Myth 1. Find out short coming
Better alternative: harmonize with the the company
Myth 2. Do something and go for quick wins.
Better alternative: Find out what ticks in the company.
Myth 3. Establish new team by identifying the best functional specialists.
Better alternative: Focus teamability.
Myth 4. Define and communicate performance standards
Better alternative: First communicate how you want to be evaluated.
Myth 5. Show that you are the smartest man.
Better alternative: Recognize the functional specialization and expert knowledge of other. Only show ability to assess the key assumption behind the analysis.
Authors of the post
Roselinde Torres
Peter Tollman
Senior Partners, Boston Consulting Group.
1. Understand the primary goals set for you by the the Board
A newly recruited CEO has to look at the objectives and goals set by the board of the company.
2. Meet all first-reports, discuss the game plan and initiate implementation of action items on this list.
CEO has to establish the relation with the first recruits. Inform them them the board agenda and learn from the various issues related to the implementation of the agenda. Some barriers to implementation may come in the discussion. CEO has to understand first the nature of the barriers to come out the plans to overcome them.
Company capabilities, competences, resources and relationships have to be ascertained.
3. Request all first-reports prepare the Agenda for the Future.
4. Discuss the dozen biggest problems and opportunities from perspective of all first-reports.
5. If survival is the key issue, prepare a cost cutting plan immediately which is prudent and is in accordance with the Board's short and intermediate term goals.
6. Identify and implement top six action items that could measurably increase short term revenues.
7. In addition to this action list, formulate short-term game plan for company, get board approval and communicate plan to key personnel, suppliers, lenders, etc.
8. Prioritize top ten action items for the whole company and begin implementation.
9. Identify top goals for the company for the current month, quarter and year.
Financial Issues
10. Within the first week, get full understanding of the detailed financial statements, itemized payroll, payables and receivables list.
11. Review budgets of all departments or divisions for reasonableness of assumptions, quality of projections and relevancy in light of recent corporate changes and goals.
12. Evaluate obvious, and not so obvious, problems and strengths revealed by the financial statements.
13. Do realistic cash forecast for the next 90 and 180 day periods.
14. Evaluate asset utilization. and make re-deployment plans.
Liabilities and Problems
15. Find and out Deal with the six largest crises within the first three weeks.
16. Review banking and debt obligations for next 90, 180 and 365 day periods and ensure no technical or major defaults, if possible.
17. Determine which critical suppliers have suspended support due to lack of payment, or other problems and initiate discussions with them
18. Identify and take steps to immediately defuse all visible and foreseen problems.
Regulatory / Legal / Litigation
19. Ensure all payroll taxes are paid and properly reported.
20. Determine what, if any, problems exist with other tax authorities and state agencies.
21. Ensure the company is in compliance with all required regulatory and licensing agencies, etc. and if not, take action to resolve these issues.
22. Identity all outstanding legal issues and litigation risks along with probable, and possible, associated costs.
23. Ensure no securities law violations have occurred -- and if they have, take immediate steps to remedy them, or mitigate their impact.
24. Review all legal issues related to patents, trade secrets, trademarks and copyrights.
Product lines / Marketing / Sales / Distribution
25. Analyze product delivery schedules and takes steps to improve meeting commitment dates.
26. Evaluate product development timetables, related budgets and quality of project management systems, procedures and controls.
27. Evaluate sales, marketing, distribution, forecasts and trend lines for improvement opportunities in all areas, so as to generate more cash in the short-term.
28. Identify both the best customers and the most unhappy customers, as well as the company's image in the marketplace.
29. Complete competitive analysis for each product line.
30. Evaluate pricing models for each product line and adjust accordingly.
31. Identify product line strengths and weaknesses and develop short-term action plan to solve the most glaring problems.
32. Identify potential products -- 6, 12 and 24 months into the future -- and their possible impact on revenue and expenses.
33. Establish / update / expand web presence.
34. Evaluate expenditures and effectiveness of marketing and advertising for media, trade shows, market research, focus groups and public relations and adjust accordingly.
35. Evaluate sales force, sales-related incentives, sales targets, sales personnel training, special offers, dealerships, telemarketing and sales support.
36. Evaluate and optimize short-term inventory.
37. Evaluate customer / technical support, warranties, guarantees and after-sales service.
Personnel Issues
38. Upon arrival, candidly communicate with all company personnel for introduction and conveyance of immediate game plan.
39. Set up suggestion boxes, and invite anonymous email, to gain insight into less obvious underlying problems.
40. Review major Human Resource department aspects of company for legal compliance, competitiveness of benefits package, diversity, clarity of policies and potential costs savings.
41. Evaluate strengths and weaknesses of all first reports.
42. Develop 30/60/90 day performance plans for all first reports.
43. Evaluate organizational structure and effectiveness -- and reorganize if appropriate, adjusting total payroll if necessary.
44. Identify best and worst five percent of employees in the company -- probably replacing worst five percent and ensuring the best five percent are motivated enough to stay.
45. Analyze employee turnover rates to identify fundamental problem areas.
46. Identify key personnel and unfilled job functions, define criteria and initiate search, within budget constraints.
47. Identify personality issues / company policies that may be creating negative impact on company morale and productivity.
48. Review / modify written delegation of authority for all first reports.
49. Review all employment contracts or agreements, oral or written, including any severance or termination compensation agreements with salaried, hourly, or collective bargaining employees.
50. Review all bonus, deferred compensation, stock option, profit sharing, retirement programs or plans covering salaried, hourly, or collective bargaining employees.
51. Identify which mergers, acquisitions, dispositions and investments make the most sense for the company.
52. Identify the growth issues regarding acquisitions, spin offs, expansion, downsizing, establishing new, and/or closing existing branches and stores.
53. If decision is to sell the company, establish price and terms, subject to Board approval, prepare sales summary and develop game plan and methodology for sale.
54. Complete three year pro forma, based on realistic assumptions, to determine future valuation potential of company and likelihood of IPO or merger/acquisition potential.
55. If Board decision is to dissolve company, develop game plan for liquidation of assets and/or follow up on bankruptcy filing.
General / Administrative
56. Evaluate and control travel, entertainment and all discretionary expenditures and implement new written policies for these issues.
