2. 3 skills to kill for an exec.. characteristics
Development
Technical
Interaction Skills
Inter groups
• Implication Understanding
Motivation
Communication Creativity
– Judge on Action not trait Attitude to self Whole view
experiences
Recognize feelings Coaching
– Select on skills not traits or Multi skilling
Enlargement
Human Conceptual
behavior Involvement in tasks
Skills Skills
• Leads to 3 roles
– Remedial Conceptual
Intensity
• Conceptual + technical
– Maintenance Human
• Human
Technical
– Innovate
• Concept + Intergroup
Low Level Hi
3. Managing ones boss
• Know the boss • Some errors
– As a person – Info at face value
– Goals & principles – Assumptions & extrapolations
– SWOT – No clarification
– Work style • To build a relationship
• Know yourself – compatible work styles
– Style • Accommodate diffs
– Dependence – Mutual expectations
• Counter dependence • Maintain realism
• Over Dependence • Subordinates problems?
– Flow of information
– Honesty / transparency
– Outcomes
• Good use of time / resources
Peter Drucker on leadership >> good readers and listeners.
4. Effects of Fear – Carl R Rogers
• Experiences are…[defense mechanisms]
– Symbolized [in relation to self]
– Ignored – no relation to self
– Denied / distorted – inconsistency
Gestalt theory >> helps in understanding oneself better ?!
5. Giving Feedback – Philip G hanson
• Builds impression of • Issues in feedback
– Trust care & acceptance – Indirect VS Direct
• Purpose of feedback – Interpretation VS description
– Individual correction • puts person on defensive
– Group goals – Evaluation VS Non Evaluation
– General VS Specific
• Feedback can be – Pressure VS Freedom to change
– Bipolar [2 directional] • Send feelings and recipient should
– Uni polar [1 directional] own resistance to change
– Delayed VS Immediate
– External VS Group Shared
• Then & there, group observes
consistency
– Imposed vs Solicited
– Unmodifiable vs modifiable behavior
• Only on when it can change
– Motivation > Hurt VS Help
6. Creating a good relationship
1. Be what you are [congruent] 1. Let other person be what she is
2. Be transparent 2. Be individual / independent
3. Feeling for the other person 3. Do not be threatening
4. Do not be influenced by your 4. Abstain from external evaluation
condition when applying to 5. Understanding / empathy
others
5. Don’t be bound by the past
while judging
7. Transaction Analysis 1957 – Eric Berne [1910 – 1970]
• Types of Transaction analysis
– Structural Analysis
– Game Analysis
– Script Analysis
– TA proper
Kurt Lewin Father of Organization behavior
8. Structural Analysis [TA]
3 ego states
• Parent
– Limits / discipline / traditions / advice / guidance / rules / law
– TYPES >> Nurturing Parent / Critical Parent
• Adult
– Logic / Rational / Analysis
• Child
– Creativity / adaptations / compliance / withdrawal / procrastination / rebellion
– TYPES >> natural / adapted / Little professor
• Some issues in structures
– Contamination of ego states leading to
• Prejudices [parent]
• Hallucinations Delusions [child]
– Exclusions
• Reliance only on 1 ego state
9. TA Proper
Types
• Simple
– Complementary, Crossed
• Complex
– Angular, Duplex
• Rules to communication
1. Complementary transaction leads to open communication
2. Crossed transaction leads to closure of communication
3. Transactions can only be predicted in psychological level not social
4. Value of communication depends on receiver [ summerton – 1988]
Script Analysis is about games people play
10. TA proper ..continued
• Life positions
• Strokes [ social recognition
– I’m OK you’re OK
unit]
• Only conscious position [best]
– External / Internal [self]
– I’m OK you’re not OK
– Positive / Negative
• Misplaced power / superior
– Conditional / Un conditional – I’m Not OK you’re OK
– No strokes [ worst case] • Inferiority
Summerton
– I’m Not OK you’re Not OK
UnConditional Stroke
4 stroke combo
+ve • Worst case / psycho
-ve
-ve +ve Conditional Stroke
11. Attitudes > evaluative statements or judgments concerning people
events or objects
Some principles
• 3 parts to an attitude • Consistency
– Cognitive [beliefs] – Seek bw attitude & behavior
– Affective [attitudes] • Cognitive dissonance
– Behavioral [behavior] – Inconsistency bw A & B
• Common Attitudes in management – Elements of dissonance
– Job satisfaction – Degree of influence– elements
– Job involvement – Reward with dissonance
– Organization commitment • Self perception Theory
• Acquiring Attitude – Attitudes can be used to make sense out
– Modeling of action
– Reward and punishment – B-> A is stronger than A -> B
– Early exposure • Attitude surveys
– Personality – Help understand stance of people towards
objects.
