Amongst many picking up the right strategy is an art

By Md Rezaul Karim, 5th Dec 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/mb0.k0ox/
Posted in Wikinut>Writing>Essays

Alternative choices and different environmental and situational fluctuations make management a stupid like ship in the turbulent sea, hence readiness is important.

Choice of basic strategies

Basic issues related are self evident; expanding economy means growing industry and strong competitive Position. Again the other conditions like instability and dying moment of Survival stages are also related to the business life cycle conditions.

There are some basic strategies, which are related to business life cycle and strategic moods. Macro economic and global economy could be at growth stage or declining stage where the company has little or not much to progress, rather than adjusting with the situation, and slashing its costs and unnecessary property and assets. It could make the company more sustainability in terms of liquidity, which is otherwise dry out and affected with the declining or slow down of sales. On the contrary, growth can make the sales easy and market expansion and product and market diversification could speed up resulting heavy profits for the firms. Depending on the above forces the company can go down or go up- If the company is found to be having a introduction of life cycle- it would have loss or no profits and people around would have a panic or confused period of time, while the management role is to be firm in their objectivity and boosting up of morale of employees. While it comes to the cycle of growth- all will have ecstasy, and everybody enjoy the fruits of time and best selling. Again when the company or the products reaches at the maturity level or declining time line, it faces problems with liquidity, banks are reluctant to issue fresh loans, the sundry creditors rush in to press the firm to repay the dues. At this period of time company needs funds but slow sales due to fewer sales and all are in a bad shape to run the company. This is the time when changes are needed and more properties are to be sold out if found to be unnecessary. This is a harsh decision time, while many of our colleagues might lose their jobs along with management staff. Time is for change in the organization where new leadership emerges with new visions and management strategies.

1. what is to be done regarding Courses of Actions?
This is a difficult job, because, the business environments are ever changing without any notice the situation could turn to any side. On the other hand, e.g., Growth can be a result of both Internal and/or External reasons:

• Internal = 4Ps + Technology
It refers to marketing functions and strategy that could expand market and growth can be rocketed up, with dynamic steps by marketing strategists. While doing marketing strategists the first elements to look into is
- The product and its features, ingredients and other variables.
- The next element is the price of the product for which it is being sold out. Price skimming, discount pricing and standardizing of price of products are all related to pricing strategy.
- Placing is the third option in the marketing mix strategy where the channel of distribution and the players in the middle between the producer and consumers standing. Here it is to be strategically decided whether the company would go for on-line selling or direct marketing, or multilevel marketing. Some firs yet doing good following the traditional marketing channels such as- dealers, agents, wholesalers, retailers etc.
- Final element of the marketing mix is the promotional strategy and activities. It means the communication with the marketing players and stakeholders, whom the product or services are going to be targeted. In this case brand establishment, image creation, perception building and analyzing the psychology of the consumers are important ingredients to look into.
• External = Joint Venture, Merger, International business
External factors are the ingredients for which the companies active contribution is negligible or null. Any company can have growth with this type of external phenomenon. For example- by buying in a company or firm or factory anyone can have the expected growth in their equity. This is a pretty popular management practice, particularly among the US companies, where generally acquisition means rise in the stock price, which mostly bring about hefty growth in the corporate managements stakes.

The growth is a Complex, Creative and Variables related. There are many tools used like QM, Managerial Economics, simulation programs etc. in order to choose the best available alternatives and relative leverages that many options have to offer.
• Judgmental, situational: Management decisions are mostly judgmental and situational, meaning flexibility be there. Software can analyze data and variables, complex alternative choices can be jot down easy by using Quantitative methods and tools, but at some point managers have to deliver their decisions with regard to take it or leave it kind of situations, which the software cannot do. Creativity and variable related decision making human could do better than machine, as it has some imaginary and visionary power which computers lack in.
• Determined by trade-offs and eliminations:
When the resources are limited demands are higher in various, trade off is inevitable among various departments and functionaries. Sometimes some projects might have to be waived from priority list, sometimes property assets could be harvesting and some could turn to dog situation. This is all managers decision what to do when.

* Optimum combinations needed among functional departments:
Integration and coordination among departments are also important, as no one functionaries can run alone or mis-coordination would produce a bad symphony, and it would not work well. We are to note that some departments achieving or over performing would never means a sustainable success for a firm.

Meet the author

Md Rezaul Karim
I am a teacher engaged with the Southern University Bangladesh. I Like to use my spare time by writing and reading. I take it as a fun and source of inspiration in pursuing knowledge.