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Posts Tagged ‘overview’

Introduction

•            It is nearly impossible to find a business leader in the global marketplace who does not operate, or at the very least, is not exploring opportunities with or within emerging market countries. Even those entrepreneurs who like domestic markets experience competition from companies based in these regions. During the last 20 years, the global business world has gone through drastic but mostly positive changes. In the 1980s, international business was essentially an exclusive club of the 20 richest countries. This changed as dictatorships and command economies collapsed throughout the world. Countries that once prohibited foreign investment from operating on their soil and were isolated from international cooperation are now part of the global marketplace.

The Idea in a Nutshell

•            All strategists, analysts and executives try to comprehend and evaluate emerging market countries. This process is complicated by the pervasiveness of misleading statistics and studies.

•            An emerging market country can be defined as a society transitioning from a dictatorship to a free market-oriented economy, with increasing economic freedom, gradual integration within the global marketplace, an expanding middle class, improving standards of living and social stability and tolerance, as well as an increase in cooperation with multilateral institutions.

The Top Ten Things You Need to Know About Competing in Emerging Markets

1.Push to perfect the technology, improving calibre and captivating performance.

2.Consider merging with or acquiring another firm to acquire expertise and resources strengths.

3.Technology Try to capture any first-mover advantages by adopting it quickly; however, it can be pricey and it can swiftly move in surprising new direction.

4. Acquire or form alliances with companies that have related or complementary technological expertise.

5. Pursue new customer groups, new applications, and entry into new geographical areas.

6. Make it simple and cheap for first-time buyers to try the industry’s first-generation product.

7. Products becomes familiar to a wide portion of the market, shift the advertising emphasis from creating product awareness to create brand loyalty.

8. Use price cuts to attract the next layer of price-sensitive buyers into the market.

9.Form strategic alliances with key suppliers whenever effective supply chain management provides important access to specialized skills.

10. Strategic efforts to win the primeval race for growth and market-share leadership.

The Video Lounge

The term emerging markets is used by investment analysts to categorize countries that are in a transitional phase between developing countries that are just beginning to industrialize and countries that are fully developed. The main significance of the use of the term is that investments in emerging markets are assumed to carry greater risk and offer less country in investment. The term is often used interchangeably with developing markets, though this is somewhat inaccurate. In this Video he tells us about the changed in this century. Emerging markets are characterized by strong economic growth, resulting in an often-marked rise in GDP and disposable income. As a result, people in emerging countries are often healthy to purchase goods and services that they previously would not have been healthy to afford. This provides international companies with the opportunity to tap large, new customer bases, potentially driving significant growth for a number of companies and industries.

http://www.youtube.com/watch?v=3eUbxJAud5w

My Take

•Multilateral institutions can't ignore the need for clear definitions of emerging markets, as well as of developing and underdeveloped countries. It is important not only for the global business community but also for the poorest people and countries, which need special attention from political and business leaders of the world.

References

Michael Pettis, The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (2001)

http://en.wikipedia.org/wiki/Emerging_markets

http://www.forbes.com/2010/04/22/women-talent-workplace-china-india-brazil-forbes-woman-emerging-markets.html

http://www.forbes.com/emergingmarkets/.

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Contact Info: To contact the author of “Top Ten Management on Competing in emerging markets,” please email Gerardo A Trejo at gerardo.trejo@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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Introduction

Competing in emerging markets related to nations or specific industries.  How well a company or business competes in a market will determine its rise or fall.

The Idea in a Nutshell

Emerging marketsare nations with social or business activity in the process of rapid growth and industrialization.  This day there are 28 emerging markets in the world.  China and India are considered the two largest.  In the 1970s, “less economically developed countries” (LEDCs) was the common term for markets that were less “developed” than the developed countries such as the United States, Western Europe and Japan. These markets were supposed to wage greater potential for profit, but also more risk from various factors. This term was felt by some to be not positive enough so the emerging market adjudge was born.

The Top Ten Things You Need to Know About Competing in Emerging Markets

1.            When a market is in its primeval stages there is a lot of speculation about its, functionality, how fast it will grow and how huge it will get.  There is a lot of guesswork in how rapidly buyers will be attracted and how much they will be willing to pay.

2.            In many cases, much of the technological know-how underlying the products of emerging industries is proprietary and closely guarded.  This makes patents and one-of-a-kind technical expertise key factors in securing competitive advantage.

3.            There can also be competing technological approaches, with much uncertainty over whether multiple technologies will end up competing alongside one another or whether one approach will finally win out because of lower cost or superior performance.

