Learning Development Center

What Is a Marketing Concept?

2011-06-05T23:59:00.000-07:00

A concept is the overall idea or structure of something and marketing is how a product is moved through a channel to reach its target consumer. A marketing concept embraces the philosophy that good marketing strategy always has the needs and wants of the target market in mind. Marketing concepts are formed as creative approaches to the problem of how to get a product needed and desired by a group of consumers to be selected and purchased by this group. The crux of good marketing is being able to communicate the benefits of the products to consumers so that they will choose the product over competitors' offerings.

Awareness of the competition is a crucial consideration when developing a marketing concept for a particular product. For example, two companies could produce canned stew that is very close in price, but if one company communicates its product better in terms of convincing potential purchasers that its brand is the better choice, that product sells better than the competitor's. In order to do that, the marketing concept has to focus on the product’s unique selling proposition (USP).

The USP supplies a benefit to the consumer that competing products don’t. For instance, a canned stew with sweet potatoes in it rather than regular potatoes could be marketed as more nutritious and flavorful than competing stews. The product now stands out as offering something different and better than other brands. To increase the likelihood that a consumer will try the product, a coupon for the stew could be included in a print ad in a newspaper or magazine.

Although marketing communication is by its nature creative, it should always be strategic and thoughtful as well. Advertising should interest and motivate the target audience, while creating a desire for the product. For instance, some advertising attracts attention, but seconds later, the product itself is forgotten. Good marketing keeps products in the target consumer’s mind. Each marketing concept must also fit in with a company's advertising budget.

Creating fresh ideas to keep the brand relevant to the changing needs and desires of the target market is a crucial marketing concept. For example, the popularity of the Internet as a source of information for many consumers has led to the increasing number of companies that feature blogs or website logs about their products. Online advertising for products and services has also increased in order to reach the increasing computer audience.

What Are Professional Ethics?

2011-06-05T23:51:00.000-07:00

Persuasive advertising is a component in an overall advertising strategy that seeks to entice consumers into purchasing specific goods or services, often by appealing to their emotions and general sensibilities. This particular advertising strategy is different from informative advertising, which essentially provides the customer with hard data about the nature and function of the product. With persuasive advertising, the assumption is that the consumer already understands the basic nature of the product, but needs to be convinced of the desirability and the benefits that set a particular product apart from the competition.

One of the more effective approaches to persuasive advertising is to focus on specific benefits of the product. While those same benefits may also be found with competing products, the idea is to convey that a given product provides that benefit in a way that is hard to find elsewhere. For example, advertising for a given shampoo may note that the product contains ingredients designed to nourish dry hair, leaving the hair shiny and manageable. Even though other products contain similar ingredients, this particular shampoo gains a reputation for being ideal for people with hair that is dry and brittle, and thus attracts a specific sector of consumers.

Another approach to persuasive advertising is to convey the perception that using a given product will help an individual be more successful with some area of his or her life. A brand of mouthwash may use media advertising to convey the message that using the product assures the breath is fresh for a longer period of time, and therefore helps to enhance the confidence of the user when interacting with other people. This same general approach is used with perfumes and colognes, where the advertising creates the perception that anyone who uses the product will be more attractive and socially successful.

It is important to note that persuasive advertising does not actually state that if the consumer uses a given product, the effect illustrated in the advertising will automatically take place. The idea is to convey the perception that there is a good chance that the consumer will experience some type of benefit that is similar to what is portrayed in the print ad or the television commercial. In fact, some examples of persuasive advertising go as far as to include a disclaimer that the situation displayed in the advertising is only an example, and not the only possible outcome. This approach is often used in advertising for legal firms, in that the disclaimer notes that the advertising does not imply that the services provided by the firm are necessarily superior to those provided by other legal firms.

What Are the Types of Workplace Intimidation?

2011-06-05T23:49:00.000-07:00

It is essential for employees of any workplace to feel comfortable and safe in their environments in order to be productive and enjoy their jobs. Workplace intimidation is a serious concern that can take many forms: verbal threats and critical remarks, sexual harassment, sabotage of a person's work or supplies, and even physical violence. In order to stop workplace intimidation, individuals must be unafraid of threats and willing to seek the help of managers and law enforcement.

Often, workplace intimidation occurs in the form of verbal abuse. A resentful coworker ormanager can act as an office bully, constantly putting down or threatening others. Bullies often get enjoyment from intimidating others with disgusting, offensive, threatening, or otherwise inappropriate remarks at work. Workplace bullies are often jealous of others' accomplishments, and try to make their work more difficult by insulting and threatening them. Even when no physical harm is administered, verbal abusers can cause significant emotional stress and make an employee feel uncomfortable and scared to go to work.

