Monday, August 17, 2009

customer stock option plan

Customer Stock Option Plan

by jagadish



Q1) what is customer stock option plan ?

Ans) it is the option plan taken by companies in their respective industries under 4c to the end consumers(B2C) , B2B and mergers and acquisitions. this option plan is actually option given to end consumer say organized retail store as stocks

Q2) where can it be implemented ?

Ans) it can be implemented in organized retail stores, end consumers, and B2B and stake holders, e commerce and mobile commerce ( through point systems)

Q3) who is going to be benefited ?

Ans) it is 4c concept so company, consumers, competitors and complementors would be benefited including stake holders, B2B

Q4) should combos be added as an addition to the existing products under csop ?

combos products at once can be implemented under 4c concept by respective industries under respective companies under the industries

Q5) what is the benefit under CSOP for complementors, competitors, company, customer and stake holders ?

Ans) complementors would be benefited by tying up with their value addition products related to companies to generate revenue. complementors by nature give value addition so by giving value addition to end consumers they can create their own name and fame along with the value addition companies through CSOP.

competitors would be benefited because of CSOP for those stocks which are not selling properly in the market place or market space. so by tying up the stocks and promoting them and with CSOP they can promote their stocks and create awareness for their brand image along with competitor company under 4c concept

consumers can be created awareness of the new mutualfunds and other types of shares bonds can be promoted which would enhance the value of the shares as well as companies image under 4c concept

stake holders also will be benefited under CSOP at the time of mergers and acquisitions when losses to stake holders are maximum. stakeholders also would be benefited at the time of winding up by being loyal to their respective companies . that means those stakeholders who stay back with the company say 5 to 10 years down the line.

Company would be benefited by tying up relationship with their respective complementors and competitors under CSOP by promoting with those products which are not selling as good as they should be.


B2B also can be benefited with the same principle of company, the difference lies in quality products being sold, and CSOP will be an added advantage to those B2B companies which are new to the B2B segment


CSOP can be used effectively in e commerce internet by giving stocks to those consumer who frequently use internet for shopping purpose say amazon, ebay

CSOP can be used effectively in mobile commerce by checking up the internet website highlighted in the mobiles say way2 sms


Q6) can csop fail and in which areas it can fail ?

Ans) CSOP (customer stock option plan) can fail only on one basis that is trust between company with complementor or company tie ups

Q7) why csop should be implemented by a company ?

Ans) csop should be implemented by the company due to following reasons

a) goodwill generation
b) promoting sister and complementor company shares
c) sales generation
d) promoting mutual business with competitor/complementor for R&D research

Q8) what is csop doing under 4c concept ?

Ans) 4c concept deals with cooperation between companies to solve industry problems and here promotional campaign of vibrant companies can be promoted through CSOP

Q9) can csop be implemented along with competitor/complementor ?

Ans) CSOP can be implemented with any type of products either competitor or complementor products

CSOP can never be promoted under negative demand of product

negative demand can be defined as demand for company product to reduce its product in the eyes of consumer

under cannabalisation of product also CSOP can be used in order to promote its own better product.


Q10) what are the benefits of csop from a customer perspective ?

Ans) benefits of csop from a customer perspective are

a) get hold of new rising mutual funds, stocks , bonds etc
b) able to know the pulse of the company awareness by end users
c) able to interact with company retail stores to know the pulse of companies which they are getting hold off
d) ability to get discounts in future with the companies through regular purchase - retail outlets and companies

Q11) would customer be benefited under csop and to what large extent under 4c concept ?

Ans) same as above

Q12) would csop affect the supply chain management of company ?

Ans) it would affect only limited supply chain management where existence of database can be generated through ERPs

example : organised retail stores, B2B,

Q13) can csop affect innovation of products/brands ?

Ans) csop affecting innovation can be utilised only in fields

a) personal finance
b) product novelties development (R&D)

Q14) what is the price tag attached to products which are being promoted under csop ?

Ans) price tag that is attached to products which are being promoted under CSOP is novelties to end consumers

Q15) what type of options should be given to customer under csop by company/companies ?

Ans) the type of options should company/companies must give to end consumer are

a) different stock options of different companies
b) product knowledge information about their respective journals , magazines which is beneficial to end user say for

example : kitchen tips, health tips

Q16) should companies tie up with each other under 4c when it comes to csop ?

Ans) companies can tie up with each other under csop for mutual benefit to promote peace and harmony in their respective industries getting for each other research related information which is beneficial for all who are tied up

Q17) what is the role of complementor under csop with 4c as the arsenal ?

Ans) role of complementor under csop

a) promoting quality products along with company if not successful affects csop

b) research along with company to sell under csop

c) financial advise

Q18) how should csop be monitored by the respective company/companies under 4c ?

Ans) through return on investment 4c concept

company is associated with complementor products amount
to whom company is associated
Returns on Investment = returns with
------------------*100 + ----------------------------------------------------
investment share price of that quarter of company

to be checked with companies


Q19) under csop should other industry companies be added up under combo in 4c concept ?

Ans) different industries can be tied out but purpose of csop would be lost out unless they are complementors to the company they are associated with (some or the other way industry companies should be related with main company )

Q20) can esop (employee stock option plan ) be replaced with csop in companies ?

Ans) both are complementary to each other because both are designed to promote revenue for the company one through ideas and the other through sales

Q21) can csop be implemented in rural industry like India ?

Ans) csop in rural industry can be implemented in places like

a) number of satchets purchased in a month (fmcg)

b) borrowing of loans from company

c) promotion of life insurance and being its member

d) being an employee of the company

Q22) how can csop affect the glocalisation in company ?

Ans) glocalisation = company being global + having local flavor

a) promoting cross border information

b) through sales by export import of items

c) promotion of ideas through customers/employees by respective companies

d) research


Q23) what is the limit to which csop can solve companies problems ?

Ans)

their is no limit

its unlimited

think and implement

Q24) what is the role of csop in C2C companies like amway ?

Ans) interpersonal information of ideas is where c2c csop would play a role

Q25) what is the role of csop in B2B, B2C and C2C ?

Ans) promotional campaign and sales generation

Q26) why should csop succeed in companies and what is its future

Ans) csop success can lead to

a) information on ideas
b) increase in sales
c) ad campaigns
d) quality promotions of products/ brands


Q27) In companies who should promote csop ? what is the role of CEO ?

Ans) it should be promoted by board of directors and implemented by cmo (chief marketing officer), cfo (chief financial officer), coo (chief operating officer)

why they

because they are the ones who would get benefited through information generation and knowledge about their company/companies/industry to which they are associated

role of ceo is to see whether implementation is happening or not

END

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