Rural Research

Rural Research
The Rural markets in India

Bottom of the pyramid- Aim for low prices, low profit margins, and high sales volumes
It is felt that getting by on razor-thin margins is the morally correct way to do business among
the poor. The idea that a billion-dollar corporation would intentionally aim for high prices and fat
margins on the backs of the world's poorest sounds callous and cutthroat. And their intuition isn't
baseless: As the bottom-of-the-pyramid concept shifted into the public eye and attracted the
criticism of the development sector, the standards for judging the impact of a venture aiming to
serve low-income consumers seemed to get a lot tougher. The term "selling to the poor" has
become almost a pejorative. Serious discussion about driving profitability and generating
competitive returns has been pushed into the recesses of the company, out of the public eye, and
it has been replaced with platitudes about "doing well by doing good."
But the reality is that high margins and very strong profitability are necessities for businesses
serving what is called D and E consumers, those in the bottom two layers of the economic
pyramid. Business cost structures in low-income markets are daunting: Operational expenses
such as distribution frequently dwarf the costs that companies face in developed markets, while
customer acquisition and retention often demand unusually intense and costly levels of
consumer engagement. And getting to scale takes a lot longer.
Companies and those that criticize their efforts are not doing D and E consumers any favors by
clinging to the low-margin philosophy, which is unable to generate economic returns that are
competitive with alternative uses of a company's capital the true benchmark of business
success. Precious few of the ventures that failed to generate such profit levels have survived,
leaving low-income consumers without access to products and services that could have improved
their lives and stimulated economic activity in poor areas.
Emerging Market opportunities
725 of India is rural- 6.38 lakhs villages- 17 % have

population above 2000.
By 2020 Indian rural market will be bigger than

South Korea and Canada and worth $577 Billion
Rural Contributes to 43% of Indian National

Income.
More than 50% of FMCG & Durable revenue comes from Rural
Rural India accounted for around 35-38% of the total mobile handset sales by 2010.
Challenges in assessing rural

India is among the largest producer of rice, pulses, F&V and Milk. It is the country with largest
percentage of population engaged in agriculture
However
Un co-ordinated logistics & infrastructure
Un co-ordinated payments & credits
Extension activities remain challenging and unviable.
Tax structure Cash management in rural India ( only 53000 bank branches are there in
rural India)
Demand Aggregation ( for most of the company, cost of demand aggregation and logistic
is very high)
Capacity building (To train people who can service citizen for the products like life
insurance of E- learning)
Results in
Poor productivity / yields
200-300% mark up in prices from farm to fork
Huge Subsidies to farmers to keep them viable at low prices
High off balance sheet transactions, fueling escalation in land prices making investment
in rural infrastructure a challenge.
MIC Services
Market Entry Studies: Profiling of rural and semi urban areas to understand the potential
consumer demand drivers and market potential to aid companies in penetrating new
markets.
Consumer/ Retailers satisfaction studies: In depth studies to understand the customer

satisfaction and potential gaps at the consumer and retailer end.
Usage and attitude studies: Extensive studies to understand the usage and consumption
patterns of the consumer in various industry verticals
Market profiling studies: Market Intervention studies to understand the potential

segmentation in the market and their demands to develop markets.
Advertisement/ communication research: Research to understand the right modes of

communication and the incumbent message for your target groups
Social Research: Indepth studies in the rural heartland to understand the

various social Turn Around and Growth Strategy
All organisations are set up with an objective to create value to the society. This necessitates
organisations to generate revenues to support all its stakeholders. However, in the rat race to
succeed,most organisations are unable to generate revenues for sustainable operations. It is
obvious that organisations cannot survive without profits/surpluses and the inability to generate
surpluses would lead to industrial sickness. Bringing such organisations back to health requires
entrepreneurial strategies.
Market Insight consultants help SMEs in their expansion and growth.We provide end to end
solutions through a business model. The details of the same as as follows:
There are 4 major stages to the model.
Diagnostics is the first step towards solving the clients problem. In order to understand the client
better, a detailed study of the organization and its various aspects is required.To help assess the
various aspects, both internal & external diagnostics is required.
Internal Diagnostics: To analyze Strength and Weakness and align differences in the
company, a detailed internal study is required. Various aspects studied here are:
Leadership,People, Relationship,Processes,Finance,Product/Pricing &Export Knowledge.
External Diagnostics:This requires a detailed study of the customers of the company, its
dealers & retailers.
In other words, we get to know the current state of the client.

After having done the diagnosis, it is now important to understand the aspiration of the client.
What is it that they are aiming at.This will include understanding their motivation & the need
that is to be fulfilled.
After having known the current state & future aspirations of the client, MIC assesses the gaps. In
order to help achieve the clients goal, bridging of these gaps is important.
This is followed by conducting an environmental analysis of the situation in order to help the
client better. Here a detailed study of the Opportunity & Threats is done.
On the basis of the findings of the Opportunity & Threats models, gap closure is done in order to
achieve our Goal.
Finally complete Decision & Strategy Support is done by visits by senior consultants followed
by the below mentioned steps:
The above mentioned process is carried out by senior consultants of Market Insight Consultants.
The consultants start out by interviewing the Management & Senior personnel in order to gather
the necessary information.
An audit of the clients premises is carried out in order to complete the study.
Study of the balance sheet of the company is required in order to know the current position of the
client.
Market Insight Consultants & the client will jointly work to come up with the OTWS Model.
This helps us to further understand the areas that require attention & how will be solve the gaps,
to reach the goal.
The last step is the preparation of the report & then it is submitted to the client to share the
findings.
and demographic factors affecting development
Innovation
This century has been full of innovation. New technologies, new products, new services,
whole new industries have emerged. Yet the call for innovation in business has never
been more intense. Innovation is the need of the hour for-:
For economic growth
This is the most often cited reason for needing innovation. Innovation is the route to
economic growth. Industries are maturing. Products are maturing. Innovation is the
creation and transformation of new knowledge into new products, processes, or services
that meet market needs. As such, innovation creates new businesses and is the
fundamental source of growth in business and industry
For competitive advantage
Companies that use and act on their insights get a jump on the competition. They are the
competition. They leave behind those that are lulled by the security of strong, enduring
economic performance and the conventional corporate wisdom that stays the course.
Often, the leader loses. The battle is swift; it's too late to respond. This is not a theory. It
is fact.
Because cost-cutting is not enough anymore
Profit = revenue cost. The profit equation shows that for profits to grow, or even be
maintained, you've got to manage cost, even reduce it. It is the most obvious way to grow
profits. And companies have been doing this: with technology; by downsizing; through
re-engineering. While U.S. companies have been very good at squeezing the last ounces
of efficiency out of their organizations and work processes, and while companies have
pared their costs to the bone, many are looking anorexic. These practices simply allow
you to stay in the game, to stay in the business. They alone are not enough.
Desire for higher business revenues
On the same side of the profit equation as cost is the revenue term. It is the most often
neglected term, but it takes only a little insight to see that profits can be increased by
increasing revenue. With costs reaching bottom and few opportunities to reduce them
further, companies can turn to increasing sales. Marketing innovations come to mind here
and do well to sell more of what you have to sell. But new products and services bring in
new revenues too. Innovation sells.
For a more constant flow of innovation
For some companies, it's feast or famine. They find themselves either scooping up the
wealth of new ideas turned into new products or waiting for one to arrive. Or pouring
money into existing operations with no visible new output. Or cutting back so hard that
output is a trickle. Innovation and the deliberate systematic management thereof can even
out the surges and slumps by providing a continuous stream of ideas for the innovation
pipeline.
For better returns
Innovations themselves not only break the mold (i.e., are truly novel, different, never
done before), but also yield far better returns than ordinary business ventures. Market
Insight Consultants has conducted empirical research along with national manufacturing
competitiveness council and IIM Bangalore and proved that innovation is the source
competitiveness of companies as it increases productivity and supply chain
competitiveness.
Marketing Strategy and Development
Strategy development, also known as strategic

planning, is fundamental to creating and running a
business. Its a game plan that sets specific goals and
objectives but like a game plan, it is capable of being
changed in response to shifting market dynamics.
MIC Services
MIC provides end to end solutions to the corporate in
developing strategies to win in a complex and changing market. The strategic plan
is based upon the totality of the marketing process. Broadly the market strategies
developed are
Integrated Marketing strategies
S-T-P Marketing Strategies
Integrated Marketing strategies include:Entry Strategy
Alone
With JV
Through merger / acquisition
Only trade through distributors
Product Strategy
Product Range and broad specifications
Pricing along the value chain till the point of consumption
Product Differentiation
Non product Differentiation
Distribution Strategy
Relative benefit of alternate distribution modes
Mapping of available distribution options
Suggestions
Promotion Strategy
Promotion need and disposition
Broad cost benefit mapping of alternate medium
Suggestions
Risk Management
Assessment of risks in implementation
Selection of best fit strategic option
Revenue Modelling
Assessment of fixed costs
Assessment of variable costs
Assessment of volumes required for break even
Selection of best fit strategic option
S-T-P Marketing Strategy include

Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target
market into subsets of consumers who have common needs (and/or common
desires) as well as common applications for the relevant goods and services.
Depending on the specific characteristics of the product, these subsets may be
divided by criteria such as age and gender, or other distinctions, such as location or
income. MICs segmentation strategy includes:
Where to play
What to produce
What volumes to hit
Targeting
Targeting is the selection of potential customers to whom a business wishes to sell
products or services. MIC targeting strategy involves segmenting the market,
choosing which segments of the market are appropriate, and determining the
products that will be offered in each segment. A business offering multiple products
can determine if the various segments should receive one generic product (such as
in mass marketing), or if each segment should receive a customized product (multisegment), based upon the market's diversity, maturity, the level of competition and
the volume of sales expected.
Positioning
Under positioning strategy, MIC assures that the consumer have a clear idea of
what their brand stands for in the product catgory, and that a brand cannot be
sharply and distincty positioned if it tries to be everything to everyone. Such
positioning is produced only through a brands marketing communications, although
its distribution, pricing, packaging and actual product features can also play major
roles. It is often said that positioning is not what you do to the product, but what
you do to the consumers mind through various communications.
Click here for MIC Services
Management Horizons in
Changing Economic
Environment: Visions and
Challenges
THE VALUE MEASUREMENT SYSTEM OF INTERNAL
MANAGEMENT DECISION POINT O. STRIPEIKIS (Lithuania)
INNOVATION MANAGEMET N MODELS IN SMALL BUSINESS
COMPANIES
I. BERZKALNE (Latvia)
APPLICATION OF INNOVATIVE COMPANY VALUATION METHODS
IN LATVIA: ANALYSIS AND POSSIBILITIES FOR IMPROVEMENT
BUSINESS ENVIRONMENTAL FACTORS IMPACT ON THE LOGIST
ICS OUTSOURCING MANAGEMENT
A. ERGLIS (Latvia)
SOCIAL NETWORK ELEMENTS (GROUNDSWELL) AND
PRINCIPLE S IN STRATEGIC PLANNING INSTEAD OF
MANAGERS INTUITION UNDER ASYMETRIC INFORMATION
CONDITIONS IN SERVICE ORGANIZATION
SUPPLY CHAIN CHALLENGES AND THEIR IMPLICATIONS FOR
BUSINESS STRATEGIES: A SMALL AND MEDIUM SIZE
ENTERPRISES PERSPECTIVE IN LITHUANIA
K. MUCENIEKS (Latvia)
THE METHODOLOGY FOR THE IMPLEMENTATION OF
CORPORATE REORGANIZATIONS
A. LASKAI (Hungary)
FINANCIAL PERFORMANCE OF THE INTERNATIONAL BUSINESS
PLANNING: IN THEORY OF KRUGMAN'S NEG AND IN THEORY OF
THE APPLIED-ECONOMICS (BUSINESS-MANAGEMENT)
SCHOOLS
A. PA
RAIT
, M. KRAKAUSKAS (Lithuania)
DEVELOPMENT OF NEW CLEAN TECHNOLOGIES
IMPLEMENTATIO
N METHODS IN THE
LITHUANIAN ELECTRICITY GENERATION SECTOR
19:30 VMU RECTORS RECEPTION INCLUDING DINNER AN
D MUSIC OPUSES
(VMU Faculty of Catholic Theology, Address: Gimnazi
jos St. 7)
September 26, Thursday

