Business Model: Pandora Jewellery

Pandora Jewellery with its logo statement “Unforgettable moments” displays a distinctive brand offering and a distinctive product range. Undoubtedly Pandora is one of the worlds’ recognised jewellery brands. A key reason for this success is the business concept that allows customers to design her article in unique, personalised and individualised style; this concept finds expression in its business model.

Founded in Copenhagen Denmark in 1982 by jewellery artist Per Enevoldsen and his wife Winnie in modest manner, Pandora (www.pandora.net) sells more than 6 billion Danish Kroner worth of jewellery pieces including charms, bracelets, rings, earrings, necklaces, pendants et cetera in exquisite designs. More than 10,000 outlets in about 65 countries cater to the sophisticated needs of women who love jewellery that tell a story. A work force of 5,300 people participates in this colossal and global enterprise guided by Allan Heighton Chairman of Board of Directors and Bjorn Gulden CEO and Henrik Holmark CFO.

Business Model

Pandora operates under a vertically integrated business model built literally and meaningfully around a forward looking pair of mission that offshoot from an ambitious yet achievable vision:

Vision: “to become the world’s most recognised jewellery brand”

Mission: 1. Offer women across the world a universe of high quality, hand-finished, modern and genuine jewellery products at affordable prices.

2. Develop jewellery portfolio in keeping with core values of affordable luxury, contemporary design and personal storytelling

Predictably, the business model speaks of the logic of a business in terms of creating value, delivering value and capturing value. Let us see how the business model of Pandora stands on these limbs.

Creating Value

Primary focus on creating value is design and product quality parameters. The business concept that consumer is allowed to morph her own design is the integral part woven into the system. This gives rise to expression of individualised and personalised product design cherished by the buyers. Nevertheless, pre-designed in-house jewellery articles continue to be the main stay of the product portfolio. Strict quality standards are enforced so that articles coming out of the manufacturing facilities chiefly located in Thailand conform to spotless product quality.

Delivering Value

Elements framed in connection with delivering value are shown below:

1. Product offering of charms, bracelets, rings, earrings, necklaces, pendants and watches are packaged into the business motto of unforgettable moments, so that women who wear a piece of Pandora has lingering thoughts of the one she has purchased

2. Broadening of jewellery portfolio through specialised collections. Some of these collections are noteworthy: Compose, LovePods and Liquid Silver launched in 2007, 2008 and 2009 respectively. The company envisages to launch potential collections captioned Moments and Stories both in existing and new markets shortly

3. Brand perception and promotion are finely balanced resulting in what we call as “brand consistency” that ultimately leads to customer loyalty and repeat purchases

4. Sales outlets either using franchises or direct operations are established in delivering the products. Out of these about 700 are termed as “concept shops” that account for about 43% of sales volume

5. Expansion of Pandora product range in existing and selected markets involves branded points of sale with a view to strengthen the perception of the brand by customers as well as to permit wide array of Pandora pieces

6. Expansion of Pandora products in new markets is tackled either serving them from existing outlets from nearby areas or setting-up branded sales outlets. Although most of these are to be directly operated, franchises would also be considered

7. Finally, customer loyalty is the ultimate component in the business model. Attracting and retaining customers takes place in multiple ways. Pandora Club and social network such as Facebook are chief among these methods.

Capturing Value

Revenue generation from operation has the following highlights:

1. Branded distribution is emphasised, consequently as per 2012 first quarter (1Q12) interim financial statement branded distribution accounts for three fourths of sales revenue

2. Direct distribution either using franchises or own operation is given pride of place; the figure of 96% of sales emanating from direct distribution in 1Q12 lends credence to this fact

3. A healthy net profit ratio is a must; for 1Q12 revenue is 1,424 million Danish Kroner and net profit is about 338 million Danish Kroner.

