Tag: Strategy

  • What are the Strategies of Conflict Management?

    What are the Strategies of Conflict Management?

    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.

    What are the Strategies of Conflict Management - ilearnlot

  • What are the Strategies for Management Conflict in Organizations?

    What are the Strategies for Management Conflict in Organizations?

    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.

    What are the Strategies for Management Conflict in Organizations - ilearnlot
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  • Case Study on Marketing Strategy of IBM!

    Case Study on Marketing Strategy of IBM!

    Learn, Case Study on Marketing Strategy of IBM!

    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.

    Case Study on Marketing Strategy of IBM - ilearnlot

  • Dell Social Business Strategy for Case Study!

    Dell Social Business Strategy for Case Study!

    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.

    Dell Social Business Strategy for Case Study
    Dell Social Business Strategy for Case Study!
  • What is the Growth Strategy for Case Study Starbucks?

    What is the Growth Strategy for Case Study Starbucks?

    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
    What is the Growth Strategy for Case Study Starbucks?

    Reference:

    1. Case Study – //www.mbaknol.com/management-case-studies/case-study-starbucks-growth-strategy/
    2. About Starbucks – //en.wikipedia.org/wiki/Starbucks
    3. Photo Credit URL – //cdn.someecards.com/posts/guy-uses-drone-to-pick-up-starbucks-order-0rb.png

  • The Rational and Dynamic Approaches to Strategic Management

    The Rational and Dynamic Approaches to Strategic Management

    Rational and Dynamic Approaches to Strategic Management; It is not a new concept. It has defined as a management system that links strategic planning and decision making with the day-to-day business of operational management. Strategic management is not a simple, step-by-step process, but a complex and iterative process. Which needs hard work and dedication from many people in an organization to implement it toward the objective.

    Evaluation of the Rational and Dynamic Approaches to Strategic Management

    It is the process for the leading members of an organization to forecast its future and develop the necessary procedures and operations to achieve its future. Also, Strategic management is usually found in high levels of management to help organizations gather, analyze and organize useful information to keep up with the industry and competitive trends. The rational and dynamic approaches to strategic management are two different schools of thought. Furthermore, The rational approach is well-plan and more prescriptive in strategy selection. However, the dynamic approach is the opposite.

    What is Strategic management?

    SM is the formulation and implementation of the major goals and initiatives taken by a company’s top management on behalf of owners, based on consideration of resources and an assessment of the internal and external environments in which the organization competes. Strategic management provides overall direction to the enterprise and involves specifying the organization’s objectives. Developing policies and plans designed to achieve these objectives, and then allocating resources to implement the plans. Academics and practicing managers have developed numerous models and frameworks to assist in strategic decision-making in the context of complex environments and competitive dynamics. Strategic management is not static; the models often include a feedback loop to monitor execution and inform the next round of planning.

    Michael Porter identifies three principles underlying strategy: creating a “unique and valuable [market] position”, making trade-offs by choosing “what not to do”, and creating “fit” by aligning company activities with one another to support the chosen strategy. The corporate strategy involves answering a key question from a portfolio perspective: “What business should we be in?” Business strategy involves answering the question: “How shall we compete in this business?” In management theory and practice, a further distinction is often made between strategic management and operational management. Operational management is concerned primarily with improving efficiency and controlling costs within the boundaries set by the organization’s strategy.

    Evaluation of the Rational and Dynamic Approaches to Strategic Management

    The choice for any of the two approaches can indirectly or directly link to the environment in which the organization operates or certain organizational factors that affect the application of the strategic management approach. The favor is inclining to the dynamic approach because of the changing factors in the external environment. It is two of the Disadvantages of the Rational Approach and the Advantages of the Dynamic Approach.

    Conclusion;

    The thought of rational strategic management supposes the environment of the organization facing is stable, small changes, and expectant. So, the organization can look forward to the market and the future. But today, the environment of the organization facing is not only complex but also less and less expectant. If the organization emphasizes the rational model, it may only concern with management efficiency and form strategic management excessively. Which will create a kind of logjam of strategic management? The option of the dynamic approach advance with the times and takes. The whole situation into account and plan accordingly.

