Tag: Strategies

Corporate Restructuring Strategies, Meaning, Types, and PDF
Corporate Restructuring Strategies, Meaning, Definition, Types, and PDF; Business or Corporate restructuring is the process of reorganizing one or more aspects of a company. The process of corporate reorganization can carry out due to various factors; for example, to make the company more competitive, to survive in the current unfavorable economic environment, or to encourage groups to adopt a completely new direction. Here are some examples of why restructuring can happen and what it means for the company.

Here is the article to explain, Corporate Restructuring Strategies, Meaning, Reasons, Types, and PDF

Corporate restructuring has become a buzzword in the economic crisis. Companies experiencing difficult financial scenarios need to fully understand the company restructuring process. Although restructuring is an umbrella term for any change in a company; it is mostly related to financial issues, download the PDF file or read online.

Corporate restructuring is often necessary when the business has grown to the point; the original structure can no longer effectively manage the product and the company’s general interest. For example, a corporate restructuring may require the division of certain departments into subsidiaries to create a more efficient governance model; as well as take advantage of tax breaks that allow the company to channel more revenue into the production process. In this scenario, restructuring is seen as a positive sign of company growth and often welcome by those looking to gain more market share of the company.

However, financial restructuring may occur in response to a decline in sales due to a weak economy or temporary concerns for the wider economy. In this case, the company may need to allocate funds to keep the company running during this difficult time. Costs can reduce by merging departments or departments, reallocating responsibilities and downsizing, or reducing production at different locations in the company. This type of restructuring is about surviving in a tough market, not growing the business to meet growing consumer demand.

The significance or meaning of corporate restructuring;

Companies can restructure through the acquisition of companies by new owners. Acquisitions can take the form of leverage, hostile takeovers, or mergers of any kind that keep the company intact as a subsidiary of the controlling company. When restructuring stems from a hostile takeover, robbers often stop companies, selling real estate and other assets to profit from the takeover. What’s left after this restructuring is probably smaller companies that can be run, though not at the level that was possible before the takeover.

In general, the idea of restructuring is to allow the company to continue working in a certain way. Even if corporate raiders open up the company and leave the shell of its original structure; there’s still hope that what’s left can work well enough for new buyers to buy the downsize business and bring it back to profitability.

What does mean restructuring?

Restructuring is an action take by a company to significantly change the financial and operational aspects of the company, usually when the company is under financial stress. Restructuring is a type of corporate action that involves making material changes in debt, operations, or corporate structure to limit financial damage and improve business.

Often, when a company struggles to pay off its debts, debt restructuring will consolidate the debt and adjust the terms to provide an opportunity to repay bondholders. Communities can also restructure their operations or structures by cutting costs such as salaries or reducing their size by selling assets.

Definition of corporate restructuring;

Business restructuring is a corporate action take to significantly change the structure or operations of the company. This usually happens when a company is facing significant problems and is in financial danger. Oftentimes, restructuring refers to a way of reducing the size of a business and making it small. Company restructuring is very important to eliminate all financial problems and improve company performance.

Management of troubled companies employs legal and financial professionals to assist and advise on negotiations and transactions. Companies can appoint a special new CEO to make controversial and difficult decisions to save or restructure the company. In general, companies may consider debt financing, reducing business operations, and selling company shares to interested investors.

Argumentations or Reasons for corporate restructuring;

Corporate or Company restructuring carries out in the following scenarios:

Strategy change;

Management of troubled companies seeks to improve company performance by eliminating subsidiaries or certain business fields that are not following the company’s focus. It appears the division does not strategically align with the company’s long-term vision. In doing so, the company decided to focus on its core strategy and sell those assets to buyers who could use them more efficiently.

Lack of profit;

The division may not be profitable enough to meet the company’s cost of capital and incur economic losses to the company. Poor unit performance can cause a wrong management decision to initiate a split or decrease unit profitability due to increased costs or changing customer requirements.

Reverse synergy;

This concept differs from the principle of M&A synergy; where the combined unit is more expensive than the individual parts combined. Due to reverse synergies, individual parts can be more expensive than combined units. This is a common cause of declining wealth. The company may decide that greater value can unlock through the business unit by giving it to a third party rather than owning it.

