management philosophy

MANAGEMENT PHILOSOPHY

What Is Management Philosophy?

• Management philosophy Is a kind of idea that is used to articulate a person’s judgement on best management exercise. Philosophy is the study of the original nature of facts, reality and survival which is categorized under the academic authority.

Organizational Philosophy

• An organization philosophy is glue that joins everyone in an organization together so that they can all focus there on the attainment of excellence. The key differentiator is that a management philosophy is not a set of specific business tasks or method subject to improvement. Instead it is all about how people will be treated, not because someone dictates it, but because that is the “right way ”.

Definition of Management Philosophy

• “Management philosophy is that set of rational principle which form the basis for guiding or controlling the operation or performance of a business activity”.

Management philosophy an export pricing

• A company or corporation is to achieve certain objectives which guide business policies and strategies. This objectives or motives also affect the pricing strategies to be followed by a firm in the export market.

Profit Maximization

• Under certain circumstances, profit may be the chief motive of the company in exporting the product. If, the management is not keen on export as a policy measures, it may set for itself the objectives of profit maximization. It is such cases, unless export results in profits similar to those earned in domestic markets, the company may not be interested in export as a business .the pricing, therefore, shall absorb the full cost depending upon the level of production.

Plan To Meet Fierce Competition

• A company may plan to introduce its product in a particular market. Export marketing offers a fierce competition. Already established competitors may have brand loyalty and established channels of distribution and enjoy a good market share. In such an environment, a new producer-exporter who wants to introduce his product will make his product more attractive so that it may generate a certain amount of brand loyalty. For this purpose, the easiest way to offer the product at a very competitive price, perhaps at a price which is below its cost price. The loss in such a market may be set off against the profits in other export markets or an domestic market.

To Adopt Penetrating Export Pricing

• A situation may also arise when the new entrant in an export market adopts penetrating pricing strategy and offers a very low price with a view to capture the market through high pressure on sales campaign and lager price discount policies. The existing well established exporting firms may be forced to offer the matching discount in prices to retain their share of the market and in order to out to new entrant.

For Example

Apple

• On low-end devices, Apple CEO Tim Cook told Bloomberg Business week in an interview last year, “We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.”

• Steve Jobs, whose strategy for Apple had four pillars:

•     Offer a small number of products.•     Focus on the high end•     Give priority to profits over market share•    Create a halo effect that makes people starve for new

Apple products

TATA HARPER SKINCARE

• “Transparency is important to us as a company and our goal is to be open and honest with you, our customers and friends”.The primary factors that affect how they determine their price:

• Unique R&D process• Highest quality ingredients available• High concentrations of natural actives• Ecologically sustainable• Economic viability

Presented by:

Harsh Jain Kshama Jain

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