Mgt101 assignment 1 fall 2012 solution

MGT610 GDB Solution Fall 2012

I'm not sure how to answer this question, but here are some "ways" through which a company can maintain a good repute (keeping intact basic ethics) alongside a steady flow of profits.

(A) MANAGEMENT. The ethical stance of a company originates from the consistent integrity of its senior officers. From the first day in business, they inform all employees that the primary focus of the organization will be equitable and unbiased service. Customer satisfaction will always be given top priority. 

These objectives should be proclaimed proudly in all media advertising. Members of the public, frustrated with the half-truths and price-gouging so prevalent in business today, will be more than willing to give this refreshingly honest enterprise a try. 

(B) STAFF. The employees must also be committed to the maintenance of high ethical standards. In turn, they, themselves, must be treated as valued members of the organization and be well compensated for their work. Overtime hours and contributions to the efficiency and improvement of the operation must be recognized and rewarded. 

The staff will become ambassadors of goodwill for the organization. Word will soon be spread around the community that the company is a great place to work, and there will be no shortage of skilled and qualified workers anxious to come on board as the company grows. 

(C) CUSTOMERS. With competent workers, high ethical standards and an overall commitment to excellence, any organization will very quickly secure a nucleus of satisfied customers and all their repeat business. 

( D) THE COMMUNITY. The community will become your advertising agents. You will be recommended to the friends and neighbours, relatives and co-workers of your regular customers. Your reputation for high ethical standards, honesty, and good service will draw an ever-increasing number of new clients . Your greatest problem will be finding time and room to expand. 

(E) YOUR COMPETITORS. They will notice their customer base dwindling, and realize they either have to adopt improved professional practices or look around for another location outside the sphere of influence of your company and its satisfied and loyal customers. 

The link between business ethics and profitability is undeniable. Smart business owners know this. They repay their staff and customers by being honest, trustworthy, conscientious, and by sharing some of the benefits and profits they accumulate through others' effort and loyalty .

Could add, that since the question itself talks about technology, organizations could avoid exaggerating about themselves over the internet. 

Instead indulge in some honest yet clever marketing techniques, through which they dont violate business ethics however attract customers at the same time.

Mgt610 VU Current Assignment No. 1 Spring 2012 Solution

“Is it compulsion or persuasion to implement ethical

practices in business? Take a position and support

with relevant facts

Idea solution:

In organization, while working its necessary to follow the ethic’s rules and persuade

them in day to day work by employees. Compulsion in implementing ethical

practices will help business to grow. People feel responsible when they compelled to

follow the ethics and it will be good for the business as well in following :

1. Improve customers' confidence : Business ethics are needed to improve the

customers' confidence about the quality, quantity, price, etc. of the products.

The customers have more trust and confidence in the businessmen who

follow ethical rules. They feel that such businessmen will not cheat them.

2. Survival of business : Business ethics are mandatory for the survival of

business. The businessmen who do not follow it will have short-term success,

but they will fail in the long run. This is because they can cheat a consumer

only once. After that, the consumer will not buy goods from that

businessman. He will also tell others not to buy from that businessman. So

this will defame his image and provoke a negative publicity. This will result

in failure of the business. Therefore, if the businessmen do not follow ethical

rules, he will fail in the market. So, it is always better to follow appropriate

code of conduct to survive in the market.

3. Safeguarding consumers' rights : The consumer has many rights such as

right to health and safety, right to be informed, right to choose, right to be

heard, right to redress, etc. But many businessmen do not respect and

protect these rights. Business ethics are must to safeguard these rights of the

consumers.

4. Protecting employees and shareholders : Business ethics are required to

protect the interest of employees, shareholders, competitors, dealers,

suppliers, etc. It protects them from exploitation through unfair trade

practices.

5. Develops good relations : Business ethics are important to develop good and

friendly relations between business and society. This will result in a regular

supply of good quality goods and services at low prices to the society. It will

also result in profits for the businesses thereby resulting in growth of

economy.

6. Creates good image : Business ethics create a good image for the business

and businessmen. If the businessmen follow all ethical rules, then they will be

fully accepted and not criticised by the society. The society will always

support those businessmen who follow this necessary code of conduct.

7. Smooth functioning : If the business follows all the business ethics, then the

employees, shareholders, consumers, dealers and suppliers will all be happy.