Lyndon Johnson – Vietnam War [Escalation of commitment]
12. Perception > interpretation of situations
Sub steps of perception Perceptual Organization
Stimulus
Registration Overt Behavior Figure Ground >> perceived
Leads to
Interpretation Covert Behavior objects stand out from background
Feedback
Perceptual Group
•Closure [gestalt] > perceiving as a
Perceptual Selectivity
whole
Subliminal perception – below the threshold •Continuity – things in continuum
Factors that effect selectivity are •Proximity – imparting closeness
External Size
Perceptual constancy >> stability
Internal Contrast
results from a pattern of cues
Intensity Repetition
Novelty Motion
Perceptual context >> The
Familiarity situation
Perceptual set
Motivation
Learning > expectancy to perceive
Personality > Age & time frame
13. Perception > interpretation of situations
What leads to perception
Needs Trained Incapacity Perceptual Defense
Interests Beliefs
Tendencies Mental set [expectations] Happens againt threats,
[self concepts] unacceptable explanation ,
inconsistencies
Emotionally disturbing information
>> Has high threshold of
Biases in perception
recognition
HALO >> one characteristic
Doppel Ganger >> similar characteristics Disturbing information / stimuli >>
Stereotypes > grouping substitute perception
Projections >> Ourselves onto others
Defense >> when there is Inconsistency & Emotionally arousing information
threat >> Leads to directed behavior
14. Motivational Theories
• Need >> Zimbardo 1979 • Maslows hierarchy of needs
– Biological psychological motive • Re inforcement Theory [
condition serves to direct individual
thorndike - How effect]
towards a goal
• Definition >> • Ahievement / affiliation Power –
– Social or psychological condition that
Mc Lelland
– Willingness to exert effort towards • ERG Theory
some goals objectives • Mc Gregors - Theory X & Theory
• Unsatisfied needs arte motivators Y
and vice versa • Victor Vrooms Theory >
• Increase thresholds of needs to expectancy
retain motivation • Adams equity theory
• Goal Setting theory
15. Maslows hierarchy of needs
• Maslows hierarchy of needs Variation in
– Akin to 7 chakra model of hinduism Maslows theory
• There are 6 levels of needs Self actualization
– Physiological / safety / social / esteem / self may not arise
actualization
Higher needs
• Some rules activated without
– Lowers need satisfaction leads to higher level lower level needs
needs
– Fixity of hierarchy of needs
– Relative satisfaction
– Importance of gratification > seed need is not a
motivator
16. Achievement Power Affiliation
• Proposed by Mc Lelland
– Related to managerial effectives [n]
• Achievement [task oriented] Need for knowledge
•Search for meaning
– Excel; succeed; challenges; evaluation; personal
•Cognitive >> desire to
credit
know
• Power •Conative >> desire to
– Dominate; influence command ones way; in- understand
charge status prestige influence delegation
3 levels of learning
• Affiliation •Sharavana [effort /
– Grouping inter-relatedness cooperation memorising]
acceptance •Manana [mind /
• High N-ach reflective ]
•Dhyana [meditative /
• Set high but carefully planned goals
concepts]
• Think of alternatives
• Knowledge of Self
17. ERG Theory
• Propounded by ALDERFER
• There are levels of needs
– There is no hierarchy of needs
– More than 1 level of need at a given time
• Frustration Regression
– Unfulfilling of certain needs leads to regression into lower levels
18. Herzberg’s 2 Factor Theory
