December 31, 2017

MBA Core Management Knowledge - One Year Revision Schedule


The blog contains articles on all management subjects developed using the most popular book on the subject. You can read articles on the sybject of your choice or use the following schedule.


One Year MBA Knowledge Revision Plan

Revision Schedule


Current Month -  April  


January  - February  - March  - April  - May   -   June

July       - August     - September  - October  - November  - December


Subject Details of Each Month



January  (Principles of Management)
February (P.of M & Marketing Management from 23 Feb 2015 )

March (Mktg. Mgmt. & Operations Management from 17 March 2015)
April  (Supply Chain Management and Financial & Cost Accounting)

May  (Management Accounting & Organizational Behavior)
June (Innovation, Industrial Engineering and Economics)

July  (Economics, Engineering Economics, & Managerial Ethics)
August    (Statistics, Quality and Six Sigma, OR & BRM)

September (HRM, Mentoring, Training, Maintenance, Energy & Environment Management)  -  October  (Information Technology and Management Information Systems, Logistics - Warehousing and Transport)

November (Strategic Management & Financial Management)
December (Business Laws, Negotiation, Taxes and Government Relations)

Subject                                               Revision Period

Principles of Management                15 January   to   19 February

Marketing Management                    22 February to   16 March

Operations Management                   17 March     to    2 April

Supply Chain Management                 3 April       to  15 April

Financial & Cost Accounting            16 April       to  12 May




I am participating in April A to Z Blogging Challenge and I am writing on the theme Top Management Challenges.

Top Management Challenges.


Article 1: Awareness of Environment
http://nraomtr.blogspot.com/2017/04/awareness-of-environment.html




Updated 1 April 2017.  22 February 2017,  10 December 2015




August 17, 2017

Service to Customer: Follow Up After The Sale


Selling Skill - Service to Customer and Follow Up After The Sale


A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.

Service to Customer





A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.



Service will keep customers and increase sales. Use your company’s goods return policies judiciously to replace defective products with customers. Go back to the customer, check the product that you have sold and make sure that the customer is getting the expected services from it.


Become a customer benefit oriented salesman, your profits swell through your efforts to make the benefits of customers swell. Develop your reputation from providing benefit to customers. Provide service above and beyond the call of duty. Always schedule some time in your daily sales plan for delighting customers. Delight comes to a customer when you deliver something beyond expectations.

Part of Selling Process - 10 Steps


Updated 18 August 2017, 25 November 2011

A to Z: 2017 - Management Challenge Areas






A to Z: 2017 Blogging Challenge 


Theme: Top Management Challenge Areas


The articles/blog posts will be visible one every day during April 2007 starting from 1st April.

All the issues are relevant in the current times. So, the services offered by top consultancy organizations in these areas are specially highlighted.

1. Awareness of Environment

2. Brand Equity - The NPV of Marketing Investment
    Brain Stilling - Brain Storming for Effective Decisions

3. Culture Change Management
    Coordination

4. Deal Making and Negotiation

5. Energizing the Organization

6. Fortification of the Brand

7. Goal Alignment and Employee Involvement

8. Health of Organization

9. Innovation for Growth - Revenues, Profits, Potential Market, Knowledge Capital

10. Job Redesign for Effectiveness, Efficiency and Employee Satisfaction

11. Knowledge Management

12. Liquidity, Solvency and Profitability - The Finance Challenge

13. Manufacturing/Production Management - Production of Goods and Services

14. No Waste Philosophy - Industrial Engineering and Work Simplification

15. Organizing Resources and Acquiring Them - The Supply Chain

16. Productivity Management

17. Quality Management

18. Redesign - Design Iterations

19. Supply Chain Analytics

20. Technology Management and Innovation

21. Utility - Value to Customer

22. Values Statement of the Organization

23. Wandering to Manage - Shop Floor and Office - Observe the Action to Plan and Control

24. Xerophilous Organization - Surviving the Business Cycles

25. Youthful Organization

26. Zeal - Earnestness to Serve and Survive

My Important Project Using The Articles in This Blog


MBA Core Management Knowledge - One Year Revision Schedule






A to Z: Management -  Blog Posts by Narayana Rao (Earlier Year Challenges and Regular Blogging)




Letter "A"

1. Adoption of New Products and Processes
2. April - Management Knowledge Revision
3. Advertising

 Letter "B"

