Dynamics and leadership

Introduction

            Leadership can best be described as the spirit and core of any given organization. This is because the leaders of the organization are in charge of running the organization as well as managing the employees of the organization. The leaders, of show ‘u’ care, in this case are entrusted with the communication of the organizations’ vision, goals and ideas not only to the employees but also to the outsiders. The duties of the leader are varied and may go on and on with no particular end. In a nutshell, it is important that the leaders of the organization, who in this case are the regional managers, be aware of their role in the organization as well as how they can utilize this special position for the benefit of the organization.

            To be able to fully achieve the organizations goals, it is important that the managers be made aware of their boundaries as far as power and position are concerned. These two basic tenets define leadership. Only after their roles as leaders have been established are they able to comfortably settle in their roles and to further utilize those particular roles to the benefit of the organization (Bolman & Deal, 2013). The essence is to educate the managers on what and how their roles are in the organization, how to use their leadership position, how to use their position and to work with the outside world and finally, how to evaluate their end performance. Thus, the report will be categorized into four parts that essentially define how successful leaders navigate their organizations. This will be applicable to the regional managers who are in essence the leadership that runs show ‘u’ care.

Part 1

Leadership roles and responsibilities

            In a big organization such as show ‘u’ care, the leadership roles have to be clearly outlined for the managers. This roles aid the managers in handling both the employees of the organization as well as the outside world. In this case, the managers have to constantly put on different hats to be able to handle the different matters that are likely to pop up both inside and outside the organization. These roles have been divided into three major roles.

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Partnerships and Limited Liability Partnerships

Introduction

            Common law has for years acknowledged the existence of partnerships under English commercial law. In fact, partnerships have been in existence for as long as business transactions have been in existence dating back to ancient Roman law that referred to this phenomenon as trade partnerships. However, before the year 1980 that saw the coming into effect of the Partnership Act 1980, the U.K law on partnership heavily relied on case law for guidance. One of the earliest case laws on partnerships included Waugh v Carver (1793) 126 ER 525, 2 HBI 235 where the courts held that the ‘receipt of profits of partnership made the recipient a partner’.

            However, partnership law soon hit a snug of sorts concerning it definition when other types of partners were introduced into the picture such as sleeping partners. These were partners that did not participate in the daily management of the partnership. On one hand, the Partnership act 1980 pointed out in section 1 the fact that Partners are jointly and severally liable, just as they own the property in common. This meant that all partners including the sleeping ones were liable as far as the partnership was concerned (Vermeulen 2003, p.279). Sleeping partners were soon protected under the Limited Partnership Act 1907 which stated that if a particular partnership included sleeping partners, then these partners were entitled to limited liability beyond their investment in the partnership under section 6.

            The introduction of limited liability for the sleeping partners meant that by definition, this type of agreement was changing form and taking on the form of a company. Statute sought to remedy this confusion by introducing the Limited Liability Partnerships Act 2000. This particular statute provided for the fact that partnerships that took on limited liability nature were deemed to have legal personality (Fibbe 2009, p.338). This gave them the same privileges as those given to limited companies.

            Thus, the definition of partnerships and limited liability partnerships has been able to differ not only by virtue of the different statutes that govern them, but also by their creation, existence as well as dissolution.

Creation

Partnership

            A partnership is created under section 1 of the partnership act 1980, when a legal relationship between two people or more carry on a business in the hopes of making a profit and subsequently sharing that profit amongst them. For this to be a partnership, the participants must not have filed papers that identify the entity as either a corporation or a limited corporation company. Once created as a partnership, it can then only be considered as such after the trading has been carried out as was established in Dickinson v Valpy (1829) 10 B & C 128. Statute as well as case law have both sought to expound on the definitions of both what can constitute a ‘trade’ under section 54 of the act as well what encompass the partnership definition (Morse 2010, p.45).

            The law is clear on the fact that the partnership can only be considered as such if there is the carrying on of business in common as was the case in George Hall & Son v Platt [1954] TR 331. Statute provides that there has to be a co-ownership of property and this has to be evidenced in the books as was the case in Re Hulton, Hulton v Lister (1890) 62 LT 200, CA. The sharing of profit is an important aspect in the determination of whether a partnership exists in the first place but is not necessarily evidence that may be used in a court of law for the terms of the agreement to partnership must be outlined as is the case under section 2(3) of the act. Finally, under section 14 a partnership comes into existence where the partners declare the fact that they are indeed partners to that particular business (Cahn & Donald 2010, p.41).

Limited liability partnerships (LLP)

            Limited liability partnerships (LLP) on the other hand are formed under the Limited Liability Partnerships Act 2000. Section 1 (2) of the act goes ahead to state that any particular Limited liability partnership is formed by being incorporated under the act. Unlike, the partnership that is formed upon agreement of the partners, this particular partnership can only come into force when the LLP's certificate of incorporation is dated by the Registrar of Companies. Thus, it is important to note that only incorporation can give effect to this type of partnership. By virtue of section 1 (3), LLPs generally have an unlimited capacity. This means that they have no restrictions placed on their operations and can therefore do anything that any other legal person can do (Blackett-Ord & Haren 2011, p.434). In fact, LLPs take on a partnership nature by not being required to state the purpose of their business unlike other legal entities that are incorporated. These particular partnerships have no restrictions as to the maximum number of members in a particular partnership but have a minimum requirement of two partners under section 2 (1) (a).

Liability

            General partnership is unique in that it has no legal identity or corporate personality that would legally separate it from its partners. This was determined in Sadler v Whiteman [1910] 1 KB 868. It means therefore that the partnership is the partners and n the other hand the partners make the partnership, section 4 of the Partnership Act 1980. This means that the rights as well as the liabilities of that particular partnership also belong to the partners. Therefore, any liability that is accrued by the partnership is enforceable against the individual partners in the partnership. This term is also referred to unlimited liability on the part of the partners which grants debtors permission to go after the partners should the partnership default (Smith & Young 2012, p.143).

            On the other hand, LLPs have legal identities. This means that they are have a continuous legal existence independent of their members. This also means that any liability that may arise from this particular partnership is the responsibility of the partnership and that by virtue of incorporation; the partners/members cannot be touched. Thus, the liability is limited to the partnership only (Blackett-Ord 2007, p.1009).

Dissolution

           The dissolution of a partnership can take place on certain grounds under statute. These are under sections 32,33,34 and 35. The first is if the partnership was set for a particular duration of time and that time had lapsed. The second is if the particular partnership had been set for a particular purpose/venture and that venture had subsequently terminated. The third reason is the death or bankruptcy of a partner in the partnership. However, some partnership agreements have clauses that negate this stipulation meaning that the removal of one partner means that the partnership may continue. Subsequent illegality or an event that may make the partnership illegal may lead to its dissolution. A partnership may also cease to exist where a partner gives notice or where a partner applies to court for a court order for the dissolution of the partnership (Milman & Flanagan 1983, p.120). Upon the dissolution of the partnership, the partners are expected to share whether it is the profits or the losses that arose from the venture.

            On the other hand, the dissolution of an LLP can take place under a number of circumstances. The first is if the name of the LLP is struck off the register as per section 3 of the Limited Liability Partnerships Act 2000. Subsequently, an LLP can be terminated where there are just two members. Given the fact that it is a legal entity, even if one member were leave and the others remain and they choose to continue the LLP, they are allowed to do so. It should be noted that given the nature of the LLP, when the members agree to a dissolution and the LLP becomes insolvent, then creditors can winding up proceedings as they would in a limited company’s case. These proceedings are however under the insolvency act 1986 and the CDDA 1986 legislations (Armour 2001, p.590). Here, the members will then contribute the amount they had agreed upon in the LLP agreement. In this scenario, their personal assets are safe unlike in a partnership agreement.

Conclusion

            Partnership is a commercial law element that has survived the test of time. However, over that period, partnership as a context has evolved creating a gap that required legal intervention. Thus, the emergence of complicated partnerships has led to the creation of a hybrid system that has created partnerships that have taken on legal entity forms, limited liability partnership. This has ultimately been an asset and a big win for the partners who more often than not always ended up losing upon the dissolution of the partnership.

References

Armour, D. (2001). Tolley's limited liability partnerships: the new legislation. Croydon, Surrey, Tolley.

Blackett-Ord, M. (2007). Partnership law: the modern law of firms, limited partnerships and  LLPs. Haywards Heath, West Sussex, Tottel Publishing.

Blackett-Ord, M., & Haren, S. (2011). Partnership law: the modern law of firms, limited partnerships and LLPs. Haywards Heath, Bloomsbury Professional.

Cahn, A., & Donald, D. C. (2010). Comparative company law: text and cases on the laws governing corporations in Germany, the UK and the USA. Cambridge [etc.], Cambridge University Press.

Fibbe, G. K. (2009). EC law aspects of hybrid entities. Amsterdam, The Netherlands, IBFD.

            Liability Partnerships Act 2000

Milman, D., & Flanagan, T. (1983). Modern partnership law. London ;Canberra, Croom Helm.

Morse, G. (2010). Partnership law. Oxford, Oxford University Press.

Partnership Act 1980

Smith, P., & Young, S. (2012). Limited liability partnerships handbook. Haywards Heath, West Sussex, Bloomsbury Professional.

Vermeulen, E. M. (2003). The evolution of legal business forms in Europe and the United States: venture capital, joint venture and partnership structures. The Hague, Kluwer Law International.

Effectiveness on People Management and Organisational Behaviour

Business and management

Business instructor

The jobs that I would consider picking in this case would have to be Business instructor: $47,000, Training & development specialist: $51,000, Compensation & benefits specialist: $47,000, Employee relations specialist: $58,000, Payroll specialist: $51,000. There are a number of reasons as to why these jobs come into consideration.

The salaries that are allocated to these jobs play a very important role in this selection. In the year 2006, the annual household income was at $50,000. This number has considerably gone up over the years. However, this means that by selecting these jobs, then the need to look for substitution income will considerable go low. This is also because a considerable number of Americans have to work two or more jobs in order to maintain an average American house hold. This range of jobs would ensure sufficient income to sustain the basics (Pearl, 1988).

The fact that these jobs can efficiently cater for an average lifestyle means that there is no need to put in more hours by working other jobs (Baron, 1994). This means that there is sufficient time to live a social life including interacting with loved ones and society. If spend wisely such a salary would ensure that there is also a little left that can be spent on the social life.

