1.Management General

8/14/2019 1.Management General

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MANAGEMENT

Management in all business and human organization activity is the act of getting people together to accomplishdesired goals and objectives. Management comprises planning , organizing , staffing , leading or directing, andcontrolling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources , financial resources, technological resources, and natural resources .

Theoretical scope

Mary Parker Follett (18681933), who wrote on the topic in the early twentieth century, defined managementas "the art of getting things done through people". She also described management as philosophy. [2] One canalso think of management functionally, as the action of measuring a quantity on a regular basis and of adjustingsome initial plan ; or as the actions taken to reach one's intended goal . This applies even in situations where

planning does not take place. From this perspective, Frenchman Henri Fayol [3] considers management to consistof seven functions :

1. planning2. organizing3. leading4. co-ordinating5. controlling6. staffing7. motivating

Some people, however, find this definition, while useful, far too narrow. The phrase "management is whatmanagers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of

definitions, and the connection of managerial practices with the existence of a managerial cadre or class .

One habit of thought regards management as equivalent to "business administration" and thus excludesmanagement in places outside commerce , as for example in charities and in the public sector . Morerealistically, however, every organization must manage its work, people, processes, technology, etc. in order tomaximize its effectiveness. Nonetheless, many people refer to university departments which teach managementas " business schools ." Some institutions (such as the Harvard Business School ) use that name while others(such as the Yale School of Management ) employ the more inclusive term "management."

English speakers may also use the term "management" or "the management" as a collective word describing themanagers of an organization, for example of a corporation . Historically this use of the term was oftencontrasted with the term "Labor" referring to those being managed.

Basic functions of management

Management operates through various functions, often classified as planning, organizing, leading/directing, andcontrolling/monitoring.

Planning : Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.

Organizing : (Implementation) making optimum use of the resources required to enable the successful

carrying out of plans. Staffing : Job Analyzing, recruitment, and hiring individuals for appropriate jobs. Leading/directing : Determining what needs to be done in a situation and getting people to do it. Controlling/Monitoring , checking progress against plans, which may need modification based on

feedback.
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Formation of the business policy

The mission of the business is its most obvious purpose -- which may be, for example, to make soap. The vision of the business reflects its aspirations and specifies its intended direction or future

destination. The objectives of the business refer to the ends or activity at which a certain task is aimed. The business's policy is a guide that stipulates rules, regulations and objectives, and may be used in the

managers' decision-making. It must be flexible and easily interpreted and understood by all employees. The business's strategy refers to the coordinated plan of action that it is going to take, as well as the

resources that it will use, to realize its vision and long-term objectives. It is a guideline to managers,stipulating how they ought to allocate and utilize the factors of production to the business's advantage.Initially, it could help the managers decide on what type of business they want to form.

How to implement policies and strategies

All policies and strategies must be discussed with all managerial personnel and staff. Managers must understand where and how they can implement their policies and strategies. A plan of action must be devised for each department. Policies and strategies must be reviewed regularly. Contingency plans must be devised in case the environment changes. Assessments of progress ought to be carried out regularly by top-level managers. A good environment and team spirit is required within the business. The missions, objectives, strengths and weaknesses of each department must be analysed to determine

their roles in achieving the business's mission. The forecasting method develops a reliable picture of the business's future environment. A planning unit must be created to ensure that all plans are consistent and that policies and strategies

are aimed at achieving the same mission and objectives. Contingency plans must be developed, just in case.

All policies must be discussed with all managerial personnel and staff that is required in the execution of anydepartmental policy.

Organizational change is strategically achieved through the implementation of the eight-step plan of action established by John P. Kotter : Increase urgency, get the vision right, communicate the buy-in,empower action, create short-term wins, don't let up, and make change stick.

Where policies and strategies fit into the planning process

They give mid- and lower-level managers a good idea of the future plans for each department in anorganization.

A framework is created whereby plans and decisions are made. Mid- and lower-level management may add their own plans to the business's strategic ones.

Multi-divisional management hierarchy

The management of a large organization may have three levels:

1. Senior management (or "top management" or "upper management")2. Middle management3. Low-level management, such as supervisors or team-leaders4. Foreman5. Rank and File

Top-level management

Require an extensive knowledge of management roles and skills.
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They have to be very aware of external factors such as markets. Their decisions are generally of a long-term nature Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes They are responsible for strategic decisions. They have to chalk out the plan and see that plan may be effective in the future. They are executive in nature.

Middle management

Mid-level managers have a specialized understanding of certain managerial tasks. They are responsible for carrying out the decisions made by top-level management.

Lower management

This level of management ensures that the decisions and plans taken by the other two are carried out. Lower-level managers' decisions are generally short-term ones.

Foreman / lead hand

They are people who have direct supervision over the working force in office factory, sales field or other workgroup or areas of activity.

