Corporate Philosophy of Management CORPORATE PHILOSOPHY OF MANAGEMENT calls for creating a framework of values, beliefs and ethical standards which are considered to be vital for an effective management. They must be embedded in formal and informal philosophical statements which are then communicated to the fraternity of that organization. From a broader perspective, the LEADER has to have a VISION as to where he is heading his company in the next three to four years. Corporate Objectives provide vision as well as direction and map for bold decisions to be taken regarding NEW MARKETS MARKET SHARE PRODUCTS SERVICES etc. , Now the organization is in a position to decide and prioritise the VALUES AND COMPETENCIES it expects from its managers. For example, if the situation favors the business expansion to new markets, say, European or Asian, then an organization has to develop competence in areas like LANGUAGE AND CULTURE, besides marketing and business skills. Different Philosophies of Management: Well, you might have been inspired with JAPANESE PHILOSOPHY OF MANAGEMENT, EASTERN OR WESTERN PHILOSOPHY OF MANAGEMENT t. But what is the fun? If you don’t have A SOUND MANAGEMENT PHILOSOPHY of your own, to simply put it, you don’t have a broad set of principles to back up your management development process which is a generic one. Ideally speaking, you should be able to develop a concrete SYSTEM that is made up of FOOL PROOF policies and procedures; try to develop a professional team of executives who can take up your vision to the next level; these measures will prove worthwhile in the long run. You are left without any choice but to develop “truly” INTERNATIONAL MANAGERS who could transcend nationally and the location of any specific job consideration. This is what Ideal management philosophy means to me, A holistic vision of the future A solid set of principles(values, beliefs) Sound policy definition Management development programmes Autonomy to my work force Always “yes “to new technology Development of women managers Flexible leadership Social responsibility Contribution to the growth of my Country’s economy Strategic Perspective: Major environmental shifts now demand a more strategic perspective from those who manage and lead in organizations; “GLOBALISING” in the quest for major market share brings in new opportunities for growth and prosperity. Organizations are now espousing values that regard people, not as costs to be minimized, but AS “ASSETS TO BE MAINTAINED AND DEVELOPED.” An open systems approach of management is likely to overcome many of the problems created by the piecemeal approach. Instead of looking at management development in isolation, see it as an integral part of a wider organizational system that takes care of the processes through which people working for the firm take care of themselves leading to self...

How can we define Business? Business is an important institution in the society. Be it for the supply of goods and services; Creation of employment opportunities; Offering better quality of life; Contribution to the economic growth of a country; the role of business is crucial. The subject of business is as interesting as its role in society. The more one reads about it, more interesting does business become. To be successful, you have to have your heart in your business, and your business in your heart. – Thomas Watson Sr. Entrepreneurial activities The increasing number of business schools and institutions signify the importance and the need for training the students on rudiments of business management. Developing countries encourage entrepreneurial activities and view it as a strategy to improve the GDP (Gross Domestic Product). More business activity means increased per capita income and increased standard of living. A business must make profit to succeed. Profit is income minus outgo. It is the main incentive for starting a business. Business people weigh each of their decisions in terms of making profit and avoiding loss. In a corporate environment, business has to aim for wealth maximization apart from profit maximization to increase the shareholder’s wealth in the long run. The scope of business is indeed vast. It all depends on how well you have analyzed and understood the nuances of your business activity, in order to survive and sustain in the market. Supply Chain The supply chain in a business activity involves numerous links in the form of manufacturers, supplier of raw materials to the manufacturer, dealers, logistics, intermediaries, consumers, bankers, advertising agencies, insurance agencies and so on. All these elements have to function in a coordinated manner for the benefit of the consumer. Now days, business has become customer-centric rather than product-centric. This serves both the purpose of product development in lieu of customer needs and customer satisfaction. The multitudinous activities involved in bringing raw materials to the factory and the end product from there to the market constitute business. In addition, a business activity has to comply with legal restrictions and government regulations. A business is also expected to discharge its social obligations to consumers, employees, owners and to other interest groups, which have stakes in business directly or indirectly. Planning and organization Planning and organization are two key principles in running a business enterprise as planning sets up a concrete premise on which action plans can be developed and organized activities assures definite success. Modern business is dynamic. Future business will be knowledge based and brainpower will be in greater demand. Organizations have become flat. Eight to twelve organizational layers have been reduced to two or three. Gone are the days of sheltered markets, subsidies, licenses, quotas and restrictions. Businesspersons are asked to stand on their feet, to eliminate inefficiencies, cut down costs and improve productivity. LoL! It might be said that it is the ideal of the employer to have production without employees and the ideal of the employee is to have income without work. –E. F....

