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Business buying is a process by which a business defines its need for a product or
service, finds out a various vendors supplying the product, scrutnises each vendor
carefully and then decides which is the best suited one. The next step is the action
step of placing that.
The no. of buyers is small in industrial buying process and supplier grid is well coordinated
and well known.
The marketing person shold be looking into the foll. Aspects in the buyers organization in
industrial sales:-
1) the decision making process
2) the hierarchy of decisions including recommendations
3) culture of renovation or status quo
4) purchasing from headquarters only
5) product grouping like ABC analysis
6) Long term business contracts
7) Short term business contracts
8) On the spot buying
9) Seasonality of their business and their purchasing
10) Simple vendor preferences which could be manifested by either single vendor or
multiple vendor
11) Payment reputation of the buyer (prompt payment buyer or delayed payment
buyer)
12) Associated businesses of the buyer and other assets and liabilities
13) Firms reputation amongst vendors
1) inventory status, max. and min. stock plans for each item to be purchased
2) reordering levels which depend on the difficuty of procuring the product due to its
lack of supplies it being far off in terms of deployment or the seller even may be
located overseas
3) storage space
4) Just in Time
5) Past experiences of project rejections
6) Production plans taking into account the seasonality of the demand of buyers final
products
Competition comes if the buyer stats the vertical integration i.e. its start to manufacture
what it was buying from a selling firm.
Forward vertical integration is when the vendor starts manufacture the product it was
selling.
Backward Vertical Integration- in this the buyer starts to make the component he was
buying. For eg the manufacturer of TV sets also starts manufacturing picture tubes which
he was otherwise outsourcing. In all such cases the seller looses the consumer.
Final vendor selection needs careful scanning of foll aspects given below. This is apart from
the scrutiny of the technical and commercial bid of the vendor.
1) past record of the vendor
2) list of vendor customers
3) financial status of the vendor
4) vendors flexibility of supplying
5) Testimonials from customers abt the quality of product
6) Visit to a manufacturing unit where the product may be used and/ or under
manufacture
16/10/2010
B2B Marketing
Chapter 2
Marketing is a system of interrelated activites designed to develop, price, promote and
distribute bith goods and services to a grp of customer.
The societal cponcept of marktng is a philosophy that defines the satisfaction and delight of
customers on a long term basis , decides welfare of public using a holistic approach for
marktng to reach qualifies organizational goals.
1) product improvements are based on new technologies and at times reduce the cost
of manufacturing
2) higher allocable surpluses i.e people having bigger buying power
3) availability of large variety of goods at very comparative prices
4) more knowledgeabe customer with increase advertising exposure
5) improved methods of product placement to bring them with an easty reach of
customers
6) superior a new media availability for better access to segmented markets
7) better techniques available for marketing research to keep marketers better
informed about current market needs
Marketers sell the product which can be classified as follows and it also provides us the new
market tuuesim:-
1) change products to products and services
2) change customer satisfaction to cust. Delight
3) change product quality to product perceived value by the customer
Existing industrial and business world comprises certain functional area which includes the
foll:=
1) marketing
2) finance and accounting
3) HRM
4) Production
Societal and physical factors for B2b ma
1) political and legal environment of the country
2) macroeconomic environ
3) geographic effects
4) moral values , ethics and beliefs of the populace
Companies which plans to enter int. markets for B2b has foll objectives
1) acquisition of resources
2) diversification plans of the co.
3) minimization the risk from competition
4) expansion of sales volume
phases of marketing
mktng goes
1) opportunity based marketing
2) structured formula based marketing
3) customer centric marketing
marketers sell the products which are classifoies as follows ain b2b
1) consumer good including the foll
a) consumer durables like cars, refrigerators, ac etc
b) FMCG products like soaps, shampoos, petril
2) industrial goods include
a) capital goods like cotton nills, steel rolling mills
b) raw materials and components like Tv picture tubes, plastic, wood, cotton etc
c) consumables like power , water, gas
3) services like hospitals, hotel and travel agencies
Philip Kotler “ Marketing is a social process by which individual and groups obtain what
they need and want through creating offerings and freely exchanging products and services
of value with others”(imp)
Marketing Defined
Market for the product can be defined as the geographic area in which most of the buyers
decide
The physical market and a virtual market which has laso emerged as it allows shopping by
ogging on to the internet
Note:- manufacturers are customers of raw materials just as consumers are customers of
manufactured products
Buying and selling are legal transactions which are governed by a sales contract.
