Modern Management Approaches

Carroll’s Pyramid of Corporate Social Responsibility

In the past, the common perception of a business responsibility was to maximize their firm’s profit. This is because businesses were perceived to always put the shareholder interests first. However, businesses are moving towards impacting the socials and environments. Several studies have found that businesses now have direct responsibilities to various other stakeholders which include preventing the harm of human rights and ensuring that there are solutions available if abuses occur.

The modern view of business responsibility demands companies to help in problems relating to public welfare. As firms have no utmost responsibility for these unpleasant situations, philanthropic responsibilities are still not mandatory.… Read the rest

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Blue Ocean Strategy – Summary and Examples

Strategy involves standing out from the competition and making choices that give the company a unique and valuable position by offering distinctive products and services. Competitive advantage and profitability can be achieved simultaneously by approaches that create consistent internal synergies and combine a company’s operational activities efficiently. Strategies are formed at various levels of the organization. However, a typical organizational structure incorporates strategies at 3 specific levels: corporate, business and functional.

Corporate strategy defines a company’s holistic growth and management direction pertaining to its various businesses, products and services. Business strategies, on the other hand, are established at the divisional levels and typically focus on enhancing the strategic business unit’s competitive position in its industry.… Read the rest

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Divisional Performance Measurement

Performance measurement is the performance-based management process which is flowing from the organizational mission and the strategic planning process. Divisional performance measurement includes the objective and subjective assessments of the performance sub-units of an organization such as divisions or departments. Divisional performance measurement are effective in ensure that a strategy of organisation is successfully implemented by monitor a divisions effectiveness in satisfying its own predetermined goals or stakeholder desires. Divisional performance measures may be based on non-financial as well as on financial information.

Divisional Performance Measurement – Financial Measures 1. The Return on Investment (ROI)

Nowadays, most of companies concentrate on the return on investment (ROI) of a division that is profit as a percentage in direct relation to investment of division which instead of focusing on the size of a division’s profits.… Read the rest

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Blue Ocean Strategy – Shift from Red Oceans to Blue Oceans

“Blue Ocean Strategy” by W. Chan Kim and Renee Mauborgne is a strategy that challenges companies to distance itself away from fierce competition by establishing uncontested market space that makes existing competition irrelevant. One of the reasons why the authors have used the colors red and blue is to describe the market. Red ocean is the market space where industry boundaries are defined and known. The red ocean contains a massive conflict between companies where they are constantly trying to outperform each other to achieve a greater share or demand. When market spaces become crowded with competitors, companies try out perform each other and profits and growth is greatly reduced due to cutthroat style competition which turns the red ocean bloody.… Read the rest

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Business Analytics – Meaning, Use and Scope

Business Analytics deals with the methodologies employed by organizations to enhance their business by making optimized decisions with the use of statistical techniques that might involve data collection and analysis. Business analytics might require many complex techniques that need advanced statistics.

Applying Business Analytics, it may be possible to find how a territory or a region reacts to certain product variations or added features. This information can be very useful in devising new product line with features that are likely to maximize sales in a particular region for a set of target audiences. A proper analysis of data might also tell about things like recurring customer support issues and thereby proactive steps can be taken before it grows out of proportion.… Read the rest

Abey Francis

Blue Ocean Strategy: Discovering the Untapped Market

Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Since, dividing up existing demand and benchmarking the competitors, Blue Ocean strategy is regarding grow demand and break away from the competition. The business universe can be thought as a composition of two kinds of oceans the first is the red ocean and second one is the blue ocean. Red ocean includes all the industries which exist today and it is about the known market space. But on the other side Blue Ocean can be considered as industries which are not in existing today and it is called unknown market space.… Read the rest

Abey Francis