Brand Building Update 2015

Business Firm and Society - The External Environment, Social Responsibility and Ethics - Review Notes
Business Conceptualization - Management Insights from Economics, Engineering Economics, Managerial Economics, Industrial Economics
Branding

Letter "C"  -

Culture Change Management Process

Channels of Distribution
Letter "D" -

Distribution Warehouse

Discount Policy
Demand


 Letter "E"-

Efficiency Improvement - Need and Role of Industrial Engineering

Excellence
 "F" -

Finance for Non-Finance Managers

Foresight
 Letter "G" -

Goal Setting for MBO


Letter "H" -

Human Resource Training - Role of Indicated Reading Lists

Health
 Letter "I" -

Innovation Marketing

Innovation
 Letter "J" -

Job Design

Job Satisfaction


 Letter "K" -

Knowledge Management Software Packages

Knowledge Management
Letter "L" -

Location of Production Facilities

Leadership Development
Letter "M" -

Market Orientation

Make in India Campaign - Industry Sectors Information
Motivation

Letter "N" -

Needs and Wants - Marketing Concepts

New Products
Letter "O"

Organizational Sociology

Organizing

Letter "P"

Product Development

Productivity

Letter "Q"

Quantitative Thinking for Management

Quality

 Letter "R"  -

Relaxation During Work Day - Recovering from Fatigue

Research

Letter "S" -

Six Sigma - Zero Defect Movement Systematized

Salesmanship

Letter "T"  -

The Role of Theory in Practice of Engineering and Management

Training

Letter "U"  -

Understanding Marketing Productivity

Utlility

Letter "V" -

Value Engineering - Recent Developments

Vision

Letter "W" -

Work-Methods Science

Waste Elimination

Letter "X"  -

X Reminds me of Theory X


Letter "Y" -

Y Reminds me of Theory Y


Letter "Z"  -

Z Reminds me of Theory Z

A to Z - 2015 Challenge


A to Z: 2015 Blogging Challenge - Index for Management Articles by Professor Narayana Rao


To Know More About A to Z Blogging Challenge

http://www.a-to-zchallenge.com/

April 2017 - Posting Schedule - Letters
-----------------------------------------------


Recent Development - Year Update

A - Advertising

B - Branding

C - Channel Management

D - Distribution

E - Effectiveness Improvement

F - Financial Management

G - Goal Setting

H - Human Resource Management

I - Industrial Engineering

J - Job Design

K - Knowledge Management

L - Logistics Management

M - Manufacturing Management

N - New Product and Service Marketing

O - Organizational Behavior

P - Productivity Science, Engineering and Management

Q - Quantitative Techniques

R - Retail Sales

S - Supply Chain Management

T - Training and Development

U - Understanding the Business Environment Change

V - Value Engineering/Product Industrial Engineering

W - World Class Business and Manufacturing

X -

Y - Youth Participation in Production and Consumption

Z -
____________________

Updated  18 August 2017, 30 April 2017,  15 April, 11 April, 8 April, 6 April 2017, 3 April 2017, 1 April 2017, 27 Feb 2017,  3 December 2016

August 16, 2017

Corporate Growth Strategy - Introduction and Bibliography



Strategies for Sustaining Rapid Company Growth
(Thompson and Strickland in the chapter, Tailoring strategy to Fit Specific Industry and Company Situations)

Horizon I  "Short jump" strategic initiatives

Horizon II "Medium jump" strategic initiatives

Horizon III   "Long jump" strategic initiatives to  plant the seeds for ventures in businesses that do not yet exist - Investments in R & D,  Setting up venture capital funds that invest in new ventures inside and outside the company,

Managing project portfolio consisting of multiple horizon projects is difficult, but has to be done.

For more detail on multiple horizon projects model


Article McKinsey Quarterly December 2009
Enduring Ideas: The three horizons of growth
http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-three-horizons-of-growth

Interview April 2008
A fine-grained view of the sources of growth - Video
http://www.mckinsey.com/global-themes/employment-and-growth/a-fine-grained-view-of-the-sources-of-growth

INNOVATION and Company Growth
To Succeed in the Long Term, Focus on the Middle Term
Geoffrey Moore
Managing Director at TCG Advisors, a strategy consulting firm located in San Bruno, California.
Harvard Business Review,  JULY–AUGUST 2007 ISSUE
https://hbr.org/2007/07/to-succeed-in-the-long-term-focus-on-the-middle-term


The roots of organic growth

By Kabir Ahuja, Liz Hilton Segel, and Jesko Perrey
Article McKinsey Quarterly August 2017

Three types of growth strategy clusters

Investors - Investing in profitable products by finding cash fron non profitable area - Cost leadership strategy.