• Motivators [extrinsic] • Hygiene factors [intrinsic]
– Neutral to absence – Neutral to presence
– Positive to presence – Negative to absence
• Responsibility • Work conditions
• Achievement • Inter personal relations
• Advancement / Growth • Super vision
• Challenges • Salary
• Work • Job security
• Recognition • Admin & policies
19. McGregors – Theory X & Theory Y
• Theory X – People are • Theory Y - People are
– Intrinsically lazy – Energetic
– Dislike Work – Positive to work
– No creativity – Love doing new things
– Little Ambition – Self motivated
• Need • Need
– Coaxing – Facilitation
– Control – Accountability
– Little Authority – Delegation
– Direction – Freedom
20. JS Adams – Equity Theory
• Equity of output to input is
critical
• Inequity rises when this is in
imbalance
• Reactions Here
– Change input
– Change output There
– Change references
– Quit? Me Other
22. Wage determination Process
Wage Survey
Equivalence matrix >> Differentials in
hierarchies in companies Market
Accuracy of Data [ bias ] Conditions
Valuation of Perquisites
Local Wages
Job Analysis
Wage Survey
Job Description Job Evaluation Job Wage level
Job Specification Gradation of jobs
Performance Performance Payment to Pay
Standards Appraisal Employee System
23. Kurt Lewin Father of
Organization behavior Change Management
• Conflict Management • Force field analysis
– Monitoring / Facilitating / – Kurt Lewin
Autonomy – Systems are in eqilibrium of
– Expert Approach opposing forces
– Facilitator Approach – Increase “FOR” forces
• GE Change acceleration – Decrease “ANTI” forces
– Unfreezing – Moving – Re- • Mutual Identification
freezing – Open Trusting Communication
Hi – Commonality of objectives
Learning
– Indifferent / Common / Oppose
Hi
Level of differences / conflict
24. Decision Making Framework
Hi
STRUCTURED
Understanding / Knowledge
UNSTRUCTURED
RATIONAL POLITICAL
Goal Consensus Hi
25. Jo Hari Window
Joseph Luft & Harry Ingham 4 zones
Others know me
Yes BLINDS PUBLIC ARENA
No UNKNOWN DARK PRIVATE FACADE
Big Façade >> Interviewer
Big Blinds >> Over confidence /
No I know Myself Yes
Un responsive
Big Public >> Open
Big Dark >> Closed
26. Feedback >> my feelings about your behavior
Giving Feedback Receiving Feedback
• Persons behavior VS himself • Elicit and wait
– Focus on behavior
– Don’t evaluate or judge • Listen carefully
• Controllable vs uncontrollable
• Self analyze
• Specific vs general
• Based on Data vs Impressionistic – Don’t be defensive
• Timely vs Late – Don’t rationalize
– Receptiveness / respond rather than react
/
• Clarify
• Suggestive vs Prescriptive – Don’t make assumptions
• Positive Intent vs Negative Intent
– People can get defensive
27. Market Signals >> action by competition that gives indication of intent or
internal situation
• Prior Announcements • Divergence from goals
– Pre-empting | threats | • Announcing results
communication | internal support |
test competitors sentiments
• Cross Parry
– Competitor responds to firm in a
• Public discussion on industry
different area
– Make competition work on same
– Caterpillar entering farm equipment
assumptions & prevent warfare |
vs John Deere
explaining action
– Fighting Brand | Mr Pibb from Coke
• Divergence from industry for Dr peppers
precedent – Private anti trust suits
28. Mergers & Acquisitions
• Elbonian investment? [RJR Nabisco]
– The investor company becomes a fully owned subsidiary
• MBO
– Ethical issue of why management did not run the outfit as well?
