The Role of Computers in Business

The Role of Computers in Business

Information Technology, like language, affects us on many levels and has fast become integral to all of our lives.   In this course we aim to strike a balance in studying both the social and commercial forces of Information Technology, and networking, in particular.  
Let's take a moment here to introduce the commercial forces.

I am quite certain that each and everyone of you has witnessed first hand, even if it wasn't readily obvious, the impact that computers and computer networks have had on business.
In fact, by now the role of computers in business has risen to the point where computer networks, even more than personnel, are synonymous with the corporate entity.  Is this not true?
What do I mean?  Dell Computers ? isn?t a group of people making and selling personal computers as much as it is a collection of loosely affiliated computer systems that, upon receiving an order or customer service request (all online!), come together in a linear process to do a job.  Cisco Systems ? isn?t so much a manufacturer of switches as it is a trusted brand name and expert marketer who happens to use the Internet and a sophisticated ?network of networks? to weave together suppliers, manufacturers, and distributors to form a coordinated, fully branded, fully customized virtual entity that we know as Cisco. When orders slowed in 1999, Cisco?s response involved rationalizing their supply-base ? leaving capital-intensive subcontractors to squeeze already razor thin margins just to participate in the new, leaner, and ever-responsive sales network.  Indeed Cisco?s information systems are their competitive advantage. 
Computers and computer networks act as the central nervous system of today?s enterprise.  Today's regular business people aren?t just relying on them...they're directly administering, monitoring, and configuring them.   While IT staff with specialized skills may focus on application development, integration, and support, today?s business professional requires information technology knowledge to navigate and operate IT systems, to design, customize, and test systems for competitive advantage, and to seek out and identify new solutions that can transform their business.

Source: http://sudahkahandasholat.blogspot.com/2012/06/role-of-computers-in-business.html

IMPORT AND EXPORT

IMPORT AND EXPORT

Import 
"Imports" consist of transactions in goods and services (sales, barter, gifts or grants) from non-residents residents to residents. The exact definition of imports in national accounts includes and excludes specific "borderline" cases. A general delimitation of imports in national accounts is given below:

·                     An import of a good occurs when there is a change of ownership from a non-resident to a resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the import measurement.

·                     Imports of services consist of all services rendered by non-residents to residents. In national accounts any direct purchases by residents outside the economic territory of a country are recorded as imports of services; therefore all expenditure by tourists in the economic territory of another country are considered as part of the imports of services. Also international flows of illegal services must be included.

Basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:

·                     Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering the country are recorded as imports. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses are not recorded in external trade statistics unless they subsequently go into free circulation of the importing country.

·                     A special case is the intra-EU trade statistics. Since goods move freely between the member states of the EU without customs controls, statistics on trade in goods between the member states must be obtained through surveys. To reduce the statistical burden on the respondents small scale traders are excluded from the reporting obligation.

·                     Statistical recording of trade in services is based on declarations by banks to their central banks or by surveys of the main operators. In a globalized economy where services can be rendered via electronic means (e.g. internet) the related international flows of services are difficult to identify.

·                     Basic statistics on international trade normally do not record smuggled goods or international flows of illegal services. A small fraction of the smuggled goods and illegal services may nevertheless be included in official trade statistics through dummy shipments or dummy declarations that serve to conceal the illegal nature of the activities.

Export 
In national accounts "exports" consist of transactions in goods and services (sales, barter, gifts or grants) from residents to non-residents. The exact definition of exports includes and excludes specific "borderline" cases. A general delimitation of exports in national accounts is given below:

·                     An export of a good occurs when there is a change of ownership from a resident to a non-resident; this does not necessarily imply that the good in question physically crosses the frontier. However, in specific cases national accounts impute changes of ownership even though in legal terms no change of ownership takes place (e.g. cross border financial leasing, cross border deliveries between affiliates of the same enterprise, goods crossing the border for significant processing to order or repair). Also smuggled goods must be included in the export measurement.

·                     Export of services consist of all services rendered by residents to non-residents. In national accounts any direct purchases by non-residents in the economic territory of a country are recorded as exports of services; therefore all expenditure by foreign tourists in the economic territory of a country is considered as part of the exports of services of that country. Also international flows of illegal services must be included.