4.            Rivalry among firms centers apiece firm’s efforts to get the market to ratify its own strategic approach to technology, product design, marketing and distribution.  Such rivalry can result in wide differences in product calibre and performance from brand to brand.

5.            In emerging markets, the task is to induce initial buy and to overcome customer concerns about product features, performance reliability and conflicting claims of rival firms.

6.            Many buyers anticipate first-generation products to be rapidly improved so they delay buy until technology and product design mature and second or third generation products appear on the market.

7.            Entry barriers tend to be low.  Massive companies with ample resources and competitive abilities are likely to enter if the industry has promise for explosive growth.

8.            Strong learning curve effects might be present, allowing significant price reductions as volume builds and costs fall.

9.            Firms might sometimes have trouble securing ample supplies of raw materials and components.

10.            Undercapitalized companies end up merging with competitors or being acquired by financially strong outsiders looking to invest in a growth market.

The Video Lounge

http://www.youtube.com/watch?v=EADMtfLZZcs

My Take

In order to be successful in any business venture, rather it be locally or nationally, is to find a competitive advantage that works.  Many businesses just take and intent along with an investment and jump in rather than do research to see what the ideal strategy to compete successfully would be.  The world is constantly changing and growing and so are the demands of people.  This will never change so it will always take some sort of competitive advantage for a business to be successful in any emerging markets.

References

Thompson, Jr., Arthur A., Strickland, III, A.J. & Gamble, John E. (2010) Crafting and Executing Strategy, The Quest for Competitive Advantage, Concepts and Cases 179-180.

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Contact Info: To contact the author of “Top Ten Management on Competing in Emerging Markets,” please email Farrah Laciura at flaciura@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                 

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Introduction

The strategic management process is a series of six steps designed to help organizations adapt their decisions based on the organization’s goals and its environments.  The key points one should know about strategic management are included in this overview.  Also included, are some of the several important factors to think about that could either enhance or inhibit the overall effectiveness of this process. There is a description of the steps and the significant affects on the organization if properly followed. 

The Idea in a Nutshell

Strategic management is focused on the long-term performance of an organization.  This process is a strategy managers use to ensure the decisions they are making line up with the goals that have been set for the entity.  In business there is always going to be a target to be reached and the first step of the strategic management process is to refer that mission.  After identifying the goals of the company an external analysis and internal analysis need be conducted in order to distinguish the company’s standing.  The fourth step is to formulate strategies to propel the enterprise in the intended direction and then management would implement the strategies developed. The final task is to evaluate the results reached by conducting this process because it’s vital to know how effective the chosen strategies were on the organizations performance.  If any adjustments would be needed then that could be determined after a thorough evaluation.

The Top Ten Things You Need to Know About the Strategic Management Process

There are apparent benefits of following the strategic management process which include the enhancement of long-run performance of an organization.  It serves as a means to adapt the operations of an entity to the changes in the market and the economy.  Integrating the separate functional segments of a business is more easily reached when strategy is implemented.

Like most models this six-step process is designed for more stable environments, so it doesn’t wage for major unexpected events therefore, the effectiveness of this as a forecasting device might be more ambiguous for organizations in highly dynamic markets. This is one of many approaches that can be used and might not be successful for all enterprises.

The need for this process to be carried out will not end. Even if implementing strategies developed grants management to reach their target outcomes, the context in which the company operates is constantly evolving and there will inevitably be a need to alter strategies, alter programs, or other restructuring.

A mission identifies the reasons for the company to operate, so it reflects to the employees and customers the company’s image. This is the first thing that needs to be done because you have to know where you want to go in order to get there. Some of the main things a mission statement needs to address are the key market in which it is doing business in, what it will be contributing to the market, and what sets it apart from its competitors.

The second and third steps of the strategic management process are external and internal analysis. These two steps combined make up what is known as SWOT analysis, which identifies the strengths, weaknesses, opportunities, and threats of the organization. This is important information to have when formulating the strategies for the entity.

Managing by objectives can be very useful for strategy making, considering the strategy is for long-term success.   Management by objectives is a way for managers and non-managerial employees to concur on the objectives of the organization and this leads to a superior understanding of what the organization is trying to accomplish. Setting concurred upon objectives to be reached can wage an avenue to have the mission be performed more accurately by employees and managers alike.

Implementation is the expression of the strategy through the organization’s activities and it involves making environmental factors a priority to the organization’s structure. Implantation is carried out through policies being made, technologies being adapted to match competitors, changing the incentive structure of the company, budgets, or many other things, but it involves changing things from how they are to how they need to be.