Cash flow requirements;

Selling a business unit can help generate significant cash flow for the company. When a business is struggling to raise funds, selling assets is a quick approach to raising money and reducing debt.

Asset withdrawal Method or Methods to Divest Assets;

There are several ways a company can reduce its size. The following are the methods companies use to separate their business from their operations:

Divestitures or Back off;

When selling, the company sells, liquidates, or separates a subsidiary or division. Usually, the direct sale of a division to an external buyer is the rule in sales. The selling company receives cash compensation and control of the business transfer to the new buyer.

Capital extract;

When shares divide, a new and independent company creates by diluting the portion of the shares and selling them to external shareholders. The shares of the new subsidiary will issue in a public offering and the new subsidiary will be a different legal entity with separate operations and administration from the original company.

Twig or Spin-offs;

As part of the spin-off, the company establishes an independent company; that is different from the original company, as does the equity calculation. The main difference is that there is no public offering of shares; but, shares distribute proportionally among the existing shareholders of the company. It will be the same shareholder base as the original company, with completely separate operations and management. Since the shares of the new subsidiary will distribute to its own shareholders; the company will not compensate with money in this transaction.

Split-offs or Separation;

In case of separation, shareholders will receive new shares in the subsidiary company in exchange for their existing shares in the company. The reason is that the shareholders surrender their shares in the company to receive shares in the new subsidiary.

Liquidation;

After liquidation, the company will divide and the assets or divisions will sale in pieces. In general, liquidation associate with bankruptcy.

Types of corporate restructuring;

There are usually two distinct forms of corporate restructuring; The reasons for restructuring will determine both the type of restructuring and the company’s reorganization strategy:
- Financial restructuring can occur when the market or legal environment changes and is necessary for the business to survive. . For example, a legal entity may choose to restructure; its debt to take advantage of lower interest rates or to free up money to invest in current opportunities.
- Organizational restructuring is often done for financial reasons but focuses on changing the company’s structure and not on financial arrangements. Corporate restructuring is one of the most common types of organizational restructuring. Two common examples of restructuring are sales taxes and property taxes. The first involves setting up a business asset leasing company that can provide savings on sales and income taxes. In the second tax example, restructuring could change taxation methods or create opportunities for re-evaluation to improve reporting positions. Also, This can lead to transfer pricing.
Corporate or Company restructuring as a Business Strategies;

Corporate restructuring is the process of significantly changing a company’s business strategies, model, management team, or financial structure to meet challenges and add value to shareholders. Restructuring can result in major layoffs or bankruptcy, although restructuring usually aims to minimize employees’ impact wherever possible. The restructuring may include the sale of the company or a merger with another company. Companies use restructuring as a business strategy to ensure their long-term profitability.

Shareholders or creditors can impose restructuring; if they see the company’s current business strategy as inadequate to prevent the loss of their investment. The nature of these threats may vary, but common restructuring catalysts include a loss of market share, a decline in profit margins, or a decrease in the strength of a company’s brand. Other motives for restructuring are the inability to retain talented professionals and large market changes that have a direct impact on the company’s business model.

Basic or Primary restructuring strategy;

Depending on the size of the company and the degree of change; corporate restructuring can take place at various levels, including business, industry, and enterprise. In addition, it can include legal restructuring, financial restructuring, cost restructuring, repositioning, and other forms. Mergers and acquisitions can see as one of the most popular tools for changing a company’s structure as it allows incumbents to quickly acquire new skills and opportunities by merging with other companies or acquiring smaller entities.

At the same time, it should note that this form of restructuring characterizes by a high failure rate due to a different corporate culture; which complicates the realization of the planned synergies. Companies that are successful in mergers and acquisitions tend to choose compatible objectives or maintain the structural integrity of the acquired business; thus acting as a semi-independent R&D department rather than a deeply integrated subsidiary unit. Legal restructuring is another approach in this area that usually use to realize the various tax benefits associated with the S corporate structure and other differences between existing organizations.

Other forms;

Some of these forms differ radically in terms of liability constraints, contract options, and reporting requirements; which makes it advantageous for large companies to break up into smaller corporate forms to avoid the negative effects of the standard approach. This strategy can be supported by financial and operational restructuring instruments as shown in the following figure. They allow business owners to minimize costs, swap debt for equity, or liquidate some underperforming units.

