‘In the 1990s managers will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible – indeed, they’ll have to rethink the concept of the corporation it self.’
C K Prahalad and G Hamel 1990
Organizations do not exist in vacuum. They operate within a competitive industrial environment. Analyzing its competitors not only enables an organization to identify its own strengths and weaknesses but also help to identify opportunities for and threats to the organization from its industrial environment. SWOT analysis is a systematic analysis of these factors and the strategy that reflects the best match between them.
Let us analyze these principals in relation to the core competence of McDonalds, one of the largest food chain companies in the world. Let us first start with the strengths and the positive aspects which define the performance of this company. How can we define the company’s strengths? Strength is a distinctive competence that gives the firm a comparative advantage in the market place. For instance financial resources, image, market leadership and buyer supplier relations etc
McDonalds is the no: 1 fast food chain stores with a 40 million customers visiting it per day. It has over 30,000 branches in 120 countries. It derives 80% of its revenues from eight countries like Canada, Brazil, Germany, France, Japan, UK, Australia and US. The greatest strength was creating an image in the minds of the people and introducing them to the fast food culture. Delivery speed, customer care and cleanliness are the core strengths on which these stores expanded. They created a corporate symbol and their advertisement campaigns were highly successful in establishing the brand image and logo in the minds of the millions. Two main competitors generally identified with McDonalds are the Burger King and the KFC. McDonalds marketing strategy is concerned with the internal resources, external environment and its basic competencies along with its share holders.
McDonald’s product value is also its greatest strengths. Customers know what to expect when they walk into a McDonalds store. It gives great emphasis to human resources by satisfying both the customer and the employees. Next is the innovation aspect wherein new products line up to catch up with the new trends and tastes of the people. Its diversity into other new business ventures can also be considered as its strengths.
How effective are these strengths to the company in the long run? McDonalds today is not that amendable as it was during its inception. What are the driving factors which results in its present decline in terms of sales and services? To analyze this factor we have to look at the weaknesses part of the companies business and marketing strategy. What can generally be termed as a weakness of a company? The same factors which were considered as strengths also become a weakness if it impedes the overall performance of the company.
There are many affiliate marketing internet home business opportunities that offer leveraged and residual incomes. These are the perfect programs to use as a vehicle for unlimited wealth and financial freedom.
Affiliate marketing makes starting a home based business more convenient than ever before. Affiliates around the world earn anywhere from a few hundred dollars a month to full time 6 or even 7 figure income. The earning potential with a good marketing program is virtually unlimited.
The most powerful affiliate programs are the ones that offer leveraged incomes. A leveraged income is when you earn money from the collective efforts of others. This is a great way to earn more because you are not limited by your own time, energy, or ability.
Affiliate programs that offer team commissions are the ones where you can build a leveraged income. I currently work with multiple programs that offer team payouts, some of which pay only two levels deep and others that pay you for up to nine downline levels.
Another great thing about network marketing affiliate programs is that you can develop a residual income. A residual income allows anyone to build a future of financial freedom, one with plenty of money as well as plenty of free time to enjoy it.
A residual income is passive, so after you get the ball rolling, you will be earning money without having to work. This benefit combined with the power of leverage makes network marketing online a great vehicle for wealth and financial security.
Business is the backbone of the world’s economy. This is where the most jobs and wealth are created. A large percentage of businesses are entrepreneurial (or start out that way). Unfortunately many do no make it. This article gives some tips on how to avoid financial failure:
- Detail financial planning must be done before embarking on a business. This must continue throughout the existence of the business. Planning should include cashflow projections and sensitivity analysis on key parameters.
- Find out what requirements financiers have. Position the business around it; keep the credibility of the business intact and work on the relationships with financiers.
- Enhance the financial acumen within the company. Management needs to understand the meaning of financial statements, cashflows and financial ratios.
- Inventory should be managed at optimum levels. Have a proper stock system to manage it. Only keep stock items that moves fast or that is strategic important.
- Control the growth of the business to acceptable levels. Understand how much growth is sustainable and how it will be financed.
