Messages

31

Business Administration / Characterstics of Business Market on the basis of decision and the decision proc

« on: April 19, 2017, 10:03:07 AM »

On the basis of types of decision and the decision process:

1. More complex buying decision: Business buying decision is more complex than consumer buying decision. Business purchases often involve large sums of money. In business buying decision, buyers have to take some important and complex decision.

2. More formalized buying process: Business buying process is more formalized than any other buying process. In businesses buying process,                                                                       it has to maintain some formalities which are not to be followed in any other buying process. It calls for product specifications, written purchase order, careful supplier search etc. So this buying process is more complex.

3. More dependent: Personal selling is very much effective in business buying, because buyers and sellers are very much close in this buying. They work more closely together. As a result they maintain a long term relationship.

32

Business Administration / Characterstics of Business Market on the basis of nature of the buying unit

« on: April 19, 2017, 10:02:27 AM »

On the basis of nature of the buying unit:

1. More decision participants: Business purchases involve more buyers. In case of business buying process, they have to consider the price, quality, delivery date etc very highly. All the things may not be done by a single person.

2. More professional purchasing effort: Business buying is done by trained purchasing agents who spend their working lives learning how to buy better. Buying committees made up of technical experts and top management is in the buying of major goods.

33

Business Administration / Characterstics of Business Market on the basis market structure and demand

« on: April 19, 2017, 10:01:22 AM »

On the basis of market structure and demand:

1. Fewer but larger buyers: The business marketer normally deals with fewer but larger buyers than the consumers market does. For example, the tire company’s fate/market share depends upon getting contracts from a few major automakers and few large buyers of aircraft engines.

2. Demand is derived: The demand for business goods is ultimately derived from the demand for consumer goods. For example, the US General Motors alone purchases 7% of domestic steel which indicates that the demand of steel is derived from the ultimate car buyers.

3. Inelastic demand: The total demand for many business goods and services is inelastic that is not much affected by price changes especially in the short run because producers cannot make quick changes in production method. For example- a drop in the price of sugar cane will not cause sugar manufacturers to buy much more sugar cane unless it results in lower sugar prices that in turn will increase consumer demand for sugar.

4. Fluctuating demand: The demand for business goods tends to be more volatile/unstable than that of consumer goods. The demand of business markets fluctuate more and more quickly. For example, Sometimes a rise of only 10% in consumer demand   as much as 200% rise in business demand for products in the next period.

34

Business Administration / Original equipment manufactures (OEM):

« on: April 19, 2017, 09:59:54 AM »

Original equipment manufactures (OEM): OEM Purchases industrial goods to incorporate into the other products and sell them in the industrial or ultimate consumer market. For example: Intel produces the micro processors, and then IBM would be classified as OEM.

35

Business Administration / Industrial Customers

« on: April 19, 2017, 09:59:24 AM »

Business marketing organizations normally serve three types of industrial customer. They are:

1. Commercial enterprises.
2. Governmental organization.
3. Institutions.

1. Commercial enterprises: Commercial enterprises are the organizations which buy the products for business, further production etc with a view to earning profit. It can be classified into three categories:

a. Users: Users purchase industrial products or services to produce other goods and services and sell them to the industrial or consumer markets. When purchasing machine tools from general motor then the auto manufacturer is the users.

b. Original equipment manufactures (OEM): OEM Purchases industrial goods to incorporate into the other products and sell them in the industrial or ultimate consumer market. For example: Intel produces the micro processors, and then IBM would be classified as OEM.

c. Dealers and distributors:  Dealer and distributor include those commercial enterprises that purchase industrial goods for resale without changing its form. The distributors accumulate, store and sell a large assortment and goods to industrial users.

2. Governmental organization: To lead the nation govt. needs a lot of material and immaterial resources like office supplies, arms and weapons, fuel, food products, technological know how etc which can be a large market to the industrial marketer.

3. Institutions: Public and private institutions constitute another class of industrial customer such as churches, hospitals, colleges and universities etc. They have different buying patterns, some institutional customers such as public universities have specific purchasing procedures that are rigidly/strictly followed and others follow less standardized approaches. 

36

Business Administration / Facilitating goods

« on: April 19, 2017, 09:58:21 AM »

Facilitating goods: Facilitating goods are those which not become part of finished product. It just supports organizational operation. It includes supplies and business services.

a. Supplies: Every organization requires-
   
i. Operating supplies like typing paper, lubricants.
   ii. Maintenance and repair items like paint, cleaning materials.

b. Business Services: Sometime organizations go outside for specialist to perform specific functions. It includes-
   
i. Maintenance and repair support like window cleaning machine.
   ii. Business advisory services like legal & management consulting, advertising etc.

37

Business Administration / Foundation goods

« on: April 19, 2017, 09:57:47 AM »

2. Foundation goods: Foundation goods are those which help the production process for the long time. It is the capital items. Their cost is depreciation expenses that are assigned to the production process as original cost. It includes-

a. Installation: It includes long term investment items which help the manufacturing process. Such as building, land, rights and fixed equipment (ex-generators, computers, elevators)

b. Accessory equipment: These products are generally less expensive and shorter lived capital items than installation and not considered as a part of fixed plant. Example; Portable or light equipment that means hand tools, lift trucks or office equipment such as type writer, desks.

