TLIL5019 - Implement and Monitor Transport Logistics
This case study and interview describe how SPAR, a leading manufacturer in the European logistics industry, established a new generation of in-vehicle management systems with three main features: stability, wireless communication, and ease of use.
February 21, 2019 · By M.D. Wang
In-Vehicle Management Systems
In the past, logistics companies had little control over vehicles in the field due to the lack of communication equipment, but as technology has developed we now have IoT, Cloud Computing, and Big Data to assist us.
Fleet management systems have also undergone huge changes in both depths of technology and breadth of application, allowing companies like Austrian SPAR to introduce state of the art in-vehicle management and logistics systems.
Industrial Grade Design with Stability and Flexibility
SPAR is a world-renown logistics enterprise-focused mainly on Europe. It owns several meat processing factories in Europe which deliver products throughout the European Union using its own freight dispatching fleet.
SPAR logistics vehicles have had IT devices installed for a long time. Initially, they used an in-car driving recorder similar to a flight recorder which was required in Europe by statute and these provided basic information for estimating a vehicle’s state if accidents occur.
The hardware for the driving recorder adopted by SPAR used a consumer brand product integrated with Android software.
However, the consumer product couldn’t take into account the entire vehicle’s usage. Conditions such as a wide temperature between summer and winter meant the lack of air conditioning put the cargo at risk of damage.
Considering the fact that equipment stability and reliability was a priority for SPAR, and that breakdowns happen frequently, SPAR had to again consider replacing the equipment with another in-vehicle system.
The main function of this replacement system was recording in-vehicle operations. Compared with the former setup, the new system performed better but still lacked networking features.
Consequently, all of the inputs for dispatching tasks and software updates needed to be uploaded and downloaded first through the company’s computers, then manually back to the devices in the vehicles. This process was not ideal and caused scheduling problems.
So eventually, SPAR approached Styletronic, an Austrian system integrator, and asked them for a third system; a new in-vehicle management and logistics system that was 100% reliable and stable, had wireless communication and had user-friendly interfaces.
Styletronic and Advantech-DLoG
SPAR’s new in-vehicle management system was a customized solution which was co-developed by Styletronic and Advantech-DLoG. Styletronic took charge of the Windows interface software and system integration, while Advantech-DLoG provided the industrial grade in-vehicle devices plus hardware in interface integration.
Before starting the design, Advantech-DLoG studied SPAR’s fleet characteristics and demands beforehand.
Due to the size of Europe, and the large amounts of cargo in transit, trailers towed by trucks caused huge vibration problems for moving vehicles. Advantech-DLoG thus adopted its PWS-770 products to solve the problem and meet SPAR’s demand for wireless transmitters and vehicle location trackers. Along with docking stations designed by its partner, RAM Mount, Advantech-DLoG built a solution that suited SPAR’s 10-inch tablet computer for its in-vehicle system.
The new in-vehicle systems provided high stability. The vibration-proof features were particularly enhanced and designed for heavy vehicle usage authenticated to military grade MIL-STD-810G specification. This saved the devices from breakdowns caused by the persistent jolting of the vehicles.
Stability, Flexibility, Ease of Use, In-Vehicle Management & Logistics System
Considering the benefits of an all-in-one mobile vehicle terminal that is also detachable, most of today’s systems fall short of the opportunity and do not tap the potential of a re-engineering of the tablet PC to connect to valuable vehicle data.
As merely one example, this type of data functionality can enable tablet PCs to send sensor data from the engine or temperature monitors for food cargo cold chain quality monitoring.
Due to the FMCSA regulation requiring ELD devices, a popular form factor for this logging is by a detachable handheld in the cab. Whether for ELD process or considering the proliferation of mobile tablets in every stage supply chain in general, there will be an increased need for that handheld device to bridge data to the partner network to convey vehicle status.
Most of today’s systems fall short of the opportunity to turn mobile tablets into a true Internet of Things (IoT) data gateway for mobile fleets.
For wireless communication, there was GPS, 3G, Wi-Fi, and GPS that served to locate the vehicles and the received location data could then be transmitted to the backend operation control centre via 3G. And if there were any dispatching problems or accidents, the control centre would have instant communication with the driver. The update of assigned tasks and operations before vehicles were dispatched was transmitted automatically through Wi-Fi.
In order to meet SPAR’s demands for an easy-to-use interface, Advantech-DLoG started with designs for common functions using a touchscreen monitor which could be operated instinctively and shortened the drivers’ learning curve.
Seamless System Fully Controls Driving Behaviours
All vans and trucks in Europe are regulated by strict laws. For example, components like engines and brakes need to be installed with in-car sensors before the vehicles leave the factory.
The data received by these sensors have to be transmitted and fully recorded by the in-vehicle system. If an accident happens, the company and the police can retrieve the data to clarify the situation and resolve any issues.
The new system needed to connect with the sensing network of the original devices, so SPAR’s new version in-vehicle system was retrofitted to all existing vehicles, and the linking and integration of the new and the original components were carefully implemented.
Currently, the mainstream communication standard on the vehicles is CAN Bus. Advantech-DLoG PWS-770 also has such ports which can rapidly connect to the in-vehicle sensing system and show the recorded information on the in-vehicle display.
The data not only allows the control centre and the drivers to fully control and supervise the vehicles but also produces big data which can analyse driving behaviours, thereby fulfilling the function of driving behaviour management, which in turn decreases the chances of risks and accidents.
Advantech-DLoG finished the installation of all 165 in-vehicle management and logistics systems for all of SPAR’s ten-ton trucks ahead of schedule.
These have been successfully operating for over a year and they not only operate well, but they are stable and adaptable system also improves SPAR’s operating efficiency, as well as reducing fuel cost by 15%. Next, SPAR’s fleets at their two factories in Hungary and Italy will also gradually introduce the same in-vehicle management solution established by Advantech-DLoG and Styletronic to help give SPAR a competitive advantage.
Credits: Article written by M.D. Wang with images provided by Advantech-DLoG and SPAR. Interview with Brian Hsieh, Business Development Manager of Advantech Digital Logistics and Fleet Management
What is IoT (internet of things)?
The internet of things or IoT can be easily explained as the latest technology in which there is a system which relates several devices and objects with the help of technology. It is the combination of several hardware and software products which are present in the system. It connects all the hardware system with the help of software. Several things which are seen for the connection purposes or the several hardware and software objects connections which are done can be easily done with the help of various software objects like the sensors which are installed in the system with the help of embedded technologies. Connection of the machines is done with the help of the internet of things and the term of transport of data from one system to another can also be done with the help of internet of things technology. Internet is used for the transfer of data.
What is cloud computing ?
Cloud computing can be explained as the modern technology which helps in the customization of the modern technology in which the tasks and works like providing different services to several computer systems and mobile phones are given through the help of one common host or network provider. Several works are done with the help of the technology of cloud computing which can be given with the help of service providing task. There are several ways through which the internet connections are established with the help of the common network provider and it can be done with the help of works which are done through several ways. It works upon the needs of the customer like infrastructure-based services are provided to the customers. Another way of providing connections can be done with the help of the platform-based service providing. The third way in which the service can be provided is the software-based service.
What is meant by the term BIG DATA ?
