Tuesday, May 6, 2008
The most effective strategy for a company to use in order to maintain and increase profits over the long term is to maintain high ethical standards.
The core or motivating factor for most of the company is to continue maintaining and increaseing profits and becomimg more and more competitive and capture as much as market as possible.Now,with most of the company focussing on these objectives,they build most effective strategies and take decisions to achieve these objectives.Now,there should be some factor which should differentiate them from others.I think,if the company is eyeing the long term market,that factor can certainly be maintaining high ethical standards. There are many benefits of maintaing the high ethical standards across the organization.The first abvious benefits would be the trust generation among the various stakeholders for that company.The customers would definitely trust the company for its products and this would increase teh sales of teh company in the longer term.The secound benefit would be that teh employee would be more satisfied and happy with the transperancy and high moral and ethical grounds followed in the company. Also,In today's current market scenario where You find many small and large startup ncompany getting started and closed down,the most diificult thing for the customer in the choosing the company for fulfilling its needs would be the trust it has for that company.The customer wants the company there for him after he has choose the products or services of the company,to be there for him whenever he needs any help.The comapny can win this trust of the customer by following high ethical grounds.The high ethical grounds helps in creating the Brand of the company among the customer.This would make the customer more aware about the company and would help them in making the decisions about the particulat company. Thus,the most effective strategy for a company to use in order to maintain and increase profits over the long term is to maintain high etical standards.
Friday, May 2, 2008
A computer-chip maker,could solve its problem of declining sales by dropping its prices.This would make it better able to compete in the highly compet
I think the above argument assumes two things.First,The argument assumes that the reason for decining sales is the price of the chips it sales.Second,It assumes that only way to increase the sales is dropping the prices of its chips. Lets us first try to validate the assumptions.The first assumption as stated above is that prices of its chips is causing the decline in its sales.However,this may or may not be true.There might be several other reason because of which the sales has decline.The quality of chips that it manufactures might be either detoriating or the competitor has launched the better quality,efficient,less costly chip.or the company had lost it focus from chips to some other business or the company had reduced it spending on the marketing and advertising because of which the customers are not aware of the its chips.The other reason might be that the customer which had bought its chips had faced some snags or they had not not found the its chips value for money and hence they might have given the bad reviews about the chips.so just focussing on slashing the prices of its chips may be the correct solutions for the problem. Now,the second assumption which is stated as that the only way to increase the sales is dropping its prices.As we can make out from the first assumption that,dropping the prices of its chips may not be the right thing to do.There might be several other way out like manufacturing the better quality chips.Investing more on reaserach and development and manufacture better quality,efficent,cost effective chips for the customers.Or Increasing the spending on the advertising and exploring the new way of connecting to the prospective customer.Or if the existing customer had faced some technical snags,then provide them the better post sales service like replacing the malfunctioned chips with teh new one of if possible repair teh same. So as seen,the slashing the prices might be the good solutions only if the prices of the chips is the problem.so after proper analysing teh root causes shouls any decision be made and thus effectively solve the given problem of decling sales and thus substantially boost Davis' market share.
Thursday, May 1, 2008
Seniority should not be the basis of employee compensation. Employees should be promoted and given raises solely on the basis of their work performanc
Seniority alone should not be the basis of employee compensation.I think that is the very valid to make in todays's highly competetive world where each penny spend should be accountable.In today's globalised environment where the geographical boundaries are quickly dissappearing,one cannot take the traditional view of determining teh basis of employee compensation. In this highly modern,sophisticated world,where the efficency and the productivity of the employee is the prime concern for the employer,the method of determing the compensation has to the product of various different factors.So the seniority or years of service of the particular employee alone cannot be the basis of the copmensation for the employee.The work performance and the merit of the employee should be taken into the consideration.This would,in turn,motivate the employee to perform better and be more productive.However,one cannot discard the seniorty factors altogether.There are many setors and domain where teh seniority of teh employee could be a vital factors.For Example,in a small retail grocery shop,the seniority of a particular employee would have given him the opportunity to form a close tie to various customers who turn up at the shop because of the bonding they have with teh particular senior employee.so in this particular case,the store owner would be very happy to offer hom the lucaritve compenastion inspite of him being not able to continue working that effectively.However,there are several other domain,where seniority alone would not be that important.For example in the booming service sector,seniority combined with the performance would be very important.so the factors would vary from sectors to sectors. Therefore,we can safely assume,that seniority of a employee is definitely a important factors,but the performance and efficency are also equally important.so the combination of these several vital fators together can help determaine teh compensation for a employee ,so that there is satisfaction and motivation among the employees.