Integration

The business model of Pandora is integrated properly by linking with strategy and tactics. The company reports that feedback from major markets confirms that the strategy adopted by them is working successfully. Moreover, the recent stock re-balance in USA and UK as a tactical measure proves that business model allows leeway in handling operational issues and market challenges in cost effective manner.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

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Business Model Connects Strategy with Tactics

The notion that business model is a stand alone concept was widely accepted in business for quite sometime. Originally founded by Peter F Drucker, business model gained currency with the dot com revolution. Like the dotcom it faded out of fashion soon. Changes that shook technology, economy, social mobility and the way business goes about in the last decade necessitated a second coming of business model. This time it was accompanied with quantum shift in analysis. Gone are the days when business model was treated in isolation. Researchers and practitioners have now begun to spot an integration between strategy and tactics.

What is Business Strategy?

Every business needs a unique proposition, be it a product or service to be offered to the market. Such a proposition must create and sustain value for the business and those elements connected with it. More than that, this proposition must give a distinct and discernible advantage for the business as against its competitors. Sustaining this advantage is a bounden duty of a business that should make every stratagem in order to keep it primary position in the pecking order. That involves two types of actions. One relates to defence and the other relates to attack. In commercial sense the former is developing ability to tide over any adverse eventuality. Attack on the other hand is framing a road map in translating business strategy into practical measures by way of designing a business model.

What a Business Model does?

To answer this question , let me cherry pick three definitions of business model found in academic writings. To begin with look at what Hamel ( 2000 ) sees a business model; it is “ a business concept that has been put into practice”. What is implied is that a strategy of a business is put into practical terms by way of a business model. Secondly, the form of business model and what it does is succinctly stated by Shafer et al (2005) when the authors pen “ We define a business model as representation of a firm’s underlying core logic and strategic choices for creating and capturing value within a value network”. We have got a working definition of the way business model looks like. But wait a minute: what about delivery of value? Osterwalder (2009) has the answer when he writes: “A business model describes the rationale of how an organization creates, delivers, and captures value”.

Now we have the full spectrum of what a business does. It is about time to find out how the model connects with strategy and tactics. In a pioneering research work titled “From Strategy to Business Models and to Tactics” authors Ramon Casadesus-Masanell and Joan Eric Ricart explain in detail about how business model is integrated with strategy and success. Additional reporting by them in recent article tiled “ How to Design a Winning Business Model” (Harvard Business Review Jan-Feb 2011) continues the trend of expositing fundamental theory of business model as the logic of the company and by implementing strategy a business makes choices and face the consequences arising therefrom. They mention choices on policy, asset and governance. They also forecast consequences that are classified as rigid or flexible. The authors turn to the auto industry for an analogy: Strategy is designing and building the car, the business model is the car, and tactics are how one drives the car. By this time we have catapulted into the area of tactics

Business Tactics fill the Rest

These are steps a business take in order to implement the business model. A pre-explanation of how the business will re-act in a given situation could be easily gained from a cursory glance on a business model. In addition to planned tactics a business model allows leeway for the line managers to adopt ad-hoc measures in keeping with over-all thrust of the strategy. These measures could range from non-repetitive tactics, quick-fixes or actions made out of the gut feeling.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Key Differences between Business Strategy and Tactics

Most of you know the differences between business strategy and business tactics. But when you are asked to state the differences you generally fumble for suitable words and phrases. Maybe phrases such as “long and short term” and “high and low stuff” are often muttered. But not much is followed thereafter. In this blog I elaborate key differences between business strategy and business tactics for your benefit.