Another type of technology or the term which is very popularized in the modern technical world can be given as the big data. It can be termed as the technology in which there is a collection of huge amounts of data through various sources like the search engines and the working-based category which increases with a particular allotment of time. It can be disengaged with the help of all the data and information through which all the data and information can be extracted can be given with their help. No simpler databases are required for storing this large data which can be seen for the term big data. Cloud database with unlimited storage space is required and their works can be included for the working of the similar kind of data which is seen for the application of the term known as big data.
Part 1 Name three fleet management systems?
Part 2 which fleet management system would you recommend and why?
Part 1: Fleet management can be explained as the logistics term through which the transportation of material or data from one system to another and it can be done through various values. Some of the best ways to transport knowledge, information, data or materials are done through three different modules which can be given as:
• Leasing of the various vehicles is done as one of the major works for the fleet management system. In this system vehicles are given on lease to different drivers which requires the vehicles and are paid accordingly.
• Acquisition of different types of vehicles according to the needs of the workers or the drivers are also done which helps in the working of the fleet management system.
• Another way of fleet management system can be given as the supply chain management. All the supplies are given in a chain and their management is done with their help.
Part 2: As seen in the above points, these are some of the various points and the fleet management system which are ongoing in the market and they can be arranged along with the needs of the customers and the clients. According to the needs of the customers and the clients, the best management system which should be used for the working of the company workings can be given as the fuel management system. Fuel management system helps in the use of several renewable resources which would lower the use of gas and petrol to at least 15%. This helps in the working of the given product with the help of the fuel management system. Fuel management system helps in conserving the fuel for the company and this would also lower the balance sheet for the logistics company and their transport and movement can also be lower with its values which are seen for the working of the data.
What is meant by the term networking features?
Networking features can be explained as the term in which all the network systems which are connected with the help of the internet are used. Some of the given networking features which are seen for the working of the systems and computer networks can be given and explained as:
1. Speed of the communication can be arranged with the help of the networking features which are seen and organized.
2. Sharing of the files for the working of the networking features can be done with its help.
3. Backing up of the data as well as the rolling of the data is also used so that the working of the networking features is required.
4. Software works and the hardware works along with the sharing of the data as well as the networking features are required.
5. Security of the data and all the data involves working in the networking features are done with its help.
Which parts of the in-fleet management system did Styletronic develop for SPAR” S fleet management system?
The fleet in management system is one of the techniques in which there are several ways of implementation and they can be used in many different ways. One of the most important fleets in management system is that the works which are required according to the works of the company and what types of customers does the company deal on a daily basis. Some of the most used in fleet management system which are used by the companies can be given as the leasing of the vehicles and the automobiles, acquisition of the terms and the remarketing of the various automobiles and the vehicles, supply and chain block management of the various vehicles which are present, management of the fuel and the gas, services and the terms related to the maintenance of the automobiles and the vehicles, programs which are related to the safety of the different automobiles and the vehicles, response which are related to the collision of the vehicles, and the several tax giving systems like the toll allotment and the different tax paying which is done by the government for the automobiles.
The in-fleet management system which is acquired by the Styletronic for SPARS fleet management can be given as the fuel saving or the fuel management system which are seen for the works of the automobiles and the vehicles which are allotted for their workings of the system. Fuel management system helps in conservation of the gas and the fuel up to 15% and the working of the automobiles along with the economic research done by the vehicles and the automobiles can be done with its value. Fuel management system according to the data which is seen for the value and their management can be done with its help.
Which parts of the system did Advantech-Dlog develop for SPAR’S in -vehicle fleet management system?
For the transportation of the goods and the materials from one part of the United Kingdom can be done with the help of the trucks and the cars and various other automobiles. There are several ways in which the technology like the internet of things, cloud computing and big data can be used for the working of the data which is seen for the working of all the data which is seen. There are several parts which can be organized and their workings can also be aligned according to the works which are done for the system to be updated. Some of the major works which are done for the working of the data and the information can be aligned according to the use of the customers and the clients and all the drivers of the trucks. Some of the various components which can be used for the working of the given information can be given as the sensors which are installed in the vehicles for the working of the several instruments which are present in the cars and the trucks. The cool bearing system of the machine can be installed with the help of the sensors and all the tracking of the vehicles can be done. All the stops where the vehicles are stopping can be tracked by the technical workers of the company. This would help in efficient working of the truck bearing system. Lease of the vehicles can also be reduced if the trucks are installed with the works of the most probable system like the internet of things and their working capital can also be invested with the help of the major workings which are seen and their effects can also be seen according to it.
Data functionality can enable tablets and PC ‘S to send what types of information ?
Data functionality can be explained as the method through which the working of the stats is used by the several technicians in getting any type of data and information through which all the data and information can be extracted. Several scripts are written and embedded in the system of the computers and the laptops and mobile phones along with the tablets so that any kind of calculation or the systematic working of the data can be seen with its help. The inputs can be seen along with the working of the several calculations which are seen for the proper results and outcomes which are seen with their proper understanding.
For example, in this case all the information regarding the trucks and the automobiles which are gone for the transportation of the goods and materials can be organized and their works are also arranged with its help. All the major information and data which are seen for the information gathering and analysis can be aligned along with the information of the trucks and the major locations of the trucks can be seen with the help of the sensors which are present in the system of the trucks installed by the technicians and the code developers of the organization.
All the truck drivers are given tablets in which all the data including the use of petrol and the reduce in the rate of usage of the gas and petrol can be seen with the help of data functionality. This varies in several different according to the task which are performed by the truck on a particular notice. All the information regarding the working of the data usage and the gas conservation of the petrol can be given to the higher hierarchy of the company as well as the managers of the trucks.
All vans and trucks in Europe are regulated by strict laws, components like engines and breaks need to have In – car /truck sensors installed before leaving the factory? why?
Since there are strict rules in United Kingdom for the travelling trucks as their workings and all their bearings needs to be installed with proper engines and the brakes. Then the working of the major trucks can be organized with the help of the technology like the internet of things and the cloud computing so that the systematic behavior along with the working of the engines and the brakes can also be organized with the help of the modern technology which are seen and their workings are also organized with the given systematic information which are seen for their development.
Internet of things is the technology which would be very helpful in this case as automated engines and brakes can be installed in the trucks and their works can be organized accordingly. All the data and information will be sent through the sensors and their workings can be organized and most of the works can also be aligned so that there is no loss of data. In case of lost data one of the most important things which can be done is the installation of the cloud computing which would help in the storage of all the data which is seen.
Another important thing which should be installed in the system of the trucks are the sensors which helps in tracking and intaking all the information which are gathered. A sensor is set with particular value in which the speed of the truck is applied and if the speed of the truck goes over it then automatic brakes are applied on the trucks. Engine and its working can also be organized with the help of the data which is seen in the sensors and the danger of engine seizing can also be avoided following the UK norms.
Please explain what is ment by the term DIVING BEHAVIOURS.
The behavior of driving can be easily explained as the working of the various trucks of the company with the help of the various modern technologies which are seen for the working of the trucks and the logistics company. Some of the various works which are done with the working of the company establishes the driving behavior of the vehicle and their works can also be arranged and re-arranged with the help of several patterns and schemes which are learnt by the working class of the trucks and drivers.
