The allocation of one or more intense processes of business to an outsider is called as business process outsourcing. The outsider who is an external provider provides the products or service design and quality to the business based on the agreed terms and conditions. It is an independent company but works in collaboration with the parent company.

Divisions of business process outsourcing

A business process outsourcing company like vlbpo.com provides services to a wide variety of businesses. They are as follows,

Outsourcing activities provide a great help for the content development activities in different areas such as network consultancy and management, engineering, design and animation, biotech research etc.

Business process outsourcing (BPO) undertakes activities of human resources which include education and training, recruitment and staffing, administration of benefits, hiring activities, payroll services and management of records.

Outsourcing in financial sector includes reporting and analysis of financial transactions, risk management services, tax consultation issues, transactions of accounting and billing services.

Services in administration department include processing of tax and claims, translation, transcription, management of assets and documents.

Credit/debit card services, processing of cheques and transaction processing which come underpayment services.

Business process outsourcing is also extending help in customer care which involves customer analysts, marketing of database, telemarketing, telesales, marketing and sales on the web, inbound call center, and administration of marketing and sales.

There are three kinds of Business process outsourcing models

Transactional Business process outsourcing

Comprehensive Business process outsourcing

Niche Business process outsourcing

Transactional Business process outsourcing:

In this process, the customer has to bear the risk involved in this process as it involves the customer keeping track of the predominant part of the in-house process. Only a single element of the whole process is controlled y the transactional business process outsourcing.

Comprehensive Business process outsourcing

All the transactional operations involved in the process and administrative issues are controlled by the comprehensive BPO model. This model is accountable for the huge amount, nearly 70% of the output produced. Comprehensive BPOs undertake deals that continue for a huge period of time i.e., for 7-10 years. In this model, the vendor acquires the assets of the buyer and even hires most of these employees.

Niche Business process outsourcing:

In niche BPO model there is a close coordination between the buyer and vendor. The vendor may ask for services from the employees of the customers. The BPO in this model is focused on enhancing the efficiency of the process and invests in the customer’s process. Unlike transactional BPO, it controls up to 3-4 aspects of the process.

Drivers of Outsourcing

The following are the important drivers of outsourcing as mentioned,

Cost cutting

The client firm can get effective services at reduced costs. Cost cutting is one of the most important reasons for the companies to outsource their service activities as a process of carrying in-house manufacturing of these services would be expensive than outsourcing their activities due to economies of scale

Better Operational Efficiency

Outsourcing can increase the operational efficiency of the client firm in different ways like, operations are carried out managed and tackled by those companies which have expertise and excellence in carrying out the processes effectively. This further increases the overall efficiency which results in properly taking care of cost and operations.

Skilled Manpower

The top level companies have shifted their services to the low-cost countries in search of abundant skilled manpower and resources.

Scarcity of Internal Resources

Quite a few times there exists scarcity of internal resources for performing certain operations. In such a case, the foreign company can outsource that specific activity or service to the service or outsource provider.

Accelerate Speed and Time to Market

Through outsourcing, the client company would be able to minimize its cycle time and develop time to market for any product. This further increases the overall efficiency and productivity.

Maximize Resource Utilization

When the client company begins outsourcing certain activities to outsource provider then the foreign company can make use its internal resources for some other activities. Thereby no wastage of time and expenditure towards unimportant activities can be avoided. Thus there will be an optimum utilization of resources and assets on its core activities.

Focus on innovation and core competencies

The company lays greater emphasis and stress upon the core competence with an aim to achieve and fulfill the core business objectives, as the non-core activities are already been outsourced.

Greater flexibility and competitiveness

If a company starts concentrating upon the most important and specific functions with high specialization then, it helps in increasing the company’s potential and can achieve its desired goals and needs in an effective manner.

Lack of functional experts and domain knowledge

Practically it is impossible for a company to have employees with excellent and domain knowledge in each and every activity. For example, the cosmetic company desires to operate and perform in an efficient manner with the use of improved technology but, its area of expertise is not IT. Under such circumstances, a cosmetic company can outsource its IT and business process service to an outside company who are expertise in that particular field.

Best Global Practices

Outsourcing helps in providing services worldwide. It is easier to learn and gain expertise in the best practices implemented by top most companies in the world.

Various Activities involved in the process of Outsourcing

Decision to Outsource

For taking a decision to outsource, the client firm should determine what needs to be outsourced and prepare a business plan which explains the reasons for outsourcing. This decision is taken at the strategic level and needs the board’s approval. Once the scope of services to be outsourced is determined and then the next step is to select an outsourcing provider.

Proposal to Supplier

After short listing the suppliers, a ‘Request For Proposal’ (RFP) is issued to these suppliers, which includes the request for proposal and price.

Rating the Suppliers

The competition is held among the suppliers wherein, the clients rate the suppliers’ proposal. This process may incorporate certain meetings for explaining the client requirements and the suppliers’ response. After this, only a few suppliers will be left. At last, the suppliers submit a ‘Best and Final Offer’ (BAFO) for the client to finalize the selective decision to one supplier.

Negotiation Process

The process of negotiation considers all the documents submitted by the suppliers that are the original Request for Proposal, the supplier’s proposal, Best and Final Offer submission and transfers them into the contractual agreement between the client and the supplier. The final documentation and the pricing structure are decided during this stage.

Finalization of Contract

The essence of an outsourcing deal is the contractual agreement which states clearly how the client and the supplier work together. The outsourcing is a legally binding document which relies mainly on the relationship between the client and the supplier. The outsourcing deal contains three important dates in which each party signs up that is the contract signature date, the effective date at which the contract terms and conditions become active and the service commencement date from when the supplier commences the services.

Transition Process

Transition process starts from the effective date and continues till four months of service commencement date. This process is especially meant for the staff transfer and the take-on of services.