57. Review facilities and real estate issues, including a review of current lease requirements.
58. Review all equipment leases for cost cutting / improved technology opportunities.
59. Create / update business plan for current internal clarity and banking or capital formation needs.
60. "Manage by roaming around" -- gaining insights into attitudes and problem areas from within all levels of the organization.
61. Evaluate in-place systems and procedures and streamline where appropriate.
62. Evaluate technology implementation and optimize within budget constraints.
63. Visit all branch offices and evaluate their needs, performance, personnel and cost-effectiveness.
Stockholder Status / Investor Relations
64. Evaluate investor and stockholder relations and communication status and initiate appropriate action.
65. Generate updated lists of all current shareholders and percentage ownership of each.
66. Review stock options or purchase plans and agreements, as well as lists of outstanding warrants and options, including date of grant, exercise price, number of shares subject to option, and date of exercise.
The Next Steps
67. Report to the Board: the objective status, evaluation, recommended modifications to the short-term game plan and any cash needs.
68. start implementing updated and approved game plan.
WORLD DECLARATION ON HIGHER EDUCATION
FOR THE TWENTY-FIRST CENTURY: VISION AND ACTION
AND
FRAMEWORK FOR PRIORITY ACTION FOR CHANGE
AND DEVELOPMENT IN HIGHER EDUCATION
adopted by the
WORLD CONFERENCE ON HIGHER EDUCATION
Higher Education in the Twenty-First Century:
Vision and Action
9 October 1998
Owing to the scope and pace of change, society has become increasingly knowledge-based so that higher learning and research now act
as essential components of cultural, socio-economic and environmentally sustainable development of individuals, communities and
nations.
Recalling also the Universal Declaration of Human Rights which states in Article 26, paragraph 1, that ‘Everyone has the right to
education’ and that ‘higher education shall be equally accessible to all on the basis of merit’, and endorsing the basic principles
of the Convention against Discrimination in Education (1960), which, by Article 4, commits the States Parties to it to ‘make higher
education equally accessible to all on the basis of individual capacity’,
Convinced that education is a fundamental pillar of human rights, democracy, sustainable development and peace, and shall therefore
become accessible to all throughout life and that measures are required to ensure co-ordination and co-operation across and between
the various sectors, particularly between general, technical and professional secondary and post-secondary education as well as
between universities, colleges and technical institutions,
MISSIONS AND FUNCTIONS OF HIGHER EDUCATION
Article 1 - Mission to educate, to train and to undertake research
Article 1 - Mission to educate, to train and to undertake research
We affirm that the core missions and values of higher education, in particular the mission to contribute to the sustainable development and improvement of society as a whole, should be preserved, reinforced and further expanded, namely, to:
(a) educate highly qualified graduates and responsible citizens able to meet the needs of all sectors of human activity, by offering relevant qualifications, including professional training, which combine high-level knowledge and skills, using courses and content continually tailored to the present and future needs of society;
(b) provide opportunities (espace ouvert) for higher learning and for learning throughout life, giving to learners an optimal range of choice and a flexibility of entry and exit points within the system, as well as an opportunity for individual development and social mobility in order to educate for citizenship and for active participation in society, with a worldwide vision, for endogenous capacity-building, and for the consolidation of human rights, sustainable development, democracy and peace, in a context of justice;
(c) advance, create and disseminate knowledge through research and provide, as part of its service to the community, relevant expertise to assist societies in cultural, social and economic development, promoting and developing scientific and technological research as well as research in the social sciences, the humanities and the creative arts;
(d) help understand, interpret, preserve, enhance, promote and disseminate national and regional, international and historic cultures, in a context of cultural pluralism and diversity;
(e) help protect and enhance societal values by training young people in the values which form the basis of democratic citizenship and by providing critical and detached perspectives to assist in the discussion of strategic options and the reinforcement of humanistic perspectives;
(f) contribute to the development and improvement of education at all levels, including through the training of teachers.
Article 2 - Ethical role, autonomy, responsibility and anticipatory function
In accordance with the Recommendation concerning the Status of Higher-Education Teaching Personnel approved by the General Conference of UNESCO in November 1997, higher education institutions and their personnel and students should:
(a) preserve and develop their crucial functions, through the exercise of ethics and scientific and intellectual rigour in their various activities;
(b) be able to speak out on ethical, cultural and social problems completely independently and in full awareness of their responsibilities, exercising a kind of intellectual authority that society needs to help it to reflect, understand and act;
(c) enhance their critical and forward-looking functions, through continuing analysis of emerging social, economic, cultural and political trends, providing a focus for forecasting, warning and prevention;
(d) exercise their intellectual capacity and their moral prestige to defend and actively disseminate universally accepted values, including peace, justice, freedom, equality and solidarity, as enshrined in UNESCO’s Constitution;
(e) enjoy full academic autonomy and freedom, conceived as a set of rights and duties, while being fully responsible and accountable to society;
(f) play a role in helping identify and address issues that affect the well-being of communities, nations and global society.
SHAPING A NEW VISION OF HIGHER EDUCATION
Article 3 - Equity of access
Article 4 - Enhancing participation and promoting the role of women
Article 5 - Advancing knowledge through research in science, the arts and humanities and the dissemination of its results
Article 6 - Long-term orientation based on relevance
Article 7 - Strengthening co-operation with the world of work and analysing and anticipating societal needs
Article 8 - Diversification for enhanced equity of opportunity
Article 9 - Innovative educational approaches: critical thinking and creativity
(a) In a world undergoing rapid changes, there is a perceived need for a new vision and paradigm of higher education, which should be
student-oriented, calling in most countries for in-depth reforms and an open access policy so as to cater for ever more diversified
categories of people, and of its contents, methods, practices and means of delivery, based on new types of links and partnerships
with the community and with the broadest sectors of society.
(b) Higher education institutions should educate students to become well informed and deeply motivated citizens, who can think
critically, analyse problems of society, look for solutions to the problems of society, apply them and accept social
responsibilities.
