CRAFTING AND EXECUTING SRATEGY?

Many universities and scholars has doctorate the new mode of strategic management which is called ‘Crafting and Executing Strategy’. Despite of the new approach in developing the strategic plan but many still inquests what is strategy? Some even mistakenly understood or confuse between strategy and tactics. To a bigger surprise, many are still unable to put a right strategy, right business model and link it with the KSF.

Strategy actually deals with the competitive plan and the business approaches that the company shall undertake. On the other hand the business model concern on the cost flowing from the strategy and demonstrate whether the business can be profitable + viable.

After having the business model done, the company has to ensure it is linked to the industrial KSF (Key Success Factor). The business model must be perfectly true to make profit as it is tested with KSF. If the business model is not aligned with the KSF then the business model or the KSF needs some corrective actions.

For that reason this three factors must be in a chain, strategy à business model à KSF. Despite of many people tend to forget KSF or business model; actually all three are crucially important in strategic implementation.

Sample assignment's format for Public Bank Strategic Analysis:

https://www.yousendit.com/download/MVNkWWVzR3N3TGpIRGc9PQ

Slide week 1:

https://www.yousendit.com/download/MVNjSU5BYTJwM2tLSkE9PQ

Slide week 2:

https://www.yousendit.com/download/MVNjSU5ObTgzS3BMWEE9PQ

Slide week 3:

https://www.yousendit.com/download/MVNjSU5OQ1JCTWtLSkE9PQ

Slide week 4:
https://rcpt.yousendit.com/793406452/d80ae7cdb2eafe0b10822a3ab0696fe5

Marketing, is relationship so important?

In many cases of marketing people has been asking me, “Do we really need to build a relationship in marketing?” My answer constantly says YES. In modern marketing, relationship has been demonstrated as a crucial factor and it has been elaborated in detail by Philip Kotler in his books such as Marketing Management and also Marketing Principles.

The transactional marketing is obsolete despite it is still being practice in Malaysia. Most probably for a Hypermarket they might still practice transactional marketing especially to consumable section. But then most modern hypermarket now is not practicing transactional marketing, yet moving to relationship marketing. They started with membership cards, sending invitation to members for any sales or special offers and gift for any festive. These are all ways to build relationship marketing.

Managers has been interviewed that, by having relationship marketing the profit of the company could be improved tremendously since the cost of acquiring customers has been cut except only for maintaining the relationship. Scholars say that the company profit could increase from 5% to even 125% depending on the types of business or industry. They says that, relationship marketing would lead to Customer Loyalty.

Week 4 slides:

https://www.yousendit.com/download/Z01PQk0xSWhCTWxFQlE9PQ

Understanding the moral decision making in business ethics

According to an Ethic theorist, Kant; “in making a decision with regards to moral issues, we must be able to defend a moral decision. The decision must also have a universal moral value and if we can’t agree on the principle if we can’t see the principle being applied.”

In another words, we just can’t agreed to any decision made by saying that it is moral unless we can see the moral principles is applied.

According to Ruggiero’s view; there are 3 main things to be focused on an action which could be as a moral action.

1. Every action by someone good personally or professionally, could only be said moral, when it is found good from the human relationship context.

2. The effect of our action towards a good behavior is a priority in life

3. Any effort taken to reduce the degree of such value when decision is being made, it is considered immoral and this has been agreed by both Consequentialist and non-Consequentialist.

From here it is clear that morality of an action is referred to the impact on human relationship and the any effort to decrease the value is considered immoral.

Question arises, what happen if any action is related to environment and not directly to mankind? The answer is simple; does the environment relate or having relationship to the good life of mankind? If it does then it is related to human relationship.

Due to this understanding, it is important that at any action to be taken and at any course, the moral aspect must be the doctrine.

Note: Book on Ethics that we could use as reference as in the picture above: BUSINESS ETHICS, by William H Shaw; Publisher: Thomsan Wadsworth : RM35.00 ( at University Malaya- Pekan Buku, Perdana Siswa)

Week 3 and 4:
https://www.yousendit.com/download/Z01OZ295VnM3N0JFQlE9PQ

Week 7 lecture slides :
https://www.yousendit.com/download/Z01NbGtONmM5bEJjR0E9PQ

Marketing, advertising, consumer behavior and BOS, a new business perspective

In most business operators, cost savings is the mere important words to them and they have found to have misinterpreted it. In many interviews that I have made, cost saving is done until it effects hiring highly paid skill operation personnel, advertising, promotions and some even reduce the expenses on having a qualified accounts personnel.

The idea of not budgeting for advertising or proper promotion has been an absolute idea. The Gurus of Marketing; Philip Kotler; mentioned in many of his speeches and his marketing books, the importance of marketing, understanding consumer behaviors in business today.

Actually marketing could be run from the cheapest way by having e-marketing and the expensive marketing exercise which is on air marketing in TV or media. The other expensive exercise of marketing is the billboards advertising. Millions of people would will ‘catch and retain’ the informative or persuasive marketing done through this type of marketing.

Steven Scot, described in his book, “A millionaire’s note book”, on how he make a full benefit from the short TV advertisement in market and selling his first product; later own American Telecast Corporation and Groups of Consumer Goods Companies.

Steven used to mentioned on of his success trade that is understanding “The Law of Building: Don’t start building the house until you’ve laid the foundation.” From here he further mentioned, 2 (two) main steps to be taken as the action plan.

First, asking logical questions about our product and our offer:
- What are all the benefit associated with our product?
- How does my product relate to our consumer’s 2 greatest motivations – desire to gain

and fear of loss?
- How can we raise the perceived value of my product without significantly raising the price?
- In the perspective of cost of goods, cash flow, competitive price; how could we offer pricing,

payments terms, rebates, volume discounts, and so forth to our consumers?