A sales contract has the foll characteristics:- ( at least)
1) at least 2 parties
2) A product/Service one party wants to sell and the other wants to buy
3) there is a price or consideration to be paid in exchange of goods and services
4) the exchange of products. Service with its price takes place with total consent and
willingmess of all parties concerned
5) each party must believe that the transaction must have been fair to them
6) the product to be sold must be a legal/ legitimitae product for the contract to be
valid and legally binding on the parties concerned.
Sales process
1) There are usually two parties to a sale i.e the seller and the buyer.
2) there has to be aproduct and consideration against which the seller is going to
transfer the produvct ownership yo the buyer i.e the price of the product.
Seller Customer buyer
Price
In a largr Contxt with several players offeringthe same product is also whwn a
situation emerges when there are a large no of buyers we can depict in a
graphical fashion as outlined below:-
1) India looks at market globalization and this has had a positive impact in
indian economy post liberalization
2) India has recently undergone market recession
3) Large no of women in workforce including in works of strength
4) Large production capacity mostly idle
5) Emergence of IT sector and also its decline
6) Growth of management schools
7) Strong satellite base with Tv and multiplicity of channels which has given
jobs to millions
8) Invasion of Chinese products in various fields
9) Political problems including external and internal threats to India
10) Religious fundamentalism
11) Privatization of govt. owned firms
12) Genetic engineering and its effect on farm production
13) Rampant misuse of funds is very common in India
It is important to find out where does the market exists and for b2b marketing
answers to the foll. Questions are important:-
1) who wants the product?
2) when does he want the product?
3) Where does he want the product?
4) What price is he willing to pay?
5) What is the purpose for which he is buying the product?
6) What is the product do for him in his life?
7) What are the factors which influence the buyer when he purchases the
product?
8) Who are the competitors?
9) What are the plans of the competitors?
Categories of Buyers
For each firm there are foll categories of customers:-
1) The buyers
2) The non buyers who buy the competitive products
3) The non buyers who do not buy the product at all
4) The non buyers who buy the product only rarely
5) The vacillators( who can not make up his mind) who keep shifting bet the
firm and its competition
Basic Concepts
Market Segmentation
The concept of segmentation focuses on a particular group of class of customers who
would be definitely interested in the product
Targeting Markets
Marketers have to decide which market they want to sell their product to and these
markets become the targets of the firm
Product of Service
Satisfies the consumer needs or provides the benefits sought by the customer
CRM
It is a customer centric business strategy that requires alignment among people,
processes, and technologies to achieve growth and profitability.
The need of customers are given below :-
1) Known Needs- clearly perceived by the customer . Like need for a house
2) Unknown Need- Need for a low cost house in the vicinity of his office and
school complex
3) Unspecified Needs- the need for water and phone connections in the house
4) Need for customer delight- like free membership of clup when house is
bought
5) Need for social approval, need for peer group and friend circles
approaching and appreciating ur house.
1) For development of product firms must watch out for foll areas
a) do they have the infra 4 pdct dev
b) can the allot or allocate the required resources, financial and other human
resources for the project
c) does the management accept that all research would not bear the fruit and still
ready to invest in the market
d) would the firm give the autonomy to the development team?
e) Does the firm have a history of development successes or failure
Buyers will look at the buying situations which can be categorized as follows:-
1) first buyers when a new firm makes a purchases and an old firm tries out a new
product
2) re buy takes place when a satisfies buyer buys the product again
3) modified re buy is made when the manufacturer accepts customer suggestion and
the product is suitably modified to suit the firm
4) new task purchase depends upon the launch of new product and is planned
accordingly
Positivism
Prediction of buyers action which can be quantitative survey based
Consumers Rationale and weighing of alternatives is very imp.