(c) To achieve these goals, it may be necessary to recast curricula, using new and appropriate methods, so as to go beyond cognitive
mastery of disciplines. New pedagogical and didactical approaches should be accessible and promoted in order to facilitate the
acquisition of skills, competences and abilities for communication, creative and critical analysis, independent thinking and team
work in multicultural contexts, where creativity also involves combining traditional or local knowledge and know-how with advanced
science and technology. These recast curricula should take into account the gender dimension and the specific cultural, historic and
economic context of each country. The teaching of human rights standards and education on the needs of communities in all parts of
the world should be reflected in the curricula of all disciplines, particularly those preparing for entrepreneurship. Academic
personnel should play a significant role in determining the curriculum.
(d) New methods of education will also imply new types of teaching-learning materials. These have to be coupled with new methods of
testing that will promote not only powers of memory but also powers of comprehension, skills for practical work and creativity.
Article 10 - Higher education personnel and students as major actors
FROM VISION TO ACTION
Article 11 - Qualitative evaluation (Quality Evaluation
(a) Quality in higher education is a multidimensional concept, which should embrace all its functions, and activities: teaching and
academic programmes, research and scholarship, staffing, students, buildings, facilities, equipment, services to the community and
the academic environment. Internal self-evaluation and external review, conducted openly by independent specialists, if possible with
international expertise, are vital for enhancing quality. Independent national bodies should be established and comparative standards
of quality, recognized at international level, should be defined. Due attention should be paid to specific institutional, national
and regional contexts in order to take into account diversity and to avoid uniformity. Stakeholders should be an integral part of the
institutional evaluation process.
(b) Quality also requires that higher education should be characterized by its international dimension: exchange of knowledge,
interactive networking, mobility of teachers and students, and international research projects, while taking into account the
national cultural values and circumstances.
(c) To attain and sustain national, regional or international quality, certain components are particularly relevant, notably careful
selection of staff and continuous staff development, in particular through the promotion of appropriate programmes for academic staff
development, including teaching/learning methodology and mobility between countries, between higher education institutions, and
between higher education institutions and the world of work, as well as student mobility within and between countries. The new
information technologies are an important tool in this process, owing to their impact on the acquisition of knowledge and know-how.
Article 12 - The potential and the challenge of technology
Article 13 - Strengthening higher education management and financing
Article 14 - Financing of higher education as a public service
Article 15 - Sharing knowledge and know-how across borders and continents
Article 16 - From ‘brain drain’ to ‘brain gain’
Article 17 - Partnership and alliances
The Business School in the Twenty-First Century: Emergent Challenges and New Business Models
Howard Thomas, Peter Lorange, Jagdish Sheth
Cambridge University Press, 18-Jul-2013 - Business & Economics
Questions about the status, identity and legitimacy of business schools in the modern university system continue to stimulate debate amongst deans, educational policy makers and commentators. In this book, three world experts share their critical insights on management education and new business school models in the USA, Europe and Asia, on designing the business school of the future, and how to make it work. They look at how the business school is changing and focus in particular on emergent global challenges and innovations in curricula, professional roles, pedagogy, uses of technology and organisational delineations. Set within the context of a wider discussion about management as a profession, the authors provide a systematic, historical perspective, analysing major trends in business school models, and reviewing a wealth of current literature, to provide an informed and unique perspective that is firmly grounded in practical and experimental analysis.
1954 - The first commercial jet transport airplane built in US - the Boeing 707 prototype - the model 367-80, made its maiden flight from Renton Field, south of Seattle, Washington.
1918 Bertram N. Brockhouse Canadian physicist - Developed neutron diffraction techniques used for studying the structure and properties of matter. He shared the Nobel Prize for Physics in 1994.
1922 Leon Max Lederman - An American physicist - Nobel Prize for Physics in 1988 for joint research and discovery (1960-62) of a new subatomic particle, the muon neutrino.
1943 Jocelyn Bell Burnell Discovered first four pulsars
18 Jul 1635 Robert Hooke - English physicist - discovered the law of elasticity, known as Hooke's law, and invented the balance spring for clocks. Hooke's Law
18 Jul 1922 Thomas Samuel Kuhn - A science historian and science philosopher and a MIT professor known for his highly influential The Structure of Scientific Revolutions (1962).
18 Jul 1937 Roald Hoffmann, Polish-born American chemist, corecipient, with Fukui Kenichi of Japan, of the Nobel Prize for Chemistry in 1981
18 July 1948 Hartmut Michel - Nobel Prize in Chemistry - Determination of three dimensional structure of some proteins
1942 Messerschmitt Me 262 Schwalbe, Germany's first operational jet fighter, had its first flight.
1994 Rosanna Della Corte, a 62-year-old Italian woman, gave birth to a healthy son, Riccardo. Her egg was artificially imseminated by the sperm of her 63-year-old husband, Mauro, at Dr. Severino Antinori's fertility clinic in Rome, Italy.
Activity based budgeting focuses on the budgeted cost of activities (for ex. R&D, training, supply, processing of each range of products and services, quality control, accounting, logistic, distribution, customer service, marketing, promoting and selling....) necessary to produce and sell products and services.
This approach to budgeting entails formulating budgets for each activity in its activity management system
Source:
Horngren Charles, T., George Foster, and Srikant M. Datar, Cost Accounting, 10th Edition, Prentice Hall Inc.
Business firms are established to make profits. Profit is the return to the owners of business. Accounting determines the amount of profit made by a business firm in a period.
Accounting records and statements have many other uses. Accounting is defined as providing information to facilitate decision making by managers and investors.
Accounting is based on documentary evidence of a transaction involving money and assets between a business firm and other parties. These documents are called as vouchers in accounting jargon.
Based on vouchers, accountants first enter the transaction in a journal. From the entries in the journal, they make posting in the ledger in separate accounts maintained for various assets, liabilities, revenues and expenses, and various parties representing customers and suppliers.
From the account balances in the ledgers, various accounting statements are prepared.
Profit and loss account, balance sheet and cash flow statement are important statements to be prepared by companies and circulated to their shareholders.
Original URL: http://knol.google.com/k/-/-/2utb2lsm2k7a/908
Achievement motive may be defined as the degree to which a person wishes to accomplish challenging goals, succeed in competitive situations, and exhibit the desire for unambiguous feedback regarding performance. An individual with a high achievement motive has higher levels of each element of the definition.
