Tag Archive: markets


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As the holiday season approaches, you may be thinking about employee gifts. While everyone appreciates a holiday treat, Cindy Ventrice, author of Make Their Day! Employee Recognition that Works (Berrett-Koehler Publishers) says holiday gifts and bonuses are now considered an entitlement in many organizations rather than a reward for hard work. People bank on their holiday bonuses.

“They plan their vacations, their gift giving, some plan it right into their income in terms of paying their bills. So, there is no appreciation element in many cases. They’re not seeing it as the reward. They see it as a piece of their compensation,”

says Ventrice.
While Ventrice is clear that companies shouldn’t do away with the holiday bonus, she argues that true recognition is not given through a one-time bonus check. Here are four things to consider when deciding how to thank your employees.
1. Include a personal message

“We often overlook the strength of written praise,”

says Ventrice.

She gives the example of an employee who kept handwritten notes of praise for years, pulling them out when they needed a confidence boost.

When you take a little bit of extra effort to put it in writing, it pays you back many times over. People read that over and over again,”

she says.
Messages should include specifics about the employee’s work and what was appreciated. They can be included in employee’s bonus envelopes or made into a group experience, such as a message board handwritten notes highlighting at least one thing that you value about each employee.

2. Know your audience

Ventrice says it’s difficult to come up with best practices when it comes to employee gifts because rewards will mean different things to different groups. Understanding what will make your staff enthusiastic is the first step in determining appropriate rewards.

“Know your staff – who they are and what they’re going to value,”

says Ventrice.
While a white water rafting adventure may be the perfect team-building reward for a young, fun office, a formal dinner at a fancy restaurant may be more suitable for a serious work culture.

3. Offer non-monetary compensation

Ventrice surveyed over 200 employees from 98 companies to find out what rewards they valued the most.

Across all ages and cultures, time off was absolutely number one,”

she says.

Flex time given for a specific accomplishment in the form of a longer lunch hour or going home early is a great way to show appreciation for a job well done.
The study confirmed that the cost of recognition awards has only minimal impact on employee perception of appreciation. Fifty-seven percent reported that the most meaningful recognition was free.Other forms of recognition that scored high included opportunities to learn from senior staff or take a course that wasn’t offered to everyone, and being given challenging assignments.

“Programs run by managers who know what makes recognition meaningful and know how to provide it translate into higher engagement, retention, loyalty and productivity,”

says Ventrice.


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Latest News for Strategy Business Developments

Outthink The Future

 

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Photo by fauxels on Pexels.com

 

One of the most reasons for this failure rate is that entrepreneurs don’t identify their target demographic correctly. Without clarifying your core customers, selling is ultimately a function of individual, heroic efforts within the field, not a scalable platform for growth.
The following four steps can reverse this downward trend:

1.Assemble and analyze customer data
Every firm should know the way customer attributes link to core selling metrics, including profitability, cost of customer acquisition and customer-lifetime value. While this information is usually scattered across multiple functions during a company, it’s worth pulling together to determine a standard language of customer value across functions.

2.Get the sector involved
 People in frontline positions hold the simplest understanding of customer behavior because it relates to the seller’s cost implications and will be involved in reviewing the information gathered. What can they tell us about profitable or unprofitable customer attributes? What else could be driving customer acquisition costs during a segment? What are the implications for the organizational change?

3.Determine who actually generates cash
 Implications from deeper understanding of your customers typically involve changes in how you measure sales effectiveness, performance reviews, incentives, product mix, channels and sometimes “addition by subtraction,” or the method of improving performance by not selling to certain styles of customers. the prices of serving customers, for instance, can vary dramatically for the vendor. Some customers require more calls, some buy few large production-efficient order quantities et al may buy more in overall volume but with many just-in-time orders, impacting delivery and other cost-to-serve elements.
Sales people are often dogged optimists in their call patterns, often assuming that there must be a pony in there somewhere. Yet by knowing who the purchasers that generate cash really are, you’re ready to clarify the worth proposition embedded during a strategy and align resources accordingly.

4.Communicate your criteria

The breadth of potential changes means communication is critical. Leaders must devote time and energy to discussing the rationale and what they mean for the business. In practice, most companies don’t take customer selection seriously until things go sour. However, communicating customer criteria now can contribute to faster deciding and greater profit later. The marketplace has no responsibility to tell you whether or not your sales people are barking up the incorrect tree.

