Understanding and Learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.
FedEx is an international company that provides shipping by a series of air and land and logistics and business consulting services, not only for its core businesses with customers but also for the main business objectives, with speed in their communication with the constituencies And provide dependence. In FedEx, employees work in 200 countries for 7 days a week, 24 hours a day. The corporate communication function should act as a broader scenario with speed, high impact, and precision. Also learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.
Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.
According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success. These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different.
Since the company has created cross-functional groups to solve these strategies, which are at the center of FedEx business. Margaritis Corporate Communications specifies people to have each cross-functional groups dedicated to the “well-known market” strategy. In this way, the perspective of corporate communications on issues such as message about launching a new product, sending news about mergers and acquisitions, pitching the media, and helping in the management of government relations in highly regulated environments, where FedEx operates , Voices are raised with concerns about finance, operations, information systems, and long-term strategic goals.
By dividing corporate communications employees into “go-to-market” groups, customer-facing tasks such as sales, customer care and information technology, Margaritis has gained significant side-effects, they develop a multi-talented group of communication professionals Strategic-level issues of reduction in functional areas such as marketing, finance, sales, technology, and tactics Can help solve problems. Members of his team do not just fill a narrow space, such as writing newsletters for pilots or making speeches for senior executives. Instead, their employees can move through projects to build a comprehensive knowledge of business and can contribute to value-added advocates in those decisions.
The senior management at FedEx realizes that when the company offers new services, offering new services, and making a commitment in the market, the company’s brand is online with several constituencies – opinion leaders, media, Investors, employees, customers as well. For the strategy of working, the company’s culture has to be migrated to a new strategic direction; Employee behavior, motivation, and emotions should be changed accordingly.
Using an example of the company need to make a purchase for a new customer initiative, Margaritas explained the possible partnership between corporate communications and the company’s major strategic decisions:
When companies are rapidly considering changes to their business strategies or business models, then corporate communications groups should play a vital role in the planning and execution process. To change quickly, the company needs to get this news primarily in an attractive, versatile manner in important constituencies, and they have to buy. For example, the company makes a new pledge to the customers, the organization should have a program that connects employees with this new purpose.
A company wants that loyalty of employees to be combined with new value propositions, and translate the new pledge into shareholder value. Employees need to reach new strategies. If not, the company’s brand and reputation may be suffering, corporate communications, one of the things is related to research between employee behavior, and tasks with customer service, and therefore performance interval with active communication programs. Corporate communication has to play a leadership role in a changing environment.
FedEx takes a holistic view of corporate communications in all channels and audiences: by planning and executing a new strategy to measure attempts to add behavior and approach to business and market behavior related to marketplace and market behavior.
Importance of Recruitment; Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. The Concept of the study Explains – the Purpose and Importance of Recruitment: Need, Purpose, Importance, and Strategy. Recruitment is understanding as to the process of searching for and obtaining applicants for the jobs, from among whom the right people can select. Also learn, What is the Purpose and Importance of Recruitment?
Understanding and Learn, What is the Purpose and Importance of Recruitment? with Need!
Importance of a strong recruitment process: Successful recruitment is a direct reflection of the legitimacy and professionalism of your business. Employing the right people for your business is the most important part of your organization. It is necessary to have a good recruitment process to attract the right kind of staff for the needs of your business. Your recruitment process must be cost-effective as well as time-consuming. Recruitment and training can be expensive and time-consuming, so when you are recruiting, make sure that you are making the right choice.
A good recruitment process can reduce the time involved in searching, interviewing, recruiting, and training. It can streamline these procedures and make your search more efficient for viable candidates. Also, Creating a positive image for your customers, peers, and competitors is very important. New employees must list the skills needed to fulfill their duties. To get better and successful results in your recruitment process, promote specific criteria relevant to the job.
Always evaluate the skill of your candidate for the position of recruitment for knowledge, skill, and ability “KSA”, this is a great assessment tool for recruiting the right candidate for your business. There is no guarantee that your selection will be correct, but you can reduce your risks and maximize your ability to rent the right candidate. If you have a successful recruitment process then you can find a good, qualified, reliable staff for your company. Be sure to follow an organized recruitment path and you will find candidates who prove to be a great asset to your business.
Need for Recruitment:
Every Company in the world knows the importance of the recruitment step in increasing. Also, The performance of the company and increasing the productivity of the products. In this part of the project we will mention some important point about the importance of the recruitment step in any organization:
It helps the organization by finding the need for requirements by job analysis activities and personnel planning.
To collect many job candidates with less cost.
It helps to organize applications by dividing them by underqualified or overqualified, to increase the possibility of increasing and choosing the successful person to the right place.
Employing new and better-qualified staff often the only effective long-term strategy for improving operational performance.
Also, the Capabilities and commitment of employees ensure an organization’s success.
Raise organizational and individual value in the short term and long term.
Purpose of Recruitment:
Determine current and future needs: To determine the present and future needs of the organization, with the combination of their plan and job analysis activities. Also, This is one of the most important objectives of recruitment.
Increase in the job pool: To increase the pool of job candidates at the minimum post cost.
Assistance in increasing success rate: To help increase the success rate of the selection process by reducing the visible number of under-qualified or exaggerated job applicants.
Help reduce the probability: To help reduce the likelihood of job applicants, once recruited and selected, only after a short period they can cure the organization.
Meet the organization’s social and legal obligation: it should fulfill the organization’s social and legal liability towards the combination of its employees
Start identifying job applicants: Identifying job applicants and preparing for potential job applicants will be suitable candidates.
Increase effectiveness: To increase organizational and personal effectiveness in the short-term and long-term.
Evaluate effectiveness: To evaluate the effectiveness of various recruitment techniques, all types of jobs are the source for the applicants. Also, This is the ultimate purpose of recruitment.
The Purpose and Importance of Recruitment:
Following a few points is explaining:
Determine the present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
Also, Increase the pool of job candidates at minimum cost.
Help increase the success rate of the selection process by reducing the number of visibly underqualified or overqualified job applicants.
Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period.
Meet the organization’s legal and social obligations regarding the composition of its workforce.
Begin identifying and preparing potential job applicants who will be appropriate candidates.
Also, Increase organizational and individual effectiveness in the short term and long term.
Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.
What is the purpose of the Recruitment Strategy?
What is the issue of any strategy? A strategy defines big and important questions. Who, what, when, and why Who is doing when? And why are they doing this? Your recruitment strategy is hoped that the skilled use of company resources will be prepared to give your business the best talent to get a job. Also, Your strategy can generate productive benefits in your market!
So, what’s the purpose? A recruitment strategy creates activation and clarity of purpose in the process of attracting and selecting talent for your business and aligns business goals with talent acquisition goals. Also, An employee strategy starts with understanding and understanding the value of your company to best understand and understand the behavior of those employees that you want to attract.
A recruitment strategy clarifies the purpose or vision of the company for the future. A well-executed recruitment strategy will align employees with specific behaviors that are encouraged in the company.
