August 26, 2017

Organization Design - New Ideas


In "The New New Way of Working Series," published the article, "Boosting Performance Through Organization Design" dated JULY 17, 2017 authored by By Fabrice Roghé , Andrew Toma , Stefan Scholz , Alexander Schudey , and JinK Koike.

The authors reported that analysis of the same survey results suggests that six specific factors in organization design can make a company more likely to become a top performer, with faster growth and higher profits than its peers. The six factors are:

Agile ways of working
A value-adding corporate center
Clearly delineated profit and loss (P&L) responsibilities
A flat management structure with a strong frontline focus
Effective use of shared services
Strong support for people and collaboration

For more information on agile read the article

Related articcle

August 25, 2017

Cost Center Reports and Analysis

Cost Center Reports and Analysis

Any activity can be analysed by its costs and the ’output’ it generates. A business might want to know the cost of running a production line compared to other production lines or ways of producing things. Similarly, a firm might want to look at the total cost of running training courses (salary, rents, training materials, utilities and so on) compared to the number of people actually trained.

Cost centre analysis tries to attribute all costs involved in a particular activity to one ’location’ or ’cost centre’. To calculate costs involved in a particular activity it is necessary to calculate the cost of:

All materials used directly  and materials used indirectly (for instance packaging).

All labour costs directly involved and the proportionate cost of any supporting labour (for instance
administrative staff).

Sales And Marketing Costs
Regular, on-going costs of advertising and promotion of that activity’s product or service.

Proportionate costs of regular expenses associated with that activity such as rent, rates, power, interest repayments, other charges.

Additional Costs
Other costs solely attributable to the activity (for instance higher insurance costs for a new machine).

ABC Novelties company  management want to know the real cost of manufacturing toys. Materials used cost $2,000 per year. Production involves 5 trainees paid $500 expenses each per year. The single machine
used is used for toy production 20% of the time and full depreciation is valued at $1,000 per year. Electricity costs $600 a year and toy production takes up half of a workshop costing $2,000 in rent, rates and repairs
per year. The paid administration worker calculates that he spends 30% of his time on book-keeping, sales and marketing toys. He is paid $8,000 per year. The total income of the project is $25,000 per year
and sales of toys contribute $5,000 to this. 

Its total costs are $24,500 per year.

Cost Centre Analysis
Materials            =    $2000
Labour (5 x $500) =   2500
Depreciation ($1,000 x 20%)   =  200
Electricity ($600 x 20%)   =  120
Rent ($2,000 / 2) =           1000
Administration ($8,000 x 30%) = 2400
Total                 =   8220
From these figures we can calculate the following:
Toy making is responsible for 34% of all costs ($8,220 / $24,500 x 100)

August 21, 2017

Supply Chain Management - Subject Update

Supply Chain Management - Revision Notes of All Chapters Based on Chopra and Meindl's Book

August 2017

10 ways big data is revolutionising supply chain management

March 2016

Procurement Trends in India - ISM - India - 2016 Survey

Smart Supply Chains - IBM Paper

Adoption ABC Costing

Supply Chain Cost Cutting  - 2007

M2M Model and Supply Chains

About Access Sup Chain Software

May 2015

Supply Chain Engineering - Activity Based Cost Management

April 2015

Supply Chain Management - Coordination - Updated

March 2015

Selection of Supplier in a Two Stage Supply Chain - An Integer Linear Programming Approach
A. John Rajan, K. Ganesh, and K.N. Balan

Uploaded by A. John Rajan

Cost-effective supply chains: Optimizing product development through integrated design and sourcing

PWC Sup Chain survey results

Efficient Transportation Logistics Can Reduce Other Supply Chain Costs

January 2015

Top 25 Supply Chains of 2014

25 Nestle

Innovative Methods in Logistics and Supply Chain Management

August 2014 book - Collected articles. Appx 500 pages
You can download the full book from

IRMS|360 Enterprise Supply Chain Management Software

irms|360 Enterprise is designed to optimize efficiency at every level of the distribution supply chain. End-to-end visibility of products, people and process helps your organization achieve an unprecedented level of accountability. Higher visibility leads to absolute efficiency, improving customer satisfaction and increasing profits.

With off-the-shelf integration to industry leading manufacturing (MRP), enterprise (ERP), customer relationship management (CRM) solutions, irms|360 Enterprise is a cloud-based solution that can be delivered over the web as Software-as-a-Service (SaaS) or can be delivered as an on-premise solution.

