coverage strategy in which a firm decides to target
• Occasion segmentation: dividing market according into several market segments and designs a separate offer for
groups according to occasions when buyers get the each.
idea to buy, actually make their purchase, or use C. Concentrated marketing (or niche marketing) a market-
purchased item. coverage strategy in which a firm goes after a large share of
• Benefit sought: Dividing market into groups according one or a few segments or niches.
to different benefits that consumers seek from the D. Micromarketing is the practice of tailoring products and
product. Consumers seek unique combination of marketing programs to suit the tastes of specific individuals
benefits e.g. for a laundry detergent, from cleaning and (individual marketing) and local customer groups (Local
bleaching to economy, fresh smell, strength or mildness marketing).
etc.
• User status and user rate Market offers can be differentiated along the lines of:
• Loyalty status ¾ Product
¾ Service
Segmenting Business Markets ¾ Channels
¾ People
Demographic segmentation ¾ Image
¾ Industry (which industry) Considerations while choosing strategy:
¾ Company size (what size) ¾ Company, resources and objectives
¾ Location ¾ Competitor, strategies
Operating variables ¾ Product
¾ Technology (what technology to focus) o stage in the life cycle
¾ User- nonuser status (heavy, medium or light user) o variability
¾ Customer capabilities (many services or few ¾ Market, variability
services) Evaluating Market Segments
Purchasing approaches Segment size and growth
¾ Purchasing function organization (centralized or Segment structural attractiveness
decentralized) ¾ Level of competition
¾ Power structure ¾ Substitute products
¾ Nature of existing relationship ¾ Power of buyers
¾ General purchasing policies (leasing, service ¾ Power of suppliers
contracts, or sealed bidding) Company objectives and resources
¾ Purchasing criteria (quality, service or price)
Situational factors Product Positioning
¾ Urgency (quick delivery/service?)
¾ Specific application Product positioning is imaging the product in the minds of
¾ Size of order consumers relative to competing products.
Personal characteristics Positioning task (or choosing a positioning strategy) consists of
¾ Buyer-seller similarity of values following four steps:
¾ Attitude towards risk (risk taking or averse) 1. Identifying possible competitive advantages
¾ Loyalty (to companies who show high loyalty to 2. Choosing right competitive advantages
suppliers) 3. Selecting an overall positioning strategy
Segmenting International Markets 4. Developing a positioning statement
Companies can segment international markets using one or 1) Identifying possible competitive advantages:
more of a combination of variables. The chief factors that can be Competitive advantage (making a difference) is an advantage
used are: over competitors gained by offering consumers greater value,
1). Geographic location: location or region either through lower prices or by providing more benefits that
2). Economic factors: Population income or level of justify higher prices.
economic development 2) Choosing the right competitive advantages:
3). Political and legal factors: Type / stability of How many to promote:
government, monetary regulations, amount of bureaucracy, etc. Only one difference. Aggressive approach
4). Cultural factors: Language, religion, values, attitudes, More than one differences. Where more than one firms are
customs, behavioral patterns. claiming to be the best at same attribute. However it risks
Requirements for Effective Segmentation disbelief and a loss of clear positioning.
Substantial—segment must be substantially large or profitable. Which ones to promote:
Accessible—segment must be reached and served easily. ¾ Important for buyers
Differentiable—It must be conceptually distinguished and ¾ Distinctive than competitors offer
should have the ability to respond differently to different ¾ Superior
marketing mix elements and programs. ¾ Communicable and visible difference
Actionable—It should be possible to design effective programs ¾ Competitors can not copy easily
for attracting and serving market segment. ¾ Affordable for buyers
Measurable—Size, purchasing power, and profiles of a market ¾ Profitable for company
segment should be measurable. 3) Selecting an overall competitive positioning strategy:
What offer to make in relation to competitor’s offer (Use 2x2 or
Target Marketing 3x3 Grid)
Target market is a set of buyers sharing common needs or Price
characteristics that the company decides to serve.