PARALLEL SESSIONS
SECTION 2:
Economic Environment for Business Organization
(Hotel Park Inn by Radisson Kaunas, Hall
Zeta
)
Chairpersons:
prof. K. Leviauskait
, assoc. prof. J. Kalendien
14:30 16:00 G. PAULAUSKAIT
, A. KAMANDULIEN
(Lithuania)
ASSESSMENT OF ECONOMIC AND SOCIAL IMPACT OF MINIMUM
WAGE ON INDIVIDUALS
E. ZUBULE (Latvia)
EVALUATION OPTIONS OF OPERATIONAL EFFICIENCY OF PU
BLIC SECTOR
J. VARANAUSKIEN
, K. LEVIAUSKAIT

(Lithuania)
MACROECONOMIC FACTORS INFLUENCE ON MORTGAGE
INTERE
ST RATE TYPE DEMAND
A. JAUNZEMS (Latvia)
THE MODIFIED LANCASTERIAN DEMAND MODEL
M. DAPKUS (Lithuania)
HYPOTHESIS OF MACROECONOMIC LYING: THE FRENCH AND
GERMAN CASES
. OROSZ (Hungary)
FORESEEABLE CONSEQUENCES OF CRISES
V. PUKELIEN
, J. KISIELIAUSKAS (Lithuania)
THE INFLUENCE OF INCOME ON SUBJECTIVE WELL-BEING
16:00 16:30 Coffee Break
(Hotel Park Inn by Radisson Kaunas, Lobby)
16:30 18:00 E. BENDORAITEN
, V. DARKUVIEN
(Lithuania)
ANALYSIS OF STAKEHOLDER FRAMEWORK: THEORETICAL PER
SPECTIVE
A. VIRBLIS, A. BURA
AS (Lithuania)
MAIN INTEGRATED ASSESSMENT PRINCIPLES OF THE CORPOR
ATE FINANCE MANAGEMENT
D. KAUPELYT
, A. BENDORAITYT
(Lithuania)
FORMATION OF COUNTER CYCLICAL CAPITAL BUFFER IN THE
EUROPEAN DEVELOPING
COUNTRIES
R. RUPEIKA-APOGA, R. NEDOVISS (Latvia)
QUANTITATIVE RISK ASSESSMENT OF HYPOTHETIC INVESTME
NT PORTFOLIO: CASE OF THE
BALTIC STATES
V. DARKUVIEN
, P. ASTROMSKIS (Lithuania)
VISIONS AND CHALLENGES OF PAYDAY LENDING IN LITHUAN
IA
A. PUZULE (Latvia)
ASSESSMENT OF LABOUR INCOME TAXATION IN LATVIA
19:30 VMU RECTORS RECEPTION INCLUDING DINNER AND
MUSIC OPUSES
jos St. 7)
September 26, Thursday

PARALLEL SESSIONS
SECTION 3:
Management Development: Challenges and Implications
Gamma
)
Chairpersons
:
prof.
I. Bakanauskien
,
assoc. prof. E. Stonkut
14:30 16:00 Z. NEDELKO (Slovenia)

THE IMPACT OF MANAGERS PERSONAL VALUES ON THEIR BE
HAVIOR: EVIDENCE FROM
AUSTRIA AND SLOVENIA
I. BAKANAUSKIEN

, R. KATILIEN
(Lithuania)
THE EXPRESSION OF HIGH SPIRITUAL INTELLIGENCE CULTU
RE IN LITHUANIAN MEDIUMSIZED BUSINESSES
I. KATANE, I. KRISTOVSKA, G. KATANA (Latvia)
THE SUPPORT AND PROMOTION OF THE STAFF COMPETITIVEN
ESS DEVELOPMENT IN
MODERN ENTERPRISE
A. BAL
NAITIEN
, V. BARVYDIEN
, N. PETKEVI
(Lithuania)
CAREER DEVELOPMENT IN CROSS-CULTURAL ENVIRONMENT
J. VVEINHARDT, E. GULBOVAIT
(Lithuania)
COMPARATIVE ANALYSIS OF THE RESEARCHES ON PERSONAL
AND ORGANIZATIONAL
VALUES
S. STANIULIEN
(Lithuania)
THE ROLE OF EMPLOYEE RELATIONS IN LITHUANIAN COMPAN
IES ORGANIZATIONAL
CULTURE FORMATION
16:30 18:00 M. KORENKOV (Slovakia)
DEPENDABILITY OF THE SUCCESSFUL SLOVAK COMPANIES ON
THE QUALITY OF
MANAGERIAL SKILLS WITH THE USE OF QUANTITATIVE METH
ODS OF THEIR EVALUATION
N. PETKEVI
, A. GIEDRAITIS (Lithuania)
FORMATION AND REPRESENTATION OF THE FIRST LEVEL MAN
AGERS LEADERSHIP
COMPETENCE IN WORKGROUP
J. VVEINHARDT, L. PETRAUSKAIT
(Lithuania)
INTENSITY OF NEPOTISM EXPRESSION IN ORGANIZATIONS
OF LITHUANIA
I. BAKANAUSKIEN
, L. ALPYT
(Lithuania)
ANALYSIS OF LITHUANIAN LABOUR MARKET TRENDS AND ITS
IMPACT ON HUMAN
RESOURCE MANAGEMENT IN ORGANIZATIONS
R. LEGENZOVA, L. PILELIEN
, K. ZIKIEN
(Lithuania)
CORPORATE PORTFOLIO ANALYSIS: THE CASE OF VYTAUTAS

MAGNUS UNIVERSITYS
KAUNAS BOTANICAL GARDEN
L. LAMPRINAKIS (Norway)
MANAGEMENT PERCEPTIONS AND ORGANIZATIONAL CHANGE:
L
ESSONS FROM A
QUALITATIVE CASE STUDY
19:30 VMU RECTORS RECEPTION INCLUDING DINNER AND
MUSIC OPUSES
jos St. 7)
September 27, Friday

PARALLEL SESSIONS
SECTION 1:
Future Organization: Challenges for Management
Eta
)
Chairpersons:
assoc. prof. O. Stripeikis, lect. V. Kardokait
-imanauskien
9:30 11:00 K. KATONA (Hungary)

CORPORATE PRODUCTION AND FINANCING CHOICES IN
HUNGA
RY
I. DEKSNYT
, Z. LYDEKA (Lithuania)
DYNAMIC PRICING MODELLING AND ITS METHODOLOGICAL AS
PECTS
D. ALEXOVA (Bulgaria)
PLANNING AND DEVELOPMENT OF TOURISM IN THE PROTECT
ED AREAS IN BULGARIA
B. GONTAR, Z. GONTAR, A. PAMULA (Poland)

DEPLOYMENT OF SMART CITY CONCEPT IN POLAND. SELECTE
D ASPECTS
V. KARDOKAIT
-IMANAUSKIEN
(Lithuania)
EVALUATION OF AGRICULTURAL LAND MARKET DEVELOPMENT
IN LITHUANIA BASED ON
KAUNAS DISTRICT LAND SURVEY
J. BINDE, M. FUKSA (Latvia)
MOBILE TECHNOLOGIES AND SERVICES DEVELOPMENT
IMPACT
ON MOBILE INTERNET
USAGE IN LATVIA
11:30 13:00 T. METS (Estonia)
TOWARDS THE ENTREPRENEURIAL COLLEGE MODEL
M. ONTAIT
-PETKEVI
IEN
(Lithuania)
THE VIEW OF STUDENTS TOWARDS CORPORATE REPUTATION
OF LITHUANIAN UNIVERSITIES
I. KATANE, I. KRISTOVSKA, E. KATANS (Latvia)
ECOLOGICAL APPROACH IN THE MANAGEMENT OF DISTANCE E
DUCATION
L. GASPAR
NIEN
, V. SNIEKA (Lithuania)
EVALUATION OF THE DEMAND FOR PATENT SERVICES MAKIN

G OUTSOURCING CONTRACTS
I. TAMUTIEN
, A. IMKUS, A. TRIMAITIS (Lithuania)

SUSTAINABILITY OF SOCIAL SERVICES DELIVERY THROUGH
PROJECTS MANAGEMENT IN
NON-GOVERNMENTAL ORGANIZATIONS OF LITHUANIA
V. BINEVA (Bulgaria)
RESEARCH OF THE STUDENTS INVESTMENT CULTURE FROM T
HE ECONOMIC PROGRAMS AT
THE PROF. DR. ASSEN ZLATAROV UNIVERSITY, BULGARIA
13:00 15:00 CLOSING CEREMONY. LUNCH
(Restaurant Architectai. Address: K.Donelai
io st. 62)

PARALLEL SESSIONS
SECTION 2:
Economic Environment for Business Organization
Zeta
)
Chairpersons:
prof.
V. Pukelien
, assoc. prof. R. Legenzova

9:30 11:00 J. KALENDIEN
(Lithuania)
ASSESSMENT OF LITHUANIAN EXPORT COMPETITIVENESS
H. HILMARSSON (Iceland)
AN ICELANDIC GEOTHERMAL CLUSTER AND THE TRANSITION
TO CLEAN ENERGY IN
EMERGING MARKET ECONOMIES
H. HILMARSSON (Iceland)
SMALL STATES AND BIG FINANCE. HOW DID LATVIA AND IC
ELAND RESPOND TO THE
ECONOMIC AND FINANCIAL CRISIS?
M. DAPKUS, I. MAKSVYTIEN
(Lithuania)
THE EVALUATION OF LITHUANIAN WATER SUPPLY SECTORS E
FFICIENCY IN THE CONTEXT
OF DUTCH AND DENMARK SITUATION
R.
IEGIS, K. ANDRIUKEVI
IUS (Lithuania)
MERGERS AND ACQUISITIONS ANNOUNCEMENT EFFECTS TO
BI
DDING COMPANY
SHAREHOLDERS: THE CASE OF EUROPEAN UNION DURING 200
4 - 2011
R. RUPEIKA-APOGA, E. ZELGALVE (Latvia)
FINANCIAL LEVERAGE AND FINANCIAL MARKET INSTABILITY
: THE CASE OF LATVIA
I. AVOTINS
(Latvia)
IMPROVEMENTS IN GOVERNMENT DEBT SECURITIES SYSTEM I
N LATVIA WOULD INCREASE
DOMESTIC DEMAND ON THEM
11:30 13:00 V. DARKUVIEN
(Lithuania)
FINANCIALIZATION: CONCEPT, ACTORS, FACTORS AND IMPA
CT ON MARKETS
L. KAVALE, I. BR
NA (Latvia)
NEW CHALLENGES OF THE TAX POLICY AFTER CRISIS: CAS
E OF LATVIA
A. GAIGALIEN
, Z. LYDEKA (Lithuania)
INTERNATIONAL FINANCIAL NETWORK CHARACTERISTICS AND
THEIR IMPLICATION FOR
MEASURING FINANCIAL INTEGRATION
S. SAKSONOVA (Latvia)
INVESTMENT CLIMATE IN LATVIA AND OPTIONS FOR ITS I
MPROVEMENT
M. RA
KAUSKAS, K. LEVIAUSKAIT
(Lithuania)
POSSIBLE CHANGES IN THE PERFORMANCE OF CREDIT UNION
S ACCORDING TO NEW
CENTRAL BANK REGULATIONS
R. LEGENZOVA (Lithuania)
INVESTIGATION OF FINANCIAL AUDIT REPORTS OF LITHUAN
IAN CORPORATIONS
I. GECKOV, V. PAPCUNOV, R. GREG
OV (Slovakia)
THE USING OF ECONOMIC ANALYSES FOR REGIONAL DEVELOP
MENT REGULATION ON
REGIONAL MANAGEMENT LEVEL IN THE SLOVAK REPUBLIC CO
NDITIONS
io st. 62)

PARALLEL SESSIONS
SECTION 3:
Management Development: Challenges and Implications

Gamma
)
Chairpersons:
assoc. prof. V. Liesionis, dr. M. ontait
-Petkevi
ien
9:30 11:00 R. PATANATHABUTR, C. TRIKANJANA (Thail

and)
PRODUCT MARKETING AND PACKAGING OF FRUIT JUICE IN T
HE LEVEL OF THAI COMMUNITY
AND COMMERCIAL PRODUCT
R. PATANATHABUTR, T. CHAIYAKAL (Thailand)
PRODUCT MARKETING PACKAGING OF HEALTHY BREAKFAST
CE
REAL IN THE LEVEL OF
THAI COMMUNITY AND COMMERCIAL PRODUCT
R. PATANATHABUTR, P. WEERACHATYANUKOOL (Thailand)
PRODUCT MARKETING PACKAGING OF HEALTHY SNACK IN THE
LEVEL OF THAI
COMMUNITY AND COMMERCIAL PRODUCT
L. PILELIEN
, V. GRIGALI
NAIT
(Lithuania)
DETERMINATION OF CUSTOMER SATISFACTION WITH
SUPERMA
RKETS IN LITHUANIA
M. ONTAIT