With market study it can be predicted that X% customers will definitely buy the product
Interpretivism
This is understanding of consumers and practices and qualitative..
Each uses experienced by the consumer is unique and research findings can be subjective
It can not b visualized of generalized and it is not easy to predict how many buyers would
eventually go 4 repurchase of the product.
Competition Types
There are several type of competitor in the market as :-
1) Monopoly when there is only one supplier of the product in a given geographic
market
2) Oligopoly when the supplier are made up of as small no of major firms. Firms
making core raw materials like iron, steel , oil generally belong to this category
3) Differentiated Competition- it is a phenomenon essentially of the Indian market
industries divided into large scale organized players and small scale assemblers,
sellers of pirated goods
4) Fragmented Market- There are several supplies of the product in the market with
similar products and hence pure and perfect competition generally runs this
market
Competitor Strength
Competitors can be classified as per their strengths and mindsets of their management as
follows:-
1) market leader
2) major competition
3) minor competition
4) unsatisfactory competition
5) problem competition
Comparitive Action
If a firm can not beat the competitor it should join the game with similar/ diverse
strategies.
Competitive management
1) reaction time to competitive management
2) marketing strengths, efforts to increase market share
3) finance and ability to generate funds
4) operations, timely deliveries
5) purchase trough optimum use of funds
6) profits or lack of profits
7) reactive or proactive policies
Chapter IV
Sales Force Management
Consumer Products
As the co. identifies the various consumer groups which are widespread geographically
the territories can be divided as given below:-
1) equitable sales potential ( while dividing north India rajasthan may have lower
potential and hence the sales manager in his discretion can add rajasthan to
harayana state as the sales territory.
Foll. Aspects should be understood:-
a) concentratiuon of business
b) ease of territory coverage which will help in reducing the backtracking for
the salesman
c) product range specific areas on the basis of demographic divide
d)
Sales Targets
the common method of target fixation is given below:-
1) territories total business potential
2) strength of sales team
3) competitive strength analysis in the market
4) environment affect business on the territory
5) targets must all be achievable but with a stretch
Sales Forecast
Sales forecasting helps the firm in foll activities:-
1) building production capacity
2) controlling inventory and dictating levels of inventory
3) pricing decisions
4) recruitment and training of salesman
5) increase in geographical area of sales based on potential sales likely to happen
6) providing after sales service, guarantee and warranty services
Sales forecast for the entire country is the sum total of forecast of all the territories plus
the plans of its exports mad eby its sales manager. Forecasting export trade is done on the
foll. Basis:-
1) country wise sales plan
2) service facility needed in each country
3) competitive products
4) general and competitive business environment in the countries
5) political stability of th country wiyh whom trade is being done
6) relan with foreign govt
Prospecting
This can be divided into 4 Parts:-
1) advantages of having skilled salesman in the technique of prospecting
2) learning the methods and sourcrs of identifying and locating the worthwile
prospects
3) qualifying the prospects i.e by understanding more desirable prospects by less
desiring prospects
4) understanding the relationship bet. A prospect and creative selling
KEY OBJECTIVES
Establishing
For ax a sales person wants to establish a new style of denim.
1) To get the agreement of the buyer about the need of the denim.
2) demonstrate the new denim to the key individuals.
3) convince the buyers that the price and other terms of business are
right and get the order.
_____________________________________________________
_____________________
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Approach Presentation Objection Close
up the deal
PRESENTATION
1) when the salesperson comes face to face with the customer the first
few minutes will make a vital impact on what will happen afterwards.
2) Summarising after the repo has been established , the salesperson
needs to have a technique of bridging the gap between social
conversationa nd very
serious business talk.