Source:
Fred Luthans, Organization Behavior, 9th Edition, McGraw Hill
Original URL: http://knol.google.com/k/-/-/2utb2lsm2k7a/785
Ryohin Keikaku Co.,Ltd. (株式会社良品計画 Kabushiki-gaisha Ryōhin Keikaku?) (TYO: 7453), or Muji (無印良品 Mujirushi Ryōhin?) is a Japanese retail company which sells a wide variety of household and consumer goods.
Muji unique points are its design minimalism, emphasis on recycling, avoidance of waste in production and packaging, and no-logo or "no-brand" policy.
The name Muji is derived from the first part of Mujirushi Ryōhin, translated as No Brand Quality Goods on Muji's European website.
New Features of the Marketing Management 14th Edition
Marketing Insight and Marketing Memo Boxes. Throughout this text, the Marketing Insight and Marketing Memo boxes provide in-depth conceptual and practical commentary.
New in-text boxes: Half are new in this edition. Using actual companies and situations, these boxes cover a variety of products, services, and markets. Marketing in Action Mini-cases: The end-of-chapter sections now include two Marketing in Action mini-cases that highlight innovative, insightful marketing accomplishments from leading organizations.
Today’s economic, environmental, and technological changes in marketing: Throughout the new edition, these three areas are addressed with emphasis on marketing during economic downturns and recessions, the rise of sustainability and green marketing, and the increased development of computing power, the Internet, and mobile phones.
Part 1: Understanding Marketing Management
Chapter 1. Defining Marketing for the 21st Century
Chapter 2. Developing Marketing Strategies and Plans
Part 2: Capturing Marketing Insights
Chapter 3. Gathering Information and Scanning the Environment
Chapter 4. Conducting Marketing Research and Forecasting on Demand
Part 3: Connecting with Customers
Chapter 5. Creating Long-term Loyalty Relationships
Chapter 6. Analyzing Consumer Markets
Chapter 7. Analyzing Business Markets
Chapter 8. Identifying Market Segments and Targets
Part 4: Building Strong Brands
Chapter 9. Creating Brand Equity
Chapter 10. Crafting the Brand Position
Chapter 11. Competitive Dynamics
Part 5: Shaping the Market
Chapter 12. Setting Product Strategy
Chapter 13. Designing and Managing Services
Chapter 14. Developing Pricing Strategies and Programs
Part 6: Delivering Value
Chapter 15. Designing and Managing Integrated Marketing
Chapter 16. Managing Retailing, Wholesaling, and Logistics
Part 7: Communicating Value
Chapter 17. Designing and Managing Integrated Marketing Communications
Chapter 18. Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations
Chapter 19. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling
Part 8: Creating Successful Long-Term Growth
Chapter 20. Introducing New Marketing Offerings
Chapter 21. Tapping into Global Markets
Chapter 22. Managing a Holistic Marketing Organization
Video Interview by Philip Kotler
one hour 31 minutes
____________
____________
Detailed Table of Contents
(Links are for articles - chapter summaries and concept explanations.)
Part 1. Understanding Marketing Management, 2
Chapter 1. Defining Marketing for the 21st Century, 2
The Importance of Marketing, 3
The Scope of Marketing, 5
What Is Marketing?, 5
What Is Marketed?, 5
Who Markets?, 7
Core Marketing Concepts, 9
Needs, Wants, and Demands, 9
Target Markets, Positioning, and Segmentation, 10
Offerings and Brands, 10
Value and Satisfaction, 10
Marketing Channels, 11
Supply Chain, 11
Competition, 11
Marketing Environment, 11
The New Marketing Realities, 12
Major Societal Forces, 12
New Company Capabilities, 14
Marketing in Practice, 15
Marketing Insight: Marketing in an Age of Turbulence, 16
Company Orientation toward the Marketplace, 17
The Production Concept, 18
The Product Concept, 18
The Selling Concept, 18
The Marketing Concept, 18 The Holistic Marketing Concept, 18
Marketing Memo: Marketing Right and Wrong, 19
Relationship Marketing, 20
Integrated Marketing, 20
Internal Marketing, 21
Performance Marketing, 22
The New Four Ps, 25
Marketing Management Tasks, 26
Developing Marketing Strategies and Plans, 26
Capturing Marketing Insights, 26
Marketing Memo: Marketers’ Frequently Asked Questions, 26
Connecting with Customers, 27
Building Strong Brands, 27
Shaping the Market Offerings, 27
Delivering Value, 27
Communicating Value, 27
Creating Successful Long-Term Growth, 27
Summary, 28
Applications, 28
Marketing Concept - Kotler - A Popular article explaining the marketing concept developed by Kotler in a concise manner
Chapter 2. Developing Marketing Strategies and Plans, 32
Marketing and Customer Value, 33
The Value Delivery Process, 33
The Value Chain, 34
Core Competencies, 35
A Holistic Marketing Orientation and Customer Value, 36
The Central Role of Strategic Planning, 36
Corporate and Division Strategic Planning, 37
Defining the Corporate Mission, 38
Establishing Strategic Business Units, 39
Assigning Resources to Each SBU, 42
Assessing Growth Opportunities, 42
Organization and Organizational Culture, 45
Marketing Innovation, 45
Marketing Insight: Creating Innovative Marketing, 46
Business Unit Strategic Planning, 47
The Business Mission, 48
SWOT Analysis, 48
Goal Formulation, 50
Strategic Formulation, 50
Marketing Memo: Checklist for Performing Strengths/Weaknesses Analysis, 52
Program Formulation and Implementation, 53
Feedback and Control, 53
Product Planning: The Nature and Contents of a Marketing Plan, 54
Marketing Memo: Marketing Plan Criteria, 55
The Role of Research, 55
The Role of Relationships, 55
From Marketing Plan to Marketing Action, 55
Summary, 56
Applications, 56
Sample Marketing Plan: Pegasus Sports International, 60
Components of a Modern Marketing Information System, 67
Internal Records, 70
The Order-to-Payment Cycle, 70
Sales Information Systems, 70
Databases, Data Warehousing, and Data Mining, 71
Marketing Intelligence, 71