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More Same Less Research procedure:
More Premium Super The marketing research process consists of following steps:
brand bargain 1. Defining the problem
Quality brand 2. Designing the research (basis of research
Same Average Bargain objectives)
brand 3. Collection of data
4. Analysis of data (Pre and Post testing etc)
Less Cow boy Economy
5. Presentation of report
brand brand
6. Management decision
Other strategies are:
− More for same (Penetration) Defining the problem and designing the research
− Same for less After the problem has been defined carefully, the manager and
− Less for much less researcher must set the research objectives.
4) Developing positioning statement:
Positioning statement is a statement that summarizes Collection of data (Research work)
company or brand positioning, it takes following form: Marketing Research data comprises of
“To (target segment and need) our (brand) is (concept) that 9 Primary Data (Field search)
(point of difference)” 9 Secondary Data (Desk Search)
e.g. Researchers usually start from secondary data.
“To young, active, soft-drink consumers who have little time for
sleep, Mountain Dew is the soft drink that gives you more energy 1. Collecting secondary data: (Desk research)
than any other brand because it has the highest level of Secondary data collection is information that is neither direct
caffeine”. nor specific.
Chapter 20 : Marketing Research Sources of secondary data:
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o Websites
o Email Part F : International Business
Branding:
Expenditures on promotion gives rise to brands. Theories on International Trade
A Brand is a name, term, sign, symbol or design intended to Scarce resource is a resource for which the quantity demanded
identify the product of a seller to differentiate it from those of at a nil price would exceed the available supply.
competitors. 4 scarce resources are Land, Labor, Capital and Enterprise.
Reasons for branding: Scarcity is the excess of human wants over what can be
− Product differentiation produced.
− Conveying lot of information quickly and concisely Production Possibility Curve illustrates limits of possible
− Advertisement needs a brand name. production of two products within given resources.
− The more similar a product is to competing goods; the Opportunity Cost is the cost of sacrificed alternative.
more branding is necessary.
− It facilitates self selection. Mercantilism:
− It reduces price sensitivity. Export > Import
− Brand loyalty gives control over marketing strategy. Zero-sum game (benefit at the expense of other)
− Other products (i.e. new flavors/sizes) can be Absolute advantage:
introduced into brand name/range. (Brand extension) Absolute advantage is producing goods more efficiently
than any other country.
− Eases personal selling
Country should produce goods for which they have an
− Eases market segmentation
absolute advantage and then trade these goods for
Brand strategies:
other goods produced by other countries.
− Brand extension Comparative advantage:
− Multi branding (different names for similar nature goods One step further than absolute theory introducing
serving similar consumer habits) concept of opportunity cost.
Product----------------Names----------------Brands in each name Country should specialize in the production of those
− Family branding goods in which it has lowest opportunity cost.
Relationship Marketing: (Keeping customers; not getting
Why countries avoid specialization
customers)
Sale is not end of process; but start of relationship. ¾ Comparative advantage is never stable.
It is easy, cheaper and profitable to retain old customers than to ¾ Diversification protects fall in world demand.
make new customers because: ¾ Agriculture industry is subject to uncertainties of climate.
− Old are valuable ¾ Import restrictions are possible by other governments to
− Old have trust in company develop self sufficiency.
− Old are satisfied. ¾ Multi nationals may assemble or manufacture in different
countries for political or logistic reasons.
Key account management: (Key Customer Database)
Competitive advantage (national):
− Like relationship marketing but more specific
Porter states that Comparative Advantage is too general
− It refers to how an organization manages its
concept to explain success of individual companies and
relationship with those customers identified as key to the
industries.
organization in achieving its objectives.
