1Types of business ownership A sole proprietorship is a business that is owned and usually managed by one person. This is the most common form of business ownership. Advantages include: being your own boss, leaving a legacy, ease of starting and ending a business. Disadvantages include: limited financial resources, unlimited liability, and overwhelming time commitment. A partnership is a business between two or more people. It is the least common type of all the basic forms of ownership. Out of all business it makes the least amount of profits. Advantages include: more financial resources, shared management and knowledge, and longer survival. Disadvantages include: unlimited liability, division of profits, disagreements among partners and the partnership will be difficult to terminate. Corporations A corporation chartered by the state in which it is headquartered is considered by law to be a unique entity, separate and apart from those who own it. A corporation can be taxed,it can be sued, and it can enter into contractual agreements. The owners of a corporation are its shareholders. The shareholders elect a board of directors to oversee the major policies and decisions. The corporation has a life of its own and does not dissolve when ownership changes. Advantages of a Corporation: Shareholders have limited liability for the corporation's debts or judgments against the corporations.Generally, shareholders can only be held accountable for their investment in stock of the company. (Note however, that officers can be held personally liable for their actions, such as the failure to withhold and pay employment taxes.) Corporations can raise additional funds through the sale of stock. A corporation may deduct the cost of benefits it provides to officers and employees. Can elect S corporation status if certain requirements are met. This election enables company to be taxed similar to a partnership. Disadvantages of a Corporation: The process of incorporation requires more time and money than other forms of organization. Corporations are monitored by federal, state and some local agencies, and as a result may have more paperwork to comply with regulations. Incorporating may result in higher overall taxes. Dividends paid to shareholders are not deductible from business income; thus it can be taxed twice. Subchapter S Corporations A tax election only; this election enables the shareholder to treat the earnings and profits as distributions and have them pass through directly to their personal tax return. The catch here is that the shareholder, if working for the company, and if there is a profit, must pay him/herself wages, and must meet standards of "reasonable compensation". This can vary by geographical region as well as occupation, but the basic rule is to pay yourself what you would have to pay someone to do your job, as long as there is enough profit. If you do not do this, the IRS can reclassify all of the earnings and profit as wages, and you will be liable for all of the payroll taxes on the total amount. Limited Liability Company (LLC) The LLC is a relatively new type of hybrid business structure that is now permissible in most states. It is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership. Formation is more complex and formal than that of a general partnership. The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued, if desired, by a vote of the members at the time of expiration. LLCs must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets, continuity of life, centralization of management, and free transferability of ownership interests. Federal Tax Forms for LLC: Taxed as partnership in most cases; corporation forms must be used if there are more than 2 of the 4 corporate characteristics, as described above. In summary, deciding the form of ownership that best suits your business venture should be given careful consideration. Use your key advisers to assist you in the process. | 2Types of partnership A partnership arises whenever two or more people co-own a business, and share in the profits and losses of the business. Each person contributes something to the business -- such as ideas, money, or property -- though management rights and personal liability will vary depending on which of three modern partnership forms the business takes: general partnership, limited partnership, or limited liability partnership (LLP). General Partnerships A general partnership involves two or more owners carrying out a business purpose. General partners share equal rights and responsibilities in connection with management of the business, and any individual partner can bind the entire group to a legal obligation. Each individual partner assumes full responsibility for all of the business's debts and obligations. Although such personal liability is daunting, it comes with a tax advantage: partnership profits are not taxed to the business, but pass through to the partners, who include the gains on their individual tax returns at a lower rate. Limited Partnerships A limited partnership allows each partner to restrict his or her personal liability to the amount of his or her business investment. Not every partner can benefit from this limitation -- at least one participant must accept general partnership status, exposing himself or herself to full personal liability for the business's debts and obligations. The general partner retains the right to control the business, while the limited partner(s) do(es) not participate in management decisions. Both general and limited partners benefit from business profits. Limited Liability Partnerships (LLP) Limited liability partnerships (LLP) retain the tax advantages of the general partnership form, but offer some personal liability protection to the participants. Individual partners in a limited liability partnership are not personally responsible for the wrongful acts of other partners, or for the debts or obligations of the business. Because the LLP form changes some of the fundamental aspects of the traditional partnership, some state tax authorities may subject a limited liability partnership to non-partnership tax rules. The Internal Revenue Service views these businesses as partnerships, however, and allows partners to use the pass through technique. Existing partnerships that wish to take advantage of LLP status do not need to modify their existing partnership agreement, though they may choose to do so. In order to change status, a partnership simply files an application for registration as a limited liability partnership with the appropriate state agency. All states require disclosure of the partnership's name and principle place of business. Some states also require, among other things, identification of the number of partners, a brief description of the business, a statement that the partnership will maintain insurance, and written acknowledgment that the limited liability status may expire. | 3. Company structures. Span of control is the term now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has. In the hierarchical business organization of some time in the past it was not uncommon to see average spans of 1 to 4 or even less. That is, one manager supervised four employees on average. In the 1980s corporate leaders flattened many organizational structures causing average spans to move closer to 1 to 10. That was made possible primarily by the development of inexpensive information technology. As information technology was developed capable of easing many middle manager tasks – tasks like collecting, manipulating and presenting operational information – upper managers found they could hire fewer middle managers to do more work managing more subordinates for less money Tall In its The simplest form a tall organization has many levels of management and supervision. There is a “long chain of command” running from the top of the organisation eg Chief Executive down to the bottom of the organisation eg shop floor worker. The diagram below neatly captures the concept of a tall structure:
Advantages of tall Organisations 1.There is a narrow span of control is each manager has a small number of employees under their control. This means that employees can be closely supervised. 2.There is a clear management structure. 3.The function of each layer will be clear and distinct. There will be clear lines of responsibility and control. 4.Clear progression and promotion ladder. Disadvantages of tall Organisations 1.The freedom and responsibility of employees (subordinates) is restricted. 2.Decision making could be slowed down as approval may be needed by each of the layers of authority. 3.Communication has to take place through many layers of management. 4.High management costs because managers are generally paid more than subordinates. Each layer will tend to pay it’s managers more money than the layer below it. Flat organisation Many organisations have organised their employees into layers. Employees with the most authority (power) will be in the top layers and those with the least will be in the bottom layers. Organisations will structure the layers in a number of different ways. This article is about flat organisational structures, to learn about other types of organisational structure, click on the links at the bottom of this page. In contrast to a tall organisation, a flat organisation will have relatively few layers or just one layer of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. Span of control refers to the number of employees that each manager is responsible for. If a manager has lots of employees reporting to them, their span of control is said to be wide. A manager with a small number of direct reports has a narrow span of control. Due to the small number of management layers, flat organisations are often small organisations. Advantages and Disadvantages of Flat Organisations Advantages of Flat Organisations 1.Greater communication between management and workers. 2.Better team sprit as fewer management layers increase interraction between employees on different levels (layers). 3.Less bureaucracy and easier decision making 4.Fewer management layers may reduce costs as managers cost more than non managers. Also employees at higher levels in the organisation expect to be paid more than those on lower levels. Disadvantages of Flat Organisations 1.Employees may have more than one manager as there are a number of managers at the same level in the organization 2.May hinder the growth of the organisation especially if managers have wide spans of control. 3.Structure limited to small organisations such as partnerships, co-operatives and private limited companies. 4.Lack of layers may reduce opportunities for high level strategic management. |
4 reasons and benefits of mergers A merger occurs when two firms join together to form one. The new firm will have an increased market share, which reduces competition. This reduction in competition can be damaging to the public interest, but help the firm gain more profits. However, mergers can give benefits to the public. 1.Economies of scale. This occurs when a larger firm with increased output can reduce average costs. Lower average costs enable lower prices for consumers. 2.International Competition. Mergers can help firms deal with the threat of multinationals and compete on an international scale. 3.Mergers may allow greater investment in R&D This is because the new firm will have more profit which can be used to finance risky investment. This can lead to a better quality of goods for consumers. This is important for industries such as pharmaceuticals which require a lot of investment. 4. Greater Efficiency. Redundancies can be merited if they can be employed more efficiently. 5. Protect an industry from closing. Mergers may be beneficial in a declining industry where firms are struggling to stay afloat. For example, the UK government allowed a merger between Lloyds TSB and HBOS when the banking industry was in crisis. 6. Diversification. In a conglomerate merger two firms in different industries merge. Here the benefit could be sharing knowledge which might be applicable to the different industry. For example, AOL and Time-Warner merger hoped to gain benefit from both new internet industry and old media firm 7. The idea of flexibility in recruitment. Types of flexibility Types of Flexible Working Working flexibly can take many different forms. Ultimately it's about the organisation and the individual finding a common ground in the hours worked or the location of work carried out. Here are some ways flexible working is now being embraced, saving organisations money and increasing staff loyalty and productivity. Compressed hours Working your weekly contracted hours over less days per week. Part time hours Working less hours or days than that of a full time week. Flexi time Working an agreed core time each day, but choosing when to start and end the working day. Staggered hours Colleagues have different start, finish and break times allowing business to be covered at all time necessary, essentially shift work Annualised hours Working hours are set over a year, rather than week. Usually a core time is worked each week, then additional hour are worked at peak times throughout the year. Home working All or part of working hours are carried out at home or away from the workplace. Structured time off in lieu Agree to work longer hours in a busier period and take time off in quieter periods of business. Job Share Working part day or week shared with another employee, carrying out the same full time role between them. School Hours Work school time hours each day Term Time working Work same pattern as school terms throughout the year. | 5 Takeovers and mergers. Problems and failures 8. A cover letter A cover letter is a document sent with your resume to provide additional information on your skills and experience. A cover letter typically provides detailed information on why you are qualified for the job you are applying for. Effective cover letters explain the reasons for your interest in the specific organization and identify your most relevant skills or experiences. A cover letter, covering letter, motivation letter, motivational letter or a letter of motivation is a letter of introduction attached to, or accompanying another document such as a résumé or curriculum vitae. Job seekers frequently send a cover letter along with their CV or employment application as a way of introducing themselves to potential employers and explaining their suitability for the desired position. Employers may look for individualized and thoughtfully written cover letters as one method of screening out applicants who are not sufficiently interested in their position or who lack necessary basic skills. Cover letters are