More to know…!
A different purpose of deciding a recruitment strategy is how talent will be identified and business will be attracted, how the employer brand will be marketed for talent, and ultimately how it will be evaluated for employment for candidates. Attracting talent depends on your recruitment brand. How will you present your company and its brand authentically and describe it? Where do you propagate your company? Also, This is where good job descriptions, scorecards, job postings, recruitment techniques, and recruitment partners come into play.
Today, no one can be the best in their entire strategy. Evaluating talent is also a big part of your recruitment strategy. Do you want your manager to talk with recruitment about how they get into the business and sell more about why your company is great? Or will you define the questions and role of your managers because you make the recruitment team? Always define team roles in evaluating talent. Also, Determine evaluation procedures and standards in continuous ways to attract and evaluate talent!
Understanding and Learn, What is the Recruitment Process?
It is very important for an employer to design a recruitment process for hiring the best professionals within a given time frame. The Recruitment Process is explained in the few steps involved as follows: Recruitment Planning, Strategy Development, Searching, Screening, and Evaluation & Control. Though the process of recruitment may differ from organization to organization, it has more or less similar steps. Also learn, What is the Recruitment Process?
What is recruitment? In Human Resource Management, “recruitment” is the process of finding and renting the best and most qualified candidate for opening a job at a time and cost-effectively. It can also be defined as “the process of looking for potential employees and encouraging and encouraging them to apply for jobs in an organization”. This is a complete process, with a full life cycle, that starts with the identification of the company’s needs in relation to the job, and the organization ends with the introduction of the employee.
Recruitment refers to the process of identifying and attracting job seekers so as to build a pool of qualified job applicants.
The recruitment process comprises a few interrelated stages, viz,
Planning.
Strategy development.
Searching.
Screening.
Evaluation and control.
The ideal recruitment programme is the one that attracts a relatively larger number of qualified applicants who will survive the screening process and accept positions with the organization when offered. Also, Recruitment programmes can miss the ideal in many ways i.e. by failing to attract an adequate applicant pool, by under/overselling the organization or by inadequate screening applicants before they enter the selection process.
Thus, to approach the ideal, individuals responsible for the recruitment process must know how many and what types of employees are needed, where and how to look for the individuals with the appropriate qualifications and interests, what inducement to use for various types of applicants groups, how to distinguish applicants who are qualifying from those who have a reasonable chance of success and how to evaluate their work.
1. Recruitment Planning:
The first step involved in the recruitment process is planning. Here, planning involves to draft a comprehensive job specification for the vacant position, outlining its major and minor responsibilities; the skills, experience, and qualifications needed; grade and level of pay; starting date; whether temporary or permanent; and mention of special conditions, if any, attached to the job to be filled ”
The first stage in the recruitment process is planning. Planning involves the translation of likely job vacancies and information about the nature of these jobs into set the of objectives or targets that specify the (1) Numbers, and (2) Types of applicants to be contacted.
Numbers of contact: Organization, nearly always, plan to attract more applicants than they will hire. Some of those contacted will uninterest, unqualified or both. Each time a recruitment Programme is contemplated, one task is to estimate the number of applicants necessary to fill all vacancies with the qualified people.
Types of contacts: It is basically concerned with the types of people to information about job openings. As well as, The type of people depends on the tasks and responsibilities involving and the qualifications and experience expected. These details are available through job the description and job specification.
2. Strategy Development:
When it is estimated that what types of recruitment and how many are required then one has concentrated on (1) Make or Buy employees, (2) Technological sophistication of recruitment and selection devices, (3) Geographical distribution of labour markets comprising job seekers, (4) Sources of recruitment, (5) Sequencing the activities in the recruitment process.
Once it is known how many with what qualifications of candidates are required, the next step involved in this regard is to devise a suitable strategy for recruiting the candidates in the organization. The strategic considerations to be considered may include issues like whether to prepare the required candidates themselves or hire it from outside, what type of recruitment method to be used, what geographical area be considered for searching the candidates, which source of recruitment to be practiced, and what sequence of activities to be followed in recruiting candidates in the organisation.
‘Make’ or ‘Buy’: Organisation must decide whether to hire less skilled employees and invest in training and education programmes, or they can hire skilled labor and professional. Essentially, this is the ‘make’ or ‘buy’ decision. Organizations, which hire skilled and professionals shall have to pay more for these employees.
Technological Sophistication: The second decision in strategy development relates to the methods used in recruitment and selection. This decision is mainly influenced by the available technology. The advent of computers has made it possible for employers to scan national and international applicant qualification. Although impersonal, computers have given employers and job seekers a wider scope of options in the initial screening stage.
Where to look: In order to reduce the costs, organizations look into labor markets most likely to offer the required job seekers. Generally, companies look into the national market for managerial and professional employees, regional or local markets for technical employees and local markets for the clerical and blue-collar employees.
When to look: An effective recruiting strategy must determine when to look-decide on the timings of events besides knowing where and how to look for job applicants.
3. Searching:
Source Activation: Typically, sources and search methods are activating by the issuance of an employee requisition. This means that no actual recruiting takes place until lone managers have verified that vacancy does exist or will exist. Also, If the organization has planned well and done a good job of developing its sources and search methods, activation soon results in a flood of applications and/or resumes. The application received must screen. Those who pass have to contact and invited for the interview. Unsuccessful applicants must be sent the letter of regret.
Selling: A second issue to address in the searching process concerns communications. Here, the organization walks the tightrope. On one hand, they want to do whatever they can to attract desirable applicants. On the other hand, they must resist the temptation of overselling their virtues. In selling the organization, both the message and the media deserve attention. As well as, Message refers to the employment advertisement. With regards to media, it may state that the effectiveness of any recruiting message depends on the media. Media are several-some have low credibility, while others enjoy high credibility. Selection of medium or media needs to do with a lot of care.
4. Screening:
Screening of applicants can regard as an integral part of the recruiting process, though many view it as the first step in the selection process. Even the definition of recruitment, we quoted at the beginning of this chapter, excludes screening from its scope. However, we have included screening in recruitment for valid reasons. The selection process will begin after the applications have been scrutinizing and short-listing.
The hiring of professors in a university is a typical situation. Application receiving in response to advertisements is screened and only eligible applicants are called for an interview. Also, A selection committee comprising the Vice-chancellor, Registrar, and subject experts conducts the interview. Here, the recruitment process extends up to screening the applications. The selection process commences only later.
Though some view screening as the starting point of selection, we have considered it as an integral part of recruitment. The reason being the selection process starts only after the applications have been screened and shortlisted. Let it be exemplified with an example.
In the Universities, applications are invited for filling the post of Professors. Applications received in response to the invitation, i.e., advertisement are screened and shortlisted on the basis of eligibility and suitability. Then, only the screened applicants are invited for a seminar presentation and personal interview. The selection process starts from here, i.e., seminar presentation or interview.