The nature of these jobs is that they are unique. This means that the probability of keeping such a job is increased (Garnham & Oakhill, 1999). This is because these jobs are not among the common jobs that are popular in the country. These jobs deal with numbers thus are limited to persons with an interest in numbers. The less common a career, the less likely that people will venture into that particular field. This means that unlike an individual in the marketing field, an individual in these particular jobs is not only likely to get a job but also to maintain it.

The information gathered as far as these particular jobs are concerned played a very important role in influencing my decision. Information is knowledge and one would rather go towards something that they are more familiar with. Good research on the internet as well as other sources is sufficient to provide information including the average income expected from each job as well as the requirements that the jobs need as well as those that one is to expect in choosing that particular job.

Fear of the unknown also plays a very important role in influencing the choices. This is in terms of the incomes that come with these particular jobs. What is evident is the fact that despite the unsteady economy and the fluctuating of dollar, the average income of the respecting jobs does not greatly decline (Galotti, 2002). This means that there is some sense of security as far as the salaries are concerned. In this case, the odds of receiving a salary decrease are greatly reduced.

The final reason of choosing this group of jobs lays in the risk factor (Moore, 2005). In essence there is an element of playing safe when choosing these particular jobs. An unsecure economy means that there are a lot of people being retrenched. These jobs ensure that one is not at the bottom of the food chair where they are likely to be sucked along with many others, but rather at a comfortable middle position that is likely to escape the proverbial axe.

References

Pearl, J. (1988). Probabilistic reasoning in intelligent systems: Networks of plausible inference. San Mateo, Calif: Kaufmann.

Baron, J. (1994). Thinking and deciding. Cambridge [England: Cambridge University Press.

Garnham, A., & Oakhill, J. (1999). Thinking and reasoning. Oxford [u.a.: Blackwell.

Galotti, K. M. (2002). Making decisions that matter: How people face important life choices. Mahwah: Lawrence Erlbaum.

Moore, D. A. (2005). Conflicts of interest: Challenges and solutions in business, law, medicine, and public policy. Cambridge [u.a.: Cambridge Univ. Press.

 Mintzberg's Three Managerial Roles

Task 1

Mintzberg's three managerial roles

            The managers’ role according to Mintzberg can essentially be divided into ten common roles. These roles or expectations can be further classified into three broad categories which include the interpersonal, the interpretational and the decisional roles. The managers role in this case will be in reference to UK’s 2013 best performing company, Pets At Home.

Interpersonal role

            The role of a manager as an interpersonal individual requires that the manager act as a figurehead. This means that they have to take on the role of performing any social duties such as the welcoming of the visitors and the hosting of receptions, or legal duties on behalf of pets at home such as the signing of legal documents. In this case they are acting as symbolic leaders of pets at home. It is imperative that the manager know that as figurehead, the employees look up to him. This is because as a figurehead, they represent the employees. As a good figurehead, the leader should not only strive to create a good reputation, but should also cultivate humility and empathy. This means that they have to learn to set a good example at work.

            This particular role also requires that the manager take up the leadership role which includes the directing as well as the motivating of all subordinates. Furthermore under the leadership role it is the duty of the manager to train both current as well as new employees. This duty requires that the manager learn to interact with all employees in Pets at Home (Mintzberg, 2013, p. 23).The leader is responsible for the motivation of all employees under their guidance. Thus, an active manager, as a leader, will always mean that they have active subordinates. As a leader, it is important that the manager know how to select and encourage but also promote and discipline his subordinates. Thus, in this case, the leader should learn how to balance both his subordinates as well as Pets at Homes’ needs in a way that will optimize efficient operations.

Finally, this role requires that the manager constantly act as the Pets at Homes’ liaison person both from within the organization as well as outside the organization. This means that they have to act not only as business correspondents but also as participants in any meetings with other organizations. In a way, the manager is seen as an information and communication center.   Interactions in this capacity are important to Pets at Home for informants will always provide favors as well as information crucial to the thriving of the organization. Thus, it is essential that the manager built and establish good networking skills.

The informational role

            The informational role of the manager requires that they play a monitoring role. This means that it is their duty to insure that they seek and acquire information that is work related. This includes reading reports and other relevant sources as well as attending relevant seminars and training. In this capacity, the manager is in charge of monitoring internal organizational operations as well as external trends events, ideas, and potential pressures. Such Information is valuable for it may help detect changes, problems and opportunities that may be presented for the organization. Monitoring is about establishing and using an intelligence system.

            As a disseminator, it is the duty of the manager to communicate information relevant to the running of the organization to relevant persons and departments. This includes that communication of information/decisions to subordinates through memos and reports (Vaccaro et.al, 2012, p. 29). This requires that the manager be shrewd for sometimes the information that must be communicated may be in such a manner that only the manager might understand, it is their duty to make sure that that information is properly interpreted before it can be handed down for integration.

            Finally, the managers’ informational role involves his acting as a spokesperson whose duty is to transmit information to outsiders. This involves the passing on of relevant organizational materials to the outside world vial reports as well dishing out the organizations progress. In this capacity, the manager has to ensure that the key influencers and stakeholders are kept informed of performances, plans as well as policies. This means that the manager must be an expert in the Pets at Homes’ business. This means that the manager has to take up a human resource capacity in order to sell the organization and its functions.

Decisional role

            The finally duty/role of the manager of any given organization is to play the decisional role. This involves making of relevant decisions that may involve the organization. This requires that the manager be able to identify gaps within the organization and in doing so seek to identify ways to fill those gaps. Here, the manager has to act as an entrepreneur whose role is to identify new ideas as well as initiate new improvement projects in the organization. This includes the implementation of innovations as well as planning of the Pets at Homes’ future (Tengblad, 2006, p.1437). Once the ideas are created, in this capacity, it is the duty of that manager to delegate these new ideas to the subordinates for implementation.

            The manager in this capacity also acts as a disturbance handler. This means that they disputes that may arise from both within and outside the organization and where necessary, they take corrective action. This may involve stepping in to first calm the situation then try resolving the conflict by either re-allocation or removing the problem. This is important for the organization for more often than not they help avert crisis situations in the organization.

            Decision making also requires that the manager be a resource allocator. This means that they have the power to decide where to apply the Pets at Homes’ resources (Rubin & Dierdorff, 2009, p. 208). It involves the drafting and approval of plans, budgets as well as schedules that run the organization as well as set the organizations priorities. In this capacity, the manager is in charge of making all important organizational decisions. The managers’ task in this case is to ensure the basic work system is in place and that program staff overloads such as what to do, by whom, and what processing structures will be used is properly arranged.

            Finally, as the decision maker, it is the duty of the manager to act as the Pets at Homes’ negotiator. This means that they are in charge of defending the interests of the organization. This means that they have to participate as well as direct team, departmental as well as organizational negotiations. This is a very important skill for it is required in the spokesman, figurehead and resource allocator roles for the manager to be able to skillfully navigate his role in the organization.

Task 2

Managerial planning

            Planning is the key element that successful drives any organization. This is because planning is the process of determining in advance what the organization or a particular department hopes to achieve, the duration that will be taken for that particular achievement, how the achievement will be made and at what cost will that achievement come. Planning is important because it is the process used to determine Pets at Homes’ goals as well as achievements by creating provisions for their achievement. Planning can be concluded to be the process of picking a course of action from a given variety of alternatives (Steiner, 2010, p.12).

Types of planning

            Managerial planning involves the determination of the Pets at Homes’ aims. Once determined, it is then imperative to develop premises around the organizations present atmosphere. Once this is achieved, then planning will include choosing a course of action, instigating activities necessary for the ushering of the transformational plans into action, and finally the evaluation of the outcome (Smith, 2013, p.41). Depending on a particular organization and their agenda, managerial planning has often been divided into categories including strategic, tactical and operational planning.

            Strategic planning often occurs at the top level of management in any given organization. This type of planning involves determining of the organizations’ goals as well as how to achieve these goals. It involves a general overview of the organizations objectives, values, vision and objectives (Sarkis, 2011, p.113). Vied as the foundational basis of the organization, strategic planning usually dictates a given organizations long-term decisions. The scope of this plan is likely to range from two years up to ten years. This type of planning is important because every manager at any level of the organization will use this plan as a guide to the decision they make on behalf of the organization. It also influences the organizations internal culture as well as its outside interactions (Davies, 2012, p. 62). Thus, it is imperative that this type of planning is futuristic, robust yet flexible, and must focus on accommodating the organizations future growth. Crucial components of this plan include having a vision, a mission as well as having core values.

Tactical planning on the other hand involves the implementation of the laid out strategic plans. This particular planning usually involves middle and lower management in the organization. It involves the tactics that organization aims to use. This particular planning is usually short range and mostly has a scope of less than one year. It can be described as planning that breaks down the organizations’ broader mission into sizable, actionable activities. This particular planning is best handled by middle-level management. This type of planning is very flexible and can hold anything required for the proper achievement of Pets at Homes’ goals. Components of this planning include specific goals with fixed deadlines, budgets, resources, funding and marketing (Johnson, 2012, p. 498).

            Finally, it is imperative that managers put into consideration operational planning. This can best be described as the daily running of Pets at Home. This plan can best be described as a roadmap for the implementation of tactical planning. However, for this to be able to work there has to be a realistic timeframe in which the plan can operate. This type of planning can best be described as short term objectives plan. The creation of functioning operative planning is the duty of lower management as well as supervisors. This type of planning can be divided into either single use plans for one in a lifetime events or ongoing plans such as rules, procedures or policies.  

Characteristics of planning

            Planning in any given organization can change depending on that type of organizations. This flexibility has allowed different types of planning to adopt specific natures and characteristics. Despite the decision likely to be made by a manager in the organization, there are a number of characteristics that follow these decisions made under strategic management depending on the activity being considered. This is because decisions at any corporate level on a given organization have to be more conceptual, value oriented and less concrete that those made say at the business level of that organization.

            For example, decisions made at the corporate level are usually characterized by great cost, risk and profit potential. Thus, there is need for flexibility as well as stretchy time horizons. Functional level decisions on the other hand involve the implementation of the organizational strategy and are usually short range and low risk thus incur modest costs because the rely on the available resources. Business level decisions on the other hand act as bridges for the corporate and functional level plans. Thus while they are less risky, costly and are potentially profitable than the corporate plans, they are the exact opposite as far as functional level planning is concerned (Brinckmann et.al, 2010, p.38).

Steps in management planning

            Having established the need for a plan, it is imperative that the managers be aware of the steps taken in order to successfully implement an organizations’ /departments’ plan.