typically divided into three categories: The application letter or invited cover letter which responds to a known job opening The prospecting letter or uninvited cover letter which inquires about possible positions The networking letter which requests information and assistance in the sender's job search FormatCover letters are generally one page at most in length, divided into a header, introduction, body, and closing. Header. Cover letters use standard business letter style, with the sender's address and other information, the recipient's contact information, and the date sent after either the sender's or the recipient's address. Following that is an optional reference section (e.g. "RE: Internship Opportunity at Global Corporation") and an optional transmission note (e.g. "Via Email to jobs@example.net"). The final part of the header is a salutation (e.g., "Dear Hiring Managers"). Introduction. The introduction briefly states the specific position desired, and should be designed to catch the employer's immediate interest. Body. The body highlights or amplifies on material in the resume or job application, and explains why the job seeker is interested in the job and would be of value to the employer. Also, matters discussed typically include skills, qualifications, and past experience. If there are any special things to note such as availability date, they may be included as well. Closing. A closing sums up the letter and indicates the next step the applicant expects to take. It may indicate that the applicant intends to contact the employer, although many favor the more indirect approach of simply saying that the applicant will look forward to hearing from or speaking with the employer. After the closing is a valediction (e.g. "Sincerely"), and then a signature line. Optionally, the abbreviation "ENCL" may be used to indicate that there are enclosures. Other usesResume cover letters may also serve as marketing devices for prospective job seekers. Cover letters are used in connection with many business documents such as loan applications (mortgage loan), contract drafts and proposals, and executed documents. The MIT Sloan School of Management requests a cover letter as part of their MBA admission application. Cover letters may serve the purpose of trying to catch the reader's interest or persuade the reader of something, or they may simply be an inventory or summary of the documents included along with a discussion of the expected future actions the sender or recipient will take in connection with the documents.
11. Marketing mix Marketing mix – the factors controlled by a company that can influence consumers’ buying of its products. The 4 components of marketing mix (often called the four Ps) are: the product (quality, branding, packaging and other); pricing (recommended retail price, discounts or large orders, credit terms); promotion and place (where to sell, which distributers and transport services to use).
12 Marketing plan: main steps A marketing plan may be a plan overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. 1.Financial data- facts section well come from management accounting, costing and finance sections. 2. Product data-from production, research and development 3. Sales and descriptions section data- sales, packaging, distributions sections 4. Advertising, sales promotions- information from these departments 5. Marketing data and miscellany – from market research will would in most cases act as a source for this information.
| 6 Functions of HR department typical Human Resource Department is carries out the following functions: Manpower Planning It involves the planning for the future and finding out how many employees will be needed in the future by the business and what types of skills should they possess.It depends on the following factorsThe number of people leaving the jobThe projected growth in sales of the businessTechnological changesProductivity level of the workers Job analysis and Job description HR Department is also involved in designing the Job analysis and Job description for the prospective vacancies. A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. Job descriptions are written statements that describe the: duties, responsibilities, most important contributions and outcomes needed from a position, required qualifications of candidates, and reporting relationship and co-workers of a particular job. Determining wages and salaries HR Department is also involved in conducting market surveys and determining the wages and salaries for different position in an organization. These decision may be taken in consultation with top management and the Finance department. Recruitment and Selection One of the most important jobs HR department is to recruit the best people for the organization. This is of crucial importance as the success of any organization depend on the quality of its workforce. Details regarding the recruitment and selection procedure can be found here. Performance Apprasial Once the employees are recruited, the HR Department has to review their performance on a regular basis through proper performance appraisals.Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.On the basis of performance appraisal the HR Department will set up an action plan for each employee. If the employees needs any training then he provided that. Training and Development HR department is constantly keeping a watch over the employees of the organisation. In order to improve the efficiency level of the employees they have go undergo regular trainings and development programmes. All trainings and development needs are carried out by this department. Training might include on the job or off the job training. Find more information on training here. Employee welfare and motivation Happy employees mean a healthy organization. HR Department conducts various employee welfare activities which might include employees get together, annual staff parties etc. HR department also reviews organizational policies and its impact on the motivation of the employees. Addressing employees grievances HR department is the link between the workers and the management. Employees grievances related work environment are usually entertained and resolved by the HR Department. Labour management relations For the smooth operation of any organization, it is crucial to have good labour management relations. HR department has to ensure that these relations are cordial. In case of any labour-management conflict the HR Department will play a vital role in bringing both management parties to the negotiation table and resolving the issue. Implementing organizational policies HR Department has to coordinate with line manager and see that the organizational policies are being implemented in a proper manner. Disciplinary action can be initiated against employees who are not following organizational rules and regulations. All these actions are conceived and implemented by the HR department. Dismissal and redundancy HR Department has to take firm actions against employees who are not following the organizational code of conduct, rules and regulations. This can result in the dismissal of the employee.Sometimes, an organization may no more require the services of an employee. The employee may be made redundant. HR Department has to see that organizational and government regulations are being followed in this process.