    The disadvantage of the rational approach does not mean this approach is useless. No one can say the dynamic approach is useful to all strategies. The rational model promotes considering the available alternatives. Evaluate all of the consequences of every alternative and choose the appropriate alternative. The positive impact on organization performance exists, but the organization can not only rely on the rational approach for positive performance. Therefore, some researchers suggest an integrated approach – hanging the rational approach and the dynamic approach together. Mintzgerg (1987) argues that realized strategy is always a combination of the rational approach and the dynamic approach. As strategic management is a complex synergy of strategy, the integration may result in a remarkable performance.

    Strategic management is a science that is closely related to social science. The methodology of strategy formulation requires adapting to the nature of the scientific discipline. Only the organization that practices some form of strategic making can survive, anticipating the unpredictability of external influences in an environment. What are the Components of a Strategy Statement?

    Evaluation of the Rational and Dynamic Approaches to Strategic Management - ilearnlot
    The Rational and Dynamic Approaches to Strategic Management
  • Aligning Reward Strategy with HR Strategy

    Aligning Reward Strategy with HR Strategy

    How to Aligning Reward Strategy with HR Strategy?

    It is never too much to point out the importance of HR strategy for the successful organization. Effective HR management is maximum utilization of capacity of work force within organization by appropriate allocating of employees and effective motivation for the all different types of employees. In order to do so, analysis of each employee’s nature, competence, stress endurance level and trait should prepare. What Are My Goals? It is important to know each employee’s character and motivation factor base on data base obtaining the daily working behavior of employees as well as their accomplishment from the macro perspective.

    This kind of accurate, thorough and fair data base can be applying to the company’s redundancy management. Company can help employees to look for other jobs, which fit them better, by which company can have better productivity with same input resource. Which company can have the sustainable competitive advantage over the competitors.

    The HR strategy is directly connected with the reward strategy as we have  through so far, employees’ motivation is heavily rely on the total reward strategy of organization, which should design not only by HR department but senior managers who are directly involve in the whole organizational strategy, by which the total HR strategy can implement, support and review consistently. Components of a Strategy Statement!

    Regardless of eastern, western, ancient time or modern time, the importance of HR strategy is always appreciates. This is because, even if any given organization has the best infrastructure in many ways. They are manipulate by human and this cannot be replace any other system that are available so far. Therefore the right people for the right place base on the total reward strategy development map is more important than any other factors or than ever to maintain the long lasting successful organization.

    Align your Reward and Business Strategy

    So you’ve done a market study on compensation, and you are Peggy pretty much at where you want to be against the market. You’ve design a cutting edge Pay-for-Performance program and even have some exciting stock options for your top management. And of course, you know better than to ignore the millennial – you have a flexible salary structure, complete with gym memberships and other such benefits. All you need to do now is wait for the motivation to kick in and reap the benefits right? Then why is your business not growing every year as you had plan? Or perhaps your margins are shrinking with every passing year, while your employee costs keep rising due to the war for talent? The Types of Kotter’s Eight Steps Change Model.

    Why is your rewards strategy not delivering results? 

    One critical aspect that companies tend to overlook is alignment of rewards with business strategy. Reward programs work, if they are strongly link to business objectives and the employees know what is expects of them in their jobs. Employees must see the connection between their own work and the overall goals of the company. But, how do you ensure that your rewards and business strategy are align?

    Identifying measurable business goals: The first step towards bringing this alignment is by breaking down the company’s vision into clear measurable goals. Identify your goals for the next three years and think about how you will achieve those goals – identify the levers you must pull, to create value for your company.  Let’s say that lever is new products, then you must have metrics related to new product development on your company’s scorecard and also distributed across the scorecards of your CXOs – it could mean adding a new production line over the next three quarters, augmenting the R&D unit or hiring new technical specialists. This implies that you must add metrics to the scorecards of your Head of Production, Head of R&D and CHRO. 

    Driving alignment through all levels in the organization: The next step would be to align the larger employee population to these company goals. Stop and consider what are you are currently rewarding for vs. what you should be rewarding for? If it is planning sustain growth that you are after, instead of small incremental year-on-year growth. Make sure your employees understand how you plan to make that shift. Employees need to understand what they should be doing differently. It’s most likely that you won’t grow faster by just working harder and putting in more hours. You will have to innovate, and create more value from the same resources at your disposal. Hence, the KPIs should reflect this change in your thinking and approach. 