Transformation

Transformation deals with the implementation of the set of projects to execute the service level management to minimize the total cost of the ownership or to perform new services. The main focus on transformation is towards standardization and centralization.

Ongoing services Delivery and Termination or Renewal

This is the final step of agreement in which the contract is executed. The client firm at the end of the contract term must decide whether to terminate or renew the contract. The process of termination may either deal with the taking back the services (in sourcing) or transfer the service to the other supplier (outside provider).

Key trends in BPO industry

Extreme cutting of unavoidable costs by vendors

Large companies hold the capability of obstructing the foreign exchange convertibility but they cannot stop the danger of lower competitiveness in the long run. Companies not only concentrates on optimizing cost heads but they also focus on optimizing administrative or marketing cost and earlier management used to emphasize only on growth, but at present quality of growth is also taken into consideration.

Greater emphasis on mid-market opportunity

Initially, the mid-market segments were poorly served due to various reasons like the absence of knowledge regarding off shoring, displeasing sizes of the deals for the premium vendors etc. the  increase in maturity of early buyers among the midmarket companies are motivating them to behave in a particular way and adopt costly services of large vendors. Whereas increased global competition motivates the large vendors to go beyond the fortune lists.

Advantages of outsourcing

• Cost savings
• Enhancing operations and service
• Emphasizing on core competencies
• Acquiring outside technology
• Improved services
• Possible to introduce new technology

Disadvantages

• Increased transportation costs
• Loss of control
• Creating future competition
• Negative influence on employees
• Longer-term impact
• Innovations and knowledge may disappear
• Firm may become dependent

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To become an entrepreneur one should identify their strengths and opportunities from the external environment. Here motivation plays a major role in identifying their own strengths to become strong leaders or powerful entrepreneurs which make them to accepting risks and face uncertainty for the purpose of reaching pre-described goals.

Motivation makes entrepreneur by fulfilling higher level needs such as recognition, esteem, and self-actualization. Various theories explained motivation as an influencing concept, it can bring out hidden talents and creativity, and it contributes to the individual goals and society development. Maslow’s need hierarchy theory, Hertzberg’s two-factor theory, and David MC Clelland’s acquired needs theory proved that motivation can bring energy, enthusiasm, creativity and efficiencies in fulfilling the desired objectives.

Motivation activates innate strengths to achieve a particular goal, many questions arise during knowing this concept such as why can’t all the human beings become leader or entrepreneurs even though they face same motivation during his/her lifetime? Who can become effective motivators? What type of motivation can influence one’s behavior? Is the extent of motivation decides the power of externalized behavior? Etc, entrepreneurial motivation is a psychological process in which all the motives may not influence with the same intensity, it varies with the perception levels of the individuals and factors responsible for the motivation. Sometimes a single motive can influence to become strong and powerful entrepreneurs, these motives may come from various factors as follows.

• Internal factors
• External factors

Internal factors

Need for self-actualization

It is explained by Maslow and it is the top level need refers to the desire for self-fulfillment. Need for freedom and self-fulfillment makes the individuals or employees of the organization make them become powerful leaders or entrepreneurs.

Optimism

Individuals having positive mindset get motivated by finding opportunities during critical situations also. Positive attitude and perception motivate an individual to work out for the best even during unfavorable and tough situations also.

Positive attitude

The positive attitude is the most important factor which motivates the individuals to become successful entrepreneurs. Habituating positive attitude can lead an individual to develop constructive thinking; it motivates them to become powerful entrepreneurs, finally, the positive attitude can prove that how valuable they are.

Self-motivation

Most of the successful and powerful entrepreneurs are self-motivated; here they fulfill the desired objectives by motivating themselves. Though many individuals have ideas but they cannot put those for business development; however self-motivated people can take decisions to implement ideas.

Enthusiasm

Enthusiasm motivates in finding better solutions, finally, it stabilizes the ideas and makes them become creators and innovators which result in successful entrepreneurs.

Commitment

Commitment towards a goal can make to achieve success. It motivates entrepreneurs by inspiring and developing emotional attachment towards an objective.

Education

Education is the most important factor it motivates a person to innovate and create new products, this result in establishing an organization or a new business venture. The knowledge acquired during the course of time and innate skills highly motivates a person to become a successful entrepreneur.

Background

Family background, occupational background and a person’s own experience in a job motivates him/her to become an entrepreneur. Having entrepreneurial background acts as a clear path to becoming a successful and powerful entrepreneur.

Financial background

Finance is the scarce resource which motivates and enables a person to become an entrepreneur. Money can make many things it is the major thing in deciding one’s status and development, strong financial background facilitates to start a business.

External factors

Influence

Influence of family members, friends, and society motivates the individuals to become entrepreneurs. The extent of influence shows an effect on the character, behavior, and development, it comes from the external environment. Here people get influenced by seeing successful entrepreneurs or by the words of others.

Availability of resources

Resource availability motivates at a high extent to become entrepreneurs, availability of land, labor, money, machinery, and materials make individual to start a new business. Though there is creativity, intelligence, commitment and enthusiasm in the individuals, but the unavailability of resources becomes an obstacle for new entrants or entrepreneurs.

Product’s demand

Higher demand for a particular product motivate entrepreneurs to produce innovative and value added products, here product’s demand motivates the individuals to become entrepreneurs. The hope of success makes them produce innovative products or substitute products, some entrepreneurs fulfill the market demand by producing complementary goods also. So the increase in products demand highly motivates to become entrepreneurs.

Government policies

Subsidies and benefits given by the government motivate entrepreneurs to produce new products or motivates individual to become entrepreneurs. Government policies show higher influence on establishing new firms and it leads to economic development. In the case of small scale industries, rural people are encouraged by the various training programs, financial support, and subsidies; it is one of the main reasons for the establishment of new firms and arrival of new entrants.