– MBO opportunities arise when there is a spin off thereby leading to
chance for increased control by management
• What are the value drivers?
• Need to understand regulations
29. Mergers & Acquisitions
• Disclosure norms of SEBI
• Substantial Acquisition
• ICI demerger into ICI and Zeneca
• HCL –HP demerger
– Avoidance of capital gains
• Poison Pill
– In case of hostile take over, large amount of shares are given at low prices to
share holders
• Crown Jewels lockup
– In case of hostile bid / take over, core business are sold to a white knight
30. M & A Definitions
• Reverse Acquisition
– Poor perform company becomes the transferee in a merger e.g. HT & BT with CW
• Divestiture
– Selling and opting out of a business e.g. TOMCO
• De Merger Spin Off
– Recognize internal value by split & free shares for holders ICI >> ICI Zeneca ….
• Asset Swap
– Exchange of non core for core and delta is dealt in cash. E.g. HLL & Stepan chemicals
• Joint Ventures
– Make subsidiary with another competent organization HCL – HP etc..
31. Modes of Evaluation
• Fee Cash Flows [DCF ] – Standard
– EBIT [1-T]
– WACC [ computed for each year ]
• Equity Cash Flows KeL
– ECF = EAT – Principle repayment == EBIT[1-T] – I[1-T] – Principle payment ==
EBT[1-T] – principle payment
– Discounted at leveraged KeL using net CF of interest & principal payments –
from a pure equity perspective
• Capital cash flows KeU
– CCF == EBIT [1-T] – I
– FCF + IT and discounted at Ke un-levered using assets.
– Interest added back to FCF , cost of un-levered equity
32. Derivatives
Why Derivatives
Asymmetric legal conditions
Avoid transfer of value by internally
generating funds
Value of delta Debt capacity
Forward Contract
Cost of fund should equal the value of stock
So, F = S e^(rT) if dividends are there then
F = S e^(rT) –D e^r(T-t)
33. Strategic Intent
• An objective goal for the firms future strategy
formulation and implementation
• Chandler > strategy through structure
• Scott >> looked at stages [OB]
• Utter back >> Process innovations
• Hammer >> BPR
• Lawrence and lorsch >> differentiate and you will
integrate.
34. S Tilles Strategy Model
Resource
Consistency
Internal External
Goals / Means
Consistency Consistency
Risk
35. Strategy Execution
Peter Drucker H Ansoff Wait
Assumptions Forward
Integration
Expand
Trade offs
Develop Develop
Feedback Markets Business Products
Review
Backward Diversify
Integration BPR
36. Venture Capital Funds
• Ideal VC • Ideal Investee
– 2-3 rounds of funds – belief 1. Industry space and position
– Network capability 2. Management Team
– Active Board participation 1. Experience of the team
• Corporate governance 3. Family wealth of products
– Knowledge of the industry 4. Organization structure
1. Clean simple transparent
• Tag along rights
5. Valuation methods
– Founder cant exit until VC
1. Not more than 1 year
• Mexico syndrome 6. Co investees? – Angels?
– VC has rights to change 7. Exit Opportunity
management if
38. 7 Cs of Communication
• Completeness > 5 Ws and H
• Correctness > right languages, facts, figures
• Concise > non repetition, wordy
• Consideration >positive, pleasant, focus on U
• Concreteness > vivid, right facts
• Clarity > quirks , visual, illustration
• Courtesy > sincere, thoughtful appreciative
39. Business Communication
78% of time and 67% of effort of a manager are in communication
• SMCR Model by Berlo 1966 • Shannon Weaver Model
– Source • Elements
– Message > Content Encoding – Source
Decoding
– Transmitter
– Channel
– Signal
– Receiver
– Receiver
– Effect > in attitude knowledge
– Destination
behavior
– Feedback
• Communication Misconceptions
• 2 types of situations
– Is a fringe benefit
– Homophily > source and receiver are
similar – Is message sending
– Heterophily > source and receiver are – Managers control communication!
dissimilar
40. Human Brain
Left Side - linear Right Side - simultaneous
Speech Emotions
Logic Relations
Language
41. Communication – assessing the receiver
• How will receiver benefit
• What is the receivers status and standing
• What is the receivers level of knowledge – language /
context / facts
• Receivers interests and concerns
• Receivers context and environment
• Secondary receivers ?