National accountants often need to make adjustments to the basic trade data in order to comply with national accounts concepts; the concepts for basic trade statistics often differ in terms of definition and coverage from the requirements in the national accounts:

·                     Data on international trade in goods are mostly obtained through declarations to custom services. If a country applies the general trade system, all goods entering or leaving the country are recorded. If the special trade system (e.g. extra-EU trade statistics) is applied goods which are received into customs warehouses are not recorded in external trade statistics unless they subsequently go into free circulation in the country of receipt.

·                     A special case is the intra-EU trade statistics. Since goods move freely between the member states of the EU without customs controls, statistics on trade in goods between the member states must be obtained through surveys. To reduce the statistical burden on the respondents small scale traders are excluded from the reporting obligation.

·                     Statistical recording of trade in services is based on declarations by banks to their central banks or by surveys of the main operators. In a globalized economy where services can be rendered via electronic means (e.g. internet) the related international flows of services are difficult to identify.

·                     Basic statistics on international trade normally do not record smuggled goods or international flows of illegal services. A small fraction of the smuggled goods and illegal services may nevertheless be included in official trade statistics through dummy shipments or dummy declarations that serve to conceal the illegal nature of the activities.

 

Source: http://sudahkahandasholat.blogspot.com/2012/06/import-and-export.html

MODERN BANKING

MODERN BANKING

Modern Banking is a sequel to the highly successful Modern Banking in Theory and Practice, first published in 1996. Over the last decade many aspects of banking have changed considerably, though the key features that distinguish banks from other financial institutions remain. Some might question the need for a book on banking rather than one on financial institutions - while banks remain special and unique to the financial sector, books need to be devoted to them.

Modern Banking focuses on the theory and practice of banking, and its prospects in the new millennium. The book is written for courses in banking and finance at Masters/MBA level, or undergraduate degrees specialising in this area. Bank practitioners wishing to deepen and broaden their understanding of banking issues may also be attracted to this book. While they often have exceptional and detailed knowledge of the areas they have worked in, busy bankers may be all too unaware of the key broader issues. Consider the fundamental questions: What is unique about a bank? and What differentiates it from other financial institutions?Answering these questions begins to show how banks should evolve and adapt - or fail. If bankers know the underlying reasons for why profitable banks exist, it will help them to devise strategies for sustained growth.

Modern Banking concludes with a set of case studies that give practical insight into the key issues covered in the book:

·                     The core banking functions

·                     Different types of banks and diversification of bank activities

·                     Risk management: issues and techniques

·                     Global regulation: Basel 1 and Basel 2.

·                     Bank regulation in the UK, US, EU, and Japan

·                     Banking in emerging markets

·                     Bank failure and financial crises

·                     Competitive issues, from cost efficiency to mergers and acquisitions

·                     Case Studies including: Goldman Sachs, Bankers Trust/Deutsche Bank, Sumitomo Mitsui, Bancomer

About the Author

Professor Shelagh Heffernan is currently Professor of Banking and Finance at Cass Business School, City University, London and has been a visiting Professor at several universities. Modern Banking is her fourth book.
A former Commonwealth Scholar at Oxford University, Professor Heffernan is also a past beneficiary of a Leverhulme Trust Research Award, which funded new research on competition in banking, and recently received a second award from the Leverhulme Trust. She publishes in top academic journals - her paper, ‘How do UK Institutions Really Price their Banking Products?’ (Journal of Banking and Finance) was chosen as one of the top 50 published articles by Emerald Management Review.
Current research includes: SMEs and banking services, the conversion of mutuals to bank stock firms, monetary policy and pass through (funded by an ESRC grant), and M&As in banking. Professor Heffernan is an Associate Member of the Higher Education Academy and has received two Distinguished Teaching and Learning awards.

Source: http://sudahkahandasholat.blogspot.com/2012/06/normal-0-false-false-false-in-x-none-x.html

MONEY AND ITS FUNCTIONS

MONEY AND ITS FUNCTIONS

Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment. Any kind of object or secure verifiable record that fulfills these functions can serve as money.
Money originated as commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money is without intrinsic use value as a physical commodity, and derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private".
The money supply of a country consists of currency (banknotes and coins) andbank money (the balance held in checking accounts and savings accounts). Bank money usually forms by far the largest part of the money supply.