The first is to be able to set up goals and objectives that the department. This part of planning includes having a detailed overview of each goal and the reason for its choice, including any anticipated outcomes of goal related projects. Once this is established, the manager has identified resources required for the completion of the goals. This includes both financial as well as human resource. It is imperative that the manager establish goal related tasks that will help drive the project (Freeman, 2010, p.72).

            The goals and tasks then have to be arranged in terms of their priorities. Thus they have to be arranged from the most important to the least important. Once the priorities have been established, the next step would be to create specific timelines in which the goals and tasks have to be established. This should be done simultaneously with the assigning of tasks to individuals in the department (Farndale, 2010, p.166).

            It is very important for a system of evolution to be put in place that will determine the progress made towards the achievement of the goals (Steyn, 2012, p.45). Finally, every manager is aware of the fact that even the best laid plans can always backfire, therefore, it is important for the manager to have a back-up plan.

Conclusion

            The management of any given department in an organization, regardless of the level, is no easy task. It requires that the manager be alert at all times and constantly on the fore front in driving the organizations’ agenda. This means that on top of the general duties bestowed on managers, there is a different set of qualification required in the management of departments and organizations that require a specific amount of shrewdness.

References

Brinckmann, J., Grichnik, D., & Kapsa, D. (2010). Should entrepreneurs plan or just storm the castle? A meta-analysis on contextual factors impacting the business planning–performance relationship in small firms. Journal of Business Venturing, 25(1), 24-40.

Davies, R. (2012). Retail and Commercial Planning (RLE Retailing and Distribution) (Vol. 5). Routledge.

Farndale, E., Scullion, H., & Sparrow, P. (2010). The role of the corporate HR function in global talent management. Journal of World Business, 45(2), 161-168.

Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.

Johnson, K. L. (2012). The role of structural and planning autonomy in the performance of internal corporate ventures. Journal of Small Business Management, 50(3), 469-497.

Mintzberg, H. (2004). Enough leadership. Harvard Business Review, 82(11), 22.

Mintzberg, H. (2013). Simply Managing: What Managers Do—and Can Do Better. Berrett-Koehler Publishers.

Rondeau, E. P., Brown, R. K., & Lapides, P. D. (2012). Facility management. John Wiley & Sons.

Rubin, R. S., & Dierdorff, E. C. (2009). How relevant is the MBA? Assessing the alignment of required curricula and required managerial competencies. Academy of Management Learning & Education, 8(2), 208-224.

Sarkis, J., Meade, L., & Presley, A. (2011). Sustainability in the built environment: factors and a decision framework. Handbook of Corporate Sustainability: Frameworks, Strategies and Tools, 113.

Smith, R. D. (2013). Strategic planning for public relations. Routledge.

Steiner, G. A. (2010). Strategic planning. Simon and Schuster.

Steyn, B. (2012). Strategic management roles of the corporate communication function.

Tengblad, S. (2006). Is there a ‘New Managerial Work’? A Comparison with Henry Mintzberg's Classic Study 30 Years Later*. Journal of management studies, 43(7), 1437-1461.

Vaccaro, I. G., Jansen, J. J., Van Den Bosch, F. A., & Volberda, H. W. (2012). Management innovation and leadership: the moderating role of organizational size. Journal of Management Studies, 49(1), 28-51.

The concept of corporate governance

            Corporate governance refers to a system of mostly rules, practices as well as procedures that direct as well as control a company. In most cases it involves the balancing of all the stakeholders that have an interest in the company including the management, shareholders, government, the community to mention but a few depending on the company. Essentially, corporate governance provides a framework that if followed will help the company attain its objective in an all round manner.

            Though a relatively new phenomenon, this concept has been able to take the world by storm with countries that have embraced it turning in a lot of development that their counterparts. The embracing as well as the internalization of corporate governance by different countries has been able to foster growth and development while creating a business friendly environment in which companies can co-exist with the state as well as the communities in which they operate (Fernando, 2009, p.23).

Case study: the United States

           As recent as 2002, the United States enacted the Sarbanes-Oxley bill into law making it an act. This was ushered in to restore the public’s confidence in companies and markets. Prior to this act, there had been a string of bankrupted high profile companies that had been brought down by internal accounting fraud. This left a twist that ensured that the companies would essentially be governed by state laws and therefore failure due to breach of such laws would be answerable to the government. This ensures that not only are the interests of the company shareholders protected but that then community that usually benefits from activities such as employment are also taken care off. Thus, the country has over years adopted different legislations both at the federal as well as state level that ensure that corporate governance is fully realized in the state. Therefore, from the United States, the UK can learn to enact strong legislations that would act as a guidelines to both state as well as the companies and any other stakeholders of the importance of embracing corporate governance. This would also serve the purpose of regulating corporations that will then have to acknowledge the fact that rules have been put in place and therefore have to be followed and that failure of compliance would lead to outlined penalties (Chew & Gillan, 2009, p. 3).

Case study: India

            India, unlike the United States, has created a committee that deals with corporate governance know as the Securities and Exchange Board of India (SEBI). The board that in most cases takes on a trustee role for all the companies in India was created through the adoption of SEBI Act, 1992. The act gives the body statutory powers to be able to carry out its duties and functions. These approach adopted in India is believed to have been adopted from the Ghanaian principle of trusteeship and that it is a directive of the Indian constitution with a little twist in between. The preamble of the body is to among other functions “…to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto". In this case, the UK can similarly create a statutory body that would essentially act as a guide to wards the achievement of good corporate governance in the country (Das, 2008, p. 7).

References

Chew, D. H., & Gillan, S. L. (2009). U.S. corporate governance. New York, N.Y., Columbia University Press.

Das, S. C. (2008). Corporate governance in India: an evaluation. New Delhi, Prentice-Hall of India.

Fernando, A. C. (2009). Corporate governance: principles, policies and practices. New Delhi, Pearson Education.

Marketing ethics and business practice

Introduction

Ethics in marketing can be defined as the moral guidelines that govern good behavior. Thus, for a free market to be able to function both effectively as well as efficiently, there is need to adopt good ethical behavior. The typical marketer in today’s world is a person filled with too much dilemma that result from not only internal conflict from both internal conflict as well as the external environment on how to act. The conflict and dilemma originate from the fact that the marketing environment is constantly changing and at a very rapid pace. There is a thin line between the ethical, and legal issues that are applicable to a marketer in their line of duty. This is because of the fact that the marketer is more interested in the practical side of the routine activities of business (Vitell et.al, 2003, p.72). Due to the abundance in choices that are always available for the marketer, there will always be need for ethical as well as legal issues which always turn out to be important for the marketer in the competitive business environment. Ethical issues which the marketer faces may be either complex or easy. In most cases, the degree of complexity is often determined by how the marketer is prepared to handle the situation. The nature of the organization one works in as well as individual values of the marketers has made it necessary or there to be a code of conduct that would prevent marketers from committing any wrong in their line of duty (Ethics In Marketing, 1996, p.112).

A good marketer is one that attempts to incorporate these ‘code’, which usually comprises of both ethical as well as legal issues, into their daily marketing routine. This is partially because of the fact that the decisions made by the marketer will always end up affecting all the organization’s stakeholders. Thus it is imperative that the marketer maintain utmost integrity in the decisions they make concerning strategy. In most cases, a marketer’s function includes convincing as well as influencing consumer habits.

Marketer’s behavior

As stated, marketing can be a very competitive environment. This is because the nature of businesses as evolved and more and more competition keeps on cropping every now and then. Given the fact that there is growing competition, it is imperative that the marketer up their game in order to attract the customers. It is in this scenario that marketers often find the application of marketing ethics to be hard for they have to chose between maintaining ethics or competing with the rest who are the same if not more aggressive. More often than not marketing ethics come in where the marketer is trying to influence the consumer why to pick their products over the others (Murphy & Laczniak, 2005, p.11). The choices the consumers are likely to make mostly define the marketers’ ethical choices. Generally, marketing ethics has over the years been classified under four main responses from the marketers, depending on individual morals principles as well as values. In these cases, judgment plays an important role on the part of the marketer. This is because while some actions may be deemed legal, they may not be morally ethical. On the other hand, actions that may be considered ethical may not be legal.

Ethics more often than not comes in when markets are carrying out marketing campaigns. This is because marketing involves communication of the services or products to the consumers. All organizations usually want to market these in a way that is both effective and efficient. This would require advertisement of the service or product. In most countries, the law of advertising is very strict and must be adhered to by all stakeholders. This helps maintain order in the sector. It requires aspects of content, style and delivery which often vary depending on an organization and the resources it is willing and able to allocate to advertisement (Brenkert, 2008, p.53). Ethics comes in for example where the amount spared for the advertisement is concerned. There is no law that dictates the amount of money that an organization can spend on its advertisement, however, ethically, is it right to spend huge sums of money just on advertisement? Yet, in most cases where a company can afford to, they do spend a lot of money on advertisement which is in essence breaching marketing ethics. Thus most marketers usually strive to fulfill legal obligations set up in law yet end up trampling over ethical requirements.

Factors that influence a marketer’s behavior

Ethical issues in marketing more often than not originate from conflicts or disagreements from different parties in a given market environment. Usually, all parties to the marketing transaction will come with a set of expectations that dictate the existence of the business relationship as well as the transaction process (Singhapakdi et.al, 1996, p.1133). These different aspects of the marketing transactions usually create a set of factors that will ultimately influence how the marketers in that particular situation will react as far as marketing ethics is concerned.

Marketing research

In the course of carrying out marketing research, marketers are likely to breach marketing ethics when looking for vital information.  Breach of ethics comes in form of invasion of personal privacy as well as in stereotyping of other competitors as well as consumers. Stereotypes take place when marketers want to make estimations and they therefore place people in specific groups. When carried out in non-ethical manner, stereotypes can be used to segregate certain types of individuals. This is bad because all individuals are human with feeling. Assuming that a certain group would like a specific item and segregating others is a breach of marketing ethics (Davidson, 1995, p.35).

Case study

In the game industry, the target market is usually assumed to be kids, while studies indicate that almost a quarter of the people who purchase games are over the age of forty. The same would be the fact that most market do not segment senior citizens, yet these group make up a larger percentage of most European countries. There is also the fact that most sport gear as well as expensive cars is often segmented for men while research indicates that women are the world’s biggest spending segment. It cannot be assumed that say gardening is only for the old because women also like to garden.

Market audience

In the cause of selecting particular target markets, marketers have been known to segregate other potential markets. This is known as selective marketing and it is normally used to discourage undesirable market sectors. This has been known to happen in cases such as plus size markets, gays as well as race markets that were being segregated some few years back. Despite the evolution of the markets, some still practice market segregation. This is also known as market exclusion. Marketing ethics also come in as far as vulnerable markets are concerned. Here the marketers are aware of and exploit the vulnerability of the market (Rawwas et.al, 2013, p.530).