    Equity in target setting: Given the business strategy and goals, what is the acceptable level of performance now that your goals have defined? This definition must be the same for everyone in the organization. All too often, different departments rate their people differently, depending on their own perceptions of acceptable performance. Another reason for this is the perceive difference in the achieve-ability of targets. Incorporating a structured, data-based system for setting targets starting from the top will go a long way to establish equity in target setting. Equity in targets is an important factor for maintaining. The optimum degree of stretch across, an organization and keeping everyone focused on the goals. 

    Don’t underestimate the intangibles: Goals and metrics is only one aspect of executing a business strategy. Another equally important aspect is ‘employee will’ to execute the strategy. Reward has a key role to play in demonstrating an organization’s values, commitment to employees. The value it places on performance. The intangible, emotional part of rewards is far heavier than the tangible, monetary part. This is why it’s important to view rewards as Total Rewards rather than just a monetary pay-out at the end of the year. Total Rewards includes tangible rewards like basic salary, allowances, benefits, bonuses, stock options, retrials etc. Also intangible rewards like career development, work-life balance, safety and security, quality of work and an enabling environment.

    Make sure that your intangible rewards speak the same language of performance and success as your tangible rewards. For example, if monetary rewards in your company are link to metrics that can achieve through innovation and collaboration. You cannot cultivate an environment that promotes bureaucracy and competition. You may need to make changes to your structure, systems. Processes in order to create an enabling environment. Perhaps reduce the number of layers in the organization to increase speed of decision making. Or create cross functional teams to encourage creativity and collaboration? 

    Robustness of supporting environment and processes: Sometimes the factors that get in the way of alignment are the very processes that support and help deliver the reward strategy.

    Some factors to watch out for are:

    1. The Performance Management System – Is it fair, transparent and objective?
    2. Organization Structure – Is it gear to deliver business strategy and performance?
    3. Role definitions – Do people know what is expects of them in their job?
    4. Behaviors – Are we encouraging the right behaviors needed to achieve our business goals?

    Top management Involvement: Creating alignment is hard work and demands a lot of time and attention from the top management. Some of the ways in which the top management can support.

    The alignment process are:

    1. Communication: Reinforce the company’s business goals through on-going, public communication. This would ensure that all employees are aware of the future direction of the company. Be vocal about the reward strategy and how it links with business goals. Emphasize on the company’s commitment to high performance.
    2. Role modelling: Every leader in the organization must be a role model for behaviours desired for business success. They should demonstrate company values through their actions on a day to day basis.
    3. Drive the process: Aligning reward strategy with business strategy should not be seen as a purely ‘HR’ activity. It is critical for business success and should position in the same manner. The top management should drive the process with support from HR.
    4. Gatekeepers to the process: Top management must ensure that the process is followed as intended. They must appropriately and visibly address any deviations or exceptions to the process.

    It goes without saying that the top management’s inputs are crucial for articulating the business strategy. Ensuring its buy-in and also serving as gatekeepers to the process. Moreover, the effort has to be a consistent one, till the time it becomes a part of the organization’s culture. What are Effects of Goal Orientation on Student Achievement?

    Lastly, I would not recommend trying to fix everything all at once. Take the time to study the data, listen to your employees and then address the aspects that matter the most. Know where to start to get maximum impact.

    Aligning Reward Strategy with HR Strategy - ilearnlot

  • Reward Strategy with Developing System for Your Organization

    Reward Strategy with Developing System for Your Organization

    How to Make Reward Strategy with Developing System for Your Organization?

    Reward is an important part of managing organization and the management of employees. It can define as an organization is ready to pay for to accomplish its strategic objectives. Therefore the review of reward system starts from understanding of organizational strategy and HR strategy supports this. Strategic reward objectives should be align with business objectives in the same way as other key business areas such as finance, marketing, administrating and IT.

    In the broad way, there are two ways of reward such as tangible and intangible. The definition of these two rewards are in a way ambiguous as it could vary according to the viewers’ standpoints, but most of rewards can be classified as the tangible, which includes competitive salary, promotion, good benefits, incentive, better working environment, recognition awards and all other fringe benefits for higher performance. Whereas, intangible rewards is none monetary reward for high performance, not always requiring recognition of others in the workplace. Examples are when a sales manager gives the sales person recognition by a “pat on the back, send an appreciation e-mail and usage of bulletin board” to show appreciation for job well done.