It’s your responsibility as an entrepreneur to think through and clarify your customer selection criteria. Done correctly, it can provide a scalable sales model, focus resources and establish an ongoing process for adapting your criteria within the face of inevitable market changes.


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NEWS & OVERVIEW DISCUSSIONS IN DIFFERENT MARKET INDUSTRIES

Comercial Leaders



What it truly comes down to the employee-employer relationship? Information discharged by Virgin Pulse uncovers precisely what representatives got to cherish in their job – and expansive portion reveal that excellence comes from a great relationship with their boss.

In fact, nearly 60 percent of the more than 1,000 full-time employees surveyed said that their relationship with their employer positively impacts their focus or productivity at work, and 44 percent said it positively impacts their stress levels.

Considering nearly 50 percent of the 7,200 adults surveyed in a recent Gallup study left a job,

to get away from their manager.”

1. Open communication

The key to any great relationship is communication that goes both ways. Tragically, representatives don’t feel like their bosses are truly tuning in. A later study of more than 1,000 U.S. representatives by 15 Five appeared a unimportant 15 percent of workers are fulfilled with the quality of working environment communication.

great relationship is communication that goes both ways. Tragically, representatives don’t feel like their bosses are truly tuning in. A later study of more than 1,000 U.S. representatives by 15 Five appeared a unimportant 15 percent of workers are fulfilled with the quality of working environment communication.

What’s more, that same study found that 81 percent of employees would rather join a company that values “open communication” than one that offers great perks.

To create a work environment that supports open communication, consider implementing a web-based feedback platform. According to the survey by 15Five, 70 percent of employees said they’d be more likely to share information with managers if they could enter comments into an online feedback system.

2. Opportunities and investments

In a perfect world, both parties bring something in, and get something out from their relationships. For managers, the benefits of a great employee-employer relationship incorporates a workforce that’s exceedingly locked in the beneficials and fulfillement for their parts inside the organization. An viable and efficient workforce is nice for any business. For workers, the focal points of the relationship ought to go in the past to the paycheck and benefits that bundles into incorporate individualized training.

3. Gratitude and appreciation

It’s in our nature to need to be lauded for a work well done – a result of accepting “gold stars” amid our schoolyard days, no question. It consoles, propels and gives us the fuel we got to proceed doing what we do well.

In fact, Globoforce and SHRM’s 2015 Employee Recognition Report showed 86 percent of the 823 HR professionals surveyed said values-based recognition increased employee happiness at work, so don’t hold back on the “thank you” notes and pats.Employees will appreciate the recognition, and the employee-employer relationship will get a much-needed boost.

4. Interest in life outside of work

The employee-employer relationship ought to be proficient, but that doesn’t cruel bosses shouldn’t take the time to urge to know the individual behind the work. Endeavor treat workers as individuals, not fair worker bees. The key is to require an intrigued in employees’ lives exterior of work. What are employees’ individual and proficient objectives? Where do they trust to be in five a long time? Do they have a family? What do they like to do once the workday is over?

Questions like these help employers to know their employees on a more personal level. That helps them make sense of individual employee actions and preferences, and forms a much stronger bond between employers and their employees.


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Latest News for Strategy Business Developments

Scientific management


 

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No tyrant or slave driver in the ecstasy of his most delirious dream ever sought to place upon abject slaves a condition more repugnant.

There’s small space for Taylor’s thoughts in today’s world of freewheeling collaboration. But the works of individuals such as Michael Doorman and Michael Pound, with their accentuation on breaking commerce down into quantifiable (and controllable) exercises, hold more than a swoon resound of Taylor’s thoughts.

Taylor was the first man in history who did not take work for granted, but looked at it and studied it. His approach to work is still the basic foundation.


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The Latest News & Developments in Business Strategy Practice


All sorts of organisations use the vocabulary of strategy. Compare these extracts from the statements of communications giants Nokia and Kingston University, a public institution based in London with 200.000 students.

“Nokia’s vision and mission believes in communicating, sharing, and in the awesome potential in connecting the 2 billion who do with 4 bilion who don’t. Connecting is about helping people to feel close to what matters.”

If we focus on people, and use technology to help people, than growth will follow. In a world where everyone can be connected, Nokia takes a human approach to technology.
Nokia’s priority is to be the most proffered partner to operators , retailers and enterprises. A strategy where customers remain our top priority.