He believes 4 conditions (diamonds) within a country help firms
− Factors used to identify a key account: to compete.i.e.
o Historic value of purchases 1. Factor conditions
o Expected future purchases 2. Demand conditions
o Other competitive factors 3. Firm strategy, structure and rivalry
Status within the marketplace 4. Related and supported industries
Personal relationship of people
To prevent a competitor getting a hold
Orientations of International Business Management (by
in market
Perlmutter)
− Extra services given to key account
Time Ethnocentrism:
Finance ¾ Company focuses on domestic market and export is
Procedure secondary.
Hospitality ¾ No local research, marketing mix is standardized.
Auditing Customer satisfaction: (why customers are not ¾ Same products with same market programs.
satisfied ? )
− Customer satisfaction surveys Polycentrism:
¾ Each country is unique and requires customization.
− Work won and lost
¾ Product and market programs must match with local
− Changes in market shares
environment.
− Revenue from newly released products ¾ Company establishes independent local subsidiaries
− Rude and unhelpful staff and decentralizes marketing management.
− A policy is to encourage customers to complain( 96%
do not) Geocentrism:
¾ Synthesis of two approaches.
Technology Development – Interactive marketing: ¾ Think globally, act locally.
Interactive marketing in instant communication and responses ¾ Integrated approach to create a global strategy that is
between promoter and customers. It may be called sometimes fully responsive to local market.
as Computerized Personal Selling e.g.
− DRTV (Direct Response Television) Regiocentrism:
− Interactive Internet websites ¾ It is Geocentricism but that it recognizes regional
− Interactive Kiosk differences.
CH 21 : Strategic Options (NEW)
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Evolution and Reasons of Global Business (by Ohmae) For Govt.
Evolution: i. Surplus deficit balance
ii. Political advantages
iii. To support govt. policies (e.g. Balance of Payment)
Ethnocentrism
For Company
1. Export (extension of home sales) i. Large market encouraging economies of scale.
2. Overseas branches (when turnover is large, greater ii. Increased competition at home market
investment) iii. Mature or declining home market
3. Overseas production (exploits cheap labor and reduces iv. To dispose excessive/discontinued products.
exporting cost) Exchange rate:
Purchasing Power Parity theory calculates exchange rate
Polycentrism based on relative cost of purchasing same basket of goods in
4. Insiderisation (full functional organization having two countries.
production and distribution system is set-up overseas, A currency’s exchange rate is also determined by Demand and
company is multinational) Supply. They in turn are determined by Inflation, Speculation,
Interest rates, Govt. policies and Balance of Payment.
Geocentrism Exchange rate risk is the risk that foreign currency will
exchange in smaller amount of domestic currency in future.
5. The Global Company
Types:
Reasons: This can arise under any of three Exchange Rate Systems i.e.
5 Cs 1. Fixed (Central bank interferes to fix the rate)
1. Customer (market convergence) 2. Managed (Like fixed but allowed to vary between
2. Company (economies of scale) preset limits)
3. Competition (Keeping up) 3. Floating (depends on supply and demand)
4. Currency (exchange rate risk) Managing exchange risk:
5. Country (Absolute and comparative advantage, local − Hedging devices
orientation)
− Flow of money in both directions.
Other reasons:
Low requirement for local High requirement for local adaptation and
adaptation and responsiveness responsiveness
Global environment Transitional environment
High pressure to Geocentric orientation Polycentric orientation
Globalize Global product divisions Integrated system and structure
Chemicals, Construction Pharmaceutical, motor vehicles
(focus of organization is heteroarchy)
Low Pressure to International Environment Multinational environment
Globalize Ethnocentric orientation Polycentric orientation
International division National or regional divisions
Paper, textile Fast food, tobacco
− Strategic options
Planning to enter Foreign Market − Budgets
Phase 1: Preliminary analysis and screening: − Action programs
− Evaluation of available markets (to exclude obvious unfit)
− Applying screening criteria to evaluate remaining Phase 4: Implementation and Control
markets (criteria might include Profit, Market Share, − Objectives and Standards
Quality) − Assign responsibilities
− Analysis of environment conditions in each country − Measure performance
Porter’s 5 forces analysis − Corrective actions
− Choosing country (i.e. Target Market) Problems in International Planning:
Screening Process consists of : (by Jeannet and Hennessy) − Foreigners don’t know local culture, feelings, attitudes
¾ Marco level research − Local level problems
Environmental analysis Different attitude to product and marketing task
Climate and demographic Lack of strategic outlook and marketing
¾ General Market factors expertise
Size of market Resentment at being bossed around
Regulations Unclear goals
Culture Inadequate control
¾ Micro level research − HR considerations to be managed at local level
Competition − Poor IS and Communication
Transportation − Diversification of countries over population, income,
Healthcare development, education etc.