42. Communication - Perspectives
• What channel? • Oral Communication
– Write – Intra personal > Listening
• For records, user is busy, facts / observing
info, complicated info with – Interpersonal > Interviewing
details / costs
– Small group > Meeting
– Speak
– Multi group > Presentation
• Interactive, groups, personal,
relationship building, sensitive
– Public > oration
matter
43. Communication – Listening
45% Listening | 30% Speaking | 16% Reading | 9 % writing
• 5 Activities in Listening • When is listening poor?
– Sensing Interpreting Evaluating – Faking attention
Remembering Responding – Avoiding difficult situation
• Listening Key concepts – Tolerating distraction
– Hearing Perception Discrimination – Majoring in minors
Attention sound isolation language – Criticizing speaking style
Meaning Evaluation Retention Response – Wasting time differential
• 4 Types of listening • How to improve listening?
– Content | Critical | Empathetic | Active – Having Focus
• 4 types of listeners – Digging > asking more questions
– Content | Action Oriented | People – Tracking > following & relating
Oriented | Time oriented – Reflecting | Dampening
– Redirecting if there are distractions
– Jotting down ideas
– Not interrupting
– Summarize and evaluate
44. Non Verbal Communication
Proxemics
Types
Body movements – kinesics
Space – Proxemics
Time – Chronemics
Paralanguage < 1.5’
Touch color objects graphics intimate
<4’
Kinesics Personal
<12’
Business /
Facial Eye Contact Gestures Social <12’
Postures Public
Para Language
Expressions / Quirks like ohs ahs
Speed intensity rate pitch
45. Kinesics in detail [NVC]
• Arms Folded • Eyes
– High tight leans forward > – Straight look > interest consideration
resentment / rejection – Shifty drops eyes > don’t rely
– Loose low easy + smile ? Jovial – Looking upwards / rapid blink >
receptive serious but working details
• Shoulders – Raising 1 eye brow > disbelief
– Slouched / bent down > weak – Raising 2 eye brow > surprise
– Winking one eye > flirtation
• Hands over eyes > ashamed
– Winking with nod and smile >
• Slapping forehead > forgotten agreement
• Fingers together in front > • Drumming fingers >
confidence
• Foot signals
• Position changes
46. Interview process
Guidelines
• Phases • Interviewer
– Warming | Main | Wrap up – Plan for | Put interviewee at
ease | Make purpose clear |
• Types several
Guide | Let talk | Listen | Record
– Exchange [info, feelings, exit ]
| End
– Evaluation [job, performance]
• Interviewee
– Persuasion [counsel, persuade]
– Prepare | Proper appearance |
– Control [discipline, conflict
show interest | Answer
resolution]
completely correctly | Courtesy
47. 20 ways to interview success
1. Prepare Qs with purpose 1. Listen ad observe
2. Scout motto – prepared 2. Keep eye contact
3. Jot down main Qs 3. Don’t fear silences
4. Ensure no distraction 4. Have easy right pace
5. Ease the interviewee 5. Ask searching questions > be
6. Take control calm and fact driven
7. Give meeting plan 6. Don’t psychiatrize
8. Ask easy simple Qs 7. Avoid irrelevant references
9. Speak Clearly 8. Take notes
10. Achieve goof rapport 9. Don’t be open ended – TIME
10. End interview with esteem and
dignity intact
48. Meetings & Discussions
• 4 Phases • Management todos
– Forming – orientation info – Track purpose
– Storming – conflict argue – Time Resources
– Norming – rules emergence – Motivation cohesion participation
– Performing –decision majority • Types
• Advantages – Training > orate case simulate
– Personal Involvement Share – Panel > expertise listen
– Cohesion Coordinate – Sales > experience sharing
– Use resources experience – Committee > temp varied
