Business Management 3.0

NFC Project; an ethical perspective?

2011-11-27T15:58:00.001-08:00

I am looking forward on how the issue of NFC (National Feedlot Centre) will be handled by the society or even the person in-charge. There are many parties or components involved, and many questions arises such as

1. Who owns the project?

2. Who has taken it over and why?

3. What has the impact on the nation?

4. Can it be a distributive justice project?

5. Is it ethical to the tax payer to have a loss project?

There are many more questions. However, the biggest question that we could ask as a tax payer, is moral? Is it Ethical in changing the projects into many hands and at last it turn sour.

Most tax payer is not interested anymore on reasons why the directors have taken certain action to ensure the profitability NFC. Many citizens will be asking

a. Is it moral? Is it ethical?

The project was awarded to LTA where the interest of the nation is the main key that is to unsure the supply of beef is sufficient. This could resolve to certain extent on the increase in food price. It cost to a huge amount of RM300 million.

Later the project was much mentioned by PAC (Public Accountant Committee, led by Datuk Seri Azmi Khalid); enlighten the society on what had happen to this particular project.

The A-G’s Report, which was released last month, pointed out that production in 2010 was only 3,289 head of cattle or 41.1% of the target set. The NFC was set up three years ago to transform the cattle and beef industry, aided by satellite farms, to meet 40% of local beef demand by the end of last year.

Some people suggest that, all project which involves the public interest must be able to stand for public scrutinizing and only then it is said to ethical practice has been exercised. According to Kant’s Opinion, an ethical scholar; “Moral is contain one’s doctrine and not dependent what happen accidently.” He also said that, “We must be able to defend a decision.”

Ethic Assignment Question:

1. Taking the case of NFC, in your perspective, explain on the morality and ethical perspective. Provide your justification
(OR)
2. Social Capital in ethical perspectives.

Note:
1. Word counts : 2,500 – 3,000 words
2. Font : Calibri or Arial : 12
3. Spacing: 1.5 space
4. Plagiarism is totally not allowed or the assignment shall not be mark.

Strategic thinking - Is Business Model Important to Organizations?

2011-11-22T17:57:00.000-08:00

In most companies the practice before a new year is developing a business plan. In developing the business plan, the organizations would collect all the key management and even to an extent certain additional selected employees to undergo brain storming session. This practice has been a tradition to certain organizations. However a question arises after a certain period of time, “why are we not achieving our goals?” “Why are we still behind target?” and few more other questions.

The questions are:

1. Is it right for them to develop business plan or do they need a business model before developing the business plan?

I have yet to ask another question. “Is the methodology of doing brain storming session is right?” Do they use the Delphi Method or Nominal Method in ensuring there will be getting the expected answer without bias?

However from my research, experience, advisory work, I realize that, it has to start with developing business model. After developing business mode, the organization shall proceed with the development of business plan.

Another critical factor is to look at; how ‘thick’ is the business plan. Actually the thicker the business plan the more useless it will be. It will be a kind of book and kept in a hidden area or open area to collect dust.

Again from my years of research, it is found that, the system of using 4 (four) pieces of A-4 paper would be the most practical and applicable as a business plan, while business model is only 1 piece of A4. Combining all this would only be 5 pieces of A4 paper or 3 pieces of A4 and 1 piece of A3 paper. This would include the monitoring and control system. I have named this system as BMBP5.

These is the most simplified, effective and applicable system to be used proven good record used and applied in organizations.

Assignment Questions for Strategic Students:

1. Select a small business or enterprise that you came across. Analyse what are their current problems and propose for solution and further development of the business.

2. Taking your current department that you are working in. Analyse what are the current problems and propose solutions.

Note:

a. Your writting must be in the perspective of Strategic

b. 2500 words to 3000 words

c. Font: Arial or Helvitica. Size 12

d. Spacing of 1.5

e. STRICTLY NO CUT AND PASTE WORK - Plagarism : Resylting with the assignment shall not me marked.

f. Insert all relevant charts, figures, table and even pictures.

ANALYSING AND SOLVING COMPANY PROBLEMS - methodology

2011-03-06T21:08:00.000-08:00

In many cases that we meet in our real world or we hear to friends that their company is facing problems and they are not sure what and how to undertake to resolve the problems. They might have taken actions but normally they are in the wrong mode or its right but not accurate.

After certain period of research that I have done, at last I came to a summarized version of this critical framework or methodology in searching, analyzing and resolving the matter.

Steps are:

1. Listen to the problem/story

2. Identify the key problems

3. Undertake internal and external analysis + data collection

4. Look at possible action need to be taken in resolving the problem based on helicopter view or according to strategic methodology

5.a. Use strategic menu as the methodology for basis of implementation to ensure competitiveness

5.b.Use the strategic 8 implementation component as a check list. Apply.

6.Implement, monitor and make corrective actions along the way

With this methodology, you are almost able to identify and propose the framework for a solution. However you still need to elaborate on your proposal based on the framework above for convincing to key management.

Note:

For Internal analysis, the we can use the tools:
a. Resource Analysis
b. Value chain analysis

For external analysis we can use the tools:
a. 5 competitive pressure
b.Rival positioning strategic map - to determine the nearest 2 competitors and the weakest 2
c. Competitors analysis

If we want to focus more to improve the effciency of the value chain, make sure to use the analysis of the value chain in detail, then it is good to use FTY & RTY

To improve the value chain, we can use the ER2C- Eliminate, reduce, Raise, and Create. This is for the process in the value chain in ensuring to achieve the cost reduction.

Any questions can e-mail me at: zulkuflizz@gmail.com or my facebook at: mohd zulkufli zakaria

PEOPLE- STRATEGY- OPERATION

2011-02-16T02:40:00.000-08:00

Many executives have been asking me questions on why many companies failed to effectively implement their planned or intended strategy. Some complaint that they had done a very thorough analysis, plan and later execute the strategy but still a failure.

After a good discussion I then realized that they missed the linkage of 3 main components which are:

1. People

2. Strategy

3. Operation

While linking all these 3 components, they later must ensure applied the 8 important components of effective strategic implementatiosn such as leadership, building capable organizations, adopting best practices & bench marking, instituting SOP and policies, tie-in-rewards, installing information system, marshaling resources and shaping the work environment & culture.

While implementing all the above 8 components the main principles; people, strategy and operation need to be linked effectively. It might need experience and good leadership capabilities to undertake this exercise of linking the 3 components. A good monitoring, control and performance evaluation must then be implemented periodically to ensure the efficiency of the execution and timely. It is important to remember that the effectiveness of a strategic execution shall only come with low cost of operation and higher customer value. This could again be done with value innovations.

As a conclusion I could say that, strategic implementation is the most important part in strategy and the linkage between people-strategy-operation is crucial.

ASSIGNMENT:
Select a company or business that you would be able to have some data for analysis or observation. Analyse what is the problem of the business (company or enterprise). Propose for correction or improvements. Use the strategic studies that you have learned.

Words: 2,500 - 3000

Why CRM?

2010-07-30T05:12:00.001-07:00

CRM or Customer Relationship Management is one of the new efforts of marketing. Due to globalization, marketers realise that mass market has emerge and the segmental market is becoming bigger and unreachable.

A person in Malaysia now could sell a purse to a customer in US, UK, Australia or even Uganda. The question that has been pondering in the mind of marketers; "how to reach these potential prospect or customer? How to ensure it is personalise and a relationship could be developed? They now found out that CRM would make the difference.

It is then CRM being exercise where 3 main components are being utilised:

1. People

2. Technology

3. Process

People? Yes, it involve the front desk, the back office system, data mining to manage the huge data warehouse.

Technology? Yes it involves, call centre (people + technology), sms, fax, web sites etc.

Process? Yeas again, since all these interlinked system are done using processes which is handled by soft wares, human actions to activate such as phone calls etc.

The main idea behind all these is meeting the mass market demand and personalise or one to one business at one go. Here it would contribute to relationship marketing which later would tremendously contributed to customer loyalty and customer retention.