38

Business Administration / Entering goods:

« on: April 19, 2017, 09:57:16 AM »

1. Entering goods: Entering goods are those which become a part of finished product. Their cost is an expense items that is assigned to the manufacturing process. This category of goods consists of raw materials and manufactured materials and parts.

a: Raw materials: they enter the production process of the buying organization basically in their natural state. It includes both farm products and natural products.
   
i. Farm products are wheat, cotton, livestock, fruits and vegetables.
ii. Natural product are fish, lumber, crude petroleum, iron etc.

39

Business Administration / five types of industrial demand.

« on: April 19, 2017, 09:56:58 AM »

There are five types of industrial demand. They are:                                                                                                                                                                                                                                                                       

1. Derived demand
2. Environmental forces influence demand
3. International competition
4. Stimulating demand.
5. Price sensitivity.

1. Derived demand: The demand of industrial products is derived from the ultimate demand of consumer demand that means the demand of industrial products is depends on the consumer demands. Industrial customers like commercial firms, governments, institutions purchase goods and services to produce other products and services which will be consumed by their potential customers. So here demand is derived from the ultimate consumers.






2. Environmental forces influence demand: In monitoring and forecasting demand, the industrial marketer must look after carefully some factors like; competitive, economic, political and legal environment that directly or indirectly influence the final demand. For an example Japan has competitive advantages over technology based production for that she produces technological product as it has demand.

3. International competition: Now-a-days an increasing number of industries are not domestic but world wide market share. As a result competition in industrial is increasing. So, the companies should target those markets whose needs can be satisfied and whose competitors can be handled.

4. Stimulating demand: In industrial marketing the industrial marketer should first observe the demand. Then he should stimulate the demand of the ultimate consumer.

5. Price Sensitivity: When the ultimate consumer will be price sensitive then the industrial producer also be sensitive to the price. As a result the industrial marketer should pay keep attention to the price and demand. 

40

Business Administration / Re: বাংলাদেশে নিউটন তৈরী হয়না।

« on: April 17, 2017, 05:09:23 PM »

Good Post

41

Tourism & Hospitality Management (THM) / Re: Investigating the Impacts of Visitors’ Attitude on Visit Intention in Context of

« on: April 17, 2017, 05:08:02 PM »

Thanks

42

Business Administration / National competitive advantages

« on: April 15, 2017, 09:17:28 AM »

National competitive advantages
1. Factors endowments: All the factors of production are available in the concern area is a competitive advantage to the company. It helps to balance cost & quality.
2. Local demand: The product having local demand is also a competitive advantage as it can be sold after production. 
3. Competitiveness of related or supporting industries: The support of the small and middle supporting industry is the major competitive advantage to business firm.
4. Congruence of strategy & structure & intensity of Rivalry: If the strategy, structure and competition are in tune with the business the firm will get maximum productivity.
5. Home trade is a prerequisite of foreign trade: The foreign trade is allowable if and only if the products get the permission to do business in the home country. For example- Wine is not allowed in our country, so the export of wine is out of question.

43

Business Administration / Implementation skills

« on: April 15, 2017, 09:16:54 AM »

Implementation skills
1. Diagnosis skill: The skill of a manager is to find out the main cause of the symptoms and problems of the business organizations.

2. Identification of the company level: Whether the problem occurs in the corporate, function or business level.

3. Implementation skill: The efficiency to bring the best productivity by monitoring and controlling the program.

4. Evaluation of skill: The evaluation of the performance of the specific SBU ensures the total and maximum productivity for the organization.

44

Business Administration / Four building blocks of competitive advantages-

« on: April 15, 2017, 09:16:18 AM »

Four building blocks of competitive advantages-
1. Efficiency: To determine how efficiently they are using organizational resources, managers must be able to measure accurately how many units of inputs (raw materials, human resources, and so on) are being used to produce a unit of output. They must also be able to measure the number of units of outputs (goods and services) they produce. 
2. Quality: Today, competition often revolves around increasing the quality of goods and services. In the car industry, for example, with each price range, car competes against one another in terms of their features, designs and reliability.
3. Innovation: strategic can help to raise the level of innovations in an organization. Successful innovation takes place when managers create an organizational setting in which employees feel empowered to be creative and authority is decentralized to employees so that they feel free to experiment and take risks.
4. Responsiveness to customers: Finally, strategic managers can help to make their organizations more responsive to customers if they develop a control system that allows them to evaluate how well employees with customer contact and performing their jobs. Monitoring employees’ behavior can help managers to find the ways to increase employees’ performance level, perhaps by revealing areas in which skills training can help employees or by finding new procedures that allow employees to perform their job better.

45

Business Administration / Steps of PEC:

« on: April 15, 2017, 09:15:14 AM »

Steps of PEC: the five stages in this evolutionary process, which the authors call the product evolutionary cycle (PEC) are as follows…

1. Divergence: it is the start of a new product type (eg. TV). This term is suggested because most often a product is not an entirely new concept but a modification or combination of existing products and technologies. It is a divergence from a line of product evolution. Thus TV may be considered an evolutionary divergence from the radio and the motion picture.

2. Development: it is the pattern that occurs where a new product’s sales increase rapidly and the product is increasingly adapted to suit consumer needs best.

3. Differentiation: it is the pattern that occurs when a highly successful product is differentiated to suit varying consumer interests.

4. Stabilization: it is a pattern characterized by few and minor changes in the product category, bur numerous changes in packaging, service deals, product accessories, and stable or fluctuating sales. For example black and white TV to Plasma TV.

5. Demise: it occurs when a product fails to meet consumer expectations or can no longer satisfy changes in consumer demand. Sales decline and the product is ultimately discontinued.