Business Strategy

1. Business strategy is defined as “a well thought out long term plan incorporating chosen methods, moves or a series of maneuverers chalked out by senior managers for obtaining a set of specific objectives of a business”. This definition characterises strategy as long-term, multi-dimensional, complex, and high-flown and having huge impact on business performance

2. Analysts consider strategy as the thinking part of the business process driven by the vision of the stakeholders

3. Although static in nature, strategy gives direction and sense of purpose in movement towards achieving business objectives

4. Value optimization is the anchor on which strategy is fastened; by this, business seeks best possible benefits in a sustainable manner and over a long-term span

5. Integration is the means whereby strategy connects various competing and complementary elements within a business. Like an alchemist, corporate management tries to drive the best mix, blend or configuration of resources and capabilities of business. In sum, strategy fuses many parts together to form a meaningful whole with a view to achieve set goals. For example, a business that has trained human resource and has identified a niche market could use a perfect configuration to get optimum results from an opportunity

6. As I said earlier strategy is for long –term and by nature static. This theme can be further laboured to see a nuance in terms of how a business responds to changes. You cannot easily adjust strategy to changes that are taking place in the market on a day-to-day basis. Nether strategy allows you to re-act to each change in a short time. Factoring market movements, alteration in consumer preferences and shift of business cycle into strategy takes quite some time. This part is better left to be handled by tactics as explained below.

Business Tactics

1. Business tactics are defined as ”specific moves, manoeuvres and actions taken in isolation or as in a series by line managers in order to move from one milepost to another in the pursuit of operationalizing strategy”. By this definition it is clear that tactics are short-term, linear, and single, with localised focus and having fairly limited impact on business performance

2. It is the action part of the business plan process and driven by mission related to a particular set of circumstances

3. Tactics are in a state of constant of flux keeping in line with changes taking place in the environment; these symbolise movement towards goals and mileposts within business objectives

4. Value maximization is the anchor on which tactics are knotted, by this, business seeks best possible benefits in the short-term, and so that trend curve of business success never falters

5. Decomposition is the means whereby tactics dissect a single part from the whole strategy that needs correction or adjustment. In other words, tactics allow you to excise a part from the whole plan, work on it and re-fix without upsetting the overall gist of the strategy. An apt example is the pricing policy adopted in a business. When an existing old customer comes with a special order for a large quantity of a popular product tactics allow you to consider a special discount in addition to the usual ones.

6. Tactics are by nature short-term affairs that function in consonance with all-inclusive strategic policy, but tweak it each time a business faces an issue or snag. Nobody can keep a treasure trove of tactics that could be applied to, each time an unforeseen consequence slaps on the face of business. Each time you face a crisis situation you come out with a tactic that takes care of it adequately. Admittedly, tactics are developed on the spur of the moment. It does not mean planning tactics is not necessary in a business though. If you envisage how a situation could unfold, you can develop the wherewithal to meet it. What is in essence is that you have to quickly adjust to changing business environment and the consequences that arise in its wake? For this purpose a line manager who has an uncanny ability to use a blend of planned and ad-hoc measures with a view to tide over a difficult and perhaps desperate situation is an excellent tactician.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Business Model: BNP Paribas Private Banking

Private banking deals with financial advice and management of money, investment and assets belonging to upper affluent, high net worth individuals (HNWI) and ultra-high net worth individuals (UHNWI). These clients may be wealthy individuals or big corporates. BNP Paribas, a Paris based bank with a successful private banking arm has been voted as seventh best private bank in global ranking. It continues to savour business success as the number one private bank in Eurozone. This laudable success is traced back to the business model that the bank has rolled out in many countries.

BNP Paribas Private Banking is one of the largest in the continent with a portfolio of Euro 255 billion in client assets spread in about 30 countries. France alone accounts for nearly 40 % of its client assets which is closely followed by a whopping 35 % in Europe - Off-shore- Middle –East and Latin America segment. Asia comes third with a 12% share.

Business Model

BNP Paribas has introduced an effective business model interwoven with four core concepts: value proposition, segmentation, leverage and synergy.