Actions can also be external and include strategic acquisitions and alliances that may affect ownership of assets and liabilities. General Motors’ reorganization in 2009 can see as a significant example of financial, legal, and operational restructuring, including the liquidation of the holding company, the sale of several business units to third parties, and the complex rescue process to prevent the core business from weakening. from weakening.

Corporate Restructuring Strategies, Meaning, Definition, Types, and PDF; Image by PIRO4D from Pixabay.

Strategies of Corporate restructuring;

The best restructuring strategy for a company is based on the reasons for the restructuring; and, the specific circumstances and characteristics of the company. Below are five examples of corporate restructuring strategies for which assessment is critical:
- Mergers and acquisitions; In a merger, a company acquire in another economic entity and take over or combine with another existing company to form a new corporate entity. Although this strategy often uses by companies in financial disasters; it should note that mergers and acquisitions are often not the result of a financial disaster; but rather the potential business synergies that can achieve by combining the two businesses.
- Reverse Merger; Reverse Merger offers private companies the opportunity to list on a stock exchange without an IPO (Initial Public Offering). In a merger, a private company acquires a majority stake in a public company and takes control of the board of directors of a public company.
- Divestiture or Foreclosure; Also known as expropriation, foreclosure is the sale or liquidation of a subsidiary or other asset. Companies may sell assets such as subsidiaries or intellectual property (IP); Closing a business through a commercial sale, usually by auction; split up and start a new business from an existing part of the company, or go public by selling part of the company to public shareholders.
- Joint ventures; In joint ventures, two or more companies establish a new business unit. Each participating company undertakes to contribute certain resources and share the costs, profits; and, control of the new company established by the joint venture.
- Strategic Alliance; Strategic alliances allow two or more companies to work together to achieve business synergies while remaining independent organizations.
July 11, 2021
A Case Study is explained Dell SWOT Analysis

Dell SWOT Analysis; This case study is explained their SWOT Analysis and Marketing Opportunities for Dell. Dell is an American multinational computer technology company based in Round Rock, Texas, United States, that develops, sells, repairs, and supports computers and related products and services. In 1983, 18-year-old Michael Dell left college to work full-time for the company he founded as a freshman, providing hard-drive upgrades to corporate customers.

This Case Study is explained, what is the Dell SWOT Analysis?

In a year’s time, Dell’s venture had $6 million in annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year, the company generated $70 million in sales. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell’s revenues had topped an astounding $25 billion. Dell Social Business Strategy for Case Study!

The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy. By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc. grew to dominate the PC market in less time than it takes many companies to launch their first product.

Dell SWOT Analysis:

The following swot Analysis of Dell below are;

Strengths:

First Dell SWOT Analysis of Strengths; According to Dell.com, Dell incorporation announces itself as the world’s leading computer company. Dell is the World’s largest PC maker. Started with the capital of $1000 as in the current stage it has collected $2.478billion net income in 2009. For the last couple of years, Dell has taken its position as a market leader. Dell’s brands are one of the well known and renowned brands in the World. Dell avoids the intermediaries and supplies product directly to the end users. It uses Customer Relationship Management approaches with information and technology to collect data on its loyal customers.

So that a customer selects a particular PC model, then it goes for to add items according to customer’s choice and upgrades until the PC is fitted out to the customer’s own specification. The components which are used to make a computer ready are made by suppliers, never by Dell. PC’s are fitted by using comparatively cheap labor. You can even keep track of your delivery by contacting customer services. When the goods became ready it will reach among the customer by courier.

Weaknesses:

Second Dell SWOT Analysis of Weaknesses; Dell has huge varieties of products and components made by different suppliers and different countries. So sometimes it faces unexpected problems caused by the different component which is used for the products. It is a minor case which happened in 2004. Dell had to recall 4.4 million laptop adaptors because of a fear that they could overheat, causing electric shocks or fires. The main weak point of Dell is that it doesn’t manufacture the product.

It depends upon other manufacturer and it buys the product from the supplier and assembles the product as per customer’s choice and desires. So dependability is the main weak point we find in a case study of dell incorporation. Dell buys its component from the selected hi-tech component manufacturer. So sometimes the manufacturer or supplier who supplies for Dell stop manufacturing, Dell has to bear the huge loss on its overall sales.

