INTUERI EXPERIENCE

  • Any cross-country trade or a global value chain (GVC) is mired by macro-economic factors, monetary and fiscal policies, legal mandates, trade pacts and regulations, taxation and international relations of the constituent countries. Any one or combination of these factors often influences a business strategy. Today business leaders are apprehensive about the growing uncertainties of these macro-factors affecting global value chains. On this premise a large white goods manufacturer felt the need to assess the supply chain of the products, analyze the macro-factors of the constituent countries and trade routes, and comment on the supply chain’s strength and vulnerabilities from an economic, political, social, and legal point of view – both as of now and for the future. They want to explore the foreign markets to help value-add and distribute its products in the South East Asian countries. This involved an assessment of the macro-economic, legal, political, social and trade related indicators in those countries and recommend a comprehensive foreign expansion strategy for the company. Research alternate trade routes with minimal risk index, costs and aligned to global value networks so as to prioritize plausible scenarios. Finally assistance in creating an International Business Cell which will plan, manage and execute the vision of foreign expansion. Providing training to members of this division on the above framework.

 

    • Evaluate the market and trade policy for a pharmaceutical company and help to improve the efficiency and effectiveness of its business processes, people and system. The organizational performance is studied with reference to parameters like sales-production coordination, forecasting and optimized production planning, wastages and lesser inventory carrying costs and Inter departmental coordination by improving inter-personal skills. It starts with understanding of executive management’s perspective of the enterprise, business strategies, description of enterprise vision and positioning followed by identification of critical issues and limitations pertaining to sales and marketing in terms of people, technology or process and the overall organizations strengths and weaknesses. This follows defining strategies and tactics for existing business growth and new business acquisition. Finally based on the strategies, envision the plan, the targets and To-Be processes with a view to adopt the best possible usage of organization strengths.

 

  • Develop a strategic plan and an one year activity plan for a private university. Advise to achieve educational excellence, ensure employability, foster inclusiveness and openness, establish Centers of Excellence that engage every School, scholarships, and research works that meet the evolving national and global needs. Develop the University’s position as a global forum for intellectual pursuit, through the proactive exchange of ideas. This will help the university to :
    • Become a renowned seat of learning to cultivate global creative worker and sustain at a time of enormous uncertainty
    • Delve deep into specific teaching and learning solution that can accelerate education progress and change pedagogical methods to better cultivate the breadth of skills that young minds need
    • Establish a track record as a creator of new and innovative products for industrial and national needs
    • Be an institute that is sought for international collaborations leading to exchange of students and faculty and joint degree programs
    • Address the new digital and interactive tool that can be integrated into the learning experience

BEHAVIORAL ECONOMICS AND DIGITAL MARKETING

‘Customer Growth’ strategy study as of today delivered by people like us from consulting firms to a client are primarily, if not solely, premised on analytics related to customer behaviour captured from customer actions related to his buying of products, of clients interest or other related or unrelated consumptions indicating his life style, correlation, association of various social, cultural, regional coalitions that he possesses, his various likes or aspirations as expressed in social media etc.

However,a part which gets so overlooked in such branding strategy, growth strategy or customer experience management strategy study is the linking of ‘Behavioural Economics’ – theories, tenets arising from the confluence of three streams of study – (i) neuroscience, (ii) psychology and (iii) economics, responsible for determining his asset (read product here) buying pattern. Laureate Richard Thaler has given this subject a formal recognition, a theoretical basis and also secured the subject a recognition from the practical world as to how to analyse human psychology producing outcomes that can be influenced or followed by the marketing people or people in money market.

This subject has already been into consideration for studies on market strategy formulation amongst companies in West particularly in the US. There are case studies outlining effective linking of Behavioural Economics postulates to Market / Customer study in corporates active in the B2C segment. Concepts as picked up from Laureate Thaler’s work such as:

  • “Endowment”
  • “Loss Aversion”
  • “Prospect Theory”
  • “Mental Accounting”,
  • “Social Preferences” and “Punishment by Customers”
  • “Decoupling Pain of Paying and Pleasure of Consumption”
  • “Self control – Planner/ Doer Self “

“Nudging”Thaler has provided both conceptual and empirical foundations by incorporating new insights from human psychology into economic analysis. This has provided consultants like us with a richer set of analytical and experimental tools for understanding and predicting human behavior and dovetaling the same to the final buying/ consumer pattern.
The above are all pointing towards neonormal contextual marketing in which analysing an individual around such psychological economical traits make the traditional contextual marketing much more customised for the individual buyer. Consequently, the limitations that today’s market analytics confront, that is restriction it has on trying to predict only from the actions customer has taken, can be overcome by getting into psychological analysis of that person and therefore making the customer acquisition strategy more effective.This stream of theory and applied science of Behavioural Finance and Behavioural Economics integrated with Marketing &Analytics from today’s Digital Marketing should be the cornerstone of a growth, branding or market strategy study.Intueri will be happy to get into further discussions and explanations on this and to provide consulting equipped with cases studies and researches on the above targetted at resultantly augmenting the profits of the corporates engaged in such businesses.