One businessman told me, "Hey, we personalised the customer needs despite the market is global. Its great!"

The question is, what are the cost that might be involve? The question is to build or buy the system? Well define your goals, objectives, resources capabilities and decide after a good ranking is being made. Well me? I develop it but it took a year to complete with our IT guys. Buying well it might cost as low as RM400k until RM1.2 million.

Mine? It works but we treat a lot of bugs along the way. Any example in market? SAP is a good example.

Presentation: (Group work)

You are trying to propose a new CRM system to your management. Prepare slide presentation of which your time given by your Chairman is only 10 minutes. You are not obliged to how many slide to be presented but ONLY the time.

(Note: for a speech of 120 word per minutes, normally 1 hour need 12 - 15 slides.)

Assignment: (Individual)

From the slide presentation you are required to transformed into a proposal paper with the same intention of the said presentation.

Ethics, our action and societal culture; the relationship

2010-06-10T17:50:00.000-07:00

Any action that we do everyday has its own value. It might be negative or positive value but there is a value. This value contributes and transform into impact.

In a bigger perspective the impact will be translated as our style, our family culture and adding all the family cultures in a particular society or community it will in return turn to be a society culture.

“A continuous practice may develop an attitude,” (Olson & Zanna, 1993). It is important to remember that, an attitude will later turn to behaviors.

“When a values being developed and becoming norms to a group of society, it will then become a culture,” (Solomon, 1984)

For that reason, we as a person need to understand that, what ever we does must be ethical, moral and the basis of these ethical values, morality must be based on real understanding of ethics and morality. The best based is on religion and to Muslim, it is Quran and Hadith. The religion in this world is teaching us these values ensuring the mankind would have a good life where the morality is good and hence develops a society of good values.

According to Kant view, “An action is moral, if its intention is good and the action is good.” and according to Kant also, "For any motral action, it focuses on good names, good start, and good intention and does not only look at the result of an action". In Quran says;

{2:42} And do not mix up the truth with the falsehood,

nor hide the truth while you know (it).

A society(Masai, in Africa) which has develop a practice of drinking the cow’s blood in their daily life will later becomes a norms and later translated to be a culture despite other world might say that is not hygienic. That goes to any deeds or action against a religion or immoral and with continuously doing it, it will turn to be a norm and later becomes a culture of the society. As it reaches here, the whole society will be living in darkness.

A free sex, a gambling and talking using awful words will one day be a norm if we continuously doing it despite at the early stage it might be an argument due to immorality act. Can we imagine it? Can we accept it or we are practicing toward such a culture?

Let’s evaluate and think over on these issue and many more issues which is against morality. It might be legal but immoral. Do you know one?

slide week 1

https://www.yousendit.com/download/YWhQK0drQXAwVWxjR0E9PQ

week 3 slides

Managing Organization

2010-05-12T17:29:00.000-07:00

In most cases that I have met or appointed as a consultant or provide advices to companies, I realize that many of the key management do not understand what is POLC that is Planning, Organizing, Leading and Control. I was surprised that they knew the words but would not be able to explain in a detail the understanding, the theories within each of the words and hence they are not able to execute the knowledge. It is important to understand that in managing the organization, the key thing is POLC.

I would propose that if anybody is learning or would like to learn POLC and able to use is the below flow charts could be the one of the best way to understand and how to apply it.

Steps:
1. Learn and understand the meaning of words

2. Understand theories in each of the words – if Planning, how many type of planning available which can act as a tool and which is the best one to be use according to your organization.

3. Draw a mind mapping to understand fully for number 2.

4. Chart a plan to use POLC and not to forget inserting the tools

5. Apply

If you still had problem, then a consultant would the right answer for you. Call him and meet him to seek a clear way of using the POLC. It is important to remember that some scholars might not use POLC but POLE (Planning, Organize, Lead and Evaluate). However it is the same since the control section involves – monitoring, performance evaluation and corrective measures.

Slide for week 5:

https://www.yousendit.com/download/dXFVck8wdGpOQnl4dnc9PQ

Assignment question:

https://www.yousendit.com/download/dXFVck81TlFGOFJFQlE9PQ

Doctrine crafting and execution of strategy; a crucial need

2010-04-13T07:53:00.000-07:00

We wake up in the morning, have a bath and later part after breakfast; we then make our move to the office. For retiree, the schedule might be more relaxing. However for both working and non working (retiree) or even entrepreneur, the word strategy is still very important to their daily life.

The question is how many of us realize that we are a strategist? And how many of us do realize that, doctrine crafting and execution of strategy is very much important as much as we need our food. Do we? Are we free from strategic planning or crafting of strategy as we move out from the house to the office? Or shall we just drive without thinking which route to take? Do we need strategy in ensuring our work done at office? Do we need plan in meeting the sales target this year, planning for growth of our company, family income or even getting married. Do we need to plan or in a strategic approach, do we need to craft a strategy and later execute it?

The answer is yes we do. Do we have to doctrine the strategic philosophy in our life? Yes we do. And do we have to learn all the strategies to move forward? Yes we do. And ask ourselves, do we plan? Yes we do. If we don’t plan then we plan to fail. We can’t just do anything we want to do without a piece of planning. We need to PLAN. And this plan is termed as crafting of strategy and implementing the plan is termed as execution of strategy.
The only thing is that such a small plan is not complex and does not need a proper well laid planning with the external and internal analysis. In an organization handling we need the complete crafting and execution of strategy which includes external, internal analysis. We also need to choose the right strategic choices and later monitoring, control process. The most non forgettable activity is corrective measures. All these are needed in a complex crafting and executing of strategy especially in running a firm and business as a method to ensure the sustainability + profitability of the firm.

Assignment Question - EDBM:

https://www.yousendit.com/download/bFFOSmIrcTIzS28wTVE9PQ

Can we survive without strategic management?

2010-02-08T16:11:00.000-08:00

Addressing the issue above would be an abstract matter to those who might have not come to any school of studies in strategic management or crafting and executing strategy. Despite of these situations, everybody must have undergoes the process of strategic thinking and executing strategy thinking in their daily life.

In most people it is only a thinking process and does not requires any proper planning, studying and it is only a mind process matter. Unlike to those who went to business schools in any universities would be able to restructure, organize and place all the knowledge of strategic planning and strategic executions into a right flow or sequence. This capabilities of putting all this thinking and planning process with the addition of activities such as analysis shall contribute to an effective strategic planning and strategic execution.

To make it more effective the monitoring, control and evaluating the performance will definitely induce a high yield of effects. For that reason only those who read, learned, understand and exercise the strategic processes will only benefit from it.

Weekk 1 lecture:

https://www.yousendit.com/download/S1VBa0ZUVEhOMUJMWEE9PQ

Week 2 lecture:

https://www.yousendit.com/download/RmNDQk01YUkrV3cwTVE9PQ

Marketing and IMC – Integrated marketing Communication

2010-01-31T16:56:00.000-08:00

Learning marketing is a very important activity to all people as long as they are alive. It might be for a degree that he or she is looking forward, a promotion in the work place or even just for knowledge. Why, because marketing is very much related to our life activities, knowing people, selling ideas to people, getting votes from people. All these activities I have mentioned in my previous writings.

But what most important to those who are looking forward to be a professional marketer or marketing as the basis of career, career ladder; then IMC or integrated marketing must be one of the module learned and later practice in real life.

IMC or Integrated Marketing Communication started in 1990’s where marketing mix; the P’s has been seriously looked at. The one that IMC is focusing is the P – Promotion. According Wikipedia library; “It is a shift in advertising and media industry that has caused IMC. It is a holistic approach to marketing communication.

