ADVANCE STRATEGIC MANAGEMENT
1. What is consumerism?
Consumerism can be defined in two different ways;
1. Consumerism is a theory which states that buying and consuming goods and services in a large amount are more beneficial to the economy. Thus this theory appreciates gradually increased consumption of goods and services.
2. Consumerism means ‘consumer protection’. It is a movement or policy that protects the interests of consumers via truthful packaging, honest advertisement, improved safety standards and product guarantees. Consumerism involves policies that regulate methods, products and services, standards, selling and advertising in the interests of the consumers. These protect buyers from defective products, misleading advertising, unfair practices etc. Such policies can be mandatory, legislative, institutional or voluntarily accepted by the industry. e.g., consumers’ interests can be harmed by mispricing, adulteration, artificial demand etc.
Consumerism encourages economic growth by providing good quality goods and services to the customers.
Increased consumption by the customers shows the economic growth level. Increased demand would lead to increased production thus raising the gross domestic production.
It helps to make informed decisions through truthful advertising, environmental and safety standard laws. Thus consumerism provides protection to buyers.
Implementation of consumer protection laws shield consumers against exploitation, discourage anti-social activities and unfair trade practices, provide complete and latest information to the customer which aids in buying decision making process.
2. What IS STRATEGY? Why it is important?
Choose a company, study its strategy and then make its competitive analysis. DEFINITION
1. Strategy is business game plan used by management to stake out market position, conduct its operations, attract and please customers, compete successfully and achieve organizational objectives.
2. It is a process through which a company concentrated its resources on optimal opportunities to achieve short term and long term goals and other competitive advantages. IMPORTANCE
Strategy answers three central questions about the company (i) where are we now? (ii) where do we want to go? (iii) how will we get there? Strategy tells about the current position of the company, its future plans and the approaches it will follow to achieve its objectives.
Strategy encompasses actions to attract customers, actions to deliver value at optimal price and cost equilibrium, actions to respond to changing market environment, approaches to pursue available opportunities and plans to gain competitive edge.
A powerful strategy makes a company distinctive and provides sustainable and durable competitive advantage in creating, producing, distributing and marketing the company’s products/services.
An effective strategy results in best possible business performance in terms of financial profitability and market position.
Strategies are desperately needed to direct the activities of the company in a way that its goals and objectives are achieved in a right way through right approaches and at the right time.
An excellent strategy that is excellently implemented is a good measure to evaluate the management competencies and performance.
A strategy-focused company has a strong performance, profitable earnings, revenue growth and favourable return on investment.
COMPANY : COLGATE-PALMOLIVE
Colgate Palmolive has $17.1 billion consumer products and serves people around the world with renowned brands by offering four types of products/services: oral care, personal care, home care and pet nutrition products. This company operates globally and approximately 75 percent of its sales are from outside the home country while majority of its products are manufactured in its own facilities....
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