Rank and File

The responsibilities of the persons belonging to this group are even more restricted and more specificthan those of the foreman.

Strategic management

Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. [1] It is the process of specifying the organization 's mission , vision and objectives, developing policies and plans, often in terms of

projects and programs, which are designed to achieve these objectives, and then allocating resources toimplement the policies and plans, projects and programs. A balanced scorecard is often used to evaluate theoverall performance of the business and its progress towards objectives.

Strategic management is a level of managerial activity under setting goals and over Tactics . Strategicmanagement provides overall direction to the enterprise and is closely related to the field of Organization Studies . In the field of business administration it is useful to talk about "strategic alignment" between theorganization and its environment or "strategic consistency". According to Arieu (2007), "there is strategicconsistency when the actions of an organization are consistent with the expectations of management, and thesein turn are with the market and the context."

Strategic management is an ongoing process that evaluates and controls the business and the industries inwhich the company is involved; assesses its competitors and sets goals and strategies to meet all existing and

potential competitors; and then reassesses each strategy annually or quarterly [i.e. regularly] to determine howit has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changedcircumstances, new technology, new competitors, a new economic environment., or a new social, financial, or

political environment. (Lamb, 1984:ix) [2]
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Strategy formulation

Strategic formulation is a combination of three main processes which are as follows:

Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; bothmicro-environmental and macro-environmental.

Concurrent with this assessment, objectives are set. These objectives should be parallel to a time-line;

some are in the short-term and others on the long-term. This involves crafting vision statements (longterm view of a possible future), mission statements (the role that the organization gives itself in society),overall corporate objectives (both financial and strategic), strategic business unit objectives (bothfinancial and strategic), and tactical objectives.

These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan providesthe details of how to achieve these objectives.

Marketing action plan

Placement and execution of required resources are financial, manpower, operational support, time,technology support

Operating with a change in methods or with alteration in structure Distributing the specific tasks with responsibility or moulding specific jobs to individuals or teams. The process should be managed by a responsible team. This is to keep direct watch on result,comparison

for betterment and best practices, cultivating the effectiveness of processes, calibrating and reducing thevariations and setting the process as required.

Introducing certain programs involves acquiring the requisition of resources: a necessity for developingthe process, training documentation, process testing, and imalgation with (and/or conversion from)difficult processes.

As and when the strategy implementation processes, there have been so many problems arising such as humanrelations, the employee-communication. Such a time , marketing strategy is the biggest implementation

problem usually involves , with emphasis on the appropriate timing of new products. An organization, with aneffective management, should try to implement its plans without signaling this fact to its competitors .[3]

In order for a policy to work, there must be a level of consistency from every person in an organization,specially management. This is what needs to occur on both the tactical and strategic levels of management.

Strategy evaluation

Measuring the effectiveness of the organizational strategy, it's extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and external) of

the entity in question. This may require to take certain precautionary measures or even to change theentire strategy.

In corporate strategy, Johnson and Scholes present a model in which strategic options are evaluated againstthree key success criteria:

Suitability (would it work?) Feasibility (can it be made to work?) Acceptability (will they work it?)

Suitability

Suitability deals with the overall rationale of the strategy. The key point to consider is whether the strategywould address the key strategic issues underlined by the organisation's strategic position.

Does it make economic sense?
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Would the organization obtain economies of scale , economies of scope or experience economy ? Would it be suitable in terms of environment and capabilities?

Tools that can be used to evaluate suitability include:

Ranking strategic options Decision trees What-if analysis

Feasibility

Feasibility is concerned with whether the resources required to implement the strategy are available, can bedeveloped or obtained. Resources include funding , people , time and information .

Tools that can be used to evaluate feasibility include:

cash flow analysis and forecasting break-even analysis resource deployment analysis

Acceptability

Acceptability is concerned with the expectations of the identified stakeholders (mainly shareholders, employeesand customers) with the expected performance outcomes, which can be return, risk and stakeholder reactions.

Return deals with the benefits expected by the stakeholders (financial and non-financial). For example,shareholders would expect the increase of their wealth, employees would expect improvement in their careers and customers would expect better value for money.

Risk deals with the probability and consequences of failure of a strategy (financial and non-financial).

Stakeholder reactions deals with anticipating the likely reaction of stakeholders. Shareholders couldoppose the issuing of new shares, employees and unions could oppose outsourcing for fear of losingtheir jobs, customers could have concerns over a merger with regards to quality and support.