Job specification is invaluable in screening. Applications are screened against the qualification, knowledge, skills, abilities, interest, and experience mentioned in the job specification. Those who do not qualify are straightway eliminated from the selection process.
The techniques used for screening candidates vary depending on the source of supply and method used for recruiting. Preliminary applications, de-selection tests, and screening interviews are common techniques used for screening the candidates.
Purpose of screening:
The purpose of screening is to remove from the recruitment process, at an early stage, those applicants who are visibly unqualified for the job. Effective screening can save a great deal of time and money. Care must exercise, however, to assure that potentially good employees are not rejecting without justification.
Also, in screening, clear job specifications are invaluable. It is both good practice and a legal necessity that applicant’s qualification is judged on the basis of their knowledge, skills, abilities, and interest required to do the job.
The techniques used to screen applicants vary depending on the candidate sources and recruiting methods used. Interview and application blanks may use to screen walk-ins. Campus recruiters and agency representatives use interviews and resumes. Reference checks are also useful in screening.
5. Evaluation and Control:
Evaluation and control are necessary as considerable costs are incurred in the recruitment process. The costs generally incurred are: –
Salaries for recruiters.
Management and professional time spent on preparing job description, job specifications, advertisements, agency liaison and so forth.
The cost of advertisements or other recruitment methods, that is agency fees.
Recruitment overheads and administrative expenses.
Costs of overtime and outsourcing while the vacancies remain unfilled.
Cost of recruiting unsuitable candidates for the selection process.
Evaluation of recruitment process:
The recruitment has the objective of searching for and obtaining applications for job seekers in sufficient number and quality. Keeping this objective in the mind, the evaluation might include:
The return rate of application sent out.
A number of suitable candidates for selection.
Retention and performance of the candidates selected.
Cost of the recruitment process.
Time lapsed data.
Comments on the image projected.
In view of above, it is necessary for a prudent employer to try to answer certain questions like whether the recruitment methods are appropriate and valid? And whether the recruitment process followed in the organization is effective at all or not? In case the answers to these questions are in negative, the appropriate control measures need to be evolved and exercised to tide over the situation.
However, such an exercise seems to be only rarely carried out in practice by the organization’s employers. Having discussed the recruitment process, it will be now relevant to have an idea about recruitment practices in India. The following section delineates the same.
Learn and Study, How to Integrating Business Strategy with Human Resource Strategy?
Strategy – is a plan or pattern that integrates an organization‘s major goals, policies, and action into a cohesive whole. Integrating Business Strategy with HR Strategy! PDF, PDF Reader, and Free Download. By drawing from strategic management literature, Bhatia (2007) looks at strategy in terms of a statement of the direction in which an organization wants to go and what it wants to become. Also Learned, Why Change to HRM? How to Integrating Business Strategy with Human Resource Strategy?
However, human resources must shape this direction. Therefore, as organizations become strategic, the same strategic decisions on managing people become necessary. Strategic decisions are decisions that determine the overall direction of the organization. Fombrun et al. (1984) regard strategy as a process through which the basic mission and objectives of the organization are set, and the process through which the organization uses its resources to achieve its objectives. Other scholars relate the strategy to a competitive advantage.
For example, Miller (1989) defines strategy as encompassing those decisions and actions that concern the management of employees at all levels in the business and that are directed towards creating and sustaining a competitive advantage. Human strategies like production, financial, marketing and others should be integrated with business strategy in order to establish operational linkages. Although strategic integration between business strategy and human resource strategy is desirable, it has not been an easy task.
Indeed, American and British firms have experienced disjointed and at many times side-lined human resource strategies in the overall organizational management process. In assessing the utility of strategic fit to the performance of the organisation and the overall improvement of human resource management functions, Green et al. (2006) concludes that the organisations that vertically aligns and horizontally integrates human resource functions and practices, perform better and produce more committed and satisfied staff that is the case with the organisations which do the opposite. Vertical alignment refers to the alignment of human resource practices to the organizational context in order to support specific organizational objectives.
Characteristics of vertical alignment include:
The top management incorporating human resource plans, requirements and activities during the establishment of the organization’s direction,
Top level managers being trained to integrate all levels of the organization’s management hierarchy and functional departments into the organizational decision-making process and
The human resource department is fully integrated into the strategic planning process.
Horizontal integration is the degree to which specific human resource practices are orchestrated in a coherent and consistent manner to support one another in the best way possible and to integrate with other departments.
The following are the characteristics of horizontal integration.
The human resource department works hard to maintain the corporate partnership with individual managers,
The human resource department regularly checks with other departments to identify organizational training needs and
The human resource department supports departmental managers in carrying out critical human resource management functions as part of their core functions and activities.
Therefore, the corporate strategy should set the agenda for human resource strategy in the following key areas:
#Mission:
This concerns setting the future of the organization. What will the organization be like, serving which purposes and to what extent? This will provide some indicators on the quantity and quality of staff that will be required to effectively transform the functioning of the organization to that level. This will form the basis of the human resource mission.
#Organisational culture:
Organisational culture could mean different things to different people because it depends on individual interpretation. We do not see the world around us in the same way and hence our interpretations of reality are different. An organization’s culture develops itself over a long time. Handy (1993) describes an organization culture as deep-seated beliefs, values, norms, attitudes about the way work should be organized, the authority exercised, people be managed, the degree of informalisation, obedience by subordinates, punctuality, adherence to rules and regulations etc. This framework is useful guidance in the process of developing human resource policies, regulations, and procedures in order to avoid possible contradictions between the established organizational culture and people management at lower levels.
#Human resourcing:
The process of human resource acquisition will depend on business strategy. For example, if new production lines are to be installed in three years’ time, there is no doubt that new skills will be required. Plans have to be made including training and recruitment so that there is the qualified staff of the right size to manage the new production line. The same will apply to service provision whether in the private or public sector organizations.
#Commitment:
As we noted in the first chapter, commitment to the organization cannot start at the bottom of the ladder. Employees have to see, feel, and believe that the top management is committed to making the organization the best place for them to work. Business strategies have to indicate that top management commitment in order to create enabling environment for human resource management strategies. Also Free Download PDF File: How to Integrating Business Strategy with Human Resource Strategy?
#Productivity:
Productivity is an indicator of how best resources are utilized in the organization. Business strategy has to set out performance targets, standards, and measurements. This will form the basis for developing strategies for acquiring the right skills, numbers and performance management as well as reward systems.
#Employee relations:
The relationship between the employee and the management as well as the relationships between employees themselves also depends on business strategy. For example, if a business’s future is not promising, it will certainly affect working relationships. Strategies have to be developed in order to avoid grievance and disputes that could become very costly to the organization. Such strategies could include work-sharing arrangements, introducing work shifts, voluntary retirement, part-time job arrangements and similar action.
Learn and Study, the Strategy and Strategic Human Resource Management (HRM)!