    In order to implement the reward system the most appropriate way, performance appraisal, evaluation, accomplishment rating should be done the most fair and objective way, but it is sometimes easier said than done. Due to the unfair or unreasonable evaluation, employees get depressed over the total reward system of the organization. In addition, the subjective appraisal is often taking place because of the managers’ personal preference or subjective views on some employees in particular.

    However, to get this done the way it should, managers should have the most fair and objective views with regard to the evaluation of employees. By doing so, organization can reach to the final goal pertaining to the HR strategy such as retaining the indispensable, key employees or high performers, motivating average performers work harder and redundancy management for underachievers, who do not fit the organization, by which company can have the sustainable competitive advantage.

    Reward Strategy

    Reward strategy is the key step in the design of a reward system to keep high quality staff and motivate average level staff to work harder. And it is to set up the mechanisms help in recruitment, retention, engagement and development of employees so that they perform and deliver at their highest potential and therefore make the organization successful.

    Such a competitive business environment of these days, it is very important to have the decent reward strategy initiatives by the maximum utilization of the organization’s financial and non-financial resources as the competitors are looking for the opportunities to scout the high quality employees all the times. The competitors’ better reward strategy initiative can be good reason for high quality employees to leave for the competitors.

    People work because they gain an income to spend on their individual, family and community needs. Some people needs are the essentials of lives, what humans needs to survive physiologically. Maslow defined the hierarchy of needs with fundamental physiological needs at the base and rising through safety, social needs and culminating in the need for self-fulfilment. Herzberg distinguished between firstly hygiene extrinsic factors such as pay and organization policy and procedures that will cause dissatisfaction in the workplace if absent or insufficient.

    Satisfiers, which are intrinsic responsibility and potential for growth which will positively motivate people. Since Maslow and Herzberg were published over 50 years ago, other like expectancy theory identifies two factors of value and probability. People value reward in terms of how well it satisfies their needs of security, social esteem, fulfilment and autonomy. Inevitably people value different elements differently, which suggests reward must include a mix. Expectancy is the probability that reward depends on effort like the more effort, the higher the reward. For that effort to be helpful to the organization, individual needs to have the appropriate ability and the correct perception of their role. This emphasizes the need for clear role definitions and understanding, effective development interventions and a link between performance and reward.

    Strategic human resource management is different from traditional human resource management in its focus on organizational outcomes, its integration of the various functional areas of human resource management, and its concern with more macro perspective on the topic. The field has progress significantly, however, inadequate definitions and spare theoretical development continue to plague it. Extensive research and studies on reward strategy has shown that people are complicated and motivation is a complex process. What is clear is that while financial reward is important , for most people other factor are also, and can be more important.

    These can brought together under three sections:

    • Equity – the perception of being treat fairly both in comparison to others and in terms of the effort and skills brought to the role.
    • Self-fulfillment – that people are recognize for what they do and encourage to reach their potential through effective learning land development processes and given feedback on their performance.
    • Organization culture – roles are clear and organizational and personal values are alignment so that employees engage and enjoy work.

    Total reward strategy addresses this complexity in bringing together financial aspect of reward of basic pay, any bonuses. Additional financial benefits with the non-financial benefit at the personal and organizational level. This is a helpful concept, especially because it acknowledges the limits of purely financial reward. Identifies other areas that can address, in particular when salary budgets are limit for economic reason.

    Reward is more than pay and benefits. Therefore a reward strategy must consider many aspects of the workplace in order to both attract. Keep high quality people doing the right things in the right way so that they flourish and the organization is successful.

    Developing a Reward Strategy

    The reward management system needs to support the business strategy. As such there are a number of different approaches. But they all break down into a small number of common overall methods. One of the key determinants in deciding which approach will work best is the extent to which the business wants integration between its reward system. The other HR systems and policies it utilized.

    Arguably, the opportunities to leverage real competitive advantage comes from integrating the reward management, performance management, career management. Personal development systems into a cohesive whole, rather than seeing each as a separate and disjointed system in isolation.

    The key step in redesigning the reward management system is to determine the reward strategy. The level of integration with other HR systems. This provides an overall framework for the reward system and must be closely link to the business strategy.

    To develop a reward strategy, there are three underlying premises.

    Firstly, in order to meet its strategy, the business must exhibit certain characteristics. It needs to behave in certain ways, for example treating its employees in an open. Honest fashion or creating co-operative relationships with its customers and suppliers.

    Secondly, organizations are made up of people. And as such it is how the people behaves that will determine how the organization behaves.