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10. Marketing. Marketing strategy Marketing strategy is a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.[2] Developing a marketing strategy Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives.[3] Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases.[4] Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics. Marketing strategy involves careful scanning of the internal and external environments.[5] Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints.[6] External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.[4] A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan. Types of strategies Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, |
13. Branding Branding The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. To understand branding, it is important to know what brands are. A brand is the idea or image of a specific product or service that consumers connect with, by identifying the name, logo, slogan, or design of the company who owns the idea or image. Branding is when that idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product. Advertising professionals work on branding not only to build brand recognition, but also to build good reputations and a set of standards to which the company should strive to maintain or surpass. Branding is an important part of Internet commerce, as branding allows companies to build their reputations as well as expand beyond the original product and service, and add to the revenue generated by the original brand. When working on branding, or building a brand, companies that are using web pages and search engine optimization have a few details to work out before being able to build a successful brand. Coordinating domain names and brand names are an important part of finding and keeping visitors and clients, as well as branding a new company. Coordination of a domain name and brand names lends identification to the idea or image of a specific product or service, which in turn lets visitors easily discovery the new brand. Branding is also a way to build an important company asset, which is a good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help change that. Branding can build an expectation about the company services or products, and can encourage the company to maintain that expectation, or exceed them, bringing better products and services to the market place.
| 9. Dos and Don’ts of CV. Main blocks of resume What is a resume? Л resume should be a clear and concise summary of your qualifications. It should appeal to the employer and tell what you can do for him/her. Resume writing is writer-responsible, not reader-responsible in American culture. Resume DOs: •Type it •Place your name and contact information prominently on the page •Divide your resume into sections: for example, education, leaching experience, honors and awards, scholarships, etc. •Make section divisions clear. Consider using different typefaces (font), highlighting, etc. •Highlight the most important aspects "first." IГ you are a new graduate, place education first. If you are an experienced teacher, place leaching experience first. •Include grades if they are high enough •Use good quality, original paper •Use light gray or light yellow paper, if available ° Stay within one or two pages Resume DON’Ts: °Don't place references on your resume, [(should be on a separate page °Don't include a photograph of yourself | °Don't include personal information, such as age, appearance, or family °Don't use narrative form *Don't use photocopied resumes *Don't use pink or blue paper •Don't go over one or two page:; in length *Don't use the same resume for every job. Tailor it! Parts of a Resume:; Heading: Include your name and contact information at the top. Objective; There is a debate whether or not to include this section. If yon want, write a short (1-2 sentence) summary about your professional goals, as it relates to the job. Education: Include degrees earned, school name, location of school, dates of attendance, major/minor, and grades (if they are very high). Describe hi icily your courses and major field, hut highlight how it relates to the job you are seeking. Work Experience Include title of job, employer, location, and dates of employment. Describe bi icily your duties, and emphasize leadership roles or duties related to the job you are seeking. ■ Other Sections;. You may choose to include a section about honors and awards. interests. Or skills. Communication skills, computer skills, leadership roles, etc. are especially important to most employers.; |
firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: Leader, Challenger, Follower, Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. ** Product differentiation ** Cost leadership ** Market segmentation * Innovation strategies — This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: ** Pioneers ** Close followers ** Late followers * Growth strategies — In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration, Vertical integration, Diversification, Intensification These ways of growth are termed as organic growth. Horizontal growth is whereby a firm grows towards acquiring other businesses that are in the same line of business for example a clothing retail outlet acquiring a food outlet. The two are in the retail establishments and their integration lead to expansion. Vertical integration can be forward or backward. Forward integration is whereby a firm grows towards its customers for example a food manufacturing firm acquiring a food outlet. Backward integration is whereby a firm grows towards its source of supply for example a food outlet acquiring a food manufacturing outlet. A more detailed scheme uses the categoriesMiles, Raymond (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press. ISBN 0-8047-4840-3.: Prospector, Analyzer, Defender, Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies. Strategic models Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Real-life marketing Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven. Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable. For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists. | 14.Types of promotion techniques Promotion includes a business' activities to communicate with prospective customers about a product to convince them to use it. This includes newspaper, radio and television advertising, press releases, billboards and websites. What matters the most in promotion is the promotional objectives, available resources and the company's philosophy. Effective promotion persuades the customer to relate to the product being marketed. Other People Are Reading How to Design a Sales Promotion Campaign Promotional Techniques & Materials Sales Promotion There is a sales promotion in almost every shop you enter. That promotion technique is not only intended to give value for your money, but to make you leave the store happy and return later, possibly with family or friends. Sales promotion involves short-term techniques -- incentives -- to encourage customers to use a product. One technique commonly used in sales promotion is the use of time-limited coupons to woo customers to purchase a product while the offer is valid. This technique, according to Inc. Magazine, introduces new products, clears out inventories, attracts traffic, and aims to lift sales temporarily. Advertising Advertising aims to generate increased consumption of a product or service through branding. Mostly, it involves paid promotions through television and radio, print publications, the Internet and other media outlets. The promotion technique includes the name of the product and the value it offers the targeted customer. The name or image of the product appears repeatedly in a bid to woo consumers to the product or service. Businesses will spend about $760 billion on promotions by 2020, according to a Jack Myers "Media Business Report" released in February 2011. This includes all Internet display ads, search tools, interactive TV, video, digital assets of traditional media and mobile and social media. Public Relations This is publicity using third-party sources -- particularly the news media -- to spread information about a product. You can issue a press release that will promote your product in the media when quoted favorably. Public relations is almost free advertising because you do not pay the news media directly to report on your product. PR aims to generate positive publicity for your company as well as your product. The integrity of your company plays a central role in marketing. For instance, consumers are increasingly shopping with concern for the planet. Was the environment taken into account when manufacturing your product? If not, a customer might decide to shop elsewhere. You should not only care about profit, but the welfare of the environment and the community as well. Personal Selling A sophisticated product or service might require personal selling. This technique involves personal contact between sales representatives and those who make purchasing decisions, or consumers. It involves face-to-face or telephone promotion. The advantage of personal selling is that the sales person instantly clears any doubts the prospective customer might have. The other advantage of this technique is that the message can be altered if the desired behavior from the targeted customer does not occur. The drawback is that it is far more costly than other promotion techniques, based on high cost per action. CPA is a yardstick of success for promotion spending. Person-to-person contact is expensive because of the money required to support sales staff. According to knowthis.com, it costs around $300 in some industries each time a salesperson contacts a potential customer. | 15Marketing mix: Pricing strategies There are three basic pricing strategies: skimming, neutral, and penetration. These pricing strategies represent the three ways in which a pricing manager or executive could look at pricing. Knowing these strategies and teaching them to your sales staff, and letting them know which one they should be using, allows for a unity within the company and a defined, company-wide pricing policy. Skimming Strategy Skimming is the process of setting high prices based on value. Instead of basing your prices on your competition, a skimming price comes from within the company and the (financial) value your product represents to your customer. This strategy can be employed in emerging markets, where certain customers will always want the newest, most advanced product available. It also works well in a mature market, where customers have already realized the value of your product and are willing to pay for what they see as a worthwhile investment. Surprisingly, skimming also works in declining markets, as your diehard customers are willing to pay big bucks for what they see as an older but superior product with a dwindling supply. Neutral Strategy In a neutral strategy, the prices are set by the general market, with your prices just at your competitors’ prices. The major benefit of a neutral pricing strategy is that it works in all four periods in the lifecycle. The major drawback is that your company is not maximizing its profits by basing price only on the market. Since the strategy is based on the market and not on your product, your company, or the value of either, you’re also not going to gain market share. Essentially, neutral pricing is the safe way to the play the pricing game. Penetration Strategy A penetration strategy is the price war; this strategy goes for the deepest price cuts, driving at every moment to have your price be the lowest on the market. Penetration strategies only work in one of the four lifecycle periods: growth. During growth, your sales are continuing to expand, as your customers want the newest product but still a product that has already tested by others in the emerging period. This is when your average customer buys a product and when the sales numbers will be the biggest. A penetration strategy works here, and only here, because you’re attracting customers to a new but proven product with cheap productions. You’re developing relationships with new customers willing to try the new product but who will only come for a lower price. Penetration strategies fail in the other lifecycle periods by leaving possible profits in the hands of the customers. In an emerging market, your product is brand new and customers who want it first should (and will) pay for that right. In a mature market, a price war will simply start the process of endless and useless competition, destroying your profit margin. In a declining market, only those who still must have your product will purchase it, and just like in an emerging period, they should (and will) pay for that right. Knowing which pricing strategy works best for your company is an essential tool for any pricing manager and can only be found by recognizing the lifecycle of your products. If your entire sales force is on the same page in recognizing product lifecycles and utilizing pricing strategies, your company will likely see greater returns. |
16 fringe benefits and other staff motivation approaches Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries.[1] In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization.[2] The term perqs (also perks) is often used colloquially to refer to those benefits of a more discretionary nature. Often, perqs are given to employees who are doing notably well and/or have seniority. Common perqs are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist. Fringe benefits - A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are met. Any employee who receives taxable fringe benefits will have to include the fair market value of the benefit in their taxable income for the year, which will be subject to tax withholdings, and social security benefits payments.