Strategic human resource management (SHRM) has attracted the attention of many scholars in human resource management, particularly those who shaped the development of the human resource management concept. The Strategy and Strategic of HRM! PDF, PDF Reader, and Free Download. Several definitions have been developed but they are not independent of ideas of general strategic management. Also learned, Critiques of HRM! The Strategy and Strategic of Human Resource Management (HRM)!
For the purpose of raising and comparing issues covered in the areas of strategic human resource management, three definitions are offered below.
The first is from Harrison (1993: 36) who defines strategic human resource management as:
“An overall and coherent long-term planning and shorter-term management, control and monitoring of an organization‘s human resources so as to gain from them the maximum added value and best position them to achieve the organization’s corporate goals and mission.”
This definition is about decision making and the process involved in terms of putting decisions into action. The main focus here is on planning for human resources, putting management systems in place so that staffing functions maximize the use of people as required by the organization. In other words, strategic human resource management exists only if the future of the organization is set and human resource strategies are developed and used to realize the future through the present.
An aspect of short-term management control and monitoring is necessary for the realization of the mission and goals. Chaturvedi, in Karadjova-Stoer & Mujtaba (2009) considers strategic human resource management as ‘linking human resource with strategic goals and objectives in order to improve business performance and develop an organizational culture that fosters innovation and flexibility’.
This definition is derived from both resource dependency and strategic management theories within the environment where the success of the organization is based on the ability to develop the most robust business strategy, coupled with having the right people to pursue it. However, it is important to note here that the word ‘business’ also covers transactions for profit.
Therefore, the achievement of the desired future for the organization is seen in terms of the ability to manage employees as the only resource that can mobilize and manage other resources. Therefore, failure to make the right decisions about people management leads to failure of the future of the organization.
Walker (1992) is more interested in the means rather than the end of strategic human resource management. The author points to the need for linking such means with the strategic component of the organization, thus strategic human resource management is about the methods of aligning the management of human resource with the strategic content of the business.
The general understanding derived from this definition is that staffing functions (recruitment, selection, placement, appraisal, rewards etc), which are used as a means of managing people should be directly linked to the strategic choice of the organization. Such choice could be growth, survival, merger, closures, diversification etc. Bhatia (2007: xiii) supports the same conceptualization of linking organizational strategy with people management by defining SHRM as:
The overall direction the organization wishes to pursue in order to achieve its goal through people as a strategic resource for the achievement of competitive advantage.
From this perspective, the goal is to generate strategic capability by ensuring that the organization has talented, skilled, committed, and well-motivated staff.
From the above definitions and scope of strategic human resource management, it is tempting to suggest that as much as it is not possible to come up with a comprehensive definition of strategic human resource management that will not be too wordy and confusing, or too short to give a clear picture of the strategic issues involved, human resource management could also be defined as the process of managing the workforce such that the organisation achieves a sustained competitive advantage over others.
Here, market forces are the drivers for strategic decision-making processes and implementation of staffing functions. In this case, strategic human resource management is both a proactive and reactive management process that transcends organizational lifespan.
Learn, What are the Strategies of Conflict Management? Explaining!
Conflict Management is the practice of being able to identify and handle struggles with a fair, efficient and efficient way. Since collision in a business is a natural part of the workplace, it is important that there are people who understand the struggles and know how to solve them. It is more important than ever before in today’s market. Everyone is trying to show how much they work for a valuable company, and occasionally, this may lead to a dispute with other members of the team. Also learn, the Conflict in Organizations or Organizational, What are the Strategies of Conflict Management?
What is conflict management? Conflict Management is the process of limiting the negative aspects of the conflict while increasing the positive aspects of the conflict. The purpose of conflict management is to learn, including the effectiveness or performance in an organizational setting and to increase the results of the group. Properly managed conflict groups can improve the results.What is the Deductive Method of Economics?
The Strategies of Conflict Management!
In any situation involving more than one person, conflict can arise. The causes of conflict range from philosophical differences and divergent goals to power imbalances. Unmanaged or poorly managed conflicts generate a breakdown in trust and lost productivity. For small businesses, where success often hinges on the cohesion of a few people, loss of trust and productivity can signal the death of the business. Conflicts happen. How an employee responds and resolves conflict will limit or enable that employee’s success. With a basic understanding of the five conflict management strategies, small business owners can better deal with conflicts before they escalate beyond repair.
Here are five conflict styles or strategies that a manager will follow according to Kenneth W. Thomas and Ralph H. Kilmann:
Accommodating!
The accommodating strategy essentially entails giving the opposing side what it wants. The use of accommodation often occurs when one of the parties wishes to keep the peace or perceives the issue as minor. For example, a business that requires formal dress may institute a “casual Friday” policy as a low-stakes means of keeping the peace with the rank and file. An accommodating manager is one who cooperates to a high degree. This may be at the manager’s own expense and actually work against that manager’s own goals, objectives, and desired outcomes. This approach is effective when the other person is the expert or has a better solution. Employees who use accommodation as a primary conflict management strategy, however, may keep track and develop resentment.
Avoiding!
The avoidance strategy seeks to put off conflict indefinitely. By delaying or ignoring the conflict, the avoider hopes the problem resolves itself without a confrontation. Those who actively avoid conflict frequently have low esteem or hold a position of low power. Avoiding an issue is one way a manager might attempt to resolve the conflict. This type of conflict style does not help the other staff members reach their goals and does not help the manager who is avoiding the issue and cannot assertively pursue his or her own goals. However, this works well when the issue is trivial or when the manager has no chance of winning. In some circumstances, avoiding can serve as a profitable conflict management strategy, such as after the dismissal of a popular but unproductive employee. The hiring of a more productive replacement for the position soothes much of the conflict.
Collaborating!
Collaboration works by integrating ideas set out by multiple people. The object is to find a creative solution acceptable to everyone. Collaboration, though useful, calls for a significant time commitment not appropriate to all conflicts. Collaborating managers become partners or pair up with each other to achieve both of their goals in this style. This is how managers break free of the win-lose paradigm and seek the win-win. This can be effective in complex scenarios where managers need to find a novel solution. For example, a business owner should work collaboratively with the manager to establish policies, but collaborative decision-making regarding office supplies wastes time better spent on other activities.
Compromising!
The compromising strategy typically calls for both sides of a conflict to give up elements of their position in order to establish an acceptable, if not agreeable, solution. This strategy prevails most often in conflicts where the parties hold approximately equivalent power. This is the lose-lose scenario where neither person nor manager really achieves what they want. This requires a moderate level of assertiveness and cooperation. It may be appropriate for scenarios where you need a temporary solution or where both sides have equally important goals. Business owners frequently employ compromise during contract negotiations with other businesses when each party stands to lose something valuable, such as a customer or necessary service. What are the Strategies for Management Conflict in Organizations?
Competing!
Competition operates as a zero-sum game, in which one side wins and other loses. Highly assertive personalities often fall back on competition as a conflict management strategy. The competitive strategy works best in a limited number of conflicts, such as emergency situations. This is the win-lose approach. A manager is acting in a very assertive way to achieve his or her own goals without seeking to cooperate with other employees, and it may be at the expense of those other employees. This approach may be appropriate for emergencies when the time is of the essence. In general, business owners benefit from holding the competitive strategy in reserve for crisis situations and decisions that generate ill-will, such as pay cuts or layoffs.