So they will give full cooperation to the business. This will result in smooth

functioning of the business. So, the business will grow, expand and diversify

easily and quickly. It will have more sales and more profits.

8. Consumer movement : Business ethics are gaining importance because of the

growth of the consumer movement. Today, the consumers are aware of their

rights. Now they are more organised and hence cannot be cheated easily.

They take actions against those businessmen who indulge in bad business

practices. They boycott poor quality, harmful, high-priced and counterfeit

(duplicate) goods. Therefore, the only way to survive in business is to be

honest and fair.

9. Consumer satisfaction : Today, the consumer is the king of the market. Any

business simply cannot survive without the consumers. Therefore, the main

aim or objective of business is consumer satisfaction. If the consumer is not

satisfied, then there will be no sales and thus no profits too. Consumer will be

satisfied only if the business follows all the business ethics, and hence are

highly needed.

10. Importance of labour : Labour, i.e. employees or workers play a very crucial

role in the success of a business. Therefore, business must use business ethics

while dealing with the employees. The business must give them proper wages

and salaries and provide them with better working conditions. There must be

good relations between employer and employees. The employees must also be

given proper welfare facilities.

11. Healthy competition : The business must use business ethics while dealing

with the competitors. They must have healthy competition with the

competitors. They must not do cut-throat competition. Similarly, they must

give equal opportunities to small-scale business. They must avoid monopoly.

This is because a monopoly is harmful to the consumers.

Some more are:

• Enhanced reputations and good will

• Reduced risks and costs

• Protection from their own employees and agents

• Stronger competitive positions

• Expanded access to capital, credit, and foreign investment

• Increased profits

• Sustained long-term growth

• International respect for enterprises and emerging markets

Mgt111 GDB No. 1 solution Spring 2012

The values of freedom, respect for human rights and the principle of holding periodic and genuine elections by universal suffrage are essential elements of democracy. In turn, democracy provides the natural environment for the protection and effective realization of human rights. Background (Preamble): Issues: 1. Violation of Human Rights in Pakistan. 2. No Fair election. 3. Dictatorship. 4. Now State of emergency to save political power. 5.Ban of Media. Today the top politicians of Pakistan are busy in saving democracy. What one wonders is which democracy are they engrossed in saving. Democracy is defined as a form of government in which all citizens of the state have an equal say in the decisions that affect their daily lives. Abraham Lincoln defined democracy as ‘by the people, of the people, for the people’. Here in Pakistan whenever elections are held, the party that loses immediately starts saying that the elections were rigged. Those voted into power are generally clueless about governance and statesmanship. If the political leaders fear that the army will take over the country how do they propose to save democracy and which democracy will they have saved. Whenever there has been a military coup we have never seen the citizens taking to the streets in protest. In fact they have heaved a sigh of relief. Living in palatial residences, being nurtured into politics by military despots does not breed leaders. There are hardly any political leaders in this country who don’t have skeletons in their cupboards. And they are so scared of any establishment baring these skeletons that they stick to their well versed mantras. A democratic country generally has two major political parties in the parliament, one in power, and the other in the opposition. It’s the work of the opposition to ensure that the party in power delivers good governance and works for the welfare of the citizens. In which democracy has the term ‘friendly opposition’ been used to describe the working of the opposition? Pakistan has sunk to the bottom among the nations of the world while the politicians have been busy in ‘saving democracy’. Nobody wants to come here, let alone invest over here. Inflation has crossed all limits and the citizens for whom democracy is being saved are living from hand to mouth. There is no hope in sight, light at the end of the tunnel that the nation can see or hope to see that will alter their lives. Lives can be changed; the nation can be pulled out from its misery if we can find honest leaders. Leaders who will work relentlessly for the people; deal with a firm hand to end corruption; not get busy in amassing their own wealth. If a nation prospers and it has honest hard working leaders who put the needs of their citizens above everything else; democracy will not have to be saved. It will flourish and bloom on its own.