SALES PRESENTATION
1) The sales person knows that unless he has a defined objective, has
obtained the essential information and planned the right tactics he
should not even
attempt a call on the prospect
2) All sales person should develop a benifit story using possible benifits
of the product and writing down a paragraph for each benifits that will
help
you during the presentation.
a) Benifit paragraph - comfort
b) benifit paragraph - economy
c) benifit paragraph - prestige enhancer/ lifestyle product
d) Benifit paragraph convineince
e) Benifit paragraph safety
Develop techniques after the story has been told to maintain prospect in.
a) customising or individualising the benifits
b) Using descriptive language
c) participation
d) DELIVERABILITY
E) pRICE OBJECTION
DEFINING COUNTERING
SALES SALES
OBSTACLE OBSTACLE
1. HABIT 1. STRESS BENEFITS OF
2. FAIR YOUR PRODUCT
3. PRICE OF PRODUCT 2. STRESS GOOD
4. COMPLAIN ABOUT YOUR QUALITY OF YOUR
PRODUCT IN MARKET PRODUCT
5. DETAILS 3. STRESS POOR
6. LACK OF AWARENESS QUALITY OF
7. COMPETITION COMPETITOR’S
PRODUCT
4. HIGHLIGHT PRESTIGE
OF YOUR PRODUCT
5. HIGHLIGHT
PERSONAL PRESTIGE
OWING YOUR
PRODUCT
6. HIGHTLIGHT PRIDE
7. HIGHLIGHT
ASSURANCES OF YOUR
PRODUCT
8. HIGHLIGHT STORIES
OF YOUR PRODUCT
9. HIGHLIGHT
EXPLANATION OF
YOUR PRODUCT
10. UNDERSTAND THE
MOOD AND MANNER
OF CUSTOMER
11. LEARN HOW TO
ANSWER THE
QUESTION OF
CUSTOMER
12. PROGRESS SIGNATURE
GIVEN BY CUSTOMER
13. REOPEN OBJECTIVE
MIND TO REASON
sales team has the following tasks cut out for them
Dividing their sales area into terrotories that can be managed by single
sales person which are easy to cover, have enough business potential
and do not
frustrate the sales person.
Correct recruitment of the ales team
training of sales personal
monetoring and supervising the sales team for ensuring that they
achieve their target, expense budgets and generate the sort of
profitability the company requires.
Motivating -
Appraisal
B2B MARKETING
INTERNTIONAL
=====================
=========
GDP- This takes into accont the entire domestic production irrespective
of the fact that the production if from the indian resources or the
foreign resources.
Manufacturer------------------->
Reasons -
1) technicalities have to be explained to the customer which are best
done by a manufacturer.
2) large sums of money are involved and the customer wants a best
price without a middlemens commission.
3) installation and probitioning of ..is involved which is best done by the
manufacturers engeeneer,
4) aftersales service is complicated.
Market communication
Body
of Flow of marketing circle…flow of money…bofy of buyer
seller money
Feedback,
information,satisfaction,
dissatistfaction
As can be seen in industrial goods the sale is made either directly to the
customer or made through a distributer ,capital goods sale is made
directly most of the time…. The reasons are:-
Management game….