Learn, the Strategies for Management Conflict in Organizations!
What is conflict management? Conflict Management is the process of limiting the negative aspects of the conflict while increasing the positive aspects of the conflict. The purpose of conflict management is to learn, including the effectiveness or performance in an organizational setting and to increase the results of the group. Properly managed conflict groups can improve the results. Also learn, the Conflict in Organizations or Organizational, What are the Strategies for Management Conflict in Organizations?
The Strategies for managing conflict, Mainly three different strategies are used for handling conflict in organizations:
1. Stimulation of Conflicts!
The following methods may use the management to stimulate conflict.
Reorganization!
Changing the structure of an organization is an effective method of stimulating conflict. When work groups and departments are reorganized, new relations and responsibilities arise. Members try to readjust themselves and in this process, improved methods of operations may develop.
Use of Informal Communication!
Managers may manipulate messages in such a way as to stimulate conflict e.g., a department is to abolished can reduce apathy, stimulate new ideas and force revaluation of existing practices. Rumors may intelligently plant in the informal communication system. Conflict can also stimulate by redirecting message and altering channels of communication.
Encouraging Competition!
Healthy competition between individuals and groups may stimulate through properly administered incentives. Bonuses, incentive pay and rewards for excellent performance can foster the competitive spirit in the organization. As one group struggles hard to out-perform the other, constructive conflict will occur.
Bringing in Outsiders!
Management may shake up a stagnant organization by bringing in people whose attitudes, values and styles differ significantly from the prevailing norms. When such heterogeneous persons join an organization, status quo is disturbed. Divergent opinions, innovative ideas, and originality can develop. Also read, What is the Sources of Conflict in Organizations?
2. Prevention of Conflicts!
To prevent conflicts, the following strategies may employ:
Reducing Interdependence!
The potential for conflict is very high when two or more departments are interdependent and share scarce resources. Therefore, conflict may minimize by reducing interdependence among departments.
Rotation of Personnel!
Rotation of employees between interdependent departments can improve perception and mutual understanding. Employees may see the big picture and exchange views with one another. Employees become more considerate and co-operative.
Establishing superordinate Goals!
A difference in goals is a common cause of conflict in organizations. Goal differences can avoid by establishing mutually agreed goals. A superordinate goal is a common goal that appeals to all the parties and cannot achieve by the resources of any single party. In order to achieve the superordinate goal, conflicting parties sink their differences and cooperate together. For example, severe competition may force different departments to work together to ensure the survival and growth of the organization. Thus, a common threat or enemy may act as a great unifying force.
Creation of Mutual Trust and Communication!
The greater the trust among the members of the unit, the more open and honest the communication will be. Individuals and groups should encourage to communicate openly with each other so that misunderstandings can remove and able to understand the problems of each other.
3. Resolution of Conflicts!
Some of the common approaches towards conflict resolution are as under:
Compromise!
This is the traditional method of resolving the conflict. It is a process of bargaining wherein the parties negotiate on the basis of giving and take to arrive at some agreement. There is no distinct winner or loser because each party is expecting to sacrifice something in exchange for a concession. Compromise is commonly using where the conflict involves differences in goals, values or attitudes. It is effective when the sought-after goal, e.g., resources can divide between the parties.
Smoothing!
It is the process of suppressing differences existing between parties to the conflict and emphasizing common interests. Sharing of opinions removes misunderstanding and both parties realize that they are not far apart. Smoothing or accommodating may be useful when the conflict is associated with aggressive feelings among the parties. However, it can use only as a short-term measure for resolving the conflict.
Problem Solving!
In this technique, an attempt is made to bring the conflicting parties together and to share the mutual problems. The focus is on sharing of information to avoid misunderstanding and to find out areas of common interest. The question of who is right or who is wrong is avoiding. This method is suitable for resolving conflicts arising out of misunderstanding.
Dominance or Confrontation!
In this technique, parties to the conflict are left free to settle their score by mobilizing their strengths and capitalizing on the weaknesses of others. Parties use weapons like fights, arguments, and intimidation to win over each other. One party’s gain is another party’s loss. This technique is adopting when both the parties adopt a very rigid stand. Confrontation may aggravate the struggle and contribute little to finding out innovative or constructive solutions acceptable to all. The stronger party ultimately dominates the weaker party.
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International Business Machines Corporation, better known as IBM, is a multinational IT company involved in the manufacture and retail of computer hardware and software applications, and IT consulting services. The company has established itself as one of the selected information technology companies since the 19th century. Adoption of marketing strategies for IBM has been a planned structure since the 19th century and by means of these strategies, it has earned enough success all over the world. With its growth in the manufacturing as well as marketing domains of computer hardware and software, it has gained the nickname of “Big Blue”. On marketing grounds, IBM follows strict infrastructural services, added by hosting provisions and consulting services in various areas from mainframe computers to the persuasion of nanotechnology. Also learn, Tata Motors Acquisition of Jaguar and Land Rover, Case Study on Marketing Strategy of IBM!
Well – devised and efficient marketing strategies have been the key to IBM’ global success. The company strongly believes that devising effective marketing strategies requires making appropriate decisions that can well enhance all kinds of competitive advantages and can create all kinds of new sources of value for the purpose of improving the organizational revenue growth. According to Luq Niazi, Leader of Strategy and Change at IBM, “when the leaders of an organization think about their business as components, it becomes clear which ones they need to own – and which they do not”. This clearly indicates the great emphasis that IBM places on the performance and decision-making capabilities of leaders in devising effective marketing strategies. In addition, the firm also considers understanding the requirements and needs of customers as crucial for developing effective marketing strategies. Understanding the innovative demands of customers lies at the core of developing effective marketing strategies.
Based on IBM’ market share and dominance in the IT industry, the firm can be aptly described as a ‘market leader’. Being a market leader, an important marketing strategy which IBM uses against its competitors is the defensive marketing warfare strategy. The defensive marketing strategy involves the firm employing tactics to maintain its market share. There are several tactics that firms use for defending their market shares, such as fortification, counterattack, mobile defense and strategic retreat. Being the courageous market leader that IBM is, the firm adopts the best defensive marketing strategy which is “self-attack”. IBM’ strategy is “cheaper and better than IBM”. Aware of IBM’ tactic, customers wait for IBM’ new prospects as they know that the Big Blue will constantly introduce new and better products which makes the firm’ own products obsolete. Another key marketing strategy employed by IBM for sustaining its market leadership is product differentiation strategies.
Product differentiation can be achieved using a variety of factors such as distinctive products, reliability, durability, product design etc. IBM uses a product differentiation strategy based on the quality of performance. In line with its quest for further growth and market leadership, the firm adopts a diversification strategy. The importance of IBM’ growth strategy has heightened in the current economic situation with companies in the computer industry had faced a massive drop in the industrial production and productivity of computer hardware and the future growth for this segment also appearing dim. In such a context, IBM has strategically reduced its exposure to hardware by diversifying into software and services.