Education − Time horizon
Labor
¾ Target Market
International Marketing Research
Phase 2: Adapting the marketing mix to target markets:
Deciding Adaptation or Standardization Objectives:
− Availability and quality of information is enhanced for
Phase 3: Developing the marketing plan: planning.
− Situation analysis − Change in customers needs and preferences is timely
− Objectives observed.
− Competitors’ plan and strategy
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− Finding of new markets Wish to preserve secrecy
− Opportunities and Threats Cultural taboos and norms
− Trends of market − General problems (developed vs. undeveloped)
− SLEPT analysis No suitable list (sampling frame)
− Technology – Quality of information Inadequate communication infrastructure
Low level of literacy
Information sources for International Markets: Problems of language and comprehension
− Human sources
Managers of subsidiaries, associates, branches Entry in International Market
(relevant + unpublished + biased) Entry in International Market could be through:
Consumers, Customers, Distributors, Suppliers ¾ Foreign Direct Investment/Overseas production
and even Competitors 100% owned subsidiary
− Documentary sources (Publications etc., not to the point) Joint venture
− Direct sources o Industrial cooperation/Contractual (fixed period)
Direct observation and specialist knowledge o Joint-equity venture (continued)
Direct observation and background information ¾ Export
Personal experience supporting indirect Direct (greater control but lesser market knowledge)
information o To Branch office
Export publications o To Agents between importer and exporter
Export Market Information Centers o To Wholesaler, Retailer or Consumers
Indirect (greater market knowledge but lesser control)
IMR Process: o Through Export houses
− Monitoring o Through Specialist export management firms
Passive information gathering (Market not yet o Through UK buying offices of foreign stores and
targeted) government
Identification of market for which information o Through Complimentary Export (i.e. Piggy back
needs to be gathered. export)
− Investigation (accurate assessment of market ¾ Licensing
opportunities) Giving right to use production process for Royalty.
Existing demand; where customer’s needs are
already being served. Critical analysis of entries
Latent demand; where potential customers are
currently recognized but are not being served. Foreign Direct Investment is direct investment in business
Incipient demand; where there is foreseeable, operations in a foreign country. It may be:
but not a present, market for products. 1. Horizontal FDI (investment in same industry abroad)
− Research 2. Vertical FDI (investment in an industry abroad which
Define scope of project provides input to firm’s domestic operations.
Define projects, information needs i. Backward Integration (to acquire raw
Evaluate available sources for required material)
information ii. Forward Integration (to establish
Undertake desk research final product)
Undertake field research
Selection criteria for entry mode: (Factors to be considered)
Using IMR data: Mode varies among firms, according to markets and over time.
¾ Firm’s marketing objectives (in relation to volume, time
− To estimate patterns of demand/consumption in
scale and coverage)
individual markets by
Demand pattern analysis − Low ----------export
Income elasticity of demand − High----------produce locally
− To compare patterns of demand/consumption in different ¾ Firm’s size
markets by − Small--------export
Comparative analysis ¾ Mode availability
Intermarket timing differences − Govt. may restrict modes
− To identify clusters of markets with similar characteristics ¾ Mode quality
− To identify strategically equivalent segments − Qualified, trained staff is necessary for export of
high technology goods.