Best and All Time Best Supply Chain Management Books

- Clockspeed: Winning Industry Control in the Age of Temporary Advantage by Charles H. Fine

- Designing and Managing the Supply Chain by David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi

- Essentials of Supply Chain Management by Michael H. Hugos

- Logistics and Supply Chain Management by Martin Christopher

- Logistics Management and Strategy: Competing through the Supply Chain   by Alan Harrison and Remko Van Hoek

- Purchasing and Supply Chain Management by Robert Monczka, Robert Handfield, Larry Giunipero and James Patterson

- Purchasing and Supply Chain Management: Analysis, Strategy, Planning and Practice by Arjan J. Van Weele

- Strategic Supply Chain Management: The Five Core Disciplines for Top Performance by Shoshanah Cohen and Joseph Roussel

- Supply Chain Logistics Management by Donald Bowersox, David Closs and M. Bixby Cooper

- Supply Chain Management, Strategy, Planning and Operation by Sunil Chopra and Peter Meindl

- The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage  by Yossi Sheffi

Supply Chain Management  Subject Update - 2014

Updated on   22 August 2017,  8 March 2016, 8 Dec 2015

Design Thinking - Introduction

Design Thinking: Understand Phase

Design Thinking: Explore Phase

In his 1969 seminal text on design methods, “The Sciences of the Artificial,” Nobel Laureate Herbert Simon outlined one of the first formal models of the Design Thinking process. Simon's model consists of seven major stages, each with component stages and activities, and was largely influential in shaping some of the most widely used Design Thinking process models today.

A five-stage model was proposed by the Hasso-Plattner Institute of Design at Stanford ( is the leading university when it comes to teaching Design Thinking. The five stages of Design Thinking in this model are as follows:

Empathise, Define (the problem), Ideate, Prototype, and Test.

A process guide describes the stages in more detail. Download: An Introduction to Design Thinking - Process Guide

Five stage explanation - Another article

IBM Design Thinking

Marketing Management Subject Update

Marketing Management Revision Article Series


5 Ways Words Can Destroy Your Marketing Messages (And How to Fix Them)
Use these copywriting tips to improve your marketing messages and ensure you don't lose sales or money on your marketing investments.

There is No Luck. Only Good Marketing.


TEDx Talks

Article in HBR on Organization of Marketing Department

Developing a marketing plan  (interesting information is in the article)

Key competencies for general sales effectiveness
By Amir Qureshi
12 December 2016

Dec 2016

March 2016

Marketing Managers' Salary Guide for USA - 2016



May 2015

Negotiation: What Makes the Right Business Deal

I searched for this topic today in my interest to write an article on the topic marketing support for Make in India Campaign. I found that there a huge literature in the area of macromarketing. The reference I came across today are:

Marketing Theory: Philosophy of Science Perspectives

April 2015

Marketing communication messages have to be different when you announce a product and build buying intention for it. The communication has to change when the product is actually made available in the market for purchase.  Read the summary of a recent research paper on adoption of products.

February 2015
Planned Revision schedule for marketing chapters is in February and March

January 2015

Why Your Customers’ Social Identities Matter.

By: Champniss, Guy; Wilson, Hugh N.; Macdonald, Emma K. Harvard Business Review. Jan/Feb2015, Vol. 93 Issue 1/2, p88-96.

People are highly social animals. Most of us belong to many social groups, each with its own identity.

For five years the authors have been studying how social identity affects customer behavior in a wide range of industries. They have seen that companies can trigger more-favorable reactions in customers by subtly influencing which identities they tap into. This is something firms should take into account when doing market research or designing experiences.

The first step is to surface the range of  a customer's  possible identities. If a customer's identity encourages targeted behaviors, marketers can help reinforce it.  Marketers can also work to add a desired behavior to those that customers associate with an identity, prime different identities in customers, and even create new identities that deepen relationships with existing customers and attract new ones.

2014's top The Gunn Reports' Cases For Creativity

1. 1. IBM's 'A Boy And His Atom' Ogilvy & Mat her, USA

IBM upload

2. Evian Baby & Me

99,261,360 views 29 Jan 2015

"Contagious: Why Things Catch on" by Jonah Berger was named the best book of Marketing of 2014
Talk by Jonah Berger

Talks at Google upload  (For previewing the book)

Marketing News - 15 January Issue

Why Uniqlo Is Winning
By: David Aaker
Uniqlo is Japanese clothing retailer now in top 5 and plans to beat Zara.

Updated 22 August 2017,  6 June 2017,  26 February 2017,  6 Dec 2016, 28 Mar 2016, 11 Dec 2015

Give your suggestions for adding any articles to the collection.

Developments in Retailing - New Retail - Omni-Channel

"New retail" is  a phenomenon recently coined by Chinese e-commerce group Alibaba, entails retailers integrating their online and offline businesses, and leveraging the Internet and customer data to sell better.

24 July 2017

August 17, 2017

Service to Customer: Follow Up After The Sale

Selling Skill - Service to Customer and Follow Up After The Sale

A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.