Functions                                      
In the past, money was generally considered to have the following four main functions, which are summed up in a rhyme found in older economics textbooks: "Money is a matter of functions four, a medium, a measure, a standard, a store." That is, money functions as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value. However, modern textbooks now list only three functions, that of medium of exchange, unit of account, and store of value, not considering a standard of deferred payment as a distinguished function, but rather subsuming it in the others.
There have been many historical disputes regarding the combination of money's functions, some arguing that they need more separation and that a single unit is insufficient to deal with them all. One of these arguments is that the role of money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate. Others argue that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. The term 'financial capital' is a more general and inclusive term for all liquid instruments, whether or not they are a uniformly recognized tender.

1. Medium of exchange
Main article: Medium of exchange
When money is used to intermediate the exchange of goods and services, it is performing a function as a medium of exchange. It thereby avoids the inefficiencies of a barter system, such as the 'double coincidence of wants' problem.

2. Unit of account
A unit of account is a standard numerical unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. To function as a 'unit of account', whatever is being used as money must be:
·                     Divisible into smaller units without loss of value; precious metals can be coined from bars, or melted down into bars again.
·                     Fungible: that is, one unit or piece must be perceived as equivalent to any other, which is why diamonds, works of art or real estate are not suitable as money.
·                     A specific weight, or measure, or size to be verifiably countable. For instance, coins are often milled with a reeded edge, so that any removal of material from the coin (lowering its commodity value) will be easy to detect.

3. Store of value
Main article: Store of value
To act as a store of value, a money must be able to be reliably saved, stored, and retrieved – and be predictably usable as a medium of exchange when it is retrieved. The value of the money must also remain stable over time. Some have argued that inflation, by reducing the value of money, diminishes the ability of the money to function as a store of value.
Standard of deferred payment
Main article: Standard of deferred payment
While standard of deferred payment is distinguished by some texts, particularly older ones, other texts subsume this under other functions. A "standard of deferred payment" is an accepted way to settle a debt – a unit in which debts are denominated, and the status of money as legal tender, in those jurisdictions which have this concept, states that it may function for the discharge of debts. When debts are denominated in money, the real value of debts may change due toinflation and deflation, and for sovereign and international debts via debasementand devaluation.

4. Measure of Value
Money, essentially acts as a standard measure and common denomination of trade. it is thus a basis for quoting and bargaining of prices. It has significantly in developing efficient accounting systems. But the most important usage is that it provides a method to compare the values of dissimilar objects.
Money supply
In economics, money is a broad term that refers to any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the amount of financial instruments within a specific economy available for purchasing goods or services. Since the money supply consists of various financial instruments (usually currency, demand deposits and various other types of deposits), the amount of money in an economy is measured by adding together these financial instruments creating a monetary aggregate.
Modern monetary theory distinguishes among different ways to measure the money supply, reflected in different types of monetary aggregates, using a categorization system that focuses on the liquidity of the financial instrument used as money. The most commonly used monetary aggregates (or types of money) are conventionally designated M1, M2 and M3. These are successively larger aggregate categories: M1 is currency (coins and bills) plus demand deposits (such as checking accounts); M2 is M1 plus savings accounts and time deposits under $100,000; and M3 is M2 plus larger time deposits and similar institutional accounts. M1 includes only the most liquid financial instruments, and M3 relatively illiquid instruments.
Another measure of money, M0, is also used; unlike the other measures, it does not represent actual purchasing power by firms and households in the economy. M0 is base money, or the amount of money actually issued by the central bank of a country. It is measured as currency plus deposits of banks and other institutions at the central bank. M0 is also the only money that can satisfy the reserve requirements of commercial banks.
Market liquidity
Main article: Market liquidity
Market liquidity describes how easily an item can be traded for another item, or into the common currency within an economy. Money is the most liquid asset because it is universally recognised and accepted as the common currency. In this way, money gives consumers the freedom to trade goods and services easily without having to barter.
Liquid financial instruments are easily tradable and have low transaction costs. There should be no (or minimal) spread between the prices to buy and sell the instrument being used as money.
Types of money
Currently, most modern monetary systems are based on fiat money. However, for most of history, almost all money was commodity money, such as gold and silver coins. As economies developed, commodity money was eventually replaced byrepresentative money, such as the gold standard, as traders found the physical transportation of gold and silver burdensome. Fiat currencies gradually took over in the last hundred years, especially since the breakup of the Bretton Woods system in the early 1970's.

WHY FINANCE?

WHY FINANCE?

   "According to a report by global employee health solutions firm Vielife and London South Bank University (LSBU), financial directors showed a greater belief that employment matters, in general, have an impact on future organisational performance than their HR counterparts."