Some office bullies go should be so far as to sabotage the equipment or accomplishments of another worker. A jealous bully may erase important computer documents, spread false rumors about another worker, or steal essential supplies from an individual's workplace. When such acts of sabotage go unnoticed by management, consequences and punishments are often directed towards the intimidated worker instead of the bully.

Sexual harassment is a serious form of workplace intimidation, which can take the form of inappropriate sexual comments, the display of offensive materials, or physically touching another worker in a sexual manner. Harassment can come from men or women, and be directed at either sex. In most cases, sexual harassment results in uncomfortable, stressful, unproductive work environments.

Ongoing violent acts in the workplace are uncommon, but when this type of intimidation occurs, the results can be devastating. A worker that is tripped or hit frequently at work can experience physical injuries and psychological pain. In addition, the weariness of future attacks can severely limit a worker's productivity and enjoyment of his or her job.

Individuals who believe they have been harassed or intimidated at their jobs can take several steps to put an end to the abuse. Workers should keep detailed records of any incidents that occur and try to find witnesses to help back up their claims. An important initial tactic to end workplace intimidation is talking to managers about the situation. Discussing problems with management is often sufficient to stop bullying, though when it is not enough, local law enforcement may need to get involved. It is essential for people to stand up to threats from bullies and seek help from the proper authorities to end harassment.

What Is the Strategic Management Process?

2011-06-05T23:47:00.000-07:00

The strategic management process is a way for businesses to build strategies that help the company respond quickly to new challenges. This dynamic process helps organizations find new and more efficient ways to do business. The four key elements of the strategic management process are situation analysis, strategy formulation, strategy implementation, and strategy evaluation.

By addressing each element of the strategic management process in the order listed, companies can evaluate and re-evaluate situations as they develop, always checking to be sure the company has positioned itself optimally in the business environment. Situational analysis is the first and most vital part of business process management.

Situation analysis involves looking over the company’s external and internal environments and the context in which the company fits in those environments. It begins with observing the company’s internal environment, investigating how employees interact with each other at all levels. It is helpful to hold discussions, interviews and surveys to get a clearer picture of the current environment. To analyze the external environment, managers must look at the interactions between customers, suppliers, creditors, and competitors.

Situational analysis also requires managers to consider which company needs are not being met. The types of challenges businesses face are numerous and varied. They can involve processes like financial planning, staffing, employee performance, customer retention, sales projections and many others.

After a situational analysis is completed, it is time to formulate a strategy. This involves determining the company’s strengths to decide which strategies can be implemented. Strategies can be operational, competitive or corporate, depending on which part of the organization must implement them.

Operational strategies involve day-to-day operations, forming the processes and procedures by which the company does business. Competitive strategies involve finding ways to compete with a particular industry or business. Corporate strategies are long-term plans that govern the overall direction the company plans to take.

Strategy implementation is the third step in the strategic management process. It involves putting the formulated strategy into place. Management processes will focus on methods and procedures designed to execute their strategies and the order in which strategies should be implemented.

The final step in the strategic management process involves observing the results of an implemented strategy. In this strategy evaluation, the process comes full circle. This analysis is essentially the same as situational analysis, looking at the internal and external environments and the company’s context within them to determine if a plan should be reformulated.

What is an Organizational Chart?

2011-06-05T23:45:00.000-07:00

An organizational chart is a diagram that depicts the structure of an organization in terms of relationships among personnel or departments. An organizational chart also represents lines of authority and responsibility. Generally, an organizational chart is a horizontal or vertical tree that contains geometric shapes to represent staff or divisions. The lines that connect the shapes indicate relationships between the positions. An organizational chart indicates the formal structure of a business or company.

Most often, a rectangle represents a person, position, or department. In a hierarchical organizational chart, the Chief Officer or President is the top rectangle. The level underneath the chief officer contains high-level managers or executives, and each succeeding level includes the subordinates of the line above.

In standard organizational charts, the shape is similar to a pyramid. Often, box size is relative to the authority level of the position; for example, an executive position may have a larger rectangle than a subordinate position. Peers generally have boxes of similar size on an organizational chart. Lateral positions on an organizational chart indicate a relationship between departments on the same level of hierarchy in the organization.

In a standard organizational chart, solid lines depict a formal and direct relationship between positions. A double linked rectangle might indicate a situation with co-supervisors. A dashed line indicates an advisory or indirect relationship between positions, while arrows indicate the flow of communication. To indicate job sharing or dual responsibilities, a divided box might be used. An open position is sometimes represented by a dashed border surrounding a rectangle, or a box containing either TBH (to be hired) or TBD (to be determined).