19. Company departments. HR department. Department Specialized functional area within an organization or a division, such as accounting, marketing, planning. Generally every department has its own manager and chain of command. Commonly used expressions containing the word ‘department’:
Human Resources (HR) - personnel department, department which manages the administrative aspects of the employees Departments are the entities organizations form to organize people, reporting relationships, and work in a way that best supports the accomplishment of the organization's goals. Departments are usually organized by functions such as human resources, marketing, administration, and sales. But, a department can be organized in any way that makes sense for the customer. Departments can also be organized by customer, by product, or by region of the world. 20 types of takeover. Takeovers bids. Buyouts. What's A Takeover?
Put simply, a takeover is when one company buys another publicly-traded company. 'Publicly traded' simply means that their shares can be bought and sold on the stock market by anyone. The company doing the bidding (buying) doesn't have to be publicly traded, but they often are. The idea is that the bidding company will purchase enough of the target company's stock to gain overall control of that company. There are several different types of takeover. The main types are: 'Friendly Takeover' - the company bidding will approach the directors of the other company to discuss and agree an offer before proposing it to the shareholders of that company. The bidding company will also have an opportunity to look at the accounts of the business they want to buy - a process known as due diligence. 'Hostile Takeover' - the company bidding has their offer rejected or does not approach the board of the company they wish to buy before making an offer to shareholders. This also means they will not have access to private information about the company - increasing the risk of the takeover. Banks are usually more cautious about lending money for hostile takeovers. 'Reverse Takeover' - the final common type of takeover is the reverse takeover. This happens when a private (not traded on the stock market) company buys a publicly-traded company as a means of acquiring public status without having to list itself.
A takeover bid is an offer to purchase enough shares of a company to overtake the current majority shareholder. There are a variety of different takeover bid strategies, including friendly, hostile, and two-tier. High profile takeover offers almost always result in a temporary flux in the stock market, which may go up or down depending on public and market opinion of the takeover bid. In a friendly takeover, the bidding company or individuals inform the board of directors of the target company. Depending on the offer made, the directors then recommend to stockholders whether to accept or reject the takeover bid. In small companies, it is easier to approve a friendly takeover, as the board of directors often makes up the majority shareholders. However, if the board feels it is not in the interest of the company to accept the terms, they may reject the takeover bid, which sets the stage for a hostile takeover of the target company. Takeover bids may begin hostile or become hostile, depending on the strategy of the bidders. If a bidding company attempts to buy the majority shares without informing the board of directors first, this is considered a hostile maneuver. Likewise, if the board rejects the friendly takeover offer, the bidder may choose to continue pursuing shareholders without the input of the board of directors. Hostile takeovers may be conducted in a variety of ways, nearly always ending in disaster for the current board of directors if the acquiring party is successful. The bidding company may attempt to influence shareholders to vote out the board of directors in the interest of the company, using a tactic called proxy fighting. They may also simply buy all the shares available on the market to gain influence in changing the board to takeover-supporting members. In a tender offer, the bidder may offer to pay a fixed price above the market value for the shares, which the board may be forced to accept. There are a variety of methods that exist to help the target corporation avoid hostile takeover, but these carry their own huge risks. In a white or grey knight defense, the target company enlists the help of another corporation to bail them out, sometimes by offering them incredible concessions in return for buying enough stock to stalemate the takeover bidder. Other tactics, called Jonestown, suicide, or poison pill defenses, involve taking on large amounts of debt or diluting share value in order to make the target company less attractive to bidders. In 2008 amid a media frenzy, Microsoft offered a $46.6 billion US Dollar bid to take over the internet company Yahoo. What would have been the largest takeover in Microsoft’s history was allowed to fizzle out after repeated attempts at a hostile takeover were rejected by the Yahoo board of directors. Once it became clear that Microsoft would have to lay out considerably more money than they initially intended, the offer was dropped. Industry analysts suggest that this takeover would have been bad for both companies, and resulted in a 15% loss of jobs for Yahoo employees. For the consumer, the concern with takeover bids is that there are fewer choices available on the market, often resulting in rising prices and lower competition. For workers at a successfully targeted company, new management can often lead to job losses and serious upset to the established chain of command. Generally, a takeover bid is seen as good for the corporation, bad for the consumer and the lower-level workers. Critics also see a takeover bid as a slippery slope that can lead to violating anti-trust laws, and in need of serious legal parameters. Definition of 'Buyout' The purchase of a company's shares in which the acquiring party gains controlling interest of the targeted firm. Incorporating a buyout strategy is a common technique used to gain access to new markets and is one of the most common methods for inorganically growing a business.
