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Starbucks Marketing Strategy

Executive summary

Starbucks success has been driven by its effective marketing strategy which has enabled the development of a unique business model in the domestic and international market. Presently, the firm continues to improve its product portfolio with an aim of satisfying customer needs and improving a premium brand image. The marketing strategy employed involve differentiated product mix, premium pricing of coffee and other products and promotion strategies that involve digital marketing such as use of social media in marketing. A shortcoming of the marketing strategy has been the failure of premium pricing and product mix to address the entire market.                                                                            

Company profile and product description

Starbuck Corporation is an American firm that is headquartered in Seattle, Washington and operates in the food and beverage industry in both local and global markets. Its major operation includes purchasing and roasting bean coffee of high quality which it then sells along with other food products. The firm has coffeehouses in both domestic and international markets and these outlets have been a beacon for coffee customers in all places. The company provides an array of exceptional food products to its customers in various stores and in residential areas. The products includes; coffee, where over 30 blends and single-origin premium of this coffee is provided; handcrafted Beverages that consists of coffee that is freshly brewed , iced and hot espresso beverages , other blended beverages not related to coffee , teas and smoothies; merchandise comprising of tea and coffee –brewing equipment , packaged goods, mugs and its accessories and Verismo-System ; fresh foods including sandwiches, baked pastries , grain bowls and salad, yogurt parfaits , oatmeal and even fruit cups (Starbucks Corporation, 2016).

 The company sells products such as tea and coffee through its licensed trademark through other different channels like licensed stores, through equity investees and licensees. The company has at least 3 reportable segments that are in operation including the United States, International and Global Consumer Products Group. The company is present in over 50 countries and also works in conjunction with its store partners who have a wide knowledge on coffee, customer service and expertise in the products offered in the market (Starbucks Corporation, 2016). Since coffee is the major selling brand, coffee buyers are committed to high quality product and follow the product line from the farm to the production process.

Strategic Focus and Plan

The core values of Starbuck are embedded in the company’s mission and vision statement. Mission and Vision statement of any given brand are majorly an indication of organization’s business and even its future and mission is the reason why a firm exists while vision statement represents a future plan. The mission of Starbucks involves inspiring and nurturing the human spirit with the statement being “one person, one cup and one neighborhood at a time” (Starbucks, 2017).  This implies zeal to be a premier provider of the finest coffee product in the global market while at the same time not comprising the social principles as the firm is growing. The mission of the company is also touches in the environment where it is committed to environmental leadership in all aspects of its business. As such the firm ensures that products provided are packaged in an environmentally friendly way and prepared in favorable environment.

The values of the firm are embraced throughout its business operations with the partners, products and customers at the core and these ensure the firm lives by the established values. These values comprises of creation of a culture of belonging and warmth that welcomes everybody; being courageous in action to challenge the status quo and establishing new ways in which the growth of the company will be formed; presence and connection with transparency, respect and dignity; delivering the best in any activity being carried out and being accountable for any results of the company’s operations (Starbucks, 2017).  These values are entrenched in the culture of the firm so that its performance is driven through humanity lens.  On the basis of these values, the coffee houses of the company have become centers where customers come to meet up, chat and even work. Hence, they act as neighbourhood places for gathering, a daily routine in many locations. The values are enhanced by the efforts to ensure that all is done through the humanity lens starting from the firm’s commitment to highest possible product quality to the manner in which customers and communities are engaged for responsible business operations (Starbucks, 2017).

Situation Analysis

The marketing strategy of Starbucks can be understood from the marketing mix which involves a set of tactical and controllable tools that can be blended by the firm for the purpose of producing the response need in the market.  It consists of all the actions taken by a company with an aim of influencing its product’s demand using product, price, place and promotion as the main variables.

Products

 This means the combination of goods and services offered by a firm to its target market. Product-mix is a major factor that led to Starbuck gain a competitive edge over its major competitors like hot chocolate, teas and brewed coffee. The firm has been providing blended beverages so as to target people who are non-coffee drinkers, and serves oatmeal, pastries, juice, sandwiches and salads to cover more grounds on customer needs (Starbucks Corporation, 2016). The firm continues with an innovation of product mix so as to capture a broader market base and this marketing mix involves what is offered to customers by the business. This product mix has resulted from many years of innovation in its operations especially an on-going innovation process of the product whose aim is to provide products that attract and retain a larger pool of customers. Product-mix has been very essential to the oversee target customers where the products have been implemented with a certain standardization, even through in some oversee markets; the standardization has not been in place due to various factors (Geereddy, 2013). For example, in India, customers prefer cream in the coffee than skim milk since dieting has not gained popularity in this society.  So as to satisfy the needs and requirements of different customers, the company has produced special products that have different taste and taste for the purpose of diversity in the market. This ensures that the product offered fits the needs of different kind of customers.

In China, where tea is highly favored to coffee, Starbucks uses a differentiated strategy in creation of Chinese Tea flavor to match the customers in this market. In Japan, the firm has focused on new recipes that match the Japanese taste such as seasonal offerings of Sakura Steamer which comprises of streamed milk that invokes cherry blossoms when in season. In Muslim Countries such as Malaysia, Starbucks obtains authorized Halal, so as to reach out to more Muslim markets. As such, all the products – food and beverages – offered by the company in Malaysia are considered safe to be consumed by all Muslims (Haskova, 2015). Through this product-mix, the firm is able to provide products that do not go against the market’s aversion to pork. In this case, religion is a major factor that informs the product developed to target the markets where the Muslims are majority. This also involves the labeling of the products, so that logos of the firm used in packaging do not make this market to resent products provided by the firm. As such the labeling of Starbucks’ products uses different logos for the markets such as Saudi Arabia s compared to those in other world markets. The product –mix ensures that the targeted customers of the company to not resist consumption of these products due to issues that could be avoided (Haskova, 2015). This has enabled the firm to expand to markets with different cultures both domestic and global markets.

 Place

Starbucks products are mostly distributed and sold through Starbucks store and cafes’. The venues at which products are provided and accessed by the customer are determined by the marketing mix. In this case, the main places where the products can be accessed includes Cafes, retailers, Online Store and Starbucks App. The stores of the firm may be found in any visible and high traffic locations like downtown, retail centers, office building and airport terminals. These places provide favorable environments where customers may enjoy their stay and can read, meet and in some instance access WIFI connection. In addition, customer experience is enhanced by highly qualified baristas, who are trained to for the same purpose(Haskova, 2015). As demand is growing, Starbucks is able to maintain its competitive position by a strategy that involves managing the crowd, traffic and then providing the best services in its stores.  In the expansion strategies, the entry mode has been to select business leaders in the local markets to become their partners. This strategy has been employed by the firm in the larger global market as part of expansion strategies.

The three entry strategies implemented by the company include joint ventures, licensing and even wholly-owned subsidiaries. For instance, the company used a wholly-owned subsidiary to enter into the UK market, and this was informed by the requirement for management efficiency and risk management. In case of New Zealand, the firm is using licensing as the major mode of entry since it lacked the knowledge of this market and the various barriers presented by cultural differences. In case of Spain, the firm used joint venture as an entry strategy since this market presented great potential and a need for high level of control rather than using minimal control as a strategy (Starbucks Corporation, 2016). The strategies have been aimed at obtaining the highest possible expansion to the global market and hence, achieve the overall goal of being the best provider of coffee and other related food and beverages in the global market. The approach for efficient distribution has been to focus on international expansion by first partnering and then country second and hence, the choice of a local partner in this line of business is very important. The choice of different modes of entry in the expansion strategy has played out well for success of the company in reaching out to various markets in both the domestic and international markets (Lingley, 2009). It has enhanced the distribution process of the company and ensured that products are provided in various markets in the global market.

Price

Starbucks prices are set on the basis of premium strategy of pricing. The strategy involves exploiting the behavioral tendency of customers to buy products that are more expensive since they relate high prices to high quality and hence value. Hence, customers are willing to offer higher prices for products of high quality, provided at comfortable environment, having unique tastes and the alignment of places to customers’ convenience where they are able to break away from their busy schedules. As such, the firm is able to provide its coffee products at higher prices that other competing products like Premium Roast offered by McDonalds (Haskova, 2015). This marketing mix is in line with the generic strategy adopted by the firm and which helps in maintaining the brand image at premium value.

 However, in some oversee markets such as Japan, the firm offers products at lower prices but with reduced product size. This is because the coffee industry in this market experiences deflation prices and competition is very stiff. In such a market, it is also quite difficult for the firm to maintain customer loyalty and hence reducing prices attracts more customers. In some places like India, the firm embarks on sourcing raw materials from local farmers as a strategy of saving on production cost while maintaining product quality. The firm also results in offering products at different prices for times different times of the day in certain days (Starbucks Corporation, 2016). This has been used as strategic penetration prices in markets such as Malaysia with an order to capture a larger market share. New products are also offered at lower prices during special times.

Promotion

Product promotion involves various activities whose aim is to communicate a product’s merit and persuade customers in the targeted market to purchase it. The promotion of Starbucks products is mainly done through advertising where communication strategies are employed in dissemination of information regarding the products of the firm. The promotion-mix comprises of public relations, advertising and sales promotion.  The advertisement is done through print media, internet and television, while public relations are frequently been used. Sales promotion involves using items such as Starbucks Card through customers can get freebies. This aspect of marketing mix is an indication of the core importance of advertising, the sustaining roles of sales promotions and public relations in this firm. The firm has also understood the relationship between a product, consumers and digital technology especially social media (Haskova, 2015). There have been efforts by the form to successfully use the three aspects to improve the profile of their brand and even generate higher revenues.