-PETKEVI
IEN
, K. DILINSKAIT
(Lithuania)
MANAGEMENT OF THE SHOPPING CENTER BRAND: THE
IMPACT
OF CORPORATE BRAND
MANAGEMENT ON CONSUMER BEHAVIOR
J. LIONIKAIT
, P. ZAKAREVI
IUS (Lithuania)
INTERNAL PLACE BRANDING: A FRAMEWORK TO APPROACH IN
TERNAL STAKEHOLDERS
INVOLVEMENT IN THE PROCESS OF PLACE BRANDING
K. ZIKIEN
, K. PRESKIEN
(Lithuania)
THE ASSESSMENT OF CUSTOMER LOYALTY PROGRAMS IN LITH
UANIAN PHARMACIES
NETWORK IN THE ASPECT OF GAINED VALUE
11:30 13:00
V. BI
NAIT
-SVOBONIEN
, A. BAKANAUSKAS (Lithuania)
THEORETICAL INSIGHTS INTO THE BRAND VALUE CONCEPTUA
LIZATION
L. PILELIEN
, S. JURGILAIT
(Lithuania)
PRODUCT PLACEMENT IN MOVIES: RECALL, RECOGNITION, F
UTURE PURCHASE INTENTIONS
G. GUDAIT
, N. KLEBANSKAJA (Lithuania)
RISK COMMUNICATION. THE CASE OF SWINE FLU EPIDEMIC
IN LITHUANIA
L. MELECE (Latvia)
AGRICULTURAL COOPERATIVES FOR SOCIAL CAPITAL DEVEL
OPMENT IN LATVIA
A. PA
RAIT
, P. KRAKAUSKAS (Lithuania)
TOWARDS LIBERALIZED DISTRICT HEATING MARKET. KAUNAS
CITY CASE
M. DIDGALVYT
(Lithuania)
TIPPING PHENOMENON EVALUATION: LITHUANIAN CASE
J. LIONIKAIT
, P. ZAKAREVI
IUS (Lithuania)
AN INITIAL FRAMEWORK FOR UNDERSTANDING THE CONCEPT
OF INTERNAL PLACE
BRANDING
io
Four key revolutions: Business leaders improve the way

they do
business through agility, authenticity, talent, and
sustainability
Agility
is emerging as an essential competency for leaders. The
speed
of change will require organizations to be more nimble
and flexible.
Those who have the foresight to spot change on the
horizon, anticipate
what comes next, and take the lead in developing future
strategies to
address evolving market demands will make it to the
winners circle.
Authenticity
is a vital leadership competency in a changing business
environment. Leaders need to create clarityarticulating

a vision and
painting a picture of the future. With so many changing
variables, they
must lead with confidence and have the courage to take
a stand. To
build trust and confidence with their teams, they need to
be genuine
in their communications. With change creating anxiety
and confusion,
leaders must bring a level of certainty about the path
forward and foster
a sense of purpose for their teams.
1 PricewaterhouseCoopers/Saratoga,
2007/2008 US Human Capital Effectiveness Report
(2007).
In 200
, 58.1% of management
positions were filled internally. In
2006 that figure dropped to 50.0%.

1
5
Situation
Talent
is about a leaders ability to leverage and maximize the
impact
of his or her people. To harness the power of their people
assets, leaders
must be committed to building a supportive culture and
effective
organizational structures and people processes.
Organizations that
have not proactively developed talentwho lack the right
people
skilled in the right areas, when and where theyre likely to
be needed
are more vulnerable to rapid change. Leaders need to
attentively
develop, engage, and motivate people. They must be
mindful about
embedding day-to-day coaching and mentoring into the

culture.
Sustainability
is about demonstrating social responsibility by balancing
business results with concern for the greater good.
Although much
attention is being paid to how companies deal with
environmental
issues, social responsibility extends beyond just this one
area. Focusing
on sustainability means looking beyond short-term
results to consider
the longer-term implications of decisions as they relate
not just to the
environment, but also to health, safety, and other such
areas of concern.
It means taking actions that go beyond regulations to
build controls
into the business environmentembedding social
responsibility into
business processes and procedures and taking
responsibility for the
impact decisions might have on the workforce.

Sustainability will be a
major differentiator for a leaders success in the future.
Ultimately, it
may contribute to the long-term survival of an
organization and serve
to reshape the business climate.
Top executives agree on success factors
According to our research, top executives believe that
these four
revolutions are very important to future success. To bear
this out, we
have included throughout this document quotes from
CEOs who
responded to PricewaterhouseCoopers
10th Annual Global CEO Survey
,
as well as information obtained from the
PricewaterhouseCoopers/
Saratoga
2007/2008 US Human Capital Effectiveness Report
.
6
Our perspective
Business leaders
must
shape their
organizations
to better deliver
value.
Our perspective
Successful business leaders must shape their

organizations to be more
nimble and flexible, less hierarchical, and more
networkedin short, better
organized to deliver value. The focus should be on four
key emerging
business revolutions: agility, authenticity, talent, and
sustainability.
In this section we will address what leaders need to
know about each of
these revolutions and how they can be translated into
success quotients
to define a distinctive leadership frameworkone that
provides direction
on what it will take to lead and shape organizations in
the future.
8
8
Figure 1
Talent can be an
organizations
greatest asset
or liability. The
good news is
that whether it is
the former
or the latter, it is
entirely
within
managements
control.
Footer
Business
impact
Approach to managing talent
Activity-based
approach
Strategic
alignment
with business
priorities
Anticipatory
Adaptive
Reactive
10
According to Revolutions in Our Midst: Three Ways Our

World Is Being
Remade, an article that appeared in the September
2007 issue of the
PricewaterhouseCoopers publication
View
, agility is a core competence
for organizations operating in todays high-speed and
increasingly global
business environment.
To maximize business impact in todays increasingly
competitive
marketplace and drive future success, business leaders
must position
their organizations to be more nimble and flexible

poised to anticipate
and drive change.
Innovation and empowerment

are keys to flexibility.
Respondent, PricewaterhouseCoopers
The agility revolution

11
Our perspective
An anticipatory workforceone that thrives on innovation

will be an
essential determinant of future success. To build such a
workforce,
leaders must themselves demonstrate agility and embed
it into the way
work is done throughout the organization. That means
encouraging and
appropriately rewarding innovation so that individuals are
willing to test
the status quo and take the risks that go hand in hand
with defining
new products and services. Respondents to our CEO
survey stressed
the importance of innovation in helping them shape the
future of their
organizations and adapt more effectively to the rapid
pace of change.
Standardizing processes also contributes to an agile
environment.
For example, in todays dynamic environment, decisions
must be
made quickly. Therefore, it is critical that leaders
demonstrate agility
by empowering others to make decisions rather than
limiting decision
making to a select few at the top. To further expedite the
process,
decisions should be based on guiding principles rather
than on a fixed
set of rules.
Agility is a key factor in attracting the best talent and

establishing
a stronger employee value proposition. Those
organizations that
encourage and reward innovation and reinforce flexibility
will enjoy
a competitive edge in the quest for high-potential talent.
Weve created a
corporate
environment
based on
encouraging
employee
initiative,
delegation of
authority, and
strong career
development.
These factors
motivate.
Respondent,
PricewaterhouseCoopers
12
Being able to mobilize talent around business objectives

is more critical
these days than ever before. If leaders are to define and
execute their
business agenda in todays ever-changing environment,
it is imperative
that they be realistic about what it takes to make change
happen, and
have the courage to take a stand. Those who have the
ability to articulate
a vision and communicate with impact and empathy can

help to create
optimism, clarity, and certainty in uncertain times. As the
business
environment becomes increasingly global, cross-cultural,
and networked,
leaders will need to find ways to inspire their teams using
creative
and collaborative methods. Fostering collaboration in a
cross-cultural
environment will put leaders to the test, honing their
ability to actively
listen, to empathize, and to nurture innovation. The
bottom line: A truly
authentic leader relates well to others, is open to new
ideas, and can
inspire high levels of performance in tough times.
The authenticity revolution

1
Our
15
Our perspective
Given the rapid pace of change, it is no longer feasible

for employees
to learn by trial and error. A shorter time to competence
is necessary,
and leaders must explore new ways to share knowledge
and embed
learning into work. That means shifting investment
dollars to build the
infrastructure for knowledge management. Additionally,
with increasing
numbers of baby boomers exiting the workforce and
further shrinking
the talent pool, it will be essential to have mechanisms in
place to
transfer legacy knowledge going forward.
Moving talent to the top of the business agenda is critical
to the survival
of the organization. The turnover rate for high-performing
employees
increased by more than 7% in 2006rising to 5.7%.
2
Leaders must
become actively involved in harnessing and maximizing
the power
of their people to build competitive strength that will
differentiate the
organization in the marketplace of the future. That not
only means
going beyond defining career paths and development
opportunities,
but also taking an active mentoring role.
2 Ibid.
Ibid.
Organizations invest an average of

$51
on learning and development
per employee.
3
16
Recognizing that it will take more than just short-term

results to
drive future success, savvy leaders are striving to foster
a business
climate that balances bottom-line results with the public
good, and
to establish business practices focused on social as well
as personal
responsibility. For example, both consumers and
employees are
demanding a greater focus on green issues and taking
active steps
to help ensure environmental sustainability.
To minimize risk, and to do the right thing, top executives
should
demonstrate responsible leadership by assessing
anticipated
change in order to determine its potential impact on
products,
services, and investments.
The quest for sustainability provides an opportunity for

companies
to step up and take a leadership role in defining a new
business
climate and new strategies to drive a sustainable future.
Since core
responsibility is tied closely to the way an organization
manages its
people, the winners of tomorrow will weave sustainability
into talent
management todayenhancing how their organization
attracts,
acquires, develops, deploys, and rewards valued
employees.
Research shows that sustainability is a key concern
when candidates
are deciding where they want to work, and that its also
one of the
issues employees consider when deciding whether to
remain with
a company or move on. According to a recent study
conducted by
PricewaterhouseCoopers,
0% of US respondents said they would

actively seek out employers whose corporate
responsibility behavior
reflects their own.
PricewaterhouseCoopers,
Managing Tomorrows People: The Future of Work to 2020
(2007).
The sustainability revolution

17
Our perspective
Model future leadership behaviors on changing

strategies
To succeed going forward, business leaders must go
beyond anticipating
trends on the horizon to actually model what success will
look like in the
workplace of the future. Doing that effectively requires a
new leadership
framework based on agility, authenticity, talent, and

sustainability. These
four revolutions are translated into four leadership
success quotients,
each of which embodies a set of clearly defined
behaviors:
1. The agility quotient
2. The authenticity quotient
. The talent quotient
. The sustainability quotient
I would like to leave behind a

sustainable, workforce-centered
culture.
Respondent, PricewaterhouseCoopers
A distinctive leadership framework is vital
A distinctive leadership framework will help organizations

clarify what
successful leadership looks like, build leadership
capability for the future,
and redefine measures of success. Leadership success
quotients help
to define the attributes that differentiate highperformance leadership.
While the quotients may not encompass all possibilities,
trends strongly
suggest the need for a new set of leadership behaviors.
The agility quotient:
To demonstrate agility and personal resiliency in
the way they anticipate, adapt to, and lead change,
successful leaders
must create a culture conducive to change, one that
encourages people
to stretch their imaginations and innovate by rewarding
forward thinking
and risk taking.
The authenticity quotient:
To mobilize the global workforce amid

constant change, successful leaders must articulate a
vision of how
to be competitive in a complex work environment, then
communicate
that vision with impact, empathy, and optimism. It is
important to
demonstrate personal courage by taking a stand on
critical issues
regardless of what is popular.
18
The talent quotient:

To harness and maximize the power of talent,
successful leaders must drive connectivity by building
alliances within
and across organizations. To demonstrate a commitment
to building
talent capability, they should be actively involved in the
development,
succession, and mentorship of their people. Given the
demographic and
generational shifts we are witnessing, leaders should

demonstrate and be
role models for openness to different perspectives,
ideas, and styles.
The sustainability quotient:
To demonstrate their ability to create a new
business climate that embeds a global mindset into
decision making and
the way they operate the business, successful leaders
must balance their
focus, working for bottom-line results while also focusing
on the public
good. Furthermore, they must take greater responsibility
for the welfare
of their employees.
1
Our perspective
Section Title
Statement is set at
6/
6, Helvetica
Roman, in light
color,
lines maximum.
20
20
Figure 2
A distinctive
leadership
framework
Implications
Anticipate change,
maximize talent,
embrace
social
responsibility, and
demonstrate
authenticity.
22
The strategic revolutions in todays rapidly changing

business
environment clearly mandate a new leadership
framework. To capitalize
on developing trends and drive future success,

organizations must
begin building leadership strength now in the four
leadership success
quotients: agility, authenticity, talent, and sustainability.
But the formula for achieving leadership success is a
moving target.
The leadership success quotients will evolve.
Nevertheless, complacency
is not an option. To quote an executive from our CEO
survey, Global
trends are hitting faster, harder, and wider, with results
that can be both
exhilarating and devastating for companies, industries,
and entire regions.
The winners of tomorrow will be those organizations with
strong leaders
who demonstrate agility, authenticity, connectivity to their
talent, and
sustainability. They will use their skills to remain at the
ready, anticipate
and harness the power of change, and stay ahead of the

shifting
business environment.
Implications
2
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perspective
This classic guide to organizational change management best practices has been updated for the
current business environment. To read the newest article, click here. Or, to watch a related video,
click on the play button above.
Way back when (pick your date), senior executives in large companies had a simple goal for
themselves and their organizations: stability. Shareholders wanted little more than predictable
earnings growth. Because so many markets were either closed or undeveloped, leaders could
deliver on those expectations through annual exercises that offered only modest modifications to
the strategic plan. Prices stayed in check; people stayed in their jobs; life was good.
Market transparency, labor mobility, global capital flows, and instantaneous communications
have blown that comfortable scenario to smithereens. In most industries and in almost all
companies, from giants on down heightened global competition has concentrated
managements collective mind on something that, in the past, it happily avoided: change.
Successful companies, as Harvard Business School professor Rosabeth Moss Kanter told s+b in
1999, develop a culture that just keeps moving all the time.
This presents most senior executives with an unfamiliar challenge. In major transformations of
large enterprises, they and their advisors conventionally focus their attention on devising the best
strategic and tactical plans. But to succeed, they also must have an intimate understanding of the
human side of change management the alignment of the companys culture, values, people,
and behaviors to encourage the desired results. Plans themselves do not capture value; value
is realized only through the sustained, collective actions of the thousands perhaps the tens of
thousands of employees who are responsible for designing, executing, and living with the
changed environment.
Long-term structural transformation has four characteristics: scale (the change affects all or most
of the organization), magnitude (it involves significant alterations of the status quo), duration (it
lasts for months, if not years), and strategic importance. Yet companies will reap the rewards
only when change occurs at the level of the individual employee.
Many senior executives know this and worry about it. When asked what keeps them up at night,
CEOs involved in transformation often say they are concerned about how the work force will
react, how they can get their team to work together, and how they will be able to lead their
people. They also worry about retaining their companys unique values and sense of identity and
about creating a culture of commitment and performance. Leadership teams that fail to plan for
the human side of change often find themselves wondering why their best-laid plans have gone
awry.
No single methodology fits every company, but there is a set of practices, tools, and techniques
that can be adapted to a variety of situations. What follows is a Top 10 list of guiding
principles for change management. Using these as a systematic, comprehensive framework,
executives can understand what to expect, how to manage their own personal change, and how to
engage the entire organization in the process.
1. Address the human side systematically. Any significant transformation creates people
issues. New leaders will be asked to step up, jobs will be changed, new skills and capabilities
must be developed, and employees will be uncertain and resistant. Dealing with these issues on a
reactive, case-by-case basis puts speed, morale, and results at risk. A formal approach for
managing change beginning with the leadership team and then engaging key stakeholders and
leaders should be developed early, and adapted often as change moves through the
organization. This demands as much data collection and analysis, planning, and implementation
discipline as does a redesign of strategy, systems, or processes. The change-management
approach should be fully integrated into program design and decision making, both informing
and enabling strategic direction. It should be based on a realistic assessment of the organizations
history, readiness, and capacity to change.
2. Start at the top. Because change is inherently unsettling for people at all levels of an
organization, when it is on the horizon, all eyes will turn to the CEO and the leadership team for
strength, support, and direction. The leaders themselves must embrace the new approaches first,
both to challenge and to motivate the rest of the institution. They must speak with one voice and
model the desired behaviors. The executive team also needs to understand that, although its
public face may be one of unity, it, too, is composed of individuals who are going through
stressful times and need to be supported.
Executive teams that work well together are best positioned for success. They are aligned and
committed to the direction of change, understand the culture and behaviors the changes intend to
introduce, and can model those changes themselves. At one large transportation company, the
senior team rolled out an initiative to improve the efficiency and performance of its corporate
and field staff before addressing change issues at the officer level. The initiative realized initial
cost savings but stalled as employees began to question the leadership teams vision and
commitment. Only after the leadership team went through the process of aligning and
committing to the change initiative was the work force able to deliver downstream results.
3. Involve every layer. As transformation programs progress from defining strategy and setting
targets to design and implementation, they affect different levels of the organization. Change
efforts must include plans for identifying leaders throughout the company and pushing
responsibility for design and implementation down, so that change cascades through the
organization. At each layer of the organization, the leaders who are identified and trained must be
aligned to the companys vision, equipped to execute their specific mission, and motivated to
make change happen.
A major multiline insurer with consistently flat earnings decided to change performance and
behavior in preparation for going public. The company followed this cascading leadership
methodology, training and supporting teams at each stage. First, 10 officers set the strategy,
vision, and targets. Next, more than 60 senior executives and managers designed the core of the
change initiative. Then 500 leaders from the field drove implementation. The structure remained
in place throughout the change program, which doubled the companys earnings far ahead of
schedule. This approach is also a superb way for a company to identify its next generation of
leadership.
4. Make the formal case. Individuals are inherently rational and will question to what extent
change is needed, whether the company is headed in the right direction, and whether they want to
commit personally to making change happen. They will look to the leadership for answers. The
articulation of a formal case for change and the creation of a written vision statement are
invaluable opportunities to create or compel leadership-team alignment.
Three steps should be followed in developing the case: First, confront reality and articulate a
convincing need for change. Second, demonstrate faith that the company has a viable future and
the leadership to get there. Finally, provide a road map to guide behavior and decision making.
Leaders must then customize this message for various internal audiences, describing the pending
change in terms that matter to the individuals.
A consumer packaged-goods company experiencing years of steadily declining earnings

determined that it needed to significantly restructure its operations instituting, among other
things, a 30 percent work force reduction to remain competitive. In a series of offsite
meetings, the executive team built a brutally honest business case that downsizing was the only
way to keep the business viable, and drew on the companys proud heritage to craft a compelling
vision to lead the company forward. By confronting reality and helping employees understand
the necessity for change, leaders were able to motivate the organization to follow the new
direction in the midst of the largest downsizing in the companys history. Instead of being shellshocked and demoralized, those who stayed felt a renewed resolve to help the enterprise
advance.
5. Create ownership. Leaders of large change programs must overperform during the
transformation and be the zealots who create a critical mass among the work force in favor of
change. This requires more than mere buy-in or passive agreement that the direction of change is
acceptable. It demands ownership by leaders willing to accept responsibility for making change
happen in all of the areas they influence or control. Ownership is often best created by involving
people in identifying problems and crafting solutions. It is reinforced by incentives and rewards.
These can be tangible (for example, financial compensation) or psychological (for example,
camaraderie and a sense of shared destiny).
At a large health-care organization that was moving to a shared-services model for administrative
support, the first department to create detailed designs for the new organization was human
resources. Its personnel worked with advisors in cross-functional teams for more than six
months. But as the designs were being finalized, top departmental executives began to resist the
move to implementation. While agreeing that the work was top-notch, the executives realized
they hadnt invested enough individual time in the design process to feel the ownership required
to begin implementation. On the basis of their feedback, the process was modified to include a
deep dive. The departmental executives worked with the design teams to learn more, and get
further exposure to changes that would occur. This was the turning point; the transition then
happened quickly. It also created a forum for top executives to work as a team, creating a sense
of alignment and unity that the group hadnt felt before.
6. Communicate the message. Too often, change leaders make the mistake of believing that
others understand the issues, feel the need to change, and see the new direction as clearly as they
do. The best change programs reinforce core messages through regular, timely advice that is both
inspirational and practicable. Communications flow in from the bottom and out from the top, and
are targeted to provide employees the right information at the right time and to solicit their input
and feedback. Often this will require overcommunication through multiple, redundant channels.
In the late 1990s, the commissioner of the Internal Revenue Service, Charles O. Rossotti, had a
vision: The IRS could treat taxpayers as customers and turn a feared bureaucracy into a world-
class service organization. Getting more than 100,000 employees to think and act differently
required more than just systems redesign and process change. IRS leadership designed and
executed an ambitious communications program including daily voice mails from the
commissioner and his top staff, training sessions, videotapes, newsletters, and town hall meetings
that continued through the transformation. Timely, constant, practical communication was at the
heart of the program, which brought the IRSs customer ratings from the lowest in various
surveys to its current ranking above the likes of McDonalds and most airlines.
7. Assess the cultural landscape. Successful change programs pick up speed and intensity as
they cascade down, making it critically important that leaders understand and account for culture
and behaviors at each level of the organization. Companies often make the mistake of assessing
culture either too late or not at all. Thorough cultural diagnostics can assess organizational
readiness to change, bring major problems to the surface, identify conflicts, and define factors
that can recognize and influence sources of leadership and resistance. These diagnostics identify
the core values, beliefs, behaviors, and perceptions that must be taken into account for successful
change to occur. They serve as the common baseline for designing essential change elements,
such as the new corporate vision, and building the infrastructure and programs needed to drive
change.
8. Address culture explicitly. Once the culture is understood, it should be addressed as
thoroughly as any other area in a change program. Leaders should be explicit about the culture
and underlying behaviors that will best support the new way of doing business, and find
opportunities to model and reward those behaviors. This requires developing a baseline, defining
an explicit end-state or desired culture, and devising detailed plans to make the transition.
Company culture is an amalgam of shared history, explicit values and beliefs, and common
attitudes and behaviors. Change programs can involve creating a culture (in new companies or
those built through multiple acquisitions), combining cultures (in mergers or acquisitions of large
companies), or reinforcing cultures (in, say, long-established consumer goods or manufacturing
companies). Understanding that all companies have a cultural center the locus of thought,
activity, influence, or personal identification is often an effective way to jump-start culture
change.
A consumer goods company with a suite of premium brands determined that business realities
demanded a greater focus on profitability and bottom-line accountability. In addition to
redesigning metrics and incentives, it developed a plan to systematically change the companys
culture, beginning with marketing, the companys historical center. It brought the marketing staff
into the process early to create enthusiasts for the new philosophy who adapted marketing
campaigns, spending plans, and incentive programs to be more accountable. Seeing these culture
leaders grab onto the new program, the rest of the company quickly fell in line.
9. Prepare for the unexpected. No change program goes completely according to plan. People
react in unexpected ways; areas of anticipated resistance fall away; and the external environment
shifts. Effectively managing change requires continual reassessment of its impact and the
organizations willingness and ability to adopt the next wave of transformation. Fed by real data
from the field and supported by information and solid decision-making processes, change leaders
can then make the adjustments necessary to maintain momentum and drive results.
A leading U.S. health-care company was facing competitive and financial pressures from its
inability to react to changes in the marketplace. A diagnosis revealed shortcomings in its
organizational structure and governance, and the company decided to implement a new operating
model. In the midst of detailed design, a new CEO and leadership team took over. The new team
was initially skeptical, but was ultimately convinced that a solid case for change, grounded in
facts and supported by the organization at large, existed. Some adjustments were made to the
speed and sequence of implementation, but the fundamentals of the new operating model
remained unchanged.
10. Speak to the individual. Change is both an institutional journey and a very personal one.
People spend many hours each week at work; many think of their colleagues as a second family.
Individuals (or teams of individuals) need to know how their work will change, what is expected
of them during and after the change program, how they will be measured, and what success or
failure will mean for them and those around them. Team leaders should be as honest and explicit
as possible. People will react to what they see and hear around them, and need to be involved in
the change process. Highly visible rewards, such as promotion, recognition, and bonuses, should
be provided as dramatic reinforcement for embracing change. Sanction or removal of people
standing in the way of change will reinforce the institutions commitment.
Most leaders contemplating change know that people matter. It is all too tempting, however, to
dwell on the plans and processes, which dont talk back and dont respond emotionally, rather
than face up to the more difficult and more critical human issues. But mastering the soft side of
change management neednt be a mystery.
Adapting to Change in a Rapidly Changing Business Environment
Supervisors job responsibilities are changing. As both individuals and members of an