IBM also realizes the importance of maintaining good relationships with its customers and in line the firm lays great emphasis on trust-based marketing strategies. Trust-based marketing strategies stress the need for organizations to gain ethical hold over consumer dealings and also be honest and open about its products and the services. For IBM, adoption of this strategy has been very effective in developing its brand identity and image. In all of its marketing activities, the firm strives at building customer trust and loyalty.
IBM and E-Business Strategies!
The motive of any electronic business is to efficiently meet consumer demands through internet networking. The internet provides a medium for businesses to reach out to customers globally at very low costs. It is an exclusive means adopted through the dealings related to information and communication technologies. In case of IBM, the role of e-business is very strong. Through e-business strategies, IBM is equipping itself with all kinds of external activities and is applying determined relationships for respective business dealings; with individuals, diversified groups and corporate clients. According to ‘Who Says Elephants Can’t Dance?’; a book by a former CEO of IBM, Louis Gerstner (2003), IBM’ approach for e-Business strategies is handled by specialized e-business teams operating under IBM’s marketing department.
It is through its e-business strategies that IBM is able to link it’s internal as well as external data processing systems with greater efficiency and flexibility. E-business helped IBM in reaching closer to its consumers, conveying the message of reliability and inurn enhancing customer loyalty to the brand. The proceedings led by IBM for the development and implementation of e-business concentrate on the diversified functions occurring through electronic capabilities. IBM is also a part of the entire value chain proceeding for more profitable dominance over the local as well as global market. There are some predominant sectors where the e-business strategies are applied to gain more trust and money from the consumer. These activities are noted below;
Electronic purchasing.
Supply chain management.
Processing orders electronically.
Handling customer service, and.
Cooperating with business partners.
These proceedings add special technical standards in the e-business structure of IBM. The firm also utilizes e-business strategies to exchange of data between its partners and associate companies. As a matter of fact, the e-business strategies of IBM are not much different from the other marketing strategies. The basic difference, however, depends on the expansion of management for sending and receiving contracts from the consumer. Case Study on Corporate Governance for Satyam Scam!
It is under this strategic implementation that IBM has adopted many local dealers to be a part of its services. These dealers are of course selected through some professional modes. The reputations of these dealers are marked by IBM first before offering the partnership. In terms of services for each product sold through e-business, IBM provides appropriate training to all those people who are a part of this structure. With strategic planning, IBM is also in the dealings related to integrated intra and inter-firm business proceedings.
Importance and Use of Information in IBM Marketing Strategy!
The importance and use of information are vital to gaining success. In line, IBM adopted the strategy to take up Social Networking to the workplace. It is an absolute means of sharing ideas, complains and letters of appreciation in public. By means of adopting networking opportunities, IBM established its stronghold over competitive market. It is through the provision of Social Networking (SN), that IBM established its commitment to technology and developed an enterprise-wide SN mindset. IBM is the first major IT supplier that has got potential provisions for social networking and is in the process of changing the entire enterprise along with a credit application to address the market.
By means of investments made in the social networking domain, IBM has gained enough market strengths in the enterprise lineage, global services, deep pockets and above all in gaining loyal customers. By the success of social networking, IBM proved to be a fine player in the domain of information networking. The proceedings have added many advantages to its organizational global services. Social networking for enterprises have been implemented with enough marketing strategies and this is what is providing IBM with technical expertise in the field of organizational/adoption issues.
The launching of more facilities related to social networking is relevant to the competition of the market. The launcher came up with a new idea and launched it much before the thought had developed in anyone’ mind. The second big thing to the adoption of marketing strategy is the IBM’s mindset in the launching of Lotus Connection. It is an informal networking process with the collaboration-centric approach to social networking and helps in information sharing and uninterrupted workflow. By few minutes of exploration, anybody can well get hold over its functionalities. IBM kept it easy and user-friendly; the basics of marketing strategies. Google’s Acquisition of Motorola Mobility for Case Study!
When it comes to the use of information system in IBM, the adoption of unique kind of marketing strategies is predominant. The basic approach is in being innovative and adopting something that is very user-friendly and easy for the customer to adopt. Complicacies in the same field can lead to failure of the same. This is the reason that IBM lays emphasis on making it simple, easy and sharing more than the consumer can expect. Once there is a kind of trust and sense of being facilitated gets into the consumer, he hardly will opt for any other company and this is what IBM believes to the core. Application of innovative ideas in the field of information sharing units can be at great risk, but under the marketing strategy of IBM, this risk has been taken again and again with enough success.
Global Context in IBM Marketing Planning!
In the global context, IBM has proved itself as a strong contender by managing to sustain in the most difficult situations. It has overcome the twists and turns it initially faced in adjusting to the ‘bricks-and-clicks’ business structure. Overcoming all the hurdles IBM is now achieving milestones through the advantages forwarded by brick-and-click enterprises. It is through this enterprise structure that IBM has transformed into a major player in terms of getting hold over global marketing plans. Its formalizations are inclusive of creating a global brand blueprint. It is a mode that usually gets expressed locally and after attaining some success approaches on global grounds. IBM always follows the process of establishing the central framework and then architects the relevant consumer experiences to gain consistency with the brand.
IBM always concentrates on gaining the single view from its consumers and that helps in assessing the risk factors of global marketing strategies. In order to meet the diversified point of views, IBM follows the structure noted below;
The process of analyzing the context of ‘when’, ‘where’ and ‘how’ the appropriate and relevant customer data can be collected. This is an approach that is done under the provision of the practical market survey.
The means to create absolute governance framework with special attention led by management policies and overall practices. These are the sources that are collected through the purpose of encouraging customer centricity added by the scope to safeguard customer privacy.
Approaches led by institute consistent processes for target customer is the next step. In this process, the relationship led by the management across all the domains of sales and provided services of the organization are scrutinized professionally.
The process of appointing efficient team leaders and strong management initiators. IBM also appoints a leader who can perform as a single customer advocate and is very much accountable for all the sorted touch points.
The marketing strategies adopted by IBM to meet global demands and competitions are well inclusive of a robust infrastructure. It has the provision for optimizing flexibility and a hub-and-spoke architecture for collecting consumer demands on the global arena. There is also well-marked acknowledgment for all the innovative ways adopted by the partners of IBM. Developments attain by the partners of IBM in global terms is also directly related to the marketing strategies followed by IBM. IBM understands the fact that partners can add much hold over the local market and can reach the consumer with more in-depth formulations. This is the reason that they believe in developing the capitalized relationship with these partners for future opportunities.
Inference!
