Summary:

Developing a pricing strategy can be difficult, especially in an economic recession. Dana Baldwin, Senior Consultant with Center for Simplified Strategic Planning, Inc. believes the key is to strategically determine the pricing band, which is best for your product/service in light of current conditions . He goes on to write that pricing policy is one of the most strategic issues that a company can deal with-both for the short term and the long term as it directly influences market strategy.

To begin with, you need to determine where your products and services are positioned in your market place.  Each one of your products need to be analyzed in terms of where it is located on a spectrum from pure specialty to pure commodity. Nearly all products have characteristics of both specialty and commodity products. The challenge is to determine the behavior of the specific product or service in each market in which it competes.

Article Quote:

“Pricing can be very tricky in times like the ones we are going through currently.  Too high a price and you can lose considerable volume, customer loyalty and market share.  Too low a price could lead to diminished profits, commoditization of the brand or product/service and lower long term prospects.”

Link: http://www.cssp.com/strategicplanning/blog/?p=539

Developing an appropriate pricing policy needs to be determined in order to keep customers while not loosing potential profits. Market intelligence research should be conducted before any decisions are made about pricing and where to offer products. Pricing strategy is just one element of the business plan that needs careful attention when developing a clearly defined strategy.

For more on strategy, see http://www.performancesolutionstech.com/category/strategic-manager/

Summary:

For many years, corporate social responsibility (CRS) has been viewed by many executives as a passing fad or another source of pressure and for too long have not given it the attention it deserves. That trend is changing and many are now making CRS central to their overall strategies, helping them to creatively address key business issues. The challenge is to develop an approach that can deliver.

However, some innovative companies have managed to overcome this hurdle with smart partnering. Smart partnering focuses on key areas of impact between business and society and develops creative solutions that draw on the complementary capabilities of both to address major challenges that affect each partner. Smart partnering is emerging as one way to create value for both the business and society simultaneously, which is at the heart of corporate social responsibility.

Article Quote:

“For companies that see CSR as an opportunity to strengthen the business, the big challenge is execution. Smart partnering can provide a practical way forward.”

Link: http://www.mckinseyquarterly.com/Nonprofit/Philanthropy/Making_the_most_of_corporate_social_responsibility_2479?gp=1

Businesses developing and implementing CRS as part of the overall strategic plan create better relationships with their customers because they are viewed as a business investing in business as well as investing in society. Shared value creation is achieved through smart partnering ventures. It moves the focus of the business beyond avoiding risks or enhancing reputation, toward improving its core value creation ability by addressing major strategic issues or challenges. The advantage for society is that the focus shifts away from maintaining minimum standards, or constantly seeking funding to improve the overall quality of life, and living standards. The key is for each party to tap into the resources and expertise of the other, finding creative solutions to critical social and businesses challenges.

For more on addressing strategic issues, see http://www.performancesolutionstech.com/category/strategicplanning/