organizations managerial team, supervisors need to prepare themselves to adapt successfully to a
rapidly changing business environment. This article presents a number of tips supervisors can
use to deal with change, to the betterment of their organization and their own careers. As a
supervisor, the primary measures you can take to adapt to change include:
becoming aware of your situation
understanding change
building your skills and knowledge
Become Aware of Your Current Situation
What is going on now in your job? If you dont know, you must take steps to find out! Relevant
questions to ask include:
What is the mission of your unit?
What is the purpose of your job?
What are your key responsibilities and assignments?
What does your supervisor expect of you?
What obstacles stand in your way?
What resources do you have at your disposal?
How well are you performing?
How do peers and managers view the importance and performance of your
unit?
What changes are coming?
If you are unable to answer questions like these, you should begin immediately to do your
homework, for you are in a prime position to be overwhelmed by unexpected forces of change.
People often miss important information when they employ selective perception, habit, and
specialization to keep themselves from being exposed to ideas they might not want to hear.
While this is human nature, it is not a good strategy for handling change. Instead, supervisors
should face their fears and broaden their sources of information to explore new ideas. By
increasing their awareness of change through a willingness to take in new information, they will
have a distinct advantage over those who tend to isolate themselves.
While you are gathering information, try to spot the trends which may be signaling change on the
horizon. Look for seemingly isolated facts that may fit together like the pieces of a puzzle.
When you think you have spotted a trend, you should investigate it in further detail. Dont just
react to change; anticipate and prepare for it.
Understanding Change
Compare your reaction and a small childs reaction to thunder. You ignore it, but a child may be
anxious and seeks assurances from the nearest adult. Its only human to fear the unknown
confidence comes with understanding. From long experience, you know that thunder is a natural
phenomenon that cannot harm you. The child does not yet understand it. That is why an
important step toward coping with change is understanding it: what is happening, why, and how.
Is your department being reorganized? Are you worried about the impact on you? Thats natural.
But dont fall victim to rumors, speculation, or the inclination to assume the worst. Wait for your
boss to explain why the reorganization is being done, how the new department will work, and
what specific changes will result. It is likely that the changes represent an improvement of some
sort. If your manager does not explain the change to you, ask about it.
Flexibility and a willingness to embrace change will make you a more valuable member of your
organizationone who can reliably deal with many different opportunities and circumstances.
You may not like all the changes that are occurring, but you can be sure that if you resist them,
you will not prosper. It is fine to voice your opinion and make suggestions, but it is also
important to appreciate that competition and technology are constantly combining to force top
management to reevaluate company operations. It is helpful to look on changed circumstances
and the challenges they present with the attitude of a new employee and, as a new employee
would, take on these challenges enthusiastically and with a desire to learn all you can to perform
well.
When you recognize the possibilities created by change, youre more prepared to exploit them.
You will find change as not something to fear, but as something to welcome and turn to your own
advantage.
Build Your Skills and Keep Learning
Adapting to change frequently requires the effective use of all your acquired skills. In some
cases, adapting to change will call for the use of other skills as wellskills which you might not
yet have mastered, or even begun to acquire! In a fast-changing work environment, skills also
become obsolete. To be prepared to deal with change successfully, it is important to build as
many skills as you can before their use becomes essential for organizational survival. You dont
want to be caught short in a crunch.
You can never stop learning if you want to maintain your value in the job marketplace. Nor can
you wait for your employer to send you to seminars or pay for additional education. You need to
take responsibility to educate yourself. Doing so will help you keep your skills current, and it
will demonstrate an initiative for self-improvement that makes you a more visible and viable
candidate for a promotion or new assignment.
You may also want to consider making lateral moves to learn new skills and become a wellrounded employee. Read trade magazines and attend conferences, when possible. Take refresher
training in your area of competence. Enroll in a college course that interests you, even one not
given for credit. See if your professional association offers training sessions and workshops.
Look into correspondence or distance education. If circumstances allow, pursue an advanced

degree. If college is not an option, broaden your reading and personal study. Join others with
similar interests to form a discussion group or study team. Read a technical manual or recent
review of research in an area of interest to you.
This is the one of the most important tips for adapting to change, because it places you ahead of
the curve: anticipating change and implementing it before many people think to adapt. It is
important to keep your learning skills fresh; learning how to learn is also too valuable a lesson to
allow it to atrophy over time. The bottom line is, the more you know how to do and the more
current your skills and your ability to apply them effectively, the more valuable you are to an
organization.
Other Tips
Aside from these major efforts, you can also take smaller measures to ensure that you are
compatible with change and adapt easily to it:
Embrace Technology. Embrace technological change and learn how to use it

for your own benefit. Dont run from new technologies; try them! Some
people are afraid to try new technology for fear of looking foolish or old
fashioned in front of othersparticularly younger people who are more
technologically adept. If you are uncomfortable with new technology, try it
out in the privacy of your own home, or in the presence of trustworthy friends
and teachers.
Increase Your Speed. Greater opportunities come to organizations that can

respond quickly. Customers value speed in providing services and delivering
orders and are sometimes willing to pay extra for a quick response.
Employees who are fast and flexible generally reduce costs by minimizing
their expended time on a project. As a supervisor, you need to continuously
review how you can reduce the time spent on work, either in increments or in
quantum leaps. Always look for breakthroughs, especially in information
technology, that will allow you to get more done faster and with fewer
people.
Learn to Live with Ambiguity and Uncertainty. Most people do not like
ambiguity or uncertainty, which are major sources of anxiety, but they are
also facts of life in this fast-changing world. Often you will have to make
decisions without having all the facts you need or knowing with any certainty
what will happen. But, if you are willing to accept ambiguity and uncertainty
and not let them prevent you from trying new things, you ultimately enhance
your value to the organization. Learning to improvise and adapt to different
and unexpected situations will give you important skills that will help you
progress in your career.
Act like an Entrepreneur. Entrepreneurs are always concerned with doing their
best and getting the most out of their employees. Why? Entrepreneurs
behave this way because its their company, their responsibility to keep
customers satisfied, their reputation, and their money. These factors provide
them with powerful incentives to perform at a high level. An entrepreneurial
attitude can also serve supervisors and employees well. Having an
entrepreneurial attitude can provide you with the extra push to cut costs,
improve productivity, and go out of your way to keep customers satisfied. As
change continues and organizations begin to use more outside contractors,
you may become one yourself. An entrepreneurial attitude will help prepare
you for that possibility.
Adding Value to the Organization. The organization should always be able to

make a profit on your work. If you add value, you bring in a return on your
work that is higher than your cost to the organization. If that is not the case,
your job is in peril. This is especially true today, when organizations are
eagerly looking for ways to cut costs. Always ask yourself whether your
activities add value or add costs for the organization. When someone asks
what you are contributing, be able to provide specific examples of what you
do and the difference you are making.
Know Your Niche. As a service provider, your job is to provide services to

customers, whether internal or external. You need to understand your
customers needs and then go out of your way to fulfill them. It is therefore
important to keep in close contact with the customers you serve. As their
needs change, make sure you are aware of those changes and continuously
improve your provision of servicesin terms of reliability, quality, and cost. If
there is any key to job security, it lies in taking care of those who depend on
you.
Be a Fixer, Not a Blamer. In any organization, there will always be problems

that arise from changing circumstances. In noting these problems, some
people get the reputation of being complainers rather than problem solvers.
Those who complain and blame are not helping themselves or the
organization. There are two difficulties with playing the blame game.
Most problems are due to common causes, meaning no one person or event
can be identified as the cause.
Treating these problems as though there were an identifiable cause gets in

the way of solving them.
To become a fixer, you should identify the source of the problem and suggest direct actions to
deal with it. The person who blames doesnt solve problems; the person who fixes does, and
becomes a valued member of an organization as a result.
Conclusion
Organizational change is not optional to keep pace with business. All organizations, at one time
or another, face substantive modifications to some aspect of their business. Supervisors can
prepare themselves to adapt successfully to a more rapidly changing business environment by

following a variety of tips, as outlined above.
This article is excerpted from BOMI Internationals Administration. The guide can be purchased
by calling 18002352664, or by visiting www.bomi.org.
Emerging horizons of management in the changing environment
1. 1. BY Arvind Kumar andPranav Kumar Ojha MBA 1st SemesterMONIRBA ,
University of Allahabad
2. 2. HORIZONS- mean a line at whichthe earth and the sun appear tomeet just
imminent or apparent
3. 3. Why to study? Uncertainty of environment Competitive edge. Better
services to consumers.
4. 4. Points to be Covered under the topic,Emerging horizons of management
in Developments in the Field of Managementthe changing environment
Contemporary Management Contemporary Management TheoryHorizons
Focus of Attention Challenge of International ManagementChallenges
Issues involved Challenges in The Management ArenaFor Future Managers
Skills required in Future Managersin Future Management
5. 5. Horizons Transnational management system Technology Organization
and natural environment Cultures and multiculturalism Inventing and
reinventing organizations Rural management Management of increased
urban generation
6. 6. Risk managementCrisis managementKnowledge managementSecurity
managementNewer organizational designsQuality management
7. 7. THE TRANSNATIONAL MANAGEMENT SYSTEMOne of the most significant
business and economic trendsis the transnational management system of the
statelesscorporationsWe can say that the trend towards stateless
isunmistakable and irreversible because it helps solve thefollowing
RegulatoryPolitical problemsTrade problemsproblems Technology related
problemsproblems
8. 8. Technology Emerging technology are those technical innovations which
represent progressive developments with in a field for competitive
advantages E- Commerce Mobile Banking RFID
9. 9. Organizational and natural environment HAWKEN proposes a set of
GREEN FEES to replace all of the taxes that we currently have. MANAGERS in
the next century will undergo a GREEN REVOLUTION taking the
ENVIRONMENT into account in their DECISION MAKING on a routine basis.
These GREEN TAXES can be used to make our society better and turn the
GLOBAL ECONOMY into a GREEN ECONOMY.
10.10. Cultures and multiculturalism Making a strength of DIVERSITY will be the
necessity for the successful managers operating in the next century.
Managers have to think differently about the complex mosaic of cultures.
11.11. Inventing and reinventing organizations Reengineering involves
redefining processes as patterns of relationships connecting organizational
members with people outside the organizations. SPEED,QUALITY OF
SERVICE,OVERHEAD COSTS are the important competitive issues that
reengineering can address.
12.12. Risk managementIn risk management, aprioritization processis followed
wherebythe risks with thegreatest loss and thegreatest probability
ofoccurring are handledfirst, and risks withlower probability ofoccurrence and
lowerloss are handled indescending order.
13.13. em ent ma nag C risis often t e men ocus on anag ng f m t ro cove r
eCrisis ludes s ions to r public inc c relat o i e t ssure publ damag d a very any
e a n t re c o e g ima holders ay. tha Thre o e stak underw comm risis on t : is
ts are s of c the ele men efinition to st d threat (b) the mo a d (c ) n (a) a tion,
rprise, a ganiz t of su time. or en n e lem t decisio r a sho
14.14. It includes forecasting potential crisis and planning how to deal with
them. For example, how to recover if your computer system completely fails.
Hopefully, organizations have time and resources to complete a crisis
management plan before they convert in stress.
15.15. Knowledge management Knowledge Management programs are typically
tied to organizational objectives such as improved performance, competitive
advantage, innovation, developmental processes. From management point of
view , knowledge workers are those individuals whose jobs are designed
around the acquisition and application of information .
16.16. Security management is a broad field of management related to:
Assets management, Human resource safety function. It is the set of
functions that protects telecommunications networks and systems from
unauthorized access by persons
17.17. Newer organizational design and challengesTwo newer organizational
Virtual organizationdesigns that have emerged recently are : Boundaryless
organizationChallenges in organizationAre:Managing
workforceDiversity,Providing effectiveLeadership
18.18. Virtual organization Network of independent institutions, businesses or
specialized individuals, who work together in a spontaneous fashion by way
of information and communication technology, in order to gain a competitive
edge. They integrate, unify their core-competencies and function as one

organization
19.19. External boundariesVertical Horizontal A structure that is not
defined by or limited to Boundary lessorganization
20.20. INCREASING QUALITY CONSCIOUSNESSIt has generated the adoption of
following practices:(1)emphasis on total quality management (TQM)
(2)moving towards six sigma
21.21. Emphasis on TQMIt can be defined as a philosophy of management
driven by continual improvement and responding to customer needs and
expectations.Total quality is called total because it consists of two qualities:
quality of return to satisfy the needs of the shareholders, Intense focus
on and quality of products.Features of TQM: Improvement Processfocused Concern for continual improvement customer in the quality of every
thing the organization does.
22.22. Six sigma constitute of23.23. Theory z- American style of Management (Type A) Japanese style of
Excellence Movement Theory- Getting things done onManagement(Type B)
Time Staying Close to The Customer Promoting Autonomy And
Entrepreneurship Maximizing Productivity through People Using A Hands on
Approach to Managing Doing What The Company Knows Best Maintaining A
simple, lean, Organizational Structure Promoting both Centralization and
Decentralization simultaneous
24.24. Globalization Ownership Environment Strategy Formulation Ethics
and Social Responsibility Workforce Diversity Change Empowerment
Information Technology
25.25. Globalization and management Management in 2000 and beyond will
view globalization in all its aspects: Speed Proximity attitude
26.26. Political stability. Incentives(reduced interest on loans, tax subsidies,
market protection etc.) to attract foreign business. Reduced international
trade barriers imposed on international trade( in the form of tariffs, quotas,
export restraint agreement and by-national laws).
27.27. Value systems The social and Ethical beliefs Understanding and
interpretation of various symbols and different languages spoken by people
of different cultures
28.28. Development of organizational structures- 1. The ever-changing
environment 2. Its increasing size and complexities 3. The changing needs of
its employees 4. Multiple goals to be mutually satisfied rather than satisfying
a single goal
29.29. Increased emphasis on human behaviors-o Job analysiso Transaction