    Thirdly, the integrate approach to people management starts off with individual behavior expectations. Examines how these will measure (performance management), develop (personal development) and rewards (rewards and career management).

    There are a few factors to be include in a reward strategy. With regard to underlying structure. There are number of ways in which a grading structure could be develop according to your business needs. Which include single structure, career families and job families.

    Which provide a common grade framework that supports a drive for consistency. Common threads are the policies, systems and procedures that operate across the business.

    For example, since pay rules, benefit allocation rules such as cars, pensions and private medical insurance. Procedures such as holiday or absence notification and promotion. They are there to make everyone’s life easier because there are clear rules and every one sticks to them. Include in this area would normally be decisions about flexible benefit schemes. Choice of carriers for insure benefits, and so on.

    When it comes to base pay structure, there are three decisions that need to made such as market alignment, number. Shape of the salary scales and access to and use of market data. Which recognize the market value of rules and nay role-specific needs. Variable pay takes three main forms.

    Firstly, annual schemes which are normally bonus arrangements where there is some link to underlying business performance.

    Secondly, commission type arrangements where the main link is to individual performance.

    Thirdly, long-term schemes that might be cash or shares base. And are typically using for the more senior employees, although all-employee profit related schemes sometimes fall into this category.

    Recognition schemes are either non-cash or low-value cash equivalent schemes that recognize behavior that reinforces the organization’s values. They tend to “award” base with some form of nomination process, either from other employees or line managers. When it comes to non-financial reward, from an individual’s perspective.

    The total reward of working for a particular organization is made up of four elements such as cash, benefits, personal development, growth and environment. Finally integration is about creating a common theme throughout the people management processes.

    For example, it may be about ensuring performance management. Performance-pay processes are consistent, using common factors for measuring job size. Determining employee development needs, creating a common language which is use consistently throughout. All people management processes, developing structures that manage more than one people management process at a time. For example, the career families approach discuss above attempts to integrate job grading and career tracks.

    Reward Strategy with Developing System for Your Organization - ilearnlot

  • Do you Know Price Perception and Pricing Strategy?

    Do you Know Price Perception and Pricing Strategy?

    Do you Understand Meaning of Pricing Strategy and Price Perception

    A company will begins a good pricing with a complete understanding of the value and price of the products or services from the price setting to capture the customers’ perception on value and price. For example, if a customer decides to buy a product but he or she find that the price that set is higher the value which is from a products, this will make the customer making decision that does not buy this product. Definition of Price Perception.

    A company can make the decision on pricing based on two types of value basing pricing which are good-value pricing and value-added pricing. A good-value pricing means a company will sets a fair price by offering the right combination of quality and good service. Besides that, value-added pricing means a company will sets the prices based on customers’ perceptions of product value rather than the manufacture’s cost.

    The customers’ perception on value and price will set the ceiling of price; costs also will set the floor for the price that a company can set. A company needs to know the costs that spend on products before they can decide the pricing decision by using cost-based pricing. Cost-based pricing is a stage that a company set prices that including the producing expenses, distributing expenses. Selling expenses and the value of return on effort and risk. A company should consider the cost-based pricing as the important stage in pricing strategies. The costs that spend on products can be two forms which are fixed costs and variable costs.

    Fixed costs are the costs that do not easily vary with production level while variable costs are the costs that vary directly with the production level. Examples of fixed costs are bills for rent, interest or executive salaries while the examples of variable costs are bills of electricity, packaging expenses and so on. The company must calculate the costs of products carefully. Role of Price Perception in Consumer Buying Process.

    If the company costs are higher than other competitor’s costs during the producing and selling the products, this will make the company set the higher prices to earn some profits. The effects of charging the higher prices of products, the customers will buy the products from other competitors because the price that offers by the competitor is cheaper than the company. Therefore, a company should consider the customers’ perception on value and prices as important elements because customers can determine company performances.

    Consumers’ perceptions of products rely heavily on the pricing strategy that is chosen by the marketing manager. Price will impact not only consumer perception but also profit and speed of product adoption.

    Cheap or a Good Deal?

    It is Valentine’s Day, and you are waiting to unwrap a gift from your significant other. The box is opened to reveal a beautiful gold necklace, that you can’t wait to wear. A week later, you stumble upon the receipt for the necklace and find out it only cost $99. The beautiful gold necklace that you once loved now seems cheap and ugly. Why? The price has altered your perception of the necklace.