Mckensy 7s model
structure
strategy system
Shared vision
skill style
staff
7s model
Strategy :- is a set of actions , plans and policies which are aimed at
obtaining sustainable competitive advantage for the firm
Skills are the capability of the combined set of people in the firm
Shared mission:
At times the new version may sell much more coz there may be latent
demand for it that surfaces once it is introduce in the market and can be
seen from the following aspects
1) existing products-competitive products-comparative
stement/assessment
2) best fit as per customer requirmemnt
3) assessment of modification needs if any
4) redesign the product- tested with the customer requirement
5) Gives sample for trial
6) Get customers feedback and act on it
7) Get a long range business perspective for the product
Industrial buyer
low overall purchase cost
Ease of storage
Easy inventory management
Ease of product usage
Training by the seller in product usage
Longer shelf life for the product
JIT supplies by the seller if required to keep current asset low and
improve cash flows
B2b advertising
This is important for mainly for creating awarness about the
company, improving brand image and for proving products
technical specifications
Companies can opt for technical journals pertaining to the buyer’s
business as media, besides at times journals pertaining to the buyer’s
business has also t.v can be used
B2B pricing
Pricing strategy is of foremost important in b2b pricing coz in the
competitive business buyers prefer low cost suppliers everything else
being common. However the buyer must be aware of certain hidden cost
that do not get reflected in the price quotation that companies submit to
the customer
Hidden cost are given below:
Cost of certain spare parts essential to the products
Cost of accessories required
Cost of transportation
Cost of instillation and commissioning of equipment purchases
Cost for training of buyers personnel into proper usage of product
Cost of user material and any other component
B2b payment terms
Industrial customers tend to prefer buying of those products especially
capital equipment generally on credit and the company offering longer
credit period in B2b marketing period is Usually preferred
Most capital goods are sold on the basis of sale of total package
consisting of the equipment
1) equipment
2) necessary accessories
3) recommended spare parts
4) installation and commissioning with required piping
5) training of buyers personnel in proper use and maintainence of
the equipment
6) field trials wherever required
7) guarantee and warrantee for the equipment
selling team
manageing director
finance manager
r&d manager
production manager
purchase manager
Buyer’s team
Managing director
Technical mamger
Finance manager
R&d manager
Technical systems manager
Marketing manager
Market demand
Demand for B2b business are generated in the most unpredictable
manner and hence the demand analysis by the seller is a difficult task
The seller have to keep their eyes open all the time besides they have to
keep accessing the demand looking at areas outlined below
Customer’s plan for expansion, renovation and modernization
Historical business numbers
Business or demad trends as predicted by industry pundits ,
magazines and journals
New government rules regulations and policies
New sunsitute products in the market
Demand of the customer’s product that uses his logo
Business analysis
Market analysis Firm’s analysis Competitive analysis
Size of the market Level of customer Sales performance
satisfaction/customer
delight
Growth Prospects Brand loyalty Market share
Experience barrier
curve/ exit
Value Chain
Knowledge is Business
The seller must be fully aware of the entire business scenario that
affects the overall business and which include sthe area given below:
a) B2B marketers must have a detailed understanding of 2 aspects
i.e customer and customer intentions and furthermore they mist
understand the decision makers, business initiators, advisors,
evaluators and gatekeepers who keep unwanted supplies out of
their race through their clout.
b) They must know fully well the product, its USP , its benefits, this
has also utilatirian advantages to the customer. In addition B2B
marketers must become testimonials from other customers
c) Fully aware of major and minor competitors, theori streghts and
weaknesses,
d) Fully aware of general and competitive business environment in
which they r operting
PR
Sales Target
Advertising
Personal selling
+ Points
Economic growth helps develop comp.
New product mkt development, comp. keeps firm on their toes
Helps in mktng efforts, increase mkt share
Provides info to customer, ensure squality of product, increases
demand
- Points
• Expenditure can be avoided, creates comp. on items other
than price, like brand equity
• Creates entry barrier for competition, can equate business
possibility
• Can raise costs and prices
• Wrong info to customer can be given by false ad
Balance Scorecard
Marketing Reasearch
Mr is conducted to get the total maket potential , its possible growth and
strengths and weaknesses of comp in respect of mktng mix
factors(controllable variables in the hand of seller thru which he can control
the consumers)
Starting with the product mktng research can be conducted 2 get ino and
trends in the foll areas.
Competive
SECONDARY INFORMATION:
1.Firms internal sources include profit loss statements, inventory levels,
sales visit reports, previous maktng research report
2. Incoming staff members who may be coming from competitive firms
3. Gov publications and notification
4. Trade publications
5. Competitor balance sheet
6. Publication of industry association(picky, cii, and phd chambers of
commerce and industry)
7. AIMA generals
8. Internet management
9. Market research organizations(ORMG) which sell market research
Sales statistics of product delers
Foreign giv data etc
Publications like RBI financial institutions like IDBI, ICICI AND UTI
etc
Steps of MR
Define problem/research objectives --- Define the research
pblm------------Data collection------ >Analyse te data----Prepare the
final report
DISTRIBUTION OF GOODS: (industrial goods)
Manufacture ---distributors-------customer
CONSUMER GOODS:
Manufacturer -----customer
Manufacturer ----sole distributors ---sole distributor own
channel
Manufacturer ---area distributor------dealer reailer
CHAPTER 8.