Creators - New Product development and introduction

Performers - Focus on commercial activities - marketing, fine pricing and service

Either investors or creators who pursue one more strategy are more successful.

Analytics is providing advantage in all three strategies at the moment
http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-roots-of-organic-growth


The Alchemy of Growth: Practical Insights for Building the Enduring Enterprise

Mehrdad Baghai, Stephen Coley, David White
Perseus Books, 2000 - Business & Economics - 272 pages

Growth unleashes benefits beyond the economic. It revitalizes organizations and invigorates the people in them, creating energy, a sense of purpose, and the glow of being on a winning team. Like the alchemy of old, it seeks to transform the everyday into the exalted by means that seem little short of magical. Yet growth is often elusive, achieved at unacceptable costs, or managed in fits and starts. Based on over three years of research and application at high-performing companies around the world, The Alchemy of Growth is a comprehensive, practical approach to initiating, achieving, and sustaining profitable growth?today and tomorrow. As the book shows, the secret is to manage business opportunities across three time horizons at once: extending and defending core businesses, building new businesses, and seeding options for the future. The Alchemy of Growth offers managers at all levels the tools and concepts for investing in the right initiatives, capabilities, and talent to propel their companies into the future.
https://books.google.ca/books/about/The_Alchemy_of_Growth.html?id=xI_8AF29R-UC

Interview with Alchemy of Growth Author - Mehrdad Baghai
_____________________

_____________________
CEOTalkRadio upload
Hosted by professor Robert G. Barnwell, CEO Talk Radio provides senior executives with practical advice on enhancing the competitiveness, profitability, and market capitalization of their companies. Guests include leading CEOs, CFOs, authors, academics and other renowned management thinkers.
Visit http://robertgbarnwell.com



Staircases to growth
By Mehrdad Baghai, Stephen C. Coley, and David White with Charles Conn and Robert J. McLean
Article McKinsey Quarterly November 1996
http://www.mckinsey.com/global-themes/employment-and-growth/staircases-to-growth

Smart Growth: Building an Enduring Business by Managing the Risks of Growth

Edward D. Hess
Columbia University Press, 2010 - 230 pages


Wall Street believes that all public companies should grow smoothly and continuously, as evidenced by ever-increasing quarterly earnings, and that all companies either "grow or die." Introducing a research-based growth model called "Smart Growth," Edward D. Hess challenges this ethos and its dangerous mentality, which often deters real growth and pressures businesses to create, manufacture, and purchase noncore earnings just to appease Wall Street.

Smart Growth accounts for the complexity of growth from the perspective of organization, process, change, leadership, cognition, risk management, employee engagement, and human dynamics. Authentic growth is much more than a strategy or a desired result. It is a process characterized by complex change, entrepreneurial action, experimental learning, and the management of risk. Hess draws on extensive public and private company research, incorporating case studies of Best Buy, Sysco, UPS, Costco, Starbucks, McDonalds, Coca Cola, Room & Board, Home Depot, Tiffany & Company, P&G, and Jet Blue. With conceptual innovations such as an Authentic Earnings and Growth System framework, a seven-step growth funnel pipeline, a Growth Decision Template, and a Growth Risks Audit, Hess provides a blueprint for an enduring business that strives to be better, rather than simply bigger.
https://books.google.co.in/books?id=5Yq-AwAAQBAJ


The Granularity of Growth: How to Identify the Sources of Growth and Drive Enduring Company Performance


Patrick Viguerie, Sven Smit, Mehrdad Baghai
John Wiley & Sons, 13-Jan-2011 - Business & Economics - 256 pages


While growth is a top priority for companies of all sizes, it can be extremely difficult to create and maintain—especially in today’s competitive business environment. The Granularity of Growth will put you in a better position to succeed as it reveals why growth is so important, what enables certain companies to grow so spectacularly, and how to ensure that growth comes from multiple sources as you take both a broad and a granular view of your markets.
https://books.google.co.in/books?id=Earbfb1H29kC

The Physics of Business Growth: Mindsets, System, and Processes


Edward Hess, Jeanne Liedtka
Stanford University Press, May 24, 2012 - 130 pages


Organic business growth is governed by its own natural laws underlying truths that set the stage for growth and innovation, much in the way that Einstein's law of relativity accounts for the movement of objects in the space-time continuum. The most fundamental law is that uncertainty is the only certainty. Dominating forces are ambiguity and change; the processes at work involve exploration, invention, and experimentation. Unfortunately, these truths run counter to the principles of stability, predictability, and linearity that have long informed the design of our firms.