The Marketing Intelligence System, 71
Collecting Marketing Intelligence on the Internet, 72
Communicating and Acting on Marketing Intelligence, 73
Analyzing the Macroenvironment, 74
Needs and Trends, 74
Identifying the Major Forces, 74
The Demographic Environment, 75
Marketing Insight: Finding Gold at the Bottom of the Pyramid, 76
The Economic Environment, 77
The Sociocultural Environment, 78
The Natural Environment, 80
The Technological Environment, 81
Marketing Insight: The Green Marketing Revolution, 82
The Political-Legal Environment, 84
Forecasting and Demand Measurement, 85
The Measures of Market Demand, 85
A Vocabulary for Demand Measurement, 86
Estimating Current Demand, 88
Estimating Future Demand, 90
Summary, 92
Applications, 92
The Marketing Research System, 97
The Marketing Research Process, 99
Step 1: Define the Problem, the Decision Alternatives, and the Research Objectives, 99
Step 2: Develop the Research Plan, 100
Marketing Memo: Conducting Informative Focus Groups, 102
Marketing Memo: Questionnaire Dos and Don’ts, 104
Marketing Insight: Getting into the Heads of Consumers, 106
Marketing Insight: Understanding Brain Science, 108
Step 3: Collect the Information, 110
Step 4: Analyze the Information, 111
Step 5: Present the Findings, 111
Step 6: Make the Decision, 111
Marketing Insight: Bringing Marketing Research to Life with Personas, 112
Overcoming Barriers to the Use of Marketing Research, 112
Measuring Marketing Productivity, 114
Marketing Metrics, 114
Marketing-Mix Modeling, 116
Marketing Dashboards, 116
Marketing Insight: Marketing Dashboards to Improve Effectiveness and Efficiency, 117
Summary, 118
Applications, 119
What Is Organizational Buying?, 183
The Business Market versus the Consumer Market, 183
Buying Situations, 185
Systems Buying and Selling, 187
Participants in the Business Buying Process, 188
The Buying Center, 188
Buying Center Influences, 189
Targeting Firms and Buying Centers, 190
Marketing Insight: Big Sales to Small Businesses, 191
The Purchasing/Procurement Process, 193
Stages in the Buying Process, 195
Problem Recognition, 196
General Need Description and Product Specification, 196
Supplier Search, 196
Proposal Solicitation, 198
Supplier Selection, 198
Marketing Memo: Developing Compelling Customer Value Propositions, 199
Order-Routine Specification, 201
Performance Review, 201
Managing Business-to-Business Customer Relationships, 201
The Benefits of Vertical Coordination, 202
Marketing Insight: Establishing Corporate Trust, Credibility, and Reputation, 203
Business Relationships: Risks and Opportunism, 203
New Technology and Business Customers, 204
Institutional and Government Markets, 205
Summary, 207
Applications, 208
Chapter 8. Identifying Market Segments and Targets, 212
Bases for Segmenting Consumer Markets, 214
Geographic Segmentation, 214
Demographic Segmentation, 216
Marketing Insight: Trading Up, Down, and Over, 218
Psychographic Segmentation, 225
Behavioral Segmentation, 227
Bases for Segmenting Business Markets, 230
Market Targeting, 231
Effective Segmentation Criteria, 231
Evaluating and Selecting the Market Segments, 232
Marketing Insight: Chasing the Long Tail, 235
Summary, 236
Applications, 237
Part 4. Building Strong Brands, 240
Chapter 9. Creating Brand Equity, 240
What Is Brand Equity?, 241
The Role of Brands, 242
The Scope of Branding, 243
Defining Brand Equity, 243
Brand Equity Models, 245
Marketing Insight: Brand Bubble Trouble, 248
Building Brand Equity, 249
Choosing Brand Elements, 250
Designing Holistic Marketing Activities, 251
Leveraging Secondary Associations, 252
Internal Branding, 253
Brand Communities, 253
Measuring Brand Equity, 255
Marketing Insight: The Brand Value Chain, 255
Marketing Insight: What Is a Brand Worth?, 257
Managing Brand Equity, 258
Brand Reinforcement, 258
Brand Revitalization, 259
Devising a Branding Strategy, 260
Branding Decisions, 261
Brand Portfolios, 262
Brand Extensions, 263
Customer Equity, 267
Marketing Memo: Twenty-First-Century Branding, 267
Summary, 268
Applications, 269
Chapter 10. Crafting the Brand Positioning, 274
Developing and Establishing a Brand Positioning, 275
Determining a Competitive Frame of Reference, 276
Marketing Insight: High Growth Through Value Innovation, 278
Identifying Optimal Points-of-Difference and Points-of-Parity, 280
Choosing POPs and PODs, 283
Brand Mantras, 284 Establishing Brand Positioning, 286
Marketing Memo: Constructing a Brand Positioning Bull’s-eye, 287
Differentiation Strategies, 289
Alternative Approaches to Positioning, 291
Positioning and Branding a Small Business, 293
Summary, 294
Applications, 294
Chapter 11. Competitive Dynamics, 298
Competitive Strategies for Market Leaders, 299
Marketing Insight: When Your Competitor Delivers More for Less, 300
Expanding Total Market Demand, 301
Protecting Market Share, 302
Increasing Market Share, 304
Other Competitive Strategies, 305 Market-Challenger Strategies, 305 Market-Follower Strategies, 307
Market-Nicher Strategies, 308
Marketing Memo: Niche Specialist Roles, 309
Product Life-Cycle Marketing Strategies, 310
Product Life Cycles, 310
Style, Fashion, and Fad Life Cycles, 311
Marketing Strategies: Introduction Stage and the Pioneer Advantage, 312
Marketing Strategies: Growth Stage, 313
Marketing Strategies: Maturity Stage, 313
Marketing Strategies: Decline Stage, 315
Marketing Insight: Managing a Brand Crisis, 316
Evidence for the Product Life-Cycle Concept, 316
Critique of the Product Life-Cycle Concept, 317
Market Evolution, 317
Marketing in an Economic Downturn, 318
Explore the Upside of Increasing Investment, 318
Get Closer to Customers, 318
Review Budget Allocations, 319
Put Forth the Most Compelling Value Proposition, 319
Fine-tune Brand and Product Offerings, 320
Summary, 320
Applications, 321
Part 5. Shaping the Market Offerings, 324
Chapter 12. Setting Product Strategy, 324
Product Characteristics and Classifications, 325