Service to Customer

A satisfied customer is the best advertisement to you as a salesman and to your product. But if you make a sale and runaway, you do not know the feelings of your customer. The prospect became your customer after buying from you. High performing salespersons do the follow up and provide any service the customer requires and convert this interaction into further sales to the customer or to his friends and acquaintances through referrals.

Service will keep customers and increase sales. Use your company’s goods return policies judiciously to replace defective products with customers. Go back to the customer, check the product that you have sold and make sure that the customer is getting the expected services from it.

Become a customer benefit oriented salesman, your profits swell through your efforts to make the benefits of customers swell. Develop your reputation from providing benefit to customers. Provide service above and beyond the call of duty. Always schedule some time in your daily sales plan for delighting customers. Delight comes to a customer when you deliver something beyond expectations.

Part of Selling Process - 10 Steps

Updated 18 August 2017, 25 November 2011

A to Z: 2017 - Management Challenge Areas

A to Z: 2017 Blogging Challenge 

Theme: Top Management Challenge Areas

The articles/blog posts will be visible one every day during April 2007 starting from 1st April.

All the issues are relevant in the current times. So, the services offered by top consultancy organizations in these areas are specially highlighted.

1. Awareness of Environment

2. Brand Equity - The NPV of Marketing Investment
    Brain Stilling - Brain Storming for Effective Decisions

3. Culture Change Management

4. Deal Making and Negotiation

5. Energizing the Organization

6. Fortification of the Brand

7. Goal Alignment and Employee Involvement

8. Health of Organization

9. Innovation for Growth - Revenues, Profits, Potential Market, Knowledge Capital

10. Job Redesign for Effectiveness, Efficiency and Employee Satisfaction

11. Knowledge Management

12. Liquidity, Solvency and Profitability - The Finance Challenge

13. Manufacturing/Production Management - Production of Goods and Services

14. No Waste Philosophy - Industrial Engineering and Work Simplification

15. Organizing Resources and Acquiring Them - The Supply Chain

16. Productivity Management

17. Quality Management

18. Redesign - Design Iterations

19. Supply Chain Analytics

20. Technology Management and Innovation

21. Utility - Value to Customer

22. Values Statement of the Organization

23. Wandering to Manage - Shop Floor and Office - Observe the Action to Plan and Control

24. Xerophilous Organization - Surviving the Business Cycles

25. Youthful Organization

26. Zeal - Earnestness to Serve and Survive

My Important Project Using The Articles in This Blog

MBA Core Management Knowledge - One Year Revision Schedule

A to Z: Management -  Blog Posts by Narayana Rao (Earlier Year Challenges and Regular Blogging)

Letter "A"

1. Adoption of New Products and Processes
2. April - Management Knowledge Revision
3. Advertising

 Letter "B"

Brand Building Update 2015

Business Firm and Society - The External Environment, Social Responsibility and Ethics - Review Notes
Business Conceptualization - Management Insights from Economics, Engineering Economics, Managerial Economics, Industrial Economics

Letter "C"  -

Culture Change Management Process

Channels of Distribution
Letter "D" -

Distribution Warehouse

Discount Policy

 Letter "E"-

Efficiency Improvement - Need and Role of Industrial Engineering

 "F" -

Finance for Non-Finance Managers

 Letter "G" -

Goal Setting for MBO

Letter "H" -

Human Resource Training - Role of Indicated Reading Lists

 Letter "I" -

Innovation Marketing

 Letter "J" -

Job Design

Job Satisfaction

 Letter "K" -

Knowledge Management Software Packages

Knowledge Management
Letter "L" -

Location of Production Facilities

Leadership Development
Letter "M" -

Market Orientation

Make in India Campaign - Industry Sectors Information

Letter "N" -

Needs and Wants - Marketing Concepts

New Products
Letter "O"

Organizational Sociology


Letter "P"

Product Development


Letter "Q"

Quantitative Thinking for Management


 Letter "R"  -

Relaxation During Work Day - Recovering from Fatigue


Letter "S" -

Six Sigma - Zero Defect Movement Systematized


Letter "T"  -

The Role of Theory in Practice of Engineering and Management


Letter "U"  -

Understanding Marketing Productivity


Letter "V" -

Value Engineering - Recent Developments


Letter "W" -

Work-Methods Science

Waste Elimination

Letter "X"  -

X Reminds me of Theory X

Letter "Y" -

Y Reminds me of Theory Y

Letter "Z"  -

Z Reminds me of Theory Z

A to Z - 2015 Challenge

A to Z: 2015 Blogging Challenge - Index for Management Articles by Professor Narayana Rao