Opportunities:

Third Dell SWOT Analysis of Opportunities; When Michael Dell was replaced by the post of the chief executive officer by Kevin Rollins in 2004 the company had got new blood, management, vision, and new strategy. That could lead the organization into a new even more profitable period. Dell is chasing the diversification strategy by developing a lot of new products to its range.

It also provides multiple facilities to its customer such as three in one, two in one, for example, getting computer peripherals when buying a Dell PC. It also produces non-computing goods such as iPod and other electronic brands. Therefore the non-computing goods of Dell compete against others.

Pursuing a diversification strategy Dell can find out new markets and customers in order to sell its mass products. Dell develops low-cost price customers in order to sell its retailers all over the world. The produced PCs are unbranded and they should not be known as being Dell when the customer makes the purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs.

Threats:

Finally Dell SWOT Analysis of Threats; The biggest threat for Dell incorporation is the competition in the existing global PC market. Well reputed companies like IBM, COMPAQ also adopting the same kind of marketing strategies, so in the current global market of PC compete with the same kind of product is an emerging challenge for dell incorporation.

As with all profitable brands, retaliation from competitors and new entrants to the market poses potential threats. Dell sources from Far Eastern nations where labor costs remain low. But there is nothing stopping competitors doing the same – even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer.

Dell’s commitment to customer value, to our team, to being direct, to operating responsibly and, ultimately, to winning continues to differentiate us from other companies. The Background section provides critical information and history of Dell’s business world. Economic factors; The recession slows down consumer spending and disposable income reduces. Dell Inc. addresses these issues in many ways. It manages weaknesses and threats to create a positive outcome.

Marketing Opportunities for Dell:

When Michael Dell was replaced by the post of the chief executive officer by Kevin Rollins in 2004 the company had got new blood, new management, vision, and strategy. That could lead the organization into a new even more profitable period. Marketing opportunities for dell could be a new market overseas with a new product.

Dell can grab the market by researching on changing the perception of customer towards technological product. Dell is chasing the diversification strategy by developing a lot of new products to its range. It also provides multiple facilities to its customer such as three in one, two in one, for example, getting computer peripherals when buying a Dell PC.

It also produces non-computing goods such as iPod and other electronic brands. Therefore the non-computing goods or Dell compete against others. Pursuing a diversification strategy Dell can find out new markets and customers in order to sell its mass products.

Case Study is explained Dell SWOT Analysis, #Pixabay.

Mission and Strategies of Dell:

Dell’s mission is “To the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of the highest quality, leading technology, competitive pricing, individual and company accountability, best in class service and support, flexible customization capability, superior corporate citizenship, financial stability”.

Dell’s own corporate website defines its global strategy as, “Our global strategy is to be the premier provider of products and services including those that customer requires to build their information technology and Internet infrastructures”.

May 28, 2019
The Strategies of Capabilities in Production Management!
Explain and Learn, The Strategies of Capabilities in Production Management!

What is Capacity Planning? The production system design planning considers input requirements, conversion process, and output. The concept of the study – The Strategies of Capabilities in Production Management. Capacity Planning defines, Strategic Capacity Planning, and Explaining of Capacity strategies. After considering the forecast and long-term planning organization should undertake capacity planning. Also learn, The Strategies of Capabilities in Production Management!

Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. In operations, management capacity is referred as an amount of the input resources available to produce relative output over the period of time.

It is a process of governing the production capacity obligatory by a manufacturing unit to meet out their varying demand for their products. It facilitates the organization to achieve their production level during the time of demand. It is the level of input that is obtainable to make the needed product in a particular period of time. It helps the management to take better management decision for optimum utilization of the resource.

In general, terms capacity is referred to as maximum production capacity, which can be attained within a normal working schedule. Capacity planning is essential to be determining optimum utilization of resource and plays an important role decision-making process, for example, the extension of existing operations, modification to product lines, starting new products, etc.

Understand the Strategic Capacity Planning: A technique used to identify and measure the overall capacity of production is referred to as strategic capacity planning. Strategic capacity planning is utilized for the capital-intensive resource like the plant, machinery, labor, etc.

Strategic capacity planning is essential as it helps the organization in meeting the future requirements of the organization. Planning ensures that operating cost is maintained at a minimum possible level without affecting the quality. It ensures the organization remain competitive and can achieve the long-term growth plan.