Tools that can be used to evaluate acceptability include:

what-if analysis stakeholder mapping

General approaches

In general terms, there are two main approaches, which are opposite but complement each other in some ways,to strategic management:

The Industrial Organizational Approach o based on economic theory deals with issues like competitive rivalry, resource allocation ,

economies of scaleo assumptions rationality, self discipline behaviour, profit maximization

The Sociological Approach o deals primarily with human interactionso assumptions bounded rationality, satisfying behaviour, profit sub-optimality. An example of a

company that currently operates this way is Google

Strategic management techniques can be viewed as bottom-up, top-down, or collaborative processes. In the bottom-up approach, employees submit proposals to their managers who, in turn, funnel the best ideas further up the organization. This is often accomplished by a capital budgeting process. Proposals are assessed usingfinancial criteria such as return on investment or cost-benefit analysis . Cost underestimation and benefit
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Reasons why strategic plans fail

There are many reasons why strategic plans fail, especially:

Failure to understand the customer o Why do they buyo Is there a real need for the producto inadequate or incorrect marketing research

Inability to predict environmental reaction o What will competitors do

Fighting brandsPrice wars

o Will government intervene Over-estimation of resource competence

o Can the staff, equipment, and processes handle the new strategyo Failure to develop new employee and management skills

Failure to coordinateo Reporting and control relationships not adequateo Organizational structure not flexible enough

Failure to obtain senior management commitmento Failure to get management involved right from the starto Failure to obtain sufficient company resources to accomplish task

Failure to obtain employee commitmento New strategy not well explained to employeeso No incentives given to workers to embrace the new strategy

Under-estimation of time requirementso No critical path analysis done

Failure to follow the plano No follow through after initial planningo No tracking of progress against plano No consequences for above

Failure to manage changeo Inadequate understanding of the internal resistance to changeo Lack of vision on the relationships between processes, technology and organization

Poor communicationso Insufficient information sharing among stakeholderso Exclusion of stakeholders and delegates

Limitations of strategic management

Although a sense of direction is important, it can also stifle creativity, especially if it is rigidly enforced. In anuncertain and ambiguous world, fluidity can be more important than a finely tuned strategic compass. When astrategy becomes internalized into a corporate culture, it can lead to group think . It can also cause anorganization to define itself too narrowly. An example of this is marketing myopia .

Many theories of strategic management tend to undergo only brief periods of popularity. A summary of thesetheories thus inevitably exhibits survivorship bias (itself an area of research in strategic management). Manytheories tend either to be too narrow in focus to build a complete corporate strategy on, or too general andabstract to be applicable to specific situations. Populism or faddishness can have an impact on a particular

theory's life cycle and may see application in inappropriate circumstances. See business philosophies and popular management theories for a more critical view of management theories.

In 2000, Gary Hamel coined the term strategic convergence to explain the limited scope of the strategies beingused by rivals in greatly differing circumstances. He lamented that strategies converge more than they should,
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because the more successful ones are imitated by firms that do not understand that the strategic processinvolves designing a custom strategy for the specifics of each situation .[51]

Ram Charan, aligning with a popular marketing tagline, believes that strategic planning must not dominateaction. "Just do it!", while not quite what he meant, is a phrase that nevertheless comes to mind whencombatting analysis paralysis.

The linearity trap

It is tempting to think that the elements of strategic management (i) reaching consensus on corporateobjectives; (ii) developing a plan for achieving the objectives; and (iii) marshalling and allocating the resourcesrequired to implement the plan can be approached sequentially. It would be convenient, in other words, if onecould deal first with the noble question of ends, and then address the mundane question of means.

But in the world in which strategies have to be implemented, the three elements are interdependent. Means areas likely to determine ends as ends are to determine means. [96] The objectives that an organization might wish to

pursue are limited by the range of feasible approaches to implementation. (There will usually be only a smallnumber of approaches that will not only be technically and administratively possible, but also satisfactory to thefull range of organizational stakeholders.) In turn, the range of feasible implementation approaches isdetermined by the availability of resources.

And so, although participants in a typical strategy session may be asked to do blue sky thinking where they pretend that the usual constraints resources, acceptability to stakeholders , administrative feasibility have been lifted, the fact is that it rarely makes sense to divorce oneself from the environment in which a strategywill have to be implemented. Its probably impossible to think in any meaningful way about strategy in anunconstrained environment. Our brains cant process boundless possibilities, and the very idea of strategyonly has meaning in the context of challenges or obstacles to be overcome. Its at least as plausible to argue thatacute awareness of constraints is the very thing that stimulates creativity by forcing us to constantly reassess

both means and ends in light of circumstances.

The key question, then, is, "How can individuals, organizations and societies cope as well as possible with ...issues too complex to be fully understood, given the fact that actions initiated on the basis of inadequateunderstanding may lead to significant regret?" [97]

The answer is that the process of developing organizational strategy must be iterative. It involves toggling back and forth between questions about objectives, implementation planning and resources. An initial idea aboutcorporate objectives may have to be altered if there is no feasible implementation plan that will meet with asufficient level of acceptance among the full range of stakeholders, or because the necessary resources are notavailable, or both.