Why financial professionals are reportedly ahead of human resources pros in understanding the connection between people and business performance could be an interesting analysis in itself. I can see a number of good reasons why finance "gets" strategic human capital management and I think there are some important implications:

    Shifting Business Basics. Financial training and practice creates an acute sensitivity to business inputs and outputs, yet historically those inputs and outputs were "things." Inventory was the key input/output and, to be honest, finance did not give HR much attention. Direct labor on the automated shop floor was at best a relatively undifferentiated commodity and at worst, a drag on margins to be minimized. However, as the value drivers of business have shifted from things to people, finance has naturally shifted its gaze to understanding the new inputs, which are people, and their outputs. "Employment matters" are now business matters, and have come under more financial scrutiny.
    Increasing Labor Costs. Finance by nature and training tends to be very cost-aware, if not hypersensitive, to the cost drivers of a business. As labor costs increase in both absolute and relative terms, finance's attention is naturally drawn to that area and analysts start to dig in to understand the source, nature, and purpose of those costs. Where there is cost, there is finance.
    Changing Role of Finance. Finance as a discipline has spent the last 20-plus years shifting its own role in the enterprise from "bean counter" to business leader. This journey has led finance to grow beyond its traditional core competencies of accounting and financial reporting to create models, tools, and metrics to enhance its ability to understand and provide insight into the whole business.
    It's Personal. As noted above, finance has been keen to move beyond its accounting and administration heritage to become a valued business partner. This, in turn, has caused a large and fundamental shift in the talent and skills needed to be an effective finance organization. At every single financial executive conference I have attended over the last decade, a good amount of agenda time was dedicated to the talent acquisition, development, and retention requirements for building and running a highly performing finance shop. Finance has a very selfish reason for focusing on "people issues."



The leading implication of all this is that strategic HR concepts and ideas are crucial to business success today. The finance departments that are aligned with the above reasons have undertaken the transformation necessary to become strategic business partners. We see it with our own customers: As Workday announced today, Sallie Mae selected Workday Financial Management and HCM because it understands the correlation between HR and finance and the value of a unified platform, and it required tools that will allow it to get real-time information about its workforce that impacts critical management decisions.
Many, many more finance departments are either in process of or have yet to begin the transformation journey. So we, as a finance profession and discipline, need to continue to invest in talent and systems capable of improving our ability to understand and measure the investment in and contributions of human capital.
For HR, there is an incredible opportunity to deliver business value (who better to drive strategic HR initiatives?), but to do this HR must continue to evolve, as has finance, from an administrative focus to a business focus. In short, successful HR people of the future will be business people, and effective HR systems will be business systems.

THE BALANCE SHEET

 THE BALANCE SHEET

In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a sole proprietorship, a business partnership, a corporation or other business organization, such as an LLC or an LLP. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a "snapshot of a company's financial condition". Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time of a business' calendar year.

A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity. Assets are followed by the liabilities. The difference between the assets and the liabilities is known as equity or the net assets or the net worth or capital of the company and according to the accounting equation, net worth must equal assets minus liabilities.

Another way to look at the same equation is that assets equals liabilities plus owner's equity. Looking at the equation in this way shows how assets were financed: either by borrowing money (liability) or by using the owner's money (owner's equity). Balance sheets are usually presented with assets in one section and liabilities and net worth in the other section with the two sections "balancing."

A business operating entirely in cash can measure its profits by withdrawing the entire bank balance at the end of the period, plus any cash in hand. However, many businesses are not paid immediately; they build up inventories of goods and they acquire buildings and equipment. In other words: businesses have assets and so they cannot, even if they want to, immediately turn these into cash at the end of each period. Often, these businesses owe money to suppliers and to tax authorities, and the proprietors do not withdraw all their original capital and profits at the end of each period. In other words businesses also have liabilities.

Types

A balance sheet summarizes an organization or individual's assets, equity and liabilities at a specific point in time. Individuals and small businesses tend to have simple balance sheets. Larger businesses tend to have more complex balance sheets, and these are presented in the organization's annual report. Large businesses also may prepare balance sheets for segments of their businesses. A balance sheet is often presented alongside one for a different point in time (typically the previous year) for comparison.