The power embedded in social media makes it possible for firms to develop additional revenue streams through an observation of the interaction between customers and the products, getting their feedback. The communication avenue created allows Starbuck to addresses the needs of the customers and then repositions the brand as the market environment is changing. The firm has been able to maintain competitive advantage by integrating digital marketing through social media into various operations (Trefis, 2016).

Interpretation of the marketing strategy and situation

The marketing strategy adopted by the Starbucks has largely been useful to its expansion and growth strategy. The placing and pricing strategy has ensured the positioning of the brand as high quality in the market and ensured high customer experiences. The product-mix employed by the firm has also ensured that it gains a higher market share in the domestic and global market driven by the expansion strategies. The product differentiation has been the major mark of the improved brand in the market and this has set it aside from other brands of coffee provided by competitors. The focus on customer relationship and integration of communication with customers has enabled the firm to obtain feedback on customers’ needs and ensure that product mix focuses on how to satisfy the needs. The expansion plan has also ensured that the firm can provide customized products targeting the premium customers including the coffee connoisseurs and uber-rich (Trefis, 2016). This has seen the firm gain a higher market share and increases its revenues both in the domestic and global market.  

The distribution strategies adopted by the firm, that has involved opening more stores even in oversee markets has seen the growth of the form grow in terms of market share. The stores enhance the reach of the company and ensure that its penetration into the new markets is possible and especially driven by the partnership, joint ventures and even whole-ownership. The changes on the store mix in both the suburban and urban areas ensure the firm can provide its products to a large market and hence increasing its sales revenue. In addition, with the expectation that coffee market will continue with its constant growth over the coming years, the marketing strategy of Starbucks enabled it to pull all stops and position is brand in way that it will be perceived to best coffee shop in any market.

 In these markets, the firm is able to offer coffee product mix that will keep the brand a high notch in the market. Even where the company has faced challenges in the market due to fluctuations in costs of raw materials and increased competition, a well established premium brand has ensured that the form remains afloat and competitively beats its competitors. Through the product and store portfolio, the firm is able to address various ubiquity and competition challenges through offering different varieties and high quality products to its customers (Trefis, 2016). An important aspect in the growth is the promotion efforts using the digital marketing and more so, the use of social media. It has enabled the firm to build customer relations and hence brand recognition in the market and thereby gaining a competitive advantage over rivals. A major drawback of the strategy especially in pricing is that the firm has not been able to reach out to all the potential customers. This is true for the high prices of coffee that have sometimes been quite high for some especially when costs are increasing. High prices may only attract high end consumers and leaving out the rest. To correct this, the product mix and pricing should also target the lower class consumers and this will make it possible to introduce a new product.

References

Starbucks ,(2017).OUR MISSION. Retrieved from:https://www.starbucks.com/about-us/company-information/mission-statement

Haskova, K. (2015). Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, 2015(1), 11-29.

 

Geereddy, N. (2013). Strategic analysis of Starbucks corporation. Harward [Електронний ресурс].–Режим доступу: http://scholar. harvard. edu/files/nithingeereddy/files/starbucks_ case_analysis. pdf.

 

Lingley, R. (2009). Marketing strategy and alliances analysis of Starbucks corporation.

 

Starbucks Corporation, (2016). Form 10-K. retrieved from: https://www.sec.gov/Archives/edgar/data/829224/000082922416000083/sbux-1022016x10xk.htm

Trefis ,Team,(2016).Let's Look At Starbucks' Growth Strategy. Retrieved from: https://www.forbes.com/sites/greatspeculations/2016/09/19/lets-look-at-starbucks-growth-strategy/#3bd077b03d71

 

 

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Table of Contents

Walmart Stores Inc. Profile. 1

Company Description. 1

Retail Industry Description. 2

Walmart Influence in the Retail Industry. 3

Market Expansion Product/Services. 4

Buying Proposition. 4

Company’s Rationale for International Expansion. 5

Buyers/ Target Market 7

Buyer’s Demographic, Psychographic and Lifestyle. 8

Competitors. 10

SWOT Analysis. 10

Strengths. 10

Opportunities. 10

Threats. 11

Weaknesses. 11

Conclusion. 11

References. 12

 

           

            Walmart Stores Inc. Profile

            Company Description

Walmart Corporation is engaged in wholesaling and retailing commerce globally. The company operates via the use of three trading segments which are U.S and international Walmart alongside Sam’s Walmart Club (Chekwa, Martin & Wells, 2015). The Walmart segment that is located in the United States is an incorporation of retailing stores as well as the technology or digital retailing business within the United States (Chekwa, Martin & Wells, 2015). The company also provides financial servicing as well as all the other related goods like bill payment, money orders as well as wireless transfers. On the other hand, the International Walmart is mainly involved in the category segment of wholesaling, retailing as well as other business formations outside the United States (Chekwa, Martin & Wells, 2015). The business categories that are within the segment include supermarkets, hypermarkets, electronics, clothing, home advancement, digital retail, drug as well as convenience stores (Timilsina, 2015).

Walmart Company is categorized to be among the top largest corporations in the global context in regard to finance, resources, profitability and market share (Timilsina, 2015). The success has particularly been acquired through the use of strategic marketing and operations. The primary strategies that the company has applied and acquired a competitive position are differentiation and cost leading. Walmart Stores Company is today not only categorized as the largest retailing company globally, but it is graded among the prevalent companies internationally (Chekwa, Martin & Wells, 2015). Walmart as the retail gigantic overpowers its close competition by creating close to three times the general profit that is generated by the seconding global retailer, Carrefour that is a France based company (Chekwa, Martin & Wells, 2015). Locally the company holds more than one million workers which makes it be the largest private employer in the United States. The position that is held by the corporation gives it the highest responsibility of making communal contributions in order to support its operations. Given that it is an organization that has risen strategically its success is particularly payable to the shareholders.

            Retail Industry Description

As the leading seller in the retailing industry, the company’s operates under the influence of the philosophy of saving individual’s money in order to ensure that they exist in life’s quality (Timilsina, 2015).  The statement is, therefore, a representation of the company’s focus towards lowering the general products and services costs consistently in the quest of satisfying their needs as well as acquiring a foremost position in the retailing sector. The retailing industry is today characterized by intensifying competition by well-established corporations such as Tesco and Carrefour a trend that Walmart acknowledges (Timilsina, 2015). In order to overcome this competition, the primary vision of the company is to raise the general standard of existence to all individuals by ensuring that they provide quality goods at reduced prices a strategy that has played part in growing its consumer base and supported it in becoming the leader in the retailing sector. The company is mainly driven by being a shareholder-centric business where it values the needs and concerns of the employees, consumers, and investors. The company, therefore, strives in increase its shareholders earning while encouraging employees for focus on quality performance which has, in turn, resulted in quality and preference of its services and products among consumers (Timilsina, 2015).

            Walmart Influence in the Retail Industry

The company’s mission clearly demonstrates that it is basically focused on the needs of the consumers and its primary stakeholders. In that, it seeks to ensure that it offers quality goods and services at the least prices in order to maximize life’s quality (Hazzawi, Palladini & Martinelli-Lee, 2014). This strategy has served the company significantly, by growing its consumer base and ensured that it outweighs its competitors. It is this focus that the employees are encouraged to work collaboratively which leads to cost reduction and increased demand of its provisions among the consumers. The company’s management additionally incorporates flexible and supportive regulations which encourage the workers to offer their utmost contributions which have assisted the organization in achieving success. Simultaneously the company is able to sustain its cost leading approach given that it is committed to reducing its operating expenses regularly in order to achieve a larger consumer base. With the changing demands and preferences of the retailing market, consumer satisfaction is of the essence in achieving and sustaining success (Hazzawi, Palladini & Martinelli-Lee, 2014). Today, as the demands of the consumers change the consumers are becoming highly sensitive to prices, convenience, flexibility as well as quality and these forces must be accounted in order to achieve satisfaction that leads to competitive positioning and increased sales.

            Market Expansion Product/Services

Similarly, to most grocery and retail companies, Walmart provides generic brands which are characterized by reduced prices when equated to the name brand goods (Hazzawi, Palladini & Martinelli-Lee, 2014). Most of the services and products that the company provides are privately labeled but the capacity of production is adequate for Walmart to run the entire manufacturing works. This market expansion that is mainly targeting to venture in Russia and Vietnam will focus mainly on electronic specialty. In that, today, individuals make a higher investment in home and workplace electronics based on technology demands. The electronic specialty will, therefore, be useful for the organization in expanding while targeting the low and medium earning individuals in the market who make the highest populace in both countries. The products were mainly selected given that they are characterized by lesser competition given that the online and the discounting stores have intensified the retailing competition even further. In order for the company to sustain its competitiveness within the industry then it is better to focus on this specialty with little competition and lesser risks in order to establish its self well prior to making additional ventures (Hazzawi, Palladini & Martinelli-Lee, 2014).