Installation of the application was done on the system of the several truck drivers and the company for better driving behaviors which established some local norms which needed to be followed in the United Kingdom and they can be given and explained as:
1. No distraction facility was provided to the customers and the drivers of the vehicle which helped in notifying the customers that there should be no distraction while driving.
2. Use of another technology like the telematics can be done in which all the information regarding the collection of data and the analysis of data was done so that the working of the given set of data and information can also be done.
3. Drivers and the training of the drivers was also done with the help of the application and hard driving tests was also taken and their working values were also organized with its help.
4. Motivation was given to the drivers who were travelling long distances and their works were also organized according to it.
5. Alert systems were also introduced and their works were notified if any kind of unsafe driving or unsafe terrain was present for their working.
6. Policy with a safety mindset was also allotted to the workers and the drivers of the different trucks
How many vehicles had the new in-vehicle management and logistics system installed?
The new in-fleet management system in which the system of the fuel restoration and the conservation of the gas was done were implemented in several vehicles in which the working of the major works and their allotted surface data was also used. Technologies like the internet of things and cloud computing was used. Internet of things was used for making the system more progressive and their works was also arranged accordingly. The storage of data was also done in several database in which the system and the computer systems were aligned accordingly.
Sensors were installed in the vehicles which helped in the transfer of goods and information for one part of the country to another and the usage of fuel efficiently was done so that no wastage of fuel is done. Any unnecessary stops for the vehicles and the trucks were avoided so that the wastage of fuel and gas can be avoided. This helped in saving a large amount of fuel for the company. The total number of vehicles and the trucks which were required for the usage of the given technology can be numbered as 25.
What benefits has SPAR found from the in-vehicle management and logistic system?
Some benefits which are given by SPAR from the in-vehicle management system can be given as:
1. Tracking of values and the analysis of the inventory can be done with the help of the transport works which are done by the organization. Barcodes were abolished and the use of smart labels was done in the organization.
2. Warehouses which are present in the organization can be aligned and optimized with the help of the storing system can also be efficient and their works can also be increased with their help. Sensors with temperature and fire detection can also be aligned with its help.
3. Management of the fleet with the help of the sensors and the GPS system for the tracking of the vehicles was one of the most important uses which helped in tracking all the trucks which are present in the company. Behavior of the driver and the use of the fuel can both be tracked with the help of the fleet management system
4. Maintenance of the major trucks and their time was also organized with the help of the internet of things and their work value was also increased with the help of the several data types which were used by the company through time to time.
From Activity 2 after looking at the three fleet management systems and then making a choice of the best
One goes ahead and list the steps you would go through to implement this system into your company’s fleet
The different types of fleet management system which can be seen for the working of the given logistics company can be given as the leasing of the vehicles, acquired acquisition of the vehicles and the trucks which are present in the company, remarketing of the trucks and other brand values, supply and block chain management of the different workers and the drivers of the company, management of the fuel and gas for the organization, and the predictive maintenance of the company and the organization.
The most used and the effective fleet management system which we would apply in the firm can be given as the fuel management system which tracks all the vehicles and the total amount of fuel which is consumed by that particular vehicle. This helps in giving all the fuel monitor system to the given working class of the managers as well as the major working of the trucks and the drivers through one destination to another. This helps in guarantying the effective use of all the fuel in the truck and thus the use of extra fuel is avoided. All the major use of the fuel and natural resources can be reduced with the proper application of the fleet management system.
BUSI 1591 Leadership, Professional Development, and Career Management Assignment Sample
You are required to write a 3000-word (+/-10% excluding references) essay based on the concepts and theories of leadership, career management, and professional development covered in this module. Your preparation for and participation in the weekly workshop will help you form a foundation for your assessment with informal feedback from you tutor. You are required to answer the questions below by drawing on conceptual insights and empirical research evidence from 10 academic journal articles in an analytical manner. You can also refer to professional publications for assignment help (i.e. CIPD; CILT) and reputable news outlets listed below to set the contexts for your arguments and discussions.
You essay must focus on leadership and competence in the context of or a sector related to logistics/supply chain management and/or transportation. Please choose a specific context/sector that fits with your career goal in the next three years, which make researching for and writing his essay beneficial to you personally, academically, and professionally. The content of your essay must answer and discuss all of the following questions analytically and critically.
1. What does leadership entail in in the context of logistics/supply chain management and/or the transportation sector?
2. What key challenges and opportunities does the chosen sector/context currently face?
3. What is the labour market outlook of the chosen sector/context in the next three years?
4. What are the implications of the identified challenges and opportunities for leadership and leadership development in the chosen sector/context?
5. What are the implications of labour market outlook and the identified challenges and opportunities for career management in the chosen sector/context?
6. What professional competences in the chosen sector/context are important in the current labour market outlook and in relation to the identified challenges and opportunities?
Your learning journal must follow a structure according to the order of the questions above. The word count is an approximate suggestion. You are allowed to adjust it -/+ 10%.
Introduction 250 words
Outline the key objectives of this essay, including the sector/context, sectoral challenges and opportunities, labour market outlook, and relevant concepts of leadership, career management, and professional competence.
• Describe a specific context/sector in relation to logistics/supply chain management and/or transportation by using evidence such as reliable statistics to support the market value (refer to academic journal articles and/or professional publications and/or reputable news outlets).
• Identify the key challenges and opportunities that this specific sector/context currently faces (refer to academic journal articles and/or professional publications and/or reputable news outlets).
• Analyze the labour market outlook of the chosen sector/context in the next three years or further (refer to academic journal articles and/or professional publications and/or reputable news outlets).
Supply chain leadership/leadership in transportation or xxx sector 1000 words
• Define leadership in general (refer to academic journal articles)
• Define the chosen sector/ context (refer to academic journal articles and/or professionalpublications)
• Discuss the implications of the challenges and opportunities identified in the previous section for leadership and leadership development in the chosen sector/context (refer to academic journal articles and/or professional publications).
Career management 1000 words
• Discuss the implications of labour market outlook and the identified challenges and opportunities for career management in the chosen sector/context (refer to academic journal articles and professional publications).
• Identify important professional competences in the chosen sector/context in the current labour market outlook and in relation to the identified challenges and opportunities (refer to academic journal articles and/or professional publications and/or reputable news outlets).
Conclusion 250 words
Summarise the essay succinctly, logically, and clearly with a focus on leadership and professional development (no more new info).
Sector- Automobile Company- Tesla
Leadership is an art based on the motivation of people or a group of people that focuses on the action and activity towards achieving any mission or goal for the enhancement of the business setting. Moreover, the focus on the act of directing people or motivating them to initiate any work is the major principle of leaders. In this section, the role of the leaders in supply chain management is based on integrated management of both the people as well as of the logistics system. Moreover, the growth of the automobile industry is based on the differentiation of clear sales as well as of managing the growth of the company. These structures are essential for the development of appropriate supply systems in the industry. The business leadership skill and knowledge development are an essential area of study where the supply chain management keeps an eye on the development of the industry and its supply. In order to elaborate the study as well as understand the context of the growth of business in the Automobile industry with reference to the leadership in the supply chain management, this essay is based on the identification of the supply chain management in the context of growing business of Tesla Inc. This enhanced structure focuses on two basic points: leadership approach and the context of career management. In addition to this, the labour outlook market, challenges and opportunities of Tesla Inc. is focused. This essay is also based to focus on the insight of focusing on several challenges such as consumer uncertainty and the demand of the diesel, which can affect the supply chain life cycle of the products of Tesla Inc.