Increasedanalysiso Management by Objectiveso Management by exception
attention on Management of change
30.30. He, besides being a specialist in his Qualities of the future managers
area of specialization, must also posses requisite knowledge about other
Without emphasizing on a single goal, he must areas of management.
maintain a balance among the multiple organizational goals keeping in
Various the mind the impact of the various environmental changes.
managerial skills should be possessed by managers at all levels Managers
vision should be clear, he must be able to absorb future information,
distribute it throughout the organization , make and implement the decisions
based on this information.
31.31. a According to Adrien Furnham,a professor of Psychology at the
University college of London, Good managers in the 21st century should
understand conditions and human needs. They should realize that
frequently the heart rules the head and should know what this means for an
organization.
32.32. MANAGEMENT BY STEPHEN P. ROBBINS, MARY COULTER AND
NEHARIKAReferences MANAGEMENT BY STONER MANAGEMENT BY
WEIHRICH,CANNICE AND KOONTZVOHARA SIXMANAGEMENT BY JAMES A.
F. STONER AND CHARLES WANKEL; THIRD EDITION MANAGEMENT BY
R.W.SIGMA PROJECT MANAGEMENT BY JEFFREY N. LOWENTHAL
PRINCIPLES OF MANAGEMENT BY DR. NEERU VASISHTHGRIFFIN, FIFTH
EDITION GOOGLEWIKIPEDIA
33.33. THANKS TOSIR AND ALL THE LISTENERS
What is Business Sustainability?

Business sustainability is often defined as managing the triple bottom line a process by which
firms manage their financial, social, and environmental risks, obligations and opportunities. We
extend this definition to capture more than just accounting for environmental and social impacts.
Sustainable businesses are resilient, and they create economic value, healthy ecosystems and
strong communities. These businesses survive external shocks because they are intimately
connected to healthy economic, social and environmental systems.
The Process for Identifying The Top 10
Fifteen representatives of leading organizations across different sectors gathered for a one-day
roundtable in Toronto to identify the top 10 sustainability issues facing Canadian business for
2011. This Leadership Council, which convenes annually to set priorities for the Network for
Business Sustainability, included BC Hydro, Canadian Pacific, Environment Canada, Holcim
Canada Ltd., the International Institute for Sustainable Development, Industry Canada, The
Pembina Institute, Research In Motion Limited, SAP Canada Inc., Suncor Energy Inc., TD Bank
Group, Teck, Telus, Tembec, and Unilever Canada Inc. These firms identify global priorities
from the Canadian perspective, to ensure that the priorities have global relevance. These
representatives engaged in a 3-stage process:
1. Identifying their own individual issues;
2. Aggregating and refining the issues into meaningful categories; and,
3. Ranking priorities by importance.
This process yields a set of issues that is representative, prioritized, and agreed-upon. Current
and past priorities for the Network for Business Sustainability can be found here.
The evidence is in: Firms that invest in sustainability are no worse off financially than those that
do not.1 Plus, their employees, customers, and investors are happier and more committed.2 Even
the simplest of activities, such as philanthropy, can yield financial rewards.3 So, why isnt every
firm jumping on the sustainability bandwagon?
We asked 15 organizations that are on the leading edge of sustainability to tell us why. In fact,
every year, we assemble representatives from leading corporations in different industries to
brainstorm and discuss the reasons why Canadian firms dont take action on social and
environmental issues. The top 10 reasons they identified are listed below.
Top 10 hurdles for business sustainability in 2011
1. There are too many metrics that claim to measure sustainabilityand theyre
too confusing.
2. Government policies need to incent outcomes and be more clearly connected
to sustainability.
3. Consumers do not consistently factor sustainability into their purchase
decisions.
4. Companies do not know how best to motivate employees to undertake
sustainability initiatives.
5. Sustainability still does not fit neatly into the business case.
6. Companies have difficulty discriminating between the most important
opportunities and threats on the horizon.
7. Organizations have trouble communicating their good deeds credibly, and

avoid being perceived as greenwashing.
8. Better guidelines are needed for engaging key stakeholders, such as
aboriginal communities.
9. There is no common set of rules for sourcing sustainably.
10.Those companies that try leading the sustainability frontier often end up
losing.
We discuss each of these hurdles below.

1. There are too many metrics that claim to measure sustainabilityand
theyre too confusing.
What gets measured gets managed. Issues or goals without obvious metrics are much harder to
tackle. Sustainability initiatives can be particularly difficult to measure because they often affect
people and society at a macro level, and their organizational implications are unclear. Further,
their impacts are not immediately obvious and they depend on who implements them and how.
Many suites of metrics and measurement systemssuch as the Global Reporting Initiative,
ecological footprint, and life-cycle assessmentcurrently exist to help managers measure their
sustainability.
The range of options often results in more problems than solutions. What makes one metric or
suite of metrics better than another, and how can businesses judge which is most appropriate for
their needs? As one manager said: Its important to know which sustainability metrics are most
meaningful and integrate them with traditional business metrics. Managers recognize that
different metrics serve different purposes: some are most relevant to particular sectors, such as
manufacturing, while others focus on specific issues, such as carbon. Some metrics focus on
products whereas others focus on organizations; some set common benchmarks, whereas others
inspire leadership. It seems as if there is a veritable cacophony of metrics, standards, and
certifications. Even leading businesses need guidance on which ones will help them benchmark,
signal their commitment to sustainability, and identify areas that need improvement.
2. Government policies need to incent outcomes and be more clearly
connected to sustainability.
Governments have several tools at their disposal, such as taxes, regulations, and markets, to
encourage businesses to steward environmental resources. However, they are often applied in
piecemeal fashion, poorly measured, or used ineffectively. Businesses and management often
want to do the right thing, and appropriate policy can support this mindset. Leading businesses
want policies that push all organizations to improved sustainability outcomes. In doing so, firms
can put into place long-term measures and innovate new products and practices that move them
closer to those goals.
Businesses also want to know the best practices for collaborative consultation and policy
development involving government, business, and other stakeholders. They do not want to be
adjuncts, but to work with government collaboratively and meaningfully. One manager asked,
How can we build bridges between government and business that will allow for knowledge
sharing and a solid foundation for future business sustainability-related policies? In other
words, business wants to be involved in the process such that the resulting policy is effective,
efficient, and consistent with both the needs of business and society.
3. Consumers do not consistently factor sustainability into their purchase
decisions.
Many decisions consumers makefrom what food to buy to how much energy to useinvolve
sustainability-related tradeoffs. We constantly trade off different types of impacts (social,
environmental, or economic) at different levels (personal, communal, or societal) over different
time periods (now or later). In the words of one manager: Many people demand cleaner energy
but refuse, for example, to allow windmills in their community. How can we help consumers
make informed tradeoffs when it comes to sustainability?
Understanding how consumers value sustainability in the context of other product attributes
would help businesses develop products that meet their needs. Further, there may be a role for
business in educating consumers on issues and product attributes, resulting in more informed
purchasing decisions.
Still, this doesnt just apply to consumersit also applies to investors. Shareholders and lenders
must decide where to invest their money. How do they choose between different companies,
which requires trading off one set of corporate attributes for another? Should they invest in a
power producer using cheap coal or another moving towards renewable or alternative energy?
Understanding how people make tradeoffs will help businesses make sustainable choices.
4. Companies do not know how best to motivate employees to undertake
sustainability initiatives.
Survey research shows employees would rather work for sustainable firmsand some would
even forego higher earnings to do so.4 Firms must better leverage this knowledge to attract and
retain the best employees. To do this, sustainability managers want to know which employee
incentive plans are most valued, and so likely to be effective. One manager clearly identifies this
need, asking: What does the cumulative experience of business tell us about how best to
incorporate sustainability performance targets into employee incentives?
These mechanisms should allow firms to leverage their sustainability initiatives and values,
building the right capacity internally and ensuring progress is made towards sustainability goals.
An enduring commitment to sustainability, one that can only be achieved over a long time
horizon, may separate those companies that are truly committed to leading change from those
that are only keeping pace with their peers. One manager at a leading firm points out: Its easy
to generate ideas and start initiatives at the grassroots level. But how do we sustain that
momentum for fruitful innovation across the entire organizationand over the long term?
However, such commitment requires the buy-in and sustained interest of employees. In this way,
good employees attract other good employees, and the firm moves towards a virtuous and
enduring cycle of sustainability.
5. Sustainability still does not fit neatly into the business case.
Most sustainability managers are beyond asking if it pays to be good (or green). However, they
are often called on to explain and defend sustainability activities. Current financial decisionmaking does not fully capture the value of sustainability-related investments. These investments
are often based on long-term and intangible rewards, whereas many investments made are based
on the short-term impact on the bottom line. One manager pointed out that the payback period
for sustainability investments often exceeds that required to approve projects. Sustainability
executives may resort to intangibles to justify corporate environmental and social investments.
Initiatives are often treated therefore, as off-grid or one-offs, rather than a recurring
component in all decision-making activities. Another manager said: We need to be able to
value brand, reputation and the externalities arising from our business activities.
Sustainability managers want to know exactly how returns on sustainability investments can be
measured and seen. What are the short-term and long-term ways to assess and justify these
investments? How can sustainability executives demonstrate the value of sustainability within
the decision-making language and framework of finance executives? Until sustainability
becomes accepted as a legitimateand value-creatingactivity, it may lose out to projects that
are more easily understood and evaluated.
6. Companies have difficulty discriminating between the most important
opportunities and threats on the horizon.
Numerous threats are looming for businessfrom financial crises, to climate change, to local
land issues, to health pandemics. It is difficult to judge which of these risks warrants attention,
and often more challenging to prioritize them. Businesses need guidance on how to evaluate the
materiality of an issue, both for disclosure purposes and for strategic planning. One manager
points to the complexity facing their business: There are myriad opportunities and risks we
could tackle as an organization. We need to understand where to focus our attention to advance
our practices now and in the future.
Equipped with an understanding of which risks and opportunities are most material to their
organization, managers can then prioritize material issues, translate them into internal strategies,
and communicate them to stakeholders.
7. Organizations have trouble communicating their good deeds credibly,