            Buying Proposition

The electronic specialty will mainly focus on innovative and quality products. In that individuals are interested mainly by the quality of products despite being sensitive to the prices. The products will be of high quality, easy to operate with the necessary features, convenient and lower prices when compared with what is being offered in the market (Hazzawi, Palladini & Martinelli-Lee, 2014). The products will not only provide entertainment to the consumers but will also be objected at ensuring that their life’s quality is enhanced. The prime priority of the company is to improve individual’s existence through the provision of quality as well as lower prices that can support money saving for other purchases. In addition, the products will ensure that the consumers are well informed in regard to technological innovation. This will not only create flexibility but also convenience in general based on the availability and less need for maintenance. In that quality is bound to serve the consumers for a longer period with fewer expenses which will not only increase their loyalty but also the willingness to make more purchases in general from the company (Ireland, Hoskisson & Hitt, 2008).

Walmart Company creates value by focusing on consumer’s satisfaction. The needs of the consumers must be accounted for adequately in order for value to be created. Consumer satisfaction is, therefore, created by quality as well as low cost. In that consumers might be willing to buy certain products based on the convenience and quality but the premium costs discourage them (Ireland, Hoskisson & Hitt, 2008). This leads to poor life’s quality given that the consumers are not able to enjoy the products. Walmart, therefore, strives to lower its general cost of operation consistently in order to offer quality goods at lower prices without affecting its profitability (Hazzawi, Palladini & Martinelli-Lee, 2014). This strategy has enabled the company to acquire success, a larger consumer base, high profits as well as the leader in regard to offering quality at minimal prices.

            Company’s Rationale for International Expansion

Walmart Company has consistently strived to sustain its competitive position given that the retail market is characterized by intense competition. To begin with, the company is required to expand its ventures even further on the ground that there is a large market in the global context that is not yet exploited which would help it in acquiring success in general (Ireland, Hoskisson & Hitt, 2008). The company has the financial size given that its business size is significant in regard to resources, human resource, market share as well as a positive reputation. It is through these forces that the company would withstand pressure adequately. With the significant market share globally this provides the company with more sources for financing acquisition. The expansion, into fresh markets and particularly those that are characterized by more trade risks such as Russia and Vietnam based on the political status in the countries necessitates more resources in creating awareness as well as products familiarity (Williams, 2011). In addition, Walmart contrary to the other retailers has an efficient and dependable chain supply which provides the company with resilience from any threats that might be derived from the market. The supply system is efficient because the company has made the high-technology investment that plays part in the managing as well as controlling of products movements especially from the traders to its stores.

Despite the fact that Walmart has a lot of consumers and has acquired a significant market share the low entry barriers into the retailing market create even higher threats for competition. This, therefore, implies that Walmart must expand into other distinct markets in order to grow its brand and consumer base as the primary approach to fighting the persisting competition (Williams, 2011). Most companies in the retailing industries are also investing heavily on cost leading and differentiation strategies which, therefore, implies that the move is bound to affect its profitability and competitive strategy. The company should, therefore, be searching for fresh international markets in order to sustain its competitive position and grow its market even further. Its leading position is not permanent and therefore measures should be taken in order to guard it against any kind of threats that might affect its profitability as well as share in the market in general (Williams, 2011). More so the company is focused on building high brand images globally which can best be generated via extensive expansion to those market that is not adequately exploited. This will also play part in increasing the company’s efficiency in general given that the company will have the experience to outweigh the benefits over the threats of the investment in general. The expansion will not only bring financial gains but will also be useful in building a wider market share from the different markets. The retailing market, particularly in the United States, is characterized by increased regulations and high competition which affects business profitability. In this context, Walmart can choose to expand in order to avoid the regulation while venturing in markets that have lesser regulations, therefore, promoting business growth (Williams, 2011).

            Buyers/ Target Market

Walmart Stores targets the low and medium earners and not particularly the wealthy individuals. This is individuals who are willing to purchase products of quality but are sensitive to the prices. The high-income earners are not excluded given that the company focuses of superiority of goods as well as services. Given that the products sold are not those that would be accounted as high-end this implies that the company does not target the rich (Williams, 2011). The target for the company is for the larger populace from the individuals in need of finding low-priced products at convenience as well as quality. This is the target populace that the company seeks to ensure that their lives are made to be better by providing satisfaction based on their needs. The products buyers are the users of the products given that sales are made in retail from the stores. The buyers who are the consumers acquire the goods from the company’s stores which are located to their convenience (Williams, 2011). The buyers can be characterized as prices and quality sensitive and therefore the market venture should be guided by quality as well as affordability to attract majority and create consumer satisfaction.

            Buyer’s Demographic, Psychographic and Lifestyle

Walmart targets persons of all ages both male as well as females. The minimal education level of the target is high school or college. These are the populace that holds a clearer understanding of the general understanding of quality, convenience and cost efficiency (Williams, 2011). The income level that is targeted is for the individuals or families that are characterized by low up to middle income. This incorporates single individuals, children, and youths, older, married and retired persons. Occupation includes students, laborers, subordinate workers, middle leveled staffs as well as those from the private sector. This is the persons that make products purchases with a lot to inquire about particularly in regard to using, prices and quality (Chekwa, Martin & Wells, 2015). The populace is not particularly loyal to any given brand and when making purchases they are not in specific search of any given brand but they will but the one that is available based on their needs and convenience. The behavioral characteristics of these demographics are that they are in search of benefits which in this case is the cost and quality benefits. Their personality is the restricted or the cost-sensitive based on their limited disposable income. The targeted social classes are the low, middle and the working ones while they might be first-time, probable, regular and products buyers (Chekwa, Martin & Wells, 2015).

It is important to note that Walmart mainly targets persons of all ages through the use of its customized marketing messages. However, specified attention is subjected to the young buyers based on the strategic significance of acquiring young buyer’s loyalty for the long run gains (Ireland, Hoskisson & Hitt, 2008). In addition to the low prices focus, Walmart is able to attract the young buyers through an effective collaboration of online marketing. Based on the group’s sensitivity to prices and quality they prefer the company’s products over those offered by other companies such as Tesco, Trader Joe’s, Carrefour and so on (Chekwa, Martin & Wells, 2015). For the electronic specialty, the target populace is the early adopters. These are mostly the young buyers who are willing to taste technological advancement early. For the young generation, all that is important to them is technology as well as innovation. These are the consumers who are in the changing lifecycle where their needs change gradually. Products are therefore purchased in order to improve their living through creating entertainment on regular grounds (Ireland, Hoskisson & Hitt, 2008).

In order for Walmart to create value in the expansion countries, it will be required to have adequate human resources, stores and reliable supply and distribution channels. In order to sustain its primary values which are low cost and quality the company will be required to operate under low expenses in order to sustain the goods at lower prices and yet quality (Ireland, Hoskisson & Hitt, 2008). This will require it to exploit low labor workforce which will play part in lowering its operative expenses. The company will be required to distribute the products in the country as well as invest on consistent marketing in order to create awareness as well as familiarity with the products given that the expansion is in fresh markets. The consumers should be made to understand the low prices, convenience and quality benefits that the products are bound to offer (Ireland, Hoskisson & Hitt, 2008). The workforce will be playing part in the distribution of products, selling in the stores as well as marketing operations. These will, therefore, require individuals will appropriate marketing as well as consumer relation in order to build better relationships with the public (Ireland, Hoskisson & Hitt, 2008). Marketing and servicing facilities will be necessary in order for facilitating the needs of the consumers as well as the promotion operations that will seek to build familiarity and awareness.

            Competitors

Walmart has made some irresistible developments in the recent years being the largest retailing company globally. However, its competition is mainly driven by several companies which are well established in the industry such as Tesco, Carrefour, Trader Joe’s and Whole foods (Timilsina, 2015). Walmart has, however, made strategic development given that it generates three times the general revenue that is developed by the competitors. However, it cannot be ignored that the companies are well established and have acquired significant shares in the market and are well situated in the global context (Timilsina, 2015). This means that Walmart should expand to fresh markets as well as ensure that it is completely differentiated from the competitors. These are the same competitors that will be competing with the firm in Vietnam and Russia.

            SWOT Analysis

            Strengths

Walmart is particularly an authoritative retail brand in the global context. It has created a positive image in regard to its money value, opportuneness and extensive products range in a single store (Timilsina, 2015). Walmart has also acquired substantial growth in the recent period through its global expansion. In other words, the company particularly benefits from its large size, resources and a significant market share (Timilsina, 2015).

            Opportunities

The existing opportunities for Walmart are that it can adequately merge or venture through business association by focusing on specific markets. The company’s stores are currently operational in few countries which demonstrates that there are more opportunities to venture globally (Ireland, Hoskisson & Hitt, 2008). There are opportunities where the company can venture in markets such as China, Russia, India, and Vietnam and so on. Fresh ventures offer greater opportunities for exploiting market advancement based on its products diversity. Cost leading, differentiation, and diversity will continue to attract even more consumers (Williams, 2011).

            Threats

Walmart being the retail leader implies that it is the primary competition target on the domestic and international market. Operating in the global context also implies that the company is being subjected to political issues from the diverse countries of operation.  In addition, the general expenses of manufacturing and transporting most of the consumer goods tend to be lower based on demand changes which result in prices competition which is a threat to profitability (Williams, 2011).

            Weaknesses

As the leading grocery retail, it has an extensive venture which implies that despite its competitive advantage it will become weaker in regard to control based on the large venture. In addition, it lacks focused competitors because its products are primarily diverse. In addition, its presence globally is minimal given that it is only located in few countries which implies that more marketing is a necessity (Williams, 2011).