    Marketing managers must be careful of the pricing strategy they use to sell their products and services. Consumers’ perceptions of products, and services are drastically affected by different pricing strategies. For example, the staff of the local business called Heart Attack on a Plate Bakery is revamping their products’ prices. They are researching the best pricing strategy to implement for all of their baked goods. They want their prices to reflect a premium image but not be so costly that their consumers perceive their products as unaffordable.

    Pricing Strategy: Everyday Low Price

    One of the most popular pricing strategies in marketing is EDLP (everyday low price). The theory behind using this pricing strategy is that it provides value to the consumer by eliminating. The need to search for better deals elsewhere. It helps the retailer because it offers one price and avoids constant sales, discounts and price changes. Heart Attack on a Plate Bakery does not want to use an EDLP strategy as its products are premium. And area competitors can’t match its quality. Walmart is the leader in EDLP pricing. They stress that the overall price of consumer purchases will be less than the competition.

    Most stores that adopt this type of strategy also use odd pricing in order to further increase. Their consumers’ perception of a good pricing deal. For example, if Heart Attack on a Plate was going to use EDLP pricing. Then its cupcakes would be priced at $1.99 each. The thought is that consumers will ignore the 99 cents and view the cupcakes as costing only $1. Sometimes, the use of odd pricing can backfire and cause the consumer to perceive the product as cheap. For example, if a bride wanted to order a wedding cake from the bakery. And was quote a price of $99.99, there could be a negative price connotation or a lower-quality image.

    Pricing Strategy: High/Low Pricing

    Another pricing strategy that firms can use is called high/low. In this instance, the retailer depends on promotions and sales to temporarily reduce prices. This type of pricing strategy allows consumers to perceive that they’re getting a deal during a sale. It also allows another segment of consumers who are not price-sensitive to pay full price. Which in turn brings in more profits for the company.

    A high/low strategy also makes the consumer perceive excitement. Or that a deadline exists for getting the sale price during a limited-time period. A retailer does provide a reference point. Which is the price against which buyers compare the sales price of the product to the actual price.

    For example, Heart Attack on a Plate Bakery creates signs with the original sales price of its cakes. And then slashes through the price with the sales price revealed: ‘Cookies on sale for $7.99 a pound!’ vs. $9.99. The bakery is going to try to use this type of pricing to create excitement for its baked goods. In the past, it has criticized for higher prices. The staff hopes this new pricing strategy will bring in new customers.

    New Product Pricing Strategies

    There are two additional types of pricing strategies that companies can use to introduce new products. The bakery is introducing a new line of cheesecakes. It can implement a market penetration or price skimming strategy for the cheesecake line. A market penetration strategy is setting an introductory price low to build sales, market share and profits quickly. For example, the bakery could offer its cheesecakes for a low price of $9.99 to gain customer purchases immediately. As time passes, the bakery could increase the price in small increments, if needed, to secure more profits.

    The bakery could also use price skimming as the pricing strategy for its cheesecake line. This strategy appeals to customers who are willing to pay. A premium price for the chance to try the product first. The bakery could price the cheesecakes at $19.99, and describe the rich. Imported ingredients that are used to justify the higher price. In the end, the bakery has decided to pursue a market penetration strategy because it wants a large sales volume. The bakery will offer the cheesecakes at a low price of $9.99.

    Pricing strategies ultimately affect consumers’ perceptions of products and services. Marketing managers must take into consideration the type of product, profit and consumer perception that will fuel sales. High/low, EDLP, penetration or skimming all offer marketing managers a choice in how they price their product and produce sales. Heart Attack on a Plate Bakery has decided to pursue a high/low pricing strategy. They want to offer five different bakery products a week on sale to bring in customers. And get them to try a new product. In the end, pricing is the most flexible. Way to alter the 4Ps of the marketing mix (product, price, promotion and place). Pricing can and will adjusted throughout. The life cycle of any product in order to react to the environmental changes and consumer demands.

    Do you Know Price Perception and Pricing Strategy

  • Case Study Corporate Social Responsibility of Coffee Starbucks

    Case Study Corporate Social Responsibility of Coffee Starbucks

    Starbucks Case Study; It is the world’s largest and most popular coffee company. Case Study; Since the beginning, this premier café has aimed to deliver the world’s finest fresh-roasted coffee. Corporate Social Responsibility of Starbucks Coffee, Case Study; Today the company dominates the industry and has created a brand that is tantamount to loyalty, integrity, and proven longevity. Starbucks is not just a name, but a culture.