To Know More About A to Z Blogging Challenge

April 2017 - Posting Schedule - Letters

Recent Development - Year Update

A - Advertising

B - Branding

C - Channel Management

D - Distribution

E - Effectiveness Improvement

F - Financial Management

G - Goal Setting

H - Human Resource Management

I - Industrial Engineering

J - Job Design

K - Knowledge Management

L - Logistics Management

M - Manufacturing Management

N - New Product and Service Marketing

O - Organizational Behavior

P - Productivity Science, Engineering and Management

Q - Quantitative Techniques

R - Retail Sales

S - Supply Chain Management

T - Training and Development

U - Understanding the Business Environment Change

V - Value Engineering/Product Industrial Engineering

W - World Class Business and Manufacturing

X -

Y - Youth Participation in Production and Consumption

Z -

Updated  18 August 2017, 30 April 2017,  15 April, 11 April, 8 April, 6 April 2017, 3 April 2017, 1 April 2017, 27 Feb 2017,  3 December 2016

August 16, 2017

Corporate Growth Strategy - Introduction and Bibliography

Strategies for Sustaining Rapid Company Growth
(Thompson and Strickland in the chapter, Tailoring strategy to Fit Specific Industry and Company Situations)

Horizon I  "Short jump" strategic initiatives

Horizon II "Medium jump" strategic initiatives

Horizon III   "Long jump" strategic initiatives to  plant the seeds for ventures in businesses that do not yet exist - Investments in R & D,  Setting up venture capital funds that invest in new ventures inside and outside the company,

Managing project portfolio consisting of multiple horizon projects is difficult, but has to be done.

For more detail on multiple horizon projects model

Article McKinsey Quarterly December 2009
Enduring Ideas: The three horizons of growth

Interview April 2008
A fine-grained view of the sources of growth - Video

INNOVATION and Company Growth
To Succeed in the Long Term, Focus on the Middle Term
Geoffrey Moore
Managing Director at TCG Advisors, a strategy consulting firm located in San Bruno, California.
Harvard Business Review,  JULY–AUGUST 2007 ISSUE

The roots of organic growth

By Kabir Ahuja, Liz Hilton Segel, and Jesko Perrey
Article McKinsey Quarterly August 2017

Three types of growth strategy clusters

Investors - Investing in profitable products by finding cash fron non profitable area - Cost leadership strategy.

Creators - New Product development and introduction

Performers - Focus on commercial activities - marketing, fine pricing and service

Either investors or creators who pursue one more strategy are more successful.

Analytics is providing advantage in all three strategies at the moment

The Alchemy of Growth: Practical Insights for Building the Enduring Enterprise

Mehrdad Baghai, Stephen Coley, David White
Perseus Books, 2000 - Business & Economics - 272 pages

Growth unleashes benefits beyond the economic. It revitalizes organizations and invigorates the people in them, creating energy, a sense of purpose, and the glow of being on a winning team. Like the alchemy of old, it seeks to transform the everyday into the exalted by means that seem little short of magical. Yet growth is often elusive, achieved at unacceptable costs, or managed in fits and starts. Based on over three years of research and application at high-performing companies around the world, The Alchemy of Growth is a comprehensive, practical approach to initiating, achieving, and sustaining profitable growth?today and tomorrow. As the book shows, the secret is to manage business opportunities across three time horizons at once: extending and defending core businesses, building new businesses, and seeding options for the future. The Alchemy of Growth offers managers at all levels the tools and concepts for investing in the right initiatives, capabilities, and talent to propel their companies into the future.

Interview with Alchemy of Growth Author - Mehrdad Baghai

CEOTalkRadio upload
Hosted by professor Robert G. Barnwell, CEO Talk Radio provides senior executives with practical advice on enhancing the competitiveness, profitability, and market capitalization of their companies. Guests include leading CEOs, CFOs, authors, academics and other renowned management thinkers.

Staircases to growth
By Mehrdad Baghai, Stephen C. Coley, and David White with Charles Conn and Robert J. McLean
Article McKinsey Quarterly November 1996

Smart Growth: Building an Enduring Business by Managing the Risks of Growth

Edward D. Hess
Columbia University Press, 2010 - 230 pages

Wall Street believes that all public companies should grow smoothly and continuously, as evidenced by ever-increasing quarterly earnings, and that all companies either "grow or die." Introducing a research-based growth model called "Smart Growth," Edward D. Hess challenges this ethos and its dangerous mentality, which often deters real growth and pressures businesses to create, manufacture, and purchase noncore earnings just to appease Wall Street.

Smart Growth accounts for the complexity of growth from the perspective of organization, process, change, leadership, cognition, risk management, employee engagement, and human dynamics. Authentic growth is much more than a strategy or a desired result. It is a process characterized by complex change, entrepreneurial action, experimental learning, and the management of risk. Hess draws on extensive public and private company research, incorporating case studies of Best Buy, Sysco, UPS, Costco, Starbucks, McDonalds, Coca Cola, Room & Board, Home Depot, Tiffany & Company, P&G, and Jet Blue. With conceptual innovations such as an Authentic Earnings and Growth System framework, a seven-step growth funnel pipeline, a Growth Decision Template, and a Growth Risks Audit, Hess provides a blueprint for an enduring business that strives to be better, rather than simply bigger.