            Conclusion

Walmart is required to expand to other markets based on its need to expand its market, finances, and brand. In this context, it has to increase its global context given that its competitors are rapidly moving into distinct markets globally. Walmart has the capability to succeed in this venture because it has adequate resources, finances, and reliable supply. With a good reputation in the global market, this means that the company can utilize the advantage in building positive relationships in the quest of sustaining its values in products diversity, quality and well as affordability. The expansion is suitable given that it will be facilitated by its strengths despite the fact that it is bound to face competition threats.

 

 

 

 

 

 

 

 

 

 

 

 

References

Chekwa, E., Martin, J., & Wells, K. (2015). Riding On the Waves of Sustained Competitive Advantage: Consumers' Perspectives on Walmart Corporation. International Journal of the Academic Business World, 9(1), 61-73.

Hazzawi, I. A., Palladini, M., & Martinelli-Lee, T. (2014). The Wal-Mart Stores, Inc.: An American Dream That Touched the World. Journal of the International Academy for Case Studies, 20(2), 13-33.

Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2008). Understanding business strategy: Concepts and cases. Mason, OH: South-Western Cengage Learning.

Timilsina, B. (2015). Competitively Distinct Operations as a Key for Superior and Sustainable Business Performance: An Example from Walmart. Management (18544223), 10(3), 273-292.

Williams, C. (2011). Management. Mason, OH: South-Western Cengage Learning.

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Marketing Plan Company Brightstar Corp

Abstract

The paper discusses a marketing plan for Brightstar Corp and includes the various marketing objectives and how these objectives will be achieved. It also highlights the various aspects necessary for an effective marketing plan.

Goals and objectives

The major goal of Brightstar includes simplifying the wireless world. The company’s objectives include providing mobile accessibility to everybody, looking after every phase of lifecycle for the firm’s customers from the manufacturing point to time of trading. It also includes remarketing the product which puts the firm at the centre of wireless ecosystem (Brightstar, n.d).  The marketing objectives of the firms include providing mobile accessibility to their customers in a simplified manner; providing products that meets the clients’ quality and specifications by inspecting its manufacturing and distribution; presenting the product to the customer through remarketing process. This ensures the achievement of the company goal after the aforementioned objectives have completed through various marketing program.

Initiative ROI and Resource Allocation

An essential aspect of the marketing dashboard is to measure changes in cash flows which are generated through the various marketing programs incorporated in the action plan over the short-term. In addition, it will be necessary to measure resource allocation efficiency in the implementation of the marketing programs, the firm customers and dollar units.

Evolution of customer Asset and the brand

This involves evolution of Bright star’s assets that are used in the marketing process. This will involve brand and perception of the customer of the services and products provided by the firm. Customer relationship is an important aspect which will be enhanced by high quality services and products. This also involves an evaluation of the growth of asset and the expected future progress.

Skills

 The plan is to have tracking of marketing team competences and skills against a set of determined proficiency goals as need in the firm.

Tools

The plan involve availing tools that will increase insight while ensure that distribution process is eased through reduction of effort employed. Tools will be necessary in making the marketing process a success.

Diagnostic insight

The plan is to provide enough knowledge and insight into areas where expectations were not met and identifying areas that need adjustment.

Predictive value

The plan is to have the an evaluation of the various marketing programs including campaigns so as to gain insight on the extent to which objectives and goals have been achieved .

Effectiveness and efficiency

The plan involves enhancing effectiveness and efficiency of the various marketing programs and investments so as to maximize on the returns on the entire marketing investment. The marketing investment will be evaluated for the entire process.

Reference

Brightstar, (n.d).Retrieved from: https://www.brightstar.com/about/

 

450 Words  1 Pages

 

 Huawei-Leica Alliance

 

Question 1

The primary reasons of the partnership between Huawei Technologies Co., Ltd. (Huawei) highlight the pursuit for sustainable competitive position by quality in various markets. The business collaboration involves aspects of brand reestablishment intended to hit products of Huawei’s competitors in both the domestic and global markets. For instance, the company faces rigid rivalry from its competitors including Apple Inc at the domestic telecommunications market hence the need to strategize on quality improvement. Market proceedings’ of the pat indicate that Apple Inc and Samsung continued to thrive in the premium markets over Huawei’s products owing to a difference in product quality (Kittilaksanawong & Mason, 2017). For that reason, Huawei utilizes its partnership with Leica to produce a Smartphone with advanced camera features that meets consumer requirements.

Strengths

Huawei is a diversified company, which grabs it a sustained opportunity for increasing consumer business. According to Kittilaksanawong and Mason (2017), the company has a large consumer business providing a diversity of products including Smartphones, tablets, and other products and services in the telecommunications industry.  Importantly, the increasing growth of its consumer growth grounds a commendable share in the global telecommunications market. The case denotes that Huawei has continued to build an excellent reputation in the market, which attracts a good number of consumers. On the other hand, the company registers a huge amount of revenue that boosts its resource capability. For instance, it invests highly on research and development (R&D) and also, Huawei has the ability to employ the feasible number of labor force in operations (Kittilaksanawong & Mason, 2017).

The feasible growth of consumer business and a complex base of resources facilitated by large returns from Smartphone sales, for instance, in 2015, Huawei plays an important role towards the success of this alliance (Kittilaksanawong and Mason, 2017). Thus, the dual-brand (Smartphones) registers adequate rates of sales in different markets across the world considering that its products had been previously reputed in utmost 170 countries by 2015. Huawei’s intentions for the partnership insinuate quality improvement, and its revenue enhances goal accomplishment. Through revenue, the union has and continues to employ performance oriented workforce thus facilitating operational efficiency towards quality production.

Weaknesses

Market saturation in the telecommunication industry builds Huawei’s major weakness in the market. Most of its existing markets such as the European and Chinese markets are saturated since nearly everyone in the industry has a Smartphone (Kittilaksanawong & Mason, 2017). Market diffusion illustrates that the company has to strategize on both its business networks in search for potential emerging markets while quality of its Smartphones. Its product segment encompasses gradual technological transformations with a lot of players in the supply chain. The escalating number of Smartphone producers posits instant threats to its competitive position since competitors continually embrace technological advancement to better their services as well as providing services at reduced prices. As a result, Huawei is forced to formulate a production strategy that is able to facilitate quality and low product pricing, which reduces the alliances returns in sales.

 

 

QUESTION 2

Leica faced significant challenges when selling its expertise in optical technology, particularly, hindrances to declare its flexibility and ability to engage in another product segment. It lacked an opportunity to show the aptitude to contribute for quality improvement in a new product sector. As a result, the alliance with Huawei facilitated its determination for engaging in a novel market section considering that Huawei is in a different product segment (telecommunication). In addition, the business coalition was intended for the development of a practical background that is able to attract consumer companies in different product segments (Kittilaksanawong & Mason, 2017).

The camera landscape is incessantly receiving sufficient threats of consumer decline caused by the rise Smartphones. Smartphones are replacing the camera industry considering that they contemporarily compose less complicated optical features, which deter the use of former gadgets in the photography market. Consumers of the latter optical technologies are turning to simple gadgets over traditional since they provide better services with efficiency and also at affordable prices. Smartphones underline the logic of effectiveness and affordability in relation to traditional cameras, which highly motivated Leica to form a union with Huawei (Kittilaksanawong & Mason, 2017).

Strengths

The German based company has a long history in the photography landscape and importantly, with a good consumer image. Kittilaksanawong and Mason exemplify that Leica is well known by stating that its products had been waving in the former photography (2017).  Specifically, the authors critique the “red dot” as the major brand that established a reliable consumer base for Leica. Considerably, Leica was referenced as the home of quality in photography before the latter establishments of digital transformation (Kittilaksanawong & Mason, 2017). Leica includes a set of essential contributions that are able to cause positive outcomes of the alliance. For instance, former consumers have the will of experiencing its quality-expertise in the digital format thus enhancing the progress of dual-brand strategy.

Weaknesses

Leica encountered significant challenges in the digital photography since it lacked adequate resources to cause technological transformation. It thus suffered a meltdown of its revenue considering that Smartphones are continuously replacing traditional photography. Its lack of digital diversity compresses Huawei’s financial investments considering that to a large portion Leica depends on Huawei to establish its business mission from the alliance.

Question 3

Though in different product segments, Huawei and Leica are two companies which have had long standing dominance in specific segments. Huawei grabbed satisfactory attention in the telecommunication industry in regards to the performance of its products in different markets. It is among the top ranked performing firms in telecommunications although it receives stiff competition from its core rivals owing to quality difference of encompassed features. Concurrently, Leica is a quality performing firm in photography with extraordinary abilities regarding consumer preferences but lacks superiority in some product segments. Therefore, the two are complementary partners based on the fact that they both clarify aspects of quality production.

The outsourcing is aligned with increased quality of the dual-cameras in the P9 branded Smartphone. This is a marketing advantage to Sunny Optical considering that the firm lacked market exposure despite of its technological abilities in photography. The market success of P9 exposed operations of Sunny Optical to the global market while advertising the viability of its technological contributions to quality improvement not only in photography but also in other product segments. Conversely, Sunny Optical considers outsourcing just as an opportunity to market its technological capabilities which in turn deters chances for improving service provision in its product market. For example, Sunny’s consumers are slowly turning to Huawei’s product segment, a movement that minimizes its revenue in the photography world.