    Case Study in Corporate Social Responsibility of Coffee Starbucks!

    It is obvious that Starbucks and its CEO Howard Shultz are aware of the importance of corporate social responsibility. We try to explain the case study of Corporate Social Responsibility of Starbucks Coffee; Every company has problems they can work on and improve in and so does Starbucks. As of recent, Starbucks has done a great job showing their employees how important they are to the company. Along with committing to every employee, they have gone to great lengths to improve the environment for everyone.

    Ethical and unethical behavior is always a hot topic for the media, and Starbucks has to be careful with the decisions they make and how they affect their public persona. The corporate social responsibility of the Starbucks Corporation addresses the following issues: Starbucks’ commitment to the environment, Starbucks’ commitment to the employees, Starbucks’ commitment to consumers, discussions of ethical and unethical business behavior, and Starbucks ‘ commitment and response to shareholders. The following Corporate Social Responsibility of Starbucks Coffee few explain below are;

    Commitment to the Environment.

    The first way Starbucks has shown corporate social responsibility is through its commitment to the environment. To improve the environment, with a little push from the NGO, Starbucks’ first main goal was to provide more Fair Trade Coffee. What this means is that Starbucks will aim to only buy 100 percent responsibly grown and traded coffee. Not only does responsibly grown coffee help the environment, but it also benefits the farmers as well. Responsibly grown coffee means preserving energy and water at the farms.

    In turn, this costs more for the company overall, but the environmental improvements are worth it. Starbucks and the environment benefit from this decision because it helps continue to portray a clean image. Another way to improve the environment directly through their stores is by “going green”. Their first attempt to produce a green store was in Manhattan. Starbucks made that decision to renovate a 15-year-old store. This renovation included replacing old equipment with more energy-efficient ones.

    To educate the community, they placed plaques throughout the store explaining their new green elements and how they work. This new Manhattan store now conserves energy, water, materials, and uses recycled/recyclable products. Twelve stores total plan to be renovated and Starbucks has promised to make each new store LEED, meaning a Leader in Energy and Environmental Design.

    LEED improves performance regarding energy savings, water efficiency, and emission reduction. Many people don’t look into environmentally friendly appliances because the upfront cost is always more. According to Starbucks, going green over time outweighs the upfront cost by a long shot. Hopefully, these new design elements will help the environment and get Starbucks ahead of their market.

    Commitment to Consumers.

    The second way Starbucks has shown corporate social responsibility is through their commitment to consumers. The best way to get the customers what they want is to understand their demographic groups. By doing research on Starbucks’ consumer demographics, they realized that people with disabilities are very important. The company is trying to turn stores into a more adequate environment for customers with disabilities.

    A few changes include: lowering counter height to improve ease of ordering for people in wheelchairs, adding at least one handicap accessible entrance, adding disability etiquette to employee handbooks, training employees to educate them on disabilities, and by joining the National Business Disability Council. By joining the National Business Disability Council, Starbucks gains access to resumes of people with disabilities.

    Another way Starbucks has shown a commitment to the consumers is by cutting costs and retaining loyal customers. For frequent, loyal customers, Starbucks decided to provide a loyalty card. Once a customer has obtained this card, they are given incentives and promotions for continuing to frequent their stores. Promotions include discounted drinks and free flavor shots to repeat visitors.

    Economy talk:

    Also, with the economy being at an all-time low, Starbucks realized that cheaper prices were a necessity. By simplifying their business practices, they were able to provide lower prices for their customers. For example, they use only one recipe for banana bread, rather than eleven!

    It doesn’t end there either! Starbucks recognized that health is part of social responsibility. To promote healthier living, they introduced “skinny” versions of most drinks, while keeping the delicious flavor. For example, the skinny vanilla latte has 90 calories compared to the original with 190 calories. Since Starbucks doesn’t just sell beverages now, they introduced low-calorie snacks. Along with the snacks and beverages, nutrition facts were available for each item.

    Also, one big way to cut costs was outsourcing payroll and Human Resources administration. By creating a global platform for its administration system, Starbucks is able to provide more employees with benefits. Plus, they are able to spend more money on pleasing customers, rather than on a benefits system.

    Commitment and Response to Shareholders.