Even the most talented manager would no doubt agree that "comprehensive analysis is impossible" for complex problems [98] . Formulation and implementation of strategy must thus occur side-by-side rather than sequentially, because strategies are built on assumptions which, in the absence of perfect knowledge, will never be perfectlycorrect. Strategic management is necessarily a "repetitive learning cycle [rather than] a linear progressiontowards a clearly defined final destination." [99] While assumptions can and should be tested in advance, theultimate test is implementation. You will inevitably need to adjust corporate objectives and/or your approach to

pursuing outcomes and/or assumptions about required resources. Thus a strategy will get remade duringimplementation because "humans rarely can proceed satisfactorily except by learning from experience; andmodest probes, serially modified on the basis of feedback, usually are the best method for such learning." [100]

It serves little purpose (other than to provide a false aura of certainty sometimes demanded by corporate

strategists and planners) to pretend to anticipate every possible consequence of a corporate decision, every possible constraining or enabling factor, and every possible point of view. At the end of the day, what mattersfor the purposes of strategic management is having a clear view based on the best available evidence and ondefensible assumptions of what it seems possible to accomplish within the constraints of a given set of circumstances. As the situation changes, some opportunities for pursuing objectives will disappear and others
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arise. Some implementation approaches will become impossible, while others, previously impossible or unimagined, will become viable.

The essence of being strategic thus lies in a capacity for "intelligent trial-and error" [101] rather than linear adherence to finally honed and detailed strategic plans. Strategic management will add little value -- indeed, itmay well do harm -- if organizational strategies are designed to be used as a detailed blueprints for managers.Strategy should be seen, rather, as laying out the general path - but not the precise steps - by which anorganization intends to create value. [102]Strategic management is a question of interpreting, and continuously

reinterpreting, the possibilities presented by shifting circumstances for advancing an organization's objectives.Doing so requires strategists to think simultaneously about desired objectives, the best approach for achievingthem, and the resources implied by the chosen approach. It requires a frame of mind that admits of no boundary

between means and ends.

Operations management

Operations management is an area of business concerned with the production of goods and services, and

involves the responsibility of ensuring that business operations are efficient in terms of using as little resourceas needed, and effective in terms of meeting customer requirements. It is concerned with managing the processthat converts inputs (in the forms of materials, labour and energy) into outputs (in the form of goods andservices).

Operations traditionally refers to the production of goods and services separately, although the distinction between these two main types of operations is increasingly difficult to make as manufacturers tend to merge product and service offerings. More generally, Operations Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be alignedwith market opportunity for optimal enterprise performance.

According to the U.S. Department of Education, Operations Management [is the field concerned with managingand directing] the physical and/or technical functions of a firm or organization, particularly those relating todevelopment, production, and manufacturing. [Operations Management programs typically include] instructionin principles of general management, manufacturing and production systems, plant management, equipmentmaintenance management, production control, industrial labor relations and skilled trades supervision, strategicmanufacturing policy, systems analysis, productivity analysis and cost control, and materials planning. [1][ 2]

Business operations are those ongoing recurring activities involved in the running of a business for the purpose of producing value for the stakeholders . They are contrasted with project management , and consist of business processes .

The outcome of business operations is the harvesting of value from assets owned by a business. Assets can beeither physical or intangible . An example of value derived from a physical asset like a building is rent. Anexample of value derived from an intangible asset like an idea is a royalty. The effort involved in "harvesting"this value is what constitutes business operations.

Business operations encompasses three fundamental management imperatives that collectively aim to maximizevalue harvested from business assets (this has often been referred to as "sweating the assets"):

1. Generate recurring income .2. Increase the value of the business assets.3. Secure the income and value of the business.

All three imperatives are mutually dependent. The following basic tenets illustrate this interdependency:
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The more recurring income an asset generates, the more valuable it becomes . For example, the productsthat sell at the highest volumes and prices are usually considered to be the most valuable products in a

business's product portfolio .

The more valuable a product becomes the more recurring income it generates . For example, a luxurycar can be leased out at a higher rate than a normal car.

The intrinsic value and income-generating potential of an asset cannot be realized without a way to

secure it . For example, petroleum deposits are worthless unless processes and equipment are developedand employed to extract, refine, and distribute it profitably .

The business model of a business describes the means by which the three management imperatives areachieved. In this sense, business operations is the execution of the business model.

Business operations topics

Generating recurring income

This is the most straightforward and well-understood management imperative of business operations. The primary goal of this imperative is to implement a sustained delivery of goods and services to the business'scustomers at a cost that is less than the funds acquired in exchange for said goods and servicesin short,making a profit .

The funds directly acquired by the business in exchange for the goods and services it delivers is the business'srevenue .

The cost of developing, producing, and delivering these goods and services is the business's expenses .

A business whose revenues are greater than its expenses makes a profit. Such a business is profitable.