The Huawei-Leica coalition proposes a successful future in the encompassed markets. Huawei is a competent competitor in the telecommunications sector excluding the lack of market superiority in photography (Kittilaksanawong & Mason, 2017). In contrast, Leica needed exposure in the consumer market, suggestible, in a new product segment in spite of its fascinating photography capabilities. The coalition holds sustainable market advantages for both companies. The collaboration offers Huawei the chance to develop its standing in photography whereas helping Leica expose its capabilities in other product segments.

 

 

 

 

 

References

Kittilaksanawong, W. & Mason, R. F., (2017). Huawei-Leica Alliance: Reinventing Smartphone Photography or Building Brand Image? Ivey Publishing

 

 

 

 

 

1211 Words  4 Pages

  1. Company analysis
  2. Product description

The products are salsa dishes and particular Mexican dishes such as the cheese dips, tamales, tacos, beans and guacamole which are served at Casa Silguero, Texas state. Salsa made at Casa Silguero is among the best types of dishes around the United States and in this case Texas.

  1. Distribution strategy

The use of the online based platform is advantageous to the company. Currently, the world and especially the young guys are in the online platform, and they are the biggest target market for these products (Berry et al., 2014). Applying the best strategies such as being convenient at the distribution level of the products will create customer loyalty and earn the company big bonuses and competitive advantage. Use of the family strategy to improve the market share as a way of distribution is very advantageous since it creates a customer base for the products.

  1. Industry analysis

       Competitors & positioning

The biggest competitor in the salsa dish making industry in Texas is Riba foods which also have an online store where customers can get to order and delivered in real time.  Riba foods deals with salsa meals and this creates a major threat to Casa Silguero. Both competitors have positioned themselves in the best places when it comes to the location which is either in the city centers of at the online platform (Ruvalcaba, 2015). The industry is stiff regarding competition but since Texas is a barbeque eating joint, success is assured through offering a variety at Casa Silguero.

  1. Target Market
  2. Grocery Wholesalers

The target market for salsa dishes include the grocery stores which in many cases are in high demand for the dishes. This can be attributed to the fact that the wholesalers are the ones who make some of the ingredients available for the store to prepare the final products. Some of the grocery stores include Albertson’s wholesalers and Tom Thumb grocery which is located in Texas. Both stores are almost the biggest stores and some of the joints in Texas where grocery is found to be at customer preference.

  1. Supermarkets and grocery stores

JDs supermarket and Lowes supermarket are some of the major joints where Casa Silguero has as the target market including Costco store. Combining this three major joints allows the company to grow significantly and to greater levels. The supermarkets can provide a platform for the salsa market to grow since customer’s stream into this places more often. Customers can also be available at the supermarkets and create a greater chance for marketing the brand.

iii.    Restaurants

Particular restaurants have found it very convincing to have the salsa dishes at their disposal for sale. Salsa and the Mexican dishes have become the livelihood of some of Texas people, therefore, creating a market hub for the dishes.

  1. Business suggestions and conclusion according to the SWOT analysis

Casa Silguero has gained a competitive advantage when it comes to offering quality services. The idea of having the company as the best in Texas improves the customer base (Ruvalcaba, 2015). The distribution strategies such as the online advantage will assist the company in growing to greater and better levels. In financial growth through the company inviting members to join in the market will assure prosperity for the products (Berry et al., 2014). Expanding from being a single joint to several joints all over Texas is an advantage to the store. The entry level of the business is also favoring the growth. Due to the fewer requirements to establish a joint, the business has diversified its products to include some groceries and restaurants in the market plan.

 

 

 

 

 

 

 

 

 

 

 

References

  

Berry, S., Khwaja, A., Kumar, V., Musalem, A., Wilbur, K. C., Allenby, G., ... & Mele, A. (2014). Structural models of complementary choices. Marketing Letters25(3), 245-256.

Casa Silguero (n.d). Retrieved from: http://www.casasilguero.com/     

Ruvalcaba, C. (2015). Market Legitimacy: An Investigation into the Legitimation of Hispanic Cultural Markets. University of California, Irvine.

Grey House Publishing, Inc. (2007). Food & beverage market place. Millerton, NY: Grey House Pub.

669 Words  2 Pages

JPMorgan Chase

The company was taking up projects which are very risky for the business such as the Panama Canal, Erie Canal and another railway line expansion for the opening of the doors to economic and development of the economy in the United States. The innovations of the automatic teller machines have also been on the rise, online banking and the credit cards, therefore, being the backbone of the company. Prior to the financial crisis of 2008, JPMorgan was heavily involved in committing frauds that led to it paying more than $13 billion for the mortgages (Zeissler & Metrick, 2014). Through the various projects it undertook, the company has benefited from the contracts which have made it possible for it to be successful. Getting involved with the international world of business has created an opportunity for growth of the company. The same projects which have made the company very successful have been the root cause of problems to the company. For example, the company has been paying billions of dollars in terms of legal fines to settle some of the projects that made the company so successful.

Job performance strategy that the company has been dealing with for now is the issue to do with ensuring that they have a system of having every employee accountable for their actions. The company has set up computers that will be very beneficial in identifying the intentions of a person even before they act. This will help in reducing the cases of irresponsibility are dealt with even before they become factual (Plosser, 2013). Having a monitored area will create an opportunity for the company to grow in terms of avoiding cases to do with frauds and abuse of resources. The company will now save on the amounts of money it would have spent in terms of making settlements in courts and other issues brought about by the employee's behavior. Company policies and rules have been formulated to ensure that the employees follow the rules accordingly failure to which they will have to suffer the consequences of breaking the stipulated rules. The shift will most likely not hurt the company in any way since it is meant to ensure that the rules and regulations are followed strictly (Zeissler & Metrick, 2014). Too much surveillance is the only emphasis that will hurt the company since there will now be court actions to prevent the company from being too intrusive into other people’s lives. Having a system where the society has been put under control helps improve the productivity of a place and therefore increase the output.

Use of computers to counteract on the events that happen in the offices is the latest method of trying to contain the situation at JPMorgan Chase. With the computers in place, achieving the desired results is very simple since the algorithm implemented is able to detect any behavior which might lead to the company spending too much money in correcting the issue (Zeissler & Metrick, 2014). Employees who might use the emails to abuse of conduct illegal acts are identified very fast and flagged immediately to ensure that they do not act against the will of the company. The use of this system is not acceptable since the system has the capability of reading the emails of every employee and this is breaking the privacy of the employees. Such acts are not acceptable even by law. The only way the company can manage the effects that might arise through this system is by using the company policy to include the use of computers in ensuring quality is observed (Plosser, 2013). By this, the employees will have to think of what they want to do or say or type before acting since they are on the company’s premises.

 

 

 

 

References

Plosser, C. I. (2013). The Economic Outlook and Long-Term Growth; 34th Annual Economic Seminar, Sponsored by the Simon School of Business with JPMorgan Chase & Co. and the Rochester Business Alliance> January 15, 2013, Rochester, New York (No. 75).

Zeissler, A. G., & Metrick, A. (2014). JPMorgan Chase London Whale D: Risk Management Practices.

 

683 Words  2 Pages

Company Description & Mission Statement

  1. NAB Company Name and Its Significance

Smoothie Fresh Gold is the name of the corporation. The name was selected in order to create a more healthy and appealing image in the consumer’s mind. This is because currently, consumers are not just concerned about prices and services product but also the healthy aspects. The name will thus offer an outstanding name thus explaining our products quality with Gold being a representation of the highest quality level.  The company’s prestige sense is achieved by the use of this name given that Gold is considered to be prestigious. In addition, it is an indication of the company’s product state by the use of the term Smoothie and fresh representing natural and healthy which is something that all consumer’s needs.

The corporation will be offering frozen drinks which will fall under the categories of milkshakes and smoothies developed with the use of fresh ingredients acquired locally. Additional products that will be provided as suggested by the company’s name are frozen yogurts made from fresh and locally acquired milk. Healthiness is the new concept in the modern society which many are trying to acquire from drinks and meals (Longenecker, 2009). This will, therefore, seek to promote wellness as well as healthy living styles in the contemporary society through a fashionable manner. The name does not only suggest quality but also creativity as the drinks will be made from diversified varieties to create any ordered taste as well as preferences.

  1. Company’s Mission Statement and a rationale for its components

Smoothie Fresh Gold Company’s mission statement is to nurture and improve diets through the creation of flavorsome drinks that are made of quality, healthy and satisfying ingredients. This statement demonstrates that the corporation is a consumer-centric one that cares about the consumer’s wellness thus focusing on the provision of quality. In addition, the statement also indicates the objective of getting to the consumers through quality services. The company does not only seek to create quality products as well as services rather the needs of the consumer’s based on preferences and tastes are to be accomplished first in the quest of achieving consumer satisfaction. Through offering frozen and healthy beverages that are filled with nutrients this demonstrates that the company is the favored option in enhancing nourishment and proper diets (McIntosh, 2012).