Integrated marketing communication is integration of all marketing tools, approaches, and resources within a company which maximizes impact on consumer mind and which results into maximum profit at minimum cost

All we can say that the shifts in the advertising and media industry have caused IMC to develop into a primary strategy for marketers which involves:
From media advertising to multiple forms of communication.
From mass media to more specialized (niche) media, which are centered around specific target audiences.
From a manufacturer-dominated market to a retailer-dominated, consumer-controlled market.
From general-focus advertising and marketing to data-based marketing.
From low agency accountability to greater agency accountability, particularly in advertising.
From traditional compensation to performance-based compensation (increased sales or benefits to the company).
From limited Internet access to 24/7 Internet availability and access to goods and services.
The goal of selecting the elements of proposed integrated marketing communications is to create a campaign that is effective and consistent across media platforms. Some marketers may want only ads with the greatest breadth of appeal: the executions that, when combined, provide the greatest number of attention-getting, branded, and motivational moments.
Others may only want ads with the greatest depth of appeal: the ads with the greatest number of attention-getting, branded, and motivational points within each.
Although integrated marketing communications is more than just an advertising campaign, the bulk of marketing dollars is spent on the creation and distribution of advertisements. Hence, the bulk of the research budget is also spent on these elements of the campaign.

Week 1 slides:

https://www.yousendit.com/download/S1VBT2pDOC90d0dGa1E9PQ

Week 2 slides:

https://www.yousendit.com/download/S1VBT2pHcWZubHdLSkE9PQ

Week 3 slides:

https://www.yousendit.com/download/S1VBT2pORkUwMEdGa1E9PQ

Week 4 slides:

https://www.yousendit.com/download/S1VBT2pCSU83bUJMWEE9PQ

Managing Human Resource is a challenge

2010-01-27T00:41:00.001-08:00

Managing human resource has changed. Previously managing human resource is only towards getting the requirement form departments for personnel and later advertise and doing the selections followed by recruitment.

Training only comes when there is brochures send by agencies or human resources training companies and later the HR manager would distribute to all head department and inquire ‘who wants to send staff for training?’ ‘We still have some budgets for this year’!!

Practice has change now a days, the HR has a vital stand together with the corporate planner (who does the strategic planning for the company) and also the CEO or directors. It is to align the HR with the corporate vision, mission and objectives. Later HR manager or head is responsible to build a capable organization to ensure the strategy planned could be executed effectively. The failure or the strategic executions is crucially depending on the strategic planner/corporate planner and HR.

The challenges in being an HR currently is more difficult compared to last 10 years or even last 5 years.

Week 6, 7 & 8 slides:

https://www.yousendit.com/download/RmNDcmxjTkxrUm14dnc9PQ

Week 8:

https://www.yousendit.com/download/RmNBa0ZRNDQ3N0R2Wmc9PQ

week 11:

https://www.yousendit.com/download/THE3eEVYQVNlcElLSkE9PQ

Ethics, does it carry any meaning to global warming?

2010-01-16T20:34:00.000-08:00

We have been talking, preaching, giving speeches on global warming. The President of US, the Malaysia’s premier and almost everybody in town talking about t. The question is, “does it help? Do all this people really mean what they that they? Do we?

Let’s evaluate. We get up in the morning; do we change our habits for not smoking cigarete? for not using anything that might cause global warming? Air-condition?

Then we start our car. Make a move to our lovely office. Do we change by preserving the air and not polluting the air by using public transport, by cycling to office, by car pooling? we don’t. We are not going to be late to the office or we get fired. Or because the government is not seriously making a move towards they says; “preserve the world”, “reduce the global warming”. There are no electric buses; all the busses are using diesel with all the black smokes and it hurts the eyes, hurts the lung and it sticks to our nice ironed shirts and pants.

The moment we reach our office, it is centralized air-condition, one of the biggest contributors to the global warming. To those working in the factories they just continue the last night shift, releasing the entire nitrogenous compound (via the smoke) to the air.

While he is one of the people who are responsible to release that compound into the air, he is happy, “I am doing my job, I have done it, and my immediate superior shall admire me.”

The release is 24 hours a day until and forever. So that goes to every body. Actually who is saving the world? Who is destroying the world? I think the best words to say are “Let us destroy the world faster and the speed now is still slow. We need to destroy the world faster and faster so that many people will die faster, and including us.”

For that reason, with we do not understand ethics in work place, ethics is business and apply ethics in our life, we are just another murder to the beautiful world.

Slides week 3:

https://www.yousendit.com/download/VGljblFPYStlaFFLSkE9PQ

Slides week 4:

https://www.yousendit.com/download/VGljYUp6VEh0QTBLSkE9PQ

Managing Human Resource is a challenge

2010-01-13T02:17:00.000-08:00

Week 1 slides:

https://www.yousendit.com/download/VGljYUo5OW5VbThLSkE9PQ

Week 2 slides:

https://www.yousendit.com/download/VGljYUo5OW5uSlNGa1E9PQ

Week 3 slides:

https://www.yousendit.com/download/VGljYUo2eFhvQUlLSkE9PQ

CRAFTING AND EXECUTING SRATEGY?

2009-11-24T06:24:00.000-08:00

Many universities and scholars has doctorate the new mode of strategic management which is called ‘Crafting and Executing Strategy’. Despite of the new approach in developing the strategic plan but many still inquests what is strategy? Some even mistakenly understood or confuse between strategy and tactics. To a bigger surprise, many are still unable to put a right strategy, right business model and link it with the KSF.

Strategy actually deals with the competitive plan and the business approaches that the company shall undertake. On the other hand the business model concern on the cost flowing from the strategy and demonstrate whether the business can be profitable + viable.

After having the business model done, the company has to ensure it is linked to the industrial KSF (Key Success Factor). The business model must be perfectly true to make profit as it is tested with KSF. If the business model is not aligned with the KSF then the business model or the KSF needs some corrective actions.

For that reason this three factors must be in a chain, strategy à business model à KSF. Despite of many people tend to forget KSF or business model; actually all three are crucially important in strategic implementation.

Sample assignment's format for Public Bank Strategic Analysis:

https://www.yousendit.com/download/MVNkWWVzR3N3TGpIRGc9PQ

Slide week 1:

https://www.yousendit.com/download/MVNjSU5BYTJwM2tLSkE9PQ

Slide week 2:

https://www.yousendit.com/download/MVNjSU5ObTgzS3BMWEE9PQ

Slide week 3:

https://www.yousendit.com/download/MVNjSU5OQ1JCTWtLSkE9PQ

Slide week 4:
https://rcpt.yousendit.com/793406452/d80ae7cdb2eafe0b10822a3ab0696fe5

Marketing, is relationship so important?

2009-09-08T21:22:00.000-07:00

In many cases of marketing people has been asking me, “Do we really need to build a relationship in marketing?” My answer constantly says YES. In modern marketing, relationship has been demonstrated as a crucial factor and it has been elaborated in detail by Philip Kotler in his books such as Marketing Management and also Marketing Principles.

The transactional marketing is obsolete despite it is still being practice in Malaysia. Most probably for a Hypermarket they might still practice transactional marketing especially to consumable section. But then most modern hypermarket now is not practicing transactional marketing, yet moving to relationship marketing. They started with membership cards, sending invitation to members for any sales or special offers and gift for any festive. These are all ways to build relationship marketing.

Managers has been interviewed that, by having relationship marketing the profit of the company could be improved tremendously since the cost of acquiring customers has been cut except only for maintaining the relationship. Scholars say that the company profit could increase from 5% to even 125% depending on the types of business or industry. They says that, relationship marketing would lead to Customer Loyalty.

Week 4 slides:

https://www.yousendit.com/download/Z01PQk0xSWhCTWxFQlE9PQ

Understanding the moral decision making in business ethics

2009-08-19T02:52:00.000-07:00

According to an Ethic theorist, Kant; “in making a decision with regards to moral issues, we must be able to defend a moral decision. The decision must also have a universal moral value and if we can’t agree on the principle if we can’t see the principle being applied.”

In another words, we just can’t agreed to any decision made by saying that it is moral unless we can see the moral principles is applied.

According to Ruggiero’s view; there are 3 main things to be focused on an action which could be as a moral action.

1. Every action by someone good personally or professionally, could only be said moral, when it is found good from the human relationship context.