| 17 memo and formal letter Business Memo Format The business memorandum is essentially an "internal" business letter that does not go outside of an organization. (as opposed to letters, which do go to outsiders). The "memo" as it is usually called, is the key internal communication tool in most businesses and institutions. In fact, the business memo is arguably the most important communications instrument in an organization. Memorandum are used to: announce, inform, advise, quantify, delegate, direct, discipline, instruct, request and transmit. In short, if something needs to be communicated and/or recorded formally in an organization, it is done with a memo. In many large organizations the corporate memorandum is the key "power instrument" when it comes to internal politics. Entire careers, and multi-million dollar programs, often hinge on the wording of a single memorandum. Most large organizations have their own corporate format for their memos. Letters are now used primarily Г01 formal correspondence с with clients (customers), and others outside the company, particularly) people you have not met. Imagine, for instance, that you need to ask for advice 0r information from someone you do not know personally. The person will likely rive a letter more attention than an e-mail message because a letter conveys an added element of formality and courtesy. Letters are the most common form of intercultural business correspondence. They serve the same purposes and follow the same basic organizational plans (direct and indirect) as letters you would send within your own country. Unless you are personally fluent in the language of the intended readers, you should ordinarily write your letters in 1 nglr.li 01 have them translated by a professional translator. If you and the reader speak different languages, be especially concerned with achieving clarity: •Use short, precise words that say exactly what you mean. •Rely on specific terms to explain your points. Avoid abstractions altogether, or illustrate them with clear examples. •Stay away from slang, jargon and idioms. Such words are often mistranslated. Abbreviations (such as NOKAI) and CAD/CAM), and North American product names may also lead to confusion. •Construct sentences that are shorter and simpler than those you might use when writing to someone fluent in English. •Use short paragraphs. Each paragraph should stick 1:0 one topic and be no more than eight to ten lines. •Help readers follow your train of thought by using transitional devices. Precede related points with expressions like in addition and first, second, third. •Use numbers, visual aids, and pre-printed forms to clarify your message. These devices are generally understood in most cultures. Your word choice should also reflect the relationship between you and the reader. In general, be somewhat more formal than you would be in writing to people in your own culture. In many other cultures, people use a more elaborate, old-fashioned style, and you should gear your letters to their expectations. However, do not carry formality to extremes, or you will sound unnatural. In terms of format, the two common approaches for intercultural business letters are the block style (with blocked paragraphs) and the modified block style (with indented paragraphs). You may use either the: American format for dates (with the month, day, and year, in that order) or the European style (with the day before the month and year). For the salutation, use Dear (Title/Last Name). Close the letter with Sincerely or Sincerely yours, and sign it personally. If you correspond frequently with people in foreign countries, your letterhead should include the name of your country and cable or telex information. Send your letters by air mail, and ask that responses be sent that way as well. Check the postage too; rates for sending mail to most other countries are not the same as rates for sending it within your own. In the letters you receive, you will notice that people in other countries use different techniques for their correspondence. If you are aware of some of these practices, you will be able to concentrate on the message without passing judgment on the writers. Their approaches are not good or bad, just different. The Japanese, for example, are slow to come to the point. Their letters typically begin with a remark about the season or weather. This is followed by an inquiry about your health or congratulations on your prosperity. A note of thanks for your patronage might come next. After these preliminaries, the main idea is introduced. If the letter contains bad news, the Japanese begin not with a buffer, but with apologies for disappointing you. Letters from Latin America look different too. Instead of using letterhead stationery, Latin American companies use a cover page with their printed seal in the centre. Their letters appear to be longer, because they use much wider margins.
