Price and Value Analysis – Adopting Right Pricing Strategy

Any business will have to consider raising their prices eventually. There are many factors that create the need for raising prices. These are factors like inflation, costs associated with selling goods, price hikes in raw materials, shortages, and many more. Overhead costs in running a business never stay the same and rarely go down. Just this fact predicts that someday you will need to consider raising prices. But how should you go about this in order to not drive away your current customers and still keep a steady inflow of new customers? The simple answer is that you should go about raising prices carefully. Besides raising prices to cover increased overhead costs, here are some other considerations to make when doing this.

When your competitors are offering a product the same as yours but raising their prices then it might be time for an increase.
This is usually the case when you are selling a commodity where there are not many substitutes. In other words, the commodity is the same no matter where you buy it. The most prominent example of a commodity is gasoline. There isn’t much differentiation with gasoline other than additives and mixtures but gasoline is basically gasoline. If one station has to raise its prices, the others usually follow suit.
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Business Liability Insurance : Protection Against Indemnity

Everyone knows that we do not live in a world where everything goes as planned every day. And, no matter how much a business tries to please everyone, there will always be a customer who believes he was not treated appropriately or sold a product that did not live up to its claims. These are some of the reasons why it is not a good idea to operate without business liability insurance. Business liability insurance can be purchased in two main categories: general liability and professional liability. There are also other categories besides these such as product liability and insurance to protect intellectual property. Whatever the type of coverage, it is not wise to operate your business without business liability insurance because it is a world full of risk.

You are protecting yourself against losing assets in a lawsuit.
It is a mistake to think that if you are a business owner you cannot be held personally liable in a lawsuit. For example, a sole proprietor is personally liable because this person and the business are the same entity. The same goes for a partnership. Even with limited liability business structures a business owner can be held liable if an incident arises out of conducting businesses illegally or not operating separate from personal activities.
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Solving Conflicts with Business Dispute Resolution Clauses

No matter how carefully you try to serve your customers, business disputes are bound to happen occasionally. The world of business is dynamic and deals with different customers with different needs and personalities. Unfortunately, there are even customers who make it a sport to raise business disputes in order to get the upper hand and get a better deal. The point is that customers are all different and it is impossible to please everyone all the time. This is why you need to have a plan about how to approach and solve business disputes so as they don’t disrupt your operations or leave you with a bad reputation.

Make sure you do all you can to avoid business disputes.
The most commonly used tool for avoiding a dispute is to use well-written contracts. Contracts spell out exactly what the business is to perform and what the customer is to expect. Working without a contract is risky because each party assumes to know the expectations of the other. However, what sometimes happens is confusion over when the job is complete, how much the client must pay, and the level of support that must be provided afterward. This ambiguity is fertile ground for a dispute.
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Business Continuity Plan and Risk Assessment

In all the day-to-day hustle of buying and selling, business continuity (also known as disaster recovery) is something to easily forget about. Business continuity deals with resuming your company’s operation after some disaster occurs which temporarily suspends it. A prudent company will make sure they have a detailed business continuity plan and that it is accessible by all employees. After a disaster is not the time to figure out how to resume your business operations. Not having a business continuity plan can mean permanently halting your company. Here are some key considerations you need in order to make a plan to sustain your business in the event of a disaster.

You should do a risk assessment first.
A risk assessment is a process of identifying all of the potential threats that could disrupt your business operations. Why do businesses go through the trouble of a risk assessment ? Why don’t they just prepare for any threat? Risks have to be prioritized so that focus can be placed on making disaster recovery strategies for those that are most likely to happen. For example, if your business is in the arid southwestern United States, you don’t need to identify hurricane as a risk therefore you don’t need to spend time on planning for recovery from one.
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Enterprise Resource Planning in Small Medium Enterprise

business resources managementEnterprise resource planning is now gaining lots of importance among the business economy. It is now being seen as an important tool for managing resources of a company both internally and externally. It is being used both for many business applications and also for many manufacturing industries.

Previously, enterprise resource planning was used only of large business companies. It required lots of money to be invested. Small scale and medium sized companies were not ready to invest a large amount for buying software and employing staffs for managing ERP software.