2. The effect of our action towards a good behavior is a priority in life

3. Any effort taken to reduce the degree of such value when decision is being made, it is considered immoral and this has been agreed by both Consequentialist and non-Consequentialist.

From here it is clear that morality of an action is referred to the impact on human relationship and the any effort to decrease the value is considered immoral.

Question arises, what happen if any action is related to environment and not directly to mankind? The answer is simple; does the environment relate or having relationship to the good life of mankind? If it does then it is related to human relationship.

Due to this understanding, it is important that at any action to be taken and at any course, the moral aspect must be the doctrine.

Note: Book on Ethics that we could use as reference as in the picture above: BUSINESS ETHICS, by William H Shaw; Publisher: Thomsan Wadsworth : RM35.00 ( at University Malaya- Pekan Buku, Perdana Siswa)

Week 3 and 4:
https://www.yousendit.com/download/Z01OZ295VnM3N0JFQlE9PQ

Week 7 lecture slides :
https://www.yousendit.com/download/Z01NbGtONmM5bEJjR0E9PQ

Marketing, advertising, consumer behavior and BOS, a new business perspective

2009-06-20T19:44:00.000-07:00

In most business operators, cost savings is the mere important words to them and they have found to have misinterpreted it. In many interviews that I have made, cost saving is done until it effects hiring highly paid skill operation personnel, advertising, promotions and some even reduce the expenses on having a qualified accounts personnel.

The idea of not budgeting for advertising or proper promotion has been an absolute idea. The Gurus of Marketing; Philip Kotler; mentioned in many of his speeches and his marketing books, the importance of marketing, understanding consumer behaviors in business today.

Actually marketing could be run from the cheapest way by having e-marketing and the expensive marketing exercise which is on air marketing in TV or media. The other expensive exercise of marketing is the billboards advertising. Millions of people would will ‘catch and retain’ the informative or persuasive marketing done through this type of marketing.

Steven Scot, described in his book, “A millionaire’s note book”, on how he make a full benefit from the short TV advertisement in market and selling his first product; later own American Telecast Corporation and Groups of Consumer Goods Companies.

Steven used to mentioned on of his success trade that is understanding “The Law of Building: Don’t start building the house until you’ve laid the foundation.” From here he further mentioned, 2 (two) main steps to be taken as the action plan.

First, asking logical questions about our product and our offer:
- What are all the benefit associated with our product?
- How does my product relate to our consumer’s 2 greatest motivations – desire to gain

and fear of loss?
- How can we raise the perceived value of my product without significantly raising the price?
- In the perspective of cost of goods, cash flow, competitive price; how could we offer pricing,

payments terms, rebates, volume discounts, and so forth to our consumers?

Second, asking ourselves logical question about our consumer:
- Who is our primary consumer and what percentage does he or she represent?
- What are the primary and secondary motivations for our consumer to buy this type of

product?
- What objections or excuses might this consumer use to delay or avoid a buying decision about

this product?
- What are the answers to all this objection and objections that we could offer?
- Who is your secondary consumer?

In my teaching of Blue Ocean Strategy to some groups of students I always remember the Three Tiers of Non-customer who are actually customers.

Tiers 1: “Soon-to-be” noncustomers who are on the edge of our market, waiting to jump ship.
Tiers 2: “Refusing” noncustomers who consciously choose against your market.
Tiers 3: “Unexplored” non customers who are in the markets distant from yours.

From above we could see that Steven blend his question within, market segmentation, consumer behavior, advertising and the marketing mix. He might have used the marketing analysis tools to find his answers.

According to BOS (Blue Ocean Strategy), companies always forget the huge noncustomers. These noncustomers are in three tiers and they represent giant latent demand of customers. The challenge is how to convert them into a customer.

Combining all the knowledge of segmentation, marketing mix, advertising, consumer behaviors and relate them with Blue Ocean Strategy we are then able to meet the challenge on converting this huge latent demand into huge number of customers. Adding the capabilities of relation marketing, we are then having the large numbers of loyal customer.

Link to file:

https://rcpt.yousendit.com/703553416/1fab0ed7c2f2c570c6371da68d58566b

The relation of Marketing in Business Operation

2009-05-25T07:42:00.000-07:00

In many cases that I have met most small business starters or even operators, business research, marketing research are being separated from each other or not being practiced despite it is a critical factor.

A most recent case that I was deeply involved is where a millionaire friend of mine is deeply interested investing in fishing business in Aceh, Indonesia. This investment is more on diversification into different business since he is a logger.

After a week of several meeting and discussion, on 12th May 2009, three of us took a flight to Aceh in the intention of an immediate purchase of fish for 3 to 10 tons per day. I proposed that some detail research on the operation, marketing plan and a business model must be developed prior to the investment. The reason is that the business I am involved in Indonesia is Tuna fishing and not the purseiner or trawler fishes.

On reaching Aceh we went to a fishing jetty in Idi which took us at least 7 hours drive and we realize that the fish are mostly Euthynnus affinis or in Indonesian name is Tongkol Como, or the Malaysian name is Tongkol Hitam and Tongkol Putih. There some Albacore available beside Loligo app. Based on my experience I assumed for the unloading at that particular fishing jetty would be at least 50 tones of fish. We felt unhappy since the information provided by the Indonesian Fishery was not accurate. We then left for the next jetty which took us a day of driving.

The next jetty was the small jetties which are distributed unevenly at an area of 50 km radius. This are the type of fish that we are looking but each jetty could only supply us with 100 kg to 200 kg a day. Our intention of having a minimum of 3 ton of fish per day again becomes a dream. We are not able to have the fish needed for the market that we think we had.

Both of my friends then left home for Malaysia the next day and I stay for some research for this particular business. I believe that the challenges that we faced could be resolve with a good research. I stayed for a week and later I came with a good finding and proposal to run such a business.

On my return to Malaysia, we then had 2 meetings and later decided to venture into this particular business. I reminded my partners that a regular research and analysis must be made in ensuring the sustainability and profitability of the business. I also reminded my friends that we are also lacking in having a good market in Malaysia to market out a 3 to 10 ton of fish a day. This venture could be a catastrophic move since my research in Indonesia is only on operational research and marketing research was incomplete.

Week 4 slides

https://rcpt.yousendit.com/701217758/6d9bd377fcb4542936b95f5f7bbdd86b

Sample of assignment:

https://rcpt.yousendit.com/701219820/04c5dccdb25196b481de4bac198a52f5

Marketing research, is it necessary?

2009-05-18T16:44:00.000-07:00

In many cases that we have seen or read, business investors are fond of investing into a venture without any research work or analysis prior to their venture. An entrepreneur who has done research or analysis does not include a good marketing research or marketing analysis which could be turn into a good marketing plan.

Marketing research or marketing analysis is a very crucial element in business. The component such as PEST analysis, Competitors pressures, Market competition are among the important analysis to be made prior to the real investment. In my research work with those successful companies, I realized that they even took an effort of testing the sensitivity test for each market that they have segmented. Hence their result on each market would be more accurate.

In my research too, I realize that mistakes were done where companies had a detail research and analysis on operation but leaving marketing not attended effectively. These happened more in production companies or some medium size business, resulting being in a business that they themselves are not clear in which market are they competing, what are the competitive pressure they are facing or even what type of environmental they would be. If competitive market analysis is not done, later it could contribute to a large grey area in product positioning despite a competitive pressure analysis is being made.

On a summary, I would say that marketing research and marketing analysis must be done properly before and in an ongoing business.

Link to file:

https://rcpt.yousendit.com/689443026/1ab041ce7bae0c1e843de4031416f516

Points to Ponder – Marketing

2009-04-18T06:28:00.000-07:00

Internet is found to be a very powerful medium for knowledge sharing. This was proven in some countries like US (during Obama’s Campaign) or even Malaysia in the 12th General Election. How does internet contribute to marketing? What happen to those rural areas of the third world countries where internet facilities are far much backward? What happen if the impact is negative or the information given is false information?