Problems in IMR: ¾ Human Resource Requirement
− Secondary data problems − If staff is suitable---------Direct export
Lack of data − If staff is not suitable----Indirect export (agent
Not timely, out of date information gathered on based)
unpredictable schedules ¾ Market information feedback
Not comparable, different data definitions in − Is received in case of Direct export.
different countries ¾ Learning curve requirement
Lack of reliability − Heavy investment calls for learning curve i.e. close
− Response problems (People’s unwillingness to provide observation through direct export before investment.
info) ¾ Political risks
Tax evasion and avoidance of responsibilities ¾ Control needs.
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FDI vs. Export vs. License:
FDI(Foreign Direct Investment) Export License
− Lower production cost − Concentration on − Avoids costs and hassle
− Better understanding of production of setting up overseas.
Market and Customers. − Economies of scale − Rapid penetration
− Lower transportation − Consistency of product − No investment
cost. quality − No Political risk, No
− Overcomes tariff and − International experiment Protectionism
Advantages
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¾ Common external trade policy is adopted. Issue of equity in a market outside the company’s own domestic
Common Market: market.
¾ Similar to customs union except it allows factors of Not developed like Euro bonds, hence ‘sweeteners’ are added
production to move freely between countries. e.g. Rolling Put Option
Economic Union:
¾ It is Common market but more closer integration Euro bond:
including establishment of common currency and tax Currency differs country of issue (underwritten by international
rates. syndicate of banks and sold internationally)
Euro bonds are suitable when:
Taxation issues in FDI − Large organization with excellent credit rating
By structuring the group, tax advantages could be availed. − Requires long term loan for capital expansion
Foreign tax credit avoids double taxation in both countries. − Requires borrowing not subject to national exchange
Tax havens is a country with exceptionally low or even no control
income tax but there should be: − Interest rates are fixed or floating with minimum.
Stable currency and Govt. Investors of Eurobonds will be concerned about:
Adequate financial services support facilities. ¾ Marketability
¾ Anonymity
Capital Structure Decisions ¾ Return on Investment
Equity or borrowing ¾ Security
If equity, Parent’s or Subsidiary’s
If externally, from host or other country Euro currency:
What Currency (same to avoid fluctuation and Eurocurrency is any currency banked outside of its country of
symmetry) origin e.g. Eurodollars are dollars banked outside United States.
How much and what period Euro Currency loan:
Factors influencing choice of financing: UK company borrows in US $ from a UK bank, it is a Euro Dollar
1. Local finance cost loan.
2. Taxation system
3. Restriction on dividend remittance Euro credits: like Euro currency loan
4. Flexibility in repayment Commercial papers:
An example of Securitization.
Short term financial instruments
Global Capital Market
Issued in the form of unsecured promissory notes with a
International banks (provide financial and other services) fixed maturity date.
Factors affecting development of international banks: Issued in bearer form
1. Globalization (Trade of securities world wide e.g. Euro Issued on discount basis
equity) Companies with net capital of 25 million can issue it.
2. Securitization (Debt via issuance of securities e.g. Euro Syndicated credit market:
bonds, Euro commercial papers) − Provides credit at high rates over LIBOR.
3. Deregulation (national barriers) − Suitable for
4. Disintermediation (directly from investor) Takeover bids
5. Increased foreign exchange and interest rate volatility Govt. borrowings
Project financing
Benefits of international banks: Credit is a facility whereas Loan is a transaction.
1. Financing of foreign trade MOFs:
2. Financing of capital projects Multiple Options Facilities (MOF) comprise variety of
3. Provision for advice and information instruments through which company can raise funds and include:
4. Providing full local banking services in different countries ¾ Note Issuance Facilities (NIF)
5. International Cash Management services ¾ Revolving Underwriting Facilities (RUF)
6. Trading in foreign exchange and currency options
7. Participation in syndicated loan facility
Counter Trade
8. Lending and borrowing in foreign and euro currency
markets Counter trade is a trade of goods and services for other goods
9. Underwriting of euro bonds and services.
Standardization Vs. Adaptation: whether to adopt or not is linked with promotional issues.