The Granularity of Growth: How to Identify the Sources of Growth and Drive Enduring Company Performance

Patrick Viguerie, Sven Smit, Mehrdad Baghai
John Wiley & Sons, 13-Jan-2011 - Business & Economics - 256 pages

While growth is a top priority for companies of all sizes, it can be extremely difficult to create and maintain—especially in today’s competitive business environment. The Granularity of Growth will put you in a better position to succeed as it reveals why growth is so important, what enables certain companies to grow so spectacularly, and how to ensure that growth comes from multiple sources as you take both a broad and a granular view of your markets.

The Physics of Business Growth: Mindsets, System, and Processes

Edward Hess, Jeanne Liedtka
Stanford University Press, May 24, 2012 - 130 pages

Organic business growth is governed by its own natural laws underlying truths that set the stage for growth and innovation, much in the way that Einstein's law of relativity accounts for the movement of objects in the space-time continuum. The most fundamental law is that uncertainty is the only certainty. Dominating forces are ambiguity and change; the processes at work involve exploration, invention, and experimentation. Unfortunately, these truths run counter to the principles of stability, predictability, and linearity that have long informed the design of our firms.

The Physics of Business Growth helps readers understand how to create growth in today's business environment, providing them a roadmap and a set of practical tools to navigate its challenges. The book lays out a three step formula that will prove invaluable to professionals who have the opportunity to influence growth now, as well as to tomorrow's growth leaders, guiding them in (1) creating the right employee and organizational mindsets to enable growth (2) building an internal corporate growth system, and (3) putting in place processes that result in identifying opportunities, launching growth experiments, and managing a growth portfolio.

Updated 18 August 2016, 8 October 2016

August 13, 2017

Industrial Engineered Systems Installation - Installing Proposed Methods by Industrial Engineers

Industrial Engineering
Installation of design is the biggest stumbling block said, Nadler [Nadler, 1955]. In many cases everyone contacted in step 6 and step 7 of method study process will approve of a method, yet there are some difficulties in installing new the method and getting the required changes made.

Steps in Method Study

1. Goal determination

2. Analysis of work

3. Application of principles of methods design

4. Selection of feasible solution

5. Formulation of recommended method/design

6. Review of design

7. Test of design

8. Installation of method

9. Standards setting

Installation of design is the biggest stumbling block said, Nadler [Nadler, 1955]. In many cases everyone contacted in step 6 and step 7 of method study process will approve of a method, yet there are some difficulties in installing new the method and getting the required changes made.

Steps in Installation of New Method

In general, installation of method calls for the following steps.

Approach to Foreman and Operator

If the analyst has reviewed the method and tested the method in cooperation with the foreman and the operator concerned, then the installation proper does not require selling the method. Otherwise, the first thing to do is to explain the foreman and the worker the details of the method and rationale for it.

Any approach to the worker should be made with and through the foreman or supervisor. Basic human relations principles are to be kept in mind in conversation with the worker. The worker needs to be explained the shortcoming of the earlier method from productivity/efficiency point of view so that he understands why the problem needs to be solved and cooperates. The suggestions of the worker are to be welcomed and incorporated into the proposed method at every stage. Even at this stage of preparing for installation of the method, the worker must be encouraged to give suggestions or ideas, so that the operator feels that he is contributing to the proposed method.

Economic fears of workers play an important role at the time installation of new methods. The industrial engineer should check the policies and procedures established by management in relation to these fears and use the information to gain the cooperation of operators. Especially important in some of the these situations is the policy regarding employees who are not required to be in the new method

Changes in product/production equipment/work place layout

This part involves obtaining authorization to complete the suggested changes in design of the product, material, equipment etc. After obtaining the authorization from the Committee or Executive responsible for authorizing such changes, they have to be sent to design department for incorporation in drawings. Orders are to be placed for various items required on the basis of new drawings (resourcing). After the materials, parts, tools and equipment arrive, the proper department in organization has to install them in the work place.

An important problem during the installation of a new method is how to avoid excessive losses in production. In some situations, this problem can be solved by dong the changes after working hours and on holidays. Planning has to be done to minimize loss of production.

Training of operators and other staff including foremen/supervisors

Since the new method will usually result in a change in hand patterns, the operators should be give some opportunity to learn the new method. Training in some cases may be an oral explanation for few hours. In some cases it could be extensive training off the job and on the job [Barnes, 1980].


Follow-up of the method is to be done after some time subsequent to the start of regular production under the new method. Foreman has the primary responsibility to ensure that the new method is followed and also to solve any difficulties that crop up in the new method. Supervisors are to be trained first in new methods. But the industrial engineer, who has played a key role in the development of the new method, has a responsibility to make sure that the new method is contributing up to the expectations through a review exercise.