The use of local ingredients in the preparation of products is aimed at an approach to social responsibility by helping the locals grow. We see our corporation as a community partnership thus there is a need to utilize natural products while seeking to sustain environmental safeness. The company’s product is a beautiful creation derived from the art of considering a number of aspects such as quality, affordable and diversity in regard to tastes and preferences. The company strives in becoming a locally established non-alcoholic drinks corporation while capitalizing on families and individuals interests by settling on healthy beverage choices. The company is a frozen food based organization that encourages and offers undying support to healthy living with healthy and delicious mixtures acquired from a mixture of natural farm products. The objective of settling for smoothie products as stated by the mission is due to the increase of healthy diets demands which are currently being utilized as substitutes for major meals as well as snacks. In addition, this will help in creating better relations with consumers as the products seek to improve their health wellness (Lee & Carter, 2012).

 

 

References

Lee, K., & Carter, S. (2012). Global marketing management: Changes, new challenges, and strategies. Oxford: Oxford University Press.

Longenecker, J. G. (2009). Small business management: Launching and growing new ventures. Toronto: Nelson Education.

McIntosh, T. J. (2012). The sector strategist: Using new asset allocation techniques to reduce risk and improve investment returns. Hoboken, N.J: John Wiley & Sons.

637 Words  2 Pages

Case study - GOLD STAR CHILI

SWOT analysis

Strengths

 The Customers of the company have been segmented into various groups which comprises of restaurant customers, retail customers and franchisees with each having described characteristics. The strength of the firm stems from focus groups, one-on-one contact, and comment cards for customers and having structured meetings. These are meant to meet the franchisees’ need at different levels of growth for each. This enabled by analyzing the location in terms of geo-demographic before building, regular surveys done by use of questionnaires and evaluation of features of services or products through informal and formal ways. In addition, evaluating the learning and listening processes inside the business services serves to benchmark competition. Visiting competitor’s location and development of techniques for measuring customer satisfaction is important in gaining strength.

Weaknesses

The firm operates in close relationship with the franchisees and there may raise problems or complaints which may affect these operations. Mistakes done by any single franchisee may have major effects on the operations of the firm especially if customers develop negative perception of the firm due to poor services.

Opportunities

The company collects extensive information on the features of its products and services, and this can be in long-term improvement of both products and services. Moreover, the various systems that are used in determining satisfaction of customers and franchisee can be utilized in meeting the needs for higher quality services and managing any complaint from the customers.

Threats

The major threats that the company faces relates to increased competition from rivals and any slip would see it giving away the competitive advantages that it currently enjoys due to high demand.

The moment of truth for the environment of Gold Star is seen each moment the customer interacts or makes contact with the company. Normally, customers will carry out an evaluation of the products offered and make a comparison between what they expect and what they really get (Evans & Lindsay, 2008). The moment of truth for the firm is seen in the process of reservation and ordering and in provision of various dining services they can access.

The implications of segmentation strategy enable the company to serve the needs of different customers, both direct and indirect.  Direct customers consist of those who use the products and services offered by the company while the indirect includes those who rate the operations. The highest portion of the profits is obtained from the services and products offered to direct customers. The firm can therefore manage to adopt different strategies for different standards for all the segments of the customers in the basis of their specific needs.

 For the purpose of listening and learning from different segments of its customers, the focus of the firm should be to easily obtain relevant information by employ relevant techniques that will allow for feedback.  Utilizing technology will enable the firm to maintain interaction and contact with customers which it cannot have face-to-face communication (Evans & Lindsay, 2008). Using online platform can help in relaying information and receiving feedback regarding the needs of every segment.

 The designing of survey on customer satisfaction will involve questions that are simple and logic.  These questions would include the main elements of customer satisfaction and include transaction speed, responsiveness, service efficiency and availability and the extent to which their complaints were solved.

 

Evans, J. R., & Lindsay, W. M. (2008). Managing for quality and performance excellence. Cengage Learning. 116-147

 

 

572 Words  2 Pages

Human Resource

Introduction

Ayles Networks is a well-established Internet Technology networking company which has over 3000 employees from all over the Southwestern United States. As the Human Resource Director, I have been asked by the CEO to employee statistical techniques in gauging training, staffing, HR assessments, which the company currently uses.

Data Types

The data types which would be used are qualitative and quantitative research types, in order to evaluate the effectiveness of training, staffing, and HR assessments at the company. Surveys will be conducted, using questionnaires in order to come up with quantitative results. The questionnaires will consequently have two sections, one which will be for the managers, and the other one will be for the assistants (NARULA, 2015). The main reason for having two sub sections in the questionnaire is to provide two points of view from the two sectors.

When it comes to qualitative research, observations and interviews will be used. The main intention of this data type is to collect qualitative information on the three functions of human resource which are: training, performance appraisal and recruitment (Lange & Houran, 2015). The instruments will first and foremost be validated in order to ensure the quality of information is obtained.

Statistical Data Treatment

The following statistical tools will be employed in order to facilitate the interpretation and analysis of data.

Central Tendency Measures (Mode, Median and Mean)

This measures will consequently be used to determine the distinctive employees’ traits, and those who perform different functions of human resource (SamGnanakkan, 2010). In addition, they will also be used to designate them together with different profile variables which include gender, age, number of years in the company and position.

Variability Measures (Standard Deviation and Variance)

Variability measures are responsible for measuring the productivity distance level, with that of other variables of the respondents from the mean. Thus, they will used in order to measure if the performance of a specific employee is below, or within the average production level of the teams, or otherwise the unit where he or she belongs (NARULA, 2015).

T-Test

            This technique will used in order to determine if there is any significant difference in the subject scores before and even after the training program. Critical values will therefore be compared with computed t-values, at a very high level of significance which may reach up to 95%, in order to ensure if the hypothesis will be rejected or not. The effectiveness of the program would also be indicated trough large gain scores which is obtained by the difference concerning post-test and pre-test scores. When there are only two groups being compared, t-test of difference between means is usually applied (SamGnanakkan, 2010).

ANOVA

            ANOVA is also a test of difference. It is however applied, only if there more than two groups, which is, three groups being compared (Lange & Houran, 2015). In the current situation, ANOVA will be employed when comparing the levels of employees’ productivity as grouped according to the status of the employees, that is, full time, part time, and project based (NARULA, 2015).

Regression Analysis

This technique will be employed in order to determine how effective one variable can be used in order to predict another variable. A good example is the expenses of training and the level of employees’ productivity.

Other Statistical Techniques

            There are very many statistical techniques which can be used to in assessing training, staffing and HR assessments in the company. These techniques may therefore include the following; regression analysis, nominal group technique, scenario forecasting, trend analysis and ratio analysis (Lange & Houran, 2015).

            Trend analysis is a method which is used in forecasting training, staffing, and HR assessment requirements on the basis of the organizational index, and it is commonly used by most companies in forecasting. Trend analysis consequently forecasts, the future, through using the past experiences, thus making it easier for the assessment to be done in a critical way (NARULA, 2015).

            Scenario forecasting is a technique which is consequently used in the exploration of the possibility of any future developments and the changes, hence identifying the interaction of indefinite future events and trends. In this case, it can be used to assess the possibility of any future changes and developments in the workforce (SamGnanakkan, 2010).

            Nominal group is a technique which involves decision making, and it is consequently used for groups of different sizes. This method is useful particularly for groups which want to make decisions quickly, either through voting, or want the opinion of everyone to be used as traditional voting. This is a method which consequently allows the assessment to be successful, since it enables the Human Resource department to use the opinions of both the managers and the workforce, in coming up with ideas on how to improve their functions (NARULA, 2015).

            On the other hand, ratio analysis is a method which makes forecasts based on ratios between underlying factors and the number of employees required (SamGnanakkan, 2010). This method consequently enables the human resource department to be able to clearly come with training techniques, based on the number of the employees, thus effectively executing the training according to its plans (Lange & Houran, 2015).

Conclusion

            Ayles Networks can now be able to effectively use this techniques, as a means of improving its performance. As the HR director, I strongly that this techniques will not only enable the company to forge forward, but they will also help in improving the performance of the company, through making the workflow to be systematic. This will consequently result in high productivity and increased employee work output.

Reference

NARULA, S. (2015). HR ANALYTICS: ITS USE, TECHNIQUES AND IMPACT. CLEAR International Journal Of Research In Commerce & Management, 6(8), 47-52.

SamGnanakkan, S. (2010). Mediating Role of Organizational Commitment on HR Practices and Turnover Intention among ICT Professionals. Journal Of Management Research (09725814), 10(1), 39-61.

Lange, R., & Houran, J. (2015). "Quality of Measurement": The Implicit Legal Cornerstone of HR Assessments. Employee Relations Law Journal, 40(4), 50-64.

           

           

 

997 Words  3 Pages

Firm analysis of NETFLIX

In the Entertainment and Media industry in which Netflix operates, there have been various developments in market demand and supply driven by a quick transition from the conventional distribution pattern to direct-to-consumer in the market. In particular, the digital technology expansion whose manifestation is seen through connectivity of wireless and fixed network has enhanced the growth in quantity of connected devices and newer routes to the user (Deloitte, 2015).  This has changed the structure of the industry, so that there are new ways for content production, distribution and monetization across this landscape. This has provided consumers with a lot of content to choose from and which are accessible at any moment or mix and by use of various delivery options.  This has seen an increase in demand for the various products provided by the digital companies. In fact, the share of internet traffic for Netflix has greatly increased across North America to account for about 34 percent of the flow of the said data during peak times since 2014 (Deloitte, 2015).