Another Solution

FUNDAMENTAL RIGHTS AND PRINCIPLES OF POLICIES
Constitution 1973

ANSWER:

Pakistani government and civil society have take steps towards the implementation of universal human rights over recent years. The quality and characteristics of democracy is slowly improving now. Pakistan has entered in many of key human rights treaties with other such institutions and recently accepted the UN Covenant on Civil and Political Rights and the UN Conventional against Torture.
Judiciary is more independent than before. Media become free to dispose and criticize the government matters and actions and become progressed so fast.
Human rights are an indivisible part of our foreign policy.
Pakistani Parliament become so powerful and had a first female speaker.
There is particularly high rate of violence against women but now government is taking steps for providing the fundamental rights to the women and children.
The 1973 Constitution contains
Fundamental Rights and Principles of Policies which give basic rights to citizens. Some of the articles pertaining to human dignity and respect given in constitution are as follows:-

• Security of a person,
• Safeguards as to arrest and detention
• Slavery, forced labor prohibited
• Inviolability of dignity of man: privacy of home shall be inviolable and safe.
• Freedom of movement: Every citizen have right to move freely and reside and settle at any place in Pakistan.
• Freedom of assembly: Every citizen shall have right to assemble peacefully.
• Every citizen shall have freedom of trade, business or any other profession but these must be lawful.
• Every citizen have right to freedom of speech and expression, but it must be within lawful limit.
• Every citizen has a right to freedom to announce his religion and to manage religious institution.
• No person shall be taxed for the income that he spent for his religious propagation and maintenance.
• Safeguard as to Educational Institution in Respect of Religion. The principle of secularism, as opposed to religious extremism, violence and terrorism. All citizens are equal before law and all are protected equally by law.
• Democratic pluralism and equal rights for all without discrimination on the basis of race, religion, ethnicity, gender and political belief, sex, place of birth.

Mgt301 VU Current Assignment Solution Spring 2012

Answer # 1:-

Jamal is Using Production Concept

Babar is using Product Concept

Tauqeer is using Selling Concept

Ali is using Social Marketing Concept

Answer # 2 :-

There are a number of factors which can contribute to an impending crises or cause the failure of a business. We will now examine two causes that can impact on a business’ performance – indequate financial control and competition.

Inadequate Financial Control Inadequate financial control is a common cause of business decline and impacts on management’s ability to identify areas in a business that are losing money and “burning” cash.

It is common to see failed businesses that have not had proper financial controls. To successfully control a business’ financial affairs, it is important to have regular and accurate information. Additionally, effective systems are fundamental to providing key information and reporting on a frequent basis.

Inefficient systems can be divided into the following four categories:

1. Complex systems and irrelevant information

Management is provided with comprehensive monthly reports that go into too great a detail to report the results of the business. Often these are too cumbersome and fail to provide the specific information relevant to managers for decision-making.

Examining the timeliness, reporting methods and data produced from your own internal accounting packages, or those externally utilised, is an important step in addressing the information which is actually available and beneficial to management.

2. Ineffective use of information
Preparation and review of regular monthly management accounts or reports is an effective way of ensuring that management is basing decisions on timely and consistent information. Additionally, tailoring your accounting package to produce reports specific to your individual requirements will assist in the production and interpretation of meaningful data.

3. Organisational structure hinders decision-making
Information must be disseminated and provided to the relevant manager in order to effectively interpret and implement strategies. For example, inefficiencies may arise when a company has a centralised operation and reporting structure, yet the information for decision-making occurs at the “coal face”.

4. Inaccurate method of overhead cost allocation
A reflection of product or divisional performance and costs may be distorted by a company’s method of overhead cost allocation. Accurate costing must be implemented to ensure that products and divisions are appropriately managed, and decisions are based on correct information.

Competition
Competition is another cause regularly cited for corporate failure, and is classified as either price competition or product competition. It is common to see a business involved in both price and product competition simultaneously.

1. Product competition
Products have a distinct life cycle, the length of which varies significantly on the product and industry. A failure to consider a product’s life cycle and respond to changing markets may lead to business decline.

Inefficiencies occur when management lack the expertise to interpret the information provided, which is often an overview of the results achieved in previous months. This results in decisions being made without sufficient input and forward planning.

To ensure a business does not succumb to the obsolescence of its product, it is critical the stages of the life cycle are identified and responsive strategies developed and implemented to move with the times.

Such strategies may include:
o development of new products/replacements;
o improvement in the technical know-how to develop better products;
o diversification into new product areas; and
o establishing joint ventures.