Case study

The clothing industry is a major contributor to market segregation. This is because the marketing is for a specific group of persons and those that cannot feat in that segment cannot use their products. This is mostly so in the case of plus size markets. The clothing industry is aware of the existence of plus size individuals yet the cloths made by some companies are up to a certain size. This means that only those individuals within that specific size range can buy the clothing and those outside cannot access these cloths. One of the most controversial companies that participate in this type of marketing is Abercrombie and Fitch whose cloth sizes do not include XL and XXL.

Pricing

Ethics in pricing come in when a specific company practices bid rigging. This practice involves the offering of commercial contracts to specific parties but making it look like the offer had been made to other parties. It also includes other non ethical practices include illegal dumping which is the selling of a products at a lower price in another country. Predatory pricing is where a company deliberately lowers its prices to drive away competition. Price discrimination is where the company sells the product to different markets at different prices. Price fixing is when several members that market similar products agree to sell their products at the high same price (2012, p.21). Price skimming involves introducing the product at a high price then gradually lowering the price. Price war is where a particular company constantly cuts the price of their product lower than that of the competition. Other types of unethical pricings include super competitive and variable pricing.

The unethical nature of pricing can in the end play a very major decision in a marketer’s decision because of the unfair terms that the completion has put up.

Advertising and promotion

Advertisement and promotion has over the years played a very important role when it comes to marketing ethics. This comes in form of false advertisements that are misleading to the consumers (Schlegelmilch & Öberseder, 2010, p.3). This goes against morality and ethical marketing as well as is now an offence under the law. Case study, a few years back, cigarette manufactures used to advertise tobacco as good for an individual’s health. In most case, advertisements are viewed as both positive as well as negative depending on the outlook. Condom advertisements have been viewed as positive on one hand for the prevention of AIDs but have been viewed negatively as promoting promiscuity. Generally, bad advertisement is where the marketer showcases the disadvantages of using the competitor’s products. This form of marketing is especially common in political campaigns. Delivery channels are also pit falls that marketing ethics is likely to be flaunted. This form of unethical behavior happens in almost all industries and cannot be easily eradicated for example direct marketing.

Ethics as a marketing tool

Most companies are afraid of the damage that would come to them if they were associated with unethical practices. Most marketers have noted the fact that most markets are impartial to companies with good ethic tendencies. Thus, some fraudulent marketers want to act fast and easily incorporate ethics with the company image. This means that they use ethics itself as a selling point or for its corporate image (Schlegelmilch, 1998, p.102).

Case study

The Body shop international PLC is an example of a company that has been able to model its image as well as products around ethical issues. The products of the company strictly use natural products that are not animal tasted. There is also the fact that the company trained and employed immigrant workers. The company comes out as not only environmentally minded but also socially responsible to the target consumers.

Another example is the practice of green washing. This is where companies align their name or agenda to an eco friendly theme. This is to show the consumers that the company is environmentally conscious while the activities of the company are contrary to this agenda.

Conclusion

Ethics in marketing is a very important aspect for any successful marketer. However, for the longest time, marketers have taken advantage of circumstances and have flaunted ethical practices that were created to protect consumers. Society in turn has taken steps to help mitigate the growing rate of lack of ethical practice by creating the law. While this has in some way helped instill some ethical responsibilities in marketers, truth is that the changing marketing environment is very hostile. Thus, while there may be ethical marketers who practice proper ethical marketing, the environment in which they operate is too hostile to accommodate them. In the end, many marketers end up participating in one form of unethical practice or the other in a bid to remain relevant in a very hostile and competitive marketing environment.

References

(2012). Marketing ethics. London, Sage.

Brenkert, G. G. 2008. Marketing ethics. Malden, MA [u.a.], Blackwell.

Davidson, D 1995, 'Marketers can't ignore new ethics issue', Marketing News, 29, 5, p. 34, Business Source Complete, EBSCOhost, viewed 11 November 2013.

'Ethics In Marketing' 1996, Journal Of Sport Management, 10, 1, p. 112, Business Source Complete, EBSCOhost, viewed 11 November 2013.

Murphy, P. E., & Laczniak, G. R. (2005). Marketing Ethics: Cases and Readings. New Jersey, Pearson Higher Education.

Rawwas, M, Arjoon, S, & Sidani, Y 2013, 'An Introduction of Epistemology to Business Ethics: A Study of Marketing Middle-Managers', Journal Of Business Ethics, 117, 3, pp. 525-539, Business Source Complete, EBSCOhost, viewed 11 November 2013.

Schlegelmilch, B, & Öberseder, M 2010, 'Half a Century of Marketing Ethics: Shifting     Perspectives and Emerging Trends', Journal Of Business Ethics, 93, 1, pp. 1-19, Business Source Complete, EBSCOhost, viewed 11 November 2013.

            Schlegelmilch, B. B. (1998). Marketing ethics: an international perspective. London, International Thomson Business Press.    

Schlegelmilch, B. B. (1998). Marketing ethics: an international perspective. London, International Thomson Business Press.

Singhapakdi, A, Vitell, S, Rallapalli, K, & Kraft, K 1996, 'The Perceived Role of Ethics and Social Responsibility: A Scale Development', Journal Of Business Ethics, 15, 11, pp. 1131-1140, Business Source Complete, EBSCOhost, viewed 11 November 2013.

Vitell, S, Paolillo, J, & Thomas, J 2003, 'THE PERCEIVED ROLE OF ETHICS AND SOCIAL RESPONSIBILITY: A STUDY OF MARKETING PROFESSIONALS', Business Ethics Quarterly, 13, 1, pp. 63-86, Business Source Complete, EBSCOhost, viewed 11 November 2013.

 Corporate Governance

Introduction

A system by which corporations are controlled and governed is usually referred to as corporate governance. It involves the incorporation of diverse and versatile systems that involve rules, practices and processes all geared towards controlling the organization. Essentially, corporate governance involves balancing of all the stakeholders in any given organization ranging from the shareholders, to the management, customers, suppliers and even the community and government. More often than not, corporate governance sets out the framework in which an organization can be able to achieve its goals. Thus, it covers every management sphere of the organization ranging from its internal controls to its action plans as well as performance index.

A good corporate governance framework consists of three main points that have to be put into consideration. The first is there have to be both explicit and explicit contracts between the organization and the stakeholders that outline the distribution of not only the different responsibilities but also the individual and group rights as well as the rewards available. Second, clearly out lined reconciliation procedures that clearly tackles the stakeholders conflicting interests depending on their roles, duties and/or privileges. Finally, a good corporate governance framework consists of clarified procedures that indicate the proper control, supervision and information interflow. These serve to create a perfectly balanced checks-and-balances system (Fernando, 2009).

In relation to the Town Regeneration Partnership Company, a proper system of corporate governance in any organization not only ensures the success of the organization by creating an environment that is conducive for its growth and expansion, but also creates order. Order in any given organization ensures that each shareholder is aware of the role each of them plays in the organization and thus works hard in these roles to ensure prosperity. (Colley, 2003)

Context of Corporate Governance as it relates to this organization

In the context of the organization, corporate governance would mean examining as well as recognizing all the different stakeholders of Town Regeneration Partnership Company and the different roles that they will play in the organization.

The shareholders

This group involves all the people who contribute financially for the organization. It includes the investors both local and international who will seek to invest in the organization. There is need to protect the rights by creating values with will ensure the organizations sustainable growth. There is also need to provide platforms that will ensure that this group has access to the organizations information so that they are able to gauge what their money is doing in the organization (Martin, 2006). Corporate Governance also ensures that systems are put in place that would allow for the communication between the organization and its shareholders.

The board of directors

The primary role of this board is to govern the organization. It is the duty of this board to set up policies for the accomplishment of the organization’s goals. Good corporate governance ensures that the board is created so that it can be as independent as possible from the CEO and president of the company (Calder, 2008). This ensures that the board is impartial in its decisions. There is also need to create procedures that will oversee crucial decision-making processes such as election of board members and remuneration procedures where applicable. Finally, proper procedures have to be put in place to examine as well as measure the boards’ performance to ensure maximum efficiency. The board should also be able to form board committees who will ensure that they aid in the compliance of good corporate governance principles (Tricker, 2012).

Management

In most case, the management is directly answerable to the board of directors. Thus, proper corporate governance dictates that the organizations put in place proper procedures not only for the selection of a proper management department but also for performance auditing mechanism. This will ensure both competence as well as accountability among the management.

Auditors

Bothe external and internal auditors play the important role of keeping the organization in check. It is therefore imperative that measures are put up that will ensure that the organization has frequent auditing to be able to showcase its transparency to all the involved stakeholders.

Employees

Employees are usually the backbone of any organization. Proper corporate governance requires the formulation of proper methods and procedures that will take care of the welfare of the employees as well as creation of steady growth and development of the employees at the work place.

Other stakeholders

Corporate governance requires that all stakeholders, regardless of the position they hold in the organization be acknowledged and respected. Therefore, there is need for the organization to come up with procedure that would ensure that other stakeholders are not only recognized by the organization, but are also protected and respected.

Background of Corporate Governance and the principles of best practice

Good governance is based on the idea that the organization is a unit of contractual agreement between many interested parties with the aim of achieving the organization’s goals. Thus, corporate governance should be such that the needs of all these people in the organization are addressed in a manner that will be satisfactory to all players in the organization. The Cadbury report outlined a number of core principles that when enforced under corporate governance would ensure the proper management of any particular organization (Keasey et.al, 2005).

The rights as well as impartial treatment of all stakeholders

This requires that the shareholders are made aware of their rights and the power that those rights have in the organization. It is the duty of the organization to respect those rights as well as its duty to show the shareholders how to exercise those rights. The open and effective communication of information by the organization to the shareholders is one way of helping the shareholders exercise their rights. The other way that the organization can help the shareholders exercise their rights is by encouraging them to participate in the organizations general meetings.

Recognize the importance of other stakeholders

It is important that the organization recognize the roles played by other stakeholders in the company who are not its shareholders (Mallin, 2013). Obligations that arise legally, contractually, socially, or are market driven are often owed to other stakeholders who include the employees, investors, policy makers, creditors, the local community and many more. Recognizing these roles ensure that the stakeholders not only feel like they are part of the organization but also encourages them and their loyalty to the organization.