The number of streaming subscribers for Netflix has shown a constant increase over the years and has steadily moved towards almost 100 million mark, as per the first quarter of 2017 (Team, 2017).  The figures in the global market have been increasing over the same period due to the company’s expansion strategy.  As the subscription numbers increased, the company’s attained all time high annual revenue in 2016, which amounted to $ 8.83 billion (Netflix, Inc., 2016). This shows over tenfold rise in revenue income since 2005 fiscal year. Even though this was a steady revenue increment, the overall net income underwent through a course that is more turbulent. The company’s worth had tumbled in 2011 after the intention to split the firm was announced, and the profits also declined. In 2012, a decrease in net income was experienced from over 13 times, but the income resurged to reach the highest pick in 2014.  The firm’s prices for services have been raising in recent times, with the HD streams moving from 8.99 to 9.99 dollars each month for new subscribers.  In 2014, the two-stream plan was increased from 7.99 to 8.99 American dollars. Most of the company’s customers are located in United States, Brazil, Canada and Mexico and the number is expected to increase especially in the emerging markets like Brazil (Netflix, Inc., 2016).

 

 

Year

2012

2013

2014

2015

2016

Revenue B U.S $

3.61

4.37

5.5

6.78

8.83

 

 

 

 

 

 

 

Dec -15

Sep- 16

Dec- 16

 

 

Subscribers (million)

44.738

47.497

49.431

 

 

 

 

 

 

 

 

 

 In addition, Netflix’s revenue has shown an upward trend over the past five years driven by growth in the domestic DVD sales and international streaming. The data shows that the firm attained the highest revenue and profits in the years 2015 and 2016. This can be attributed to the digital technology growth and its adoption by the firm which has enabled it to reach international streaming market and hence, facilitated this growth.  It indicates a consistent growth in the Internet TV network around the globe which has enabled consumers across the globe can access movies and TV shows at the same time without waiting (Team, 2017). The internet has put power in the hands of consumer so that they can watch anywhere with any device. The company has managed to weather effects of adverse competition from other major providers of substitute services such as Amazon and Hulu that also provide online TV shows and movie streaming (Netflix, Inc., 2016).  Moreover, other networks like Fox and CBS provide video streaming on their websites and apps which intensifies competition.

 The price elasticity of demand for Netflix was influenced by the share of budget and the availability of substitutes. Where a consumer spends a big portion of their income on a given product, demand for such product is elastic .Moreover, where there are available substitute for the product, it means that demand is quite elastic as the customers have other available competing products. The more the number of close substitutes the high the product’s elasticity (McEachern, 2013).  When subscribers found out that Netflix could be divided into two, they perceived that they would have to pay more for the program’s prices. After customers learnt of competing forms such as Qwisker, they become furious since Netflix price elasticity had went up. They were not willing to pay the hiked amount which could constrain their budgets. Customers are also likely to ignore buying the product since they can do without it. However, the possibility of the consumer being able to watch programming on two devices simultaneously also increased the price elasticity of demand , and the prices were still lower than substitute products from competitors.

 This price elasticity of demand enables Netflix to provide customers with mass market and content. The availability of substitutes has provided a fragmented market to the customers who find that they pay more due to this.  The company is able to force customers or subscribers to weigh the value proposition of subscription to the greater value of accessing larger content. However, the company increased its prices by only a dollar, given that it was aware of available substitutes. The availability of a variety of content offsets the increment. The price elasticity of demand can be illustrated by the increased number of subscribers for this program.

Reference

McEachern, W. A. (2013). Economics: A contemporary introduction. Cengage Learning. 96-97

 

Deloitte, (2015).Digital Media: Rise of On-demand Content. Retrieved from: https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-telecommunications/in-tmt-rise-of-on-demand-content.pdf

 

 

Netflix, Inc., (2016). FORM 10-K.Retreived from: http://files.shareholder.com/downloads/NFLX/4554610180x0x938338/FB0485BA-48EF-4457-ABED-CF26A5B21523/10K_Final.PDF

 

Team, T., (2017). Netflix Subscriber Growth Continues Unabated, As Margins Improve. Retrieved from: https://www.forbes.com/sites/greatspeculations/2017/01/19/netflix-subscriber-growth-continues-unabated-as-margins-improve/#63627aab52dd

 

 

955 Words  3 Pages

MGMT term paper

Amazon.com was founded in 1994 by Jeff Bezos where it operated as an online bookstore, and its later diversification included selling Blu-rays, CDs, DVDs and streaming or downloading videos. It currently offers an online platform for selling different types of products in the global market. The company operates retail websites separately for different countries, and provides international shipping services to other countries for its products. This analysis is aimed at providing past and present organizational values and capability that defines the company, the financial and market performance and the future prospects (Amazon.com, 2016).  This represents the identity if the firm, its performance and foreseeable future.

Past

  1. Persona

Amazon is a multinational e-commerce company and a pioneer online retail platform.  It has global presence and is able to operate globally using localized portals, logistics platform and a globalized delivery.  The company’s values are founded on attracting and retaining the trust of the customer .The long-terms values are accorded priority and these are not undermined by the future values. The leadership of the firm must seek diverse opinions and work to remove any long time misunderstanding. Observing standard by raising the bar which drives teams to deliver high quality services that are customer oriented. The company has always aimed at leveraging technology to gain competitive advantage and leveraging synergies that are achieved between external drivers and internal resources. This gives rise to concentric diversification since capabilities from leverage technologies provide success for business and allows for a cost leadership in the market. Faced with stiff competition, Amazon aimed to always provide high quality services through value maximization. The company’s direction is shaped by a sustainable growth in dynamic market.

  1. Performance

The performance outcomes metrics for Amazon have been used to show sales progress, profitability and customer satisfaction. Gross margin and sales have been the past key indicators of performance, with amount of money made or revenue being the company‘s bottom line. Paying attention to the difference between cost of sales and revenue has been important to monitor margin. In 2015, the company had $ 107,006 Million in revenue while the gross margin was 33 percent for the same year.  The revenue for 2016 was $ 135,987 which aligned with the desired need for continuous growth in the firm. The growth rate for subscribers has been important as it shows the company’s online audience which depicts growth trends in the firm. The legacy metrics define social integrity and leadership across the globe. The company had at least 51 percent growth rate of new subscribers which brought the number to a total of 46 million (Morningstar, n.d). For 2016, the number of subscribers had reached 66 millions, which is a significant increment.

  • Puzzle

The biggest dilemma facing the company has been how to adjust to enormous growth in the global market in line with the local market. The other issue has been how to adapt to the cultures of the international markets that are quite different from home. These challenges present even a strategic issue of whether to extend expansion of master the new markets first. This also may affect the firm’s concentric strategy, customer satisfaction, rate of subscription and future growth. 

 

References

Morningstar, (n.d).Amazon.com Inc. Financials .Retrieved from: http://financials.morningstar.com/ratios/r.html?t=AMZN

Amazon.com,(2016).Annual Report

 

 

 

 

 

 

 

                                               Appendix

 

     Strategic Scaffolding Matrix

   
       
 

Past (2015)

Present (2017)

future( 2020)

 

 

 

 

Persona

Slogan

Slogan

Slogan

 

online retail leader

online retail leader

online retail leader

 

 

 

 

Performance

Likeness

Likeness

Likeness

 

Attracting and Retaining customers

Customer  Satisfaction

Customer value

 

 

 

 

 

Revenue and sales

Profit Margin

Customer subscription

       
       
       

Puzzle

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Y -  concentric strategy

Y -subscription rate

Y - future growth

 

X - International growth

X -International growth

X - international growth

 

620 Words  2 Pages

Lion Air

Summary

Lion Air is an Indonesian airline that has been in operation since November 1999 up to date and which operates more than 100 aircraft. Lion Air is headquartered in Lion Air Tower in Central Jakarta. Lion Air is the cheapest in terms of offering air carrier services. Using its motor which basically encourages that everyone can be able to fly is an important factor at this company. Lion Air has had an international recognition with the public and has been flying to over 183 routes which are generally divided into domestic routes and all spread to almost every corner of the Indonesian land (Castle, 2011). The number of services will definitely continue to grow mainly because the aviation demand market in Indonesia is growing on a daily basis.

Introduction

Poor management at Lion Air has brought down the reputation and service delivery of the airline almost in every part of the world. Lion Air has had several malfunctions which have brought down the company reputation and eventually forced out in some markets especially in the European Union where it has been banned from operating business.

A flight from the Juanda International airport, Surabaya was recently forced to land just after taking off in December 2015. Reports indicate that the flight had experienced a cabin pressure which resulted in a panic among the passengers. The plane was officially on its way to Jakarta and had at least 95 passengers on board. There has been a series of other cases where the airline has been affected by a series of other major issues including an oil spillage at Juanda Airport located in Surabaya. In March, the airline's flight from Jakarta was immediately diverted to Johor Baru from Singapore after is officially lacked the landing rights. The aircraft was reported to have been in the air that same evening back to Singapore but this never happened due to the delays which affected the passengers (Weinmann, 2016). The company management has been summoned a number of times by the ministry of transport to explain where the issue is regarding the poor services being offered. For a while, the company has been making headlines with almost the same wrong reasons which have been affecting the airline for some time now. Passengers have been identified complaining of the service delivery as offered by the Lion Air company.