Automobile industry is one of the huge sectors of the market and business sectors that is only based on the context of designing, manufacturing, and maintaining the sales of the automobile. For reference to the context of the growing scenario, the development of designs for vehicles such as cars, buses, trains and many more comprises under the huge branch of the automobile industry. In the current scenario, the market value of the Automobile industry is $16.16-16.8 trillion that is estimated to increase thrice by 2026. Moreover, the opportunity in the complete automobile industry is increasing as the scope of both direct as well as indirect employment is increasing with growing innovation. Moreover, the management or repairing or renovation of the vehicles is not a part of the automobile industry. In this section, Tesla Inc. is an American electric vehicle and clean energy-based company that has its headquarters at Palo Alto in California. The innovation of the company is based on displaying the supply of the electric cars, battery energy storage from to grid scale, solar panels, solar roof tiles and many more. The company was founded in July 2003 in the name of the tribute to the electrical engineer Nikola Tesla. The contribution of the early days has developed the business to a new extent. In this portion, the leaders of the company such as Elon Musk, Robyn Denholm, Drew Baglino and Zach Kirkhom are focusing on the enhancement of the company. Moreover, there are various challenges as well as opportunities based on the revenue, operating income and total assets. Thus, the company is based on the production of electric vehicles such as Roadster, Model S and Model X SUV. The structure of these cars was based on sedan and SUV in order to enhance the design of comfortability of the person.
The major challenges that the automobile industry can be seen with are the emission issues that are a growing headache for the car firms. At this point, Tesla is also facing energy issues where the company focuses on the context of developing energy through batteries and many more. The developing demand of electric cars as well as meeting the demand within the cost range is the greater obstacle for Tesla Inc. In addition to this, 73% of the vehicles transformed to develop 1.3 million units of electric charges. This scale is huge and hence the fraction of cars demand is an obstacle for the business.
Tesla Inc. is developing designs for the future system of the cars where the models of Tesla are termed as S3XY (or SEXY) that infers the model S, 3, X, and y of the company.
Figure 1: Future models of the cars in Tesla
(Source: Ahmad and Khan, 2019)
The above figure shows the ahead step movement of the Tesla gives opportunity for expansion in an untapped market, reduce the cost or make the car more convenient, Battery production can be made in-hand, and many more.
Labour Market Outlook
Labour market outlook are referred to as the trends of the employment rate in the business market. The automobile industry needs are continuously growing as the rate of employment in both direct as well as indirect market is increasing. The changing innovation as well as upbringing of the automation or robotics has affected the employment ratio of companies such as Tesla. The working principle of companies are based on developing the organisation as per the demographic need (Schniederjans, et al., 2020). In this approach, the business growth as well as employment is an issue that requires effective training, skills and development. It is estimated that 80% of the jobs in the automobile industry will be completely based on the review of occupation and skills.
Leadership in context of logistics and supply chain management
Supply chain management is defined as a network of organisations that involves the downstream as well as upstream linkages in several activities and procedures in order to produce the valuation in any form of products and services. In this portion, a typical automobile industry also focuses on the supply chain with effective development on meeting the demand as well as supply ration. It mainly comprises the network or the smaller supply chains that are attached with the possession of their own separate characteristics. It can be easily explained with help of the diagram as given below:
Figure 2: Supply chain management and logistics
(Source: Bilbeisi and Kesse, 2017)
The above figure suggests the complexity of the automotive supply chain that can be largely focused with the fact that a typical vehicle comprises more 20,000 components or parts. In addition to this, about 1000 modules or sub-assemblies are attached to the system so that the vehicle can function properly (Habib et al., 2020). The multitude mainly involves three tiers named as Tier 1, tier 2, and tier 3 of the manufacturers or suppliers that focus on controlling the sales or dealership of the assembly of the operations. The level of demand is huge on the part of customers for several specific features that configuration contributes to the huge level of response that is needed for the automobile industries to meet the supply chains and hence portraying the correlation between the quality of conformance of the design as well of the Supply chain management (SCM).
The SCM is based on the tailoring of the specific requirements of the products being manufactured. In addition to this, specific ownership to the acute complexity within the automobile industry that arises with the need of part of the automaker in order to contend with the management of large networks that comprises the number of supply chains. In addition to this following trend of the automobile industry affects the supply chain as explained in the table below:
Trends in the Demand Trends in the Supply
? The growth is uneven
? Importance of the market after demand
? Volatility is accelerated
? The source cost of the country is low
? The outsourcing is differentiated
? Accountability as well as transparency should be maintained.
? The management should be on risk assessment.
Table 1: Trends that affect the supply chain management.
(Source: Kumar, et al., 2019)
As per the above table, it can be seen that the micro-economic cycle of the growth is based on the pattern of recovery as well as on the contradiction. This tends to create a strain upon the effectiveness that is based on the establishment of the supply chain in the complete sector of the automobile industry and that establishes a large network of the supply within every industry. Leaders are an essential part of this logistics and supply chain management where their aim is to keep the sales at high range as well as develop the organisation at better as well as gather strength in the market. The leadership is based to capture an essential portion of being able to remain prepared in order to motivate people so that the company can effectively focus on the development of the sales (Khan and Ahmed, 2019). In addition to this, effective development is based on the context of ideas and innovation that helps the people to engage as well as communicate within each other so that they can act as per the reference of the leaders. The references of the growth is highly based on the effective scale of the leadership skills where the supply chain management in the companies such as Tesla Inc. is dependent on the ratio of effective innovation and sequence of managing the energy conservation as per the idea of Elon Musk. In addition to this, the leadership needs to focus on the reference of growth in the logistics as well as in the SCM so that the operations can be effectively completed. Moreover, each SCM is based on the vendor development as well as concentrates on the ‘job filler’ so that the employment as well as sales can be effectively managed in the long run.
Challenges and opportunities of the Tesla Inc. associated with logistics and supply chain management
Tesla Inc. is the future of cars and motors that is facing several challenges as well as is appearing to get opportunity for development in the future. Moreover, challenges and opportunities are the two sides of the automobile industry as the changes appear in the development of the business. Moreover, the aspect of the business is based on the approach of the leaders of Tesla Inc that focuses on enhancing, motivating, and initiating a path for the development of the business. The major challenges and opportunity of Tesla Inc. can be stated as the following table:
The liability of the products are low and the people are focusing on the premium quality and assurance that can affect the business The sales in the market is completely untapped as well as growing in the market with low competitors.
Automobile industry is full of competition as well as self-driving competition can affect the business of other automotive businesses such as Mercedes. The company needs to focus on the development of less expensive cars so that the person can easily focus on the reducing the sales cost`
The highly complex innovation requires complex structure of the engineering that leads to the issue in the products. The energy production system must be focused on the development in-house so that the people can effectively charge the vehicles at the house reducing the charging cost.