The Realm of Product Innovation A manufacturer or a service provider, who aspires to be successful in a business market, must indulge himself in research, pertaining to consumer preference as well as the various stages of a product life cycle. This will give him a better chance to make his future decisions concerning the product and also the wisdom to evolve strategies accordingly. Developing a product and introducing it into the market demands certain amount of forethought and prudence. The first step is to study the market, to understand consumer preference as well as to gauge whether your product will be appealing to the customers existing in that market. The prerequisite for this would be market segmentation, that is to statistically estimate the demographic quotient (people belonging to different age groups and ethnic societies) of the sample population and decide on the customers whom you want to target. A product’s success depends mainly on two things: 1) Innovation-lateral thinking, by which you let loose of all your unorthodox methods and stick onto some novel ideas of marketing. 2) Customer-oriented marketing rather than product oriented. This customer oriented concept is advocated by modern marketing consultants and it has proven to be a fantastic proposition. More than the actual product, people like to know more about the values that they obtain out of that product. The secret behind success will be to hit the right note, by propagating more about the value added services that go with the product. Expectations Created by the Product When a product is introduced in a market, say, automobiles for example, since every tom, dick and harry is fond of cars and bikes and they talk a lot about it. It is looked upon by prospective customers with great expectations, which might be due to the great hype created by the manufacturer through advertisements in electronic media, papers and magazines. The product as it hits the market will instantaneously make it big, if it has the right mix of intangible and augmented benefits that make customers happy and they feel that they have bought something worth the money paid for. A luxury car is well received by the market, irrespective of the price tag that is stuck to it, just because of the value added benefits such as, delicacy, great speed, high-performance, safety, insurance and warranty. Product Pre-Launch Analysis Before launching a product, industry analysis is a must, as various similar products might exist and it comes to the question of how different and appealing your product is, for market acceptance. Even minor things can make a big difference, say, for instance, if you are able to float the cheapest car, in terms of price but with great fuel efficiency, the results are obvious. The strategy would be to introduce innovations not only in your product but also in your thinking. Best products emerge as a result of tuning in your wavelength with that of the consumers’. Product Life Cycle A product gets introduced, grows, matures, stabilises and slowly withers off, just like a human being. No man is eternal and so is a product. You may argue that some products are in the limelight for more than their share of lifetime. If you keenly observe, that would have been the result of makeover changes to the product in lieu of the change in people’s liking and analysis of market trend. Some products have a second chance to prove their mettle. They go into hibernation for a while and then re-enter when market conditions seems to be favorable. The perspective from which you look at the life cycle of a product may cast a different idea...