Product Standardization Product Adapted
Occasional exporters Single product meets the same
Communication Also major companies need in all markets but need to
Standardization seeking economies of be adapted.
scale
Communication Adaptation Same product for Costly
different uses in Required to exploit market fully
different countries
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Rules of game are understood.
Similar purchasing habits. Cash Pooling is netting of Debit and Credit balances with same
Economic factors: bank to reduce interest cost.
Single currency
Uniform financial climate Short term Investment:
Stable business environment
Competitive factors: How Cash surplus arises
Data collection is easy and accurate.
− By profitability
Political factors:
Relatively unimportant − By low capital expenditures
Technological factors: − By receipt from selling part of business
Standard production and measurement systems
How Cash surplus is utilized
Motivating international agents: − Takeover bids
− Communication − Buy back of shares
− Assuring long term business relationships − Short term investments
− Regular and frequent personal contacts o Banks
− Exclusivity o Investment in listed shares
o Investment in debt instruments
Hofstede’s model of national culture: Certificate of Deposits (certificates by bank
Hofstede pointed out that countries differ on following acknowledging deposit for specified time)
dimensions: Treasury bills (IOUs by govt. issued weekly for
1. Power distance how for superiors are expected to 91 days to finance govt. projects)
exercise power Eligible bank bills (IOUs by those top rated
2. Uncertainty avoidance some cultures prefer clarity banks whose bill Bank of England agrees to
and order while others prefer novelty buy)
3. Individualism in some cultures, it is individual Bills of exchange
achievement what matters. Local authority bonds
4. Masculinity in such culture, roles of sexes are clearly Commercial papers
differentiated. Certificate of Deposits, Treasury bills and Eligible bank bills are
Negotiable and Resalable.
Hofstede grouped countries into eight clusters:
1. More developed Latin International payment modes:
2. Less developed Latin ¾ Cheque
3. More developed Asian ¾ Lock boxes (speeds up payment by cheque)
4. Less developed Asian ¾ Bills of exchange
5. Near Eastern ¾ Bank draft (cheque by a bank drawn on one of its own
6. Germanic account)
7. Anglo ¾ Mail Transfer
8. Nordic It is a written payment order authenticated by
Type of industry and size of company is also important. official in sending bank which
Instructs by Airmail to pay a certain sum of
Finance in International Business money to a beneficiary.
Treasure ship: ¾ Telegraphic Transfer
Treasure ship is the function used with provision and use of Like mail transfer but instructions are sent by
cable or telex instead of by airmail.
finance. It covers
Provision of short term borrowings/ capital Speeder, Costly and Confidentiality than Mail
Transfer.
Foreign Currency management
Banking ¾ SWIFT (Society for Worldwide Interbank Financial
Collection Telecommunication)
Provides rapid electronic fund transfer
Money market investment
In addition to banks, users include Security
Treasury department should be cost center or profit center?
houses, Exchanges, Money brokers, Fund
Cash Management: managers etc.
Centralized Cash Management: ¾ International Money Orders
1. Avoids mix of cash Surplus and overdraft.
Transfer pricing:
2. Large volumes of cash are available to invest
3. Any borrowing could be arranged in bulk at lower rates. Basis include
4. Foreign currency risk management in improved. Standard Cost
Marginal Cost/ Full Cost/ Opportunity Cost
5. Specialist Treasury Department will employ experts.
Market Price
Decentralized Cash Management: Market Price – discount
1. Great autonomy Negotiated Price (any other basis)
2. Quick and more response to needs of individual
operating units Advantages of having Market Disadvantages of having
3. More opportunities to invest on short-term basis. Price as Transfer Price Market Price as Transfer
Price
Float is amount of money tied up between initialization and 1. For buying department 1. Market prices may be
finalization of payment. i. Better quality of temporary.