In line with this priorities, Nokia ‘s business portfolio strategy focusses on five areas, with each have long-term objectives: create winning devices; embrace customer Internet services; deliver enterprise solutions; build scale in networks, expand professional services.
There are three strategic assets that Nokia will invest in and prioritize:

1. Brand and design

2. Costumer engagement and fulfilment

3. Technology and architecture.

“Kingston University’s mission is to promote participation in higher education, which it regards as a democratic entitlement; to strive for excellence in learning,teaching and research, to realise the creative potential and fire the imagination of all its members.”

The vision is to be comprehensive and to create by present possibilities, with a grander and more aspirational vision of the future.
The University’s goals are to provide all students equal opportunities to:

🔹Realise their learning ambitions;

🔹Create authority in research and professional practice for the benefit of individuals, society and economy

🔹Develop collaborative links with providers and stakeholders within the region, nationally and internationally;

🔹Manage and develop its human, physical and financial resource to achieve the best possible academic value and value for money.

“Strategy is part of every day language of work.”

Strategy vocabulary therefore is used in many different contexts for many different purposes.


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Latest News for Strategy Business Developments

Decisive Entrepreneur

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An overview on one aspect that captures almost all the economic activities include a representation to a change. This clue distinctions of when and where supports all those interested wantings for the future development and innovation, in the activity of the products and the services desired for the necesary market.

You never know where you are going to find a good idea.

That may sound like a saying from a fortune cookie. But for Normal CEO, and founder, Nikki Kaufman, it’s a management style.

It’s also why the headquarters of her 3-D printed custom earphone company are open and transparent across departments. It’s a guiding principle on how to run a team.

I encourage new ideas all the time here at Normal. That’s one of the things that I really like about having everyone in one office.
She included this advices from the floor of her New York City retail location, which also serves as the company’s factory and corporate office along with an incredible pursuatiation for advocating content into the shared markets .
An idea can come from anywhere.”



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Latest News for Strategy Business Developments

Old Business Models

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Every industry is changing. There are no original ideas left. Sure, it’s kind of a cynical thought, but try and brainstorm a completely new concept, whether for a business, an advertising campaign or even a limerick, and you’ll start to think it’s true. It can sometimes be a stretch to come up with anything that hasn’t already been thought of. It’s the reason someone once famously said there are only three original jokes and all the others have been derived from them. It’s why Hollywood remakes old movies. And the dearth of original ideas is why businesspeople sometimes pay other businesspeople to come up with a new concept for their own products or services.

“Fortunately, if you’re an entrepreneur trying to come up with a new business model, you don’t have to be completely unique. “

For instance, you probably wouldn’t attempt to sell fingernail clippings in a bag, no matter how groundbreaking and unique the idea is. In fact, if you’re starting a business, you probably shouldn’t do something that’s never been done -after all, think of the learning curve your target market will have to tackle. But you would be well advised to take an old idea and make it new. That’s exactly what David Friedberg did. It was around 2001, Friedberg figures, when he was 20 years old and living across the road from a bicycle rental shop.
Every day that it rained, the bike shop was closed.

“It became pretty noticeable,”

recalls Friedberg, now 26 and already an ex-Google executive and the CEO of his own company, WeatherBill, in San Francisco.
After watching the bicycle rental store owner get rained out day after day, Friedberg started noticing how many other companies- think golf courses and car washes- were taking a financial bath whenever it was wet outside.

“You don’t really think about it, but 70 percent of businesses are affected by the weather every year, across regions and industries,”

says Friedman.

“The weather affects so many different types of businesses, whether in negative or in positive ways, like taxi cabs in New York, which are often full in the cold.”

Friedman was a business product manager at Google when he had his

“a-ha moment.”

It occurred to him that he should start an insurance company- a very old idea- but gear it specifically toward companies that want to protect themselves from losing money on a rainy day -a new idea. It may not sound new. After all, insurance companies generally protect you if you’re hammered by a hurricane, slaughtered by a sandstorm or frozen under the tundra. But we’re talking about the car wash that doesn’t want to lose an entire day of income when there are five inches of rain.

That’s why Friedberg developed, with his “computer science friends,” an elaborate website where anyone can log on and buy a contract to protect themselves from unseasonable weather. The site is completely customizable and automated. A farmer, for instance, could receive money every time the temperature dips below 67 degrees in a particular month. Or if a ski resort has a week and a half of beautiful, balmy weather in January, the owner could automatically receive a check without having to report the weather.