Because in a large company, the organizational chart can be space-intensive and complex, smaller charts may be utilized to represent individual departments. Other common space-saving techniques used in organizational charts include a staggered tree method, a columnar stack, or a list style which provides names or job titles rather than boxes. To avoid the frequent need to update an organizational chart, you might use position titles rather than the names of individual staff. Due to the changes in organizational structure, an organizational chart is not always up-to-date.

To create an organizational chart, you can use software such as Visio, or specialized software such as SmartDraw or OrgPlus. Microsoft Word has a Diagram Gallery to create such a chart, and Microsoft PowerPoint and Publisher have similar capabilities. The use of software to create an organizational chart makes revisions and additions simple.

What is Human Resource Management?

2011-06-05T23:43:00.000-07:00

Human Resource management is based in the efficient utilization of employees in achieving two main goals within a corporation or other type of organization. The first goal is to effectively make use of the talents and abilities of employees to achieve the operational objectives that are the ultimate aim of the organization. Along with realizing the goals of the organization, Human Resource management also seeks to ensure that the individual employee is satisfied with both the working environment and the compensation and benefits that he or she receives.

At times, the two main functions of Human Resource management (HRM), seem to be at odds with one another. There are certainly instances where it is impossible to arrive at solutions that are in line with both the aims of the company and the desires of the employee. When this happens, effective Human Resource management is faced with the task of finding a resolution that protects the interests of the company, but at the same time provides and acceptable level of satisfaction to the employee. This process can sometimes take a great deal of expertise on the part of the Human Resource personnel, but ultimately will help establish the best solution for all concerned parties.

Among the human resource issues that are generally handled by HR management personnel are the drafting of position descriptions for all levels of employment within the company, setting the standards and procedures that are used for hiring new employees, and determining benefits that are extended to existing employees. Disciplinary procedures, as well as procedures for recognizing employees for exemplary work, also fall under the province of Human Resource management. Human Resource management often seeks to provide the highest quality benefit packages possible, given the current financial position of the company. To this end, personnel concerned with Human Resources will seek the best in group health insurance, retirement programs, profit sharing, and vacation and personal days.

Preparing and maintaining a company employee handbook is often the province of Human Resource management. As part of that process, the management team will ensure that all guidelines and regulations contained within the text are in compliance with local, state, and federal laws that impact the status of employees. Human Resource management will also provide all employees with opportunities to understand the provisions within the handbook, both as part of new employee orientation and as an ongoing employee education process.

Often, Human Resource management and personnel are called upon to mediate grievances between employees and immediate supervisors. In these situations, the mediator will seek to represent the best interests of the company, ensure that the dialogue and process is in compliance with laws governing employment within the country of residence, and seek to effect resolution and reconciliation of all parties.

What Are Conceptual Skills?

2011-06-05T23:41:00.000-07:00

Conceptual skills are skills that utilize the ability of a human to form concepts. Such skills include thinking creatively, formulating abstractions, analyzing complex situations, and solving problems. In the business world, these skills are considered an integral requirement for executives in top-level management positions.

In general, conceptual skills involve abstraction. It is easier to think abstractly about a concrete, physical item, such as a car or house, than an abstract idea, such as justice or happiness. Conceptual skills can also require analysis, such as looking at patterns in events or objects.

Individuals with conceptual skills can examine how ideas are interrelated. They effectively see individual elements in relationship to the whole. Examining complex situations and issues are important conceptual skills. In addition, problem solving is an important conceptual skill that involves both analysis and creativity.

People with strong conceptual skills are often identified as effective leaders or managers. This generally is due to their abilities to understand the organization as a whole and develop creative strategies. Experts have identified three key skills for managers to possess: technical skills, human skills, and conceptual skills.

Technical skills involve knowing about things. Individuals with technical skills know the process. For example, if three steps are required in a waste management process, individuals with technical skills would know how to implement each of these three steps. People often obtain technical skills either through job training or technical colleges. Supervisors over departments are usually managers with strong technical skills.

Human skills involve knowing how to interact well with people. Typically, no one enjoys working for a manager who is rude or inconsiderate. A manager without human skills can reduce both morale and productivity.

On the contrary, managers with effective human skills often have employees with a positive attitude and a strong desire to increase company productivity. In a business environment, it typically is important for managers to work effectively with peers, subordinates, and supervisors. Other skills in this area are the ability to effectively communicate and collaborate with teams.

Conceptual skills also involve knowing how to formulate ideas. Individuals with strong skills typically have excellent cognitive abilities to think creatively and solve problems. In a business environment, managers with these skills are able to examine a complex issue and formulate specific, effective courses of action.

