Hi. Welcome back. In Module 2,
we talked about several analytical tools that helped us understanding
our business environment and determine
the best strategies to get the most out of our firm's strength.
Let's talk about execution.
That is, how to materialize the strategy and
achieve the objectives and seize the opportunities.
There are several dimensions to consider when organizing the companies.
We can talk about functional structure,
which involves people from various areas,
such as marketing, sales, production etc.
Geographic. Regions of the worlds, countries,
state, cities regions etc.
Product expertise.
In this particular case, we're talking about
different product lines which are usually divided into business units,
and each one of them has different structure.
Specialization of channels. For example,
some areas deal with direct sales and
other areas have to deal with distributors, for example.
Client expertise or client focus.
Some vendors would have to handle small,
medium, and large customers.
In some cases, there are entire organizations dedicated to a single customers.
Different companies have different ways of
organizing themselves to interact with the market,
and the model they're going to use is typically
a combination of the variables listed above.
Managers in each of
the market's subdivisions are responsible for managing their environment.
Understanding the market, identify and quantifying opportunities,
avoiding threats, and using the resources
available to generate the maximum value to customers in their territory.
In order to do that,
the firm identifies the opportunity of the territory,
defines the sales objectives, establish the goals,
and define the action plans that need to be executed.
Objective and goals should be considered both external variables and internal variables.
A sales actions progress.
Their results are monitored to
key performance indicators to identify the need for adjustments.
Each territory has a unique competitive environment,
determined by the factors contained herein.
So they require a unique strategy,
specifically designed to address the local issues.
The relationship with the clients
varies according to the industry and the conditions of the local market.
The relationship between buyers and sellers are based on pure trading.
In this kind of relationship,
what matters is price,
like if we're talking about a commodity in the marketplace.
Another way is to repeat transactions.
In this particular model,
what matters is loyalty.
There is a potential for a long-term relationship.
Another model is the long-term relationship which are based on contractual commitments.
In this kind of relationship,
there are often resentments and battles in order to lower prices.
Another model is buyer and seller partnership.
This model is interesting because it fosters credibility.
There is a negotiation of price based on quantity,
quality, delivery, and support.
There's also openness to share information.
Another way of working is to form a strategic alliances,
which is basically a cooperation in order to achieve your strategic goals.
We can have joint investments in long-term connection.
One of the most important developments that we
have observed in analyzing the external environment,
was the concentration of companies,
which lead to increased bargaining power of both customers and suppliers.
The increased bargaining power of these players forced companies to improve
their internal systems to survive and look for new market opportunities.
The solution that many companies have adopted to
deal with the new and more challenging business environment,
is the development and improvement of key account management structures,
in which their internal areas dedicated to deep understanding
and forging long-lasting relationship with the clients.
This is the topic for the next video.
Thank you for watching. I'll see you later soon.