Follow-up is probably most important for operations which are not continually running but are performed according to orders. In these cases the operator may forget much of what was learned of the new method. Foreman has greater responsibility to make sure that new methods are used in such circumstances. But checking by the industrial engineer or IE department technician occasionally is not unwarranted. It is like insurance on the investment of time and effort spent on the developing new method.


Barnes, Ralph (1980), Motion and time Study: Design and Measurement of Work, John Wiley, New York.

Nadler, Gerald (1955), Motion and Time Study, McGraw-Hill, New York.

Originally posted in
Knol Number 100

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December

Updated 15 August 2017, 14 December 2011

August 7, 2017

Scanning of Environment for Marketing Ideas and Decisions

Marketing Management Revision Article Series

Unmet needs of people always exist. Companies can make fortunes if they can find a solution to problems of people like cancer, mental diseases, nonfattening but tasty food etc. There are many more problems awaiting a solution. Marketers have to scan the environment and find out problems requiring solutions and report them back to their product development specialists to facilitate focused efforts to develop solutions for them.

For this purpose marketing executives scan macro environment. Macro environment is further divided into different environments for study purpose.

Demographic Environment

The first macro environment that marketers monitor is global and domestic population and trends in it. The parameters they look for are worldwide population growth, population age mix, and geographical shifts in population, household patterns, educational groups and ethnic groups.

Economic Environment

An exchange market requires purchasing power for transactions to take place along with people who want goods. The available purchasing power in an economy depends on parameters like current income, prices, savings, current debt levels and credit availability. Marketers have to identify major trends in income and spending patterns.

Natural Environment

Marketers need to consider the threats and opportunities associated with four trends in the natural environment: the shortage of raw materials, the increased cost of energy, the increased levels of pollution, and the changing role of governments.

Technological Environment

There is a rapid technological change. Technology is creating opportunities for new products and services. Research and development expenditure is an important variable that determines development of new technologies. Marketers have to promote R & D activities both at company level and country levels through government funds. Government regulation of technology has increases to assure public safe technologies.

Political/Legal Environment

Regulation of various businesses by government and liberalization of some businesses are issues that need to be monitored by marketers.

Social/Cultural Environment

There is high persistence of core cultural values of societies. There are subcultures in every society. There are shifts in secondary cultural values through time. Marketers have to be alert to such changes and analyze marketing implications of such changes.

For Further Reading

The Marketing Concept - Kotler

Philip Kotler, Marketing Management, Text Book

Planned Revision schedule for marketing chapters is in February and March

Originally posted on Knol

Knol number 122

Updated 8 August 2017, 25 November 2011

August 6, 2017

Target Costing and Target Cost Management

Strategic Cost Management Course Articles

Target costing is strategic decision.

Target costing is based on three premises: 1.) Product design and development has to be oriented to customer affordability or market-driven pricing, 2.) Product cost is to be treated as an objective or a constraint variable determined by the market conditions during the definition of a product's requirements, and 3.) Proactively working to achieve target cost during product and process development.

Target costing builds upon a design-to-cost (DTC) approach with the focus on market-driven target prices as a basis for establishing target costs. The target costing concept is similar to the cost as an independent variable (CAIV) approach used by the U.S. Department of Defense and to the price-to-win philosophy used by a number of companies pursuing contracts involving development under contract. 

The company can have a policy of target costing. For any new product to be introduced, marketing comes out with an estimate of the price and sales quantity schedule. From this information, and information available on capital outlays required (an approximate estimate), a decision is taken to target a price point. From this price point, the required profit margin is deducted to get a target cost for the product and the product development team is given this target cost as the development goal. Therefore, development has a technical goal, the new product has to perform the specified function, it must be durable, maintainable, it must have quality, and also it has to be within the target cost.
To ensure that the developed product is within the target cost, the development team needs cost estimation assistance on a continuous basis. Value engineering is normally taken up after some years of selling the new product. Target costing requires concurrent value engineering. Value engineering requires cost information.

Cost accountants and cost estimators have a significant role to play in an organization which is pursuing target costing as a strategy.