A. Personal balance sheet

A personal balance sheet lists current assets such as cash in checking accounts and savings accounts, long-term assets such as common stock and real estate, current liabilities such as loan debt and mortgage debt due, or overdue, long-term liabilities such as mortgage and other loan debt. Securities and real estate values are listed at market value rather than at historical cost or cost basis. Personal net worth is the difference between an individual's total assets and total liabilities.

 B. Small business balance sheet

A small business balance sheet lists current assets such as cash, accounts receivable, and inventory, fixed assets such as land, buildings, and equipment, intangible assets such as patents, and liabilities such as accounts payable, accrued expenses, and long-term debt. Contingent liabilities such as warranties are noted in the footnotes to the balance sheet. The small business's equity is the difference between total assets and total liabilities.

Source: wikipedia.com

AN ACCOUNTING OVERVIEW

AN ACCOUNTING OVERVIEW

Accounting is frequently called the “language of business” because of its ability to communicate financial information about an organization. Various interested parties, such as managers, potential investors, creditors, and the government, depend on a company’s accounting system to help them make informed financial decisions. An effective accounting system. Therefore, must include accurate collecting, recording, classifying, summarizing, interpreting, reporting of information on the financial status of an organization.

In order to achieve a standardized system the accounting process follows accounting principles and rules. Regardless of the type of business or the amount of money involved, common procedures for handling and presenting financial information are used incoming money (revenues) and outgoing money (expenditures) are carefully monitored, and transactions are summarized in financial statements, which reflect the major financial activities of an organization.

Two common financial statements are the balance sheet and the income statement. The balance sheet shows the financial position of a company at one point in time, while the income statement shows the financial performance of a company over a period of time. Financial statements allow interested parties to compare one organization to another and/or to compare accounting period within one organization. For example, an inevestor may compare the most recent income statements of two corporations in order to find out which one would be a better investment.

People who specialize in the field of accounting are known as accountants. In the United States, accountants are usually classified as public, private, or governmental public accountants work independently and provide accounting services such as auditing and tax computation to companies and individuals. Public accountants may earn the title of CPA (Certified Public Accountant) by fulfilling rigorous requirements. Private accountants work solely for private for companies or corporations that hire them to maintain financial records, and governmental agencies or bureaus. Both private and governmental accountants are paid on a salary basis, whereas public accountants receive fess for their services.

Through effective application of commonly accepted accounting systems, private, public, and governmental accountants provide accurate and timely financial information that is necessary for organizational decision making

Source: http://yayukdaryanti16.blogspot.com

THE TARGET MARKET

THE TARGET MARKET

A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise towards. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.

Market Segmentations

Target markets are groups of individuals separated by distinguishable and noticeable aspects. Target markets can be separated into:

        • Geographic segmentations, addresses (their location climate region)
        • demographic/socio-economic segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle)
        • psychographic segmentation (similar attitudes, values, and lifestyles)
        • behavioral segmentation (occasions, degree of loyalty)
        • product-related segmentation (relationship to a product)

Strategies for Reaching Target Markets

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing/nichemarketing.

Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience.

For sales teams, one way to reach out to target markets is through direct marketing. This is done by buying consumer database based on the segmentation profiles you have defined. These database usually comes with consumer contacts (e.g. email, mobile no., home no., etc.). Caution is recommended when undertaking direct marketing efforts — check the targeted country's direct marketing laws.

The Psychology of Target Marketing

A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner.

Research has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the target market. Research has generally shown that target marketing strategies are constructed from consumer inferences of similarities between some aspects of the advertisement (e.g., source pictured, language used, lifestyle represented) and characteristics of the consumer (e.g. reality or desire of having the represented style). Consumers are persuaded by the characteristics in the advertisement and those of the consumer

Source: wikipedia.com

THE FOUR P'S

THE FOUR P'S

What is marketing? The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made

There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time.

But if you get just one element wrong, it can spell disaster. You could be left promoting a car with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook after the start of the new school year, or selling an item at a price that's too high – or too low – to attract the people you're targeting.

The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistakes.
Understanding the Tool

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way of defining the marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

    1.Product (or Service)
    2.Place
    3.Price
    4.Promotion

A good way to understand the 4 Ps is by the questions that you need to ask to define you marketing mix. Here are some questions that will help you understand and define each of the four elements:
 

1. Product/Service

   ~ What does the customer want from the product/service? What needs does it satisfy?
    ~What features does it have to meet these needs?
       ~ Are there any features you've missed out?
        ~Are you including costly features that the customer won't actually use?
  ~ How and where will the customer use it?
    ~What does it look like? How will customers experience it?
    ~What size(s), color(s), and so on, should it be?
    ~What is it to be called?
    ~How is it branded?
    ~How is it differentiated versus your competitors?
    ~What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below).