Table 2: Challenges and opportunities of Tesla Inc.
(Source: Kim, 2020)
The above table hence explains the need of supply chain management and effective leadership so that these challenges can be turned into new opportunities. Moreover, the aspect of development of business is based on the concept of specific or common goal motivation that is followed by the leaders. Focusing on the above scenario, the challenges and opportunity of the automobile industry.
Career Management in Tesla Inc.
Implications of Labour Market Outlook
The labour market outlook is based on the explanation of the trends of the employment that is growing in the coming scenario. In this aspect, the growth of the business of the automobile industry is based on the aspect of innovation and decision making scenario, where the workers need to focus on the utilisation of the motivation, ideas and opportunities so that the demand and supply can be easily managed. In this aspect, Tesla Inc. welcomes all forms of innovation that are based on the aspect of energy conservation. In addition to this, an automobile industry comprises designing, manufacturing and selling the products. These employments are considered under the aspect of direct employment (Banana and Shaik, 2017). However, the repairing, renovation and others management are not considered a part of the industry and this develops an indirect path of the business development. Here, mainly labourers are appointed on the basis of the need of repairing and does not require any sort of innovation to think of new ideas. Every year, the opportunity increases by 1% that affects the labour market trends of the Tesla Inc. in the global market. This structure of the development is concerned with the effectiveness of employing the people to meet the demand of the supply chain management.
Identification of the Challenges and opportunities for the career management in the Automobile Industry
Career management is an essential point that is based on the employment as well as developing the activity of work culture in the automobile industry that can be effectively obtained. Moreover, the analysis of career management explains that the industry sector is highly important, which can effectively help to develop and identify the contact challenges and opportunities of the companies such as Tesla Inc. Career management is based on various aspects, where people especially focus on the business administration career. The courses basically focus on the scenario of logistics and supply management. It is one of the essential parts of business literature. In this aspect, the scenario of the huge demand in the business section is increasing where the automobile industry is more focused towards the development of the company (Mathivathananet al., 2018). In this point, skill based opportunities are emerging more than the course based opportunities since, the organisations are more focused on the Talent and performance skills. Tesla is emerging its wings towards the devel;opment of the future cars. These emerging skills of talent and innovation are essential and this is a great story of both challenge as well as of the scenario of opportunities based on which the demographic demand and supply can be managed.
However, the introduction of artificial intelligence has reduced the demand of labour in the market. This is a serious challenge as the growing section of business impacts on the demand ratio. Moreover, the recruitment is completely the decision of the leaders and thus the scenario of activity based on the supply chain is essential for the people. Thus the career management is based on the huge branch of business administration where adequate knowledge as well as understanding of the automobiles, machineries, innovation and many more. This is a huge field of innovation and decision and hence challenges of demand and supply are attested to it.
The capability of an individual in order to complete its duty or work is termed as the professional competence. In addition to this, a profession in the automobile industry is based on the performance quality that is provided by the person in any business infrastructure within the automobile industry. This is a serious point, where every capacity of the people and the quality of the work varies that can make a huge difference in the supply chain management at Tesla Inc. Tesla hence believes on quality control and quality comptonization is a serious issue that is not controlled in the company (Bilbeisi and Kesse, 2017). Thus, the impact of any business innovation can be seen in the professional competency. In addition to this, the professional competency is provided within Tesla Inc. in order to produce talent as well as better scholars for the organisation. These skills training is provided so that the skills can be easily developed and grow as per the need of the demographic. This is essential to maintain creativity and demand supply.
Relation of the professional Competency with the challenges and opportunities
Professional competency is based on maintaining the path of development in the organisation. Competency is based on managing the challenges and being ahead of the opportunities. Moreover, the impact of challenges and opportunities can be seen in the professional scope of Tesla Inc. This professional competence is managed with proper training as well as on a scenario of establishing the business for future. Every long-term investment is based on mitigating the challenges as well as on the development of new strength from the challenges.
The above discussion on the leadership and career management in context with the automobile industry as well as explaining the importance of logistics and supply management where the leaders and their performance matters a lot. Moreover, the context of Tesla Inc. confirms all the information where the essential aspect of supply and logistics management is based on the development of innovation so that the business can instantly earn the demographic demand. This sequence is essential where the automobile industry and their leaders focus on the context of managing the demand of the people. This aspect is very huge as the growth of the business is based on the point of providing ethical design and improvement so that the long-term investment can easily arise in the context of leadership development. Moreover, career management is the major point of Tesla as innovation is the mother of invention that is generated by the mind of humans. However, the automobile industry is based on the fact that the direct and indirect employment of the people. In addition to this, the annual turnover of the automobile industry is more than Euro 1.1 billion. Moreover, the changes in the leadership provides the path to the business as well as develops the business so that it can manage the supply chain management effectively.
Ahmad, S. and Khan, M., 2019. Tesla: Disruptor or Sustaining Innovator. Journal of Case Research, 10(1).
Banana, D.K. and Shaik, D.M., 2017. An assessment of career development and executive development activities in automobile companies. International Journal of Current Research, 9(10), pp.59010-59013.
Bilbeisi, K.M. and Kesse, M., 2017. Tesla: A successful entrepreneurship strategy. Morrow, GA: Clayton State University.
Habib, T., Kristiansen, J.N., Rana, M.B. and Ritala, P., 2020. Revisiting the role of modular innovation in technological radicalness and architectural change of products: The case of Tesla X and Roomba. Technovation, 98, p.102163.
Khan, M.A. and Ahmed, S., 2019. Can Innovation in Sustainability be a Sustainable Competitive Advantage?
Kim, H., 2020. Analysis of how Tesla Creating Core Innovation Capability. International Journal of Business and Management, 15(6).
Kumar, A., Mangla, S.K., Luthra, S. and Ishizaka, A., 2019. Evaluating the human resource related soft dimensions in green supply chain management implementation. Production Planning & Control, 30(9), pp.699-715.
Mathivathanan, D., Kannan, D. and Haq, A.N., 2018. Sustainable supply chain management practices in Indian automotive industry: A multi-stakeholder view. Resources, Conservation and Recycling, 128, pp.284-305.
Schniederjans, D.G., Curado, C. and Khalajhedayati, M., 2020. Supply chain digitisation trends: An integration of knowledge management. International Journal of Production Economics, 220, p.107439.
Customer Experience Strategy Assignment Sample
Coursework FORMATIVE Assessment Brief
Submission mode: Turnitin online access
1. General Assessment Guidance
• Please note late submissions will not be marked.
• You are required to submit all elements of your assessment via Turnitin online access. Only submissions made via the specified mode will be accepted and hard copies or any other digital form of submissions (like via email or pen drive etc.) will not be accepted.
• For coursework, the submission word limit is 1,000 words. You must comply with the word count guidelines for assignment help. You may submit LESS than 1,000 words but not more. Word Count guidelines can be found on your programme home page and the coursework submission page.
• Do not put your name or contact details anywhere on your submission. You should only put your student registration number (SRN).