    One way Starbucks has demonstrated its commitment and response to shareholder needs is by giving them large portions. By large portions, Starbucks is implying that they plan to pay dividends equal to 35% or higher of net income. For the shareholders, paying high dividends means certainty about the company’s financial well-being. Along with that, they plan to purchase 15 million more shares of stock, and hopefully, this will attract investors who focus on stocks with good results.

    Starbucks made its commitment to shareholders obvious by speaking directly to the media about it. In 2004, Starbucks won a great tax break, but unfortunately, the media saw them as “money-grubbing”. Their CEO, Howard Shultz, made the decision to get into politics and speak to Washington about expanding health care and the importance of this to the company. Not only does he want his shareholders to see his commitment, but he wants all of America to be able to reap these benefits.

    In order to compete with McDonald’s and keeping payout to its shareholders high, Starbucks needed a serious turnaround. They did decide to halt growth in North America but not in Japan. Shultz found that drinking coffee is becoming extremely popular for the Japanese. To show shareholders there is a silver lining, he announced they plan to open “thousands of stores” in Japan and Vietnamese markets.

    Commitment to Employees.

    The first and biggest way Starbucks shows their commitment to employees is by just taking care of their workers. For example, they know how important health care, stock options, and compensation are to people in this economy. The Starbucks policy states that as long as you work 20 hours a week you get benefits and stock options. These benefits include health insurance and contributions to the employee’s 401k plan.

    Starbucks doesn’t exclude part-time workers, because they feel they are just as valuable as full-time workers. Since Starbucks doesn’t have typical business hours like an office job, the part-time workers help to work the odd shifts. Another way Starbucks shows its commitment to employees is by treating them like individuals, not just number 500 out of 26,000 employees. Howard Shultz, a CEO, always tries to keep humanity and compassion in mind.

    When he first started at Starbucks, he remembered how much he liked it that people cared about him, so he decided to continue this consideration for employees. Shultz feels that the first impression is very important. On an employee’s first day, he lets each new employee know how happy he is to have them as part of their business, whether it is in person or through a video.

    His theory is that making a good first impression on a new hire is similar to teaching a child good values. Through their growth, he feels each employee will keep in mind that the company does care about them. Shultz wants people to know what he and the company stand for, and what they are trying to accomplish.

    Ethical/Unethical Business Behavior.

    The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and occasional unethical behavior. The first ethically positive thing Starbucks involves itself in is the NGO and Fair Trade coffee. Even though purchasing mostly Fair Trade coffee seriously affected their profits, Starbucks knew it was the right thing to do. They also knew that if they did it the right way, everyone would benefit, from farmers to the environment, to their public image.

    In the fall of 2010, Starbucks chose to team up with Jumpstart, a program that gives children a head start on their education. By donating to literacy organizations and volunteering with Jumpstart, Starbucks has made an impact on the children in America, in a very positive way.

    Of course, some negatives come along with the positives. Starbucks isn’t the “perfect” company like it may seem. In 2008, the Starbucks mobile app decided to close 616 stores because they were not performing very well. For Starbucks to close this many stores in one year, they had to battle many landlords due to the chain breaking lease agreements. Starbucks tried pushing for rent cuts but some stores did have to break their agreements.

    Other thing:

    On top of breaching lease agreements, Starbucks was not able to grow as much as planned, resulting in their future landlords were hurting as well. To fix these problems, tenants typically will offer a buyout or find a replacement tenant, but landlords are in no way forced to go with any of these options. These efforts became extremely time-consuming and costly, causing Starbucks to give up on many lease agreements.

    As for Starbucks ethical behavior is a different story when forced into the media light. In 2008, a big media uproar arose due to them wanting to re-release their old logo for their 35th anniversary. The old coffee cup logo was basically a topless mermaid, which is Starbucks’ opinion is just a mythological creature, not a sex symbol.

    Media critics fought that someone needed to protect the creature’s modesty. Starbucks found this outrageous. To end the drama and please the critics, they chose to make the image more modest by lengthening her hair to cover her body and soften her facial expression. Rather than ignoring the media concerns, Starbucks met in the middle to celebrate its 35th anniversary. Maybe you definitely understand above the information and case study of Corporate Social Responsibility of Starbucks Coffee.

    Case Study in Corporate Social Responsibility of Coffee Starbucks
    Case Study in Corporate Social Responsibility of Coffee Starbucks!