Presented to,

Sir Suhail Nazar & class felows

Groups member’s are:

Names Roll# Hafiz M Abdullah 07 Imtiaz Hussain 14 M.Arshad 11 Kamran Mukhtiar 17

Your Company needs to better Define and Monitor its Competitors

Signs

Your Company over focuses on its near Competitors and misses distant competitors and disruptive technologies.

Your Company lacks a system for gathering and distributing competitive intelligence.

You are focusing on Wrong Competitor

Companies usually find it easy to name their competitors. McDonalds would name Pizza Hut, and

Burger King etc They should include super markets that sell

prepared foods.

Company lacks a system for gathering competitive intelligence

Competitive intelligence means employing persons who have good knowledge and experience of competing against them. There should be a good competitive

intelligence system.

What Should You Do Now?

LOGO

Why organizations fail to manage the stakeholders.

What is a stakeholder?

It can be defined as: “ A person, a group or a system which affects

and can be affected by an organization’s action”

Stakeholders are the specific people or groups who have a stake in the outcomes of the organization’s actions

Types of stakeholders

Internal stakeholders Business owners Employees Managers, etc

External stakeholders They do not own or work with the business yet they

have an influence and interest in the business. They include

• Pressure groups• Associations and organizations like, press/media,

government, local communities etc.

Why organizations fail to manage its stakeholders

The reasons why companies fail due to improper management of its stakeholders include

1. Unhappy employees2. Selection of the 2nd grade suppliers3. Not dealing with distributors in an effective

manner. 4. Unhappy dealers5. unsatisfied investors

Unhappy employees

Ask any supervisor or manager what they consider to be their toughest challenge on the job and, eventually, they will tell you it's a disgruntled or unhappy employee.

A disgruntled employee can sabotage a company.

The signs of unhappy employees include High employee turnover Frequent failure to carry out policies Fraud Theft Absenteeism And in worst cases, violence as well.

The workplace is a complex social network

Why employees get unhappy

The workplace is a complex social network

Although employees do promise to love, honor and obey their employer, conflict no doubt will arise eventually; people are born to disagree.

Now it is upon the organization to whether look upon the conflict of opinion by a staff member as a disobedience or as a healthy activity.

The method of dealing with the conflict decides whether a company will have unhappy employees or not.

Second rate Suppliers

Suppliers are an important stakeholder for the business. Suppliers differ greatly in their capacity to deliver

products and services. An organization needs a quality supplier to deliver the best

quality to the customers and to achieve value. But sometimes the best quality supplier is already

occupied. Reason??

Reason…

The reason behind the pre-occupation of the best supplier could be anything like The supplier is already working at its full capacity, and cannot take

another customer. The supplier is only limited serving only one organization in an

industry. As a result your company is bound to hire the 2nd best

supplier in the market. There is one more reason why organizations hire 2nd best

supplier, that is lowering of purchasing cost. But in both the cases the organization bear some

additional costs and higher cost in dealing with those low quality suppliers and loss of customer due to reduced quality is another negative.

Ineffective distributors’ management

Often looked on as middlemen that add costs to material purchases, distributors are, in fact, a vital link in the any business, bringing tangible benefits to both material suppliers -- those manufacturing the materials -- and end-users

But the problem here is that a distributor carry competitors products as well. But companies usually expect them to give priority to their product, but this simply isn’t the case all the time.

Cont’d

Here the problem with the companies is that they don’t take distributor’s point of view into consideration.

A company should make rewarding terms with the distributor, they must feel that they gain as much or above benefit from selling your products, as selling of your competitors’.

Investors are not satisfied.

Investor satisfaction is the most important thing for your business, because they provide funds for the survival of business.

Investors are interested in high profits, higher ROI etc.

Investors’ satisfaction is revealed by the fact that how long would they keep their funds in your business.

Signs of investors dissatisfaction include Low profits Low share prices High cost of capital.

Over view

LOGO

Solutions to all these problems

Move from zero-sum thinking to positive-sum thinking.

In earlier times, the thinking of businessmen was that the business size is fixed, so to get the maximum share out of profit, he must give least to other partners i.e. employees, suppliers etc. that’s zero sum thinking.

Today the times have changed and there is a growing evidence that the way you treat your stakeholders has a direct impact on the outcome of your business.

For example: Many companies provide discount,

commission to their distributer and employees. Uniliver Banks offer bonuses on good performance.

Manage employees better

Employees work well, when they are well chosen, well trained, well motivated and well respected.

This thing doesn’t happen in an inflexible organization, where a firm hires people No training is given No participation in decision making Frequently criticize their work.

These are the sort of organizations who create unhappy employees.

For example: P.I.A

Manage supplier relations better.

In old times, companies used to have a bunch of suppliers for the same thing, like Giving 60% business to one supplier 30% to other 10% to another

The only reason behind this was to have all the suppliers competing for company’s business, reducing the purchasing costs.

This technique sure drives the purchasing cost down but on the expense of quality.

Cont’dTrend is moving towards, only one excellent,

specialized supplier for each category of your business.

For example: Toyota Dell

By doing this, the relation between the company and supplier grows stronger and it leads to Better quality Better productivity Innovativeness Reduced costs

Manage distributors better.

The quality of the distributor makes a great difference in your ability to satisfy the end-users.

So for that very reason, your company should attract the best distributors (wholesalers, dealers etc)

The key here is to get the distributor to place a high value on their relationship with you and as a result, put out special efforts on your behalf.

For example: Atlas Honda