Information availability

Market knowledge and information motivate individuals to enter into the markets and to become entrepreneurs. If there is abundant information then it automatically creates interest in the minds of enthusiastic people to become entrepreneurs. Availability of information facilitates research and producing innovative and value added products, and it creates a scope to become entrepreneurs.

Technological advancement

Technological advancement acts as a path to transform ideas into products, feasibility in production and expected success rate highly motivates to become entrepreneurs. It reduces errors and cost of production and maximizes success rate, this is the reason why people are interested in becoming entrepreneurs with the increase in technology.

Changing tastes and preferences

Changing tastes and preferences of the customers maximizes the chance to produce substitute and complementary goods, it creates a scope to innovation and establishment of the new ventures.

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Plant Location Decisions and Factors Affecting Plant Location 

Plant location refers to the choice of the region where men, materials, money, machinery and equipment are brought together for setting up a business or factory. A plant is a place where the cost of the product is kept to low in order to maximize gains. Identifying an ideal location is very crucial, it should always maximize the net advantage, must minimize the unit cost of production and distribution. Plant location decisions are very important because once the plant is located at a particular site then the organization has to face the pros and cons of that initial decision.

While taking plant location decision organizations need to consider various factors such as availability of men, materials, money, machinery and equipment. At the same time plant, location decisions should also focus on expanding and developing facilities, the nearness of the market, transport facilities, availability of fuel and power, availability of water and disposal of water etc. There is no exact method of analysis or assurance for the selection of an optimal location. But an extent of analysis and study can help in maximizing the probability of finding the right locations.

If an organization is placed in a potentially satisfactory location then it can fulfill the objectives smoothly in the long run, on the other hand, opt for a poor location does not give the expected results due to the non-availability of raw materials, problems from local people, problems associated with availability and disposal of water, power supply problems, etc. However following a systematic method in order to evaluate the better location can give maximum results in generating profits.

Factors affecting the plant location

Decisions regarding selecting a location need a balance of several factors. These are divided into primary factors and secondary factors; here both the factors can influence the business in the long run.

Primary factors

Availability of raw materials

Availability of raw materials is the most important factor in plant location decisions. Usually, manufacturing units where there is the conversion of raw materials into finished goods is the main task then such organizations should be located in a place where the raw materials availability is maximum and cheap.

Nearness to the market

Nearness of market for the finished goods not only reduces the transportation costs, but it can render quick services to the customers. If the plant is located far away from the markets then the chances of spoiling and breakage become high during transport. If the industry is nearer to the market then it can grasp the market share by offering quick services.

Availability of labor 

Another most important factor which influences the plant location decisions is the availability of labor. The combination of the adequate number of labor with suitable skills and reasonable labor wages can highly benefit the firm. However, labor-intensive firms should select the plant location which is nearer to the source of manpower.

Transport facilities

In order to bring the raw materials to the firm or to carrying the finished goods to the market, transport facilities are very important. Depending on the size of the finished goods or raw materials a suitable transportation is necessary such as roads, water, rail, and air. Here the transportation costs highly increase the cost of production, such organizations can not complete with the rival firms. Here the point considered is transportation costs must be kept low.

Availability of fuel and power

Unavailability of fuel and power is the major drawback in selecting a location for firms. Fuel and power are necessary for all most all the manufacturing units, so locating firms nearer to the coal beds and power industries can highly reduce the wastage of efforts, money and time due to the unavailability of fuel and power.

Availability of water

Depending on the nature of the plant firms should give importance to the locations where water is available.

For example, power plants where use water to produce power should be located near the water bodies.

Secondary factors

Suitability of climate

Climate is really an influencing factor for industries such as agriculture, leather, and textile, etc. For such industries extreme humid or dry conditions are not suitable for plant location. Climate can affect the labor efficiency and productivity.

Government policies

While selecting a location for the plant, it is very important to know the local existed Government policies such as licensing policies, institutional finance, Government subsidies, Government benefits associated with establishing a unit in the urban areas or rural areas, etc.

Availability of finance

Finance is the most important factor for the smooth running of any business; it should not be far away from the plant location. However, in the case of decisions regarding plant location, it is the secondary important factor because financial needs can be fulfilled easily if the firm is running smoothly. But it should be located nearer to the areas to get the working capital and other financial needs easily.

Competition between states

In order to attract the investment and large scale industries various states offer subsidies, benefits, and sales tax exemptions to the new units. However, the incentives may not be big but it can help the firms during its startup stages.

Availability of facilities

Availability of basic facilities such as schools, hospitals, housing and recreation clubs, etc can motivate the workers to stick to the jobs. On the other hand, these facilities must be provided by the organization, but here most of the employees give preference to work in the locations where all these benefits/facilities are available outside also. So while selecting plant location, organizations must give preference to the location where it is suitable for providing other facilities also.

Disposal of waste

Disposal of waste is a major problem particularly for industries such as chemical, sugar, and leather, etc. So that the selected plant location should have provision for the disposal of waste.

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So organizations are approaching consultancies to find the skilled and efficient employees to get a competitive advantage. Approaching recruitment agencies can give better results, but it is expensive and may not suitable for all organizations.

Recruitment involves searching for the right candidates and motivating them to apply for the openings in the organization. Here sources of recruitment are two types i.e., internal sources and external sources.

Sources of recruitment

Internal sources of recruitment

Internal sources of recruitment involve motivating the employees of the organization to apply for the openings within the organization. Job openings are informed to the employees of the same organization by giving internal advertisements, word of mouth or communication through the hierarchy. Many organizations are practicing this approach to motivate the skilled employees of the organization, to reduce the employee turnover, to reduce the cost and to get a competitive advantage. Various methods of internal sources or recruitment are as follows.