For example, a leader in the automobile industry needs to know the technical aspects of car production, but he or she also needs to know how to successfully market cars and how to compete against other car manufacturers. In a sense, he or she needs to be able to conceptualize the totality of the automobile industry. Because of modern business complexity, many management programs stress the ability for top executives to gather information, reflect, and then use critical analysis in their leadership.

What Is a Service Business?

2011-06-05T23:38:00.000-07:00

A service business is a business which sells services directly to consumers or other businesses. The service sector is active all over the world, and many people have interactions with service businesses on a daily basis. Companies can also havesubdivisions which take the form of service businesses; for example, a computercompany may have a service arm which provides support to its users.

Services are intangible in nature, only appearing when required by the consumer, which makes the nature of a service business very different from that of other types of businesses. Some examples of service businesses include the hospitality sector, consulting, appliance repair, computer support, health care, utilities, business services, real estate, legal services, andeducation. In all of these cases, people are being provided with a service, not a product, whether they are receiving treatment for a medical problem or learning in an elementary school classroom.

Marketing a service business can be tricky, because people are selling an intangible idea, rather than a product. Marketing often focuses on showcasing results, and on pushing customer service values to suggest that people will have a positive experience when they work with the business. A lawyer, for example, might demonstrate a high success rate with particular types of cases to attract customers, while a restaurant might pride itself on providing customer service of very high quality which makes diners feel like honored guests.

Starting a service business can be less costly than starting up a business which makes and sells products. Depending on the type of business, much less capital investment may be required. For example, a computer support technician could easily work out of a personal vehicle, traveling to clients to provide support services. Conversely, capital is needed to start a restaurant in order to secure and equip a facility.

Running a service business is also appealing to many people who are interested in working independently. Such businesses can often be operated by a single person, who may expand the business later as needed, and they allow people to put skills to work in a variety of ways. Someone who has knowledge and skills which may be valuable to others can turn them into a livelihood with a service business that allows other people to hire him for his skills, or hire him for the purpose of teaching skills. It is also possible to blend service elements into another type of business. For example, a skilled weaver could teach weaving classes in addition to selling finished woven products.

What is Telemarketing?

2011-06-05T23:36:00.000-07:00

Telemarketing is marketing conducted over the telephone. Most telemarketing calls are "cold calls," meaning the recipient of the call has not requested that thetelemarketer contact them. Telemarketing is one of the most controversial types of marketing.

The purpose of telemarketing is to make a sale. Sometimes telemarketers have personal information when they call a customer, knowing the person has purchased products similar or related to theirs from other vendors or outlets.

Some older practices of telemarketing inadvertently caused fear. One common type of automated telemarketing program would dial numbers to check for answering machines in order to leave a pre-recorded sales pitch. If a person answered, the program detected a real voice and hung up. Many people were frightened by the unexplained hang-ups, some fearing they were being stalked. It is now illegal for a telemarketer to leave an automated sales pitch on an answering machine.

This hasn't prevented telemarketing hang-ups, however. Autodialers call numbers to identify those that are disconnected or out of order and those answered by fax machine, answering machine, or person. If your home phone gets excessive hang-ups, telemarketers may be the reason. Some organizations are fighting to make this practice illegal, claiming it amounts toharassment.

Public irritation over growing calls from telemarketers prompted the U.S. Congress to take legal action in 1991 in the form of restrictive laws. For example, telemarketing calls are legally forbidden between the hours of 9PM and 8AM. Congress also made it possible for consumers to register with a national do-not-call list, launched in 2001. Furthermore, telemarketers that break restrictive laws can be sued for amounts ranging from US$500-1,500 per occurrence. Informed consumers have taken advantage of this.

One of the most controversial moves by the telemarketing industry is to acquire cheap labor by installing call centers in prisons. A call center is the hub of a telemarketing company, essentially a bank of cubicles with telephones, call lists and scripts. TSRs or telephone service representatives occupy the cubicles and make the calls. In general, the public was not pleased to find that convicted murderers and rapists had been supplied with their names, phone numbers, addresses and, in some cases, more extensive information -- and were calling them at home to sell them products.

Of the telemarketing companies that use inmate labor, most keep it quiet. Unions insist telemarketers are exploiting prison labor to avoid paying a fair wage to free Americans. Telemarketers claim they would have to outsource to countries like India to get cheap labor, and that inmate labor is a cost-effective alternative. Inmates are reportedly paid about US$200 per month for a 40-hour week.

What is Business Development?