Increasing the value of the business

The more profitable a business is, the more valuable it is. A business's profitability is measured on thefollowing bases:

How much income it generates for the amount of assets its business operations employits businessreturn.

How much income it generates for the amount of revenue it realizesits business margin.

Securing the income and value of the business

Desirability or demand for its goods and services Ability of its customers to pay for its goods and services Uniqueness and competitiveness of its business model Control exerted over the quality and efficiency of production activities Public regard for the business as a member of the community

A business that can harvest a significant amount of value from its assets but cannot demonstrate an ability tosustain this effort cannot be considered a viable business.
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Marketing management

Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities. Rapidly emerging forces of globalization have compelled firms to market beyond the borders of their home country making InternationalMarketing highly significant and an integral part of a firm's marketing strategy. [1] Marketing managers are oftenresponsible for influencing the level, timing, and composition of customer demand accepted definition of the

term. In part, this is because the role of a marketing manager can vary significantly based on a business' size,corporate culture , and industry context. For example, in a large consumer products company, the marketingmanager may act as the overall general manager of his or her assigned product [2]

From this perspect, it consists of 5 steps, beginning with the market & environment research. After fixing thetargets and setting the strategies, they will be realised by the marketing mix in step 4. The last step in the

process is the marketing controlling. Marketing management strategy and design effective, cost-efficientimplementation programs, firms must possess a detailed, objective understanding of their own business and themarket in which they operate. [3] In analyzing these issues, the discipline of marketing management oftenoverlaps with the related discipline of strategic planning .

Traditionally, marketing analysis was structured into three areas: Customer analysis, Company analysis, andCompetitor analysis (so-called "3Cs" analysis). More recently, it has become fashionable in some marketingcircles to divide these further into certain five "Cs": Customer analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the industry Context.

Department analysis is to develop a schematic diagram for market segmentation , breaking down the market intovarious constituent groups of customers, which are called customer segments or market segmentations.Marketing managers work to develop detailed profiles of each segment, focusing on any number of variablesthat may differ among the segments: demographic, psychographic, geographic, behavioral, needs-benefit, andother factors may all be examined. Marketers also attempt to track these segments' perceptions of the various

products in the market using tools such as perceptual mapping .In company analysis, marketers focus on understanding the company's cost structure and cost position relativeto competitors, as well as working to identify a firm's core competencies and other competitively distinctcompany resources . Marketing managers may also work with the accounting department to analyze the profits the firm is generating from various product lines and customer accounts. The company may also conduct

periodic brand audits to assess the strength of its brands and sources of brand equity .[4]

The firm's collaborators may also be profiled, which may include various suppliers, distributors and other channel partners, joint venture partners, and others. An analysis of complementary products may also be

performed if such products exist.

Marketing management employs various tools from economics and competitive strategy to analyze the industrycontext in which the firm operates. These include Porter's five forces , analysis of strategic groups of competitors, value chain analysis and others .[5] Depending on the industry, the regulatory context may also beimportant to examine in detail.

In Competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especiallyon their relative competitive strengths and weaknesses using SWOT analysis . Marketing managers willexamine each competitor's cost structure, sources of profits, resources and competencies, competitive

positioning and product differentiation , degree of vertical integration , historical responses to industrydevelopments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required to performaccurate marketing analysis. As such, they often conduct market research (alternately marketing research ) toobtain this information. Marketers employ a variety of techniques to conduct market research, but some of themore common include:
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Qualitative marketing research , such as focus groups Quantitative marketing research , such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation

Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Marketing strategy

Once the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of avariety of specific objectives, including optimizing short-term unit margins, revenue growth, market share ,long-term profitability, or other goals.

To achieve the desired objectives, marketers typically identify one or more target customer segments whichthey intend to pursue. Customer segments are often selected as targets because they score highly on twodimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not

price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources andcapabilities to compete for the segment's business, can meet their needs better than the competition, and can doso profitably. [3] In fact, a commonly cited definition of marketing is simply "meeting needs profitably." [6]

The implication of selecting target segments is that the business will subsequently allocate more resources toacquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In somecases, the firm may go so far as to turn away customers that are not in its target segment.The doorman at aswanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business hasmade a strategic decision to target the "high fashion" segment of nightclub patrons.

In conjunction with targeting decisions, marketing managers will identify the desired positioning they want thecompany, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulationof a key benefit the company's product or service offers that is differentiated and superior to the benefits offered

by competitive products. [7] For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally

positioned its brand to be perceived as the leader in "performance."

Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage .[8] The positioning should also be sufficientlyrelevant to the target segment such that it will drive the purchasing behavior of target customers .[7]

Implementation planning

The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical tostrategic.

After the firm's strategic objectives have been identified, the target market selected, and the desired positioningfor the company, product or brand has been determined, marketing managers focus on how to best implementthe chosen strategy. Traditionally, this has involved implementation planning across the "4Ps" of marketing:Product management , Pricing, Place (i.e. sales and distribution channels), and Promotion .

