On Tue, Apr 10, 2012 at 11:14 AM, bc100402534 Tahreem <bc100402534@vu.edu.pk> wrote:
Solution:
Here the problem is occurring due to the conflicting priorities of each person which
is called "agency problem. The need is to minimize the agency problem. Agency
theory is the branch of financial economics that looks at conflicts of interest
between people with different interests in the same assets. This most importantly
means the conflicts between:
shareholders and managers of companies
shareholders and bond holders.
Some ways are suggested here under which could help them to solve the agency
problem
1. through training and setting proper goals
2. This conflict can be addressed by the use of debt covenants, or by providing
debt holders with a hedge against such action by the shareholders by issuing
convertible debt or debt bundled with warrants.
3. Productivity improvement. This was once described as "pushing the staff
to work harder." Most agencies are at the limit now when it comes to how
hard your staff is working. It's more effective to strip non-value-added work
out of the process; Streamline the workflow, implement new tools to
enhance communication, remove old forms and steps that were implemented
in another age.
4. Compensation and contract terms improvement from clients. This is a
great option if only you can figure out a way to make your clients pay you
more. Revisit your contracts, utilize benchmarking results, establish
performance goals and understand how to negotiate.
5. Organic growth. This is the British term for getting more work from
existing clients. It can be difficult if all you do is try to sell more of your
existing services. It is far more effective to find ways to sell Business
Building Ideas and Value-Added Services.
6. Merge or acquire. An effective way to reduce overhead or add services you
are now buying from someone else. Look around your market for a good opportunity for a cross-town merger. If done properly, this can transform an
agency.
7. Realign your brand. Focus your efforts on one category and become an
expert. By adapting a more consultative approach for your existing and new
accounts you can increase revenue to the bottom-line
8. Cut salaries and staff. This is a meat axe approach and is usually the last
resort before the door closes. If not handled correctly, the end result is often
good people leave and bad ones stay. There are some effective ways to
better align staff with your overall agency goals. If this is done correctly, it
can reenergize staff by removing deadwood.
9. Grow. Win more new business. One of the things Sanders Consulting Group
is best known for is our new business prowess. Over the years we have
taught more marketing communication people around the world more about
generating new business than anyone els
Best RegardsBS Accounting & Finance {4th Semester}Overseas Kuwait (Q8)
On Tue, Apr 10, 2012 at 7:27 PM, Sh@ist@ <zindagi.cute@gmail.com> wrote:
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Sh@ist@
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