2011-06-03T03:03:00.000-07:00

Business development is a broad term applied to the process of strengthening ties with existing clients as well as cultivating customers in other sectors of the consumer market. In order to accomplish this goal, business development normally crosses the traditional barriers between sales, marketing, customer care, operations and management in order to promote this process of expansion on more than one level. This means the business development specialist must exhibit a degree of competence in many different areas in order to identify and capitalize on growth opportunities.

One of the foundational aspects of busdev, or business development, is to assess the current assets of the company as they relate to the maintenance and expansion of the business. To this end, the business development specialist will work closely with sales and marketing professionals to identify the degree of penetration already enjoyed by the company in various sectors of the consumer base.

At the same time, the specialist will also work with customer care professionals to assess the feedback gathered from existing clients on the perception of the company and its products. This type of activity can often identify ways to refine current sales and marketing techniques in order to capture a wider share of consumers within sectors where the business already has a presence. At the same time, the addition of the data acquired through customer care contacts may help identify applications for the product line that are not promoted at present and could lead to capturing new markets if marketed properly.

It is important to note that the successful business development specialist is not focused solely on making sales or keeping current customers happy. While those aspects are part of the overall picture, the development specialist will also be concerned with making the best use of the company’s resources, refining the process and function of management and various departments, and addressing any legalities that must be observed as the company continues to move forward. In many organizations, this gives the business development specialist a wide range of authority to solicit information from anywhere within the corporate structure and to influence every aspect of company function.

The process of business development can be applied to just about any corporate situation. Even companies that are small need this type of activity in order to remain stable and to achieve growth over time. Often, the inclusion of at least one person who is focused on the activity of business development makes it possible to capture a view of the company that is hard for people with responsibility for specific functions with the organization to achieve without help.

Business development may take place by creating an arm or department of the corporation that carries out these functions. It is also possible to contract with a business development consultant in order to evaluate current circumstances and identify strategies for the creation of future growth

What is a Team Player?

2011-06-03T03:01:00.000-07:00

Many employment ads mention that the successful candidate will be a team player. Employers want employees to be comfortable working as part of a team. It's important for a new employee to fit in with and get along with the other workers in order for the organization to run smoothly in a spirit of cooperation. A team player is not necessarily liked by everyone, nor does a team player usually like everyone on the team. However, a true team player is an employee that can be counted on to do his or her part of the work and be relied on to complete tasks and work cooperatively with others.

It’s important to realize that a business team differs greatly from a social group. This can be confusing for some as friendships may occur with co-workers. We may even confide in a co-worker at times like we would with a friend. Yet we cannot lose track of the fact that we all must work together to ensure that the company’s end product or service is delivered to clients in an efficient and cost effective manner. If we experience problems in friendships we’ve formed with co-workers, we have to be sure that it doesn’t affect the business team and that’s not always an easy thing to deal with.

Another trouble spot for many in being a team player is in natural versus expected styles. Some people are natural leaders, while others are natural followers. Yet, depending on one’s position and status in the company, roles may often have to be switched. The natural leader may have to learn to become more of a follower in a subordinate role or he or she may be seen as too bossy or not respectful toward a supervisor or manager. A natural follower put in a leadership role on the other hand, may experience problems in being assertive enough to lead the team through proper delegation.

Each team player should know his or her role and how his or her job fits in with the others. No matter what office politics are occurring, each team member must do his or her part. If each person on the team makes a point to treat each member of the team with respect no matter what personal matters or matters of office politics are between them, they can still operate as team players working to get the job done.

What is ERP (Enterprise Resource Planning)?

2011-06-02T04:48:00.000-07:00

There are many different systems in a large company's "back office," including planning, manufacturing, distribution, shipping, and accounting. Enterprise resource planning (ERP) is a system that integrates all of these functions into a single system, designed to serve the needs of each different department within the enterprise. ERP is more of a methodology than a piece of software, although it does incorporate several software applications, brought together under a single, integrated interface.

An ERP system spans multiple departments in a corporation, and in some cases an ERP will also transcend the corporate boundary to incorporate systems of partners and suppliers as well, to bring in additional functions like supply chainmanagement. Because it is so vast and all-encompassing, the ERP system goes far beyond being just a simple piece of software. Each implementation is unique and is designed to correspond to the implementer's various business processes. An ERP implementation can cost millions of dollars to create, and may take several years to complete.

An ERP system likely represents a company's largest IT investment, so some companies prefer to implement ERP in a more incremental fashion rather than all at once. Some ERP vendors provide modular software units together with a unified interface to allow for this gradual approach.

Regardless of how a company approaches it, ERP is sure to bring significant changes to how a company does business. It tinkers with the workflows, and alters long-standing processes. Companies often meet with resistance on the part of employees who are reluctant to let go of their proven methods. Employees may also fear for their jobs; since ERP makes such radical changes to business processes, it's not unusual for job descriptions to change or be eliminated altogether.