The boards’ roles and responsibility

For the organization to be able to implement successful corporate governance there is need to introduce sufficient relevant and understanding skills to the board of directors. This will ensure that better performance from the board (Monks & Minow, 2011). Furthermore, there is need to create a board of reasonable size with appropriate levels which have independence as well as commitment.

Integrity and ethical behavior

When choosing corporate officers as well as board members, it is imperative that an organization put integrity first. This mostly involves the development of a code of conduct that will govern the directors as well as executive. This is important for it will develop a decision making process that is not only ethical but also responsible (Myers, 2001).

Transparency and disclosure

It is the duty of the organization to clarify as well as well as make publicly known the board and managements roles as well as responsibilities. This is important for it provides the organization’s stakeholders with some level of accountability. Transparency also requires that procedures be implemented that will independently verify and organizations financial reporting integrity. Good corporate requires the timely disclosure of matters concerning the organization. This ensures the investors are able to access information that is not only factual but is also clear.

Influences on the effective performance of corporate governance

Corporate governance is a feat that can be accomplished by any person or organization if they put their mind to it. However, the successful achievement of proper governance is a task that needs determination, professionalism as well as proper guidance in order to achieve. In any organization’s environment, there is a set of factors that influence the proper performance of corporate governance. When put into consideration, these factors can either lead to the successful incorporation of corporate governance or its failure. These factors that greatly shape corporate governance are divided into two major parts; structural influences and external influences.

Structural influences

These are the influences found within the organizations structure. The size of the board is a very important influence. Research has shown that smaller boards are easier to coordinate and are more effective than large ones. It also helps if the board is independent. This is because independent directors will ensure that the boards are effectively managed. It would be wise if the roles of the key players were independently established and outlined. A combination of titles such as that of the CEO with the board member would create a conflict of interest, creating a potential misappropriation of resources. The performance of the organization is greatly linked to the compensations that the executive gets for their performance. Thus, if the executive is aware of this fact, effort will be made to improve the organization creating good corporate governance. Shareholders play an important role in influencing corporate governance. Large share and block holders have a greater influence and thus form an effective governance mechanism due to the stakes they hold in the organization. Finally, policies regarding debt repayment and dividends play a moderate role in influencing proper corporate governance by removing cash related temptations (Bebchuk, & Ferrell, 2009).

External influences

These influences come from the environment surrounding the organization. They include a takeover market. This means that organizations management do not maximize firm value, the organization may be subject to a takeover bid which if successful, usually results in the replacement of the management. Stock markets as well as financial analysts also play the important role of influencing corporate governance. This is because they play a monitory role of ensuring that the organizations transparent information is made available to the general participants in the market. The law has legal provisions that seek to protect the investors. These provisions also seek to safeguard the shareholders’ rights as well as reduce earning manipulations from the organizations insiders. A Standard & Poor’s governance index has been created that has been able to establish important links between different corporate governance scores (Lipton & Lorsch, 1992).

Structure of the Board of Directors and their responsibilities

Different organizations have different ways in which they organize their boards of directors. These vary depending on the function of the organization to the function of the board. However, most compositions have components that are similar to one another ranging from their compositions to their functions and structures.

Structure of the board

Most board structures are made up of individual men and women, known as directors, who are in most cases elected by shareholders. However, in our case, we took in volunteers. These are supposed to hold office for a specific period then another group may replace them. In most case, directors are people, who have vested interest in the organization, work in the organizations upper management or may have known abilities in that particular business but are independent from the company. In most organizations, the numbers of directors vary depending on the needs of the organization. It is the imperative that a number of the directors are independent to the organization. This is because, should there be pressure of influences as to the making of specific decisions, these people will be immune. The board of directors is also in charge of creating committees. These committees usually comprise of any number of people and are usually in charge of assisting the board in management. It is important to note that in some cases, the structure of the board may be two-tier. This means that one board is the executive one that runs the daily functions of the organization while the other is supervisory board, elected by the shareholders, which is in charge of supervising the executive board (Roche, 2009).

Functions of the board

The most important responsibility of the board of directors is to be able to protect the vested interests of the shareholders or rather their assets in the organization. This is achieved by ensuring good returns from the investors’ investments. It is also the duty of the directors to protect the employees of the organization as well as their needs (Business Roundtable, 1978).

The fact that they are the highest governing authority as far as the management structure is concerned; they represent the management of the organization. It is also their duty to chose, evaluate then approve the CEO’s compensation. It is also their duty to evaluate pay dividends attractiveness, recommend the company’s stock splits, and approve the organizations financial statements. It is also their duty to programs that deal with share repurchases and are in charge of advising the organization on whether or not to make specific acquisitions or mergers.

Different stakeholder groups that will relate to this organization

Stakeholders in any given organization vary depending on the aims that the organization aims to achieve. In our case, the company was created so that it can be able to develop plans and initiatives that will deliver investment and growth in the local economy that had been steadily declining. Thus, for these particular reasons, the stakeholders for this particular organization include:

Investors

These people allocate to the organization money with the expectation of gaining financial returns. This will be individual, business or even corporate investors. They are the group that is in charge of injecting finances into the business (Agard, 2011).

Shareholders

These are the persons, either individual or corporations that will legally own the shares or stocks of the company. They are the essential owners of the organization/limited company. Shareholders usually buy share which represent part ownership of the company.

Creditors

Creditors are usually parties that have acclaim on the services of another party. They may be persons or institutions of whom the organization owns money. In our case, these are likely to be banks and other financial institutions.

Government

Government plays an important role in this case since the main concern of the company/institution is the local community who are the responsibility of government. Thus, government is a very important stakeholder.

Community

The main reason for the foundation of this organization is to be able to help the community whose local economy is going down. Therefore, the community is a key player in the establishment as well as the development of the organization.

The employees

These are the people employed in different capacities and who contribute their expertise towards the smooth functioning of the organization. They form the backbone of the organization.

Secondary stakeholders

This group does not play any specific important role in the organization. Rather, their contribution to the organization to the organization is that of a secondary nature. They include customers who shop from the local businesses which the organization is seeking to strengthen.

The importance of group cohesiveness and group dynamics in the context of leadership and motivation by the Board

No single company is able to operate when all its entities are divided. This is because there will be a lot of misunderstandings which will ultimately lead to the downfall of the company. Good governance is a good tool for any given company. However, for good corporate governance to be able to apply successful in a company, there has to be group cohesiveness as well as group dynamics. Group cohesiveness means that all stakeholders in the organization are able to stick together regarding the decisions made. On the other, versatility means that the organization is flexible and resourceful. Both cohesiveness as well as dynamics plays important roles in nurturing leadership and motivation in the board (Gomez & Moore, 2009).

The first importance of group dynamics as well as cohesiveness is that it strengthens corporate governance. This is because while different suggestions may emerge, ultimately, the group will be able to settle on one view that will be beneficial to all parties involved. The members of the group all feel like they belong in the group thus feel the sense of protecting not only their interests but also the interests of all that are involved in the organization regardless of the role they play.

Cohesiveness also promotes communication. Communication is very important for the success of any organization for it is through this channel that information is able to pass from one quarter of the organization to the other. Communication allows all stakeholders to feel the transparent nature of the organization which in turn builds their confidence in the organization and its endeavors. Lastly, communication is able to remove barriers that may be created by misunderstandings that are likely to be brought up by misinterpretation of facts (Shleifer & Vishny, 1997).

Group cohesiveness and dynamics is important in that it ensures that expectations as well as responsibilities of all the stakeholders in the organization are clearly outlined and that each team player is playing their role in the management as well as the running of the organization. This is also important for it fosters appreciation among all stakeholders of the roles that are individually played by each.

Finally, cohesion plays the important role of pointing out to the management when to get out of the way and let the team do its work. If the team created is cohesive enough, this means that they are culpable of handling their duties and responsibilities and do not need one person or a group of people watching over their actions. Thus, it creates a sense of team independence and a sense of responsibility.

Conclusion

Corporate governance plays the important role in any given organization of keeping the organization on its toes as well as making it transparent to the public. Not only does it create provisions, that provide for proper leadership, but also makes provisions on how that leadership should be conducted so as to able to attains the organizations maximum potential. With this kind of quality corporate governance, Town Regeneration Partnership Company will be able to achieve the goal for which it was created for and in turn satisfy all the stakeholders involved and the community at large.

References

Fernando, A. C. (2009). Corporate governance: Principles, policies and practices. New Delhi: Pearson Education.

Colley, J. L. (2003). Corporate governance. New York: McGraill Education - Europe.

Martin, D. (2006). Corporate governance: Practical guidance on accountability requirements : A specially commissioned report. London: Thorogood.

Tricker, R. I. (2012). Corporate governance: Principles, policies and practices. Oxford: Oxford University Press.

Calder, A. (2008). Corporate governance: A practical guide to the legal frameworks and international codes of practice. London: Kogan Page.

Keasey, K., Thompson, S., & Wright, M. (2005). Corporate Governance: Accountability, Enterprise and International Comparisons. Chichester: John Wiley & Sons.

Mallin, C. A. (2013). Corporate governance. Oxford: Oxford University Press.

Monks, R. A. G., & Minow, N. (2011). Corporate governance, fifth edition. Chichester, West Sussex, U.K: John Wiley & Sons.

Business Roundtable. (1978). The role and composition of the board of directors of the large publicly owned corporation: Statement of the Business Roundtable. New York: Business Roundtable.

Roche, O. P. (2009). Corporate governance and organization life cycle: The changing role and composition of the board of directors. Amherst, NY: Cambria Press.

Agard, K. A. (2011). Leadership in nonprofit organizations: A reference handbook. Thousand Oaks, Calif: SAGE Publications.

Myers, L. A. (2001). Discretionary charges, board of director composition, and audit quality.

Gomez, P.-Y., & Moore, R. (2009). Board members and management consultants: Redefining the boundaries of consulting and corporate governance. Charlotte, N.C: Information Age Pub

Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783.

Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The Business Lawyer, 59-77.

Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance?. Review of Financial Studies, 22(2), 783-827.

Customer Service in Airline Industry

Introduction

The airline industry is one that has been struggling all over the world, in the past decades. This struggle has been brought about by among other things, fluctuating prices, tight quality control rules, fluctuating demand and to top it up competition. All this problems have placed customer satisfaction by airlines to take a back-sit. However, the need to utilize airline services is still on the rise with more and more airlines coming up. Thus, airlines have started shifting their focus towards customer oriented service quality.  