23. Branding. Categories of brand values.??? Branding The process involved in creating a unique name and image for a product in the consumers' mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers. To understand branding, it is important to know what brands are. A brand is the idea or image of a specific product or service that consumers connect with, by identifying the name, logo, slogan, or design of the company who owns the idea or image. Branding is when that idea or image is marketed so that it is recognizable by more and more people, and identified with a certain service or product when there are many other companies offering the same service or product. Advertising professionals work on branding not only to build brand recognition, but also to build good reputations and a set of standards to which the company should strive to maintain or surpass. Branding is an important part of Internet commerce, as branding allows companies to build their reputations as well as expand beyond the original product and service, and add to the revenue generated by the original brand. When working on branding, or building a brand, companies that are using web pages and search engine optimization have a few details to work out before being able to build a successful brand. Coordinating domain names and brand names are an important part of finding and keeping visitors and clients, as well as branding a new company. Coordination of a domain name and brand names lends identification to the idea or image of a specific product or service, which in turn lets visitors easily discovery the new brand. Branding is also a way to build an important company asset, which is a good reputation. Whether a company has no reputation, or a less than stellar reputation, branding can help change that. Branding can build an expectation about the company services or products, and can encourage the company to maintain that expectation, or exceed them, bringing better products and services to the market place. | 18. formal letter structure. 1.sender’s address- is written on the top right-hand side of the page. 2. date is written bellow the sender’s address, sometimes separated from it by a space. 3. Inside address (receiver’s address) This is written below the sender’s address and on the opposite side of the page, i.e. the left-hand one 1)surname known if you known the surname of the person you are writing to, you write this on the first line of the address, preceded by a courtesy and either the person’s initial(s) or his/her first given name, e.g. Mr J.E. Smith or Mr John Smith, not Mr Smith. 2) title known. If you do not know the name of the person you are writing to, you may know or be able to assume his/her title or position in the company, e.g. the Sales Manager, or the Finance Director, in which case you can use it in the address. 3) Department known. Alternatively you can address your letter to a particular department of the company, e.g. The Sales Department, or The Accounts Department. 4) Finally, if you known nothing about the company and do not want to make any assumptions about the person or the department your letter should go to, you can simply address it to the company itself, e.g. Soundsonic Ltd, Messrs Collier & Clerke& Co. 4. Attention line. An alternative to including the recipient’s name or position in the address is use an ’attention of’: e.g. For the attention of Mr. R. (British English) or Attention: Mr. E. G. Glass, Jr. (American English) 5. Salutations: Dear Sir opens a letter written to a man whose name you do not known. Dears Sirs is used to address a company. Note: in the US – Gentlemen. Dear Madam is used to address a woman, whether single or married, whose name you do not known. Dear Sir and Madam is used to address a person you neither the name nor the sex. When you do not know the name of the person you are writing to, the salutation takes the form of Dear followed by a courtesy tile and the person’s surname. Initials or first names are not generally used in salutations: Dear Mr Smith, not Dear Mr J. Smith. The comma after the salutation is optional. 6. Body of the letter. This may be indented or blocked. It is a matter of choice. Whichever style you use, you must be consistent and use that style all though the letter. It is usual to leave a line space between paragraphs in the body of the letter, if the blocked style is used, this is essential. For the information concerning the linguistic aspect of writing the body of the letter, consult the following chapters or this manual. 7. Complimentary close If the letter begins with Dear Sir, Dear Sirs, Dear Madam, Dear Sir or Madam, it will close with Yours faithfully. If the letter begins with a personal name – Dear Mr. James, Dear Mr. Robinson – it will close with Yours sincerely. Avoid closing with old-fashion phrases such as We remain your faithfully, or Respectfully yours, etc. 8. Signature. Always type your name after your handwritten signature and your position in the firm after you typed signature. This is known as ‘the signature block’. Even though you may think your signature is easy to read, letters such as ‘a’, ’e’,’o’, and ‘v’ can easily be confused. 9. Per pro. The term ‘pre pro’ is sometimes used in signatures and means ‘for and on behalf of’. Secretaries sometimes use p.p when signing a letter on behalf of their bosses. When writing on behalf of behalf of your company, it is useful to indicate your position in the firm in the signature. If there are many enclosures, e.g. leaflets, prospectus, etc., with the letter, these may be mentioned in the body of the letter. But many firms in any case write. Enc. or Encl. At the bottom of the letter, and if there are a number of documents, these are listed, e.g. Enc Bill of landing (5copies) Insurance certificate (1 cope) Bill of exchange (1 cope) 10. Company position 11. Enclosure. Add this if you are sending something with letter.
21 ageism and other kinds of discrimination in employment process Discriminatory Employment Practices Terms: 1. Gender Identity Discrimination – It is unlawful to discr |
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However, tall structures rarely exceed 8 levels of management. This is firstly because the number of layers (i.e. management levels) decreases the span of control. Secondly the disadvantages of the tall structure begin to outweigh the advantages of a tall structure.
Layers and Span of Control