Keeping this in mind, ERP vendors started diversifying their enterprise resource planning software by releasing many versions of the software which could assist small companies too. … Read more

Benefits of Enterprise Resource Planning In Manufacturing

business unitsMany companies find difficulties in synchronizing the data related to the company and getting out a reliable and efficient data out of it. Every organization hopes to achieve this. The flow of information across various business units should be smooth and reliable.

For example, the sales unit should be aware of how many products are there in the inventory and the inventory department should be aware of how much products are in the middle of manufacturing and the manufacturing unit should be aware of the raw materials available for further manufacturing. If these data are properly communicated, then the productivity of the company can be increased to a huge level. … Read more

Deciphering the Web of Business Intelligence Tools

business intelligence streamlineThe process of commissioning business intelligence tools will form one of the earlier phases in strategic planning when a business is trying to streamline decision making so that it is largely evidence-based. One approach is to look at each available tool that may be used by partners or competitors and then find ways of incorporating it within the existing and future business plans.

The other approach is to set out an over-arching strategy model which will ultimately determine the processes and outcome of the commissioning. This article is intended to provide both an overview and introduction to the fundamentals. … Read more

Significant Business Improvement with ERP Software Implementation

business technology advancementRecent years have seen a lot of development in the global economy. Particularly, small and medium sized companies had significant development. Some of the industries which had significant amount of growth are telecommunication, software, manufacturing and pharmaceutical industry. This growth has spanned many new companies and the competition has increased to a considerable amount.

Every company is looking to increase its market value. For, this they are re-looking into the factors which affect the company’s productivity and management. Every company is looking to use their resources effectively so that their business is done more effectively and efficiently. Most of the companies decides to use software which could manage their whole enterprise and the information should be available with the enterprise. … Read more

Business Performance Management Cycle within Manufacturing Model

manufacturing product development projectFortunately for the novice manager, there is a business performance cycle which can act as a framework. It is the blank canvass on which the manager can imprint the development of the business. It also provides parameters through which one examines the day to day activities of the company.

For the purposes of convenience we will describe the mode that essentially looks at the manufacturing model. This model will vary slightly with those within specific service industries but it gives a good example of the progression of the business performance management project.

It assumes that there are several major activities in the organization which include designing new products, creating models of the potential products, the actual manufacture of those products, and a review of the processes and finally optimizing the benefits of the product line. … Read more

Keys to Successful ERP Software Implementation

ERP Software IntergrationImplementing Enterprise resource planning software to a current working company requires lots of changes in the work flow both during and after the implementation for successful integration of the ERP system. Lots of training should be provided to the users who are going to use the enterprise resource planning software. Separate trainings are required for different levels of the users.

Implement an enterprise resource planning software has lots of ups and downs. The anticipation that a company expects might differ. It is very essential for the ERP vendors to make sure that the anticipations of the staffs who are going to use the tool is met successfully. … Read more

Managing Business Resources with Software Tools – Enterprise Application Suite

Manufacturing resource planningEnterprise resource planning is the term used to define managing the resources within a business using software tools. There are lots of enterprise resources planning software available from different vendors. The term enterprise resource planning was derived from another similar process called as ‘Manufacturing resource planning’.

Material resource planning is also a software based management of inventory and product productivity managing. It was also used for managing the process of manufacturing. Enterprise resource planning got evolved from material resource planning when the software architectures got ‘routing’ as one of its major part. … Read more

Metrics and Key Performance Indicators in Business Performance Management

Key performance indicatorsOne of the key elements of any performance management program is the ability to create milestones and key indicators. Otherwise how else would you know when you have achieved the objectives ?

The science of business performance management heavily relies on the ability to create a series of critical tests to assess whether the program is successful or not. These do not necessarily have to be on a strategic level. They can also be set on an individual or local basis.

The first stage is to set up a business data analysis program with the specific goals of trying to change the performance levels of the organization from the less desirable to the more desirable characteristics. … Read more

Pros and Cons of Enterprise Resource Planning

ERP softwareEnterprise resource planning soft wares are designed mainly to eliminate the complexity involved in managing the resources pertaining to the company. Though the main motive of ERP software is to increase the productivity it also has some disadvantages in it. Let’s discuss some of the advantages and disadvantages involved in the ERP systems.

A company which doesn’t use ERP really finds it difficult to have proper communication with each other business units. Even though many software applications are available to share the resources efficiently, ERP overtakes every other software with the fact that ERP are centralized service for any kind of information available related to the company. … Read more