2. Price competition

Price competition can lead to corporate failure. Though other factors played a part, the business demise of these companies was largely affected by competitive pricing strategies in their respective markets.

Some markets will be more price sensitive than others due to the nature of their industry, with businesses operating in these highly sensitive markets being less profitable. Industry participants with higher cost structures find it increasingly difficult to compete and suffer a lack of profitability.

Ultimately, the ability of a business to prosper whilst in a price competitive
market depends on their internal controls and strategies. Success over a competitor is usually attributed to several factors where one business outperforms the others.

These factors can include:
o a product focused for its market;
o product differentiation; and
o Lower costs.

There are many factors which can impact on a business’ success or failure.

Regular assessment of the status of your business is critical and where symptoms and causes are identified, remedial action is to be implemented on a timely basis 1- Early expansion- Production of goods and services increase rapidly. Interest rates and inflation are low as consumer confidence rises. People tend to borrow and spend more. Blue Collar Investors are more bullish during this phase.

3- Peak- Economic growth rate peaks and begins to drop. We usually see a decline in consumer confidence oftentimes due to increased interest and mortgage rates. We should be more conservative in our investment strategy (sell in-the-money strikes for example).

4- Recession…the “R” word- Two consecutive quarters of negative GDP is the most adhered to definition. We are always in a recession long before we know it or until the previous quarters GDP figure becomes public. Consumer demand declines as does corportate production and employment. Needless to say, stock prices decrease and we are bearish investors during this phase.

Recessions normally last between 6to16 months with an average of about 10 months.

Should a recession last 18 months or more, the economy is said to be in a depression.

2- Late expansion- Demand for goods and supplies surpass supply causing prices to increase.

Heavy borrowing leads to increased interest rates. Stocks prices continue to rise but may be nearing a top.

5- Recovery- The economy hits bottom and begins to grow. Interest and mortgage rates have dropped causing increased consumer confidence and spending. The stock markets are geared to take off and we must be prepared to take advantage. We’re getting that bullish (out-of-the-money strikes) feeling again.

Strategies to overcome recession for established companies

It is true that recession is a curse to any business, but this recession can also be a big opportunity to attract new clients and boost the sales if one knows know and have mastered the marketing and sales methods that work best in recessionary times.

Below are some strategies and marketing techniques which can be employed during recession to increase sales and profits.

Reactivate dormant accounts
Reactivate old leads

It is said that most of the sales people give up too early or in other words with very little more efforts you could have added that client to your business. According to the study, 80 percent of sales to businesses are made on the 5th sales call, but only 10 percent of salespeople call beyond three times! So you have probably not followed up on leads diligently enough, and the new business you need may already be right in your files. So the best way to get them back is to call them back and enquire for projects. This technique can be profitably used on prospects who have inquired within the last year or two. The best prospects, however, would probably be those who contacted you within the past 6 months.

Help existing clients or customers create new assignments or sales for you

When the economy is slow and your clients are not calling you for projects it is suggested that you call them and help them come up with assignments for you. So obviously the strategy here is “here is my idea that can help you Mr. Client and I would be happy to help you”. This will generate additional revenue and helps in building long term relationship with the client.

Give superior level of services to your customers and clients

In a recession, or during other times when business is slow, you want to do everything you can to hold onto your existing clients or customers-your "bread--and--butter" accounts. The best way to hold onto your clients or customers is to please them. And the best way to please clients or customers is to give them not their money's worth, but more than their money's worth. Now is the time to go the extra mile, give that little bit of extra service that can mean the difference between dazzling the client or customer vs. merely satisfying the client or customer. The best Reactivating dormant accounts is nothing but re contacting the customers whom you served once and not working with him right now. Just go through your past client list and contact the old customer and make him know that you are interested in doing business with him again.

Quote reasonable, affordable fees and prices in bid situations

Use low cost “add-ons” to generate additional revenue

Try to add extra revenue generating business to the existing project or assignment that is being carried on to the customer. Often the current project may require additional service upon which the company can leverage to generate additional revenue. So it is always suggested to look for ways to add extra or ancillary assignments to the major assignment. It is good for you as it generates extra revenue and good for the client as it gets complete service.