- Targeted gross margins should be well researched and form part of the business- and marketing plan. Work as far as possible to this target. Avoid doing business at all costs.
- Do everything in your power to ensure that at least a minimum turnover (that cover expenses) is achieved. Research the market and do proper pinpoint marketing.
- Control expenditure diligently. Know why money is spent and how it is spent.
- Have a strict credit policy. Follow the policy. Ensure that customers that do not keep their commitments are professionally dealt with.
- The most important aspect of the business is to manage its cashflow. Cashflows must be projected and monitor on a monthly basis (or shorter if required). Be pro-active in handling potential cashflow problems.
New York Life Insurance Company is large and successful. If you think life insurance careers are easy, think again. If you think personal financial representatives are entry level careers, you are doomed. Want the true facts about life insurance careers and personal financial representatives? Read this article.
I remember that years ago 15% of the women entering life insurance careers were women. Today with some career life insurance companies like New York Life Insurance Company that figure is now approaching close to 50%. Moreover, in a business already flooded with far too many male and female life insurance agents, their recruiting figures are up. This is a marketing scheme. Change the name to possible applicants from life insurance agents to financial representatives and suddenly an image of prestige and easy money appears. However, ask yourself why the insurer’s name is New York Life Insurance Company and not New York Financial Company. It is just a name game.
FACTUAL INFORMATION Recruiters of insurance agents or so called personal financial representatives have hardly been able to increase their retention rate during the first year and a half of the new recruit’s career. 10 years ago, 86% of newcomers left life insurance selling during their first 18 months, now that figure is 85% leaving, 15% remaining. After four full years of gaining experience, only 7% remain, and gender is not a factor.
Why does a highly respected company like New York Life Insurance Company hire over 3,500 reps in 2008? Their figures show appointing around 3,200 in 2007, and expecting 2009 to produce 3,500 new financial representatives to train. To me that adds up to 10,200 inexperienced reps in 3 years. Does anyone logically look at the numbers? This financially solid company founded in 1845 has a total agency force numbering slightly over 11,500. 90% of these are certainly are not newer financial representatives. The common interpretation of new hires retaining a lasting career is False. My analytical studies of New York Life Insurance Agents indicate slightly elevated retention than others. A similar insurance provider loses at least 70% of their first year agents.
Futurist have been projecting for years that we would become a society of privatization, not through psychic powers (although I can not speak for all of them), but through acute observation. Employment once governed and monopolized by big corporations, years ago gave way it majority to the small business owner, with self employment being the most recently growing sector. It is through self employment that many are building their own personal road to financial freedom. It is here where a Home Business Opportunity embraces individual power over ones own economic ambitions. The Home Business Opportunity field offers numerous types of opportunities that encourage and assist individual achievement toward rewarding self employment through entrepreneurship, but none with the same unlimited financial prospects as Network Marketing.
Network Marketing is a very real business structure created for the distribution of products through multiple levels of invited participants. The person of whom the invitation is accepted from is the sponsor. The sponsor is partly compensated for all activity within his or her group. Most direct sales organizations, if not all by now are utilizing this same form of multiple level compensation, because long term it creates financial freedom for those that exercise the appropriate work ethic.
In the early years Network Marketing was better known as Multi Level Marketing, because of the multiple level compensation plans that it included in addition to the retail sales revenue earnings. Direct sales organizations recognized that through the addition of multi level marketing they could recruit more representatives and sell even more product, while providing a better growth path to individual financial freedom.
Multi Level Marketing began in the United States in the 1950’s and although the average person did not conceive that an avenue for financial freedom was so readily available to just about anyone, the Federal Government did, and the business model cleared the US congress by only eleven votes. MLM became hammered by bad press. Scam artist found readily easy methods to birth schemes that they would umbrella under the same name. Direct Sales organizations camouflaged it using creative titles allowing them to use the compensation method without scrutiny. The business model has however withstood the test of time, and with the advent of the internet became a hand that found its glove.