Tuesday 21 May 2013

Fish Bone Model/ Cause-Effect analysis


Cause and Effect Analysis/ Fish-Bone Model

Cause and Effect Analysis gives a person a useful way of doing problem analysis. This diagram-based technique, pushes a person to consider all possible causes of a problem, rather than just the ones that are most obvious.

Cause and Effect Analysis was devised by professor Kaoru Ishikawa, a pioneer of quality management, in the 1960s. The technique was then published in his 1990 book, "Introduction to Quality Control." The diagrams that you create with Cause and Effect Analysis are known as Ishikawa Diagrams or Fishbone Diagrams (because a completed diagram can look like the skeleton of a fish). Cause and Effect Analysis was originally developed as a quality control tool, but you can use the technique just as well in other ways.

For instance, one can use it to:
-          Discover the root cause of a problem.
-          Uncover bottleneck in the processes.
-          Identify where and why a process isn't working.

There are four steps to using Cause and Effect Analysis.
-          Identify the problem.
-          Work out the major factors involved.
-          Identify possible causes.
-          Analyze your diagram.


Steps to solve a problem with Cause and Effect Analysis/ Fish-Bone model:

Step 1: Identify the Problem
-          First, write down the exact problem one is facing. Where appropriate, identify who is involved, what the problem is, and when and where it occurs.
-          Then, write the problem in a box on the left-hand side of a large sheet of paper, and draw a line across the paper horizontally from the box. This arrangement, looking like the head and spine of a fish, gives space to develop ideas.


Example:
In this simple example, a manager is having problems with an uncooperative branch office.
Figure 1 – Cause and Effect Analysis Example Step 1


Cause-Effect-Diagram-Example-1.jpg
Figure-1
Tip 1: Some people prefer to write the problem on the right-hand side of the piece of paper, and develop ideas in the space to the left. Use whichever approach you feel most comfortable with.

Tip 2: It's important to define the problem correctly. Look at the problem from the perspective of Customers, Actors in the process, the Transformation process, the overall World view, the process Owner, and Environmental constraints.

By considering all of these, one can develop a comprehensive understanding of the problem.

Step 2: Work Out the Major Factors Involved
Next, identify the factors that may be part of the problem. These may be systems, equipment, materials, external forces, people involved with the problem, and so on.

Example:
The manager identifies the following factors, and adds these to his diagram:
-          Site.
-          Task.
-          People.
-          Equipment.
-          Control.

Figure 2 – Cause and Effect Analysis Example Step 2



Step 3: Identify Possible Causes
Now, for each of the factors one considered in step 2, brainstorm possible causes of the problem that may be related to the factor.

Example:
For each of the factors he identified in step 2, the manager brainstorms possible causes of the problem, and adds these to his diagram, as shown in figure 3.

Figure 3 – Cause and Effect Analysis Example Step 3

Step 4: Analyzing Diagram
By this stage one should have a diagram showing all of the possible causes of the problem that you can think of.
Depending on the complexity and importance of the problem, one can now investigate the most likely causes further. This may involve setting up investigations, carrying out surveys, and so on. These will be designed to test which of these possible causes is actually contributing to the problem.
Example:
The manager has now finished his Cause and Effect Analysis. If he hadn't looked at the problem this way, he might have dealt with it by assuming that people in the branch office were "being difficult."
Instead he thinks that the best approach is to arrange a meeting with the Branch Manager. This would allow him to brief the manager fully on the new strategy, and talk through any problems that she may be experiencing.

Monday 20 May 2013

Branding



Branding

Global Brands
A global brand is branding products with a single brand worldwide. A firm may look at launching the products worldwide with a single brand logo, slogan. In the practice, we see some brands such as Coca Cola, Apple etc. are familiar to us irrespective of the cultural differences and the geographical boundaries we deal with in day to day life. This is where the global branding has come out in action. However a firm needs to carefully analyse the conditions that favour using a same brand name worldwide.
Global brands will have same product attributes, product formulas core benefits, values, same product positioning across the globe. Firm may enjoy high economies of scales through maintaining global brands and the brand awareness effort is less to a firm in the case of global branding. Global brands add prestige and image to the firm in across the globe, and this helps in gaining the market leadership position in both home and foreign countries.

Local Branding
Some firms go by the basis of local branding to mitigate with the cultural barriers, language differences, etc.. For an example, if the local industry is using a similar brand name, then its disadvantageous for the company to go on the global branding, therefore a localised version needs to come up as local branding.
This will help the firm to create a customer mindset, that they are purchasing a local brand that will help them to capture the market.

Whether to use global branding or local branding is a tricky question that needs to be answered by a firm carefully. Maintaining and acquiring well known local brands are a mode of generating access to the local channels, distribution network and established staff. It is more advisable to maintain a local brand by a company after an acquisition as this will help a firm to establish the product in the foreign market more successfully.



Private – Label Branding
This is in increasing threat to most of the large MNCs. They are high frightening competitors who provide the retailer with high margins to gain preferential shelf spare and strong in store promotion. Most of these brands are quality products with low prices, that will get immediate consumer attention, rather than the manufacturer brands that are premium priced.  Therefore, the MNCs will need to compete with these private brands in the international marketing platform.

Brand Name Changeover strategies:
Fade-in/ Fade-out: This is where the new global brand will be tied up to a local brand which is existing in the host market. Once the transition is done, the old name will be dropped out.
Combining the local brand with the name of the new partner. This is another branding strategy used to achieve successful change over of the brands in international markets.
Transparent forewarning- this alert the customers about the brand name change through communications, in-store displays, using the product packing.
Summary Axing: The old brand name will be dropped overnight and the new brand name / global brand will come to use. Suitable for situations where the market competition is high and the competitors are gaining the market share through the development of global brands.

Co – Branding: Co branding will be carried out by linking two products to obtain advantage of the equity of each brand.
Example:  Unilever Ice cream company co-branding together with Mars in the USA.

Umbrella Branding: A single banner brand will be used across the globe, with the support of a sub brand name for the total product portfolio of the company. The company name goes with the whole product portfolio. The brand name will be reflected through each and every product.
Companies with a positive brand name will benefit through umbrella branding in international marketing context as the customers will have a trust on the umbrella brand and therefore the product offered to foreign markets will too be highly accepted.

Saturday 18 May 2013

Corporate Social Responsibility (CSR)


Corporate Social Responsibility (CSR)

Corporate Social Responsibility is concerned with treating the stakeholders of the firm ethically or in a responsible manner. Ethically or responsible means treating stakeholders in a manner deemed acceptable in civilized societies. Social includes economic and environmental responsibility. Stakeholders exist both within a firm and outside. The wider aim of social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporation, for peoples both within and outside the corporation. (Hopkins, 2007)

How CSR is relevant in today’s world?
Corporate Social Responsibility has become an element of strategy and increasingly important for today/s businesses. Due to its effectiveness in 21st century importance of CSR is  growing day by day as competitive advantage among the business rivals.
            There are five identifiable trends that are continuing to grow their importance, they are-
                        Growing affluence,
                        Ecological sustainability,
                        Globalisation,
                        Free flow of information,
                        Brands. (Wertner and Chandler, 2011)