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Advanced Management Lessons for Big Multimedia Business Houses

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The writer of this article has seen the working of big corporate houses for last 15 years. For every organization to reach at developed position, the presence of core team and their management philosophy is important. It does not matter whether the company is in manufacturing or service sector. Management principles are the same for every sector. In our previous article “Sapt Mantras…….”, we had mentioned the key points of management in starting and putting the business on growth trajectory. Here in this article in addition to principles mentioned in our Article “Sapt Mantras ——————-” we discuss the management nitty gritty which the corporate houses apply to get developed and stayed in that position.

Maintaining Quality: In every business, first requirement is maintaining quality. Without quality, survival of the product in the market is not feasible. Quality makes a particular image of the product in the customer’s eye. Proper research, feedback system should be present for continuous monitoring of the quality. Maintaining and upgrading the quality of the product is a continuous process and it should be given priority.

Funds Management: For every business, whether big or small, funds management is a crucial issue. Funds INVOLVE cost. Every developed organization has funding arrangements. In order to reduce interest cost or increase the interest income (cash surplus companies), they tend to keep longer credit period. In order to fulfill this objective, they develop the suppliers first by way of making investment or otherwise in their business and then have the liberty to avail long term credit period. There investments also grow in value. Further these companies have very less or no debit period. In case of overseas customers, they prefer to get their payment secured by way of letter of credit or bank guarantee.

Product Branding: In order to establish their product in the market, corporate houses go for planned marketing strategies. Mainly it is seen that initial 2-3 years advertising is done for the brand establishment and then for maintaining it.  They use the tools of Below the Line (BTL) Marketing & Above the Line (ATL) Marketing. For every product there are different tools of branding. On the basis of nature of the business and target customers, these tools can be chosen and applied. Skilled professionals are used for the purpose.

Competition Management: In today’s world, there is tremendous competition in the market for every product. Your competition handling skills will decide whether you stay in the market and grow. Investments are required in this process and results come after a year time. Today’s management philosophy of big corporate houses has changed. They don’t want to stick to one superior & costly product having extra features and thus sacrificing sales revenue and market share. Instead they want to reach to all the sections of society by widening and deepening their product range (thus playing with prices as mentioned below in “Pricing Policy”) by which they would not only be targeting their sale increase but also be ahead in competition.

Pricing Policy: In the existing business environment, pricing policy plays a crucial role in maintaining sale of the products. Profit margins are more or less eroded. Now the business has become the volume game. Under pricing policies, the companies generally take following factors in to considerations:-

  1. What is the feature of the product as compared to rival products?
  2.  What is the quality of the product as compared to the rival one?
  3. Proper assessment and marketing plan to achieve particular target in case they keep particular price of the product.
  4. How a particular price effect the dynamics of market and large section of society?

Inventions & Research: Continuous market research is required to exploit a given situation in the market. One should have full knowledge of income pattern of the society. One should always keep oneself abreast of product gap given the income pattern of the society. What one can invent and how invention can be converted into commercial success and then profit are the basic matters where entrepreneurial skills are required. So research is a strategic tool which allows you to be in business for a long time to come. All big corporate houses provide certain % of their revenue on research.

Diversification: Diversification is used to increase profit and lower risk. Dependency on one industry has its own risk. Diversification saves you from the risks associated with a particular industry. In bad times if revenue from one nature of business reduces, the other business may compensate the same.

Depending upon the nature of transaction, the tool of diversification i.e. whether through merger, amalgamation, take over etc is used.

The post Advanced Management Lessons for Big Multimedia Business Houses appeared first on Academy of Animation and Gaming.


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