The customer always plays an integral part of any business. Without the customer, the function of operating any business takes a back seat. Thus, the way the customer views any given business has the power to propel the business to higher planes and profit of to destroy that business. It is therefore essential that the customer as well as the needs of the customer are not only given priority but also be well taken care of by the company. Airline companies have to especially put this into account considering the fact that a large percentage of their business comes from passengers who are likely to form a faster opinion of the airline. Thus it is imperative that the company tries and find out what the customers want. This means establishing not only what the customers perceptions are as far as the services provided go but also what the customers expect from the service and what services they consider important. Only then will they be able to not only appease customers, but also engage their loyalty as well as keep up with the competition.

Defining customer service aims and values

Successful companies have been able to maintain their customers being able to define their customer service aims as well as values. This is achieved by creating an effective customer relationship management (CRM). This creates an avenue where not only can the customers share their view and opinions, but where the company can put up its ideas for the customers to be able to participate. CRM in essence creates a two way exchange process where companies are able to able to gain personal information on their customers, their needs, wants as well as purchase patterns. In essence, CRM would help the airline understand as well as anticipate the needs of its current as well as potential clients. Thus for the airline to be able to successfully define its customer service aims and values, it has to be able to create avenues in which it can engage with the customers to be able to know elements that make the airlines’ customers happier or more satisfied (JHA, 2008, p. 2).

High quality service provision provides for a happy and loyal customer. Jan Carlzon, the former CEO of the Scandinavian airlines highlighted the importance of engaging happy clients by outlining the importance of creating a customer oriented carrier. This policy enabled Jan pull the airline from a state of near bankruptcy to a successful airline during his tenure. He believed that the first contact that the customer had with the airline, whether remote or personal formed the very first impression (Barlow & Stewart, 2010, p.85). Thus, the quality of the service greatly depended on the first impression. Thus front line employees of any given airline organization have the power of shaping a customer’s experience as well as perception as far as the airlines is concerned.      

Customers are more often than not able to define quality and value in different ways. However, there are for main categories that have been used to define value according to the customer; value is low price; value is whatever a customer wants in a product or service; value is quality divided by price; and value is all that a customer gets for all that they give. Using all this definitions, one can be able to come up with a clear definition of their customer service aims as well as values. One way of achieving this is to brand the service provided. This means that the company or in this the airline offeres the competency of its employees as a service brand of its own. Service brand acts in the same way as a product brand. This means that it has its own brand promises, values and personality.

Case study of an airline that has been able to successfully implement a service brand is Southwest Airlines. This company has been able to brand its customer services as ‘fun and spirited with southwest staff delivery magnificently’. The company offeres low fares, reliable and clean airlines, and a guarantee of arriving on time to it’s’ customers. On the other hand the airline has other notable deficits such as the fact that it has no fist class, no food is served on the flight and some seats are very uncomfortable (Tolpa, 2012, p.32). However, the services provided by the employees are sufficient to keep the airlines customers loyal. The patients are guaranteed that other than receiving friendly and hospitable service by the airlines employees, they will ultimately arrive on time. Through consistent and pleasant delivery, the airline has been able to turn a mass transportation (commodity product) into a successful service brand, clearly defining their customer service aims and values.

Ensuring a ‘listening organization’ partnership

Most companies that have able to be successful have been able to develop a listening organization. This means coming up with a method that will ensure that different ideas that may be brought into the company are heard. This does not mean listening to all ideas brought in, it means that one is able to sieve between the ideas that are passed around within and without the company that will be able to eventually profit the company.

There are a number of reasons why ensuring a listening organization is beneficial to any particular company. The first is that listening enables the company to gain information which will eventually aid in decision making. Furthermore, trust is created through communication. This ensures that the employers are aware of the needs of the workers. In this case, trust will be created between the airline and the agency company (Rappaport, 2011, p.32). Listening also helps reduce conflict between the airline and their partners that may be brought about by misunderstandings. Finally, motivation is essential in ensuring that the employees are well motivated. In this case, the agents, though employees of Check-u-In, will feel like they belong in the Zeta Air family.

A listening organization is achieved by ensuring a number of things. The first step to take is to go back to the airlines drawing board. Here, it is imperative to determine the kind of conversations relevant to the people involved. It is important to establish the group of people that are meant for that information (Rubino, 2005, p.17). Once this has been accomplished, the information is then funneled to this people who have to give their responses in turn.   It is imperative for the employees to be able to know that they can share important contributions and therefore contribute to the company’s success.

Communication in such a partnership as that of the airline can be created and enhanced by creating easily accessible platforms. This includes restructuring roles and responsibility so that certain persons have the role of listening on behalf of the company. The creation of such a department ensures that all stakeholders are well aware of the existence of a department where what they have to say can be heard. This department also plays the oversight role of sieving in the information that is likely to build the company while discarding that information that is irrelevant to the company.

It is also important to create a platform where customers can share their experiences, ideas or complaints. This ensures that the customers feel like they have the power to not only contribute their ideas but that the airline is listening to them. Given the fact that that the world has been able to evolve into a sharing community, with more people sharing their experiences online, such a platform would ensure that the airlines brand forms ‘part of the story’ (Gillin, 2011, p.67). Like most competent and successful companies worldwide, this platform has been created by providing online alternatives such as websites and social media interactions. Once such a department has been created, it is important to inform stakeholders of its existence as well as encourage them of the need for their participation.

Options for the development of customer driven processes

The creation of a customer driven process is no easy task. Over years, companies have been able to shift from the individual task of seeking consumers to the merging of the process. In the airline company, this is witnessed where different airlines are able to work together to be able to provide services to the customers. Recently, American airlines and U.S airways witnessed a similar merger. Thus, what are the options available for the development of successful customer driven process?

Market segmentation: This involves the division of large heterogeneous markets onto smaller more manageable markets. In this case, the customer market is segmented according to demographic, geographic, psychographic, or behavioral variables. Being able to understand the different customers that use the airline, their different tastes and preferences will ensure that the needs of these customers are met while putting their preferences into consideration (Webster, 1994, p.33). Effective market segmentation in terms of customer oriented decisions is one that is measurable, easily accessible, meaning that it can be easily reached to be served, and substantial. It should also be differentiable and actionable.

Market targeting: Targeting usually reveals the market segment opportunities. The company must in this case first collect and analyze data on current segment sales, growth rates, and expected profitability for various segments. It will be interested in segments that have the right size and growth characteristics. After evaluating different segments, the company must now decide which and how many segments it will target. A target market consists of a set of customers who share common needs or characteristics that the company decides to serve. Because customers have unique needs and wants, a supplier could potentially view each customer as a separate target market (Schnaars, 1998, p. 41).

Differentiation and positioning: differentiation comes in when one wants to make their product different from all others. Thus, differentiation determines the potion the product/brand will take in the mind of the customer. A product’s position is the way the product is defined by consumers on important attributes that appeal to the consumer. Thus, the more appealing the product is to the consumer, the better positioned the product is in that particular consumers mind. Most often than not, consumer’s position product with or without the help of marketers, it is therefore essential that the company be able to position their product in a way that will greatly appeal to the customers (Bradley, 2003, p.54).

To build profitable relationships with target customers, marketers must understand customer needs better than competitors do and deliver more customer-value. To the extent that a company can differentiate and position itself as providing superior value, it gains competitive advantage. In the case of Southwest airlines, they have adopted a more for less strategy. Thus, unlike the other airlines, they offer more services for a cheaper price.

The creation of a customer driven process is important for this particular airline for through the incorporation of such services, the airline will be able to create a new target segment (Ferrell & Hartline, 2008, p. 34). This move is likely to attract more customers due to the uniqueness of this particular service. As far as the position of the new service is concerned, the airline will be able to provide a product that is not only customer oriented but unique. This will provide for an edge over the completion.

Role played in the development of a successful service partnership

Ultimately, people play an important role in not only the development but also the continued success of any successful business. Though feedback, whether negative or positive, any given company is able to evaluate itself. To begin with, there is the contribution made by the agents. The agents will be able to provide the very best ground handling service. Thus the important role played by the agents will ensure that the airline is able to gain more customers. The appreciation of the agents will ensure that they deliver the very best when handling the airlines customer. The agents will be the first interaction that the clients will be thus they will be in charge of positioning the brand of our product to the customers (Sorli & Stokić, 2009, p.38). If in any case the customer gets a bad experience when being handled by the agent then this will be able to reflect back to the airline.

The customer is the ultimate contributor to the airline. Thus they should be treated with all respect. In this case, there should be channels available that will allow for communication from the customers. This channel will not only enable the airline to receive feedback from the customers as to the extent of the new services but will also allow them to contribute as to what the airline can do to enhance their experience. Ultimately, listening to the customers and their needs is what will develop the airline. If an idea presented by the customer is not only good, but also adoptable, then the partnership, in making an effort to adopt this idea will be bettering the airline.

The empowerment of not only the partnership employees but also the customers makes all the difference in the business. The employees have to be made aware of the fact that the individual contributions make all the difference in the company. Furthermore, allowing the employees to know that they can pitch in ideas that will be able to develop the company goes a long way in establishing trust (Barkley & Saylor, 2001, p.62). Trust, in any given company, even an airline, is the key to ensuring prosperity. Furthermore, empowering the customers by giving them the voice to voice their concerns ensures that the airline is aware of its general weaknesses as well as weakness that may crop up from employees or the system. By addressing these concerns the airline ensures the provision of the very best customer based service.

Finally, development is very essential for the continuous growth of the partnership. This means that even after setting up the partnership for the benefit to easing the customers’ ground handling need, the partnership should not stop there. It should be able to come up with ways of improving the services provided by the partnership. This could include introducing other services that may appeal to certain segments. Furthermore, the partnership may introduce a reward system for the customers loyal to the airline. Such ideas are able to attract different clients with different tastes ultimately bring in development into the partnership. Development will always create a better service partnership.

Communication, recognition and reward actions that might contribute to the success of the proposed partnership

Recognition

The key to any successful partnership is recognition (Lyons & Coronado, 2007, p.23). This recognition, whether of both partners or of the customers plays an important role in establishing boundaries as well as rules. The airline should be able should be able to recognize the ground handlers and the role they play in the partnership. This is because they represent the image of the airline and in the eye of the customer they are a part of the airline. On the flip side, the ground handlers should respect the customers for by extension, they form part of the airline. It is therefore imperative that they treat the customers with utmost respect. Recognition plays an important role in ensuring that both ends of the partnership are held accountable for any mistake that may result from either side.

Recognition has also and still plays an important role in the partnership through the customers. The partnership should make the point of recognizing the needs of their customers and trying its best to meet those needs.  