For More Detailed Reading

Target Costing

What is Target Costing? A Presentation in pdf format

Best Practices in Target Costing

Index of articles on Financial, Cost and Management Accounting 

Original Knol - 2utb2lsm2k7a/ 380

Updated 7 August 2017, 24 November 2011

August 5, 2017

Financial, Cost and Management Accounting - Review Notes List

Financial Accounting - Horngren - Review Notes List

Introduction to Financial Accounting - Google Books Link

Links to review notes and power point presentations accompanying the book are available as follows:

1. Accounting: The Language of Business

2. Measuring Income to Assess Performance

3. Recording Transactions

4. Accrual Accounting and Financial Statements

5. Statement of Cash Flows

6. Accounting for Sales

7. Inventories and Cost of Goods Sold

8. Long-Lived Assets and Depreciation

9. Liabilities and Interest

10. Stockholder's Equity

11. Intercorporate Investments and Consolidations

12. Financial Statement Analysis

Cost Accounting
1. Role of Costing and Cost Accounting in the Organization
2. Introduction to Cost Terms - Review Notes
3. Traditional Cost Objectives and Their Utility
4. Job Costing - Review Notes

Variance Analysis, Flexible Budget and Management Control

Management Accounting

1. Managerial Accounting or Management Accounting - Role in Business and Industrial Organizations

MBA Knowledge Revision Schedule

January  - February  - March  - April  - May   -   June

July       - August     - September  - October - November  - December

Updated 6 August 2017, 27 June 2014

Wisdom - Theory Development

Targowski, Andrew
Harnessing the Power of Wisdom (2013),

Cognitive Informatics and Wisdom Development: Interdisciplinary Approaches: Interdisciplinary Approaches

Targowski, Andrew
IGI Global, 31-Dec-2010 - Psychology - 260 pages

Wisdom is the ultimate human virtue. Its development and  application is important for humans and civilization.

Cognitive Informatics and Wisdom Development: Interdisciplinary Approaches argues that wise civilization cannot function without wise people and vice versa, that wise people cannot function without positive conditions for the development of wise civilization. Using the cognitive informatics approach as a basis for the investigation of wisdom, this book offers solutions on how to study and evaluate the state of wisdom in 21st century society and the requirements for wise civilization and its monitoring systems.

Wisdom is information reflecting good judgment and choice; it is the final cognition unit in the Semantic Ladder and has different levels of scope and quality depending on the four minds, namely basic, whole, global and universal mind, which are supported by the art of living, understood as the reflection of behavioral aspects of wisdom within the philosophical framework of the hierarchy of possible purposes of one’s life.

Emotional Intelligence Quotient Test - Patent - Sajid Khan

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US6418435 * Aug 11, 1999 Jul 9, 2002 Connotative Reference Corporation System for quantifying intensity of connotative meaning
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Citing Patent Filing date Publication date Applicant Title

US20100293492 * May 12, 2010 Nov 18, 2010 Lewis Farsedakis Systems, Web Sites, Games, Calculators, Meters and Other Tangible Items for Measurement of Love

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Process for assessing and developing emotional intelligence in early childhood
US 20040009457 A1
Publication date Jan 15, 2004

Method for improving the emotional quotient in infants and children
US 20080268408 A1
This invention is a method to teach emotional awareness to children. The method uses a video to increase the child's emotional quotient. The emotional quotient is a measure like intelligence quotient that measures sensitivity to emotions. Because the video uses images it can be used with pre-literate or even pre-language children. It can also be used as a tool for teachers, parents and therapists who are using a larger education system or the video can be used by the child as a primary educational tool.
Publication date 30 Oct 2008

NRaoBlogs - - Popular Management Articles with Links

April 2017

By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering.

Basic and Detailed Principles of Industrial Engineering

August #Top10 - Philip Kotler - Keller Definition and Explanation of Marketing Management for 21st Century

August #Top10 -Marketing Communication: Channels and Promotion Tools

Articles having more than 1000 page views in May 2016


#Mgmtrevart Business Ethics – Introduction

#Mgmtrevart Moral Standards and Moral Judgments – Approaches

Financial, Cost and Management Accounting - Review Notes List

Kaizen Costing and Kaizen Cost Management

Role of Costing and Cost Accounting in the Organization

Variance Analysis, Flexible Budget and Management Control

Economic Theory of Production and Production Cost

Principles of Efficiency - Harrington Emerson

Engineering Economy or Engineering Economics: Economic Decision Making by Engineers

The Role of Accounting in Organizations

Accounting: The Language of Business - Review Notes

Valuation of Bonds and Equity Shares - Basic Principles and Models

Human Resource Management - Review Articles

Human Resource Management - Introduction - A Revision Article

The Role of Globalization in HR Policy and Practice - Review Notes

The Legal Environment of HRM - Review Notes

Work Analysis and Design -Bernardin HRM Chapter - Review Notes

Human Resource Planning and Recruitment - Review Notes of Bernardin's Chapter

Performance Management and Appraisal - Bernardin - Review Notes

Training and Development - Bernardin - Review Notes  2001 pv

Direct and Indirect Compensation - Review Notes 3303 pv

Managing the Employee Relationship - Review Notes

Employee Health and Safety - Review Notes 2916 pv

Value Engineering - Introduction

Plant Layout - Efficiency

Organizing for Industrial Engineering Department and Function 1692 pv

System Improvement Process

Total Industrial Engineering - H. Yamashina  4321 pv

Inspection Methods Efficiency Engineering

Operations Research - An Efficiency Improvement Tool for Industrial Engineers

Industrial Engineering - Introduction

Principles of Motion Economy

Motion Study - Human Effort Engineering

Ergonomics - Introduction

Predetermined Motion Time Systems (PMTS)
2682 pv

Statistical Quality Control – Industrial Engineering

Shigeo Shingo - The Japanese Industrial Engineer
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Peter Drucker on Scientific Management - Industrial Engineering

