Introduction of Market-Based Management

Market-Based Management is found on the principles that cause societies to become wealthy instead of mired in poverty. It sees the business as a small society with exceptional features requiring variation of the education drawn from society at large. Through this variation an organisation could build MBM structure and ever-evolving mental models.

Market-Based Management is a holistic approach to organization that incorporates theory and practice and organizes businesses to deal effectively with the challenges of change and growth. It also draws on the training learned from the failures and successes of individuals to attain prosperity, peace and organisational progress. Thus, it involves the study of the history of economies, politics, societies, cultures, governments, businesses, conflicts, science, non-profits and technology.

Market-Based Management is the exceptional management tactic developed and executed by Koch Industries, Inc. It is a company philosophy that is embedded in the science of human action and functional through five dimensions: Vision, Knowledge Processes, Virtues and Talents, Decision Rights and Incentives. Koch Industries’ MBM Guiding Principles articulate the rules of just conduct and describe the main values which direct the day by day business activities.

Market-Based Management is an approach of philosophy which centers on using the tacit knowledge of workers to the benefit of the business. It is stand on creating a situation where workers can feel secure to speak their opinions and question decision making, because the values and the culture permit it. Market-Based Management was based on the fact that capital, ideas and talent are permissible to flow freely and is situated where it is most likely to produce wealth and innovation.… Read the rest

Adoption of Blue Ocean Strategies in Business

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. Functional strategies aim to maximize resource productivity and are typically set by functional departments within each SBU to improve competencies and performance.

Blue Ocean strategies are a form of business level strategies that enable firms to achieve sustainable competitive advantage by tapping uncontested market space. Developed by INSEAD professors, W. Chan Kim and Renee Mauborgne, Blue Ocean strategies were derived from analyzing winners and losers of more than 150 strategic moves across 30 industries, including hotel, cinema, automobile, retail, airlines etc., over the course of several years. Read More About: Blue Ocean Strategy

Conventional competitive or red ocean strategies encourage firms to choose between value and differentiation to compete in prevailing markets with clearly defined boundaries and conditions. In red oceans, firms aim to gain market share by exploiting existing demand and overtaking competitors. Ruthless competition in red oceans confines companies to benchmark against competitors, and make incremental improvements that increase costs without increasing revenues or having much impact on demand.… Read the rest

The Concept of Hybrid Managers

A hybrid manager can defined as a person who possesses strong technical skills and adequate business knowledge or vice versa. He should have the required skills needed in the technical as well as the management aspect. Along with that, he should also possess the management competences like communication skills, negotiation skills and also he should be able to motivate others working under him. A Hybrid manager should be able to reduce the gap between the business and technical aspects of the organization and build it with his expertise. Any organisation which has business and technical department working in tandom with each other has an advantage over other organisations whose technical and business department is not integrated. And this role of integration of the business and technical department is performed by the Hybrid managers.

Characteristics of a successful Hybrid Manager

  • Self-motivated/like being challenged – A successful hybrid manager is self-motivated person. He does not need any external factors to motivate him/her. His motivation lies within. Whenever any kind of problem or complication arises, they have the ability to make decisions. A successful hybrid manager is the one can take care of issues his own. They set high goals and always look to reach at the top. They have the confidence to step out of their comfort zone and try new ideas and strategies.They will never give up. If stuck somewhere, they will try for various options to get out of it.
  • Intelligent in the broad sense – A successful hybrid manager has very good technical skills.
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How to Ensure That a Business’s Finances Are Kept in Order

Do you struggle to keep your business’s financial affairs in order? It’s an area that can cause many difficulties for a business owner or the decision makers in a company. However, there are many ways you can address this issue, so that you can focus on the more productive aspects of your organization. Below are some of the main ways to ensure that a business’s finances are kept in order.

Taxation

Every business must adhere to a wide range of tax laws and regulations. However, this is an area that keeps changing and evolving. It’s crucial to keep up-to-date with the latest taxation developments, so it’s advisable for you or someone in your company to increase their taxation knowledge by taking an appropriate taxation course provided by a college or university like Northeastern University.

Thanks to a range of online master of science in taxation programs, this is not as difficult or disruptive as it sounds. An online MST program can be completed over the internet, which means that a student can study at home, at work, or from any location that suits them. As well as this, you can study at times that suit your current lifestyle, which means you can carry on working as normal.

Hire the Right People

It’s vital to hire financial professionals who know exactly what they are doing. Some businesses may only require a single financial expert, while larger organizations need a wide range of financial professionals including accountants, bookkeepers and financial advisors. Make sure you have a strict hiring process that ensures that only the best financial experts work for you, because these are the people who could make or break your business in the future.Read the rest

How to Develop Positive Relationships with Individuals and Organizations Outside of Your Business

It’s vital for a business to develop as many external contacts as possible. This simple approach can lead to valuable relationships and opportunities that would not otherwise have occurred. Below are some of the best ways you can develop relationships with individuals and organizations outside of your business.

Develop Your Communication Skills and Communication Channels

Before you reach out to certain individuals and organizations, it’s important to prepare properly and have the skills and knowledge required for communicating in an effective way. For instance, if you want to interact with local government representatives and agencies in a more productive way, you may need to hire a consultant or someone who has completed an online masters in public administration and who has a great working relationship with the public sector.

In other situations, it may be a good idea for you or someone in your organization to enroll in an online master in public administration degree course or similar program provided by universities like Norwich University, so that you have a permanent person in your company who can deal with government entities that can help your business.

Attend Networking Events

Most people prefer to deal with other individuals and businesses they are familiar with. This means you and your business need to get public exposure. Attending networking events like Chamber of Commerce meetings, conferences, and industry seminars is an effective way to do this. The more times you are seen at these events, the more people will become familiar with you and start to trust you.Read the rest

The Toyota Way Philosophy

Japanese quality movement was a miracle and created world-class products. All these methodologies and concepts developed these quality gurus for internal process and quality improvement crisis are still practiced in various companies. These have become universal approach to improve the quality and manage performance crisis.  Quality gurus created work culture and dedicated teams, which developed Japanese production systems through group activities. Toyota Corporation developed a new philosophy to create major change in manufacturing systems and delivered world-class products with internal benchmark for quality of vehicles. In reality, Toyota changed external business environment for competitors and created a long-lasting impact on automobile industry.

The Toyota Way is a set of principles and behaviors that underlie the Toyota Motor Corporation’s managerial approach and production system. It consists of principles in two key areas: continuous improvement, and respect for people. Toyota use operational excellence as a strategic weapon. Company places the highest value on actual implementation and taking action. By constant improvement based upon the actions, one can rise to the higher levels of practice and knowledge. Toyota success story can be summed up by using three models, which are used by Toyota Corporation. These models are explained below;

1. 4P Model

Toyota has developed 14 principles for performance improvement. These principles are guiding thumb rules in Toyota. These 14 principles are divided into four sections and a unique 4P model is developed. Major thrust is given on teamwork and a systematic approach is developed by using these principles. These 4Ps are Problem Solving, Process and Partners, Process, Philosophy.… Read the rest