1.Transfers

The employees of the organization are transferred to the similar jobs of other departments. It may not involve a change in salary, responsibility, and position of the job. Transfers help in reducing the boredom and monotony of the employees or it may be used to fill the vacancies with suitable internal candidates.

2.Promotions

Promotions involve vacancies of the organization are filled by promoting the skilled employees to the suitable jobs and it can motivate the employees by giving higher position, increased salary, status, and responsibility. Promotions can help in reducing employee turnover by creating the hope of getting higher positions.

3.Demotions

Depending on the performance of the employees of the organizations, sometimes managers have to take decisions regarding lowering the positions of few employees of the organization. These employees can act as a source of recruitment to the lower positions.

4.Employees of the organization

Employees of the organization communicate or inform about the vacant positions of the organization to their friends and relatives. In many organizations, they allowed referring potential candidates for the suitable vacancies.

5.Retired employees

If the organizations do not find the right persons to fulfill the key managerial positions then they call back the retired employees for achieving the objectives.

Advantages of internal sources recruitment

• When the existed employees are given a chance to get the higher positions of the organization then the employee loyalty increases towards the organization.
• It highly motivates the employees and helps in maximizing the job satisfaction.
• Existed employees of the organization are well known about the organization culture.
• Internal sources of recruitment highly reduce efforts and cost.
• It helps in reducing the employee turnover.
• It creates a scope to get a competitive advantage by recruiting the skilled employees for the higher positions.
• It helps in maximizing job security and job satisfaction
• Transfers from one department to another department helps in eliminating boredom and monotony in employees.
• It helps in reducing the efforts of induction programs.

Disadvantages of internal sources of recruitment

• Internal sources of recruitment reduce the scope of finding skilled and more efficient people.
• The introduction of new methods and strategies may not always possible with this approach.
• Losing more efficient persons from the external environment becomes a competitive advantage to the competitors.
• This approach is not suitable for all the organizations

External sources of recruitment

External sources of recruitment involve motivating the skilled and more efficient candidates external to the organization to apply for the vacant positions in the organization. Job openings are informed to the external environment by using various methods such as advertisements, campus recruitment, employment exchanges, walk in interviews, organizational websites, job fairs, and job portals.

1.Advertisements

To find the skilled and more efficient manpower giving advertisement for the vacant job position is the better way. Advertisements help in attracting the right candidates and in maximizing brand image. Advertisements may be given in print media or electronic media, it gives better results and it is cheaper than approaching third parties.

2.Job portals

With the growing technology and internet usage, job portals are playing a major role in finding right candidates for right jobs. Job portals can inform up to date job alerts to the candidates and offer attractive benefits and packages to the employers. The tools and techniques used by the job portals highly reduce the efforts in finding the skilled candidates.

3.Company’s websites

With the increase in business operations and globalization, the need for human resources is also increasing day by day. To face a severe competition and to reduce the cost during the long run, many companies are setting up their own websites for finding and attracting candidates with competitive skills.

4.Social networking sites

Communicating about vacant positions of the organization through social networking sites help in motivation and attracting the highly skilled and more efficient candidates to apply for the jobs.

5.Placement agencies

Approaching placement agencies reduces the time and efforts to find the right candidates from the pool of skilled candidates. They use various tools and techniques to filter the resumes and they send it to the companies for further processing. The main drawback of this method is commission basis on hiring the candidates.

6.Job fairs and walk in interviews

Walk in interviews and job fairs are declared and conducted by companies to find the skilled candidates. Following this method highly reduces efforts in finding more efficient human resources for the bulk requirement.

7.Campus interviews

This is an easy and economical method helps in finding eligible candidates, through this method organization can find energetic and more competitive candidates for suitable vacancies, this method is beneficial for both the candidates and companies.

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Brand strategy is a marketing support to a brand by creating customers and positioning the customers. Brand strategy is a step above the brand positioning; it can transform normal business operations into a powerful competitions advantage. It focuses on creating loyal customers to win the competitive edge and to capture the significant market share. Understanding target customer’s tastes, preferences, beliefs, and expectations can help in developing more powerful brand strategies.

A brand is a promise to the customers to deliver the best products and services. While developing brand strategies it is not enough to engage the customers with conversations, but it is to analyze the customer perceptions and diagnose their expectations in order to develop and maintain an authentic relationship.

Small business and startups can also use this strategy which helps in establishing products and building brands to become successful participants in the marketplace while developing branding strategies companies must take crucial decisions, because companies may have to stay with these decisions for a longer time.

Brand Vision

Brand visions is a long-term plan, which is viewed in different short term destinations such as what a brand can do for the firm over the next five years through communicating, attracting creating value, positioning the customers and finally profit contributions in order to fix another long term plan. This strategy provides a vision to the management which forces them to develop a framework by raising various questions such as

• What are the key benefits associated with the product?
• How extent the qualities of the product or services contribute to the brand image?
• Do the product supports the efforts put by the branding strategy?
• Who are the target customers and what is your product’s current brand image?
• What can a brand do to maximize the product image in the minds of target customers?
• How the developing brand strategy helpful to the future product lines and product mix?

Raising such questions by the marketers can act as paths for finding the right solutions among various alternations strategies.

Be creative but stay relevant

The brand is a promise to maintain consistency and to provide better services. Brand strategy always stresses that the delivered message should be creative every time and it should be relevant to the past delivered messages. The flexibility in delivering the creative messages should not disturb the customer’s positive perceptions towards the brands.

For example, life buoy brand delivers brand message i.e. “hygiene and health” in order to make a difference from its competitors. The approach may be different every time but the message is creative, same and relevant.