It can be well concluded that the marketing strategies adopted by IBM are very much structured on the basis of trust-based marketing strategies. It is through this theoretical approach that IBM has established itself very strongly, amidst burgeoning and very unpredictable online as well as the global marketplace. IBM concentrates on providing its consumer every possible facility that he demands and that too with very balanced services. It is more about having the trust of every single consumer, rather than having lots of them without the trust. The products and services provided by IBM can guarantee their utility to the customer’s satisfaction. In a nutshell, IBM has got professional and the courage to take a risk for innovative ideas. It explores the consumer’s domain through proper hold over the local and global proceedings.
Dell Social Business Strategy;Dell Inc. is one of the world’ largest multinational technology corporation. That manufactures sells and supports personal computer and other computer related. Dell was founded as PC’s Limited in 1984 by Michael Dell, with start-up money totaling $1,000. When he was attending the University of Texas. Michael Dell started his business with a simple concept that selling computer systems directly to the customer would be the best way to understand their needs and give them the most computing solutions. Also learn, Tata Motors Acquisition of Jaguar and Land Rover for Case Study! Dell Social Business Strategy for Case Study!
Learn, Explaining, Dell Social Business Strategy for Case Study!
Dell Social Business Strategy; The first product of the company is a self-designs computer call Turbo PC which had lower prices than major brands. PC’s Limited was not the first company to do this but was the first to succeed, grossing $73 million in its first year trading. Dell Social Business History: The company changed its name to Dell Computer Corporation in 1988.
They try to sell computer through stores in 1990 but was unsuccessful and they return to sell directly to customers. Dell was including in Fortune Magazine as one of the world’s 500 largest companies in 1992. Four years later, Dell began to sell computer through its website. In 1999, Dell beat Compaq and became the biggest seller PCs in the US with $25 billion in revenue. In 2003, the company’s name was changed to Dell Inc.
The Case Discussion for Dell Social Business Strategy:
First, How to manage the social media presence and what strategy the company should adopt for its social media presence?
Second, How to engage employees and other stakeholders in the social media platforms and how to use the information in organizational decision making?
Third, How to generate good ROI from social media marketing initiatives and profit from social media presence?
And last, What technologies and platforms are to use for social media and how to measure ROI?
In June of 2005.
Jeff Jarvis bought a Dell Lemon and paid a premium for the four-year in-home service plan. He started to face problems with the machine immediately and he contacted Dell for fixing the problems, but there was no proper response from Dell. Dell did not provide good service to Jarvis and with no other option, he posted his angry bust on poor Dell Service on his blog Buzz Machine titled “Dell lies. dell sucks”.
His blog post generated severe criticism of Dell and other unhappy customers joined and the whole blogosphere started a critical discussion of the poor quality of products and how bad is Dell Technical Support service. Dell which was already struggling with poor revenues and blogosphere criticism added fuel to the poor financial performance and hurt Dell reputation badly.
The problem of poor customer service and quality of products was not new as Dell was not listening to the customer complaints for long and the blogs had just publicized and gave an opportunity for the aggrieved customers to vent their anger. Dell had the first-hand experience of how social media can impact the business and how critical it is to listen to customer complaints and fix them fast.
In 2006.
It took one year for Dell to realize the extent of damage caused by the blogs and forced the company to announce a new business plan, called Dell 2.0 in 2006 that included an additional $150m investment in their customer service. The investment included sales channels, both in sales contacts & its online presence, in its website front and back end and expand the scope of Dell Connect, which enables a Dell technician to take control of a customer’s system should they be encountering problems. More Read it, What is Organizational Structure for Corporate Entrepreneurship?
In March 2006 a community outreach team was forming that including the group of technical support experts with good interpersonal skills that listen, monitors and reaches out to bloggers around the world who have questions or may require assistance. Direct2Dell was launching in July 2006 and in August Dell expand blog outreach to include any conversations about Dell.
Initially, Direct2Dell blog was receiving with negative skepticism, but chief blogger Lionel Menchaca convince bloggers that Dell was seriously listening to the bloggers and he diligently respond and link to critics. Dell’s team staunched the flow of bad buzz and by Dell’s measure, negative blog posts about it have dropped from 49% to 22%. Dell even engaged an external agency to monitors online conversations about Dell.
In February 2007.
Dell launched IdeaStorm that allowed Dell users to provide feedback & valuable insights about the company and its products and vote for those they find most relevant. The Linux community used this platform and suggested Dell brought back XP as an option for customers who wanted it, reduced trialware and listen to customers discuss ideas in real time.
StudioDell (January 07) is a place where Dell users could share videos about Dell-related topics and videos and podcasts were using to educate users on various emerging technologies and also offers tips, tricks, and support to get the best out of a Dell product.
Dell operated blogs and forums for dedicated customer engagement topics, joined Twitter (June 07) with a number of ids. Dell set up a centralizing team, appointed a separate leadership and resources were taken from multiple teams (IT, online) to test and launch social engagement tools and websites quickly. This team has developing formal social media strategy and set of social media policies and governance was set in place.
In 2008.
Dell social media presence started to yield results in terms of ROI and social media has become part of the business strategy and the various business units were provided specific targets for social media. Employees were trained and encouraged to actively participate in various social media channels, provide customer support through blogs, twitter, etc and community managers who were responsible for listening and resolution, content planning, technology testing, planning, and measurement was the name for various business units.
Dell even went further with its social media initiatives a blog for the channel community was launching, online communities were launched for Dell’s environmental efforts called Regeneration and technophiles called Digital Nomads and social content appeared on Dell.com (homepage navigation, product pages with ratings & reviews). The Dell outlet, small business, and home offer available on Twitter had $500,000 in revenues. Dell started a page focusing on SMBs and fan pages on Facebook.
In 2009.
due to the recession pressure, social media team had to reduce headcount. Which led to the departure of key people in the social media facing teams within the Dell. The departures had an impact on the Dell social media presence had seen consolidation in the number of blogs & twitter accounts, slow down in response and lack of experience had further worsened the situation.
But Dell managed to keep up and the worldwide community has grown to more than 3.5 million people across the social web, including places like Twitter, Facebook, Direct2Dell, and IdeaStorm. @DellOutlet had close to 1.5 million followers on Twitter with $3 million in revenue and in total Twitter has resulted in more than $6.5 million in revenue. Dell launched the Dell Tech Center in 2009 to revitalize the brand and increase awareness of Dell’s solutions capabilities as customers valued a trusted advisor relationship.
In 2010.
Dell consolidated its social media strategy in 2010 with the appointment of new leadership to social media. Division and together with the old members of the Dell social media team, Dell tried to regain its focus. Another effort from Dell to maintain its focus on social media was to open up. A Social Media Listening Command Center in Austin Texas under the leadership of Chief Listening Officer. Where real-time data is collect and visualize by Radian6 and display across rows of monitors. That shows a unique dashboard, offering instant insights into things like customer sentiment, the share of voice and geography.
Dell also started on Customer Advisory Panel events with a goal to bring key customers and key advocates to Dell HQ in June 2010 to understand their delights and frustrations. Other DellCAP events were held in China in November 2010, in Germany in January 2011 and again in Round Rock in March 2011, focus on Sustainability topics. Think New, Why is Intrapreneurship Better than Entrepreneurship?