These challenges have been among the contributing factors of the suspension the company is facing at the moment. Frequent delays have been on the rise with passengers being left stranded at the airports waiting to be further directed by the airline management. Several accidents have been experienced in the year 2013 where one of the planes missed the runway in Bali and immediately landed into the sea where several passengers were injured seriously. Lion Air has been disadvantaged this season after the government promised to withdraw the operation license for the airline (Weinmann, 2016). Poor communication among the cockpit management has caused certain flights to be canceled or to be delayed. The leadership, communication, and the decision making have been a contributing factor to the downfall of Lion Air. This is in accordance with a government investigation office which stated that the crash experienced in 2013 was as a result of the poor communication in the management part of Lion Air. Lion Air has been in the spotlight mainly because of the airline delays which have brought down the service delivery and critics from all over the world. Technical problems are the main issue according to the airline management where there have been delays in terms of the delivery of the tires to be used by the planes. Another flight JT0693 which was only 15 minutes into the air was forced to go back after there were technical errors from the management (Weinmann, 2016). The aircraft was reported to have some complications with the air conditioning system.

Operations could resume to normal at Lion Air if only the management could be changed to a more serious panel of managers. The company has experienced a lot of mismanagement activities such as the use of worn out tires on the planes. There have been a number of cases where the airline planes have been forced to return to the ground just after taking off. Poor management has been the main problem at Lion Air. Changing the management will encourage timely accomplishment of the required products or equipment. Waiting until the last minutes in order to place orders for the planes equipment’s is inappropriate and qualities of poor management (Weinmann, 2016). In the event where the planes from Lion Air were forced to make a U-turn just after departure since the management realized that the plane could crash on arrival. Having the spare parts ready to assemble the aircraft when required and at any instance and timely is recommended for this case. The management should improve its operations by doing a very intensive inventory exercise after every six months to ensure that the books and operations status are up to book. Use of qualified personnel to control the Airline is also an effective strategy to allow for the improvement of this company.

Applying the use of combined method of management can help improve the company operations status. Passengers boarding a flight have been noted to have the shortest or least patience in waiting for a delayed flight (Jones & Robinson, 2012). Certain airlines have the tendency of delaying the flights with no major reason. This does not mean that an airline has the authority to delay any flights at all. Lion Air has been experiencing flight delays now and then and this can discourage the general public from ever wanting to board this airline. The reduction or having the name tarnished as offering poor services will generally reduce the marketability of the airline and this decreases the profits of the company in general. The airline can apply the use of digitalized programs in the control section. The accurate dedicated position of information while on the ground is very vital as this allows for the operations to be smooth and running. Precisely arrive and the location information should be communicated on time to allow the airline, air traffic control and any other type of control to take place. Airlines should always have an alternative to solving the issue of delays (Castle, 2011). The airline should create an application management system that will always blink or signal whenever the airline time to depart is close. The use of effective systems which can help influence the keeping of time for the airline is an important investment since the number of passengers or clients for the airline can be in large numbers. The popularity of an airline depends on the capability of the organization to perform its operations effectively and timely. Customer service is the best strategy to attract as many clients to Lion Air as possible.

Operations management is very important in an organization since these acts as the backbone of the organization (Weinmann, 2016). Operations management can be achieved at the organization level or the operational level. The importance of having an operation management strategy in place is to improve the quality of productivity. The productivity of such an organization is measured in terms of the input to the output. Both the input and the output can be attributed to the relationship between the managers and the employees. At some point, the company has had a series of strikes as the employee's fight for their right to salary. Such cases have been experienced in many parts of the world where Lion Air is involved. Poor services in many cases damage the level of output as both the employees and the clients will be less interested and happy to work with Lion Air. At the operations level, it is important to regard the fact that the level of output expected from the workers is dependent on the level of approach the management takes to dictate duties (Castle, 2011). The quality movement which focuses on improving the state of the processes assists in the quality control of the organization. Operations management basically defines the designs, control, and operations of the process of transformation through the conversion of the services to realize the goals more effectively and timely. Lion Air can use the vision-focused strategic management in the realization of the organizational goals. Use of updated programs and also equipment is also very vital in ensuring that the operations in the organization run smoothly at a particular time.

Report

Operations management strategies at Lion Air failed due to the poor implementation of the policies required to push the company to greater heights as according to its standards. The use of poor maintained equipment’s in its operations forced Lion Air into many inconveniences such as the diversion of its flights. Poor customer services are also a major hindrance to the success of the Lion Air (Jones & Robinson, 2012). Being a private limited company, Lion Air is faced by many challenges mostly attributed to the fact that the poor management in terms of saving the costs. Several delays in various airports and finally the lack of communication to the airport's control center on the situation of their flights caused mayhem among the passengers.

Changing the whole management team can be a solution at Lion Air. This is since the current panel has proved beyond doubt of their lack of integrity and panning. Management should always be in knowledge of whatever is happening around them and what impacts a certain event can cause. The delay in the ordering of the tires and also the poor implementation of the policies which can help in the growth of the business which is a step Lion Air missed. Using the latest systems to update the passengers can be a solution at Lion Air. The delays experienced at Lion Air are as a result of poor quality of the schedules. Having a complete schedule that is able to update the passengers and the airport control rooms of the expected next departure can help reduce the delays. Other major companies have implemented this strategy where a signal is sent to the control rooms before the flight departures from the airports in various airports.

Operations management, especially at the organization level, is very vital since it allows for the earlier planning of the operations. At the organization level, the management should always be optimistic about the future. Operations management is important at this stage since it allows for earlier planning of the flights, therefore, preventing the delays experienced by Lion Air from time to time (Castle, 2011). At the operations level, operations management is important since the rate of poor implementations at Lion Air is excessively disturbing. Operations management at this stage is important in order to have a reputable customer service. Customer satisfaction should be the main concern at Lion Air since the higher the ratings the higher the profits expected and finally a success at Lion Air.

Conclusion

Lion Air is a company that can perform better if there was proper control from the management to the general staff. Delays in airports have been reported from various major airlines due to technical hitches or weather but they still make up for the time lost. Lion Air should embrace the same and take advantage of its customer preference since it charges low rates. Maintaining the conditions of the airline should be a priority as this is the main income generating channel.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Castle, J. W. (2011). Indonesian business: The year in review 2010. Place of publication not identified: Equinox Publishing (

Jones, P., & Robinson, P. (2012). Operations management. Oxford: Oxford University Press.

  Oxford Business Group. (2014). The report: Malaysia 2014.

Weinmann, M. (2016). Understanding the roles of Operations Management and the importance of managing quality. Implement Strategic Quality Change and evaluating its wider implications

1984 Words  7 Pages

Business Proposal

Executive Summary

The purpose of this plan is to come up with strategic plans on how to better the social media communication of Papaco Company. This is a move which is aimed at improving the customer service at the company, thus bettering the services offered to the employees. Moreover, this plan seeks to ensure that the confidentiality of Papaco Company is not breached through the social media, thus allowing the company to be able to undertake its tasks at very low risks. The plan will provide different strategies which will consequently allow the company to be able to benefit fully from the social media, and avoid experiencing any forms of social media risks. This proposal is therefore going to come up with different approaches which aim at bettering the communication of the company to its customers through the use of the social media.

Papaco has been able to provide the best foods in town, through its unique cuisines, which have been really been enjoyed the company’s customers. The company has come up with new approaches and strategies in order to engage its customers, thus getting a feedback which will help the company in being able to look for possible ways of bettering the customer service, and the types of foods being offered. However, in order for the company to be successful in this, an internal communication plan is a very vital tool which should be employed.

Internal Communication Plan

An internal communication plan is essential, simply because it will allow the company in being able to advertise new foods on the menu, engaging its customers, and getting a feedback on the types of services best offered by the company, and the types of services which should be improved (Barton, 2014). The strategy which will be used in developing the organizations plan will be to ensure free flow of information to the social media sites, without the breach of the company’s confidentiality.

The company will therefore come up with different ideas on the proper ways of communicating through the social media. This will really help in calculating the cost of implementing the given communicational strategies (Barton, 2014). In addition, each and every strategy will be tested before implementation, in order to enable us Papaco to be able to offer high quality services through the use of the social media. The company will consequently come up with ways of improving the mode of communication between the employees. This modes may include the intranet, emails, meetings, trainings, newsletters and phone calls (Ruck, 2015). Improving this modes of communication will help in easing the follow of communication within the organization, hence allowing the management of the company to be able to easily communicate to the employees.

The main goals of the organization will be to effectively communicate to the employees, thus ensuring that the employees get to understand what it is required of them by the organization (Barton, 2014). In addition, to provide the customers with a very good social media support system, which will consequently help in attracting new customers to the company. This process should consequently take two weeks in order to implemented, simply because different strategies will need to be tested before being implemented (Ruck, 2015).

However, in order for this plan to be effective, the company will need to train the employees on how to effectively use the social media. This will consequently help in reducing the spread of the company’s confidential information to the customers (Barton, 2014). The human resource department will provide the basic rules of communicating through the use of the social media, and this will consequently allow the employees in being able to understand their limits particularly when communicating with the customers (Ruck, 2015). The internal communication will consequently seek to improve the flow of information within the organization, hence improving the flow of information to the customers. This consequently means that the internal communication plan seeks to improve external communication plan, through teaching and providing the social media team with ways of effectively communicating with the employees.

Reference

Barton, P. (2014). Maximizing Internal Communication: Strategies to Turn Heads, Win Hearts, Engage Employees and Get Results. Cork: BookBaby.

In Ruck, K. (2015). Exploring internal communication: Towards informed employee voice.

705 Words  2 Pages

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