IMPORTANCE OF A VERTICAL MARKETING SYSTEM A vertical marketing system (VMS) is one in which the main members of a distribution channel – producer, wholesaler, and retailer – work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate...
ORGANIZING TO OPTIMIZE MANAGERS’ SPAN OF CONTROL Span of control, also known as span of management, is a human resource management term that refers to the number of subordinates a supervisor can effectively manage. It is a particularly important concept for business owners to understand. Span of control is widely...
THE IMPORTANCE OF A SALES FORCE A company’s sales force consists of its staff of salespeople. The role of the sales force depends to a large extent on whether a company is selling directly to consumers or to other businesses. In consumer sales, the sales force is typically concerned simply...
USING ANNUAL REPORT AS A MARKETING TOOL Annual reports are formal financial statements that are published yearly and sent to company shareholders and various other interested parties. The reports assess the year’s operations and discuss the companies’ view of the upcoming year and the companies’ place and prospects in their...
KEYS TO ERECTING AN EFFECTIVE ORGANIZATIONAL STRUCTURE An organizational structure is the pattern or arrangement of jobs and groups of jobs within an organization. This pattern pertains to both reporting and operational relationships, provided they have some degree of permanence. The individual elements of an organizational structure typically include a...
THE IMPORTANCE OF INDUSTRY ANALYSIS Industry analysis is a tool that facilitates a company’s understanding of its position relative to other companies that produce similar products or services. Understanding the forces at work in the overall industry is an important component of effective strategic planning. Industry analysis enables business owners...
HOW A FACTOR COMPANY CAN BE A USEFUL SOURCE OF FUNDS FOR SMALL BUSINESS OWNERS Factoring is a form of financing in which a business sells its receivables to a third party or “factor company” at a discounted price. Under this arrangement, the factor agrees to provide financing and other...
KEY ELEMENTS OF DEBT COLLECTION PROCESS Debt collection is the practice of obtaining payments from customers for purchases that have been made on credit. Devising and maintaining an efficient and effective system for collecting on overdue accounts should be a priority from every business. But many companies fail to give...
HOW TO DEVELOP YOURSELF THROUGH DELEGATION You should never become so busy developing others through delegation that you neglect your own development. While the delegation process is an education in itself and will free your time, it can be reinforced through formal instruction. Improving Performance Delegation involves some of the...
STEPS TO DEVELOPING A CORPORATE CULTURE THAT WORKS Corporate culture refers to the shared values and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labor. As such, it is an essential component in any...