Connect on the emotional level

The brand strategy aims at customer positioning and expects customer loyalty. Repeated purchase behavior of customers is not only possible by offering products which can satisfy their physical needs, but the thing is to grasp the customer attention and loyalty. Knowing the customer emotional needs can give better results in effective branding. For example, Johnson’s baby products are successful in creating brand positioning by knowing the customer’s emotional needs. In Johnson&Johnson commercials we can see such messages i.e.

• “No more tears formula”
• “Support your growing brand”
• “You can give her so much warm”
• “Johnson’s so much more”
• “Johnson’s brand-creating moments that promote baby’s health and development”

Brand positioning

A brand positioning strategy is used to increase the customer’s positive attitude towards the brand and to maximize the perceived value in the minds of the customers about a brand. Brand positioning is implementing an idea through communicating the unique, sustainable, credible value created by the brand and motivating the customers to become more loyal.

Find appropriate media usually marketers use different brand strategies to promote products and to select appropriate media. Finding the right platform is a unique strategy which can maximize sales; in order to do it, marketers should find the possibilities to convey the brand message on the appropriate platform with specific objectives. Communicating brand message through wrong channels may lead to wastage of time, efforts, and money.

Hence, marketers should select right media for the products such as using television and print media can give desired results with instant impact on wider demographics, here the thing is cost. On the other hand, choosing some media may seem cheap and effective in the long run, but may not give desired results instantly and these are suitable for small and medium scale organizations.

Broadcasting media is suitable for well-existed brands and for promoting product line and product mix. These are more suitable for large-scale organizations and those companies which want to cover the larger demographics.

Measure the strength of brand

Return on investment is the key to measuring the effectiveness and strength of the brand strategies. It is necessary to measure the strength of the brand strategies in order to know how well an organization is executing the strategies. ROI clearly reflects how the customers react to the price changes, offers, and changes in the product features, etc.

By knowing the brand strength it is easy to know the customer’s perceptions and expectations of the brand. Acquired customers, customer’s loyalty, and financial value of brand are also used to measure the strength of the brand.

Avoid short term trap

Brand strategy stresses the long-term goals and objectives, these only can build strong brands. Brands are not built overnight, focusing on short-term tactics may give instant results but cannot lead the organization towards the objectives of the firm. Short term trap such as false promises in the advertisements, maintaining short-term consistency and other short-term tactics to maximize sales can act as brand killers. Such brand strategies cannot help in gaining the customer loyalty in the future also.

Brand contracts

A brand contract is a list of various promises made by the brand which is executed internally, though it is executed internally, but these results can be seen in the marketplace, it is defined and validated externally. In order to maximize the brand image and loyalty, brand contracts must be changed by adding new promises or by deleting the irrelevant promises.

The brand contract can act as a motivator; it forces the employees/managers to become more honest and trustworthy. It guides the employees towards the predetermined and prescribed paths.

Keep your competitors closer

It is very important to know the competitor’s strengths, weaknesses, and their opportunities while developing brand strategies. Even if the product is innovative, technologically advanced and low priced then also a firm can expect competitors with a more superior value proposition.

Competition for an extent could be good for a firm so that it can learn, develop and implement strategies to face the counter-strategies of the competitors. Strategic approaches such as innovative pricing strategies, better cheaper and faster customer services, communicating with better messages, etc can maximize the efficiency, and in turn, it can make it possible to get higher brand loyalty.

Communicate key benefits to the customers

Focus on communicating benefits provided by the brand and its unique features can help in differentiating the products from the other similar products and competitors.

The single idea of which you are doing business should be communicated to the customers in order to make them aware of what a brand can do. A good brand positioning is possible through spreading the brand messages and by communicating the key benefits provided by the brand.

For example

• Disney – Family fun entertainment
• FedEx – Guarantee overnight delivery
• Apple – Innovation
• Toyota – Reliability
• Mc Donald’s – Food and fun

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An effective workplace design can maximize the employee productivity. Office space and facilities can bring a huge difference in the success of the business. A better workplace design is a cost associated process, but the benefits drawn by the minimal changes to the workplace can increase the employee motivational levels and productivity. Many studies have proven that employees in well designed physical spaces are 20 percent more productive. The physical environment can show a major impact on employee perceptions and attitude towards the organization.

Usually, workers or employees give primary preference to the jobs where they can find better workplace to work. So it is very important to create a comfortable and aesthetically pleasing environment, it adds uniqueness to the business which can highly reduce the work pressure, in turn, it can bring out hidden talents of the employees in becoming more productive and gives much better chances to maximize profits.

Many studies on employee behavior state that the workplace design and workplace facilities can show high influence in the employee motivational levels. Henry A. Landsberger proposed Hawthorne effect, according to this theory employees can perform better under better physical working conditions, and he practically proved it by changing the lighting in the workplace.

It is easy to motivate and keep employees happier by providing minimal changes to the workplace such as improving lighting, providing safe drinking water, relaxing spaces, comfortable sitting facilities, and adjustable desks, etc.

Lighting

Though there is well-organized space, attractive color schemes, interior decoration and unique furniture, but without proper lighting, workers cannot use all other facilities. So it is very important to provide sufficient lighting by using natural as well as artificial lights, it can make the employees more productive.

Relaxing spaces

Better relaxing spaces can be designed by using more comfortable furniture and stress relief colors to the walls such as light greens and blues etc. Many reports have proven that intelligent workplace strategies can help in the better utilization of break time; it enhances the productivity and employee performance. So the modern organizations are designing workplace according to the employee opinions and feedback.

Windows

While designing the workplace, it is very important to focus on placing windows wherever possible. It allows fresh air and lighting which helps in the well-being of the workers, many studies on workplace design have proven that providing windows have both the direct and indirect effects which are not only meant for fresh air, sunlight penetration, illumination, and view. A better view of natural elements such as plants, mountains, water bodies, vegetation, mountains etc can highly reduce the job stress and gives peace of mind to the people in the workplace.