Strategies of Capabilities:

The Capacity strategies can explain into two types:
- The short-term response, and.
- Long-term response.
Short-term strategies:

In short-term periods of up to one year, fundamental capacity is fixed. Major facilities are seldom opened or closed on a regular monthly or yearly basis. Many short-term adjustments for increasing or decreasing capacity are possible, however. Which adjustment to make depend on whether the conversion process is labor or capital intensive and whether the product is one that can be stored in inventory.

Capital intensive processes rely heavily on physical facilities, plant, and equipment. Short-term capacity can be modified by operating these facilities more or less intensively than normal. The cost of setting up, changing over and maintaining facilities, procuring raw materials and managing inventory, and scheduling can all be modified by such capacity changes. In labor-intensive processes, the short term capacity can be changed by laying off or hiring people or having employees overtime or be idle. These alternatives expensive, though since hiring costs, severance pay, or premium wages may have to be paid, the scarce human skills may be lost permanently.

Strategies for changing capacity also depend upon long the product can be stored in inventory. For products that are perishable (raw food) or subject to radical style changes, storing in inventory may not feasible. This is also true for many service organizations offering such products as insurance protection, emergency operations (fire, police etc,) and taxi and barber services. Instead of storing outputs in inventory, inputs can be expanded or shrunk temporarily in anticipation of demand.

Long-term Responses:

Capacity expansion strategies- capacity expansion adds capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization. It focuses on the growth of the Organization by enabling it to increase the flow of its products in the industry. Capacity expansion is a very significant decision; the strategic issue is how to add capacity while avoiding industry overcapacity. Overbuilding of capacity has plagued many industries e.g. paper, aluminum and many chemical businesses. The accountants’ or financial procedure for deciding on capacity expansion is straightforward.

However, two types of expectations are crucial:
- Those about future demand, and.
- Those about competitors behavior.
With known future demand, organizations will compete to get the capacity on stream to supply that demand, and perhaps preempt such action from others.

Horizontal and vertical integration: Horizontal and vertical integration add capacity, within the industry, to further the objectives of the firm to improve the competitive position of the organization.

Horizontal Integration: Horizontal integration is the growth of a company at the same stage of the value chain. Horizontal integration consists of procuring (related companies, products or processes) the company could start the related business within the firm, which would be an example of internal concentric diversification.

Vertical Integration: Vertical integration is the combination of economic processes within the confines of a single organization. It reflects the decision the decision of the firm to utilize internal transaction rather than the market transaction to accomplish its economic purpose. It is expressed by the acquisition of a company either further down the supply chain, or further up the supply chain, or both.

Backward Integration: In case of backward integration, it is critical that the volumes of purchases of the organization are large enough to support an in-house supplying unit, If the volume of throughputs is sufficient to set up capacities with economies of scale, an organization will reap benefits in production, sales purchasing, and other areas.

Takeover or Acquisitions: Takeover or acquisition is a popular strategic alternative to accelerate growth. Major companies which have been taken over the post-liberalization period include Shaw Wallace, Ashok Leyland, Dunlop, etc. Acquisition can either be for value creation or value capture.

Image Credit to #pixabay.
June 29, 2018
Define Marketing Research, and their Process!
Marketing research is key to the evolution of successful marketing strategies and programmes. It is an important tool to study buyer behavior, changes in consumer lifestyles and consumption patterns, brand loyalty and forecast market changes. Research is also used to study competition and analyze the competitor product’s positioning and how to gain a competitive advantage. Recently, marketing research is being used to help create and enhance brand equity. Also learned, Investment in Mutual Funds, Define Marketing Research, and their Process!

Learn, Explain, Define Marketing Research, and their Process!

According to Philip Kotler, Marketing research is systematic problem analysis, model building and fact finding for the purposes of important decision making and control in the marketing of goods and services.

The marketing research process is a seven-stage one. The various stages of this process are:

1. PROBLEM DEFINITION:

This is the starting point in the marketing research exercise. Invariably, in any enterprise, there are several marketing issues that may require examination, and invariably every decision maker perceives his information need as being the most important. In problem definition it is important to be specific, avoiding ambiguities and generalities. Care should also be taken, not to define problems in too narrow a field as that may distract the researcher’s perspective. This may even affect creativity in the research.

