Let’s see in this Module, Financial Strategies. Now an organisation are related to several
finance and accounting concepts considered to be central to strategy implementation.
These finance accounting concepts are, acquiring capital, right, developing projected
financial statements, management or usage of funds, and finally evaluating the worth of a
business.
Let’s check number one. Acquiring Capital or Sources of Funds, meaning, what number of
sources or what number or shares, how many shares, different types of shares, different
types of debentures, what should be the amount, what should be the number, what should
be the loan, what should be the deposit all that decision has been taken. So successful
strategy implementation often requires additional capital. Two basic sources of capital for
an organisation are debt and equity. Theoretically an enterprise should have enough debt
in its capital structure to boost its return on investment by applying debt to products and
projects earning more than the cost of debt. Strategies related to sources of funds are
important since they determine how the financial resources will be made available for the
implementation of strategies. Organisations have a range of alternatives regarding the
sources of funds. While one organisation may rely on external borrowings, another may
follow internal financing so it differs from organisation to organisation.
Next, Projected Financial Statements or Budgets. Now statement analysis allows an
organisation to examine the expected results of various actions and approaches, right, what
would be the expected result. A projected Income statement and …
To start with Social Marketing, now it aims to increase the acceptability of a social idea,
cause or practice among a target group. Example is campaign for prohibition of smoking,
right. Second example would be P&G, the collect or they donate, right, for every product
that we buy out of which 2 or 3 rupees is donated towards Girl Child Siksha Abhiyan. Isn’t it
good, yes? Next we see is Augmented Marketing, now in here it is the provision of
additional customer services and benefit built around the core and the actual products that
relate to the introduction of hi-tech services like, online computer services, etc. Herein
example could be Asian Paints, they give five years warranty on certain paints. Direct
Marketing, is a marketing strategy that interacts directly with the consumers asking them to
make a direct response. Example through catalogues selling, mail, electronic marketing,
Television shopping, etc. Relationship Marketing, it is a process of creating, maintaining and
enhancing strong value laden relationships with customers and other stakeholders. It will
go a long way in building relationships. Example, Emirates, right, when you fly by Emirates
they send a Mercedes, per passenger at your residence, so if it is a family of four, you can
even ask for four Mercedes and they provide. And they pick you up from you door, from
your home till airport. And again from your destination airport to the hotel. A Mercedes
service is provided. Same, British Airways, offers special lounges with showers at 199
airports for frequent fliers. Isn’t it amazing, yes. Next, Services Marketing, It is applying the
concepts, tools and techniques of marketing to services. Services is any activity that one
party can offer to another that is essentially intangible. Like, Banking, Retailing, Insurance,
etc. These days all the banks also send their representative to our home. Person
Marketing, now people are also marketed…