1. Value Proposition

Understanding the asset & liability base of client is the first limb in value proposition that takes it to next logical step of clarifying what the client expects or requires from the bank. Third step is to determine jointly with the client an appropriate long-term asset allocation model as well as a suitable investment holding structure. Once it is done, the agreed upon strategy is put through the works. To do that business model dictates the selection of the right products and securities. Regular review of the investment portfolio is the final limb that seeks to adjust the portfolio in terms of market evolution and changing client needs

2. Segmentation

Bringing in a remarkable focus and approach on client segmentation BNP Paribas has identified three client groups who are described as upper affluent, high net worth individuals (HNWI) and ultra-high net worth individuals (UHNWI). Each segmented group is serviced by strategy fine-tuned as per their predilection and personal needs. For example, in the HNWI segment, the focus is on net new assets together with general return on existing client assets. Whereas UHNWI gets further tweaked focus and approach; in their case absolute return is accompanied with attention on net new assets. Moreover, each segment is afforded with different commercial approaches. Upper affluent gets standardised ones that are in store, while the UHNWI is showered with tailor made innovative solutions

3. Leverage

Two mutually exclusive sub-models are displayed under leverage. A stand-alone model is employed in regions such as China, India, South East Asia and Latin America while a joint service model with inputs from sister entities within the BNP Paribas umbrella such as Corporate Investment Bank is offered to clients in Middle-East and Hong Kong segment. This serves two goals: one is that it leverages specialised services of different arms of BNP Paribas group in product delivery; the other is that this leads to corporate synergy within the group resources

4. Synergy

Harnessing significant synergies within BNP Paribas group resources is a key objective enmeshing well with the concept of leverage stated above. Corporate & Investment Banking and Asset Management & Services are two specialised entities that are identified in the business model as generators of synergy in terms of product offering and operationalization of customer mandates in private banking. Corporate finance, export project, structured finance and cash management from Corporate & Investment Banking arm along with asset management, Insurance and real estate services from Asset Management & Services division are pinpointed to contribute towards group synergy. Ostensibly, the linking pins between these two arms continue to be the concepts of client referrals, cross selling and platform sharing that exist and perhaps encouraged by the business model.

So the success story of BNP Paribas Private Banking continues. Would other private bankers take not?

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Deductive Reasoning in Business Research

In the process of doing business research, you will invariably be confronted with the choice of using the right approach of reasoning. There are two such approaches: Deductive and Inductive. In this blog post let me explain the deductive approach of reasoning.

Deductive Approach

Deductive approach begins from general perspective and ends in specifics. In deductive approach a business researcher uses formal logic where he states the problem along with possible causes. Afterwards he searches for rules, norms, principles, parameters that function as theoretical premises in guiding him toward his findings. He then turns to the observations he has made and/or phenomena that he has seen while considering the problem. After analysing these he finally seeks whether there is a connection between his findings and the chosen theory. At this moment he can opt for either of two models:

1. If… Then Model: This model is selected where the business researcher can state confidently that if a particular problem occurs in a manner then it is due to a particular premise. For example, if there is employee absenteeism then there is breakdown of motivation. The underlying theme in this model is that if we accept the premises are true, the observations/phenomena are objectively recorded and the argument led is sound then deductive reasoning enables us to conform the theoretical premises

2. Yes or No Model: In this model the theory and expected consequences are matched. Theory remains sacrosanct and expected consequences can vary. At a given moment if the observations and expected outputs are one and the same it proves the theory. On the other hand, if observations are dissimilar to the expected outputs it does not prove the theory forcing the business researcher to begin his enquiry afresh.

Ostensibly deductive approach of reasoning prods the business researcher to travel in a matrix of theory - hypothesis – observation – conformation as if he is stepping out from top to down or falling from cliff to valley. Perhaps due to this form of southerly movement analysts describe deductive reasoning as “Top Down “or Water Fall” approach.

Choice

Professor Gunapala Nanayakkara, a management guru, educator and researcher states that deductive approach of reasoning is applicable to phenomena that are sufficiently documented and a substantial amount of knowledge already exists. In his opinion deductive approach may start from known realities about which facts exist.

