Win, place, show

By: trademagazin Date: 2007. 03. 28. 08:00

The success of business plans for the year largely depend on the outcome of annual negotiations. All key account, sales, marketing managers and even general directors face a high level of stress in the first months of the year. This is the period when the most stressful moments of the year are encountered. Some people prepare and calculate, some wait for an opportunity to improvise and there are some who just wait and hope – they easily become the losers, or victims. Most of the efforts made by manufacturers are focused on ensuring their presence in the widest possible range of sales channels, not always giving enough attention to necessity or results. Though „Activity Based Costing” is a frequently used term, such depth of analysis and planning is not seen equally often. The method of Brian Moore I encountered in 2000 in Warsaw offers a simpler and more spectacular approach. Instead of giving everybody everything they want, we should use a simple matrix. In addition to turnover generated by our clients, margins are also represented in the matrix. Not many people took the trouble of monitoring the efficiency of retail chains along with monitoring the obvious expansion in size and turnover. Surprising facts can surface when we do this. How is it possible that some chains maintain their presence despite accumulating losses amounting to billions, while other similar chains generate profits amounting to billions? Why is it that some chains achieve spectacular growth even in a saturated market, while other chains with similar price and assortment policies and financial background experience stagnation? Organisational structure, processes and culture should support strategy. Functional strategies should also be coherent with business strategy. Furthermore, people should also be committed to implementing strategy. The ability of an organisation to distinguish itself authentically from its competitors is definitely and advantage and authenticity comes from coherence between externally projected (brand or corporate) values and internally experienced values. Though I have no research data to support my argument, I believe that organisations with a high level of internal harmony and coherence have a better chance of receiving support from their suppliers. If there is similarity and harmony between partners, the chances of successful negotiations and collaboration will also increase.

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