There is no claims process,”

Friedberg says proudly. Instead his company uses a third-party weather station, EarthStat, that independently confirms data and sends daily reports to WeatherBill, which then processes the checks and sends them out.

Modernizing the wheel in some business models it only needs to be slightly tweaked to appeal to the modern consumer. If you want to update the traditional dentist office, put it on wheels. While cleaning teeth is an industry almost as old as, well, teeth, putting an office in a van that can travel anywhere from giant corporate campuses to nursing homes is a much more recent concept. The rise of mobile dentist offices in the last few years shows that catering to people’s busy and complicated lives is a nearly surefire way to improve upon an old concept.
Then there’s the Pearson Ford Fuel Depot in San Diego, which has received a lot of attention for its one-of-a-kind gas station that offers a full range of clean-burning alternative fuels from ethanol to BioWillie, a type of biodiesel made from soybeans and promoted by singer Willie Nelson. Gas stations may be becoming synonymous with global warming, but by offering an alternative, this fueling station has managed to drum up publicity while serving an emerging niche market. Capitalizing on consumers’ nostalgia is yet another potential approach. In true throwback fashion, State Street Barbers, located in Chicago and Boston, gives modern hair cuts to men in an environment decked out to look like a ritzy salon in the 1920s. Patrons are given a cold beverage when they walk in and can get a hot lather shave with a classic straight razor and hot towels.
In the end, it’s easier to be original and unique in an established industry like home selling or insurance when you have plenty of capital funding behind you; it’s another story if you’re running a fledgling startup in your parents’ basement, and you feel you have to take any client with a pulse and a wallet. But whether you’re a big fish in the ocean or a small one in the pond, the principles are always the same. If you’re going to tweak a formula,

throw out the way things have been done before,”

advises Friedberg.

Manufacturers wants more to connect with their suppliers, their distributors, and ultimate their customers. In a consumer world there is an app for that, in the government world there is form for that and that is the technology that needs to be closed. Banks knows a lot about the customers and that information is spread to the full wings.
The reason why most of the companies are not embracing the future faster, is because they continue to throw their capital to what they worked in the past and that’s what is keeping manufacturers up at night, is how to innovate quickly with agility, and deepen their relationships with their retailers, suppliers and consumers.

Figure out your end goal, and then forget about what all of the other people have done, and come up with a new way.



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The Latest News & Developments in Business Strategy Practise

Financial Goals

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In the new case of the industries you  should be proactive in helping achieving and creating your goals.

When you’re a start-up with few employees and few customers, it’s easy to stay on top of what customers want and what they’re getting. But as you add more customers and employees, you add links to the customer service chain. That creates the potential for growth and the potential for poor service along the way. That’s why creating a customer service policy and adhering to it is so important. Here are some steps you can take to ensure that your clients receive excellent service every step of the way.

  1. Put your customer service policy in writing. These principles should come from you, but every employee should know what the rules are and be ready to live up to them. This doesn’t have to be elaborate. Something as simple as “the customer is always right” can lay the necessary groundwork, although you may want to get more detailed by saying, for instance, “any employee is empowered to grant a 10 percent discount to any dissatisfied customer at any time.”
  2. Establish support systems that give employees clear instructions for gaining and maintaining service superiority. These systems will help you outservice any competitor by giving more to customers and anticipating problems before they arise.
  3. Develop a measurement of superb customer service. Don’t forget to reward employees who practice it consistently.
  4. Be certain that your passion for customer service runs rampant throughout your company. Employees should see how good service relates to your profits and to their futures with the company.
  5. Be genuinely committed to providing more customer service excellence than anyone else in your industry. This commitment must be so powerful that every one of your customers can sense it.
  6. Share information with people on the front lines.Meet with your employees regularly to talk about improving service. Solicit ideas from employees-they are the ones who are dealing with customers most often.
  7. Act on the knowledge that what customers value most are attention, dependability, promptness and competence. They love being treated as individuals and being referred to by name.

 

It has been about trust and it has been about getting there faster than anybody else,as we are driving innovation and bring ideas from other industries through our success.

 

Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled.” 