Taken together, the company's implementation choices across the 4Ps are often described as the marketing mix ,meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy.The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforcesthe firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achievesthe firm's marketing and financial objectives.
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In many cases, marketing management will develop a marketing plan to specify how the company will executethe chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm tofirm, but commonly includes:

An executive summary Situation analysis to summarize facts and insights gained from market research and marketing analysis The company's mission statement or long-term strategic vision A statement of the company's key objectives, often subdivided into marketing objectives and financial

objectives The marketing strategy the business has chosen, specifying the target segments to be pursued and the

competitive positioning to be achieved Implementation choices for each element of the marketing mix (the 4Ps)

Project, process, and vendor management

Once the key implementation initiatives have been identified, marketing managers work to oversee theexecution of the marketing plan. Marketing executives may therefore manage any number of specific projects,such as sales force management initiatives, product development efforts, channel marketing programs and theexecution of public relations and advertising campaigns. Marketers use a variety of project management techniques to ensure projects achieve their objectives while keeping to established schedules and budgets.

More broadly, marketing managers work to design and improve the effectiveness of core marketing processes ,such as new product development , brand management , marketing communications , and pricing. Marketers mayemploy the tools of business process reengineering to ensure these processes are properly designed, and use avariety of process management techniques to keep them operating smoothly.

Effective execution may require management of both internal resources and a variety of external vendors andservice providers, such as the firm's advertising agency . Marketers may therefore coordinate with thecompany's Purchasing department on the procurement of these services.

Organizational management and leadership

Marketing management may spend a fair amount of time building or maintaining a marketing orientation for the business. Achieving a market orientation, also known as "customer focus" or the "marketing concept",requires building consensus at the senior management level and then driving customer focus down into theorganization. Cultural barriers may exist in a given business unit or functional area that the marketing manager must address in order to achieve this goal. Additionally, marketing executives often act as a "brand champion"and work to enforce corporate identity standards across the enterprise.

In larger organizations, especially those with multiple business units, top marketing managers may need to

coordinate across several marketing departments and also resources from finance, research and development,engineering, operations, manufacturing, or other functional areas to implement the marketing plan. In order toeffectively manage these resources, marketing executives may need to spend much of their time focused on

political issues and inte-departmental negotiations.

The effectiveness of a marketing manager may therefore depend on his or her ability to make the internal "sale"of various marketing programs equally as much as the external customer's reaction to such programs. [6]

Reporting, measurement, feedback and control systems

Marketing management employs a variety of metrics to measure progress against objectives. It is theresponsibility of marketing managers in the marketing department or elsewhere to ensure that the executionof marketing programs achieves the desired objectives and does so in a cost-efficient manner.

Marketing management therefore often makes use of various organizational control systems, such as salesforecasts, sales force and reseller incentive programs, sales force management systems , and customer
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relationship management tools (CRM). Recently, some software vendors have begun using the term " marketing operations management " or " marketing resource management " to describe systems that facilitate an integratedapproach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.

Measuring the return on investment (ROI) of and marketing effectiveness various marketing initiatives is asignificant problem for marketing management. Various market research, accounting and financial tools are

used to help estimate the ROI of marketing investments. Brand valuation , for example, attempts to identify the percentage of a company's market value that is generated by the company's brands, and thereby estimate thefinancial value of specific investments in brand equity. Another technique, integrated marketing communications (IMC), is a CRM database-driven approach that attempts to estimate the value of marketingmix executions based on the changes in customer behavior these executions generate. [9]
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BUSINESS ANALYSIS

Business analysis is the discipline [1] of identifying business needs and determining solutions to business problems. Solutions often include a systems development component, but may also consist of processimprovement or organizational change or strategic planning and policy development. The person who carriesout this task is called a business analyst or BA. [2]

Those BAs who work solely on developing software systems may be called IT Business Analysts, TechnicalBusiness Analysts, or Systems Analysts.

Business analysis sub-disciplines

Business analysis as a discipline has a heavy overlap with requirements analysis sometimes also calledrequirements engineering, but focuses on identifying the changes to an organization that are required for it toachieve strategic goals. These changes include changes to strategies, structures, policies, processes, andinformation systems.

Examples of business analysis include:

Enterprise analysis or company analysisfocuses on understanding the needs of the business as a whole, its strategic direction, and identifyinginitiatives that will allow a business to meet those strategic goals.

Requirements planning and managementinvolves planning the requirements development process, determining which requirements are thehighest priority for implementation, and managing change.

Requirements elicitationdescribes techniques for collecting requirements from stakeholders in a project.

Requirements analysisdescribes how to develop and specify requirements in enough detail to allow them to be successfullyimplemented by a project team.