– Exposure to PIE – Task > problems issues
– Command > communication up down
49. Negotiations
• Prepare • Discussion
– Goals – priorities | Limitations – AVOID > interrupting arguing
– Gather info > Issues personalities point scoring attacks Blames
power facts interests inhibitions being clever Talking Sarcasms
– Concessions list – trade offs threats Shouting
– Strategy > simple flexible – PRACTICE > Listen | Question |
Ask justification | Non Commital
– List down tasks
| Test commitment | Seek & give
info
50. Negotiations
• Signals • Bargain
– Avoid concessions of hope | Ask to – DO’s > Firm conditional [state] | decide
elaborate | Respond positive | Test cause exchange and list them up front | bring
and evaluate stone walling back settled issues | keep unsettled issues
linked
• Propose
– DONTS > separate offer from conditions |
– Dos > Strong language like we need to … |
No “If I …Will u “ | separate issues
be specific | try and gain response | be
firm in generals | be flexible in specifics | • Close and Agree
Remedy | – Formal | Write | List agreement | list
– Don’ts > grievance | inconsistence | weak explanations and interpretations
language | complain | interrupting – DON’T’s > not summarizing | not recording
• Package | Giving concessions in closing moments |
Not ending
– List down draggers – concessions
inhibition objections | is there room for
negotiating concessions | list down
conditions
51. Reporting
• Preparation • Introduction [11 elements ]
– Define problem purpose – Authorization Problem Purpose
– List audience Methodology Sourecs Background
• Experience knowledge prejudice Limitation Brief Results Plan of
Responsibility Type presentation Scope Definitions
– List ideas to include • Text
• Hypothesis conditions top headings
– WAC
– Collect material information
• Terminal section
• Secondary > magazines news
libraries government docs – Summary Conclusions
• Primary > files minutes interviews Recommendations
surveys – Appendices References
– Sort Analyze interpret Results
– Organize data
– Prepare Outline
52. Research Paper
• Working plan • Documentation Types
– Outline – Source Footnotes | Cross
reference footnotes |
• Prefatory parts
Explanatory footnotes
– Title | Cover Design | Title page |
Letter of authority | Letter of • Supplements
transmittal | TOC | Table of – Bibliographies.
tables | Abstract Synopsis Exec – Appendices > support info
Summary – Glossary > list of special terms
– Index > list key words
53. Management Accounting
Purpose Cost Scraper
Decisions > Make or Buy Accept or Profit
Reject | Resource allocation |
Product Mix Other OH
Non Mfturing
Over heads
Sales OH
Planning & Control > Costs |
Budgets | Performance evaluation Admin OH
Mfting OH
Full Cost
Manufacturing
Whether Direct /Indirect >>
Over heads
InD Labour
Conversion Cost
significance | Effort of tracing |
ideally more direct costs ! Manufacturing Cost
Ind Material
D Labour
Prime
Cost
D Material
54. Manacc Thoughts
• ABC – Thorndyke > > multiple • Costing Methods
cost centers – Cost + Models
– When to aggregate costing [when • Fixed fee | Fixed + bonus | Ficed +
incentive …..
products spend relatively same times
• Job Shops | Govt Orders |
in each center]
• Full costing > Var + Allocation of fixed
– Cost center level determines decision
assets
making model
– Market / Value Based
– Cost centers should be homogenous
• Price -
within
• Assembly –batch shops |
• Joint products & By Products Competition – Open
• Marginal Costing > Sales price | Vars
– Even materials and labour are
| Volumes [imp to cover fixed costs ]
indirect costs [do you see chicken in
the bone?]