 Howard Stevenson 

 

This is one of the first definitions of entrepreneurism.It perfectly captures the nature of entrepreneurship and highlights some key qualities that successful entrepreneursshare. Entrepreneurs are confident in their abilities and they are able to recognize opportunities where many others don’t see them.




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The Latest Business News  On Strategy Practise

Accelerated processes

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Every step of complex inquiring

Achieve to order smarter to proactive customers, partner and distributor engagement, to be both together in global collaboration across experts anywhere.A point to the increase of profitability with faster CPO and higher margin for better solutions.

When you’re a start-up with few employees and few customers, it’s easy to stay on top of what customers want and what they’re getting.

But as you add more customers and employees, you add links to the customer service chain. That creates the potential for growth and the potential for poor service along the way. That’s why creating a customer service policy and adhering to it is so important.

Here are some steps you can take to ensure that your clients receive excellent service every step of the way.

  1. Put your customer service policy in writing. These principles should come from you, but every employee should know what the rules are and be ready to live up to them. This doesn’t have to be elaborate. Something as simple as “the customer is always right” can lay the necessary groundwork, although you may want to get more detailed by saying, for instance, “any employee is empowered to grant a 10 percent discount to any dissatisfied customer at any time.”
  2. Establish support systems that give employees clear instructions for gaining and maintaining service superiority.These systems will help you outservice any competitor by giving more to customers and anticipating problems before they arise.
  3. Develop a measurement of superb customer service.Don’t forget to reward employees who practice it consistently.
  4. Be certain that your passion for customer service runs rampant throughout your company. Employees should see how good service relates to your profits and to their futures with the company.
  5. Be genuinely committed to providing more customer service excellence than anyone else in your industry.This commitment must be so powerful that every one of your customers can sense it.
  6. Share information with people on the front lines.Meet with your employees regularly to talk about improving service. Solicit ideas from employees-they are the ones who are dealing with customers most often.
  7. Act on the knowledge that what customers value most are attention, dependability, promptness and competence.They love being treated as individuals and being referred to by name.

 

Phrases That’ll Make Your Customers Happy


Principles of customer service are all very well, but you need to put those principles into action with everything you do and say. There are certain “magic words” customers want to hear from you and your staff. Make sure all your employees understand the importance of these key phrases:

  • “How can I help?”Customers want the opportunity to explain in detail what they want and need. Too often, business owners feel the desire or the obligation to guess what customers need rather than carefully listening first. By asking how you can help, you begin the dialogue on a positive note (you are “helping,” not “selling”). And by using an open-ended question, you invite discussion.
  • I can solve that problem.”Most customers, especially business-to-business customers, are looking to buy solutions. They appreciate direct answers in a language they can understand.
  • I don’t know, but I’ll find out.When confronted with a truly difficult question that requires research on your part, admit that you don’t know the answer. Few things ruin your credibility faster than trying to answer a question when you are unsure of all the facts. Savvy buyers may test you with a question they know you can’t answer and then just sit quietly while you struggle to fake an intelligent reply. An honest answer enhances your integrity.
  • I will take responsibility.”Tell your customer you realize it’s your responsibility to ensure a satisfactory outcome to the transaction. Assure the customer you know what he or she expects and will deliver the product or service at the agreed-upon price. There will be no unexpected changes or expenses required to solve the problem.
  • I will keep you updated.”Even if your business is a cash-and-carry operation, it probably requires scheduling and coordinating numerous events. Assure your customers they will be advised of the status of these events. The longer your lead time, the more important this is. The vendors customers trust the most are those that keep them apprised of the situation, whether the news is good or bad.
  • I will deliver on time.”A due date that has been agreed upon is a promise that must be kept. “Close” doesn’t count.
  • Monday means Monday.”The first week in July means the first week in July, even though it contains a national holiday. Your clients are waiting to hear you say “I deliver on time.” The supplier who consistently does so is a rarity and will be remembered.
  • It’ll be just what you ordered.”It will not be “similar to,” and it will not be “better than” what was ordered. It will be exactly what was ordered. Even if you believe a substitute would be in the client’s best interests, that’s a topic for discussion, not something you decide on your own. Your customer may not know (or be at liberty to explain) all the ramifications of the purchase.
  • The job will be complete.”Assure the customer there will be no waiting for a final piece or a last document. Never say you are finished “except for….”
  • “I appreciate your business.”This means more than a simple “Thanks for the order.” Genuine appreciation involves follow-up calls, offering to answer questions, making sure everything is performing satisfactorily, and ascertaining that the original problem has been solved.