• You are required to use only Harvard Referencing System in your submission. Any content which is already published by other author(s) and is not referenced will be considered as a case of plagiarism. You can find further information on Harvard Referencing in the online library on the VLE. You can use the following link to access this information: http://bpp.libguides.com/Home/StudySupport
• BPP University has a strict policy regarding authenticity of assessments. In proven instances of plagiarism or collusion, severe punishment will be imposed on offenders. You are advised to read the rules and regulations regarding plagiarism and collusion in the GARs and MOPP which are available on VLE in the Academic registry section.
• You should include a completed copy of the Assignment Cover sheet. Any submission without this completed Assignment Cover sheet may be considered invalid and not reviewed.
2. Assessment Brief
You are required to write a 1,000-word report on the customer experience (CX) strategy of Samsung for their mobile phone product lines. You should base your report on the analysis of their CX strategy in one specific country in which they operate, which you must identify in the introduction to your report.
You should write your report for the Board of Directors. Within the business report, reference should be made to relevant CX concepts, literature and application as appropriate. Only use tables to answer the requirements where it is suggested to do so.
• Learning Outcome 1 - Appraise the importance of customer experience for the success of the business.
• Learning Outcome 2 - Design and implement a customer journey mapping process, persona creation and measurement metrics.
You need to address the following tasks:
1. The importance of customer experience (10 marks): you should define and explain what is meant by and included under the term customer experience. Appraise the importance of CX in the case of Samsung mobile phones. (Suggested word count: 330 words.)
2. Customer journey (7 marks): explain what a customer journey is and why it is important to CS strategy, including the purpose of each of the main elements: journey stage, activities, feelings and needs. (Suggested word count: 230 words.)
3. Persona creation (15 marks): explain what a consumer persona is and evaluate its role in developing effective CS strategy. In application to Samsung identify and justify three key, different consumer personas. Select one of the three consumer personas and for this persona provide the following elements in a visual format (table or graphic):
a. Demographics and story
c. Motivations for using a Samsung mobile
d. Goals for using a Samsung
e. Pinpoints a Samsung mobile solves
4. Mapping the customer journey (8 marks) In relation to your most significant consumer persona identified in task 3, using a table, map their customer journey. This should include the following:
a. Stages of journey
c. Feelings and needs
d. Potential opportunities for improvement
5. Presentation (5 marks): present your report in a structured and professional manner using
Harvard referencing guidelines.
A 1,000-word business report to the Board of Directors of the company, in the capacity of a CX
strategy consultant suggestion:
Samsung agreed to create a splash for release of a new brand, via an ambitious customer experience template, as the London 2012 Olympics approached. (Jung, 2014) Samsung Mobile had depended largely upon third-party suppliers to get its products to market across the globe, but now it decided to strengthen its position of leadership by creating direct interactions with its customers through a relevant experience. Vivaldi Team served as chief tacticians and arrangers of this initiative to identify a clear vision, approach, and push strategy for the emerging store model, which included various agencies and client stakeholders.
Importance of Customer Experience
Customers' perceptions of their experiences with the organization are defined as customer experience. From the customer's perspective, a good approach should really be effective, functional, and satisfying. Customer experience (CX) of Samsung is highly recommended.
? Samsung looks at corporate clients from outside in, through the perspective of their clients, as customer experience professionals. As a consequence, then learn from consumers in a variety of sectors, including B2C and B2B, sales, finance, innovation, and many others.
? Today, even more than before, customer satisfaction is very important. Surpassing the customers' needs starts with a good consumer experience. Samsung must be specific, reliable, and deliver the quality they promised to its customers. The chance is in the capacity to achieve on certain promises while still surprising the consumer with special help and support (An et al. 2018).
? To meet customers' needs, the key aim is to build a satisfying customer experience amongst all aspects of the company. Samsung ensures that assurance of a good experience is maintained and also that they deliver excellent service by tracking the existing business processes.
? Clients who are fresh to a store are far more prone to become loyal. Samsung develops an experience for the customers which excites them and guarantees that they will do trade with the company anyway. For any form of enterprise, a supreme experience would become a valuable and rare advantage.
? Samsung is making an advocate from every user by concentrating on building outstanding client relationships and embracing the urge for the company to exceed expectations.
A customer journey diagram is a tool that depicts the customer's experience (also known as the purchaser's or recipient's journey). It enables everyone to paint a picture of the consumers' interactions with the product through all channels. Whether the buyers communicate with you via social networking sites, email, chat service, or several other platforms, visualizing the customer journey ensures that no one falls through the gaps (Hollebeek et al. 2020).
Consumer journey mapping is vital for improving customer experience since it is a systematic approach for better understanding customer requirements. Personalization is among the most critical elements of a consumer experience. (Ruiz et al. 2020) According to recent studies, 84 percent of customers agree that just being viewed as an individual instead of a statistic is essential to winning the customer. Customer journey mapping enables Organizations to create personalized journeys for each consumer throughout all aspects of the company and platforms. The following are some of the advantages of illustrating the consumer journey:
? Providing you with the opportunity to improve the employee ordering phase.
? Optimizing the consumers' ideal customer satisfaction against what individuals currently get.
? Recognizing the variations in target customers as they progress through purchasing process from possibility to transition.
Stages - the three stages of journey are - knowledge, considerations and actions.
Activities - activity is to support the brand in expressing its emerging technologies.
Feelings and needs - Feeling plays an important role in any customer experience, with clients experiencing both subjective emotional responses.
A consumer persona (often recognized as a customer group) is a semi-fictional stereotype based on information from user analysis including online advertising that reflects the core characteristics of a wide segment of the population. It allows one to see what certain future clients are feeling and will do as they consider different solutions to problems they're attempting to solve. The Buyer Personality Institute's president, Adele Revella, explains it all this way.
Consumer persona in customer strategy-
? Provide as much information as possible - More and more knowledge you have, the much more accurate your image of your target client will become. A far more detailed sketch aids you in defining and solving more issues for this client, as well as refining your presentation to convey how you would assist.
? Consider where the consumer is in the buying process. - One who is still looking for answers, or somebody who is only familiar with business terminology and principles, require a new approach than those who have already transitioned (Verhoef et al. 2009).
Financial institutions are becoming a more fast-paced, consumer-oriented industry as a result of digital technology. For various finance, insurance, and capital structures, global consumers are quickly embracing and implementing use of robo-advisors as well as other digital services.
The three different consumer personas in Samsung are – the value hunter, the brand devotee and the researcher.
A brand aficionado is a devoted supporter of the brand. Individuals are extremely knowledgeable about the brands, to the extent that they will be frequent buyers and personal shoppers.
Brand Devotee persona
Mapping the customer journey
While the performance, layout, and technical requirements of electronic products are important factors in a customer's purchasing decision, advertising strategies and techniques have a significant effect on existing and emerging customers' perceptions. Samsung's desire to be a worldwide leader in the smartphone industry is bolstered by its research & design investments.
An, J., Kwak, H., Jung, S.G., Salminen, J. and Jansen, B.J., 2018. Customer segmentation using online platforms: isolating behavioral and demographic segments for persona creation via aggregated user data. Social Network Analysis and Mining, 8(1), pp.1-19.
Hollebeek, L.D., Clark, M.K., Andreassen, T.W., Sigurdsson, V. and Smith, D., 2020. Virtual reality through the customer journey: Framework and propositions. Journal of Retailing and Consumer Services, 55, p.102056.