Theories of Leadership

The concepts of Leadership and Management

Leadership Styles, Roles, Activities, Skills and Development - Review Notes

Political Strategies in Use for Acquiring and Using Power in Organizations

Lean Thinking - James Womack and Daniel Jones - Book Summary

Budget, Budgeting and Budgetary Control

Value Chain Analysis - IMA Guideline

Managerial Economics of Profit - Economics for CEO - Review Notes

Economics of Capital Budgeting - Joel Dean - Managerial Economics - Review Notes

Selling Process - 10 Steps

Selling Process – Prospecting

Sales Process – Call Planning

Interacting with the Prospect – Customer

Trial Close

Sales Closing Techniques

Service to Customer: Follow Up After The Sale

The Marketing Concept - Kotler

Marketing Strategy - Marketing Process - Kotler's Description

Marketing Strategy - Differentiating and Positioning the Market Offering

Marketing and New Product Development - Kotler and Keller's Book Chapter Summary

Philip Kotler - Keller Definition and Explanation of Marketing Management for 21st Century - 14th Edition

Marketing Channel Management – Important Issues

Sales Promotion

Organizational Buying Processes and Buying Behavior
Analyzing Competitors
Market Segmentation and Selection of Target Segments

Marketing Public Relations

Scanning of Environment for Marketing Ideas and Decisions

Operations Strategy and Competitiveness - Review Notes

Process Analysis

Optimizing the Use of Resources with Linear Programming - Review Notes

Forecasting - Operations Management Review Notes

Job Design and Work Measurement - Review Notes

Product Design and Process Selection—Services - Review Notes

Total Quality Management: Focus on Six Sigma - Review Notes

Strategic Capacity Management - Operations Management Review Notes

Organizational Behavior

Organizational Behavior Book by Fred Luthans - Review Notes

Introduction to Organizational Behavior

Organization Behavior – History of Development of The Discipline

Organizational Behavior – Theoretical Frameworks

Globalization and Technology - Impact on Organizational Behavior - Review Notes

Reward Systems and Organizational Behavior - Review Notes

Perception and Attribution - Review Notes

Personality and Attitudes

Communication: Importance and Definition

Stress, Conflict and Negotiation Skills


Political Strategies in Use for Acquiring and Using Power in Organizations

Power - The Concept and Theory in Organizational Behavior

Principles of Management

#Mgmtrevart  Principles of Management Revision/Review Articles - List

#Mgmtrevart  Management - Definition and Process

#Mgmtrevart  Evolution of Management Thought and Theory - Review Notes

#Mgmtrevart  Principles of Management – Koontz and O’Donnell

#Mgmtrevart  Planning - A Management Process

#Mgmtrevart  The Nature and Purpose of Planning - Review Notes

#Mgmtrevart  Leadership - Koontz and O'Donnell - Review Notes

#Mgmtrevart  Human Factors and Motivation - Koontz and O'Donnell

#Mgmtrevart  Managerial Skills

#Mgmtrevart Tailoring Strategy to Fit Specific Company - Industry Situation - Review Notes

#Mgmtrevart Building Resource Strengths and Organizational Capabilities - Review Notes

#Mgmtrevart  Corporate Culture and Leadership - Keys to Effective Strategy Execution - Review Notes

Supply Chain Management

#Mgmtrevart  Supply Chain Management: Review Notes Based on Chopra and Meindl's Book

#Mgmtrevart Understanding the Supply Chain - Review Notes

#Mgmtrevart Supply Chain Drivers and Obstacles - Review Notes

#Mgmtrevart Supply Chain Performance: Achieving Strategic Fit and Scope - Review Notes

#Mgmtrevart Facility Decisions: Network Design in the Supply Chain - Review Notes

#Mgmtrevart Supply Chain Management - Coordination

#Mgmtrevart Demand Forecasting in a Supply Chain - Review Notes

#Mgmtrevart Determining Optimal Level of Product Availability - Review Notes

#Mgmtrevart Aggregate Planning in the Supply Chain - Review Notes

#Mgmtrevart Managing Economies of Scale in the Supply Chain: Cycle Inventory

#Mgmtrevart Managing Uncertainty in the Supply Chain: Safety Inventory - Review Notes

#Mgmtrevart Network Design in an Uncertain Environment

#Mgmtrevart Designing the Distribution Network in a Supply Chain

Updated on  6 August 2017,  8 April 2017, 31 May 2016