Neglecting any of these steps conveys the impression that you were interested in the person only until the sale was made. This leaves the buyer feeling deceived and used, and creates ill will and negative advertising for your company. Sincerely proving you care about your customers leads to recommendations and repeat sales.

 

Never Let Your Customers Forget You


One important tool for generating repeat business is following up. Effective follow-up begins immediately after the sale when you call the customer to say “thank you” and find out if he or she is pleased with your product or service. Beyond this, there are several effective ways to follow up that ensure your business is always in the customer’s mind.

  • Let customers know what you are doing for them.This can be in the form of a newsletter mailed to existing customers, or it can be more informal, such as a phone call. Whatever method you use, the key is to dramatically point out to customers the excellent service you are giving them. If you never mention all the things you are doing for them, customers may not notice. You aren’t being cocky when you talk to customers about all the work you have done to please them. Just make a phone call and let them know they don’t have to worry because you handled the paperwork, called the attorney or double-checked on the shipment-one less thing they have to do.
  • Write old customers personal, handwritten notes frequently.I was just sitting at my desk and your name popped into my head. Are you still having a great time flying all over the country? Let me know if you need another set of luggage. I can stop by with our latest models any time.” Or if you run into an old customer at an event, follow up with a note: “It was great seeing you at the CDC Christmas party. I’ll call you early in the New Year to schedule a lunch.”
  • Keep it personal.Voice mail and e-mail make it easy to communicate, but the personal touch is often lost. If you’re having trouble getting through to someone whose problem requires that personal touch, leave a voice-mail message that you want to talk to the person directly or will stop by his or her office at a designated time.
  • Remember special occasions.Send regular customers birthday cards, anniversary cards, holiday cards…you name it. Gifts are excellent follow-up tools, too. You don’t have to spend a fortune to show you care; use your creativity to come up with interesting gift ideas that tie into your business, the customer’s business or his or her recent purchase.
  • Pass on information.If you read an article, see a new book, or hear about an organization a customer might be interested in, drop a note or make a quick call to let them know.
  • Consider follow-up calls as business development calls.When you talk to or visit old clients or customers, you’ll often find they have referrals to give you, which can lead to new business.

With all your existing customers can do for you, there’s simply no reason not to stay in regular contact with them. Use your imagination, and you’ll think of plenty of other ideas that can help you develop a lasting relationship.

 

Dealing With Unsatisfied Customers


Studies show that the vast majority of unsatisfied customers will never come right out and tell you they’re unsatisfied. They simply leave quietly, later telling everyone they know not to do business with you. So when a customer complains, don’t think of it as a nuisance-think of it as a golden opportunity to change that customer’s mind and retain his or her business.

Even the best product or service receives complaints now and then. Here’s how to handle them for positive results:

  • Let customers vent their feelings. Encourage them to get their frustrations out in the open.
  • Never argue with a customer.
  • Never tell a customer “You do not have a problem.” Those are fighting words.
  • Share your point of view as politely as you can.
  • Take responsibility for the problem. Don’t make excuses. If an employee was sick or a supplier let you down, that’s not the customer’s concern.
  • Immediately take action to remedy the situation. Promising a solution and then delaying it only makes matters worse.
  • Empower your front-line employees to be flexible in resolving complaints. Give employees some leeway in deciding when to bend the rules. If you don’t feel comfortable doing this, make sure they have you or another manager handle the situation.

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The Latest News & Devolpments in Business Strategy Practise

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Infrastructure spending is often debated as a political issue, but the underlying economic case for investing in new roads shouldn’t be controversial.”

Thanks to traffic, American commuters spend an extra 6.9 billion hours in their cars every year, burning 3.1 billion gallons of gasoline as they idle. More importantly, 40,000 drivers die on highways annually, a toll that could be reduced through safer design. Thus, as investing in infrastructure could make the US safer and more productive, the need for new highways shouldn’t be a partisan issue.

Improving to Meet Growing Demands

The last major infrastructure spending bill, the American Recovery and Reinvestment Act of 2009, was a stimulus measure designed to spur aggregate demand for labor and materials. Now that the economy has nearly recovered from the Great Recession, there isn’t as great a need for legislation to prop up the labor market. Instead, the next infrastructure bill should focus on increasing the supply of labor and goods available to businesses and consumers.