Sample of assignment

https://rcpt.yousendit.com/691666664/7f0e24409e2cf75ebb999739fef40806

Excel format

https://rcpt.yousendit.com/691666768/ae3ca6640ab05cd0cc0f6842057117ab

The Ethics

2009-04-06T20:10:00.000-07:00

Recently, the public of Malaysia has been tampered with news involving Ethics. These ranges from politics, business related and even consumer issues. Scholars, academicians, journalist and even fellow citizens have been curious where the ethics of Malaysian gone.

In politics, came out news explaining why a candidate for a party is found guilty of money politics yet only being warned and the other one found guilty for the offence and has been sentenced for the immoral act. Debates filled all over places and explanation spurred by relevant parties explaining the reason of ‘found guilty but warned’ and ‘found guilty; sentenced’.

I still remember that “law has to be taken as complete.” Here should not be any in moral act behind the decision made. Promises given to the public that a clean party election will be the doctrine of the party and later the outcome is almost saddened every walking citizens.

According to Kant; ethic theorist, “Something that wishes to be made a rule must be accepted completely by the community and not the hypothesis.” Kant then continues that, “To form universalism, a law must be fixed as complete and not hypothesis.”

While these debates were ongoing in the main media stream, I went for a leave during a short public holiday at Cherating by the virtue escaping from all the national issues. My destination was the 'beach of beauty' in East Malaysia where Club Med had their club present. The decision was made after I have read the advertisement published in the web.

I spend two days at a nice, quite and reputable resort, not far from Club Med. It is fantastic, with the marvelous food presented to me by the people of Cherating and the beautiful sandy beach. Every day I spent at the beach, reading books, bathing with my children and we took morning stroll early of each day.

On the early morning of the last day, I walk by the beach until, i reached the river outlet to the sea – ‘Muara Sungai’ which is a few hundred meters from the resort. To my surprise, the beauty of the nearby beach has been damaged by erosions. I am quite sure that this might not be the act human being such as development or any immoral activities of any business organizations. However the question that ringers my mind is why none of the business organization whom has been making so much money from their beach resorts and having a continuous flow of visitors from Malaysia and abroad, take an effort to contribute for environment management; the social environment responsibility in a specific words. Not only that, they are not treating their customers well by allowing their customer facing such an eroding beach until the happiness of being at the beach turns to adventures and scary.

I still believe that there is a strong relation between business and ecology. There is also strong link between moral act and politics. I could feel that all this has been declining or never being looked upon seriously by fellow Malaysian and especially by many profitable business organizations. It is so much different from Australia that I have been for sometimes before which high social responsibilities awareness.

Assignmt Qtn:

https://www.yousendit.com/download/Z01OTXRaQk50Nit4dnc9PQ

Negotiations, do we really need to have the knowledge?

2009-03-01T19:55:00.000-08:00

Negotiation is part of life and with or without notice we undergo negotiations almost everyday. It might be a simple one or a complex one. In many cases it is unprofessionally done and some times it is a very successful one but incidentally happens or good luck. Not knowing what the flow process is, what are the mistakes commonly done by negotiators and what are the tactics, the person might undergo for a negotiation.

A formal study or learning on negotiations is necessary for any body involves in business, sales, marketing, politics, or any services just because it is not only to reduce the failure in negotiations but to make it success negotiations.

I have seen a few case study where negotiations fails not because the preparation was not good, but the party fails to recognize the ‘signal’ made by another party during negotiations and hence the negotiations ends up with a failure or unclosed.

There are some cases where preparation was not done by one party and hence the ‘zone of agreement’ became a very tiring and lengthy session. Later both parties were not able to handle rejections since both parties is not able to apply ‘explore’ strategy. It then ends up with failure.

In ensuring negotiations are in order and successful, that is reaching a win-win situation, it is important to acquire basic knowledge of negotiations. The knowledge of 3 process negotiations or the complex negotiation process that is the 8 process negotiations are the handy tools for negotiators. The additional knowledge such as the mistakes, tactics, changing minds, explore quadrant are all crucial. On the other hand the negotiator must at all time adhere to them selves to the ‘4 principles’ of negotiations. This is to ensuring the negotiations runs smooth despite it is a collaborative or competitive negotiations.

https://www.yousendit.com/download/U0d5ak93TXY1bmlGa1E9PQ

YIELD METRICS, AN IMPROVEMENTS TOOL.

2009-02-01T20:08:00.000-08:00

In my earlier article on Yield Value, I have explained the importance of Yield Value and a short case study was also discussed. Here we shall again discuss in detail on the transition from traditional yield value calculation to the current yield value calculation which is named as ‘Yield Metrics’.

In modern management approaches towards business processes has changed. The traditional approach of literatures report writing has been obsolete and replaced with numerical reports with explanation. The current report writing has again replaced by the numerical + explanation report by statistical analysis reports.

The idea of having this statistical report is to be precise and simple in the process of monitoring and control while maintaining the efficiency of the processes. Control charts such as Pareto chart, Run chart, Flow charts etc, has been the used as control tools for a single process or the whole process in the value chain.

In traditional management; out put is always been calculated and ratio between each production out put is calculated. Later transition in calculation came in where input/output ratio is calculated as the Yield Value. Currently this calculation has again being replaced by Yield Metrics of which the rework and scrap is also being calculated. This Yield Metrics measures a precise efficiency rate where variation and its cause were analyzed.

It is important to note that variation is the deviation from expectation, and this would determine the real output from any inputs. It is much related to the efficiency of the organization which directly determines the revenue and profit margin for any business organization

Measuring yield

According to Craig Gygi, Neil and Bruce, The traditional calculation of yield is often employed on the last, final inspection steps of a process; to measure the effectiveness of the overall process (Craig, Neil, Bruce 2005). He then continues by sayings that, the traditional result of calculating yield are misleading. Below differentiate between traditional yield calculation and the current yield calculation which is called ‘Yield Metrics’.

Let’s take an example for a credit department in a bank where loan application form received as the input value. The input value i.e. forms received are 352, and only 347 are the output (approved) where 103 is the rework. From 103, only 5 is a total rejection.

Traditional Yield:

Y= out /in = in – scrap/in

Hence in traditional calculation would be:

Y= 347 /352= 98.6%

The effectiveness is deemed to be good that is 98.6% and defect rate is only 1.4%.
However when we use the Yield Metrics calculation that is First Time Yield (FTY) the outcome would be different.

First Time Yield (FTY):

FTY= in – rework /in

The calculation would be:

FTY= 249/352= 70.75%

Here we realize that the effective rate of the process is only 70.75% and the defective rate is 29.9 % or 30%. The organization should now look immediately on the 30% defect on the process instead of seating comfortable with the 70.7% effective rate. Only then the organization is on the move toward continuous improvement and competitive.

From this single overall process, the organization should break this single big process into smaller process or value chain process. Later evaluation at every value chain components must be implemented, i.e. it’s FTY. Each FTY shall be calculated in total value, where it could be presented by RTY or Rolled Throughput yield. It is important to have in mind that in doing analysis in process evaluation, value chain must be the most effective approach.

Rolled throughput Yield (RTY):

RTY = FTYn x FTYn x FTYn x FTYn x FTYn

Where n is the number of breakdown process (n could be 1, 2, 3; according to number of process). As for the above example, lets take the process are being subdivided into 5 sections and
FTY1 = 0.75 FTY2= 0.95 FTY3= 0.85 FTY4= 0.95 and FTY5= 0.90

Therefore

RTY= 0.518 or 51.8%

It the realized that the effective rate or efficiency of the process is ONLY 51.8 % and the defective rate is 48.2% which turn to be very high.

Improving Processes

To immediately improve the overall performance, select which process of the lowest FTY, focus and improve for example using DMAIC. Then turn to the next lowest and improve using the same approach. Use the control tool charts as the monitoring measures from time to time.

