Business model is a concept used in explaining various aspects of the business ranging from its value proposition to the innovation process that a particular business entity wants to adapt in its business activity. A a business model comprises two elements. These are a specific business system and a profit model. The aim of framing a business model is to conceptualize a picture on how a business operates in its operating environment. In addition to this, a business model also provides the opportunity of using the available resources best as per the ability of the firm. The aim of the firm is to maximize the utilization of the resources available to them. The two components of the business model are inclined towards describing the maximum utilization of the resources and deliver the products to the consumers in a profitable manner. The business system is concerned with the system of work Continue reading
Modern Management Concepts
Overcoming Resistance to Change
In the previous post, we deal with the various sources of resistance to change. In this post we discusses strategies and tactics to overcome resistance to organizational change. Kotter and Schelsinger (1979) has identified six general strategies for overcoming resistance to change. Education and Communication : Resistance can be reduced through communicating with employees to help them see the logic of a change. This tactic basically assumes that the source of resistance lies in misinformation or poor communication. If employees receive the full facts and get any misunderstanding cleared up, resistance will subside. Communication can be achieved through one-to-one discussions, memos, group presentations, or reports. Does it work? It does, provided the source of resistance is inadequate communication and that management-employee relations are characterized by mutual trust and credibility. If these conditions don’t exist, the change is unlikely to succeed. Participation and Involvement : It is difficult for individuals Continue reading
Organizational Effectiveness Through Adaptive-Coping Cycle
The organization must develop a system through which it can adapt or cope with the environmental requirements; Edgar H Schein has suggested that an organization can do this through the adaptive coping cycle, which consists of various activities that enable an organization to cope with the dynamics of environment. Adaptive-Coping Cycle is a continuous process. There are six stages in the adaptive-coping cycle as follows: Sensing of Change: The first stage is the sensing of change in internal or external environment. Most of the organizations have adaptive sub-system such as marketing research, research and development and other similar devices for effective coping with the environment. Importing the Relevant Information: Organizations must be able to take the relevant information from the environment, which constitutes the input. Changing Conversion Process: The organization takes the inputs from environment for further processing, normally known as conversion process. Stabilizing Internal Changes: The fourth stage of Continue reading
Open Innovation vs. Closed Innovation
Innovation is one of the important catalysts to the sustainable organizational growth and performance. The term of innovation is already used over the century ago and innovation meaning is focus more on the changes or improvement made by the organization either to their product/services, processes and paradigm. Innovation is the use of new technological and market knowledge to offer a new product or service that customer want and the new product must new, lower cost and the attributes of the product are improved with the attributes that never existed in the market before. The concept of innovation also defined as the process of making changes of something established by introducing something new that adds value to customers and contributes to the knowledge store of the organization. In simple words, innovation is described as a change that is made to the product and services and also to the process. Innovation has Continue reading
Case Study: Credit Card Attitudes and Behaviors of College Students
Credit cards have been very big business for several decades. The cards have made the life easier for many people because they do not need to carry large amount of cash for most purchases. However, the credit card industry is intensely competitive, highly fragmented, and growing at the rate of 3 to 4 percent. Many college students are living on the verge of a financial crisis. For this purpose many banks are interested to consider this assertion by examining college students’ credit card use behavior and attitudes. A concurrent purpose was to test the factors associated with students’ attitude toward credit cards. College students’ use of credit cards has recently received increased visibility throughout the media concluded that in addition to credit problems many students do not have a written budget, and of those who do have a budget few young people actually use it. They determined that university students Continue reading
Keiretsu – The Japanese Business Network System
The cooperation may be witnessed in highly competitive business environment. Tata and Fiat have arrangements in relations to cars. Such cooperation is not necessarily restricted to the organizations producing or dealing in same product or services. They may identify some common interest for cooperation between them. A cold drink manufacture may enter into arrangement with a chain of restaurants to offer its beverages to the clients of restaurants. Lately, various credit card companies are entering into arrangements with other businesses to launch co-branded credit cards. Such arrangements help in reaching greater number of customers. The benefits of cooperation are also seen in Japan, where large cooperative networks of businesses are known as Kieretsus. Keiretsu, also known as Kigyo Shudan, is an umbrella term that describes various highly complex and interdependent relations. These are formed in order to enhance the abilities of individual number businesses to compete in their respective industries. Continue reading