and avoid being perceived as greenwashing.
Claims made by some businesses and NGOs regarding sustainability are perceived to be
credible, whereas others are met with skepticism or disbelief. The different reactions are likely
related to attributes of the organization making the claimsits size, its structure, its actions, or
its motivations. Even leading businesses are wary of touting their successes, as such
communications can invite public criticism for the things that they arent doing.
Companies want to know how to communicate their message credibly, so the integrity of their
efforts is clear. This issue is critically important as most of the benefit of CSR activities can
depend on whether stakeholders believe the message to be truthful. One manager noted: Polls
show people consider academics and NGOs more credible than corporations and government.
What sincere action can organizations undertake to foster public credibility?
8. Better guidelines are needed for engaging key stakeholders, such as
aboriginal communities.
Many businesses have experienced very positive interactions with aboriginal groups, resulting in
benefits for both parties. Other businessessometimes operating in the same regionshave had
negative interactions. One manager recognizes the unique viewpoint that is required to navigate
such situations: Organizations need to understand the aboriginal perspective on sustainable
developmentwhich extends the traditional view of sustainability in resource development
beyond the environmental, social and economic pillars to include cultural and spiritual
dimensions.
By building a more robust understanding of the aboriginal perspective on sustainability, the
relationship between the business and the aboriginal community can be built on mutual respect
and trust, which is more likely to lead to positive engagement. Furthermore, this understanding
may inform the business community of new approaches to sustainability and stakeholder
engagement, both within the aboriginal communities and outside of them.
9. There is no common set of rules for sourcing sustainably.
Businesses want to purchase products and services that are environmentally and socially
responsible. But the process of identifying sustainable suppliers is not always straightforward,
and the means for comparing products is not always obvious. Sustainable sourcing decisions may
also require industry-specific knowledge and practices, or data that just may not be available.
Identifying a set of best practices for sustainable sourcing would provide organizations with
targets for benchmarking as well as guidance on managing their supply chains. It would also
yield an opportunity for leading businesses to showcase their good practices. One manager says:
Sustainable sourcing is key for us. How can we get people to understand what it means for our
business? Are there lessons from what weve done that can help other industries? Sustainable
sourcing is not just about sustainabilityit is also about managing and mitigating risks. This
issue is clearly one in which the business case and societal good are aligned, and yet many
businesses remain perplexed about how to manage their supply chains sustainably.
10. Those companies that try leading the sustainability frontier often end
up losing.
Leadership in any fieldsustainability includedcarries with it some clear rewards. For

instance, leading organizations can attract new customers, and foster loyalty with employees and
community stakeholders. But there are also risks associated with being on the cutting edge. For
example, sustainability leaders may overinvest in technologies that never yield the expected
rewards, be overtaken by a second-mover who builds on the leaders ideas to leapfrog into the
lead, or lose the support of internal stakeholders with shifting corporate priorities.
One manager highlights this paradox: Being a leader means sticking your head above the
parapet: it exposes you to criticism internally and externally, but the potential rewards are great.
Executives introducing new sustainability targets have to do their homework. The ability of
companies to benefit from the potential upside and deflect risks will be key to ensuring that there
are always businesses willing to raise the bar.
The Business Model for the 21st Century

In most discussions about the business case for sustainability, the emphasis has been on the
bottom line. The value of sustainability has been analyzed from every directionrevenues,
profits, and share pricesand it is clear that, in some circumstances, sustainability can pay off.
However, sustainability is more than just about firm-level benefits. Businesses, business schools,
and society recognize that the current course of production and consumption cannot be sustained
within our natural resource limits.
Businesses develop the products and services consumed by individuals around the world. The
vast resources extracted by business for societys use have created waste streams that find their
way into our land, air and water and compromise human health. New businesses are being built
on an understanding of the problems that have emerged through the 20th century. Increasingly,
old businesses are evolving to use fewer resources, intensify the resources they do use, and
renew and reuse the products they sell. New relationships are forming between businesses as
firms realize synergies from interdependence; one firm can profit from anothers waste, or
several firms can benefit through flexible supply chain relationships built on common interest.
The 21st century will reveal a new paradigm in which business is no longer separate from society.
Realizing the new business-as-society paradigm will require the efforts and ingenuity of
organizations across sectors and industries. It will challenge the current generation of business
leaders to apply their hard-won knowledge to novel problems, and the next generation to cut
their teeth on issues of unprecedented importance and complexity. Those businesses that
identified the hurdles and challenges described in this report, along with those businesses that
aim to overcome them, will help to shape this new business landscape. The concept of
sustainability is undeniably compelling. Done right, both business and society benefit.
The management of changes in rural area is rather sophisticated

process in which the integration of various management models and
principles can be met. The article deals with the changes peculiar to
rural areas and the factors of internal and external or real-life
environment that mostly impacts on these changes. The endogenous
model of changes in rural area has been analyzed more widely, and the
scheme of the development of rural area has been given.
Attributes of the bottom
-up
principle have been identified, the expression of these attributes in

the management means of changes initiated by the rural development
actors and the analysis of the forces stimulating and impeding these
changes made the basis to determine and substantiate the combined
elements of the model of rural area change management using the
bottom
-up
principle.
The investigation aim is to justify the model of the rural area
change management using the bottom
-up
principle. Strategy of local activity group of Kretinga Municipality

titled The Improvement of Life Standards
in Kretinga Municipality in 2007 2013 has been chosen for empi
rical investigation. The method of real-life analysis of the forces has
been used for the identification of people involvement into the forces
stimulating and opposing the preparation of the strategy. These forces
have been estimated in accordance with the
scores of the impact strength. The model of the rural area change
management using the bottom
-up
principle has been made on the basis of the explicit methodology of

strategic management integrating the results of empirical analysis.
The identification and validation of the model elements has shown
that the model can change if governed by the goal of the change
management and other factors of internal and external or real-life
environment. It has been determined that the rural area change
management using
the bottom
-up
principle is based on the change management through the accurate

and precise implementation.
Key words:
rural area, change management,
bottom
up
principle, endogenous development JEL classification:
M100; M380.
Introduction
The changes in rural areas are closely related with dynamic,
constantly changing conditions of rural internal and real-life
environment that should be managed in order to avoid the
consequences of negative changes. There are many investigation data
of changes in management organizations, management models, etc. in
management literature (
Clement 1994; Zakareviius, Hannan, 2003; Vanagas, 2007; Melnikas,
Smaliukien, 2007; Raipa, 2010 et al.).
Unfortunately, the management of changes in rural areas is analyzed
insufficiently. Mostly the economic and social rural development
(Jasaitis, 2006;
Baleentis, 2011), rural development and environment protection
(Aliauskas, Jakien, Jankauskien, 2007), and other spheres of
sustainable development (Dapkus; Lisinskien; ukys)
are analyzed. Flora, Sharp, 1997 investigated the aspects of the
development of rural communal organizations, the dichotomy and
interaction of cities and villages, the changes of rural social
infrastructure, etc. One of the models of the rural area management
changes is the endogenous development model that is peculiar of the
change management using strategic means the basis of which
consists of the driving forces of rural area, and the utilization of the
potential of local resources to reach and implement strategic
priorities. Because every rural area is unique due to the behaviour of
the rural development actors, the abundance of local resources,
values, culture and problems, thus the changes
of the latter elements should be managed in the limits of the internal
country structure using the bottom
up principle.
Strategic directions of the European Union and the national
agricultural and rural development policy are oriented to the
improvement of the life quality of rural inhabitants and the economic
well-being while solving social and cultural problems, implementing
the integrat
ed strategies of rural development prepared following one of the main
bottom
up principles of
LEADER method and its utilization. Complexity of the rural
development policy, expansion of the EU, and intensification of the
local initiatives reveals the demand for intensive collaboration
between the scientists and local people. The determination of new
possibilities, the models of change management and strategic
directions, as well as the formulation of problems and problem
solutions requires some knowledge, and on the side of local population
readiness to study, participation and planning of the country future.
Therefore, the theoretical concepts of the rural area change
management should be analyzed more widely and after their utilization
during empirical investigation the rural area change management

model should be prepared.
The investigation object
is the rural area change management.

The investigation goal
is to substantiate the bottom

up model of rural area change management.
The research tasks
are as follows: 1.
To analyze the theoretical concepts of the rural area change

management. 2.
To disclose the local forces impacting on the attainment of change

aims.
3.
To determine and substantiate the elements of the model in

accordance with the principle of the rural area change management.
The investigation methods
used are as follows: Analysis and synthesis of scientific literature

investigating the principles of organization change management and
their usage in the context of the rural area change management.
Induction and deduction methods identifying the actors of rural
development, starting from the highest down to the lowest local level
(national institutions, and the institutions of local authorities: district
municipal administration, township, local activity group, organizations
of country people community, various kinds of clubs including women
and youth clubs, other non-governmental organizations, farmers,
businessmen, country folk, etc.) and the means used to manage the
changes in the rural areas (plans, programs, strategies, meetings,
rural holidays and festivals, etc.). The pilot area Kretinga Municipality
has been chosen for the analysis. After the determination of the rural
development actors and the means they use for the change
management the expressi
on criteria of the bottom
up principle
has been investigated. It has been determined that
the expression of the bottom
up principle is the strongest in the local development strategy titled
The Improvement of
Life Standards in Kretinga Municipality in 2007 2013 prepared by the local activity group, where great attention is
given
to the involvement of the population into the process of the strategy
preparation. The analysis of the
force-field
has been fulfilled trying to define the opposing and stimulating forces
by involvement of the local community into the strategy preparation
process. Theoretical and empirical tests allowed to appear the model
of the rural area change management in
accordance with the bottom
up principle.
Theoretical concept
s of the rural area change management in accordance with the
bottom
up principle
Analyzing the theoretical concepts of the changes many scientists

(Stokus, 2005; Vanagas, 2007; Hoag, Pritchard, Cooper,
2002, et al.) investigate the changes in the organizational level.
Analyzing the changes in the rural areas these changes are
understood differently thus it is necessary to consider and discuss

their conception, the origin of causes and management methods.
Lithuanian scientists Bagdonas and Bagdon
ien (2000) have estimated as the changes every rise and
disappearance (i.e.,
structural changes) of the new elements and their relations, and the
transformations of the
modus operandi
of individual elements and their groups, modification of operating
parameters of management subsystem, displayed in its behaviour.
P. Zakareviius (2003) after the generalization of the research of the
other authors (Quinn, 1980, Magnusen, 1981, Carnall,
1990) has defined as the changes all the transformations that undergo
trying to improve and change in essence one or other elements of the
standard lifestyle. These changes are governed by the modifications in
the change processes or due to the conditions of the external and
real-life environment. Investigating the changes undergoing in the rural
area especially significant becomes the level of the formation of the
change reasons and its bottom comprehension. The bottom
approach should be understood as the opinion of the rural
community itself about the rise of the changes, management
necessity and other reasons in the area. The importance of the
internal changes in the rural area is greatly significant, and their
management is a rather complicated process. The management
involves not only the identification of the changes and the
comprehension of the management necessity, but the planning of the
changes, analysis of the resources, the promotion of the initiatives of
the rural development characters, and the incitement of cooperation
and the partnership relations. The change management is an elaborate
process because it needs specific knowledge, competence, and the

motivation of the rural development characters. In order to
successfully adapt to the environmental changes they should be
initiated in the locality itself. All the characters of rural development
participating in the local level are involved into the process of the
adoption of the strategic solutions and on the whole into the
management of these changes. E.
Laumenskait and A. Vasiliauskas (2006), P. Juceviius (1998) have
stated that the management of strategic changes is
not an inert activity but the search of the new ways of activity and
their employment into the practice. Because of these reasons the
strategic changes necessarily influence many people acting in social
economic system and raise the requirement to all of them to change
as individuals. When the changes take place for a longer period of time
not only the activity and behaviour of the people transforms but the
personal beliefs, attitudes, moral values, perception, etc. Only on the
understanding that in parallel with the strategic goals of the locality
the behaviour and thinking of the people change these goals can be
successfully implemented. The object of the rural area management is
the processes enacted in the elements of rural locality. In such a case
when the changes are planned the integrated strategy of the area
development becomes the management instrument. Therefore, the
controllable changes are those ones that correspond to the aims of
the area strategy oriented to the sustained and long-term perspective.
Meanwhile the strategy aims depend on the type of the changes (see
Table 1).
Table 1. Classification of changes
(according to Vasili
auskas, 2001; Stokus, Berinskien, 2005; Arimaviit, 2009)
Criterion of classification
Content
Types of changes
technical; organizational; economic,
political, social, cultural,
demographic; sectorial.
Extent
micro changes, macro changes;

global, local.
Complexity
partial, systematic.
Level of reason formation
top initiated, bottom initiated.
Time and process
evolutionary, revolutionary; radical,

progressive, initiated; planned,
unplanned; spontaneous,
manageable; qualitative, quantitative,
mixed.
Management frequency
complex, partial; episodic, periodic,

trivial, necessity. causal, resultant.
Speed
Environmental
slow, rapid.
internal (endogenous); external
(exogenous); mixed (neoendogenous);
positive, negative
Rural area change management is understood as the strategic one