Tuesday, April 29, 2008
The following was used as part of an internet advertising company's appeal to businesses:"Furniture Depot employed our internet advertising company"
I think the above statement is well deviced argument by an Internet adversting company's for appealing to its businesses.However,before we assume the argument to be true,it is worthwhile to analyse it from its assumptions.
The basic assumptions apparent here are that the businesses want to increase their profitablity and employing the help of internet advertising would boost the profitablity of the businesses.However,the argument has a major flaw in it line of reasoning which is that it has assume that increasing the sales by 10% over last Year's totals will lead to the increase in the profitablity of the businesses.However this may not be the case in all the scenario.For example,there may be a businesses which has the raw materails hit by the shortage of availabity and thus has led to increase in its price.This means the cost of manufacturing for the businesses has increase.so its profit margin has suffered.so inspite of the increase in sales,its profitablity may or may not have increase.
Also,the argument make a case that whatever the increase in sales of furniture depot has been,it is because of the help of the Internet advertising company.However,there may be several other factors as well which may have contributed heavily such as change in the lifestyle of the people,words of mouth spred by the other customer to the other prospective customer who might not even have saw that Advertising.
So the facts used by argument does seems appealing,the actual case may be different.
The basic assumptions apparent here are that the businesses want to increase their profitablity and employing the help of internet advertising would boost the profitablity of the businesses.However,the argument has a major flaw in it line of reasoning which is that it has assume that increasing the sales by 10% over last Year's totals will lead to the increase in the profitablity of the businesses.However this may not be the case in all the scenario.For example,there may be a businesses which has the raw materails hit by the shortage of availabity and thus has led to increase in its price.This means the cost of manufacturing for the businesses has increase.so its profit margin has suffered.so inspite of the increase in sales,its profitablity may or may not have increase.
Also,the argument make a case that whatever the increase in sales of furniture depot has been,it is because of the help of the Internet advertising company.However,there may be several other factors as well which may have contributed heavily such as change in the lifestyle of the people,words of mouth spred by the other customer to the other prospective customer who might not even have saw that Advertising.
So the facts used by argument does seems appealing,the actual case may be different.
Monday, April 28, 2008
"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large"
The Desire of corporations to maximize profits does creates the conflct of Interests with teh general welfare of the nations.The reasons I say this is the corporations is the coming together of the two or more like or different minded people for either satisfying their own desire or fulfill there own vested interests. The Motive of the corporations are basically in line with the objectives of there founders which unfortunately happens to be most of the time to accumulate as much wealth as possible,conquer as much market as possible without giving a thought about the other things which might hurt the community,and entire nation in General.There has been numerous occassions in the past and present where the desire of one person or one instituions has brought the downfall of entire nations.There are Plently of Instances where the profit for a few corporations have brought the misery and pitty conditions for the entire soceity and nation in general. Also,the size of the corporations has to be large enough to actually influence the nation at large.We have to remember one thing that this corporations thrive on the basis of there desire to earn the maximum profits.Most of these corporations usually starts from the small setup and earning little or whatever profit they can earn.It is in this journey from being small corpoartions to becoming large corporations,do they tend to take some steps,decisions which creates the conflict with the entire nation.So the very desire which drive them from being small setup to large corpoartions,they somehow creates conflict of interest withe the nation at large. The desire of corporations to maximize profits,thus is required to develop the nation and itself and it also somehow in this desire create the conflict of interest with the nation in General.No Nation can have its welfare until its corporations play a positive role.It is a give and take relationship between the corporations and nation that brings the win-win situations for both the parties.However,any imbalace in this realtionship creates a conflict of interest with each other.
Saturday, May 19, 2007
About Me.
Well,This being my first blog,I thought to start it with myself first.
Then Here I am:
My name is Rahul Jain.I am from Mumbai,India.For better part of my life I have born and grown up here in mumbai.I have done my engineering and by profession I am an software Engineer.Basically,sometime i am know it all type of guy,but then sometime I get intimitade by others.And Regarding my ambition,I would really be heading the Fortune 500 companies someday.I am very impatient and i really can't invest much of time in anything.My hobbies are Travelling,Reading and Surfing on net.
Then Here I am:
My name is Rahul Jain.I am from Mumbai,India.For better part of my life I have born and grown up here in mumbai.I have done my engineering and by profession I am an software Engineer.Basically,sometime i am know it all type of guy,but then sometime I get intimitade by others.And Regarding my ambition,I would really be heading the Fortune 500 companies someday.I am very impatient and i really can't invest much of time in anything.My hobbies are Travelling,Reading and Surfing on net.
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