At present many of the big commercial organizations of India and everywhere are facing problem of reduction in sales and its market share. According to me some of the following steps to be taken by the said organizations to face the competition emerged due to World Trade Organization and open markets more favourable to customers: –
- Brand Name: Reduce the expenditure to maintain Brand Image in other words to reduce the advertisement expenditure so as to enable to reduce the sale price without effecting the ‘Profit Margins’. High sale price may be forced the customer shifting to other competitive or alternative product. In the field of consumer goods, the consumer durables, Brand Name is playing very less role compared to the amount spent on publicity.
- Wastage: Every organization should try to increase productivity and reduce the wastage so as to face competition from all over the world, it is possible only when the difference between sale price and cost of production by reducing the expenditure on administration and market overheads.
- Production: The organization should concentrate only on the product on which its earning is more than going for new product.
- Quality: The organization should concentrate on quality under any circumstances; the same should not be neglected. Quality concept will over-ride the price competition.
- Marketing: The organization should develop its own information center, which provides information regarding the duplicate of its brand. Since the amount spent by the organization on advertisement will indirectly help the manufacturers of duplicate rather than the organization.
- Expenditure: The organization should take steps to reduce the expenditure on Over heads and cost of production by analyzing at every stage the nature of expenditure and comparison with the other organization and budgets.
- Accountability: Every activity of the organization has to be organized in such a way that there is responsibility and accountable person for proper conduct of the activity.
- Goodwill: The organization’s goodwill will depend on High Returns, Low Wastage, High Profit rather than publicity expenditure on ‘ Un productive Heads’.
- Placement: Proper placement of personnel should be made, so as to utilize the expert knowledge in full of his education and training in the proper and efficient conducting of the activities of the organization i.e., “Right person for Right Job”.
- Social Responsibility: The reduction of waste and improvement of the productivity should be considered as social responsibility of the organization since the loss to the organization is not the loss to the shareholders but also leads to effect the following areas:
- Waste of resources.
- Loss to creditors, financial institutions.
- Loss to customers, distributors, dealers.
- Loss to employees due to loss of employment.
- Loss to suppliers or raw materials.
- Loss to government as a whole.
- Loss to industry as a whole.
- Loss to image and goodwill of the group.
- Loss to investor’s confidence at large on corporate sector.
- Loss to net wealth of the company.
- Loss to productivity.
- Loss to quality.
- Loss to development as a whole.
- Loss to organizations, which deals with bi-products.
11) Administration: The management of organization should be organized in such a way that various checks at the stage of expenditure only should be undertaken with the following tests: –
- Is the expenditure necessary?
- Is there any less expensive alternative?
- Is there any scope for more productivity with the same expenditure?
- Is this expenditure is going to give benefit to the organization in the short time or in the long run?
The organization should apply the above tests at every large stage instead of waiting for reports by outside agencies in the process of “Post Mortem” of the activities of the organization in case of failure.