There are many different types of organizational strategies that are all based on the goals to be achieved.  Some are targeted to expand the company or increases the stability of its operations others are focused on combining operations or offsetting the weaknesses of the organization. The main thing about strategic management is how well it advances over its current competitors or potential competitors.

Evaluating the strategic management process is necessary to determine whether the changes prefabricated were effective enough in terms of the mission, it helps to see where you are. Evaluations need to be performed continuously to keep up with the changes in the environments and usually they are done quarterly or yearly. Managers might have to change things to make progress toward their goals or their findings might reveal that they have developed an effective strategy and their only concern would be to maintain the execution of it.

It’s a drawback to the process that the business setting is constantly changing and adjustments always have to be made. Depending on the dynamics of the surroundings one change can lead to a change in the entire strategy.

The Video Lounge

My Take

I think that it is relevant for companies to develop strategies with regards to their environments, strengths, threats, and other factors because of the way things change so rapidly.  This process affects each member of an organization and in turn is affected by each member of the organization. It all boils down to implementation of the strategy because no matter how wonderful the plans for change might be, without proper execution there would be no valid indication of how well it worked.  Managers need to grant for supervision or incentives for employees and hire individuals based on their capacity to achieve organizational goals. Robert Kaplan and David P. Norton asked “Why is there such a continual gap between ambition and performance?” and their answer to that question is “The gap arises, we believe, from a disconnect in most companies between strategy formulation and strategy execution…”

You can draw a map to get you to where you want to go but unless you follow it you won’t get there, but if you do oppose the route you need to take you’ll surely meet your destination.

References

(2002). The strategic management process. Retrieved from http://www.netmba.com/site/about/.

Coulter, Mary, and Stephen P. Robbins. Management. 10th. Upper Saddle River, New Jersey: Pearson, 2009.

Lagace, Martha.  (2006). The office of strategy management. Retrieved from Harvard Business School Working Knowledge Web site:  http://hbswk.hbs.edu/item/5269.html.

Contact Information

To contact the author, please email Megan Remy Megan.Remy@selu.edu.

BIOGRAPHY

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of his student’s publications regarding management concepts (http://toptenmanagement.blogspot.com/), book reviews (http://wyld-about-books.blogspot.com/) and international foods (http://wyld-about-food.blogspot.com/).   

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Introduction

One of the fastest growing trends in business this day is the increasing number of Strategic alliances. An alliance is a business-to-business conjunction with alliances establishing a business network.  An alliance success depends on the creatively of joining different ideas.  Two or more business joining  together for a set period of time. In a formal relationship were you combine efforts in projects were the goal is to minimize risks while maximizing your leverage and profit. Usually  business are not in a direct competition,  but they have similar products or services that are directed toward the same target audience.

The Idea in a Nutshell

A strategic alliance is a formal arrangement between two or more resources to achieve a common neutral that have to meet critical needs while they remain independent. These strategic alliances imply the sharing of products, services and processes.  The agreement between businesses can take a number of ways in gaining and becoming superior over their competitors.  Depending on the neutral of apiece company or their structure they take various configurations along their arrangement in what type of strategic alliance they are forming. The types of Strategic alliances are:

A joint venture is an agreement by two or more celebrations form a single system toward a project.  They share the equity of the business revenue, expenses and profits.  An example of a joint venture is an agreement were two firms share a booth in trade show.

Equity Alliance is where you concur what percentage of the venture apiece company is going to owned. It can be 50% -50% or 40% -60%.

Non- equity Alliance is an alliance were two firms develop construal relationship to share some of their resources an abilities to create a competitive advantage.

Outsourcing grants the companies reduce costs and makes the goods and service have a low cost.

Technology Licensing is an arrangement were trademarks, intellectual property and trade secrets are licensed to a foreign company. This helps the company have their products in foreign markets with a low cost.

Franchising is set fees were the companies concur to ongoing payments so the process is financially risk-free for the company.

The Top Ten Things You Need to Know About Strategic Alliance.

Creating a strategic alliance would help you offer your customer a great     variety of products and services. This will add value to the organizations capability to serve their customers.

2.             You will have a larger number of “Strategic Thinking” people who will help both businesses come up with a profitable business idea. Daily reporting is important between firms so apiece alliance know step by step what they agreed.

3.            The number of income will increase because you’re combining with other business.  So your company save money and time.  It’s really important to have constants discussion between both parties.

4.            Forming a strategic alliance will help you share the cost between businesses. This alliance will help increase the budget for marketing and advertising budget. 