Once implemented however, the ERP system brings tremendous advantages. Because all systems are joined together, all departments can more easily share information. The workflow that takes place between departments can become much more automated, and ultimately, customers are better served because the individual using the customer-facing applications will have access to every bit of information regarding each relevant process. For example, someone in sales would easily be able to log into a single system to determine the status of a customer order that is still in manufacturing. All this comes at a cost though; training costs are high because employees must not only learn how to use new software, they must also learn new processes.

There are many reasons a company undertakes an ERP implementation. The ERP system integrates information, such as order information and financial data. It can speed up the manufacturing process by automating processes and workflow, and as a result, it also reduces the need to carry large inventories. Although the up-front costs may be enough to give the CFOnightmares, in the end, if implemented correctly, the rewards will give the company implementing the system a major competitive edge.

What is a Feasibility Study?

2011-06-02T04:46:00.001-07:00

Feasibility studies are preliminary investigations into the potential benefits associated with undertaking a specific activity or project. The main purpose of the feasibility study is to consider all factors associated with the project, and determine if the investment of time and other resources will yield a desirable result. While considered a preliminary study, it is not unusual for a feasibility study to be highly detailed.

When a business is considering a new operation or the launch of a new product, the feasibility study is a logical tool to employ before any resources are invested in the new project. One of the most important aspects of the study is to make sure that the total investment needed to successfully bring the project to completion is considered. Often, this will include addressing components such as cash reserves, labor, construction, production facilities, outsourcing, and the cost of raw materials. Only when the feasibility study has addressed the total cost of completing the project can the study progress to the next level.

As a second major component, the feasibility study will also address costs and other factors that are indirectly associated with the project. In the instance of creating a new product for sale, this second phase will look into the costs associated with reaching and cultivating a consumer base for the new product. The overall idea of these preliminary studies is to ensure that there is a reasonable understanding of what will be required to both create the new product and also successfully market the finished goods at a profit.

The utilization of a feasibility study has often assisted companies in understanding which projects to develop and which ones to abandon before investing resources in something that ultimately shows no promise of generating revenue. Taking the time to engage in a pilot or feasibility study does involve some usage of available resources, but these costs are much more readily absorbed than the larger amount that would be expended on a project that ultimately proved to be worthless.

What Is a Financial Consultant?

2011-06-02T04:45:00.000-07:00

A financial consultant, also known as a financial advisor, offers advice aboutmoney management. They offer their services to individuals and businesses. Most people come to financial consultants looking for guidance on how to reach their long term financial goals, which may include a debt management plan, investment advice and/or developing a savings plan. A business will sometimes hire a financial consultant to get advice on managing money programs for its employees.

Couples will sometimes get advice from a financial consultant around the time they are planning to expand their family. They may have questions about how to get a good mortgage rate, when to start a college fund, or when to start saving for retirement. A financial consultant can offer guidance in all of these areas.

Corporations also sometimes need assistance in dealing with financial challenges. A business may turn to a financial consultant for help with budgeting issues, or for advice on how to manage the company's debt. Some companies will even have a financial consultant answer employees' questions about their benefits and retirement plan.

A person who is interested in becoming a financial consultant can get started by working for mortgage lenders, tax companies, or banks. This will allow them to gain valuable experience in handling loans and other financial services. They will then have a better understanding of the various finance-related issues that they will deal with, once they start their career as a financial consultant.

Most people who land a job as a financial consultant start working for a financial services orconsulting firm. This way they can gain valuable experience in their profession. Some companies will even pay for their financial consultants to become certified. This includes certificates for Financial Planning (FP), and the Member of the Society of Financial Advisors (MSFA).

Some financial consultants will eventually choose to work for themselves. They'll do this by establishing their own private consultancy. This can be a great opportunity for a financial consultant who is self-motivated. It's a chance for them to set their own hours and increase their earning potential. They can either set up their own office or work from home.

In many cases, a financial consultant who establishes a private consultancy will offer their services in one specific area. They may choose to focus on something like insurance, retirement plans, or family finances. This option can also be more lucrative for the financial planner who is a self-starter and is disciplined.

What is a White Collar Job?

2011-06-02T04:22:00.000-07:00

Although dress codes have changed significantly over the years, many jobs are still defined by the traditional work shirts worn by those who perform them. Workers who primarily perform manual labor or other hands-on work often wear blue work shirts, for example. Jobs traditionally held by women, such as teaching or secretarial work, are considered to be pink collar jobs. A white collar job is typically associated with clerical, sales or managerial occupations. The traditional dress code for such work is often a white button-down dress shirt and tie.