Measures to reduce Float include: services 2. Disincentive to use
− Lodgment delay should be minimum ii. Greater flexibility spare resources as
iii. Dependability of supply compared to
− BACS
2. For both departments incremental cost
− CHAPS
i. Lower cost of approach.
− Standing orders/ direct debit for regular payments administration, selling 3. Buying department may
− Lock boxes for international payments
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and transportation enforce discount. − Increased scrutiny of business decisions by govt.
4. Many products don’t and public.
have equivalent market − Increased deregulation
prices. − Changing business practices (e.g. outsourcing,,
downsizing, reengineering)
HRM in International Business − Changing social and business relationship
between companies, employees, customers and
HRM issues in International Business: other stakeholders.
1. Expatriate or local management Porter’s national competitive advantage:
Expatriate (as compared to local) There are 4 determinants of national competitive advantage.
Advantages: Key Issues:
− Poor − Costs more Factor conditions
educational/technical − Lesser local These are a country’s endowment of inputs to production e.g.
opportunities in local knowledge Human Resources, Physical resources, Capital, Knowledge and
market − Culture shock infrastructure.
− Greater control − Language/ These factors could be
− Better central Communication − Basic (inherited and creation involves less
communication training required investment e.g. natural resources) or
− Corporate picture is clear − Advanced (include modern digital
2. Recruitment and Training communications, highly educated people and
3. Career management within firm research laboratories etc.)
4. Appraisal schemes Demand conditions
5. Communication with staff (e-mails, conferences and The home market determines how firms perceive, interpret and
news letters etc.) respond to buyer needs.
Changes in World marketplace: (by Jerry Wind) Related and supported industries
− Globalization of businesses Competitive success in one industry in liked to success in
− Science and Technology development related industries.
− Strategic alliances Firm strategy, structure and rivalry.
− Changing customer value and behavior
Annexure “A”
Topic PBP Reference Topic PBP Reference
Chapter 4 & 5 : Strategic Management : Chapter 18 : The Evolution of Marketing
Levels of strategy Figure Concept
Traditional approach to make strategy Explanation Marketing management Explanation
Activities affecting Crafting strategy Explanation Elements of marketing mix - Promotion Details
Learning based strategy Explanation Value-chain Explanation & examples
Competitive strategy Overview Marketing process Details
Chapter 7 : Performance Appraisal & Chapter 19 : Strategic Marketing &
Measuring performance of profit center. Exp. & exmp Planning
Inflation Detail Development in segmentation Details
Chapter 9 : Corporate Re-organization Benefits of market segmentation Details
Management buy-out Details
Chapter 10 : Ethics and Social Resp. Target Market Explanation
Social responsibility - Favors - Externality Explanation Evaluating market segments - porter’s 5 F Explanation
Chapter 12 :Human Resource Management Competitive strategy options Details
Different concepts - Pg : 298 Identifying gap in market positioning Explanation
Termination Details Chapter 20 : Marketing Research
Chapter 14 : Groups in Organization Research procedures - Analysis of data Explanation
Effects of conflicts within groups - Groups & Details Collecting secondary data - internal and Details
Departments external databases
Chapter 15 : Strategies for Critical periods Questionnaires Details
Corporate Decline - 3 types of decline Explanation Marketing Information System (MkIS) Explanation
Chapter 16, 17 : Change Management Env. Marketing Decision Support System Explanation
Nature of strategic change Explanation Market Sensing Explanation
Model for change Explanation Service Quality (SERVQUAL) Explanation
Approaches to implement change Explanation Sales Forecasting [Forecasting demands] Explanation
Force Field Analysis Explanation Marketing Communication Explanation
Change process Details Chapter : International Business
Pressure groups Explanation & Competitive advantage Details
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