5.            The objectives of the alliances and abilities have to be accomplished.

6.            The opportunities to expand your business rapidly will help you develop  new products in a faster and larger work force.

7.            Deciding the type of strategic alliance. Decide if you are using joint venture, non-equity or equity. Whatever outcome is defined the projects needs to be continually and tested to make sure it works in the real world.

8.            Your company will acquire more skilled workers working with the same mission and objectives. This will design a firm were it becomes more progressive in how the workers think in general and makes their outputs as an alliance.

9.            The ground rules between both teams and organizations are essential. You have to focus on the agreement, timeliness and resources needed to Perform before the deadline.

10.            It’s important that both celebrations believe that their something that can be creative by both firms working together. Faith  is really important because if people doubt of the project will not have good outputs.

The Video Lounge

http://www.videosurf.com/video/what-is-a-strategic-alliance-in-networking-by-donna-messer-1221262464?vlt=kosmix

http://espanol.video.yahoo.com/watch/3445931

http://www.youtube.com/watch?v=JYpQJRlUuKA

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My Take

Strategic alliances have an impact in business and consumers. Independently firms never have all the pieces of a puzzle in the direction they want to go in, organizations this day have found that Strategic alliances are that missing puzzle that gives growth and value to the firm.  This strategy is study partnership were involves two or more companies that come together for a set time frame. These companies are not in a direct competition. They share the same target market and use the same channel of distribution and brand reputation.

References

http://www.helium.com/items/72713-tips-for-developing-strategic-alliances

http://strategicalliancesltd.com/

http://www.smallbusinessnotes.com/operating/leadership/strategicalliances.html

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Contact Info: To contact the author of “Top Ten Management on Strategic Alliances,” please email Carmen M. Orellana at carmen.orellana@selu.edu.

Biography

David C. Wyld (dwyld.kwu@gmail.com) is the Robert Maurin Professor of Management at Southeastern Louisiana University in Hammond, Louisiana. He is a management consultant, researcher/writer, and executive educator. His blog, Wyld About Business, can be viewed at http://wyld-business.blogspot.com/. He also serves as the Director of the Reverse Auction Research Center (http://reverseauctionresearch.blogspot.com/), a hub of research and news in the expanding world of competitive bidding. Dr. Wyld also maintains compilations of works he has helped his students to turn into editorially-reviewed publications at the following sites:

Management Concepts (http://toptenmanagement.blogspot.com/)

Book Reviews (http://wyld-about-books.blogspot.com/) and

Travel and International Foods (http://wyld-about-food.blogspot.com/).                

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Finance is a generally applied term for more than a couple of things. The term finance applies to the commercial activity of providing funds and capital; also it is that branch of economics that studies the management of money and other assets. If one were to round up the different definitions into one, finance can be defined as the management of funds and capitals required by a business activity.

Management of Finance
Management of finance has developed into a specialized branch within management since long ago. Managing finance involves dealing with optimizing allocation of funds to various activities either by borrowing or by mobilizing from internal resources. The word optimizing in finance might strike an odd note but it means taking intelligently structured steps at minimizing the cost of financing while simultaneously attempting to maximize the profits out of the employed finance.

Finance Governs Most of the Activities
A poor finance management will immediately show as deteriorating conditions in the procurement, production and income as it touches all spheres of business activities. For this reason, a finance manager is expected to be very judicious in either mobilizing funds or allocating for expenses. Lee Iacocca, the most revered management guru, calls finance managers as ‘bean counters’ who look at the expense part with rather pessimistic view. Unlike the income managers, who would like to invest in future by product development, finance managers are rather skeptic of financing a project whose benefits lie in the future. Finance management governs the future outcome too.

Finance in Small Business
For most small business owners there is not a clear distinction between individualized finance and business finance often leading to cross utility of funds. Lenders, either future or present, don’t look at this with a soft corner. But resisting the tendency for such utilities might damp ones zeal temporarily but sure brings the much needed discipline which is the foundation of all future progresses.

Financing a business can often be dangerous if not approached with caution. Even though bad management is commonly given as the reason businesses fail, inadequate or ill-timed financing comes a very close second. Whether you’re starting a business or expanding one, adequate ready capital is essential. But it is not enough to simply have adequate financing; knowledge and planning are required to manage it well. These qualities ensure that you will refrain common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money.

Financing
Small businesses can finance their needs from either internal resources, friends or from banks and private lenders. The less you finance from outside lenders the more it ignites the profitability. This is why, perhaps, Bob Hope famously said, “A bank is a place that will lend you money if you can establish that you don’t need it. “