Product Levels: The Customer-Value Hierarchy, 326
Product Classifications, 327
Product and Services Differentiation, 328
Product Differentiation, 329
Services Differentiation, 330
Design, 332
Product and Brand Relationships, 333
Marketing Insight: Marketing Luxury Brands, 334
The Product Hierarchy, 336
Product Systems and Mixes, 336
Product Line Analysis, 337
Product Line Length, 337
Marketing Insight: When Less Is More, 339
Product Mix Pricing, 342
Co-Branding and Ingredient Branding, 344
Marketing Memo: Product-Bundle Pricing Considerations, 344
Packaging, Labeling, Warranties, and Guarantees, 346
Packaging, 346
Labeling, 348
Warranties and Guarantees, 349
Summary, 349
Applications, 350
Chapter 13. Designing and Managing Services, 354
The Nature of Services, 355
Service Industries Are Everywhere, 356
Categories of Service Mix, 356
Distinctive Characteristics of Services, 358
The New Services Realities, 361
A Shifting Customer Relationship, 362
Achieving Excellence in Services Marketing, 365
Marketing Excellence, 365
Best Practices of Top Service Companies, 366
Differentiating Services, 368
Marketing Insight: Improving Company Call Centers, 369
Managing Service Quality, 370
Marketing Memo: Recommendations for Improving Service Quality, 372
Managing Customer Expectations, 373
Incorporating Self-Service Technologies(SSTs), 375
Managing Product-Support Services, 375
Identifying and Satisfying Customer Needs, 376
Marketing Memo: Assessing E-Service Quality, 376
Postsale Service Strategy, 377
Summary, 378
Applications, 378
Chapter 14. Developing Pricing Strategies and Programs, 382
Understanding Pricing, 383
A Changing Pricing Environment, 384
Marketing Insight: Giving It All Away, 384
How Companies Price, 386
Consumer Psychology and Pricing, 386
Setting the Price, 389
Step 1: Selecting the Pricing Objective, 389
Step 2: Determining Demand, 390
Step 3: Estimating Costs, 392
Step 4: Analyzing Competitors’ Costs, Prices, and Offers, 395
Step 5: Selecting a Pricing Method, 395
Step 6: Selecting the Final Price, 402
Marketing Insight: Stealth Price Increases, 403
Adapting the Price, 403
Geographical Pricing (Cash, Countertrade, Barter), 404
Price Discounts and Allowances, 404
Promotional Pricing, 405
Differentiated Pricing, 406
Initiating and Responding to Price Changes, 407
Initiating Price Cuts, 407
Initiating Price Increases, 408
Responding to Competitors’ Price Changes, 409
Summary, 410
Applications, 410
Part 6. Delivering Value, 414
Chapter 15. Designing and Managing Integrated Marketing Channels, 414
Marketing Channels and Value Networks, 415
The Importance of Channels, 416
Hybrid Channels and Multichannel Marketing, 416
Value Networks, 417
The Role of Marketing Channels, 418
Channel Functions and Flows, 418
Channel Levels, 420
Service Sector Channels, 421
Channel-Design Decisions, 422
Analyzing Customer Needs and Wants, 422
Establishing Objectives and Constraints, 423
Identifying Major Channel Alternatives, 424
Evaluating Major Channel Alternatives, 426
Channel-Management Decisions, 427
Selecting Channel Members, 427
Training and Motivating Channel Members, 428
Evaluating Channel Members, 429
Modifying Channel Design and Arrangements, 429
Channel Modification Decisions, 429
Global Channel Considerations, 430
Channel Integration and Systems, 431
Vertical Marketing Systems, 431
Marketing Insight: Channel Stewards Take Charge, 432
Horizontal Marketing Systems, 433
Integrating Multichannel Marketing Systems, 433
Conflict, Cooperation, and Competition, 435
Types of Conflict and Competition, 435
Causes of Channel Conflict, 436
Managing Channel Conflict, 436
Dilution and Cannibalization, 438
Legal and Ethical Issues in Channel Relations, 438
E-Commerce Marketing Practices, 438
Pure-Click Companies, 439
Brick-and-Click Companies, 440
M-Commerce Marketing Practices, 441
Summary, 442
Applications, 442
Chapter 16. Managing Retailing, Wholesaling, and Logistics, 446
Retailing, 447
Types of Retailers, 448
The New Retail Environment, 451
Marketing Decisions, 453
Channels, 454
Marketing Memo: Helping Stores to Sell, 458
Private Labels, 459
Role of Private Labels, 460
Private-Label Success Factors, 460
Marketing Insight: Manufacturer’s Response to the Private Label Threat, 461
Wholesaling, 461
Trends in Wholesaling, 463
Market Logistics, 464
Integrated Logistics Systems, 464
Market-Logistics Objectives, 465
Market-Logistics Decisions, 466
Organizational Lessons, 469
Summary, 469
Applications, 470
Part 7. Communicating Value, 474
Chapter 17. Designing and Managing Integrated Marketing Communications, 474
The Role of Marketing Communications, 476
The Changing Marketing Communications Environment, 476
Marketing Insight: Don’t Touch That Remote, 476
Marketing Communications, Brand Equity, and Sales, 478
The Communications Process Models, 480
Developing Effective Communications, 482
Identify the Target Audience, 482
Determine the Communications Objectives, 482
Design the Communications, 484
Marketing Insight: Celebrity Endorsements as a Strategy, 486
Select the Communications Channels, 486
Establish the Total Marketing Communications Budget, 488
Deciding on the Marketing Communications Mix, 490
Characteristics of the Marketing Communications Mix, 490
Factors in Setting the Marketing Communications Mix, 492
Measuring Communication Results, 494
Managing the Integrated Marketing Communications Process, 494
Coordinating Media, 495
Implementing IMC, 496
Marketing Memo: How Integrated Is Your IMC Program?, 496
Summary, 497
Applications, 497
Chapter 18. Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and
Public Relations, 502
Developing and Managing an Advertising Program, 504
Setting the Objectives, 504
Deciding on the Advertising Budget, 505
Developing the Advertising Campaign, 506
Marketing Memo: Print Ad Evaluation Criteria, 509
Deciding on Media and Measuring Effectiveness, 510