Use light colors

While coloring the workplace it is necessary to use light reflecting colors because these colors can make rooms appear bigger, brighter and more open. Colors such as white, cool blues and greens, creamy yellow, light gray etc can bounce the light and helps in creating a more peaceful environment and greatly reduces the job stress and dissatisfaction to an extent.

Fill the workspace with plants

Plants in the workplace are not only for decoration, it helps in improving air quality due to the consumption of Carbon dioxide; increase in oxygen levels can remove trace amounts of toxic chemicals and pollutants from the air. Pollution free work environment and fresh air can reduce the occupational diseases, stress, and lung disorders, etc.

Artwork and posters

Artwork and posters can make the workplace more unique and interesting. Generic corporate posters and pictures related to nature can boost the employee’s perceptional levels and it gives an impersonal look which can motivate all the employees in the organization by eliminating all discriminations. Using large-scale pieces of posters are better than using small and multiple ones; it can make the workplace more attractive. Also, you can use these soundwave art that gives off a natural yet soothing ambience to the entire area.

Sound insulation

It is the ability of the building structures in order to reduce the sound transmissions and echo. It is not enough to design and decorate the office/workplace beautifully, but it is very important to maintain a peaceful environment by reducing sound pollution and sound transmissions. Using innovative noise control materials such as noise and sound isolation foams, sound proofing foams, sound proofing plastic curtains, noise absorbers and acoustic sound panels, etc can reduce the unnecessary transmission of sound.

Comfortable furniture

It is always recommended to notice the importance employee comfort while purchasing the office furniture. The cost incurred in buying comfortable furniture is less than that of losses occur due to the employee dissatisfaction due to the uncomfortable chairs and office desks. Using soft cushioned chairs for the relaxation of the body especially back neck and arms, specially designed desks with multiple and different-sized drawers, and translucent mat surfaced glass desk, etc can facilitate the employees to become more productive and innovative.

Best flooring

A commercial work/office space requires suitable and best flooring. It not only gives good look but it can reflect what goes on inside the workplace and organizations standards. Best and suitable flooring options such as vinyl flooring for style and affordability, rubber flooring for ease of maintenance, carpets, and carpet tiles for warm up the workplace, hardwood flooring for the classic look, laminate flooring for durability, and glass tiles for water resistance, etc. According to the environmental conditions, work operations and flow of traffic levels into the office, flooring should be selected.

Make better use of small spaces

Even if the office or workplace is well designed and decorated then also the remaining small and narrow spaces may not appear good. Utilizing those spaces with well designed, colorful vertical storages or tall shelves can help in storing clutter, old files and less frequently used things.

Highlight attractive outside views

Without spending it is possible to enjoy the nature and attractive views outside the office. By using unique window designs and rooms with transparent glass windows can highlight the external attractive views of nature.

Hide unattractive cords

Many offices are using innovating methods to hide the unattractive cords, because these may reduce all the efforts invested in the office design and decoration. However, some devices that need to be plugged in, so using wall fixing boxes at the back of the device to keep these cords out of sight.

Exhaust Fans

Pungent odors in the workplace may not let the workers be productive because these may cause lung diseases, asthma, and allergies. Exhaust fans in the workplace can exhaust the harmful and hazardous chemicals. So while designing workplace designers should focus on slots for large exhaust fans in wall or roof of the building.

Natural Air fresheners

A pleasant smell can keep employee’s mind peaceful and helps in reducing workplace stress. Air freshness can neutralize the pungent odors and can create a more pleasant environment. Using natural air fresheners can minimize the health hazards, chemical exposure, and pollution.

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As the world moves rapidly towards services economy, so the marketers need to know about services marketing and more professional approaches to promote services. Services are essentially intangible which may be act, performance, benefits or activities that one party can offer to another and it does not result in the exchange of goods or ownership of anything.

Examples of service Industries

• Financial services include banking, insurance and investment advising
• Health care services include hospitals and other medical practices
• Hospitality services include hotels, restaurants, and resorts
• Professional services include legal, accounting and architectural
• Travel services include travel agencies, airlines
• Other services include beauty parlors, spa, hair styling, plumbing, pest control, gardening, lawn maintenance, counseling services, teaching, house maintenance, security, telecommunications etc.
• Public sector services include post offices, police and electricity authorities, police, etc.
• The nonprofit service sector includes old age homes, charities, family welfare, and orphanages, etc.

Here service marketing involves the promotion of economic activities which are offered by an organization or a business to the clients.

Characteristics of services

Intangibility

Services cannot be tasted, touched or examined before buying; here buyers have to believe the service providers or marketers. Services do not have physical existence hence, consumers have to experience services but they never result in any ownership.

Promoting services is more complicated than promoting products due to the absence of physical evidence or tangibility. In order to create strong service image marketers can create awareness through word of mouth. Trained service promoters can help the customers in evaluating services before purchases.

Nowadays marketers are using tangible tools such as providing physical facilities, gift, and benefits in order to promote the intangible services.

For example

• Offering fruit juice at beauty parlors and spas.
• Kids play areas at hospitals

Inseparability

Here inseparability stresses the inseparability of production and consumption. The result of the consumption may be the customer satisfaction or dissatisfaction. In the case of goods its tangibility facilitates production and offering are possible without the presence of customers, they can buy and consume later. But services are inseparable in nature so that the production and consumption are done simultaneously. The consumers should be present and should play an active role while services are delivering. For example medical treatment, teaching and training etc. Customer’s presence is not compulsory for other services such as lawn maintenance and house maintenance, etc.

Hence the marketers are using advanced communication tools to maintain a better interaction between service providers and customers. Nowadays almost all the taxi or cabs services are providing better communication; prompt customer service, location tracking and sharing details, etc. Such strategies can maximize the customer’s confidence before experiencing the services and helps in achieving high standards.