Although it sounds good to be a prima donna when you think from your perspective, but think from the perspective of customer. The customer wants service as quickly as possible. Take an example of a very famous doctor. You want his services because he is an expert. But you hate to wait and you are constantly looking for an alternatives solution. And when the situation reverses and things are slow you need business, and the client or customer knows you need work from them, but they don't need you--they'll take revenge. And you'll be out. So always act like a pro like a helpful friend and consultant to your client. Make sure that you have business when you need it tomorrow by acting professionally and properly today.

Downgrade slightly your acceptable client or customer profile

Avoid being a prima donna

During recession businesses are unusually price sensitive. It is suggested to bid competitively, but reasonably. If you are high-priced to begin with, and you insist on getting top dollar, be prepared to lose out in some bidding situation. But don’t reduce your price drastically as you won’t be able to bring it up quickly. As a thumb rule it is suggested to adjust the price by 15- 20% lower than usual. Always bid toward the middle or lower end of your published fee range, rather than at the maximum. Do not tell clients or customers that the fee is a special reduced fee.

Simply present it as your bid on the project. If customers and prospects sense you are cutting fees because you are losing assignments, they will take advantage and try to force your prices even lower. So keep your pricing tactics secret, and simply present the price as you normally would.

protection against a downturn in new business is an active list of happy, satisfied clients or customers--people or firms who give you a steady stream of continuing assignments that pay the rent and feed the family. So cultivate your current clients or customers. Nurture them. Serve them well. Do everything in your power to make them happy and keep them satisfied with your product or service--so they keep coming back for more. You must provide not only a high quality product, but also exceptional customer service. When money's tight, clients expect more for their dollar. If you want to keep their business, you must keep them happy. Refine your customer service strategy to insure that every step from taking the order to delivering the product is client-focused and effective. You may want to conduct a customer satisfaction survey or two in order to make sure your customers' needs are being met. Also consider making your service more valuable to clients with faster delivery times, wider selections, or more flexible payment terms

Generally the company has set of guidelines and regarding your most valuable clients. During a depressed economy or personal business downturn, you may want to be more flexible in this area than you usually are. For instance, if you normally do business with Fortune 500 companies only, you may want to consider taking on assignments from smaller local firms ...provided the pay is decent and their credit rating is good. Or, if you normally work only on major annual reports, you might consider knocking out some small quarterly reports to generate needed revenue. This doesn't mean you throw your standards out the window and work for anyone who calls you. Far from it. Instead, you are simply readjusting your acceptable client or customer criteria during this temporary lull to accommodate a wider range of prospects and projects.

Postpone any planned fee increases
Plan an aggressive new marketing campaign
Repackage your services to accommodate smaller clients or customers and reduced budgets These alternatives may not provide as complete a solution as the deluxe package. But they give the smaller client or customer the help he needs at the price he can afford. When the big companies are not giving you the big orders at the big prices, selling these alternatives to the less affluent segment of the market can put lots of extra dollars in your pocket Freelancers, consultants, and other service providers can repackage their expertise and services in a variety of formats including hourly consultations. Manufacturers and other product sellers One of the biggest mistakes business owners make during periods of economic slowdown is to cut back on marketing and advertising, doing this could be most detrimental to your business.

Instead, your marketing needs to be more aggressive and more comprehensive than ever. Start by contacting past clients and simply touching base. Chances are a good number of them will have projects or assignments for which your services may be required. When things are slow, increase the percentage of your time spent on marketing and prospecting for new business. For instance, if you usually devote 10 percent of your time and energy to marketing and sales when things are fairly busy, increase this to 25 percent when things are slow. During a lull, make an extra effort to attract clients, follow up on leads, and close sales. In fact, to prevent a lull in business from ever happening in the first place, market consistently and aggressively all year long, every week not just when you need the business. Planning an ongoing marketing campaign ensures a steady stream of leads.

In the recessionary conditions always try to defer your plans to increase the fee for the services even if you feel you deserve it. Don't announce to your customers and prospects that you are "holding the line" on prices due to the recession and your desire to help them through it.

Remember, even though you are feeling the effects of a soft economy, they may not be going through similar difficulties. Thus, your announcement would clue them into the fact that you are in trouble ...and some may take advantage of your perceived need of business by haggling on price with you. So leave your fee schedule as is and continue with business as usual.

can offer compact models, economy sizes, no--frills versions, special discounts, payment plans, and smaller minimum orders.