Back in the days when the American economy was primarily agrarian, white collar jobs accounted for less than 20% of the total workforce. Today, the number of people who hold a white collar job is closer to 60%. As technology improves in a given industry, there is often a shift from blue collar workers who service the machinery to white collar workers who supervise and manage production. A white collar job is quite often associated with management, even if the employee's actual job duties are more hands-on than supervisory.

Clerical work in an office environment is generally considered to be the ultimate definition of a white collar job. A person who holds a white collar job may still be an hourly employee like his or her blue collar counterpart, or he or she may be salaried. This often means a white collar worker has a significant number of responsibilities and a longer work week than hourly blue collar workers. A white collar job description does not always provide protection from manual labor, however. Restaurant management, generally considered a white collar job, often requires managers to perform the duties of absent workers, for example.

Other types of white collar jobs include sales, accounting, advertising or customer service. These jobs are usually considered to be career-level vocations held by degreed or highly trained workers. Although modern business dress codes now allow for other "business casual" attire, many clerical and managerial workers are still encouraged to wear actual white collars in order to present a professional appearance to potential clients or the blue collar workers they may supervise.

Is There a Difference Between Human Resources and Personnel Management?

2011-06-02T03:58:00.002-07:00

Some experts assert that there is no difference between human resources andpersonnel management. They state that the two terms can be used interchangeably, with no difference in meaning. In fact, the terms are often used interchangeably in help-wanted ads and job descriptions.

For those who recognize a difference between personnel management and human resources, the difference can be described as philosophical. Personnel management is more administrative in nature, dealing with payroll, complying withemployment law, and handling related tasks. Human resources, on the other hand, is responsible for managing a workforce as one of the primary resources that contributes to the success of an organization.

When a difference between personnel management and human resources is recognized, human resources is described as much broader in scope than personnel management. Human resources is said to incorporate and develop personnel management tasks, while seeking to create and develop teams of workers for the benefit of the organization. A primary goal of human resources is to enable employees to work to a maximum level of efficiency.

Personnel management can include administrative tasks that are both traditional and routine. It can be described as reactive, providing a response to demands and concerns as they are presented. By contrast, human resources involves ongoing strategies to manage and develop an organization's workforce. It is proactive, as it involves the continuous development of functions and policies for the purposes of improving a company’s workforce.

Personnel management is often considered an independent function of an organization. Human resource management, on the other hand, tends to be an integral part of overall company function. Personnel management is typically the sole responsibility of an organization’s personnel department. With human resources, all of an organization’s managers are often involved in some manner, and a chief goal may be to have managers of various departments develop the skills necessary to handle personnel-related tasks.

As far as motivators are concerned, personnel management typically seeks to motivate employees with such things as compensation, bonuses, rewards, and the simplification of work responsibilities. From the personnel management point of view, employee satisfaction provides the motivation necessary to improve job performance. The opposite is true of human resources. Human resource management holds that improved performance leads to employee satisfaction. With human resources, work groups, effective strategies for meeting challenges, and job creativity are seen as the primary motivators.

When looking for a job in personnel management or human resources, it is important to realize that many companies use the terms interchangeably. If you are offered a job as a personnel manager, you may be required to perform the same duties as a human resource manager, and vice versa. In some companies, a distinction is made, but the difference is very subtle.

Is There a Difference Between Human Resources and Personnel Management?

2011-06-02T03:58:00.000-07:00

When looking for a job in personnel management or human resources, it is important to realize that many companies use the terms interchangeably. If you are offered a job as a personnelmanager, you may be required to perform the same duties as a human resource manager, and vice versa. In some companies, a distinction is made, but the difference is very subtle.

What is eBusiness ?

2011-06-02T03:44:00.000-07:00

Ebusiness is a term used to describe businesses run on the Internet, or utilizing Internet technologies to improve the productivity or profitability of a business. In a more general sense, the term may be used to describe any form of electronic business —- that is to say, any business which utilizes a computer. This usage is somewhat archaic, however, and in most contexts ebusiness refers exclusively to Internet businesses.

The most common implementation of ebusiness is as an additional, or in some cases primary, storefront. By selling products and services online, an ebusiness is able to reach a much wider consumer base than any traditional brick-and-mortarstore could ever hope for. This function of ebusiness is referred to as ecommerce, and the terms are occasionally used interchangeably.

An ebusiness may also use the Internet to acquire wholesale products or supplies for in-house production. This facet of ebusiness is sometimes referred to as eprocurement, and may offer businesses the opportunity to cut their costs dramatically. Even many ebusinesses which operate without an electronic storefront now use eprocurement as a way to better track and manage their purchasing.