The Physics of Business Growth helps readers understand how to create growth in today's business environment, providing them a roadmap and a set of practical tools to navigate its challenges. The book lays out a three step formula that will prove invaluable to professionals who have the opportunity to influence growth now, as well as to tomorrow's growth leaders, guiding them in (1) creating the right employee and organizational mindsets to enable growth (2) building an internal corporate growth system, and (3) putting in place processes that result in identifying opportunities, launching growth experiments, and managing a growth portfolio.
https://books.google.co.in/books?id=AH_x6CqiEiAC


Updated 18 August 2016, 8 October 2016





August 13, 2017

Industrial Engineered Systems Installation - Installing Proposed Methods by Industrial Engineers

Industrial Engineering
Installation of design is the biggest stumbling block said, Nadler [Nadler, 1955]. In many cases everyone contacted in step 6 and step 7 of method study process will approve of a method, yet there are some difficulties in installing new the method and getting the required changes made.
__________________________________________________________________

Steps in Method Study




1. Goal determination

2. Analysis of work

3. Application of principles of methods design

4. Selection of feasible solution

5. Formulation of recommended method/design

6. Review of design

7. Test of design

8. Installation of method

9. Standards setting



Installation of design is the biggest stumbling block said, Nadler [Nadler, 1955]. In many cases everyone contacted in step 6 and step 7 of method study process will approve of a method, yet there are some difficulties in installing new the method and getting the required changes made.


Steps in Installation of New Method




In general, installation of method calls for the following steps.


Approach to Foreman and Operator




If the analyst has reviewed the method and tested the method in cooperation with the foreman and the operator concerned, then the installation proper does not require selling the method. Otherwise, the first thing to do is to explain the foreman and the worker the details of the method and rationale for it.



Any approach to the worker should be made with and through the foreman or supervisor. Basic human relations principles are to be kept in mind in conversation with the worker. The worker needs to be explained the shortcoming of the earlier method from productivity/efficiency point of view so that he understands why the problem needs to be solved and cooperates. The suggestions of the worker are to be welcomed and incorporated into the proposed method at every stage. Even at this stage of preparing for installation of the method, the worker must be encouraged to give suggestions or ideas, so that the operator feels that he is contributing to the proposed method.



Economic fears of workers play an important role at the time installation of new methods. The industrial engineer should check the policies and procedures established by management in relation to these fears and use the information to gain the cooperation of operators. Especially important in some of the these situations is the policy regarding employees who are not required to be in the new method




Changes in product/production equipment/work place layout




This part involves obtaining authorization to complete the suggested changes in design of the product, material, equipment etc. After obtaining the authorization from the Committee or Executive responsible for authorizing such changes, they have to be sent to design department for incorporation in drawings. Orders are to be placed for various items required on the basis of new drawings (resourcing). After the materials, parts, tools and equipment arrive, the proper department in organization has to install them in the work place.



An important problem during the installation of a new method is how to avoid excessive losses in production. In some situations, this problem can be solved by dong the changes after working hours and on holidays. Planning has to be done to minimize loss of production.


Training of operators and other staff including foremen/supervisors




Since the new method will usually result in a change in hand patterns, the operators should be give some opportunity to learn the new method. Training in some cases may be an oral explanation for few hours. In some cases it could be extensive training off the job and on the job [Barnes, 1980].


Follow-up




Follow-up of the method is to be done after some time subsequent to the start of regular production under the new method. Foreman has the primary responsibility to ensure that the new method is followed and also to solve any difficulties that crop up in the new method. Supervisors are to be trained first in new methods. But the industrial engineer, who has played a key role in the development of the new method, has a responsibility to make sure that the new method is contributing up to the expectations through a review exercise.



Follow-up is probably most important for operations which are not continually running but are performed according to orders. In these cases the operator may forget much of what was learned of the new method. Foreman has greater responsibility to make sure that new methods are used in such circumstances. But checking by the industrial engineer or IE department technician occasionally is not unwarranted. It is like insurance on the investment of time and effort spent on the developing new method.