Effective way of Implementing TQM

2009-01-28T16:00:00.000-08:00

In this challenging world, people understood the words of Quality, Quality Management and even Total Quality Management (TQM). However not many understood what does it meant in the perspective of Business Management or even work improvements. It is actually important even to non-profitable organizations such NGOs and not neglecting to GLC or Government Link Organizations.

Discussing on quality, the application of it could be implemented in multi-international corporations, multi-national corporations, medium companies, small companies, Government Link Companies, Non-profitable companies, associations, society, and even family level and individual level.

Talks and forums have been held every where on TQM and some even went for a short course sent by their organizations. Some learn in some degrees or post graduate but how many has learnt in the right flow with concept and able to apply it in their daily life. It is found that some has really learned it, but has not reach the level of integrated it with statistical studies and statistical application. Only if we have learned TQM, that is the concept, theories, process, process tools such as PDSA (Plan Do Survey Act) or the DMAIC (Define Measure Analyze Improve Control), and then we must integrate with the statistical measurement. After developing all these measurement, the last part is to transfer it to the acceptable or manageable control tools. There a numbers of it but most scholars say it is 7 best control tools i.e. Pareto Chart, Histogram, Process Flow Diagram (Fish Bone), Run Chart etc. It is found that one of the most popular is Pareto Chart, Run Chart and Process Flow Chart. However in certain industries some would use different control tools accordingly.

One of the most important to analyze the efficiency of the business process using statistical analysis is a comparative analysis between Traditional Yield (Y) and Yield Metrics that is First Time Yield (FTY) for a main process and Rolled Through put Yield (RTY) for small sub processes.

It is found that that the value of FTY is lesser than Traditional Yield and it resembles a more accurate Yield Value calculation. If the rate of FTY is questionable, then the whole process flow must be measured. The RTY then should be used to measure at each process where RTY = FTY1 x FTY2 x FTY3 … depending on the number of the process.

Only integrating TQM with statistical evaluation would be beneficial to all users of TQM or to all TQM implementers.

As a case study, in 2002 one medium size motorcycle assembly plant in Queensland, has promoted that they are one of the most efficient assembly plant in Australia, at the rate of 98.6% out put or yield value. The yield value was calculated based on the production to assemble 352 motorcycles per months and completed for sales is 347 units. However, 103 units are to be rework after QAQC and leaving only 5 units as scraps.
In 2006, after the Production Manager retired, they have engaged one new production manager graduated form USC to be the Production Manager. She found out that after using Yield Metrics, the production rate or efficiency is only 70.75%. She then later found out after subdividing all the production process into sub-production processes into 5 groups, the Yield metrics turn to be only 51.8%.

After presenting to the Managing Director (MD), the MD questioned her findings and she managed to explain the findings and the integration of statistical analysis into her findings. She has also proposed to the MD the new way of using monitoring tools for the production control as one of the most effective way in implementing control system. The proposed control tools are run chart and Pareto Chart. The Managing Director was happy and requests her to implement TQM for improvements. Later after a year she is then promoted to Plant Manager, taking responsibility in procurements, production/assembly, Sand Blasting and Painting, QAQC, Inventory, and Distribution to outlets.

It has proven that TQM is a very effective way in improving an organization out put and for that reason in modern strategic implementation control and monitoring, TQM has been one of the crucial components besides six-sigma. Some scholars wrote that integration of six-sigma into TQM has proven a higher output standard of improvements

http://www.filesend.net/download.php?f=812aad33d8613d1ba97065dfd7206934.

Is Strategic Management a Process, idea or only Intention?

2008-12-01T21:17:00.000-08:00

Many people claim that they are implementing strategic management in their organization. Some might speak that they are having ideas in implementing strategic management to their organization; unfortunately it dies before taking off. It is very crucial to understand why it happened. Why the idea remains as a good intention and never being implemented. Some implemented the strategic management but it diminishes after the take off.

I brought you here a case study that we all could share, analyze and make a study on the reason why this particular company had failed in their business despite having good banking facilities and some excellent valued resources.

In 2005, I came across a company of a friend called RCW Sdn Bhd. It is a company having an office in Petaling Jaya and later having its operation office in Padang, Sumatera Barat. The owner is a Pure Science graduate from US and having a few deep sea fishing permits which he chartered to a Thailand entrepreneur. On monthly basis the company had its revenues from this activity. From here the company applied and were granted then being grant by the government additional 5 Tuna Fishing permits.

Later the MD hired a Japanese to undertake the loan proposal to a bank in Kuala Lumpur and it failed despite the fact that the Japanese are well known for their experience in Tuna Fishing. After several months of failures, the MD later engaged a full time consultant to resolve this particular issue. The consultant found out that this Japanese expertise is in trading and not in the banking line or tuna fishing.

With a small office and two other personnel; personal assistant to the MD and a clerk, the consultant; Matt made his plan and strategize the situation. Despite of being requested to work alone he did the analysis required on the situation and on RCW. Capitalizing on the strength against the weakness, and opportunity against the threat, Matt manage to have the facility of RM 10 million for RCW to acquire the company 5 tuna fishing vessels within 4 months.

In the initial stage, the MD of RCW had assigned Matt the consultant, to undertake the task to acquire the facility in purchasing the vessels and later to undertake the management of the operation by the Indonesian Tuna Operator who would manage the operations of Tuna fishing of RCW.

Being a high self confident person that he could manage and having the idea of strategic management, cost saving, the MD decides that the management of the Indonesian Tuna Fishing Operator could be done by himself while assisted by a young supervisor, and ex-port field executive.

The MD started his work immediately while requesting Matt, the consultant to focus on acquiring next facility to purchase 5 additional vessels at the value of RM30million ringgit.

Matt does his work well for 7 months while the MD assisted by his supervisor manages the Indonesian Tuna Fishing operator and RCW manage to have the additional facilities of RM25 million subject to good management of current tuna fishing. The reason is that the company has no track record but the bank made a statement that the presentation done by Matt was too good to be rejected and furthermore tuna fishing is a high potential growth industry.

On the 8th month RCW has not being able to perform, the company is declining in its income, the loan repayment of the RM 10 million has not been paid regularly and the vessel are docking at fishing jetty in Padang.

The MD again request Matt to undertake the study on what are the probable cause to the poor situation. Matt had his two weeks study on only three areas:
1. Financial
2. Operation Procedures
3. Legal Documentation

Matt visited Padang, study the whole business process, financial process and audit all the legal documentations. He then found out that:

a. From 60% of the fishing time, most vessels are docking at the port
b. The fish sales are irregular and the price are not monitored
c. The project Profit & loss and cash flow are not being updated and studies or managed
d. Under utilized of manpower resources
e. Mismanage of fund by the MD himself
f. Supply to vessels such as diesel, food, water are not properly manage
g.The debtors and creditors increases more then 30% for every business quarters.

The company later was unable to have a draw down for the RM25million due to poor performance of the 5 vessel's operation. On the other hand RCW turn to be on the NPL list. Matt again been requested to be the consultant to address the new issues in solving the damages done by the company instead of being a consultant to develop RCW.

http://www.filesend.net/download.php?f=05499e816bd8010acba2f2b3b3061c20.

STRATEGIC MANAGEMENT, the flow process

2008-11-11T21:43:00.000-08:00

Strategic Management is a simple two grand words to mention but a complex practice to adopt. In many companies, the CEO or the key management has always says that “we have to think strategically”. Despite of saying, preaching the whole organization in adopting Strategic Management practice, in reality they are not having one.

Strategic Management is not only a mind thinking process, imagine and implement. It has to start with awareness of the need and importance of Strategic Management. Without awareness, the intended process of Strategic Management that they wish to implement will be a short life span dreams and later wash off in a short period off time.

The second main steps are developing the vision and followed by mission statement. These are two different schools of thought but having a similar focal point to organization. It is proposed to those organization wish to adopt Strategic Management and strategic implementation would first produce a good vision and mission statement.

Having moved from there, the analysis would come in i.e. the external and internal analysis. Internal analysis is the evaluation of the internal resources such as manpower, equipments and financial capabilities. The core competencies, present strategy, also need to be evaluated and what is the value contributed to the company in terms of tangible and intangible rewards.