© INTUERI CONSULTING LLP 2018. All rights reserved.
Disclaimer: This is only a write up and not intended for application to any specific circumstance without seeking professional advice. Intueri disclaims all liability for any loss caused due to any such act/ omission.

CERTAIN OBSERVATIONS ON INDIA’S LINK TO WORLD GROWTH AND FACTORS OF MACRO STABILITY BASED ON ECONOMIC SURVEY 17-18 AND BUDGET 2018 ANNOUNCEMENTS

The observations set forth here are influenced by the Economic Survey 2017-18 (“ES 17-18”), some of the points captured directly from there and then assessed with respect to Intueri experience, research and solutioning for corporates.

World economy or global growth as of today is buoyant and accelerating. Indian growth in first half of 2017-18 was somewhat not synchronous to global buoyancy and decoupled from that, a situation which from second half took a turn and started becoming positive but it will be essential to foster an environment that sustains this coupling as long as the world growth is on a positive trajectory. The macroeconomic factors of India as of now indicate stability but further stability need to come from more tightening of the coupling with world trends. Acceleration of global growth should therefore encourage us to boost export and India should work out policies, reforms and create environment that encourages growth. The biggest source of upside potential will be exports as quoted by ES 17-18.

In one of the sections of the ES 17-18 it is mentioned that the State(s) which have been more effective in exports have prospered more than ones which have been solely or largely focused on within-State consumption or just inter-State trade.  This is a point which should be picked up by West Bengal(“WB”) and encourage and foster an environment of  cross border growth particularly for MSME or Agri products of WB.There need to be concerted effortsamong Governments at the Centre and the State, industrialists as well as policy makers to see how the present factors such as (i) ASEAN/Far East economic conditions, (ii) growth propensity and appetite of those countries, (iii) macro situation of international trade flow and political economics compelling countries to move more into ASEAN /SAARC /Far East countries, (iv) increased activities by all countries to boost multi/bi lateral trade or investment linkages with countries there, can be leveraged by an active and practical Act East policy helping East and/or North East States’ growth to take a long stride into export market because of their geographical, cultural, ethnical proximityto these countries  and therefore consequently make Indian economy take advantage of the world trends.

World Bank in its Global Value Chain Development Report (“GVCReport 2017”) suggested that GDP is not the sole indicator to reflect real, all encompassing nature of a country’s growth but there are other measures such as Gross Value Added (“GVA”) that need to be captured and countries playing more decisive and prominent role in Global Value Chain will show more sustainable and fundamental growth even if they are not the end producer or innovator of a product. The views of ES17-18 and GVC Report 2017 synergistically stress on the point of coupling the growth of a country more to World economy and resultantly play a very meaningful role in the Global Value Chain by enhancing export potential both through improved productivity and reduction of Non Tariff Barriers (lesser cost of doing business). In light of that emerging view on upside potential through exports and/or playing an effective role in Global Value Chain and geo political situation driving ASEAN/Far East, Eastern States viz.WB will throw up increased opportunities to industry and the Government should acknowledge that and therefore endorse it through supporting eco system .

This Budget 2018-19 did not touch upon the macro factors of the country, as of now, impending threats or uptake potential from emerging opportunities  – how to couple country’s growth more to world trend, how to protect economy against more persistently increasing oil prices (IMF predicts  12 percent higher in 2018-19),  how to protect the economy from the eventualities of a  potential asset correction (stock price correction) which may lead to sudden erosion of the  foreign capital from India, thus subjecting the macro stability, which  presently India is enjoying,  to a vey stressed condition. Hence, we suggest that there has to be a more foreign expansion or trade oriented economic and international relations based policy which can protect the country from the potential two or three adverse factors mentioned above and also in the ES 17-18.

There is a possibility that consumption may suffer due to increased interest rate as an outcome of tighter monetary policy which will be needed to combat the fiscal stress arising from higher oil prices and in such a case an economy depending solely and strongly on domestic consumption may have vulnerability. Budgetary and Industrial Policy(ies) should therefore try to mitigate or hedge against that vulnerability by bringing a strong export oriented growth policy and we feel we should encourage peninsular and border states of the country having direct linkages to the Eastern world to grow in exports and in turn secure the national cover against the risk of a probable eventuality of a decline in domestic consumption.