Therefore deductive approach can be effectively employed in most if not all cases of business research. Nevertheless, in the business world of risk and uncertainty it may be a good thing to look into merits and demerits of the alternative approach of inductive reasoning as well. Let me come back on this matter in another blog post.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

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How to Create Your Business Concept

A business concept encompasses every business activity undertaken by an enterprise in creating value for customers, suppliers and other stakeholders. Therefore, business concept extend its arch from manufacturing a product to marketing it successfully in order to amass revenue; in similar vein business concept drives every functional area in a business to co-ordinate activities so that goals and objectives are achieved in an optimal fashion. Creating a business concept is an easy task if you adopt a step-by-step approach explained below:

1. Concept Initiation: Firstly, prepare the groundwork by stipulating your purpose and objectives in setting up a concept. Review both internal and external environment and look for clues as to how you can make progress, fix a problem and enhance your value chain. Assume you wish to maximize revenue by introducing a new product. Just check out whether it is an original one, a substitute for an existing product, improvement over what you already have in line or adaptation of a competitor’s product or just a re-make of a common item

2. Concept Generation: Get contribution from your staff, colleagues as regards to the findings or fine-tuning of concepts. Teamwork is better; you can invite participants to put it in writing or just allow them to think out loud. A brainstorm is a better way of garnering new concepts or new twists to a concept that is already known. Yet there is a caveat: never interrupt, rush to criticise neither scurry to cut it down. Generation of ideas could take place in two forms: in-box solutions that have had previous history of successful implementations or out-of-box solutions that originate with parameters un-known or not tested before. More is merrier when it comes to concept generation, as you have a wide selection to choose from

3. Concept Evaluation: The maxim is that every subjective or objective matter can be evaluated by setting norms and specifications. Therefore, concept evaluation cannot be an exception. In evaluating concepts, you go in quick steps through screening, scoring and testing processes. As you begin to screen, most, if not all, concepts would fall on the way side. If there is no viable option you have to brainstorm once again or chose an external adviser. If you have concepts worthy of further analysis you have to apply a scoring system in consultation with your team members. One such scoring system that is widely used is Pugh Matrix. It is an evaluation tool, where you presume a base case with score of 5 and rank the new concepts introduced by your team on the scale 1-5-9. Any concept that is worse than the base case is ticked 1, concepts equal to base case is marked 5 and the ones that are better than base case are scored 9. Thereafter, concepts with the score of 9 are zeroed in for preliminary testing. Once again, using objective standards, a dry test must be carried out so that you cherry pick about two to three concepts

4. Concept Selection: Hard thinking, minute analysis along with “what – if “scenario casts are made so that the chosen concepts could be put through baptism of fire. At this moment, you have to make a trade-off between internal capability and external opportunity, objective standards and subjective demands, theory and practice so that you strike a via-media. The concept that has the best line of fit is generally selected for further development

5. Concept Development: A task force is named and nominated to develop the selected concept. The members of the task force would be briefed in all areas of development including technical, technological, human side, operations, marketing and last but not least financial considerations. On the up-stream, concept development takes into account objectives, purposes and specifications; on the downstream it must address the needs of the ultimate users who seek value for money

6. Concept Validation: After developing a concept in full stream it must be subjected to internal and external validation. Internally it must conform to corporate belief system, shared culture and the obvious necessity to conform to internal standards covering sustainable profit for the business. External validation is via industry standards, B2B ethics, customer perception of quality and durability and overall market acceptance. A product concept might have made waves on the drawing board. Nonetheless it could prove to be a laggard in the market. Recent initial public issue of the Facebook suffered this fate. Even though the market is willing to absorb there is no internal validation of sound financial proof available. Technology guys have a red book on separating chaff from the grain: proof of concept

7. Concept Institution: By this time the business concept is created; it is understood and ready for installation. Lovingly it is named may be after the boss who started the ball rolling; finally it is institutionalized. In this context, the definition of concept stated by American philosopher and psychologist John Dewey may not be out of place. Just check this: “A concept is meaning sufficiently individualized to be directly grasped and readily used, and thus fixed by a word”.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

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Core Concepts in Building Business Models

Designing effective business models mandates that stakeholders of business enterprises understand the core concepts that lie beneath such models. A Business model that is built on sound concepts can take your business to the top range whereas a poorly made one spells doom.