STRATEGIES FOR B2B MAGMTIMP
II.
COMPETITION :
CHAPTER 9.
COMPETITIVE ANALYSIS
2) Customer analysis
This includes the foll elements of internal information, processesing guided by
external info and stimulai….
a) beliefs
b) perception
c) attitude
d) preferences
Market ananlysis
Foll needs to be understood when analyzing the market
a) market sizw, actual and potential
b) market growth prospects
c) maket product wise profitability
d) cost str
e) distribution pattern
f) success parameters
Industrial buying of raw materials and componesnts from supplier must address the
fol issues
a) company size
b) innovative companies with a lead user concept
foll make for a good market segment for a industrial products:-
a) the segment should of adequate size
b) segment should be concrete with justified measurable base for each segment
Product Positioning
Foll steps are needed
a) identify a relevant competition
b) to dreaw thw differential benefits and attributes d\significsnt to the segment
where the firms score better thamn the competition
c) delineate firms and competitors current position
d) sellout/setout segments
e) select positioning strategies
f) communicate the position
Cost Leadership
This is gained through:
1) technological advances
2) input from suppiers and cust
3) economies of scale which help in reducing the fixed cost as for larger prodn
rentals, supervisors salary, and other overheads do not change very mich and
therefore the unit fixed cot would nsee a gradual reduction
Experience curve
E. C which helps in reducing the variable cost as with passage of time the workr get
to knoe =w the working proper and wastage is reduced besi\
This is most valid in :
a) high labor cod\st industries
b) complex assembly line operations
c) prodn of hign no of stanadard products which helpo wirker in repetitive
works
Portfolio analysis takes place as also takes into account that largr multiproduct
firms have synergies within and lead to provide resource sfro growing their
attractive businesses, divesting, poor performers with unatteactive profit / losses.
They lead to divert resources from mature and stable businesses to attract a new
promising businesses.
Portfolio analysis empowers managers to balance fuature and currenet
opportunitu=ies by accessing business attrativeness and competitive position of the
business in a 2 dimensuional matrix.
PRESENTATION BY SIR
Globalization:
Combines (economiecs+technologies+social+cultural+political)forces
among diff countries.
1) FTA
2) Custom Union
3)
4) Political Union (Mirage)
4 Pillars of Globalization
1) globalisation through trade
2) globalisation through investments
3) globalisation through human resource
4) globalisation through exchange of knowledge
Globalisation is:-
a) Accountability
b) Terrorism
c) Shrinking world
d) Integration of economy
e) Equality/ inequaity
f) Communication
g) Recognition to brand
h) Trade Vs aid
i) Outsourcing
j) Technology / internet
k) Free trade
l) Culture
m) Capitalism
n) Brands
o) Exploitation
p) Poverty
q) Growth
r) Monopoly power
s) Environment
1) Domestic market
2) Int mar
3) Multinational
4) Continental
5) Global Market
12 major ports
108 small ports n India
Internationalization:
Refer to the importance of international trade/relations/treatise etc
Among /between nations
in global strategy the firms adopt and adapt their int planning on the lines of single
global strategy
co. having diff products, brands and marketing features for each country follows
multi domestic strategy
a combination of the above to is cakled a hybrid strategy
09/12/2010
International strategic management process
1) Ethnocentric orientation – a firm/ mnc of ethnocentric orientation… will rely on
value and interest of parent country formulatind and implementing strategy.
Primary emphasis is on profit and the firm will try to run its operation oversees in
the same manner as it runs at home
2) Polycentric- a mnc with polycentric predisposition will tailor its strategic plan to
meet the needs of host country culture . if the firm operates in more than one
country the overall plan will be adopted to understand the needs and sensibility of
the host country.