Communication

Communication also plays an important role in ensuring the smooth running of a partnership. Case study: A flight is experiencing delays in its departure. Any number of reasons ranging from bad whether to technical problems may occasion this delay? Or in another occasion, the flight has been cancelled. The airline makes no point of notifying the ground handling agency on the other side. This will cause a major problem for if the flight is to show up late, the customers would be stranded with no one to handle their luggage. On the other hand, if the flight would fail to come in then the agents’ time and energy would have been wasted.

A second scenario is where luggage from the customers has been lost or misplaced or lost at the airport and no report has been made to the airline. Leaving the customer to make the complaint thus, taking the airline by surprise.

Thus communication plays an important role in the partnership in ensuring that the partnership is beneficial to the customer as well as to both the partners.

Reward actions

Rewards should be put in place for not only the customers but also for the hard working employees of the partnership. In the case of customers, the airline should be able to reward their loyalty by not only providing top notch service, but also putting up a reward system where it pays to be loyal. This includes introducing free flights for the most loyal customers on the part of the airlines or half price flights. On the part of the handlers, they may n tern partner with another franchise such as taxi companies so that instead of the customer looking for their own means out of the airport they can be taken straight to those exclusive to this partnership. Rewards should also be set up for the hardest working employees so that they can feel appreciated. Well appreciated customers and employees will ensure the eventual growth and success of the partnership.

Conclusion

Customers play the important role of ensuring the steady growth of any company. By developing a friendly customer oriented business strategy the partnership will ensure future growth as well as success. It is always important to put the needs of the customer above all. In doing so the airline has not only created a strategy that gives them leverage over their competitors but created a competitive brand image which will play an important role in attracting more customers.

References

BARKLEY, B., & SAYLOR, J. H. (2001). Customer-driven project management building quality into project process. New York, McGraw-Hill. http://www.lib.sfu.ca/cgi-bin/validate/books24x7.cgi?isbn=0071369821.

BARLOW, J., & STEWART, P. (2010). Branded customer service: the new competitive edge. [s.l.], Read how you want.

BRADLEY, F. (2003). Strategic marketing: in the customer driven organization. New York, J. Wiley.

FERRELL, O. C., & HARTLINE, M. D. (2008). Marketing strategy. Mason, OH, Thomson South-Western.

GILLIN, P. (2011). Social marketing to the business customer: listen to your B2B market, generate major account leads, and build client relationships. Social Marketing to the Business Customer. Hoboken, N.J., Wiley.

JHA, L. (2008). Customer relationship management: a strategic approach. New Delhi, Global India Publications.

LYONS, A. C., & CORONADO M., A. E. (2007). Customer-driven Supply Chains: Strategies for Lean and Agile Supply Chain Design. Goldaming, Springer London.

RAPPAPORT, S. D. (2011). Listen first! turning social media conversations into business advantage. Hoboken, N.J., John Wiley & Sons. http://www.books24x7.com/marc.asp?bookid=40732.

RUBINO, J. (2005). Secrets of building a million-dollar network marketing organization from a guy who's been there, done that, and shows you how you can do it too. Charlottesville, VA, Upline Press.

SCHNAARS, S. P. (1998). Marketing strategy: customers and competition. New York, Free Press

SORLI, M., & STOKIĆ, D. (2009). Innovating in Product/Process Development Gaining Pace in New Product Development. London, Springer London. http://dx.doi.org/10.1007/978-1-84882-545-1.

Tolpa, E. (2012). Measuring customer expectations of service quality: case airline industry.

Webster, F. E. (1994). Market-driven management: using the new marketing concept to create a customer-oriented company.

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                                    Management Philosophies

(Elton Mayo)

VIRGIN AIRLINES

PART 1

PEST Analysis

Political Influences

There are factors that influenced different governments entering into economics and thereby affecting businesses in that economy. Over the years there have been many political influences on virgin airlines. Some of these influences include the government itself, VAT tax, income tax, airport tax, import tax, laws that deal with labor or the environment and international deals and agreements such as trade tariffs as well as restrictions. Taxes are a major way under which the government is able to earn income. Big corporations such as virgin air always end up contributing to a large percentage of the governments’ income through one form of tax or the other. At the end of the year 2012, it was reported that the airline had made revenues of up to 2,740 million pounds. In this case, the VAT that is a mandatorily placed on services carried out by the airline is huge and perhaps the largest income generating tax of virgin airlines followed by others that are imposed directly on the airline. Furthermore, it should be considered that the airline employs a lot of man power ranking from the smallest to the largest. All these personnel have to be paid their monthly wages which are then taxed by the government (Macsai, 2009, p 28).

Other political influences include other legislations that touch on either the daily running or the daily interactions of the airline. A case example would have to be environmental law, aviation laws as well as labor law which have to be constantly adhered to by the airline and failure of which the airline will face steep penalties from the government. The government also has to ensure a balance in trade thus it has to come up with tariffs that need adhering to by all industry players, the airline being no exception. While the airline may not participate in government deals with other countries, it is imperative that it conforms to trade agreements made by the government (Gregory, 2010, p. 53).

Finally, political stability plays a very important role in the airlines business. This is because without one, the other cannot operate. While Britain has enjoyed relative piece for the longest period, there are countries in which virgin airlines operate who do not share the same stability. Operations in such countries have to be halted for the sake of safeguarding the airlines interests as well as its staffs’ safety.

Economic Influences

The economy of a given country greatly influences how the businesses of the country are carried out, how they generally fair and the decisions made in those businesses. These factors include the economic rates of the country, interest, exchange and inflation rate of both the company and the business which in this case is the airline.

As of the beginning the second quarter of 2013, Britain’s Gross Domestic Product (GDP) was at 0.7. Currently, the United Kingdom is the world second largest economy. Its biggest sector that is likely to contribute to 75% of its income is the service industry. Transport falls under this sector, making virgin airlines a very lucrative business. The interest rates of any given country play an important role in ensuring the stability of that country’s economy. While this is a good sign, the airline has not been without its fair share of economic setbacks. One of them is the government imposing other regulations on airlines such as forcing the airlines to reduce prices on high traffic routs. Over the years for example the government has The airline like many others has had to cope also with high landing charges which is in addition to other taxes levied on the public which makes flying expensive. So far, UKs economy has not suffered much loss although virgin airline is thinking of offering an IPO sometime this year. This decision was made in light of factors such as jet fuel prices, the cost of purchasing new planes and adding new routes which will cost the airline additional money. Other world events also directly affect the airlines economy such as wars in different countries and outbreak of highly contagious diseases. So far, it can be concluded that the airline has been able to enjoy relative growth and expansion as a private entity due the economy which has not been doing so bad over the last couple of years. This is reflected in the profits as well as the steps in growth that the country has been making since its inception (Morrell, 2002, p. 99).

Social Influences

The airline operates on the basis on its customers who are society in general. Many travelers fly frequently to different destinations due to the fact that they have a variety of airlines to choose. However, there are events that influence whether an individual wants to fly or not. Epidemic outbreaks as well as increased number of airplane terrorist attacks have instilled fear in the minds of travelers. This may end up influencing the number of frequent flight users who may fear using the airline. It is therefore important for the airline to try and reassure the society of the destinations they fly in as well as the security in the airplane mode of transport. In recent years, the social media has also played an important role in the creation of good or bad publicity as well as a mode of advertisement. This is because society has quickly transformed into the E-generation. It is therefore important for the airline to conform to the current trends in society or risk losing a customer base (Cento, 2009, p. 33).

Technological Influence

For any airline and in this case virgin airline, the safety of its passengers as well as the crew is imperative and remains the prime concern for the airline. However, thanks to rapidly advancing technology, there is need to invest in new and current aircrafts. This also means that the airline has to constantly upgrade its fleets to more current planes. There is also the fact that advancing technology allows for the advancing of the provision of better customer services. A case example is the fact that since society has gone digital there was need to install cable less internet (Wi-Fi) to allow the customers to be able to use the internet while travelling. The world as a whole is now emphasizing on the reduction of carbon emission in all industries, airlines included. Thus the airline has had to invest in better airline technology that cuts down on this kind of emission. An example is the purchase of the Airbus A330-300 which is at least 9% less efficient as compared to the previous 15% planes. The airline has also had to invest in new technologies that would ultimately ensure the further reduction of carbon emissions by the reduction of fuel consumption (Davenport et.al, 2006, p.124).  

PART 2

Supply And Demand Factors        

Like all the other airlines in the travel industry, virgin airline depends largely on the supply and demand of its customer base. Thus, like all other, airlines, the company is likely to face similar problems that are likely to face the other air lines. These problems vary and are influenced by both internal and external factor. What is clear is that in this particular industry it is possible to gain as much profit as one can gain in a day and incur as much loss. The game of chance is that while there may be demand, the airline may fail to meet the supply and vice-versa.

The oil industry is a key player in any airline operation. This relationship is such that one cannot survive without the other. However, the oil industry is unstable with oil prices fluctuating all the time. These fluctuations usually play important roles in the pricing of the services provided by the airline. While there may not be any immediate solution to this co-dependence, it is important for virgin airlines to seek other possible fuel alternatives in the future. This would lead to the reduction of the airlines dependence on the oil industry. An immediate solution however consists of purchasing of aircrafts that consume and utilize less fuel (Burghouwt, 2007, p. 145).

Strikes are very bad for airlines due to the fact that they disrupt the demand supply chain. It is imperative that the airline ensure that the wages paid to its staff is sufficient to sustain them. This will ensure that the possibility of strikes is minimal among the workers.

Tragedies, whether of a natural or man-made disasters more often than not always end up disrupting the airline industry. Case study are the SARS epidemic and the 9/11 terrorist attacks. Due to the nature of these two disasters, flights had to be grounded and flights counseled. While disaster cannot be averted the airlines assure the public of its commitment to them and to their safety (Balmforth, 2009, p. 39).

Other external factors that influence the airline include monetary and fiscal regulations set up by governments to ensure the protection of the society’s’ best interest. Other than suing the government where extreme cases are involved, the airlines’ best alternative to adhere to the rules set by the respective governments.

Finally, the IT sector has in recent years continued to play an important role in the airline business. It is important for the airline to invest in the IT business. This ensures that the airline is up to date with the latest technology in the field.