Improving the country’s transportation grid will likely increase the economy’s potential for future growth. When workers can’t commute rapidly from the suburbs into dense city centers, the nation’s most dynamic labor markets begin to stagnate. Similarly, if finished goods can’t be transported quickly to customers, shipping bottlenecks will impose drags on manufacturers.

With more people driving to work than ever before, the carrying capacity of the nation’s roads is increasingly coming under strain. Faster commutes will increase the supply of available labor—the less time people spend stuck in traffic, the more hours they’ll have available to work. The total cost of US highway congestion is estimated to top $160 billion annually, which will rise further as the population grows. Considering that the combined state and federal highway budget totals only $280 billion, there appears to be substantial potential returns on aggressive infrastructure investment.

Politics vs. Economics

While the economics of infrastructure investment are clear, the politics are more complicated. Since the beneficiaries of transportation projects are often far removed from the actual construction, almost all new highway investment is funded at the federal level. For example, relatively few people might visit west Texas, but all American consumers benefit from the goods that flow across the continent on the federally funded Interstate 10. Regional transit improvements provide the same diffuse impact—a Manhattanite may never cross the George Washington Bridge, but will still benefit from living in a labor market that draws talent across state lines.

Using the revenues from federal fuel taxes to fund new construction allows states to share the cost of projects that benefit the entire economy. However, it also makes highway funding vulnerable to the political gridlock that inevitably afflicts all federal spending measures.

The Highway Trust Fund has been depleted, and today’s insufficient outlays for construction already exceed revenues by $10 billion annually. Increased spending will require either raising fuel taxes or adding to the deficit, neither of which will likely be popular on Capitol Hill.

Supply-side economics may have fallen out of favor, but it’s still applicable for infrastructure spending. Borrowing to fund projects today that will increase the economy’s growth rate for decades to come makes sense. Deficit spending on infrastructure should be expected to pay for itself by increasing the tax base over time.

Technology’s Role

Technology promises to improve the efficiency of our existing transportation infrastructure, even if federal funding never materializes. “Smart” technology could improve the carrying capacity of our highways by coordinating signals to keep traffic flowing.

Optimization algorithms for public transit could deploy buses and trains more efficiently during rush hour, and improving communications technology is making telecommuting an option for more workers, reducing the number of commuters on the road. And unlike building physical infrastructure, technological projects will likely be adapted as public-private partnerships, financed by municipal or corporate bonds. As a result, gridlock in Washington may inspire creative solutions on the local level.”

Quality habits

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When you think of artificial intelligence (AI), you might think of dehumanizing interactions. Don’t confuse AI with primitive marketing automation.

Artificial Intelligence Drives Customer Experience, as AI expert and leading keynote speaker Christopher Penn, VP of Marketing Technology for SHIFT Communications says,

There are three levels of machine learning: AI where machines perform tasks normally performed by humans; machine learning.”

There are three levels of machine learning: AI where machines perform tasks normally performed by humans; machine learning.”

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The dividend policy

A company will have a direct impact on the amount of retained earning available for investment. A company which consistently pays out a high proportion of distributable profits as dividends will not have much by way of retained earnings and so is likely to use a higher proportion of external finance when funding investment projects.

“Corporations with more diverse boards of directors are less prone to take risks and more likely to pay dividends to stockholders than firms whose boards are more homogenous.”

Firms need to take risks to run business. However, excessive risk taking may endanger their survival. Therefore, investors and regulators have broadened the board’s role to include corporate risk oversight, especially since the wake of the financial crisis in the late 2000s.

Most research on board diversity has focused only on gender diversity.
We used a broader-than-normal definition of diversity, encompassing gender, race, age, experience, tenure and expertise.

We looked at company records and employed five variables to measure risk: capital expenditures, research and development expenses, acquisition spending, the volatility of stock returns and the volatility of accounting returns.
The first three variables are direct measures of corporate risk as firms can adjust risk by directly altering their investment policies and spending. The last two variables measure corporate risk taking using the volatility of firms’ market and accounting performances.

“Firms with more diverse boards spend less on capital expenditure, R&D and acquisitions, and exhibit lower volatilities of stock returns than those with less diverse boards.”