2. RESEARCH OBJECTIVES:

Once the problem is defined, the next logical step is to state what the researcher wants to achieve. This statement is called objectives. To be meaningful and help focus the researcher’s attention, these objectives should be specific, attainable & measurable. The purpose of these objectives is to act as a guide to the researcher and help him in maintaining a focus all through the research.

3. RESEARCH DESIGN:

The third stage of the marketing research process is deciding on the research design. There are three types of research designs, namely:

(A) Exploratory: – This kind of research is conducted when the researcher does not know how & why a certain phenomenon occurs, for example, how does the consumer evaluate the quality of a bank or a hotel or an airline?

Since the prime goal of an exploratory research is to know the unknown, this research is unstructured. Focus groups, interviewing key customer groups, experts and even search for printed or published information are some common techniques.

(B) Descriptive: – This research is carried out to describe a phenomenon or market characteristics. For example, a study to understand buyer behavior & describe characteristics of the target market is descriptive research.

Continuing the above example of service quality, research was done on how consumers evaluate the quality of competing service institutions can be considered as an example of descriptive research.

(C) Causative: – this kind of research is done to establish a cause and effect relationship, for example, the influence of income & lifestyle on the purchase decision. Here the researcher may like to see the effect of rising income & changing lifestyle on consumption of select products.

4. SOURCES OF DATA:

Once the research design has been decided upon, the next stage is that of selecting the sources of data. Essentially there are two sources of data or information- secondary & primary:
- Secondary data: This refers to the information that has been collected earlier by someone else. Often this includes printed or published reports, news items, industry or trade statistics etc. this also includes internal documents like invoices, sales reports, the payment history of customers etc. these are important to the researcher as they provide an insight to the problem. Often the preliminary investigation is restricted to secondary data.
- Primary data: To overcome the limitations of incompatibility, obsolescence and bias, the researcher turns to the primary data. This is also resorted to when the secondary data is incomplete. Primary sources refer to data collected directly from the marketplace-customers, traders & suppliers often are the major sources. They are often reliable data sources and help in overcoming limitations of secondary data. The problem in primary data is its cost, both In terms of money & time, and often a researcher bias also creeps in.
5. DATA COLLECTION:

The researcher is now ready to take the plunge. But still, he or she needs to be clear about the following.

Procedure for data collection:

Data can be collected through any or a combination of the following techniques.
- Observation: This technique involves observing how a customer behaves in the shopping area, how he or she dresses up & what does the customer say when he or she sees the product.
- Experimentation: This is a technique that involves experimenting with new product ideas, advertising copies & campaigns, sales promotion ideas & even pricing & distribution strategies with the target customer group. These experiments can be conducted in an uncontrolled environment or in a controlled & simulated market environment.
Tools for data collection:

The researcher has to decide on the appropriate tool for data collection.

These tools are:-
- Questionnaire – used for the survey method.
- Interview schedule – used mainly for exploratory research.
- Association test – primarily used in qualitative research, also called as TAT (Thematic Apperception Test).
6. DATA ANALYSIS:

The next stage is that of the data analysis. It is important to understand raw data has no usage in marketing research .hence appropriate analytical tools must be used. The most elementary is the arithmetic analysis using percentile and ratios. Statistical analysis like mean, median, mode, percentages, standard deviation and coefficient of correlations should be used wherever applicable

7. REPORT & PRESENTATION:

The last stage is that of writing out a report and making a presentation to the Decision –maker. It is important that the report has the summary, called the executive summary, giving a bird’s-eye view of the research. This is because most senior managers have little time for going through the entire report in depth. The executive summary can direct the reader’s attention to specific issues by turning to the relevant sections in the report and should not exceed a thousand words.

The report should be structured and pages chronologically numbered generally, the structure of a good report is somewhat like the following:
- Introduction to the problem.
- Marketing research finding or survey findings.
- Interpretation of research finding, and.
- Policy Implications.
May 28, 2018
What are the Strategies of Conflict Management?

Learn, What are the Strategies of Conflict Management? Explaining!