Jung, S.C., 2014. The analysis of strategic management of samsung electronics company through the generic value chain model. International Journal of Software Engineering and Its Applications, 8(12), pp.133-142.
Ruiz, E.H., Restrepo, C.A.P., Lopez, C.A. and Kee, D.M.H., 2020. Samsung: Customer loyalty strategy in Malaysia and Colombia. International Journal of Accounting & Finance in Asia Pasific (IJAFAP), 3(2), pp.57-67.
Verhoef, P.C., Lemon, K.N., Parasuraman, A., Roggeveen, A., Tsiros, M. and Schlesinger, L.A., 2009. Customer experience creation: Determinants, dynamics and management strategies. Journal of retailing, 85(1), pp.31-41.
MOD003353 Business Environment Assignment Sample
Assessed Learning Outcomes:
Identify the financial and ICT issues for key business functions.
Appraise and recognize use of corporate governance and ethics within a business context.
Word Limit: 2500 Words
WRITING YOUR ASSIGNMENT:
• This assignment must be completed individually.
• You must use the Harvard referencing system.
• Your work must indicate the number of words you have used. Written assignments must not exceed the specified maximum number of words. When a written assignment is marked, the excessive use of words beyond the word limit is reflected in the academic judgement of the piece of work which results in a lower mark being awarded for the piece of work (regulation 6.74).
• Assignment submissions are to be made anonymously. Do not write your name anywhere on your work.
• Write your student ID number at the top of every page.
• Where the assignment comprises more than one task, all tasks must be submitted in a single document for assignment help
• You must number all pages.
This is a 2,500-word assessment and it consists of two tasks.
You are required to write 1250 words on each of the two tasks. Each task is 50% of the total marks for this module. Therefore, you must attempt both tasks.
ASSESSMENT TASK 1: (1250 words)
ASSESSMENT INTRODUCTION - TASK 1
“Innovation is increasingly seen as a key strategic priority due to its potential to create sustainable competitive advantage. Innovative organizations are more able to mobilize the knowledge, skills, and experiences of people, and create new products, services and processes successfully to get things done faster, better and at a lower cost. When customers buy the outcome of innovations, companies increase their turnover.” (Cole and Kelly, 2015).
ASSESSMENT TASK 1:
A. Assess the impacts of innovation and technology and how it has affected the sales, profits and growth of one of the following companies.
1 Future Plc
2 Network International Plc
3 Next Plc
4 Page group Plc
5 TUI Plc
• Knowledge and understanding of technological innovation
• Understanding of the relationships between innovation and economic development
• Abilities to appreciate the role of technological change in economic progress
• Identify the financial and ICT issues for key business functions
POINTS TO CONSIDER:
1. Demonstrate your understanding of innovation and the role of technological change in economic progress.
2. A brief overview of your chosen company and practical illustrations of how innovation has impacted the operations, sales and the profits of your chosen company.
ASSESSMENT TASK 2: (1250 words)
ASSESSMENT INTRODUCTION TASK 2:
Corporate Governance specifies the distribution of rights and responsibilities among different participants in the company, such as the board, managers, shareholders and other stakeholders. (Source: OECD April, 1999).
Corporate Social Responsibility (CSR) is “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (Source: World Business Council for Sustainable Development).
ASSESSMENT TASK 2:
A. Evaluate the importance of Corporate Social Responsibility (CSR) for the same organization of your choice in Task One above.
B. Apply Archie Carroll’s (1991) CSR model to your chosen organization.
• Knowledge and understanding of corporate governance.
• Abilities to appraise and recognize use of corporate governance and ethics
within a business context.
• Understanding of the importance of Corporate Social Responsibility (CSR).
• Understanding of a CSR model (Archie Carroll’s model) and its practical applications.
POINTS TO CONSIDER
1. You must briefly discuss corporate governance, including the responsibilities of the Board of Directors to the stakeholders.
2. Explain the four areas that make up corporate social responsibility as identified by Archie Carroll. (1991). Apply this model to your chosen company. Please give relevant practical examples to demonstrate your understanding of this model.
Innovation and technology are the two aspects that have a significant effect on the economic development of today's business world, both in the nation and globally, as well as corporate social responsibility, which each organization can embrace in order to grow a reputable company and a large business. This report seeks to describe what technology and innovation imply, and how the two variables will impact the business situation in a dynamically growing sector, as well as how companies respond and what is the appropriate corporate social responsibility approach that they could implement to become a trustworthy employer, a respected label, and company, while steadily developing their strategies in alignment with the stakeholders' and market demand.
The two factors of innovation and technology were described in the first part of the study. Innovation is the process of increasing the quality and lowering the prices of a company's products and services while maintaining a competitive benefit. Technology, on the other hand, is the science that is used to generate profits (Schiederig et al., 2012). A few instances of innovation and technology are provided to demonstrate the effect that these two components have on the economic environment, as well as how revenues have improved when an organization has developed and implemented technological advances.
The second section of this report defines CSR and explains how a business can be managed by following a set of standards and practices that ensure the board of directors is responsible, equitable, and open in all of their dealings with all of their investors and partners of the company. The Archie Carroll pyramid is one of the three most effective CSR principles, and it is demonstrated in the corporate environment with a case study of the chosen organization of the report, which is, Next PLC.
Innovation and Technology
The term "technological innovation" refers to a broader definition of the term "innovation." While innovation is a very well-defined term, it has a wide range of meanings for many people, particularly in the education and corporate worlds.
Innovation is described as taking extra measures in creating new goods and services for the industry or the public in general that resolve unmet needs or address conflicts that have not been solved previously (Williamson et al., 2013). Technical innovation, on the other hand, emphasizes the technological features of the commodity or system rather than the overall marketing strategy of an enterprise. When describing the technology, it's important to consider how society actually categorizes it, whether it's scientific progress or general advancements in resources and machinery that help everyone live better lives. Technology is a compilation of techniques and methods that systems use in order to gain comprehensive information. This is fueled by creativity, which is the philosophy that describes how and when technological innovation emerges, as well as how ideas evolve, whether for individuals or companies.
Role of technological change in economic progress
Technology is constantly evolving and updating, particularly when it comes to machines and the programs that run on them. The Internet of Things (IoT) is one of the most common technological developments. This is the point at which the world will endeavor to link all technological devices to the internet in order to achieve the perfect combination between the physical and digital worlds (Huang et al., 2016). The role of technology will vary depending on the sector. IoT will have a piece of the data on how customer interaction with their goods impacts them. Examining their digital experiences will reveal this. This information can also be used to improve marketing strategies and customer experience, giving a particular company a head start on advertising new and current products.
Direct job growth, new services and sectors, workforce change, and company innovation are four indicators of how technology and innovation have influenced the industrial development of the nation.
? It all begins with the development of jobs, as this indicates that there is still service or sector that can expand and generate wealth in this country. ICT industries are the biggest shareholders, and they are developing and will continue to expand as they allow the launch of new businesses, such as Facebook, where one can promote both existing and new businesses (Berger et al., 2016).
? Workforce transaction enables established businesses such as Amazon and Upwork (formerly oDesk) to break down their roles into specific fragments that can be subcontracted to contractors.