3) Regiocentric predisposition- a mnc with a regiocentric predisposition will be
interested in oth profits as wel as public acceptance at a regional level. In other
words regiocentric predisposition will imply an acceptance of both ethno and
polycentric orientation
4) Geocentric- a mnc with this approach will view operation from a global
perspective . they hire the best people in the industry irrespective of their religilion,
region, nationality.
Steps in strategic management process in international marketing
Typically the strategic manag process of an int. business comprises 4 major steps :-
1) scanning of globl environment
2) formulation of strategies
3) implementation of strategies
4) evaluation and control
Implement strategy
12/12/10
ENVIRONMENTAL SCANNING
Scanning of external environment provides mgmt with accurate
forecast of trends tht effects the future of businesses
External environ comprises economical, political ;legal forces
cultural and technological forces
Internal environ comprises of three specific areas
a. Mission statement
b. Physical resources
c. Personal competencies
The way in which value chain analysis can be used to bring these
resources together in the most profitable manner
1) the value chain stipulate that the total revenues – total costs if all activities
underytaken to develop and market a prdct or service will give revenues
2) a firm may be profitable as long as total reveniue exceeds total costs which are
incurred in creating and delivering the product or service, every firm will have its
own value chain
3) management of any business shud understand not only its own value chain and
operations but also of the competition , the sullpiers of the competition and the
distributors value cahain.
Broader Perspective
External Influence
IHRM
1) HR planning
a) difficulty in implementing HR procedures in host country
b) difficulty in time, strategic business planning in HRP and vice cersa
c) providing developmemtal activity for int managers
2) Employee Hiring
a) ability to mix with org culture
b) ethnocentric, poly, geocentric approach to staafing
c) selection of exptriates
d) coping with expatriate failures
e) managing reptraite process
3) T&D
a) emphasis on cultural training
b) language training
c) training in manner and mannerism ( courtesy)
4) compensation
a) devising an appropriate strategy to compensate expatriate
b) minimizing discrepancies in pay bet host and third country nationals
c) issues related to reentry of expatriate in home countries
5) performance management
a) constraints while operating in host country needs to be considered
b) physical distances, time diff and cost of reporting adds to the complexity
c) identification of raters to evaluate the performanv=ce of a subsidiary
6) induastrial relation
a) whos hud handle ind problem in a subsidiary?
b) what shud be trade union tactics in subsidiary?
c) what shud be the attitude of parent co towards union in the subsidiary ?
IHRM Process
T&D
Remuneration
Repatriation
Employee Relation
16/12/2010
Marketing
Evaluating the marketing strengths of the firm we examine the foll areas:-
a) Marketing environment- markets, customers, brand equity, competition
levels, economic trends, money supply position in market, legal issues, social
development, causes and problems besetting in the market.
b) Market action- products, pricing, distribution, channels of distribution, ad
and promotion, personal selling and publicity.
Real questions to be asked during strategic audit are summarized
below:-
1) Customers primary and secondary level of satisfaction r always derived from
the product, the idea of product as soled by the firm and the customer
viewpoint of what product is he purchasing
2) Environmental issues shaping the market, competition and the customers,
3) Firms special skills as compared to competition and market
4) Marketing problems and opportunities the firm is facing today and may have
to face in future
Strategic Audit- (imp)- It shud trace the firms growth and standing in the market
place which can be done based on the foll parameters:-
a) market growth
b) acquisitions
c) distributuin channels
d) pricing policies as governed by the foll decisions:-
i) elasticity of mkt demand
ii) govt price regulation
iii) competitors
iv) pricing and promotion
v) price and quality
vi) product strategy
vii) ad and promotion
Organisational Behavior )imp) – for b2b strategic audit the study of organizational
beha\vior takes place in the foll manner:-
a) manager, supervisor and worker- individual behavior depends on persons
education , knowledge base, skills, experience relevant to his present
situation in the firm, family background, family life, any negative history
(say of violence)
b) energy and motivational levels of employers and employee
c) attitude towards firm and with each other
d) team work
Financial Analysis
The audit must take into account that the financial analysis is the starting point of
… strategic audit as also of the management decision making process