Conflict Management is the practice of being able to identify and handle struggles with a fair, efficient and efficient way. Since collision in a business is a natural part of the workplace, it is important that there are people who understand the struggles and know how to solve them. It is more important than ever before in today’s market. Everyone is trying to show how much they work for a valuable company, and occasionally, this may lead to a dispute with other members of the team. Also learn, the Conflict in Organizations or Organizational, What are the Strategies of Conflict Management?

What is conflict management? Conflict Management is the process of limiting the negative aspects of the conflict while increasing the positive aspects of the conflict. The purpose of conflict management is to learn, including the effectiveness or performance in an organizational setting and to increase the results of the group. Properly managed conflict groups can improve the results. What is the Deductive Method of Economics?

The Strategies of Conflict Management!

In any situation involving more than one person, conflict can arise. The causes of conflict range from philosophical differences and divergent goals to power imbalances. Unmanaged or poorly managed conflicts generate a breakdown in trust and lost productivity. For small businesses, where success often hinges on the cohesion of a few people, loss of trust and productivity can signal the death of the business. Conflicts happen. How an employee responds and resolves conflict will limit or enable that employee’s success. With a basic understanding of the five conflict management strategies, small business owners can better deal with conflicts before they escalate beyond repair.

Here are five conflict styles or strategies that a manager will follow according to Kenneth W. Thomas and Ralph H. Kilmann:

Accommodating!

The accommodating strategy essentially entails giving the opposing side what it wants. The use of accommodation often occurs when one of the parties wishes to keep the peace or perceives the issue as minor. For example, a business that requires formal dress may institute a “casual Friday” policy as a low-stakes means of keeping the peace with the rank and file. An accommodating manager is one who cooperates to a high degree. This may be at the manager’s own expense and actually work against that manager’s own goals, objectives, and desired outcomes. This approach is effective when the other person is the expert or has a better solution. Employees who use accommodation as a primary conflict management strategy, however, may keep track and develop resentment.

Avoiding!

The avoidance strategy seeks to put off conflict indefinitely. By delaying or ignoring the conflict, the avoider hopes the problem resolves itself without a confrontation. Those who actively avoid conflict frequently have low esteem or hold a position of low power. Avoiding an issue is one way a manager might attempt to resolve the conflict. This type of conflict style does not help the other staff members reach their goals and does not help the manager who is avoiding the issue and cannot assertively pursue his or her own goals. However, this works well when the issue is trivial or when the manager has no chance of winning. In some circumstances, avoiding can serve as a profitable conflict management strategy, such as after the dismissal of a popular but unproductive employee. The hiring of a more productive replacement for the position soothes much of the conflict.

Collaborating!

Collaboration works by integrating ideas set out by multiple people. The object is to find a creative solution acceptable to everyone. Collaboration, though useful, calls for a significant time commitment not appropriate to all conflicts. Collaborating managers become partners or pair up with each other to achieve both of their goals in this style. This is how managers break free of the win-lose paradigm and seek the win-win. This can be effective in complex scenarios where managers need to find a novel solution. For example, a business owner should work collaboratively with the manager to establish policies, but collaborative decision-making regarding office supplies wastes time better spent on other activities.

Compromising!

The compromising strategy typically calls for both sides of a conflict to give up elements of their position in order to establish an acceptable, if not agreeable, solution. This strategy prevails most often in conflicts where the parties hold approximately equivalent power. This is the lose-lose scenario where neither person nor manager really achieves what they want. This requires a moderate level of assertiveness and cooperation. It may be appropriate for scenarios where you need a temporary solution or where both sides have equally important goals. Business owners frequently employ compromise during contract negotiations with other businesses when each party stands to lose something valuable, such as a customer or necessary service. What are the Strategies for Management Conflict in Organizations?

Competing!

Competition operates as a zero-sum game, in which one side wins and other loses. Highly assertive personalities often fall back on competition as a conflict management strategy. The competitive strategy works best in a limited number of conflicts, such as emergency situations. This is the win-lose approach. A manager is acting in a very assertive way to achieve his or her own goals without seeking to cooperate with other employees, and it may be at the expense of those other employees. This approach may be appropriate for emergencies when the time is of the essence. In general, business owners benefit from holding the competitive strategy in reserve for crisis situations and decisions that generate ill-will, such as pay cuts or layoffs.

April 15, 2018
What are the Strategies for Management Conflict in Organizations?

Learn, the Strategies for Management Conflict in Organizations!

