Human Capital

Companies are small, usually work with no more than three product families, allowing them to be agile in a certain way to respond and adapt to the Retailers customers requests. They have some approach towards the market though they mostly seek to achieve sales offering the lowest value and service around their products as a way of maximizing your profitability. What happens is that such companies normally also: are a single owner or family businesses which avoids accountable to a Board of shareholders and this entails making decisions on the basis of sentiment rather than on facts. They have a price strategy based primarily on costs. They have little confidence in the development the introduction of innovative and differentiating products.

Make little or no investment at the moment to introduce line extensions. They do not devote resources (formally) in market research or give substantial support to level promotional and advertising their products which then leads to a short lifecycle for such line extensions. They make little planning in its production department. Conducting the production of Re-activa and not Pro-activa. They have little or no respect for budgets dedicated to marketing established at the beginning of its fiscal year. They do not carry out a clear and definite strategic planning to five years but that they seek immediate benefits through your sales management.

Little attention to the management of its Human Capital. From where I see it, these companies have three options: adapt, perhaps earning one minor in operations margin, responding to the current reality of the market. Stay as they are and go into a tailspin in an increasingly competitive market. Sell. Adapt. A company like that you have described has a good chance of adapting to the Real current market situation since it has, as I said, a certain approach towards the market. That being so, it has at least one open ear and listening carefully to what happens in the market.

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