2. Place

    ~Where do buyers look for your product or service? If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?
    ~How can you access the right distribution channels?
   ~ Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?
    ~What do you competitors do, and how can you learn from that and/or differentiate?

3.Price

    ~What is the value of the product or service to the buyer?
    ~Are there established price points for products or services in this area?
    Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?
    ~What discounts should be offered to trade customers, or to other specific segments of your market?
   ~How will your price compare with your competitors?

Promotion

    ~Where and when can you get across your marketing messages to your target market?
    ~Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet?
    ~When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?
    ~How do your competitors do their promotions? And how does that influence your choice of promotional activity?

The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix.

Amongst the other marketing mix models have been developed over the years is Boom and Bitner's 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions.

Another marketing mix approach is Lauterborn's 4Cs, which presents the elements of the marketing mix from the buyer's, rather than the seller's, perspective. It is made up of Customer needs and wants (the equivalent of product), Cost (price), Convenience (place) and Communication (promotion). In this article, we focus on the 4Ps model as it is the most well-recognized, and contains the core elements of a good marketing mix. 

Source: http://www.mindtools.com/pages/article/newSTR_94.htm

MARKETING

MARKETING

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

For business to consumer marketing it is the process by which companies create value for customers and build strong customer relationships, in order to capture value from customers in return. For business to business marketing it is creating value, solutions, and relationships either short term or long term with a company or brand. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the customer as the focus of its activities, marketing management is one of the major components of business management. Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.

The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

The term developed from an original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering marketing is "a set of processes that are interconnected and interdependent with other functions, whose methods can be improved using a variety of relatively new approaches.

Source: wikipedia.com

THE REALITY OF DECESION-MAKING

THE REALITY OF DECESION-MAKING

Understanding Decision Making
Some proposed definitions of decision-making experts described as follows (Hasan, 2004):

1. According to George R. Terry
Decision making is the selection of alternative behavior (behavior) of certain of two or more alternatives.

2. According S.P. Siagian
Decision making is a systematic approach to the nature of the alternatives they face and take appropriate action according to the calculations is the most appropriate action.

3. According to James A.F. Stoner
Decision making is a process used to choose an action as a way of solving the problem.
Notions of the above decision, it can be concluded that decision making is a process of selecting the best alternative from several alternatives systematically to follow up (used) as a way of solving the problem

According Sondang P. Siagian was quoted as saying by the GK. Manila
in his book Management Practices in State Government, there
four models of decision making that is:

A. Model optimization. Decision-making in order to obtain results
which can be achieved and can not be separated from the limited resources
no. This model is based on the maximum criteria, probability, and
benefits.

B. Models satisfying. Decision making is not solely
through rationality and logic approach procedure but in reality,
so that decision makers are satisfied with and proud when
decisions taken are adequate to fruition.

C. Mixed scanning models. Decision-making that incorporates
Among high rationality approach with a pragmatic approach.

D. Heuristic models. Decision making based on concepts entirely
ynag held by decision makers that is based on
his own views on the problem at hand.

While Bedjo Siswanto in his book Modern Management
said there are two models of decision making that often there
within the organization, namely:

1. Normative model, which is a model of decision making
embody the manager about how he should take
a group decision. These models have generally been developed by
economists and other management scientists. One example of this model
in educational institutions is about financial budgeting.

2. Descriptive models, ie models that explain the decision-making
concrete behavior and this model has been developed by behavioral scientists

STEPS IN THE DECESION PROCESS

STEPS IN THE DECISION PROCESS

 Decisions are a part and parcel of the life of every human being. In every area, be it personal or professional life, we need to take decisions. There are various types of decision-making, which can vary in importance. There could also be some instances where decisions may need to be taken very quickly. But when we are faced with problems or dilemmas where our decision has the ability to affect not only us, but others around us as well, then they have to be made very carefully. Many people take decisions depending just on their gut feeling. However, if the decision involves money or someone's life, it is important to analyze the situation carefully before making the final decision. The steps can help us make significant decisions thoughtfully.

What are the Steps Involved in Decision-making?

