Stakeholders are all those people or businesses that are essential for a company, because they contribute to keep it afloat or in operation. They can be affected if their expectations or needs are not met. There are three interested parties: suppliers, customers and investors. Each of them is an indispensable part. Without its essential contribution, the business could not be sustained or built. Suppliers provide the input, customers are those who consume our products and refer us to new prospects and investors or owners, contribute their capital for the sustainable development of the business. Stakeholders can benefit or be harmed by any action or decision taken. That is why every business or company must identify them and know their needs and expectations to fulfill them. Since above all, they are the ones that contribute in a special way to our business. Stakeholders have increasingly become an essential component of business Continue reading
Modern Management Approaches
The Toyota Way Philosophy
Japanese quality movement was a miracle and created world-class products. All these methodologies and concepts developed these quality gurus for internal process and quality improvement crisis are still practiced in various companies. These have become universal approach to improve the quality and manage performance crisis. Quality gurus created work culture and dedicated teams, which developed Japanese production systems through group activities. Toyota Corporation developed a new philosophy to create major change in manufacturing systems and delivered world-class products with internal benchmark for quality of vehicles. In reality, Toyota changed external business environment for competitors and created a long-lasting impact on automobile industry. The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation’s managerial approach and production system. It consists of principles in two key areas: continuous improvement, and respect for people. Toyota use operational excellence as a strategic weapon. Company places the highest value Continue reading
The Nature of Organizational Change
Organizations introduce changes through people. Unless the people are willing to accept the need and responsibility for organizational change, intended changes can never be translated into reality. In addition, individuals have to learn to adapt their attitudes and behavioral patterns to constantly changing environments. Management of change involves both individual and organizational change. Individual change is behavioral change, which is determined by individual characteristics of members such as their knowledge, attitudes, beliefs, needs, expectations and skills. It is possible to bring about a total change in an organization by changing behaviors of individual members through participative and educative strategies. Although, the degree of difficulty involved in the change and the time taken to bring about the change will depend on the target of change. The attitudes towards change are largely dependent on the nature of the situation and the manner in which changes are initiated and executed. Changing individual behavior Continue reading
Entrepreneurial Marketing
Entrepreneurial Marketing is the combination of two discrete management areas. Existing as distinct disciplines, entrepreneurship and marketing have emerged to capture the several facets of marketing that are often not explained by existing traditional marketing theories and concepts. Definitions of both marketing and entrepreneurship differ considerably and we cannot expect that one single definition of entrepreneurial marketing will cover everything. A contemporary definition that meets the present scope in which entrepreneurial marketing is defined as: “the proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation.” Recently, entrepreneurial marketing has gained popularity in the marketing and entrepreneurship disciplines. The success of business activities pursuing non-traditional marketing approaches can be attributed to entrepreneurial marketing practices. Despite the large numbers of marketing models and concepts, there are notable successes that deviate from these and are labeled “entrepreneurial.” Economic growth Continue reading
Five Domains of Emotional Intelligence
Several studies have demonstrated that individuals with purely high IQs possess a great range of intellectual interests and abilities, they have difficulty dealing with their own emotions and with the emotions of others. Other intangible characteristics and abilities, such as self-motivation, impulse control, the ability to regulate one’s own emotions, and empathizing with others clearly have an effect on a person’s accomplishments in life; these qualities have been collectively termed Emotional Intelligence. People with high emotional intelligence levels excel socially, are outgoing and cheerful, are rarely fearful or worried, and are sympathetic and caring in their relationships. Read More: Four Components of Emotional Intelligence Five Domains of Emotional Intelligence Emotional intelligence can be broken down into five main domains: knowing one’s emotions, managing emotions, motivating oneself, recognizing emotions in others, and handling relationships. 1. Knowing One’s Emotions – Self Awareness People deal with their emotions by either being aware of Continue reading
Judo Strategy in Business
Judo Strategy, a term coined by David Yoffie of Harvard Business School in his book ” Judo Strategy: Turning Your Competitors’ Strength to Your Advantage”. “In the martial art of judo, a combatant uses the weight and the strength of his opponent to his own advantage rather than opposing blow directly to blow. Similarly smart companies aim to turn their opponent’s resources, strength and size against them.” Judo strategy in business scenario effectively means avoiding direct confrontation and leveraging the strength of the opponent to create space. Judo strategy can help small companies to enter new markets and defeat stronger rivals. Through movement, flexibility, and leverage, new players can occupy uncontested ground and turn the strengths of dominant players against them. Movement: In this step one needs to maintain a low profile so that while his business is under growing stage he can avoid attacks from well established players. At Continue reading