55. Variance Analysis
Total Variance
Output Variance Input Variance
Sales Side Budget Side
Price Volume Price Qtty
Qtty Mix
Purchase Qtty mix
Mkt Gr Mkt
Share
56. Variance Analysis .. Contd..
• Inefficiency of control should not be taken on the
department
• Earlier the variance recognition the better
• Process of control ends with remedials
• Variance bw origin and trace of variance can be used
as learnings for future
57. POM II - Diagrams
Capacity
A1
Generate Alternatives
Desired
A2 IS it Good Yes
Build Model Test
Design
A3
A4
Gap . Factors in
. No capacity
Current . planning
Design An PHASES
IN NPD Variability Inventory
tp tu
Value`
tc
HP Return Map , Performance
Measures for NPD Q
tc
Break Even
Time Q
Time to
Market BE post release
tu
Investigation
Mkt Release Time
58. POM II - Diagrams
6
Q/P
LTL UTL
UCL
ACT PLAN Strategic planning
Tactical Planning
CHECK DO
Operations Plan & Control
LCL
59. POM II Diagrams
Q*
SS
Stores Production
Normal Inventory Cycle
S
q2 q3 P&G Case study
q1
r1 r2 r3 Cross Docking
enabled through
Inventory Cycle with period CRP
Eliminate NVA
Review Activities in the
material flow to retail
Factory Load Warehouse Unload Store Load Transport Retail
60. POM II
60
2 3 2 3
100 100
60 60 100 100
I+1 I+2
70
4 5 4 5
Where merger
Takes Place
60 60 60 60
1 1
Retail
DC / WH Services
Raw Mttl
Plant
Pune Spares
Jamshedpur Telco
Lucknow
End Users
Oils H.Q. Warehouse
Offices
61. POM II
Structure Operations
Product Proliferation
Infrastructure Activities
Relations Tasks
Game Plan Short – Product
lifecycle
Service &
Delivery
Csutomer Uncertainty in demand
Feedback
Distribution
Channels
Inventory & Stockouts
62. Cost
Quality
Failure
Prevention &
Achievement
Profits
# of defects Cost Reduction
Revenue
Inventory Optimal
CAPACITY PLANNING Resource
Deployment
Scheduling
Operations
JIT
Strategy &
Quality
Design
Policy
Quality Flexible
Resources
AGGR PRODN PLAN
Circles KANBAN Workers
Respect
MASTER PRODN for Man
Lead Time Standard Ops
SCHEDULE Single piece Procedures
JIDOKA Flow
BOM
MRP Parts Master Multi-
Visual Control Small
Layout function
Lots
Inventory Morale workers
Improvement in small quantums Gemba Kaizen
63. Finance
Corporate
Low incomes where
Dividend High rate
Taxes dividend is not taxed
Personal
Capital Gains Low Rate high income class
65. Sales
Competition Consumer Environment
Channel
Supply Market
Company Opportunity
Segment
Analysis
Position
Salesmanship Presales Preparation Introduction
Canned
Handling Presentation
Prospecting DATA Approach
Objections
Potential Place routine
Customer Presentation
Time
Information Queries
Mode of Meeting
Market
Descr Explore Causal
New Existing
Management
In-depth a a Division – new
New
Marketing Product Entry
BU
Product
Research
Surveys a a Problems
Existing
Market
Market Entry
Info Needs Penetration
Experiments a
Sources
66. Buyer
characteristics
Buyer behavior
Mkt share – presence w.r.t largest
competitor
10X 1X 1/10X
Buyer decision
arket Stimuli Other Stimuli
20%
process
Shooting stars ??
Market
Mkt GRowth
Decision
New Existing
10%
New
Diversification Prod dev Cash cows Dogs
Product
0%
Existing
Market
Mkt Dev
Penetration Involvement
High Low
Complex Variety
High
Car, seeking
Differentiation
Repeat Client Electronics Soap
First Time Advocate
Suspect Dissonance
reducing Habitual
Low
Prospect Carpet, Salt, rice
Inactive or Partner lampshade
Ex-customer
Disqualified
67. Business strategy
OT ANALYSIS
Opportunity
Hi Lo
Lo
Ideal BIz Mature Biz
Threat
Speculative Biz Troubled Biz
Hi