Additional analysis showed that companies with more diverse boards were more likely to pay dividends and to pay a greater amount of dividend per share than corporations with less diverse boards. In general, risk-averse firms are more likely to avoid investment projects with uncertain outcomes and return cash to shareholders in the form of dividends.
Having this insight can help avoid costly cultural mistakes at both large corporations and small businesses. Studies showes that most corporate boards are relatively homogenous in gender and race – being mostly white and male. There was, however, considerably more diversity when we factored in characteristics such as age, experience, tenure and expertise.

Measuring diversity based only on gender misrepresents the actual diversity in corporate boardrooms.
On the one hand, diverse boards could reduce the level of corporate risk taking, discouraging innovative and risky projects.

On the other hand, if firm management is overly aggressive in its use of corporate funds for investing in risky projects, our results suggest that more diverse boards could perform better oversight of corporate risk taking than less diverse boards.
Rini Laksmana, associate professor of accounting at Kent State University, and Agus Harjoto, associate professor of finance at Pepperdine University, collaborated on the research for the project reviews.


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Help Ecosystems

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Executive sponsorship

In order to change management to help the entire organisation uses marketing people alignment because timing is everything.

Corporate venture capital is picking up speed in the investment industry, as large companies start setting aside funds for external investment in fledgling companies or startups. Tech giants like Intel, Dell and AMD all have strong track records with their proprietary funds, and more companies like Microsoft and Salesforce are now entering the venture-fund game.

During the past four years more than 475 corporate venture funds have started, bringing the worldwide total to more than 1,100, according to Global Corporate Venturing. With this surge comes a lot of uncertainty.

 

How will corporate venture-capital players influence the funding ecosystem?

Entrepreneurs need to know when choosing between corporate and traditional venture-capital partnership. Large companies can be slow moving and bulky, making it tricky to come up with innovative products or services. That’s especially true for the pharmaceutical, technology and telecommunications industries where internal R&D usually means more hiring, higher capital expenditures and increased fixed operating costs, all without the guarantee of a return.

A corporate venture fund, however, provides an opportunity for innovation without paying high R&D costs or incurring too much risk. Corporate venture capital also lets large companies operate on a smaller scale, which lets them innovate faster, conduct research on disruptive technologies and pre-empt competitors. And it’s an efficient way for companies to explore potential acquisition targets.

Data from Crunchbase shows that about one-third of corporate venture-backed startups have been acquired, versus 10 percent of startups with funding only from private venture capital.

Corporations can use their venture arms to influence their industry’s ecosystem by identifying new markets and building up their existing businesses. According to a recent Volans report,

“Corporate venture capital accounted for 1,068 investment deals worth $19.6 billion last year.”

Since 5,753 venture-capital transactions worth $48.5 billion occurred in 2013, corporate ventures comprised nearly 20 percent of all deals and 40 percent of transaction value worldwide.

A traditional venture-capital firm raises money primarily from institutional investors and high-net-worth individuals, while corporate venture capital uses cash reserves from a parent company to fund new endeavors. This difference is significant because it means more external pressure is typically put on independent venture-capital firms to generate above-average returns.

Since corporate ventures are typically considered R&D alternatives, expenses are already built into the business structure. And separate revenue-generating businesses help offset any corporate venture-capital losses. That’s a safety net that traditional venture-capital firms don’t have. Corporate venture-capital efforts also have the advantage of involvement with startups at the early stages, when they can most benefit from access to a large, established customer base, credibility through brand association and a larger network of partner companies and advisors.

Corporate venture-capital efforts can make good co-investment partners with traditional venture capital firms because each brings different expertise to the table. Venture-capital firms have the drive and know-how to realize financial results while corporate-venture capital groups provide industry knowledge and a talent pool.

 

Given all these advantages, why isn’t a larger proportion of total deals in the venture-capital space taken up by corporate funds?

For one, independent venture-capital firms still hold a competitive advantage over their corporate counterparts due to their flexibility, speed and experience in helping companies succeed financially. Corporate venture-capital firms that benefit from high cash flows might be willing to spread out their investments over a few similar companies and take a back seat in terms of driving their growth, while a venture-capital firm is typically motivated to take a more focused and hands-on approach for its portfolio companies.

Corporations have been actively investing in venture capital since the mid-1960s, when the venture capital industry itself was just emerging. But as more corporations become involved, the emphasis on how to build the next generation of businesses could shift away from high valuations and quick exits to creating a nurturing environment for bigger and better ideas.


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