In addition to buying and selling products, ebusiness may also handle other traditional business aspects. The use of electronic chat as a form of technical and customer support is an excellent example of this. An ebusiness which uses chat to supplement its traditional phone support finds a system which saves incredible amounts of time while providing opportunities unavailable through traditional support. By using virtual computer systems, for example, technical support operators can remotely access a customer's computer and assist them in correcting a problem. And with the download of a small program, all pertinent information about the hardware and software specifications for a user's computer may be relayed to the support operator directly, without having to walk a customer through personally collecting the data.

Using email and private websites as a method for dispensing internal memos and white sheets is another use of the Internet by ebusiness. Rather than producing time-intensive and costly physical copies for each employee, a central server or email list can serve as an efficient method for distributing necessary information.

In the past few years, virtually all businesses have become, to some degree or another, an ebusiness. The pervasiveness of Internet technology, readily available solutions, and the repeatedly demonstrated benefits of electronic technology have made ebusiness the obvious path. This trend continues with new technologies, such as Internet-enabled cell phones andPDAs, and the trend of ebusiness saturation will most likely continue for some time.

What is a Business Risk?

2011-06-02T03:35:00.000-07:00

A business risk is a circumstance or factor that may have a negative impact on the operation or profitability of a given company. Sometimes referred to as company risk, a business risk can be the result of internal conditions, as well as some external factors that may be evident in the wider business community.

When it comes to outside factors that can create an element of business risk, one of the most predominant risks is that of a change in demand for the goods and services produced by the company. If the change is a positive one, and the demand for the offerings of the company increase, the amount of risk is decreased a great deal. However, if consumer demand for the offerings decreases, either due to loss of business to competitors or a change in general economic conditions, the amount of risk involved to investors will increase significantly. When a company’s risk factor is considered to be increased due to outside factors that are beyond the control of the company to correct, chances of attracting new investors is severely limited.

Internal factors may also result in the development of significant business risk for the investor. Often, these are factors that can be identified and corrected. If flagging sales can be attributed to an ineffectual marketing effort or a sales force that is not performing up to expectations, making changes in the marketing approach or restructuring the sales effort will often result in minimizing the perception of business risk on the part of potential investors. The same is true if a company’s manufacturing facilities are not operating at optimum efficiency. Revamping the operational structure of the plants and facilities will decrease the element of business risk and result in higher profits at the same level of production and sales, which will in turn make the company more attractive to potential investors.

In general, any investor will consider the relationship of a company’s securities and the business risk associated with the company before choosing to invest in the future of the corporation. While there is an element of business risk associated with any corporate operation, proper management will result in creating a balance between assets and securities that will keep the degree of business risk attractive to individuals and entities that consider investing funds into the operation.

What is Budgeting?

2011-06-01T23:52:00.000-07:00

Budgeting in a business sense is the planned allocation of available funds to each department within a company. Budgeting allows executives to control overspending in less productive areas and put more company assets into areas which generate significant income or good public relations. Budgeting is usually handled during meetings with accountants, financial experts and representatives from each department affected by the budgeting.

In a personal financing sense, budgeting can mean estimating monthly living expenses based on previous bills and wages. If your monthly income is a steady $3000, for example, you can subtract all of your known monthly bills from that figure even before they arrive. Some bills can be estimated and subtracted from the original income figure. The remaining balance after fixed expenses now becomes your household budget. Instead of assigning dollar amounts for sundries such as groceries, entertainment, gas and clothing, budgeting allows you to use percentages instead.

The key to successful budgeting is both flexibility and inflexibility. Certain expenses are fixed, so payment of those bills should be an inflexible element. Nothing is more important than paying those particular bills in full. In business, departments need to know the absolute ceiling on spending. Budgeting works best when very few exceptions are made to the upper limits. The idea of fiscal responsibility is to form a workable budget and stick to it as best as possible.

Budgeting also requires an element of flexibility. It isn't always possible to assign a fixed dollar amount on a project in January and expect the budget to remain stable in July. There are always unexpected events which can drastically change the priorities of a company or an individual. Without flexible budgeting, money allocated for one purpose could not be reallocated during a fiscal emergency. An unexpected drop in sales revenue in March can affect the budgeting plans in November, so accountants and financial officers need to adjust their figures regularly.

When economic times are good, many people become lax about personal budgeting. As long as there is more money coming in than going out, all is well. But those who learn to establish a workable budget and keep within it during the lean times often survive major financial crises better than those who don't. Financial discipline can spell the difference between weathering the storm and declaring bankruptcy.