Deciding on Reach, Frequency, and Impact, 511
Choosing among Major Media Types, 512
Alternate Advertising Options, 512
Marketing Insight: Playing Games with Brands, 516
Selecting Specific Media Vehicles, 516
Deciding on Media Timing and Allocation, 517
Evaluating Advertising Effectiveness, 518
Sales Promotion, 519
Objectives, 519
Advertising versus Promotion, 519
Major Decisions, 520
Events and Experiences, 524
Events Objectives, 524
Major Sponsorship Decisions, 525
Creating Experiences, 526
Marketing Memo: Measuring High Performance Sponsorship Programs, 526
Public Relations, 527
Marketing Public Relations, 527
Major Decisions in Marketing PR, 528
Summary, 530
Applications, 530
Chapter 19. Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and
The Benefits of Direct Marketing, 536
Direct Mail, 538
Catalog Marketing, 539
Telemarketing, 539
Other Media for Direct-Response Marketing, 539
Public and Ethical Issues in Direct Marketing, 540
Advantages and Disadvantages of Interactive Marketing, 540
Interactive Marketing Communication Options, 541
Marketing Memo: How to Maximize the Marketing Value of E-mails, 543
Marketing Memo: Segmenting Tech Users, 545
Word of Mouth, 546
Social Media, 546
Buzz and Viral Marketing, 549
Opinion Leaders, 551
Marketing Memo: How to Start a Buzz Fire, 552
Measuring the Effects of Word of Mouth, 552
Designing the Sales Force, 553
Sales Force Objectives and Strategy, 554
Sales Force Structure, 555
Marketing Insight: Major Account Management, 555
Sales Force Size, 556
Sales Force Compensation, 556
Managing the Sales Force, 556
Recruiting and Selecting Representatives, 556
Training and Supervising Sales Representatives, 557
Sales Rep Productivity, 557
Motivating Sales Representatives, 558
Evaluating Sales Representatives, 559
Principles of Personal Selling, 560
The Six Steps, 561
Relationship Marketing, 562
Summary, 562
Applications, 563
Part 8. Creating Successful Longterm Growth, 566
Chapter 20. Introducing New Market Offerings, 566
New-Product Options, 567
Make or Buy, 567
Types of New Products, 568
Challenges in New-Product Development, 568
The Innovation Imperative, 568
New-Product Success, 569
New-Product Failure, 570
Organizational Arrangements, 570
Budgeting for New-Product Development, 571
Organizing New-Product Development, 572
Managing the Development Process: Ideas, 573
Generating Ideas, 573
Marketing Memo: Ten Ways to Find Great New-Product Ideas, 574
Marketing Insight: P&G’s New Connect + Develop Approach to Innovation, 574
Marketing Memo: Seven Ways to Draw New Ideas from Your Customers, 576
Marketing Memo: How to Run a Successful Brainstorming Session, 577
Using Idea Screening, 578
Managing the Development Process: Concept to Strategy, 579
Concept Development and Testing, 579
Marketing Strategy Development, 582
Business Analysis, 583
Managing the Development Process: Development to Commercialization, 585
Product Development, 585
Market Testing, 585
Commercialization, 588
The Consumer-Adoption Process, 589
Stages in the Adoption Process, 589
Factors Influencing the Adoption Process, 589
Summary, 590
Applications, 591
Chapter 21. Tapping into Global Markets, 594
Competing on a Global Basis, 595
Deciding Whether to Go Abroad, 597
Deciding Which Markets to Enter, 597
How Many Markets to Enter, 598
Developed versus Developing Markets, 598
Marketing Insight: Spotlight on Key Developing Markets, 600
Evaluating Potential Markets, 602
Deciding How to Enter the Market, 603
Indirect and Direct Export, 603
Licensing, 604
Joint Ventures, 605
Direct Investment, 605
Deciding on the Marketing Program, 606
Global Similarities and Differences, 606
Marketing Adaptation, 607
Marketing Memo: The Ten Commandments of Global Branding, 608
Global Product Strategies, 608
Global Communication Strategies, 610
Global Pricing Strategies, 611
Global Distribution Strategies, 613
Country-of-Origin Effects, 614
Building Country Images, 614
Consumer Perceptions of Country of Origin, 614
Deciding on the Marketing Organization, 616
Export Department, 616
International Division, 616
Global Organization, 616
Summary, 617
Applications, 617
Chapter 22. Managing a Holistic Marketing Organization for the Long Run, 620
Trends in Marketing Practices, 621
Internal Marketing, 623
Organizing the Marketing Department, 623
Marketing Memo: Characteristics of Company Departments That Are Truly Customer Driven, 624
Relationships with Other Departments, 627
Building a Creative Marketing Organization, 628
Marketing Insight: The Marketing CEO, 628
Socially Responsible Marketing, 629
Corporate Social Responsibility, 630
Marketing Insight: The Rise of Organic, 633
Socially Responsible Business Models, 634
Cause-Related Marketing, 634
Marketing Memo: Making a Difference: Top 10 Tips for Cause Branding, 637
Social Marketing, 638
Marketing Implementation and Control, 640
Marketing Implementation, 640
Marketing Control, 641
Annual-Plan Control, 641
Profitability Control, 642
Efficiency Control, 642
Strategic Control, 643
The Future of Marketing, 643
Marketing Memo: Major Marketing Weaknesses, 647
Summary, 648
Applications, 648
Appendix Tools for Marketing Control, 650
Appendix: Sonic Marketing Plan, A1
1881 Herman Staudinger
1881 Roger Martin du Gard
1907 Daniel Bovet
Engineering
1857 – Elisha Otis's first elevator is installed at 488 Broadway New York City.
1895 Charles Jenkins patented a motion picture machine.
1895 Louis Lumiere patented a motion picture machine. Lumiere invented portable motion-picture camera, film processing unit and projector called the Cinematographe.
30,000 Active Companies - Employees 4.6 Million - Revenue $2 Trillion
As of 2014, there were over 30,000 active companies founded by living MIT alumni, employing 4.6 million people and generating annual world revenues of nearly $2 trillion.
The revenue of these 30,000 companies, is higher than the GDP of the 10th-largest economy in the world (the country is India).