Product Modification – Solid Strategy to Capture Untouched Market Segments There is a pressing need for business firms to bring about changes in the physical attributes of their existing products periodically, to retain the customer base as well as to tide over the competition in the market. A number of factors may prompt the manufacturer to modify his product. To make best use of the technological advancement for the benefit of the firm Modification in lieu of competition To regenerate a product suffering from sales decline Product Attributes: What could be modified; it may be anything, the color, size, material, functional features, styling and engineering, etc., or a combination of these could be considered for modification. Ultimately these modifications should result in products emerging with better quality, features and styling. Consumer goods are offered with a wide range and variety to appease the different taste of the consumers as well as to stand unique in the market; Bathing soaps, talcum powders and cosmetics to name a few. Even producers, who are involved in core industries like textiles and garments, come out with a range of products to cater to the specific requirements of the customers. Product modification is different from product specialization that applies to high end customers whose specifications are based on the end use of the product and the target market. For example, mélange yarn is a specialized product used for producing better color shades for knitted fabrics (hosiery sector). Product modification concentrates more on increasing the appeal of the product by presenting it with attractive and improved attributes like, better packing and features. Strategy to Improve Quality: The strategy of quality improvement aims at increasing the functional performance of the product- its durability, reliability, speed, taste, etc. The added advantages would be versatility, safety and convenience. The benefits of feature improvement includes, Builds company’s image Can aid in winning over the target market Gives free publicity for the firm Infuses enthusiasm in the internal environment of a firm, amongst the sales force and distributors Style Improvement: Style improvement aims at improving the aesthetic appeal of the product. Why do you think automobile manufacturers are in the process of introducing new models of cars every so often? It is a strategy that amounts to style competition rather than quality or feature competition. This kind of style modification has to be done after extensive market research to gauge the preference of the people in the target market and to avoid colossal monetary loss if in case there is a negative feedback from the market. Manufacturers of house hold products can always take the risk of going for small modifications in terms of texture and style as new features can be adapted quickly, dropped quickly and often made optional at the least expense. A firm has to mix and match its product modification strategies to maintain its competitive position and to keep itself abreast of the latest developments in the market...

Customer Centric or Product Centric Customer centric: refers to the orientation of a company to the needs and behaviors of its customers. Product centric: refers to the orientation of a company towards manufacturing and improving the product line. All products that enter the market are not given the kind of welcome which only certain products are able to enjoy. Why is that only few products are top notch and others average performers? The answer is very simple, you need to be customer centric rather focusing on improving your product and its range. What is the fun in making products that go bland over a period of time? Creating an appealing product does not suffice the requirements of the consumers. Understanding the consumer, his needs and preferences makes you a good marketer. “What people want to buy and what you want people to buy are entirely two different entities.” Customer Wanton and Preferences Marketing is a concept that talks about creating a favorable environment or identifying a niche where you can sell your products comfortably or where the products can sell themselves provided the focus is on the target customer. What companies do now in the name of marketing is nothing but product promotion that exhausts huge chunk of money from the management’s treasury. Business schools have a great role to play in idealizing these concepts for the better understanding of management graduates, make them deliver the right choice of action in real time environment. Marketing starts right from developing a prospective business idea into a concrete business plan followed by branding and promotions. But the product base has to be built upon customer wanton and preferences. Indigenous Products The soft drink “Bovonto” is very popular and a preferred drink in south of Tamilnadu, India and the manufacturers have their plants at various places in Tamilnadu. Although not a big name in the international market, it is a direct competitor for Coke and Pepsi in the southern regions of Tamilnadu. The grape vine is that the product is a perfect “market fit”. To our amusement and amazement the product has communicated well with the market place through taste and quality. Here is the unerring message, ‘Let the product speak for itself’. Indigenous products always gain instant recognition as they connect well with the local people emotionally. If people of each and every country vows only to buy indigenous products, many MNC’s would be out of business and filing for bankruptcy. Such is the power of the market and people who are the owners of the market. What is that ‘X’ factor that makes your product different and unique Let’s look at it from another perspective. Incidentally you happen to develop a great product and you want to market the product. This situation calls for patenting the product and again it can be made market centric by finding the right market segment for the product and promoting it in such a way that the product content appeals to the market. Tell the masses how your product can solve specific problems through its unique content. What is that ‘X’ factor that makes your product different and unique as well is what you have to communicate to the people whom you are targeting. Facebook has revolutionized the internet marketplace by offering simple and user friendly interface and a sophisticated niche for each and every individual who wants to make his/ her presence felt. A good business plan is one which incorporates the best of ideas from all spheres of the company, as marketing is not a separate entity and promotions call for huge investments. Many companies fail to understand the basis of market success which...