References




Barnes, Ralph (1980), Motion and time Study: Design and Measurement of Work, John Wiley, New York.


Nadler, Gerald (1955), Motion and Time Study, McGraw-Hill, New York.

Originally posted in
Knol Number 100


Industrial Engineering Knowledge Revision Plan - One Year Plan


January - February - March - April - May - June



July - August - September - October - November - December


Updated 15 August 2017, 14 December 2011

August 7, 2017

Scanning of Environment for Marketing Ideas and Decisions


Marketing Management Revision Article Series




Unmet needs of people always exist. Companies can make fortunes if they can find a solution to problems of people like cancer, mental diseases, nonfattening but tasty food etc. There are many more problems awaiting a solution. Marketers have to scan the environment and find out problems requiring solutions and report them back to their product development specialists to facilitate focused efforts to develop solutions for them.

For this purpose marketing executives scan macro environment. Macro environment is further divided into different environments for study purpose.

Demographic Environment


The first macro environment that marketers monitor is global and domestic population and trends in it. The parameters they look for are worldwide population growth, population age mix, and geographical shifts in population, household patterns, educational groups and ethnic groups.

Economic Environment


An exchange market requires purchasing power for transactions to take place along with people who want goods. The available purchasing power in an economy depends on parameters like current income, prices, savings, current debt levels and credit availability. Marketers have to identify major trends in income and spending patterns.

Natural Environment


Marketers need to consider the threats and opportunities associated with four trends in the natural environment: the shortage of raw materials, the increased cost of energy, the increased levels of pollution, and the changing role of governments.

Technological Environment


There is a rapid technological change. Technology is creating opportunities for new products and services. Research and development expenditure is an important variable that determines development of new technologies. Marketers have to promote R & D activities both at company level and country levels through government funds. Government regulation of technology has increases to assure public safe technologies.

Political/Legal Environment


Regulation of various businesses by government and liberalization of some businesses are issues that need to be monitored by marketers.

Social/Cultural Environment


There is high persistence of core cultural values of societies. There are subcultures in every society. There are shifts in secondary cultural values through time. Marketers have to be alert to such changes and analyze marketing implications of such changes.


For Further Reading

The Marketing Concept - Kotler

Philip Kotler, Marketing Management, Text Book




Planned Revision schedule for marketing chapters is in February and March

Originally posted on Knol


Knol number 122

Updated 8 August 2017, 25 November 2011


August 6, 2017

Target Costing and Target Cost Management

Strategic Cost Management Course Articles


Target costing is strategic decision.

Target costing is based on three premises: 1.) Product design and development has to be oriented to customer affordability or market-driven pricing, 2.) Product cost is to be treated as an objective or a constraint variable determined by the market conditions during the definition of a product's requirements, and 3.) Proactively working to achieve target cost during product and process development.

Target costing builds upon a design-to-cost (DTC) approach with the focus on market-driven target prices as a basis for establishing target costs. The target costing concept is similar to the cost as an independent variable (CAIV) approach used by the U.S. Department of Defense and to the price-to-win philosophy used by a number of companies pursuing contracts involving development under contract. 

The company can have a policy of target costing. For any new product to be introduced, marketing comes out with an estimate of the price and sales quantity schedule. From this information, and information available on capital outlays required (an approximate estimate), a decision is taken to target a price point. From this price point, the required profit margin is deducted to get a target cost for the product and the product development team is given this target cost as the development goal. Therefore, development has a technical goal, the new product has to perform the specified function, it must be durable, maintainable, it must have quality, and also it has to be within the target cost.
To ensure that the developed product is within the target cost, the development team needs cost estimation assistance on a continuous basis. Value engineering is normally taken up after some years of selling the new product. Target costing requires concurrent value engineering. Value engineering requires cost information.

Cost accountants and cost estimators have a significant role to play in an organization which is pursuing target costing as a strategy.

For More Detailed Reading


Target Costing
http://www.npd-solutions.com/target.html


What is Target Costing? A Presentation in pdf format
http://www.sfb374.uni-stuttgart.de/rv_98_99/lorino5.pdf


Best Practices in Target Costing
http://www.imanet.org/pdf/1236.pdf






Index of articles on Financial, Cost and Management Accounting 


Original Knol - http://knol.google.com/k/narayana-rao/target-costing-and-target-cost/ 2utb2lsm2k7a/ 380


Updated 7 August 2017, 24 November 2011