Investopedia defines business model in plain language as “the plan implemented by a company to generate revenue and make profit from operations. The model includes the components and functions of the business, as well as the revenues it generates and the expenses it incurs”. This led business practitioners to add or subtract components to a business model at will, without ever understanding the business process and the core concepts that function as building blocks around which a business model is built.

Addressing the lack of awareness of concepts academic researchers spawned several definitions of business model incorporating a number of core concepts. Surveying the literature on business model definitions and core concepts Suvi Nenonen and Kaj Storbacka of Hanken School of Economics, Finland have published a thought provoking article titled “Business model design: conceptualizing networked value co-creation” wherein they have painstakingly analysed definitions of business model given by several academic writers and have succeeded in tracing five core concepts that form main threads in these definitions:

1. Value Creation: As a core concept, value creation ranks first in the list as most academic writers harp on this issue in one way or another. Alternate phrases such as value proposition, value design, value configuration or simply value for customers adorn in their writings. Designers of business models are reminded of the necessity to convey their customers how their firms create value in the first place

2. Earnings Logic: Resorted to by many authors, earnings logic is spelt out at varying length of details. Profit potential, revenue model, revenue logic, capture value, profit formula, return to stakeholders, transactional link to exchange partners, cost structure are chief amongst these. The fundamental aspect of making profit has never been lost on these authors

3. Value Network: Thirdly, value network is emphasised as vital concept in building and sustaining business models. This was worded differently by academic writers as: structure of value chain, partner network, value network, link to external stakeholders, transactional links to exchange providers and so on. This concept cultivates external orientation of a business and defines structure, content and governance of transactions with external actors

4. Resources & Capabilities: As juxtaposition to value network, resource & capability element prod business to look more inwardly by employing assets in a suitable manner. This concept theme is illustrated by writers in the following ways: core competency, resources, assets, processes, activities and strategy & structures of material aspects residing within a business. Capability and capacity is the bulwark on which a business is built and sustained, as does the business model itself

5. Strategic Decision: A key concept confronting designers is the framing of strategic choice within a business model. Such a choice is found in expressions in academic writings as: target market, target customers, position within value network, competitive strategy, market segmentation and others that seek to differentiate the market niche and produce products and services that could satisfy the chosen segments

6. Belief System: Even though belief system was not identified by Suvi Nenonen and Kaj Storbacka as a core concept, I trust that the degree of conviction a business has on its name and goodwill ultimately decide on the success of a business model. This particular point is stressed by H L Tikkanen et al who speak of belief system in such terms as reputational rankings, industry recipe, boundary beliefs, and product ontologies.

Muthu Ashraff

Business Adviser

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E-mail : cosmicgems@gmail.com

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Four Managerial Skills

Management researcher Robert Lee Katz identified three core skills: technical, human and conceptual abilities as vital ingredients in the management process. Yet there is something missing in this equation to make the management process seamless and successful. Read more…

Professor Gunapala Nanayakkara, a management guru, educator and researcher suggests that success in management processes requires managers and leaders to be task masters, people masters, context masters and finally masters of self. Combining these two theories let me present the following sets of managerial skills that are needed to transform men and women as effective leaders and managers in business and industry:

1. Technical Skills: Performing a given task requires that a manager must have technical skills in relation to his position. Skills do differ across the functions. Still, a manager is expected to demonstrate necessary and overall competence in areas under task management. Process, technique, technology, hands-on experience, knowledge and understanding governing the entire production or service centre are key capabilities in a typical manager’s portfolio. Task orientation is a result of the western civilization, especially American where relating to matter, materials and machinery take pride of place and where completing a mission to its exactitude is appreciated and perhaps rewarded

2. Human Skills: Unlike technical skills, managers see a different dimension in dealing with people. They breathe, and do have life, like other living creations. More than that, they have feelings, emotions, desires, aspirations and top it all every person is unique in terms of physique and mind set. Dealing with people inside organization is called “inter-personal relations” whereas relating to those outside is termed as public relation, customer relation and in such other expressions. Although handling people differ depending on their grades and positions, the least common denominator continues to be the display of human touch by an accomplished manager. From Shaolin temple to modern factories in sprawling industrial city of Shenzhen, Chinese showcase brilliant mastery in motivating people to deliver their goods exceptionally

3. Contextual Skills: Understanding the context in which you are placed is the key force that defines and derives you in arriving at a particular choice. Context can be a form like an organization, time like recession or situation like an emergency. The Arabs went on to explain it philosophically as space, time and being. Let us take the organization. If you are working for a business company your management inputs in terms of skills have to be combed for making profits and working for survival. In a public sector the context goes through a sea-change. Regularity, service orientation and the dictum “pro bono publico’ (for the public interest) demand that you fine-tune your managerial ability in the contextual perspective of public service. Quite a number of skills dominate the contextual area. Chiefly amongst these are, time management, communication, money management, leading, decision making, negotiation and trouble shooting

4. Conceptual Skills: Indians excelled in mastery of self from time immemorial. Vedas are about ten thousand years old. Hinduism as a religion must be older than that. Study of the self, led Indian society to harness the power of mind to do what was unthinkable. Rishis and Sadhus had the ability to fly from one point to another using “pushpak” (an abstract form of flying), recalling memories of past births and so on. Lord Buddha introduced the first conceptual framework in human history wherein he presented the philosophy of Buddhism. Conceptual skills need not be consigned to the realm of high stuff only. Generating ideas, developing concepts, conceptual thinking, problem solving, planning, forecasting, are some of the basic skills needed in everyday business life. Equally important is their use in family life resulting peace and harmony which finally motivates managers and leaders to do excellent jobs in their offices.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

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Clearing Confusion Surrounding Concept Documents

Many readers are confused regarding the titling of concept documents. There are three such documents: concept statement, concept note and concept paper. Each differs in terms of definition, length and the purposes intended. Using statement, note and paper interchangeably defeat the purpose.

Concept Statement

What it is?

It is a quick glance document defined as a brief verbal and/or graphical presentation made by one party to another in order to obtain approval or decision over the matter raised in such statement. Concept statement does not ordinarily exceed three pages.

What is used for?

1. Charting a course of action in business management

2. Arguing why customers be given better business terms

3. Alluding distinct advantages of doing business with collaborators

4. Clarifying purposes of a sales & promotion campaign to an Ad agency

Concept Note

What it is?

A concept note is defined as “a brief outline of a proposed research matter, submitted to management for their approval”. As regards to length, concept note ranges 3 to 6 pages excluding cover pages and/or annexures

What is used for?

1. Laying out an un-biased, objective document for the management in order to obtain approval to undertake business research

2. Stating major highlights of a proposed research project to research organizations that call for it as a preliminary document to be appraised before considering a detailed research proposal

Concept Paper

What it is?

Concept paper is defined as “a summary of information relating to a subject matter under discussion, presented in logical sequence explaining the underlying concepts and how these are inter-linked”. As an all-purpose document concept paper can be brief and precise or elaborate and in-depth, depending on the subject matter explained therein. Hence, ordinarily it runs 6 to 15 pages in length

What is used for?

It is a multi-task document that can be utilized for every conceivable business needs where a proposal needs to be prepared and presented.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/