In 2011.
Now, Dell continued to improve its social media presence in 2011 and the Social Media Listening Command center is playing a critical role in these efforts. Also, Dell is tracking 25,000 online mentions both posts and tweets about Dell every day and understand this information based on topics, sentiment, the share of voice, geography, and trends and use it answer customer questions, address their concerns, build better products, and improve the overall customer experience.
Dell has around 5000 employees trained as Social Media professionals and turned them. Into frontline social marketers who engage in Twitter, Facebook, LinkedIn, blogs, and more on the company’s behalf. As, Dell views employees’ social media participation as an asset rather than a liability and accordingly doesn’t restrict team members from utilizing mobile devices, apps or social media.
Dell is using social media as a platform to support various campaigns and using it in the promotion of its first Customer Event. Dell World and launches a website, Techpageone.dell.com (Formerly EnterpriseEfficiency.com). Which is a microsite feature daily, topical blogs written by InformationWeek editors and writers as well as Dell executives to gain insights?
Now more Opportunity for Dell Social Business Strategy.
Dell Social Business Strategy; Social media has provided an opportunity for Dell not only to interact with customers. Understand their opinions and needs but also provided a marketing platform wherein. They can advertise their products, improve the brand image and loyalty and improve their revenues with the rise in sales. Dell initially entered into social media not to sell its products but to respond to its customer complaints and feedback but customers wanted to access to special deals from its social feeds that link to products, reviews or discounts.
Dell is committed to improving the overall level of customer service continuously which is 24×7 “always-on” customer service philosophy. Through social media and has made it a critical part of the business strategy with clearly defined policy and is considering as one of the top companies in the world. That is significantly profiting through the use of Social media.
Case Study Starbucks Growth Strategy; Today, Starbucks coffee shops and Kiosks can found in a variety of shopping centers, office buildings, bookstores, and other outlets. Starbucks is capitalizing on taste changes that predate the company’s founding. In the early 1960s, American adults consumed an average of three cups of coffee each day. Today, consumption has declined to less than two cups, with only half of American adults as coffee drinkers. Also learn, Starbucks’Entry to China, What is the Growth Strategy for Case Study Starbucks?
Studies, Learn, The Growth Strategy for Case Study Starbucks!
During this time, decaffeinated coffee sales soared. In addition, a new category of intensely loyal coffee drinkers was born. This group of adults consumes “specialty” or “premium” coffees, including regular and decaffeinated versions with a variety of origins and flavors. Sales of specialty coffee have climbed from about $45 million annually to more than $2 billion today, accounting, for about 20 percent of all coffee sales.
Because Starbucks markets whole beans and coffee beverages, its competition comes from two distinct groups of firms. A number of regional coffee manufacturers distribute premium coffees in local markets, while several large national coffee manufacturers such as Nestle, Proctor & Gamble, and Kraft General Foods market and distribution specialty coffees in supermarkets. Coffee beverages are distributing by restaurants, grocery stores, and coffee retailers. Seattle’s Best Coffee is a fierce competitor.
The case of History!
In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel, and writer Gordon Bowker opened Starbucks Coffee. Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. The store did not offer freshly brewed coffee by the cup, but tasting samples were sometimes available.
Siegel will wear a grocers apron, scooped out beans for customers. While the other two kept their day jobs but came by at lunch or after work to help out. The store was an immediate success, with sales exceeding expectations, partly because of interest stirred by the favorable article in Seattle Times.
Other things:
Starbucks ordered its coffee-bean from Alfred Peet but later on, the three partners bought their own used roaster setting up roasting operations in a nearby ramshackle building and developed their own blends and flavors. By the year 1980s, the company had four Starbucks Stores in the Seattle area and had been profitable every year. Later on, Siegel left the company and Jerry Baldwin took over day-to-day management of the company. Gordon Bowker remained as an owner but devoted most of his time in his Design Firm.
In 1981, Howard Schultz, the vice president of U.S operations for Swedish Maker of stylish kitchen equipment and coffeemakers decided to pay Starbucks a visit. He was curious about why Starbucks was selling so many of his company products. He was impressing with the company management and the quality products they make. Schultz asked Baldwin whether there was any way he could fit into Starbucks and it took a long time to decide his request. He tries many times until one day he was given a job of heading marketing and overseeing the retail stores.
The case of Challenges:
What are some of the challenges associated with Starbucks aggressive growth strategy?
Could an unanticipated change in coffee consumption patterns disrupt Starbucks in the same way that it paved the way for the company’s growth in the 1980s?
What problems might arise from Starbucks’ efforts to expand rapidly into nations such as India?
Comment on the pricing strategies of Starbucks.
How would you see the competition of Starbucks in India, with players like Costa Coffee, Mc Donalds, Barista and Café Coffee Day? Draw out a competitive strategy for Starbucks.
Here are Some More Knowledge these Case for better Understand.
Howard Schultz spent most of his working hours in the four stores learning the retail aspects of the company business; Schultz was overflowing with ideas for the company. His biggest inspiration and vision for Starbucks future came during 1983 when the company sent him for an international housewares show to Milan, Italy. There he spotted an espresso bar and went to take a coffee.
H. Schultz was impressed with the coffeehouse services and decided to stay at Milan for a week to explore. All coffee bars and learned as much as he could about the Italian passion for coffee drinks. He made a decision to serve fresh brewed coffee, espressos, and cappuccinos in its stores and try to create an American version of Italian coffee bar culture.
Schultz shared his idea with Baldwin and it took nearly a year to convince Jerry Baldwin to let him test an espresso bar. In April 1984, the first espresso bar was opened and it was a success too. Yet Baldwin felt something is wrong. After Schultz failed to convince Baldwin for the expansion of business, he left Starbucks in 1985. Schultz started the “Il Giornale” coffee bar chain in 1985 and the coffeehouse was very successful.
In 1987 Starbucks owner Jerry Baldwin and Bowker decide to sell the whole Starbucks chain to Schultz’s Il Giornale. Which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. At the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets.
The growth of Coffee Stores!
In 2009 The Company plans to open a net of 900 new stores outside of the United States. Chairman Howard Schultz projects that the Starbucks mobile app will grow from its present 6,000 stores to more than 20,000, 75 percent of which are in the United States. Also, The company added 280 intentional locations in 2001 and is targeting. With an additional 650 stores in Europe by 2004 and 900 locations in Latin America predominantly Mexico by 2005, Starbucks is also moving into China.
Retail stores account for more than 80 percent of revenues, with specialty operations accounting for the remainder. Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of 2017, the company operates 27,339 locations worldwide. Also, Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s.
Location:
The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. Also, The company opened an average of two new locations daily between 1987 and 2007. Starbucks considers the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee.
Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons. On December 1, 2016, Howard Schultz announced he would resign as CEO effective April 2017 and would replace by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017.
What is the Growth Strategy for Case Study Starbucks?