Step 1: The first step is to understand the importance of making the decision. You would have to make a list of some important factors like -

    1.Time required to make the decision
    2.Result of making a good and a bad decision
    3.People who would help you
    4.Who will face the consequences of the decision?
    5.Affect of the decision on you and the people around you
    6.What will happen if the decision is not made?

Step 2: Every decision is made to achieve some kind of goal or objective. So, the next step would involve charting down the goals that you want your decision to achieve. At this stage, it is also necessary to make a note of the consequences that are not desirable once the decision is made.

Step 3: For a person to make a decision, he or she has to be confronted with two or more options. If there is no option, making a decision would be impossible. So, the third step requires you to make a draft stating the options that are available to you. One can also create some options that do not exist in reality. Doing this may help you find some solution to your problem and make the decision process a little easier. Once you have listed the available options, you have to examine each option and make a section for options that sound to be very promising and those that seem not so relevant. However, you have to be careful not to take out any option from your list before it is analyzed in detail.

Step 4: Step 4 is where you have to analyze the different options in detail. Your analysis would be on the basis of what would be the result of each option available to you. You can take the help of different people at this stage, asking them to give their opinion on each option. Here, you would be able to recognize certain options that require more research or contemplation. This stage is a filtration process where the options that seem to be irrelevant should be taken out of the list and only the best possible ones retained.

Step 5: At this step, you have to develop some criteria, according to which you have to compare the various options available to you. These criteria are conditions that would help you in evaluating the different options and would aid you in taking the decision.

Step 6: Once you have decided on the criteria, it is time for analysis of each option according to the set conditions. Make a table, where the criteria appears in columns and options appear in rows. Rate each option with a numerical digit, as per how it would be beneficial for each criterion.

Step 7: After rating the available options according to criteria, at the seventh step, try to combine different options that are available to you and see whether you can come up with a better solution, instead of just choosing one option. You also have to summarize the results you got for each option to make the final decision.

Step 8: This is the final stage, where you have to make the ultimate decision. Before you do this it is important to go through all the steps and recheck all the information. This would be beneficial for delaying the time of taking the final decision, if you find any missing information. One very important thing that you have to keep in mind is that every decision you take would have some level of risk. Knowing the potential risk involved in the decision one makes would aid in preparing for the problem that arises with the decision.

These are essential decision-making techniques that would prevent one from choosing the wrong option. This is also an important way of learning proper judgment skills that would assist you in every decision you make.

Source: http://www.buzzle.com/articles/8-steps-to-decision-making-process.html

MANAGEMENT AND HUMAN RESOURCES DEVELOPMENT

MANAGEMENT AND HUMAN RESOURCES DEVELOPMENT


Mangers perform various functions, but one of the most important and least understood aspects of their job is proper utilization of people. Research reveals that worker performance is closely related to motivation, thus keeping employees motivated is an essential component of good management in a business context, motivation refers to the stimulus that direct the behavior of workers toward the company goals. In order to motivated workers to achieve company goals, managers must beware of their needs.

Many managers believe workers will be motivated to achieve organizational goals by satisfying their fundamental needs for material survival. These needs include a good salary, safe working conditions and job security. While absence of these factors results in poor morale and dissatisfaction, studies have shown that their presence result only in maintenance of existing attitudes and work performance. Although important, salary, working conditions, and job security do not provide the primary motivation for many workers in highly industrialized societies, especially at the professional or technical levels.

Increased motivation is more likely to occur when work meets the needs of individuals for learning, self-realization, and personal growth. By responding to personal needs-the desire for responsibility, recognition, growth, promotion, and more interesting work-managers have altered conditions in the workplace and, consequently, many employees are motivated to perform more effectively.

In an attempt to appeal to both the fundamental and personal needs of workers, innovative management approaches, such as job enrichment and job enlargement, have been adopted in many organizations. Job enrichment gives workers more authority in making decisions related to planning and doing their work. A worker might assume responsibility for scheduling work flow, checking quality of work produced, or making sure deadlines are met. Job enlargement increases the number of tasks workers perform by allowing them to rotate positions or by giving them responsibility for doing several jobs. Rather than assembling just one component of an automobile, factory workers might be grouped together and given responsibility for assembling the entire fuel system.

By improving the quality of work life through satisfaction of fundamental and personal employee needs, managers attempt to direct the behavior of workers toward the company goals.

Source: http://arnasmusers.blogspot.com/2010/01/management-and-human-resources_01.html