PART 3

Type of Competitive Market

Virgin airline operates in the airline industry which is a very competitive industry. The major characteristic of this industry is the substantial price completion more so when it comes to domestic markets. Thus during low season or when clients are not as many as expected, airlines offer discount fare to attract clients. Thus the airline competes on the basis of price, customer service, costs, frequent flier benefits, frequency and convenience of scheduling, the airlines productivity and its efficiency. Some of its major competitors include, Air France-KLM, Japan Airlines System, AMR, Cathay Pacific, Delta Air Lines, United Airlines, and Lufthansa.

Airlines also compete for share capital by increasing the number of their routes as well as the markets they serve. The discounts offered by other flights especially of the domestic nature always have adverse effect on the airline (Berry, 1998, p. 63).

Due to the global recession, more and more airline companies are merging to form single airlines. These consolidations have led to the formation of large corporations with significantly superior monetary resources. This creates more favorable circumvent against fuel price while lowering the overall cost structures as compared to the previous smaller companies. Finally, it is imperative the company keep abreast with current social matters. This is because in seeking to draw more customers, the airline industry has become more innovative in a bid to draw specific clientele.

PART 4

Competing on Domestic and International Level

Virgin Atlantic is one of the largest British long haul international airlines that is known to offer comprehensive long haul services. The airline's passenger services unit is usually in charge of arranging check-in facilities, in-flight entertainment , meal catering, and baggage handling. The airline also has a special assistance department in charge of helping passengers with special travel needs such as special meals or providing mobility aids, health camps at departure and arrival airports. The company also has a department known as Virgin Holidays which is one of the largest transatlantic tour operators in the UK (Cornelissen, 2005, p.131).

The company also operates Virgin Atlantic Cargo which is a business unit for cargo transport. It also offers Must Ride program as well as VEX express courier services for its customers, the former is a guaranteed service for urgent and perishable shipments while the later offers urgent airport to airport shipments. Through its direct flight operating schedule, the company's on-forwarding network stretches to over 350 destinations worldwide, with the help of its global interline and trucking partners. The airline offers a Flying Club which is a frequent flier program aimed to tap the high value customers.

However, the company’s strongest point is its strong brand image. It is one of the UK's largest long haul airline company operating a fleet of 38 aircraft to 30 destinations, including 10 routes to the US, six routes to Asia Pacific, four routes to Africa, one route to Indian Ocean, one route to the Middle East and eight routes to the Caribbean. This strong brand image makes the company's entry into new markets easier and provides the company an edge in the airline market (Iatrou et.al, 2007, p.51).

Bibliography

BALMFORTH, J. (2009). Virgin Atlantic. Hersham: Midland.

BERRY, M. (1998). The new integrated direct marketing. Brookfield, Vt, Gower.

BURGHOUWT, G. (2007). Airline network development in Europe and its implications for airport planning. Aldershot, Ashgate.

CENTO, A. (2009). The airline industry challenges in the 21st century. Heidelberg, Physica-Verl.

CORNELISSEN, S. (2005). The global tourism system: governance, development and lessons from South Africa. Aldershot, Angleterre, Ashgate.        

DAVENPORT, T. H., LEIBOLD, M., & VOELPEL, S. (2006). Strategic management in the innovation economy strategy approaches and tools for dynamic innovation capabilities. Erlangen, Publicis. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=481521.

GREGORY, A. (2010). Planning and managing public relations campaigns: a strategic approach. London, Kogan Page.

IATROU, K., & ORETTI, M. (2007). Airline choices for the future from alliances to mergers. Aldershot, England, Ashgate.

MACSAI, D (2009), 'VIRGIN ATLANTIC'S 25TH ANNIVERSARY', Fast Company, 136, p. 28, Business Source Complete, EBSCOhost, viewed 25 August 2013.

MORRELL, P. S. (2002). Airline finance. Aldershot [u.a.], Ashgate.

'Virgin Atlantic Airways Limited, SWOT Analysis' (2013), Virgin Atlantic Airways SWOT Analysis, pp. 1-7, Business Source Complete, EBSCOhost, viewed 25 August 2013.

Introducing a web affiliated marketing strategy

            The world has changed and is now run by the internet. This means that people rely on the internet to access information as well as carry out transactions. Creating a website would ensure that any potential tourists can view the services that tour operators in this region offer. Thus it is advisable to start a company website. Creating such websites would ensure that the tour operators clearly show what they are offering. This will also ensure that they show what is so special about visiting Mount Huangshan and the activities that will be offered if one visited. This will give the tourists a preview of what to expect should they decide to visit (Faché, 2000).

            This can be accomplished by clearly outlining the activities provided by the tour operators once their customers have arrived at Mount Huangshan, in the website. It is therefore imperative that the site describe in detail what the customers will experience. Once the detailed description has been made, it is advisable to take pictures and if possible a video of the destination (Font & Cochrane, 2005). When added to the site, this will ensure that the customers are able to see where they want to go and why it is imperative that they pick the destination over others.

            As an added advantage, one may add a blog to the site. Blogs assist by allowing not only the tour operators but also the tourists to share their experiences. These ensure that any potential customers can get firsthand experience stories from other tourist and staff. Another angle would be through social media, such as facebook and twitter, which would provide further accessibility by the public at a global scale.

Supply chain management

            Supply chain management is imperative if one is to run a successful tour operation. This is due to the fact that most tourists prefer to get their tourist destinations in packages. A tourism supply chain involves a network of tourism organizations engaged in different activities ranging from the supply side to the distribution and marketing of the final tourism product; it involves a wide range of participants in both the private and public sectors. Thus a complete package would include things such as flight, transportation and accommodation arrangements among other activities that would normally be hard to access individually. The offering of such packages to customers interested in visiting Mount Huangshan would be very advantageous to the tour operators (Sigala, 2008).

            It is essential that the tour operators maintain a good relationship with the other suppliers in the chain. This can be done by keeping tabs on the providers to ensure that they produce quality services. The tour operators can also ensure that they get feedback from these other service providers on the customer reaction and sharing the same with them. This will ensure that new ideas are incorporated as well as mistakes rectified. By doing this the tour operators will ensure that not only do the customers get good deals should they decide to pick Mount Huangshan as a tourism destination, but also that they get the best experience from the tour. All this facilitated by the tour operators rather than individual tourism service providers. Tourism supply chains facilitated by tour operators ensure that the tourist can experience the tour without having to struggle with tour arrangements.

Creating a simplified yet versatile reservation system

            Whilst it is important to make sure that the tour operators have a smooth running system, that will facilitate a fun experience for the customer, it all boils down to keeping it simple. Previously, trivial matters such as reservations used to be made in person. This has however changed with the introduction of information technology. Now, most if not all tourism related reservations are made either via mobile phones or through the internet.

            Tour operators can ensure that their customers are able to call and make reservations. Furthermore, with the internet, these reservations can be made online. This will be achieved by setting up phone numbers that are available all day and night which can be accessed by the booking customers (2012). Providing information on how to book online is also important for this way, the customer is aware of the fact that they can book online. This provision should also be available with affiliate tourist provider to ensure that not only does this information and service reach the customers through individual websites but also by other service providers.

            Due to the versatile nature of tourism, it is advisable provide this service in a multi-lingual way. This will ensure that the customers can access this service in a language they best understand. A well run reservation system is not only beneficial to the customers but to affiliate service providers. Thus, a hotel reservation for a customer can be booked by email for example. In a bid to provide the very best and most competitive tour operation business, it is essential that the business be wide and easily accessible. Thus, it would not hurt to establish more contact centers or more offices for the customers.  

Corporation for better performance

            For any corporation to survive, it has to be able to corporate and work with other key players in its field. This also applies to tour operators and the tourism industry. The first entity that is essential to corporate with is the government or local authorities. This is due to the fact that Mount Huangshan, like most tourist destinations belongs to the government. While both play very important roles in tourism, most local authorities do not have the resources to look for tour operators, most local authorities work with associations. Therefore, the formation an association by the tour operators at Mount Huangshan, will ensure that the local authorizes can be able to work with them. This will ensure that the tour operators are aware of items such as relevant legislation as well as receiving assistance from the local authorities if they need it.

            The formation of an association between the different operators will ensure that they are able to share ideas as well as common problems amongst themselves regarding the business they are in. this corporation is also good for the business for in doing so, they can be versatile by providing many and different tourism packages (2012). This will be achieved by providing packages that can be provided by each other. Therefore, if a customer requests for a package that cannot be provided by a particular provider, they can be referred to another operator in the same region. This will ensure that the customers are still able to come to Mount Huangshan regardless of the tour package they desire.

Introduction of best practice product management and development

            Tourism is a fickle business that need long term sustainability. The fact that Mount Huangshan exists does not mean that tourists will flock to see it. Therefore, it is essential for tour operators in the region to come up with creative ways of ensuring that a tour of the mountain is an experience that the customer would never forget. An example would be the incorporation of locals into the tour experience. Since people who live around the mountain know more about the mountain, incorporating them into the tour as local tour guide helps season the tour. This is because the locals not only know the best spots on the mountain but are also well informed on local myths about the mountain (Budeanu, 2005).

The tour can also involve projects that will sustain the mountain. Such an example would be developing of a tree planting project. This would involve not only the tour operators, but also the locals and the tourists. Therefore, if the tourists are involved in this project they leave with a unique and long lasting memory (Khairat & Maher, 2012). The locals also have a way to earn income from tourism in the region and they don’t end up feeling neglected. This move will be implemented by informing customers about the customers prior to the visit through both literature and the web. During the visit, they will be able to visit these projects and after the visit we will request them to be members of the projects.

            While projects like this are meant to be set up and implemented by local authorities, tour operators can do better. Such projects encourage grass root interaction between all key players. This will also be advantageous in strengthening the bonds between the staff, the locals and the local authorities.      

References

Budeanu, A. (2005). Impacts and responsibilities for sustainable tourism: a tour operator’s perspective. Journal of cleaner production, 13(2), 89-97.

Faché, W. (2000). Methodologies for innovation and improvement of services in tourism. Managing Service Quality, 10(6), 356-366.

Font, X., & Cochrane, J. (2005). Integrating Sustainability into Business: A Management Guide for Responsible Tour Operations (Vol. 1). United Nations Publications.

KhairatP0F, G., & Maher, A. (2012). integrating sustainability into tour operator business: an innovative approach in sustainable tourism. Tourismos: an International Multidisciplinary Journal of Tourism, 7(1), 213-233.

Sigala, M. (2008). A supply chain management approach for investigating the role of tour operators on sustainable tourism: the case of TUI. Journal of Cleaner Production, 16(15), 1589-1599.

Tour Operators' Initiative. (2003). Sustainable Tourism: The Tour Operators' Contribution. UNEP/Earthprint.