Inseparability nature of services demands on the spot results, it can be achieved by selecting qualified service providers, providing better training and rewards to them can maximize the employee motivation and efficiency in delivering better services.

Heterogeneity

The output delivered by all the services may not be equally qualitative, whether the service provider is same or not. It shows a high degree of heterogeneity due to the factors such as time, experience, place or ambiance, variations in the skills of the service providers, etc. It causes difficulty in achieving standardization and quality control in services. Variability in the output of services can create negative perceptions and confusions in the minds of the customers, this is the main reason customers take more time and the opinions of others while selecting a service provider.

Hence the marketers should give assurance of quality services to the customer while promoting services; it can help the customers in better interpretation and decision making.

Customer feedback can help in knowing the gap between achieved standards and expected standards. Hence providing better training and adopting uniformity in delivering services lead to greater consistency which promotes service quality. Sophisticated technology and reliable equipment are also necessary in order to compete with the competitors in the service industry successfully.

Perishability

Another most important character of services is perishability, due to this nature customers have to consume services when they are produced; it is not possible to save for the future purpose. Here supply and demand go hand in hand. In the case of products, it is possible to produce products by expecting future demand, but it is not possible in the case of services.

For example non-occupied hotel rooms after booking.

Here the problem arises due to the mismatch of demand and supply hence marketers or service providers can use few strategies in order to find a better solution.

If the demand is more, then in such cases service providers divides the complete job into smaller tasks. If these tasks are assigned to experts then it facilitates achieving quality as well as demand. Following different pricing strategies for different slots can balance the mismatch of supply and demand problems.

Expecting demand and utilizing part-time employees can maximize the efficiency in delivering better services to the customers.

If the supply exceeds demand then the service providers may have to face loss, in order to overcome such imbalances many hotels, beauty parlors, amusement parks and resorts charge lower prices during off season.

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One of the most challenging tasks of the small business is marketing their products and services. Though the products are innovative, differentiated, low priced and beneficial then also it is very tough to market these products because of the lack of brand image, lack of customer awareness, and lack of financial resources to promote the products and services. Among all these factors, lack of finance is playing a major role in the marketing of products and services. Modern marketers are using many innovative ideas to promote their business without investing lots of money. Here are some simple marketing tips any business person can use such simple techniques which can definitely promote the startup or small business.

Market Survey

If the marketers want to know the current trend, changing market situations, tastes, preferences, and demands of the customers. Then they should listen to the customers and they should analyze the customer’s opinions and feedback. It is only possible through a simple market survey. What is a simple market survey? Simple means not a survey within the limited demographic group. It is an effective survey by using cheaper and faster methods. Using the internet is the best method for identifying potential customers in order to conduct surveys quicker and faster.

Focus Groups

A focus group is a demographically diverse group of customers where reactions, perceptions, beliefs, opinions and attitudes towards a particular product’s concept and packaging, etc are studied by conducting an interview in order to take strategic decisions to create a positive attitude towards products and to promote the products. Applying this technique is more suitable for startups or small businesses. Very little expenses or negligible expenses are common in conducting such interviews with the potential group of customers.

Send a Weekly E-Mail

If startup or small business people want to stay in a good relationship with the potential customers then it is recommended to send less frequent e-mails, it can grasp the reader’s attention and can create an interest in receiving emails. If the messages are more frequent and repetitive then the customers may ignore or develop a negative attitude towards the products. This is a well known and simple technique but the thing to remember is less frequent, more creative, and attractive; more importantly, the information should carry a beneficial information such as information regarding new arrivals, offers, and benefits, etc.

Share your knowledge

Choosing a topic related to the benefits of the products or related hot topics of the industry and spreading it through various channels of communication can grasp the customer attention. Knowledge sharing can be done through YouTube tutorials, webinars, personal messages, blogs or by speaking at local conferences, etc helps in creating a better brand positioning in the minds of the customers. It maximizes the trustworthiness, loyalty, and familiarity in the target customer groups.

Get a Google My Business account

By getting a Google my business account marketers can set company’s contact information, working hours, directions on Google search and maps. Make sure that the business information is accurate, because when customers search for a particular need then your product should appear front and center. It is one of the best methods to guide the customers to find you easily. More importantly, anyone can use these services for free.

Be unique

Marketing strategies should be unique in order to highlight the benefits of the products. A long list of benefits and product features which are similar to the Competitors may cause information overload in the minds of the customers and it leads to misinterpretations and confusions. In such a condition customers may not focus on the key benefits provided by the product. So describe simple, catchy and unique for better marketing works.

Use Guerrilla Marketing Strategy

Guerrilla marketing strategy is one of the best innovative and cheaper marketing tools. It can be seen anywhere and on anything; it can bring out the skills and innovativeness of the marketers by motivating them with its excellent results. These strategies include leaving sticky notes at coffee shops and restaurants, using sidewalk places for product promotion, wild posting, creative approaches and unconventional techniques of advertisements at shopping malls, parks, and crowded places, etc.

Get rid of customer confusions

While purchasing products customers should not get confused due to the over information of various similar products, because of this they may postpone or avoid purchases. So that guiding and helping customers to pick the right products for their particular need can reduce their fatigue in choosing and purchasing products.

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Maintenance refers to upkeep and protection of plant, building, machinery and various other fixed assets. It is one of the functions of production and operations management which is concerned with keeping the physical plant perfect or in a best operating condition. Maintenance management refers to the overseeing maintenance resources in order to reduce the wastage of money on insufficient maintenance methods, so that the firms do not experience downtime from broken machinery or equipment.