Requirements communicationdescribes techniques for ensuring that stakeholders have a shared understanding of the requirements andhow they will be implemented.

Solution assessment and validationdescribes how the business analyst can verify the correctness of a proposed solution, how to support theimplementation of a solution, and how to assess possible shortcomings in the implementation.

Business analysis techniques

There are a number of techniques that a Business Analyst will use when facilitating business change. Theserange from workshop facilitation techniques used to elicit requirements, to techniques for analysing andorganising requirements.

Some of these techniques include:

PESTLE

This is used to perform an external environmental analysis by examining the many different external factorsaffecting an organisation. The six attributes of PESTLE :

Political (Current and potential influences from political pressures)Economic (The local, national and world economy impact)Sociological (The ways in which a society can affect an organisation)Technological (The effect of new and emerging technology)Legal (The effect of national and world legislation)Environmental (The local, national and world environmental issues)
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Five Why's

Five Whys is used to get to the root of what is really happening in a single instance. For each answer given afurther 'why' is asked.

MoSCoW

This is used to prioritise requirements by allocating an appropriate priority, gauging it against the validity of the

requirement itself and its priority against other requirements. MoSCoW comprises:

Must have - or else delivery will be a failureShould have - otherwise will have to adopt a workaroundCould have - to increase delivery satisfactionWould like to have in the future - but won't have now

VPEC-T

This technique is used when analyzing the expectations of multiple parties having different views of a system inwhich they all have an interest in common, but have different priorities and different responsibilities.

Values - constitute the objectives, beliefs and concerns of all parties participating. They may befinancial, social, tangible and intangiblePolicies - constraints that govern what may be done and the manner in which it may be doneEvents - real-world proceedings that stimulate activityContent - the meaningful portion of the documents, conversations, messages, etc. that are produced andused by all aspects of business activityTrust - trusting (or otherwise) relationship between all parties engaged in a value system

Roles of Business Analysts

As the scope of business analysis is very wide, there has been a tendency for business analysts to specialize inone of the three sets of activities which constitute the scope of business analysis.

StrategistOrganizations need to focus on strategic matters on a more or less continuous basis in the modern

business world. Business analysts, serving this need, are well-versed in analyzing the strategic profile of the organization and its environment, advising senior management on suitable policies , and the effectsof policy decisions.

ArchitectOrganizations may need to introduce change to solve business problems which may have been identified

by the strategic analysis, referred to above. Business analysts contribute by analyzing objectives, processes and resources, and suggesting ways by which re-design ( BPR ), or improvements ( BPI ) could be made. Particular skills of this type of analyst are "soft skills", such as knowledge of the business,requirements engineering , stakeholder analysis , and some "hard skills", such as business process modeling . Although the role requires an awareness of technology and its uses, it is not an IT-focusedrole.Three elements are essential to this aspect of the business analysis effort: the redesign of core business

processes; the application of enabling technologies to support the new core processes; and themanagement of organizational change . This aspect of business analysis is also called "business processimprovement" (BPI), or " reengineering ".

Systems analyst

There is the need to align IT Development with the systems actually running in production for theBusiness. A long-standing problem in business is how to get the best return from IT investments , whichare generally very expensive and of critical, often strategic, importance. IT departments, aware of the

problem, often create a business analyst role to better understand, and define the requirements for their IT systems. Although there may be some overlap with the developer and testing roles, the focus is
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Reduce waste and complete projects on time

Project delays are costly in three different dimensions:

Project costs For every month of delay, the project team continues to rack up costs and expenses.When a large part of the development team has been outsourced, the costs will start to add up quicklyand are very visible if contracted on a time and materials basis (T&M). Fixed price contracts withexternal parties limit this risk. For internal resources, the costs of delays are not as readily apparent,

unless time spent by resources is being tracked against the project, as labor costs are essentially fixedcosts.

Opportunity costs Opportunity costs come in two flavors lost revenue and unrealized expensereductions. Some projects are specifically undertaken with the purpose of driving new or additionalrevenues to the bottom line. For every month of delay, a company foregoes a month of this new revenuestream. The purpose of other projects is to improve efficiencies and reduce costs. Again, each month of failure postpones the realization of these expense reductions by another month. In the vast majority of cases, these opportunities are never captured or analyzed, resulting in misleading ROI calculations. Of the two opportunity costs, the lost revenue is the most egregious and the impacts are greater andlonger lasting.

N.B. On a lot of projects (particularly larger ones) the project manager is the one tasked with ensuring that a project is completed on time. The BA's job is more to ensure that if a project is not completed on time then atleast the highest priority requirements are met.