What is conflict management? Conflict Management is the process of limiting the negative aspects of the conflict while increasing the positive aspects of the conflict. The purpose of conflict management is to learn, including the effectiveness or performance in an organizational setting and to increase the results of the group. Properly managed conflict groups can improve the results. Also learn, the Conflict in Organizations or Organizational, What are the Strategies for Management Conflict in Organizations?

The Strategies for managing conflict, Mainly three different strategies are used for handling conflict in organizations:

1. Stimulation of Conflicts!

The following methods may use the management to stimulate conflict.

Reorganization!

Changing the structure of an organization is an effective method of stimulating conflict. When work groups and departments are reorganized, new relations and responsibilities arise. Members try to readjust themselves and in this process, improved methods of operations may develop.

Use of Informal Communication!

Managers may manipulate messages in such a way as to stimulate conflict e.g., a department is to abolished can reduce apathy, stimulate new ideas and force revaluation of existing practices. Rumors may intelligently plant in the informal communication system. Conflict can also stimulate by redirecting message and altering channels of communication.

Encouraging Competition!

Healthy competition between individuals and groups may stimulate through properly administered incentives. Bonuses, incentive pay and rewards for excellent performance can foster the competitive spirit in the organization. As one group struggles hard to out-perform the other, constructive conflict will occur.

Bringing in Outsiders!

Management may shake up a stagnant organization by bringing in people whose attitudes, values and styles differ significantly from the prevailing norms. When such heterogeneous persons join an organization, status quo is disturbed. Divergent opinions, innovative ideas, and originality can develop. Also read, What is the Sources of Conflict in Organizations?

2. Prevention of Conflicts!

To prevent conflicts, the following strategies may employ:

Reducing Interdependence!

The potential for conflict is very high when two or more departments are interdependent and share scarce resources. Therefore, conflict may minimize by reducing interdependence among departments.

Rotation of Personnel!

Rotation of employees between interdependent departments can improve perception and mutual understanding. Employees may see the big picture and exchange views with one another. Employees become more considerate and co-operative.

Establishing superordinate Goals!

A difference in goals is a common cause of conflict in organizations. Goal differences can avoid by establishing mutually agreed goals. A superordinate goal is a common goal that appeals to all the parties and cannot achieve by the resources of any single party. In order to achieve the superordinate goal, conflicting parties sink their differences and cooperate together. For example, severe competition may force different departments to work together to ensure the survival and growth of the organization. Thus, a common threat or enemy may act as a great unifying force.

Creation of Mutual Trust and Communication!

The greater the trust among the members of the unit, the more open and honest the communication will be. Individuals and groups should encourage to communicate openly with each other so that misunderstandings can remove and able to understand the problems of each other.

3. Resolution of Conflicts!

Some of the common approaches towards conflict resolution are as under:

Compromise!

This is the traditional method of resolving the conflict. It is a process of bargaining wherein the parties negotiate on the basis of giving and take to arrive at some agreement. There is no distinct winner or loser because each party is expecting to sacrifice something in exchange for a concession. Compromise is commonly using where the conflict involves differences in goals, values or attitudes. It is effective when the sought-after goal, e.g., resources can divide between the parties.

Smoothing!

It is the process of suppressing differences existing between parties to the conflict and emphasizing common interests. Sharing of opinions removes misunderstanding and both parties realize that they are not far apart. Smoothing or accommodating may be useful when the conflict is associated with aggressive feelings among the parties. However, it can use only as a short-term measure for resolving the conflict.

Problem Solving!

In this technique, an attempt is made to bring the conflicting parties together and to share the mutual problems. The focus is on sharing of information to avoid misunderstanding and to find out areas of common interest. The question of who is right or who is wrong is avoiding. This method is suitable for resolving conflicts arising out of misunderstanding.

Dominance or Confrontation!

In this technique, parties to the conflict are left free to settle their score by mobilizing their strengths and capitalizing on the weaknesses of others. Parties use weapons like fights, arguments, and intimidation to win over each other. One party’s gain is another party’s loss. This technique is adopting when both the parties adopt a very rigid stand. Confrontation may aggravate the struggle and contribute little to finding out innovative or constructive solutions acceptable to all. The stronger party ultimately dominates the weaker party.

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April 3, 2018