The external analysis is another crucial factor to be analyzed since the firms or organizations are very much linked with the external environment. Tools such as Porters 5 forces, Strategic Group mapping and KSF are important to assist any strategic planner or managers to adopt the Strategic Management.

After evaluating the external and internal factors, the competitive analysis on the macro environment and the market share analysis is the important sequence to be followed in ensuring the process is intact. Many scholars proposed BCG Matrix, GE Business Screen Matrix, Mc Kinsey 7S framework are good tools for this section of the process. Other scholars would not make the competitive analysis by not using Ansoff matrix but all this depend on the practitioner.

In many cases organization need to go beyond the competitive strategy at business level only. In this modern business world, they would proceed to corporate level strategy in being competitive that is merger, acquisition, strategic alliances or even outsourcing.

Being a practitioner of strategic management, the organization should not only ensure all the required analysis done but they need to build their resources strength and organizational capabilities. This will enhance the organization in meeting their challenges as what found in their earlier analysis. Besides having a good preparation for the execution of the plan or strategic implementation later the organization need to develop the monitoring and control for correction purpose.

According to Arthur A. Thomson Jr, A.J Strickland III and John E. Gamble, there are 10 commandments for crafting successful business strategies.

1. Always put top priority on crafting and executing strategic moves that enhance a firm’s competitive position for long-term and that serve to establish it as an industry leader.

2. Be prompt in adapting and responding to changing market condition, unmet customer needs and buyer wishes.

3. Invest in creating sustainable competitive advantages.

4. Avoid strategies capable of succeeding only in best circumstances.

5. Don’t underestimate the reaction and commitment of rival firms.

6. Consider that attacking competitive weakness is usually profitable than attacking competitive strength.

7. Be judicious in cutting prices without an established cost advantage.

8. Employ bold strategic moves in pursuing differentiation strategies

9. Do not get “stuck back in the pack”.

10. Be aware that aggressive strategies moves to wrest crucial market share away from rivals often provoke aggressive retaliation.

Link to download: http://sendbigfile.net/download.php?sid=bJmruoG7

A Satisfied Customer – Will they remain?

2008-09-01T22:37:00.000-07:00

Questions has been asked to many people who are involved in business either who owns the business or the person who runs for someone.

The question is “Will a satisfied customer remains?” or “Will a satisfied customer be a loyal customer?” The answer is MIGHT NOT. But why this might happen?

Actually there is a difference between a satisfied customer on your product and your loyal customer. A customer might be satisfied with your product but if we have no good relationship develop between the seller and the customer, the seller one day shall loose the customer who might be in relation to the competitors.

This involves 2 factors:
1. The relationship between the seller and the customer.
2. The seller’s business model – are they adopting the latest business model that is customer oriented instead of product oriented.

A clear case study below would make is very clear and if the attached question is answered, then you would be clear on the issues.

In a small town of Eumundi, Queensland, there is a small Jewelry Shop called Eumundi Jewel. The owner has been traditionally selling the hand made jewelry and the customers have been telling they are happy with the product and services. However in 2007 jewelry shops, Hejja Jewels opens at a few shop lots distance from Eumundi Jewel. The customers are satisfied with the product too and the price seems to be at time slightly cheaper then Eumundi Jewel.

In 2008 early, a survey being made and data found that those customers whose has been to Eumundi Town would visit both Jewelry shops but tend to be loyal to the Eumundi Jewel instead of Hejja Jewels.

It is found that despite both shops had produce a satisfactory product to their entire customer but 2 factors had made Eumundi customers to be loyal to Eumundi Jewel.

Eumundi Jewel collect data from all their customer and send gift on customer’s important dates such as birthday, anniversary and visits to the hospitals if any of the customer is admitted.
Eumundi Jewel also from time to time advice on any drop of gold price which leads to price discounts at their shop. This helps the customer to purchase product at lower price then in certain days of the year or months.
Eumundi Jewel also draws or designs the jewelry sets, ring, and bracelets, in meeting the customer request. Advices are given to customers not only design but also other cost consultancy and this is FOC.

Hejja Jewel fails to do this and hence their customer is not loyal.

Link to download: http://sendbigfile.net/download.php?sid=TpVGsvTj

YIELD VALUE – the indicator

2008-08-27T22:35:00.000-07:00

In most studies people has been made to understand that yield value is used for yield value per share, the bonus and dividend and yet this is all for the financial accounting purposes.

A friend of mine came and require an assistance to advice ‘why is his company making profits but it is too slow on the development’. On other word it is not expanding despite good business turnovers.

I then start asking questions and I realize that he is only looking at Profit and Loss account. Despite of seriously calculating and monitoring his P&L I told him to add a tool that is ‘Yield Value per kg’, since his business is Tuna Fishing Business.

I start guiding him how to use the “Kg Yield Value’ and it has been running good for the past months. It seems that most business are only using financial accounting to manage the company and forgotten the financial management section.

Hence the yield value, if we use it in the perspective of sales, marketing and operation even, we are able to determine the profitability of the business at the most sensitive level. This is very important and business owners or entrepreneur would be able to use it as an important indicator. As an example of my friend, he is selling his Tuna fish at USD 3.15 per kg and he says he had a profit of 18%. When I calculated with yield value per kg., he is actually incurring a loss of USD 2.8 per kg. Can you just imagine how much is the variance from his calculation and yield value per kg calculation?

This yield value/n is very important as a tool and it could be used for any business but we have to understand the concept of it before using this particular tool.

Selling Principles - Assignment

2008-08-25T23:57:00.000-07:00

Joe’s Waterhole Pte. Ltd is a medium size kitchenware stores in Eumundi, Queensland. It was established by Joe Waterhole in 1819 and now his grand son with his wife is the owner and the shareholder of this company. Having a turnover of USD359, 000 a month and a profit margin between 15% - 20%, depending on the products. While the servicing Joe’s Waterhole also does servicing but all are referring to Kitchenware. The products ranging from kitchen basin, dinner tables, pipes, kitchen curtains, knife sets refrigerators and even the stoves. While the services provided are kitchen maintenance, renovation, upgrading and even plumbing for kitchen areas.

Since 2006 the sales has drop tremendously for almost 20% - 35% respectively. Both Joe Jr. and his wife decided to engage a new Sales Manager to handle the 10 staff of which 6 are sales person and 4 is the maintenance person. Julia, a fresh graduate in Sales and Marketing has been engaged and being entrusts to resolve the sales decline of 2006 and 2007 phenomena.

Soon after she had her position, she then started by understanding the sales, operation and the culture of the organizations. Soon she found that the company fails in most of the tender bid or even quotations bid in supply all kitchen wares to restaurants, university hostel nearby and resorts kitchen. It seems that the sales people did not understand the decision making process of the business market.

She had also distributed VOC forms (Voice of Customer) and found out the response that 55% complaints the sales person forgotten who is their customers. To Julia it is only a transactional selling which all stores do. 97.5% the customer are satisfied with the products but it seems that are also buying randomly at other 2 stores which is Joe’s Waterhole competitors.

The lists of customers are not available but randomly Julia is able to capture that there are at least the 50,000 family in this town who are modern farmers, government servant and business people at least drop in at least once in 2 months. She was thinking to resolve this issue too for business improvements.

If you are being appointed as the New Sales & Marketing Manager instead of Julia, what are the main 3 problems Joe’s Waterhole is facing with regards to selling principles? Describe each of them and what is the theory that you have learned with regards to the problems of Joe’s Waterhole? Put up a proposal in resolving these issues.

Selling Principles

2008-08-25T23:52:00.000-07:00

Buying Assets – why it fails?

2008-08-10T20:19:00.000-07:00

I have been purchasing several appreciative and depreciative assets for my company and I have never let my partner to undertake it. Until now it has been very successful until most of the time we do not have to pay the 10% or 20% deposits prior to the approval of our financial facility from the bank. This includes the vessels that we had, the stocks that we own and a few others.