when it embraces three stages that are closely related with each
other. They are system strategy analysis, the creation of the strategy
itself and its implementation. Also the strategic change management
is understood not as the non-recurring episodic activities, but
constantly occurring and innovative ones. Efficient coordination of the
rural area changes with the changes of the rural internal and real-life
national situation oriented into the lasting perspective utilizing the
local potential and competitive priorities is peculiar to the strategic
management. Changes occurring in rural areas can lead to both
exogenous and endogenous factors. Exogenous factors that cause
changes in the area can be social, technological, economic, political,
and competitive environmental factors (e.g., market, competition,
etc.). Endogenous development is the form of changes, which takes
place more with the aid of more internal development pulses, based
on local values, entrepreneurial sp
irit and local resources, decentralized, bottom
up init
iatives and emerging solutions because this is the inner potential of
rural areas costeffective (dynamic and comprehensive) use (Atkoinien,
2008). Endogenous development, can also be defined as the type of
development that is oriented in time and managed inside the social
system (rural area), within the limits of the community.
V.Atkoinien (2008)
attributes the endogenous development factors to:
Rural human, economic, natural and cultural resources and their

alignment.
Rural development actions and decision-making innovation.
Rural development actors competencies and skills necessary to "help

yourself".
The formation of identity-building of rural area capital (development

potential).
Citizen involvement in the decision-making process.
Multifunctional use of rural development decisions.
Horizontal and vertical partnership and cooperation promotion. The

management of endogenous factors and their changes can effectively
determine the local competitive advantages, the local resources and
their development with external support from the public financing
programs.
Rural areas change management according to the bottom
up principle may be implemented through the rural area social,
economic, natural resource analysis, SWOT analysis and the
development and implementation of the local development scenarios,
the estimation of rural vitality, community education programs, etc.
Preparing the changes in strategies of the rural areas, in particular,
the forces behind these changes are analyzed in the first instance.
They are found to be the best way to solve the problems they face in
determining the strategic direction for the development area. Of
course, the strategic changes of each area are caused by different
reasons, but there are common grounds, which can be classified
according to the territorial capital components:
Natural resources and their management

are natural resources (terrain, soil, flora and fauna, water resources,
climate), as well as the public services, infrastructure, historical and
architectural heritage related to those resources.
Locality culture and identity
are the system of values of the local population, rural history and
interests of the people, their attitude, recognition of forms, etc.
Locality culture and identity
are the system of values of the local population, rural history and
interests of the people, their attitude, recognition of forms, etc.
Human resources
are the area-resident men and women, families, demographic and
professional characteristics of the population and social structure.
Technological experience and skills

are technological mastery, the ability to develop technologies and to
improve them.
Local institutions and management, business rules, community,

norms and values
. This component also includes the financial resources (institutions,
businesses, residents) and their management (savings bonds),
because the local
government can not distance itself from the formal support of local
actors activity (public and private funding).
Activity and business enterprises

are economic and social activities, their geographical location, and
structure.
Market and external communication

is involvement in various markets, trading and sales networks.
The area's image and perception

as local residents are aware of their place of residence and image as
it looks externally to the different view of passing tourists, arriving
guests, residents of neighboring areas, etc. While preparing integrated
change management strategies, there is always the question which
rural elements of the system should be included (see Figure 1). In the
local development strategy, business sectors should be formulated
according to the priority goals. Such choice is determined by the
location identity and its competitive advantages.
Fig.1. Theoretical scheme of the system elements of the development in rural
areas
K. Lewin (1951) recommended the use of force
field method to environmental forces which have an impact on the
decision making or the identifying of the situation. He said that each
situation is like a temporary equilibrium, which is determined by the
two different forces: the stimulating and the impeding ones. The
stimulating or positive forces are the forces that transform the current
situation, and the impeding or negative forces are those that keep the
actual situation (the
status quo
in Latin), or worsen it. Defining the objective or problem of the
changes in the rural areas, it is necessary to assess: the available
resources, traditions, personal interest, relationships of the actors of
rural development, intercourse, social or organizational
purposefulness, attitudes, laws, individual or group needs, current or
past practices, management policies and standards, values, desires,

prices, rural development
participants
roles, events, demographic problems, etc. The identification of the
factors encouraging the changes in the rural areas stimulates
creativity, helps to define the vision (the goal or proposed change), and
the forces necessary to facilitate and the weaknesses that need to be
reduced, provided that the change is successfully implemented.
Integrated local economy Natural Economic Social (cultural) Political
(institutional) Internal elements of rural system (endogenous factors)
External elements of rural system (egzogenous factors)

- Concentration centres of workplaces; - Investments. - Policy; - L e a l
environment.
B o
u p
t t o m p r
i n c
i p
l e
Global organizations and technologies

-
Environmental services; -
Environmental safety; -
Landscape; -
Living environment; -
Natural and cultural heritage. -
Traditional local products; -
Recreation and rural tourism; -
Agriculture; -
Crafts; -
Economical farming; -
Alternative activities; -
The local market;

Material:
- Objects and services of rural social infrastructure.
Non-material:
- Human capital; - Rural culture; - Education; - Employment; Traditions; - Values and principles; - Rural history.
Structures of rural public administration; - Community relations; Partnership and cooperation.
o p d o w n
p r i n c
i p
l e
It is really important to manage human resources, their flow in the

area, improving the system of motivation, the development of values,
the ability to adapt to environmental changes, etc. It is necessary to
define common objectives with all the actors of rural development, to
identify an appropriate and suitable model for all interested parties in
the change management to help the management process change that
engages all stakeholders in rural development actors. Many modern
scholars of management (Duck, 1993, Kotter, 1995; Hammer, 1996;
Camps, 1998, Clement 1994, and Hannan, 2003) recognize that there
are no fully universal change management models, because the
changes take place in different ways due to different environmental
factors. In each case, in accordance with the common methodological
provisions the application of specific, appropriate site-specific
changes takes place in management practices. Strategic change
management of the area includes two closely related levels: the
organizational level, i.e., the exchange of people management and the
individual level, i.e., the self-government. Therefore, from this
perspective, changes in distribution are twofold: to be determined in
accordance with the methodology or to be further developed. In
accordance with the approach, strategy changes include only those
actions that are classified as from "above", i.e., at the level of the
organization to the people who perform them. To be developed on the
basis of point of view, the policy changes include the selecting of a
new strategy and its implementing not only on the organization level
but also at individual level when the people implementing the strategic
changes themselves are directly involved in the experiments and
discussions combining different interests, etc
. (Laumenskait, Vasiliauskas, 2006).
Regardless of which change management model we choose, the
contents of the management of all the changes consist of several
closely related elements, processes, actions, such as the perception
that change management requires the know-how of theoretical and
practical knowledge, the willingness and intention to change for the

rural development actors, as well as the effects of changes in all
areas and items within it are very high and they need to manage the
selection of appropriate methods.
Environmental forces affecting rural areas under the management of
change through bottom
up analysis
Rural development actors managing the changes in rural areas

continue to face the positive and negative environmental forces
affecting the selection of qualitative change management methods /
tools. Identification of all rural development actors, methods and
means by which they manage the changes, disclosed that most of the
'bottomup principles features of
expression, has the local development strategy prepared by the local
action group, where the greatest emphasize is on the involvement of
the most citizens in decision-making process. For the analysis
of f
orcefield method, the
strategy of local activity group of Kretinga Municipality titled "The
Improvement of Life Standards in Kretinga Municipality in 2009
2013
has been chosen. The aim of the analysis is to establish one of the
"bottom-up
principle features of expression, i.e., the involvement of the

population in the strategy development process.
Fig.2.
The force
field chart of the people involvement into the
development process of Kretinga municipality rural development strategy titled
"The Improvement of Life Standards in Kretinga Municipality in 2009
2013
The imposition of the groups of stimulating forces and impeding

forces, they had been estimated by the strength of 5-point system (5 very strong impact
,4severe impact
,3moderate impact
,2low impact
,1very weak or insignificant effect
).
The force-field of involvement of the rural population into strategy
development process of Kretinga district
Driving forces PROS
Opposing forces CONS
Setting of target issues / priority trends.

(5)
Increased speed of decision-making process.

(4)
Innovation increased decision quality.

(4)
The sharing of responsibilities.

(4)
Horizontal partnership with other rural development actors ensures

the success of the decision-making.
(4)
TOTAL: 21 POINT
Insufficient competence of decision makers.

(5)
Costs and higher time expenditures.

(4)
Fear that the villagers will resist social innovations.

(3)
Decision-makers are scared of the increased responsibility.

(3)
Rural development actors are scared of impact of new methods.

(3)
TOTAL: 18 POINTS
GOAL Involvement of rural population in Kretinga district local development

strategy planning
The assessment of the forces and their influence on the strength

scores showed what change management mode to choose, and
whether the change aim is to be successfully implemented. In this
case the propelling or stimulating force is stronger, but to achieve a

goal, it should be noted that, according to K. Lewin (1951), people can
be involved in the decision-making process in two ways:
by reducing the conflicting forces of change in the plan;
increasing the forces pushing the plan of the changes forward. In the
present case there is a combination of two techniques, such as a
stimulating of driving force, i.e., the target problem / priority setting
policies to eliminate such negative developments as the forces
opposing the fear that the villagers will not allow for social innovation,
and will not want to get involved in the decision-making process. In
this case, involving rural people in decision-making process, it is
necessary to use different methods of involvement and awareness (of
their activities, and production of goods, possibilities to perform
certain functions, and continuity). In summary, there may be slight
errors in decision-making in the development of the strategy "The
Improvement of Life Standards in Kretinga Municipality in 2009
2013.
However, the more rural development actors will be voluntarily
involved in the decision-making process the lower will be the risk that
the strategy of the change management in rural areas is not feasible
or less effective. Utilization of the change management, and positive
stimulating or driving forces to eliminate the impeding or hindering
forces, ensure the greater opportunities for the prompt and effective
realization of the change tasks.
With the help of force
field an
alysis the composite elements of the change management of the rural
areas in accordance with the "bottomup principle of model should be oriented to the change of concerns
about culture, knowledge, perceptions of the actors of rural
development, as well as in promoting change, objectives and the
precise formulation of the distribution of tasks and functions.
The composite elements of the rural area change management in
accordance with the bottom
up principle of the
model
Managing the change in rural areas in accordance with the "bottom
up" principle there is a large and ever expanding management of
concepts, methods, and instrument abundance. On the other hand,
there is a significant gap between the tools of theoretical analysis and
their practical application. In this case, the great importance for the
model of the effective
change management based on the selection of the bottom
-up" principle have both internal and external or real-life environmental
factors. Rural development actors of all levels in order to achieve the
effective performance, and development, should coordinate their
activity objectives and processes with the environment in general, and

depending on the situation should adjust them. When the goals or
targets are transformed into concrete indices or measures and
become the part of the activity of the rural development players and
their internal culture, they are passed on to any interested individual.
Changes associated with the redistribution of powers and
responsibilities, technological processes also affect all the decisions
taken by the management of change for the solution efficiency. Rural
areas change management according to the "bottomup principle of the model is constructed based upon the results
of the theoretical and empirical
analysis (Laumenskait and Vasiliauskas (2006), Juceviius (1998),
Atkoinien (2008) et
al.). The theoretical analysis has shown that this model should be
developed by preparing a strategic management methodology, and
with the aid of empirical analysis the composite elements of the
model were defined. In this way, this model can be adapted to specific
rural areas and specific rural development actors or their groups.
Background model are the integrated operations of the rural
development actors managing the processes in rural areas. As already
mentioned, each actor operating in rural areas apply some of the
'bottomup method approaches in rural
development using specific management practices. These approaches
are characterized by attention to people, and improvement of their
quality of life with concerted measures. That these measures were
effective, the rural development actors analyze the local resources
and the environment in the broad and narrow sense. It is also required
to bring the goals of rural area change management and having a
shared vision, set action policies, and functions in accordance with
the power and competence. At the same time, all the actors of rural
development perform certain functions in rural areas, which according
to figures from the surrounding environment can be divided into
environmental, economic, social, and political (institutional) ones.
These features of rural development actors include four main
dimensions of sustainable rural development and ensure an
integrated, continuous development. After the splitting of the function,
it is appropriate to provide lightweight, easily achievable targets and
initiatives to support their management. For long-term goals, but for
the fear of changes and the consequences of the lack of competence,
shortterm goals can be provided, as well as the quick wins" to achieve the
set plans by implementing a step
-bystep practice.
At the same time, the implementation of changes should be promoted
by including more rural development actors into the decision-making
process. In this way, not only the decision-making responsibility could
be shared, but also ensured the effective communication. The human
culture, understanding of the change management activities and, in
general, about the processes taking place in rural areas are faced
with.
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