Modern Managers Must Know This Economic Vocabulary

Author: Zhang Jian
Publisher:
Publish Date: 2003-10-01
Features: "Management Cockpit" truly concretizes this concept, bringing the business management system into a new realm. The entire "Management Cockpit" fully integrates the essence of human brain science, management science, and information science, with the human being as the core product. From the decision-making environment of managers to the definition of comprehensive business indicators and the expression of information, everything revolves around the goal of stimulating human intelligence, fostering coherent thinking, and enabling effective judgment.
45. Honda Model
Over the past decade, the leadership of Honda Motor Co. has changed, and its core business has shifted from motorcycles to automobiles. However, the winning business philosophy nurtured by Honda's founder, Soichiro Honda, has remained steadfast in the company. Of course, Honda stands out among Japan's large enterprises, partly because it has a long tradition of allowing employees, regardless of age, to pursue what they want to do. Moreover, Honda's culture has always been to entrust more responsibilities to individuals. This approach has helped Honda maintain its youthfulness and vitality. Additionally, Honda's strategy has always been to stay close to customers, understanding their thoughts and changing preferences. The Honda Model involves learning about customers by visiting their business sites rather than through sales. This is one of the reasons why the company established its headquarters in Southeast Asian countries. With the continuous expansion of automotiveization in Asia, the company must interact with many new customers. The Honda Model requires the company to accurately gauge what they want and what they don’t.
46. Business Model Franchising
In a paper presented at the "1998 China Franchising Symposium and Exhibition" in Shanghai, Guo Geping, Secretary-General of the China Franchise Association, said, "Now is a great time for China to develop franchising, with immense potential." The allure of franchising in China stems from several factors: China has a population of 1.3 billion, making it the world's largest potential market. The country's optimistic economic outlook and development, along with rising living standards and growing disposable income, are driving demand. The expansion of the urban middle class has increased demand for goods and services. The transition from a planned economy to a market economy has provided entrepreneurial opportunities for both enterprises and their former employees. The entrepreneurial spirit of the Chinese people, and the government's intention to foster an entrepreneurial culture, also support franchising. The necessary infrastructure to support franchising, such as communication, technology, transportation, and professional services, is continuously improving. The China Franchise Association has been established to support the development of franchising in China. In 1997, China issued a comprehensive franchising framework law (the "Administrative Measures for Commercial Franchising"). The government encourages and supports the development of franchising. The government encourages and supports the development of franchising. Business model franchising essentially involves cloning a business model through a network of replicated stores. Theoretically, any business model that can be managed can be franchised. The fast-food industry is an early example of business model franchising. Pioneers like McDonald's, KFC, and Pizza Hut have now grown into large multinational corporations. These companies have not only influenced people's eating habits worldwide but have also profoundly impacted local market operations through the introduction of the franchising concept. While the fast-food industry is one of the most accepting of franchising, the concept has now been embraced by more product and service providers. In countries where franchising is particularly popular, such as the United States, Canada, the United Kingdom, France, Japan, and Australia, most consumer products and services are distributed through franchising systems. Among these, the service sector holds especially exciting prospects, as franchising has expanded its influence from consumer services to business and quasi-professional service fields.
47. Direct Sales
Direct sales focus on establishing a direct relationship with customers, allowing them to interact directly with the company. A successful example of this sales method is Dell. Through this interaction, whether online via the internet, over the phone, or face-to-face with a sales representative, Dell's customers can easily find the machine configurations they need. This allows the company to manufacture customized computers that perfectly meet the customer's requirements. With this direct sales model, customers can also enjoy other benefits. For instance, customers receive high-value solutions because Dell consistently provides computers with the latest technology. Whenever Intel or Microsoft launches new products or software and hardware, Dell can quickly integrate a new system product for customers. This way, customers know that due to the direct interaction between companies, they can come to us to order customized computers with the latest technology. At the same time, Dell has also introduced the direct sales model into the service sector. If a customer's machine breaks down, they dial a nationwide toll-free number to the company, and our staff can solve the problem over the phone. If it's a hardware issue, technicians can even go directly to the customer's location to repair it, and this service is nationwide.
48. Cross-Marketing
Cross-marketing involves strategic integration between companies targeting the same market but not directly competing with each other. Cross-marketing provides a low-cost channel for businesses, including small family-owned enterprises, large corporations, or franchisors, to reach more potential customers by integrating resources such as time, money, ideas, activities, or presentation space. For example, Benetton and Motorola launched a series of elegant pagers called "Fashion Accessories."