Document the right requirements

Business analysts want to make sure that they define the application in a way that meets the end-users needs.Essentially, they want to define the right application. This means that they must document the rightrequirements through listening carefully to customer feedback, and by delivering a complete set of clear

requirements to the technical architects and coders who will write the program. If a business analyst has limitedtools or skills to help him elicit the right requirements, then the chances are fairly high that he will end updocumenting requirements that will not be used or that will need to be re-written resulting in rework asdiscussed above. The time wasted to document unnecessary requirements not only impacts the business analyst,it also impacts the rest of the development cycle. Coders need to generate application code to perform theseunnecessary requirements and testers need to make sure that the wanted features actually work as documentedand coded. Experts estimate that 10% to 40% of the features in new software applications are unnecessary or gounused. Being able to reduce the amount of these extra features by even one-third can result in significantsavings.

Improve project efficiency

Efficiency can be achieved in two ways: by reducing rework and by shortening project length.

Rework is a common industry headache and it has become so common at many organizations that it is often built into project budgets and time lines. It generally refers to extra work needed in a project to fix errors due toincomplete or missing requirements and can impact the entire software development process from definition tocoding and testing. The need for rework can be reduced by ensuring that the requirements gathering anddefinition processes are thorough and by ensuring that the business and technical members of a project areinvolved in these processes from an early stage.

Shortening project length presents two potential benefits. For every month that a project can be shortened, project resource costs can be diverted to other projects. This can lead to savings on the current project and leadto earlier start times of future projects (thus increasing revenue potential).


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PEST analysis

PEST analysis stands for " Political, Economic, Social, and T echnological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management . Someanalysts added L egal and rearranged the mnemonic to SLEPT; [1] inserting E nvironmental factors expanded it toPESTEL or PESTLE, which is popular in the UK. [2] The model has recently been further extended to STEEPLEand STEEPLED, adding education and demographic factors. It is a part of the external analysis when

conducting a strategic analysis or doing market research , and gives an overview of the differentmacroenvironmental factors that the company has to take into consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations.

The growing importance of environmental or ecological factors in the first decade of the 21st century havegiven rise to green business and encouraged widespread use of an updated version of the PEST framework.STEER analysis systematically considers Socio-cultural, Technological, Economic, Ecological, and Regulatoryfactors.

The Model's Factors

Political factors, are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy , labour law , environmental law , trade restrictions ,tariffs , and political stability. Political factors may also include goods and services which thegovernment wants to provide or be provided ( merit goods ) and those that the government does not wantto be provided ( demerit goods or merit bads). Furthermore, governments have great influence on thehealth , education , and infrastructure of a nation.

Economic factors include economic growth , interest rates , exchange rates and the inflation rate . Thesefactors have major impacts on how businesses operate and make decisions. For example, interest ratesaffect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates

affect the costs of exporting goods and the supply and price of imported goods in an economy Social factors include the cultural aspects and include health consciousness, population growth rate, age

distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for acompany's products and how that company operates. For example, an ageing population may imply asmaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies maychange various management strategies to adapt to these social trends (such as recruiting older workers).

Technological factors include ecological and environmental aspects, such as R&D activity, automation ,technology incentives and the rate of technological change . They can determine barriers to entry ,minimum efficient production level and influence outsourcing decisions. Furthermore, technological

shifts can affect costs, quality, and lead to innovation .

Environmental factors include weather, climate, and climate change , which may especially affectindustries such as tourism, farming, and insurance.Furthermore, growing awareness to climate change isaffecting how companies operate and the products they offer--it is both creating new markets anddiminishing or destroying existing ones.

Legal factors include discrimination law , consumer law , antitrust law , employment law , and health and safety law . These factors can affect how a company operates, its costs, and the demand for its products.

Applicability of the Factors

The model's factors will vary in importance to a given company based on its industry and the goods it produces.For example, consumer and B2B companies tend to be more affected by the social factors, while a globaldefense contractor would tend to be more affected by political factors. [3] Additionally, factors that are morelikely to change in the future or more relevant to a given company will carry greater importance. For example, a
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company who has borrowed heavily will need to focus more on the economic factors (especially interest rates).[4]

Furthermore, conglomerate companies who produce a wide range of products (such as Sony, Disney, or BP)may find it more useful to analyze one department of its company at a time with the PESTEL model, thusfocusing on the specific factors relevant to that one department. A company may also wish to divide factors intogeographical relevance, such as local, national, and global (also known as LoNGPESTEL).

Use of PEST analysis with other models

The PEST factors, combined with external micro-environmental factors and internal drivers, can be classifiedas opportunities and threats in a SWOT analysis .

SWOT analysis

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SWOT Analysis is a strategic planning method used to evaluate the Strengths, W eaknesses, O pportunities, andThreats involved in a project or in a business venture. It involves specifying the objective of the businessventure or project and identifying the internal and external factors that are favorable and unfavorable toachieving that objective. The technique is credited to Albert Humphrey , who led a convention at StanfordUniversity in the 1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT a

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