It has been quite sometimes for me to undertake these tasks until last week I then decided to have a trial by requesting my friend/partner to undertake the final negotiation with the land owner on the price of the land and payments method with regard to a land that we intend to purchase in Terengganu.

The land is RM1.1 million, 9 acres of Palm Oil Plantation and it is along the road side. The re is an income contributed by the Palm Oil Plant and I personally realize that this is a golden opportunity and always believe in leveraging theory (the bank).There is only 1 final approval left from the land owner; lowering the price to RM700 – RM900 thousand.

In my early discussion, the land owner has agreed for discounts and payment is after the banking approval/drawdown. At a confident level of negotiations I have hand over to my partner to further negotiate since I have done 85% of the job and I was tight with banking negotiations too.

I reminded him that this is an asset buying BUT remember this is also selling involve and Principles of Selling MUST not being forgotten.

My friend call him end of last week and the answers came back the owner refuse to sell the land and no discounts. I was surprised and asked my friend why? What has gone wrong? Despite of looking in buying the land, my friend has forgotten also the principle of selling. He told me that he told the land owner that the price that we could purchase is only RM700 thousand and the payment must be after the drawdown from the bank.

What is actually he had probably misses in the principle of selling during the discussion despite we are buying the land. The owner indeed knew that we are buying his land for investment – to make an income. He was agreeing with me for the whole one month and why does it fail with my friend?

I strongly feel that my friend doesn’t know the selling part – selling of IDEAS. He only approaches as a buyer and the scenario is totally different. That is why he fails and I need to renegotiate again myself.

What do you think about this in your perspective with regards to selling principles?

What type of selling that he has to do? Is it the 'new' consultative selling or just relationship selling?

ASSETS – is it right asset that you have invested from your saving?

2008-08-08T01:42:00.000-07:00

In most studies people has been made to understand that asset is important to us. In accounting assets are classified under fixed assets and current assets. Below are listed some sample of assets as in principles of accounting:

Fixed assets
- Buildings
- Land
- Cars
- Equipments

Current Assets
- Fixed Deposits
- Shares
- Bonds

In business, debtors are also included under current assets. However for fixed assets such as equipments and cars undergoes depreciations. After certain years the net book value of the assets is much lower than the purchased price.

This is different from assets such as fixed deposits, bonds, and the lucrative assets that is land. The price shows some appreciation from time to time and for the land the appreciations is much higher than the day of purchased. The house even would shows some immediate appreciation if it is an auction house. That goes to the land too.

So where to invest

In many of my lectures, a have advice the students that if investment are to be made, a careful understanding on the type of assets to be invested is very crucial. I have met friends, clients and people who has been asking me what assets to invest and would immediately put up an opinion to invest in appreciative assets.

Some people ask me, if they have money, what business they should be in. I told them, “If you have money, don’t do business. Only if you don’t have money, you start doing business.” All of them were stunt.

I have always advice that if we have money then invest, divest then invest. But the investment must be in appreciative assets. After a certain calculated appreciation or after meeting the target return (ROI) that we want we can divest the assets and prepare for another investment. In between enjoy your profits.

All of them thank me until now.

MOTIVATION – What does it means to the employees?

2008-07-03T01:51:00.000-07:00

I was having breakfast this morning at ‘Cawan’ in Bangsar. Is a favorite place for me to have a ‘roti bakar’ and ‘kopi kemaman’. While having breakfast, I remember my good time having breakfast in Gold Coast, Australia last year and suddenly my breakfast partner put a say, breaking the silence between us.

She was saying that she feel so happy to see the staff of ‘Cawan’ is friendly and energetic. I smiled and replied, “One of the most important matter to address in running an organization or business is motivating the people or the employees”. I then start to explain to her.

Motivation is important to ensure that the employees would deliver the best performance. According to Expectancy Theory:

“Employees will be motivated to exert a high level of effort when she or he believes that effort will lead to a good performance appraisal, which will lead to good organizational rewards such as the bonus, salary increase, promotion and that the rewards will satisfy the employees’ personal goals.”

However in most Malaysian organization, I personally found that, the motivation is not an important matter to look at. To the employer, they want to have the most from the employees but in return tend to forget what motivates the employees. Employees were asked or directed to undertake task or project without providing them proper Standard of Procedures and even guidance were continously absent. Instruction were mistakenly understood by employer that it is a guidance. The guidance approach is totally different from instructions. The outcome of these poor approaches will only lead to employees’ leaves the organization.

It is important why normally an employee leaves:

a. They are being seriously mismanaged
b. Demotivated due to nature of organization & poor leadership
c. Underperforming by either company itself or the employee him/herself
d. External pressure

So it is important to understand what is motivation, gudance and even good leadership if we want our business or organization to grow.

CORPORATE CULTURE, how to develop it

2008-06-17T02:18:00.000-07:00

Developing a new culture in an organization has turn to be a crucial task to any newly appointed CEO, Managers or leaders of organizations.

Question arises why? How?

Developing new blended culture in a must says one CEO from Australia. Actually culture is a liability when the shared values are not in agreement with those that will further the organization’s effectiveness.

A culture needs to be developed and it is not something that drops from the sky or heaven. The question is how to execute it.

2 main factors need to be present:
a. Strong leadership qualities
b. Knowledge on culture development

Culture is a set of key characteristic values in organization. There are 7 primary characteristics. They are:

1. Innovation and risk taking
The degree to which the employees are encouraged to be innovative and take risk

2. Attention to detail
The degree to which employees are expected to exhibit precision, analysis and attention to detail

3. Outcome orientation
The degree to which management focuses on results or outcomes rather than the techniques and processes used to achieved those out comes

4. People Orientation
The degree to which management decision take into consideration the effect of outcomes on people within the organization

5. Team Orientation
The degree to which people are aggressive and competitive rather that easygoing

6. Stability
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth

How to develop?

Socialization process is one of the best methods in ensuring to develop a new culture.

Socialization Process
Pre-arrival
Encounter
Metamorphosis

Outcomes
Productivity
Commitment
Turnover

Psychology of Consumer Behaviour

2008-06-17T00:52:00.000-07:00

What is it?
It is actually the study and understanding the psychology of the consumers and how the external and internal factors would contribute to the consumer decisions buying or purchasing behaviour.

An overview and the concept of the psychology of consumer behaviour

There are several factors that induces impact towards consumer decision making process in thepurchasing.
1. The External Factor:
This shall involve the environment where they are. The economic, law, social and culture. Many scholars says that the culture and social has a great impact on the psychological impact since the culture means the society and also the culture which the consumer was brought up or at leas have a daily, continuous daily interactions.
Beside that, the family, people they interact are classified under social and this list is also contributing as the important factors that induce impact to the consumer psychology in buying decision.
2. The product
This act as a stimuli. it is important to understand that stimuli could also result in inducing impact towards consumer buying behaviour. A well packed product which meets the consumer expectation, placement and distribution would be well chosen by the consumer.
Understanding the consumer expectation, psychology would tremendously help the product sales.
3. Salesperson
This is also an important stimuli. How the sales person approach would also act as the important factor in providing the impact towards consumer buying behaviour.
4. Consumer her/him/itself
This is the internal factor. The consumer her or himself is the most important in how they themselves decide in purchasing.
What is meant here, there are some factors related to them;
+ Cultural
+ Social
+ Economic
+ Psychology
All these internal factors of the consumer themselves would determine a lot on their buying behaviour.
How many type of consumer?

There are only 2 type:
1. The consumer market
2. The business market
When to use the knowledge of consumer buying behavior?
We should use in:
a. For research - provide questionnaires that would determine or answer the consumer buying
behaviour
b. The finding of the research should then be used in Business Plan or Marketing Plan.
It is important to remember that any planning, business or marketing plan, and even postulating strategy such as market penetration strategy would not be complete/accurate without research on consumer buying behaviour/psychology of consumer buying behaviour.
c. Analysing one's advertisement whether it is producing the right impact with the known consumer buying behaviour and decision making.