The report was written by Professor Edward Roberts, the Martin Trust Center's founder and chair, Fiona Murray, Associate Dean for Innovation at the MIT Sloan School of Management, and doctoral student J. Daniel Kim and was published in 2015. It continues the work started in Entrepreneurial Impact: The Role of MIT which was first published in 2009 by the Kauffman Foundation. An updated version of the study was published in 2011 by the journal "Foundations and Trends in Entrepreneurship."
CEO can be an external recruit or an internal recruit. But people expect changes in the organization. At the same time, they have self respect and feel proud of what they have done till that day under the guidance of the outgoing CEO. How should the new CEO go about his job?
In a guide to transformation, BCG defines a transformation as a profound change in a company’s strategy, business model, organization, culture, people, or processes. A transformation is a sustainable, quantum improvement in performance, altering the trajectory of its future.
Stakeholders expect changes to occur when a new CEO is hired.
An insider CEO may not be able to change things quickly, yet through demonstration of quick and decisive actions—even before taking the top job—new internal CEO can seize the opportunity and put their company on the right trajectory for success.
The guide breaks the new CEO action-transformation process into four steps: the 100 days before officially starting, the first weeks on the job, the first 100 days, and the first 18 months.
Three important steps in the action-transformation process
Finding the Resources for the Journey. Launch short-term, no-regret moves to establish momentum and to free up resources to fuel new growth engines.
Winning in the Medium Term. Modify business model and operating model to increase competitive advantage.
Building the Right Senior Management Team, Organization, and Culture. Develop a transformed business model and operating model to set up the organization for sustainable high performance.
Incoming leaders should talk with as many critical stakeholders as possible, both inside and outside the organization, in order to educate themselves about the company:
Employees, to determine if there is a consensus regarding the changes that are needed; ideally, leaders should speak with 30 to 50 employees from across all units and at all levels
Customers, to get opinions of the company’s products and services in addressing their needs
Industry and functional experts, to understand the company and the complexities or disruptions in the market
During these conversations, a new CEO should primarily listen, encourage open and honest discussion, and make sure that all possible dynamic factors and all possible solutions are being brought to the forefront. Through this dialogue process, the CEO must start to diagnose problems and create hypotheses regarding which aspects of the company require improvement. This step will determine immediate areas to focus on and indicate transformation opportunities in specific functions, markets, or divisions.
New CEOs need to start identifying rapid, no-regret moves—initiatives that are relatively easy to implement in the first 100 days and that can generate results in 3 to 12 months. These no-regret initiatives should close performance gaps in a few critical areas, reduce costs, improve top- and bottom-line performance, and free up resources in order to fuel longer-term initiatives.
During The First Weeks: Energize the Organization
New CEOs must make efforts to energize the organization and build momentum for the collective transformation ambition.
The CEO should acknowledge the company’s heritage and the hard work of employees, and at the same discuss external factors (such as the customer base, competitors, and capital markets), internal metrics (for example, operational and organizational performance and employee engagement), and the necessary measures the company needs to take in response.The case for change can be made to internal stakeholders in various venues, such as workshops and town hall meetings through a questioning process as attempted in sales dialogues.
The First 100 Days: Prepare and Launch the Transformation
The new CEO kicks off the rapid, no-regret moves that will deliver impact within 3 to 12 months, creating and enabling initiative teams, setting up the overall governance.
Leaders must put the foundation for transformation in place during this time, balancing development of a long-term vision with day-to-day reality. As the transformation plan takes shape and the case for change becomes clear, the CEO must shift gears from planning the transformation to actually leading it.
The no-regret initiatives build momentum for the larger effort, win over internal skeptics who may doubt that change is actually happening, generate credibility for the new leadership team, and often free up resources that can be used to fund subsequent measures. As a result, these initial initiatives when successful further help energize the organization.
The four primary levers for releasing resources for supporting the new initiatives of the journey are revenue, organizational simplicity (delayering), capital efficiency, and cost reduction.
Leaders should not abandon the initial initiatves prematurely declaring victory and moving on to other priorities. It is critical to maintain focus and ensure that initiative teams are on track to achieve results. Project tracking has to be in place and everybody must have full transparency into the progress of each initiative. Regular review sessions, facilitated by the program management office (PMO), should provide sufficient information for leaders to know whether—and how—they need to intervene to sustain the progress of new initiatives.
Winning in the medium term requires initiative like driving growth, modifying business model, revamping commercial processes or operations.
The medium term initiatives are usually more difficult to conceptualize. They require breakthrough thinking, usually in areas that are less familiar for the current organization members. These initiatives are also harder to staff and implement, and they call for involvement across functions and business units. But this is essential for the CEO to establish the credibility of coming out with totally new models and processes.
Setting the New Strategy and Operating Model. Aong with driving short-term and medium-term initiatives, the CEO has involve the senior management team to look at their overall strategy and operating model. A targeted workshop-based approach with the senior leadership team—and the appropriate data and analysis—can lead to a strong outcome and do so in a highly efficient manner and it does not distract the leadership team from executing the current operations and initiatives. This approach ensures that there is buy-in from the top team and that the strategy change paths are identified. At an appropriate time more involved strategy creating exercise can be initiated.
Building Sustainable Performance. Many organizations that deliver results during the first year have a tough time sustaining their hard-won performance improvements. The goal of every new CEO should be to achieve success during the first 18 months of the transformation program and then maintain it well beyond that point. It is imperative for a CEO to own this phase and closely involve the chief human-resources officer and other influential leaders across the company to communicate to the people inside.
Changes to the Organization
There are five important aspects to developing the right people and organization required to support a successful, sustainable transformation:
Ensure the commitment of the executive team and enhance their capabilities, including their ability to set the right priorities, mobilize and energize initiative teams, and hold themselves accountable for the results.
Deploy change-management tools and processes (such as an activist PMO, roadmaps, and rigor testing) to engage stakeholders and deliver results. (For more on rigor testing, see “The Hard Side of Change Management,” Harvard Business Review, October 2005.)
Install an HR team that participates as a transformation partner, anticipating talent and leadership needs, rather than as a mere service provider.
Build a talent pipeline that can help fill crucial roles, and develop capabilities in areas critical for the transformation.
Simplify the organization and culture to sustain high performance in conjunction with the new strategy.