Modern maintenance management concentrates not only to repair the broken equipment but to keep the machinery and equipment works at high capacity and at lowest possible cost in order to produce quality products. Industrialization and internationalization brought many changes in the production procedures and production equipment. Due to the impact of technological development productive quality and productivity has transferred from man to machine. Hence the organizations are giving more importance to the maintenance management tools and techniques.

Types of Maintenance

Breakdown maintenance

Breakdown maintenance is also called as unplanned maintenance or operate to failure maintenance or fire fighting maintenance. It is performed to make the equipment back to its acceptable condition. This type of maintenance is done after the equipment fails to perform. In this type, no preventive maintenance measures are taken to stop the equipment break down because breakdown maintenance cost is lower than preventive or periodic maintenance. It is a cost-effective strategy for equipment with non-repairable parts.

Preventive maintenance

The main purpose of preventive maintenance is to prevent the equipment failure through equipment maintenance work carried at regular intervals or predetermined intervals. Preventive maintenance is used to avoid break down costs and for the smooth running of the equipment, by using this method energy can be saved and equipment’s service life can be prolonged. It is further divided into periodic maintenance and predictive maintenance.

Periodic maintenance involves inspecting, servicing and replacing parts to prevent equipment failures.

Predictive maintenance involves service life of equipment’s parts are predicted based on inspecting, measuring and analyzing data.

Maintenance costs

Direct maintenance costs

Direct maintenance costs are the costs incurred in performing maintenance work such as material costs, spare parts costs, modification costs, administration costs and labor costs.

Indirect costs

Loss of revenue occurs due to the equipment failure and production interruption.

Maintenance functions

• Maintenance of the equipment
• Inspection and service
• Maintenance and store keeping
• Craft administration
• Equipment installations

Maintenance objectives

• Cost reduction
• To keep the quality very high
• To keep the downtime (for critical equipment) as low as possible
• For smooth running of the equipment and for energy savings
• To minimize the workplace accidents and hazards
• To maximize the production
• To minimize the repair time
• To maximize the working condition of the productive assets

Control of maintenance

Maintenance is controlled and managed by an authorized official who is engaged in various functions such as preparation of maintenance budgets, maintaining equipment and spare parts records, issuing materials to a proper authorization and maintaining various maintenance schedules for various equipment, etc.

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Management style in organizations is highly influenced by the manager’s beliefs and assumptions about human behavior at the workplace and focus on what motivates the members of the team. Theory X and Theory Y are the two theories of motivation suitable for the workplace; the essence of these theories states that how two different managerial styles motivate the workers on the basis of two opposing assumptions.

Douglas McGregor developed this Theory X and Theory Y, which are the theories of motivation and management. McGregor’s Theory X and Theory Y are based on Maslow’s Hierarchy of needs. Theory X is based on lower order needs and Theory Y is based on the higher order needs, here management could follow either set of needs in order to motivate the workers/employees, but Theory Y gives better results rather than following Theory X, because Theory X involves strict supervision, penalties and external rewards in order to motivate the employees. These two views theorized how managers assume human behavior at the workplace and it leads to the difference in leadership styles followed by the managers.

Theory X

Theory X assumes that employees dislike working, naturally, they are unmotivated, ambitionless, non-initiative and dislike responsibilities.

Usually, Theory X managers believe that their workers/ employees are less intelligent, lazier then the managers and individual goal oriented and work only for the sustainable income. In order to make them more productive managers assumes that they have to force the employees by following hard and soft approaches.

Hard approach

The hard approach relies on coercion, close supervision, command, control, implicit threats and imminent punishment which results in purposely low output, hostility and minimal cooperation.

Soft approach

The soft approach seeks harmony in the workplace to make employees more productive with the hope that they will cooperate when they are asked.

Assumptions of Theory X

Assumptions of Theory X are based on manager’s perception of the nature of employees or workers in the workplace the assumptions of Theory X are as follows

• Employees does not like work and always try to escape from work whenever possible
• Theory X employees show high resist towards change and these people generally dislike responsibilities.
• A close supervision is necessary for them in order to make them productive
• High degree of control and continuous supervision is necessary at energy step of the work
• People must be threatened and directed in an authoritarian style

Generally, there are many controversial opinions regarding Theory X assumptions. Theory X is more suitable for occupations with manual labor or workers in the jobs associated with assembling of parts and the jobs where the workers want to fulfill their lower order needs of the hierarchy. Utilizing Theory X at suitable workplaces can maximize mass production with more quality According to McGregor once the lower order needs are fulfilled then thus no longer are motivators for Theory X people. In such situations, employees show dislike towards work and become individual goal oriented and neglect organizational goals. From this reason of Theory X self-fulfilling prophecy nature, McGregor proposed another theory which is alternative to the Theory X i.e. Theory Y.

Theory Y

Theory Y managers believe that their employees/workers are self-directed, highly motivated, committed, highly skilled and capable of exercise their efforts in an inherent manner in order to achieve the individual and organizational objectives. Theory Y managers assume that control and supervision are not necessary for these people to meet their own objectives and organizational objectives.

Assumptions of Theory Y

• Theory Y employees perceive that their jobs are quite normal and relaxing
• Skills and capabilities can make them more productive
• They utilize their potentiality in reaching the individual and organizational goals
• Employees never completely satisfy in fulfilling self-esteem and self-actualization needs

Implications of Theory Y

Delegation and decentralization

If the organizations decentralize control and reduce the various levels of management so that each manager has to control many subordinates by delegating decision making and responsibility to them. It is possible in Theory Y because these employees seek responsibility, self-directed and need no control.

Job enlargement

Increase in job tasks and responsibilities and broadening the scope of employee’s opportunities in fulfilling their ego needs.

Consulting employees/participative management

Employee’s involvement in decision making can prove the capabilities of the employees and helps in fulfilling their higher level needs.

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