Second, asking ourselves logical question about our consumer:
- Who is our primary consumer and what percentage does he or she represent?
- What are the primary and secondary motivations for our consumer to buy this type of

product?
- What objections or excuses might this consumer use to delay or avoid a buying decision about

this product?
- What are the answers to all this objection and objections that we could offer?
- Who is your secondary consumer?

In my teaching of Blue Ocean Strategy to some groups of students I always remember the Three Tiers of Non-customer who are actually customers.

Tiers 1: “Soon-to-be” noncustomers who are on the edge of our market, waiting to jump ship.
Tiers 2: “Refusing” noncustomers who consciously choose against your market.
Tiers 3: “Unexplored” non customers who are in the markets distant from yours.

From above we could see that Steven blend his question within, market segmentation, consumer behavior, advertising and the marketing mix. He might have used the marketing analysis tools to find his answers.

According to BOS (Blue Ocean Strategy), companies always forget the huge noncustomers. These noncustomers are in three tiers and they represent giant latent demand of customers. The challenge is how to convert them into a customer.

Combining all the knowledge of segmentation, marketing mix, advertising, consumer behaviors and relate them with Blue Ocean Strategy we are then able to meet the challenge on converting this huge latent demand into huge number of customers. Adding the capabilities of relation marketing, we are then having the large numbers of loyal customer.

Link to file:

https://rcpt.yousendit.com/703553416/1fab0ed7c2f2c570c6371da68d58566b

The relation of Marketing in Business Operation

In many cases that I have met most small business starters or even operators, business research, marketing research are being separated from each other or not being practiced despite it is a critical factor.

A most recent case that I was deeply involved is where a millionaire friend of mine is deeply interested investing in fishing business in Aceh, Indonesia. This investment is more on diversification into different business since he is a logger.

After a week of several meeting and discussion, on 12th May 2009, three of us took a flight to Aceh in the intention of an immediate purchase of fish for 3 to 10 tons per day. I proposed that some detail research on the operation, marketing plan and a business model must be developed prior to the investment. The reason is that the business I am involved in Indonesia is Tuna fishing and not the purseiner or trawler fishes.

On reaching Aceh we went to a fishing jetty in Idi which took us at least 7 hours drive and we realize that the fish are mostly Euthynnus affinis or in Indonesian name is Tongkol Como, or the Malaysian name is Tongkol Hitam and Tongkol Putih. There some Albacore available beside Loligo app. Based on my experience I assumed for the unloading at that particular fishing jetty would be at least 50 tones of fish. We felt unhappy since the information provided by the Indonesian Fishery was not accurate. We then left for the next jetty which took us a day of driving.

The next jetty was the small jetties which are distributed unevenly at an area of 50 km radius. This are the type of fish that we are looking but each jetty could only supply us with 100 kg to 200 kg a day. Our intention of having a minimum of 3 ton of fish per day again becomes a dream. We are not able to have the fish needed for the market that we think we had.

Both of my friends then left home for Malaysia the next day and I stay for some research for this particular business. I believe that the challenges that we faced could be resolve with a good research. I stayed for a week and later I came with a good finding and proposal to run such a business.

On my return to Malaysia, we then had 2 meetings and later decided to venture into this particular business. I reminded my partners that a regular research and analysis must be made in ensuring the sustainability and profitability of the business. I also reminded my friends that we are also lacking in having a good market in Malaysia to market out a 3 to 10 ton of fish a day. This venture could be a catastrophic move since my research in Indonesia is only on operational research and marketing research was incomplete.

Week 4 slides

https://rcpt.yousendit.com/701217758/6d9bd377fcb4542936b95f5f7bbdd86b

Sample of assignment:

https://rcpt.yousendit.com/701219820/04c5dccdb25196b481de4bac198a52f5

Marketing research, is it necessary?

In many cases that we have seen or read, business investors are fond of investing into a venture without any research work or analysis prior to their venture. An entrepreneur who has done research or analysis does not include a good marketing research or marketing analysis which could be turn into a good marketing plan.

Marketing research or marketing analysis is a very crucial element in business. The component such as PEST analysis, Competitors pressures, Market competition are among the important analysis to be made prior to the real investment. In my research work with those successful companies, I realized that they even took an effort of testing the sensitivity test for each market that they have segmented. Hence their result on each market would be more accurate.

In my research too, I realize that mistakes were done where companies had a detail research and analysis on operation but leaving marketing not attended effectively. These happened more in production companies or some medium size business, resulting being in a business that they themselves are not clear in which market are they competing, what are the competitive pressure they are facing or even what type of environmental they would be. If competitive market analysis is not done, later it could contribute to a large grey area in product positioning despite a competitive pressure analysis is being made.

On a summary, I would say that marketing research and marketing analysis must be done properly before and in an ongoing business.

Link to file:

https://rcpt.yousendit.com/689443026/1ab041ce7bae0c1e843de4031416f516

Points to Ponder – Marketing

Internet is found to be a very powerful medium for knowledge sharing. This was proven in some countries like US (during Obama’s Campaign) or even Malaysia in the 12th General Election. How does internet contribute to marketing? What happen to those rural areas of the third world countries where internet facilities are far much backward? What happen if the impact is negative or the information given is false information?

Sample of assignment

https://rcpt.yousendit.com/691666664/7f0e24409e2cf75ebb999739fef40806

Excel format

https://rcpt.yousendit.com/691666768/ae3ca6640ab05cd0cc0f6842057117ab