? Business innovation aids businesses in modernizing business operations and improving productivity. ICT has linked devices all over the world, opening up a slew of new opportunities to support businesses and consumers by allowing them to enter locations they couldn't before.
? Business companies use social media to implement emerging innovations in their operations. Since it covers over three-quarters of the globe, this is by far one of the most important marketing strategies for small and midsize enterprises.
Innovation and Technology used by Next PLC
Next plc is a British international retailer of clothes, accessories, and home goods with head office in Enderby, England. It has approximately 700 stores, with approximately 500 in the United Kingdom and approximately 200 in Europe, Asia, and the Middle East. Next is the UK’s leading fashion retailer by revenue, having surpassed Marks & Spencer in late 2012 and mid-2014. It has own-label goods that are delivered from its fulfillment centers and are localized through mobile and web interactions (Wigley, 2012).
Impact of Innovation on Operations, Sales, and Profits at Next PLC
In 1864, Joseph Hepworth established the business as a designer, and it was known as Joseph Hepworth & Son. Hepworth began his career in collaboration with James Rhodes, however, the collaboration ended in 1872. Hepworth quickly enlarged the business on his own and became a forerunner in the creation of retail shops in the United Kingdom. Later, the company changed its name to Next PLC and now the business is led by Simon Wolfson, who is the CEO of the company (Volná, 2012).
There are numerous possibilities within technology that can lead to new and creative ways of improving how the company operates. This will drastically reduce contact, ordering, and late deliveries, eliminating the need for prolonged conferences or phone calls to resolve minor issues (Ganda, 2019). These are often carried out through conferences, which may take place in various countries and require a significant amount of time and money to arrange. Smartphone advances in recent years have allowed web-based conferencing. They necessitate strong internet connectivity as well as a camera so that companies can access and collaborate online. This saves a lot of money and benefits the organization while still allowing those involved to see what's going on. The following practices are being used to achieve these goals:
? Communication: It is extremely crucial for the success of any company. Companies still use phones as a necessity, with the most popular phone being a Smartphone, which allows the user to access the network, business apps, and emails while on the go and in the form of a compact portable gadget. Large companies might stay linked to their employees and consumers via text messages, networking sites, emails, and other contact apps, which can provide additional channels for advertising and fast responses.
? Software and Hardware: Next requires hardware and software components that enable them to manage and gather information in seconds, as well as the ability to verify with each team, which will improve stock management and data analysis while freeing up workers to concentrate on revenue-generating activities. Next would also benefit from Information and Communication Technologies (ICT) because they are distributors and even use barcode technology to monitor inventory and sales. They use smartphone barcoding apps to analyze actual information, which significantly improves buying and helps them to monitor stock levels (Danquah&Amankwah-Amoah, 2017).
? Security: Next places a premium on security since they need credit card information to make purchases. Since most leading organizations are vulnerable to security attacks and malware, using technology to secure sensitive and financial information will give rivals and online scammers an opportunity. With the protection of passwords, consumers can maintain their details secure. Regrettably, hackers may use technologies to circumvent these measures and gain access to this information. Firewalls, which have been security measures that check outgoing and incoming network traffic, will prohibit this. Firewalls have been around for over three decades and serve as a shield between unreliable external networks and the inside network.
? Research: Investigation is also beneficial to Next because it provides the designers with a broader variety of merchandise to ensure that they are not slandering other manufacturers' designs. Consumers must compare several different opinions, and the worldwide web (www) has a multitude of details, so it also allows the user to search other major retailers to match the prices of the products they desire.
Rising awareness about internet information and the risk to its confidentiality have necessitated the adaptation and development of new innovations to assist with information retention and also to be obedient to the law (Trott& Simms, 2017). Companies are being forced to make significant investments in digital innovations to guarantee they are not only complying with legal enforcement requirements but also to provide an assurance of protection to their customers. If Next invests in people and fresh ideas, they will become one of the major international companies with the growth of iOS, email, and fax.
A framework of policies, laws, and procedures used to manage a company is known as corporate governance. Corporate governance is the process of balancing the needs of a corporation's various stakeholders, including administration, vendors, consumers, investors, public financiers, and the general public. Since then, “corporate governance” had become a well-integrated policy and educational terminology. The report investigates any inter-relationships between managers, directors, and stakeholders of the company to assess the latest developments.
Brief History of Corporate Governance in the UK
In the 1970s, the term "corporate governance" was coined in the Western World. Within three decades, corporate governance was becoming a topic of discussion among regulators, managers, scholars, and shareholders all over the world. Between the mid-1970s and the middle of the 1990s, there was proper growth. The Cadbury Review on the economic dimensions of corporate governance, which was accompanied by a framework of best practice, kicked off the "change" in the mid-nineties. The "Cadbury Code," which was targeted at listed businesses and focused on principles of corporate conduct and morality, was eventually embraced by the Region and the Stock Market as a guideline of proper board practice (Cheffins, 2013).
Responsibilities of the Board of Directors
Board members enable the organization with oversight, perspective, and vision, and the board can make decisions based on what is appropriate for the business. The board has five core tasks to meet (Solomon, 2020). Numerous boards' first task is to recruit a Chief executive officer to oversee the firm's day-to-day operations and programs. They must also guarantee that executive directors are fully prepared to commit to any organizational changes or enhancements. The next step is to develop a mission, vision, and principles that will guide current and future operations. The third step is to develop organizational policies and objectives, ensuring that the company's organizational structure and resources are suitable for executing the strategic plan. The fourth step is to assign and observe the execution of objectives, policies, and marketing strategies to the administration. They must consult with superiors in order to evaluate the requirements to ensure that internal objectives are met. Understanding and taking into account the needs of appropriate stakeholders and shareholders is the last step. They will do so by tracking relationships and reviewing relevant data in order to increase shareholder and stakeholder confidence and cooperation (Jo &Harjoto, 2012).
Importance of CSR for Next PLC
CSR for Next PLC is important because it is a reputable company with a lot of social and economic responsibilities. By using a proper CSR model, the company can strengthen its image and maintain its brand value. Structured corporate social responsibility initiatives will also improve employee engagement and increase workplace efficiency (Taneja, 2017).
Archie Carroll’s Corporate Social Responsibility (CSR) Model
Corporate Social Responsibility (CSR) is a way for businesses to take responsibility for the company's market practices that have social and environmental consequences. Philanthropic, ethical, legal, and economic factors can all be considered. Each will have positive and negative aspects, but they should be evaluated in order for Next PLC to expand (O'Connor & Rafferty, 2012). There have been reports which state the company has violated some of these factors for the growth of the company. However, they also have managed to execute them significantly over the past years.
PHILANTHROPIC: This basically refers to being a successful global corporate leader and doing what the investors want. The company's obligations can be debated, and it can be decided on how the resources in the enterprise should be invested. It emphasizes more pleasant aspects of life, such as how workers' quality of life and the surrounding environment can be enhanced. Next PLC attempted to integrate CSR into the company in order to guarantee that the company encourages performance while handling and managing risk. The firm has a clear governance structure in place to assure that all workers are held responsible for their decisions.
ETHICAL: This basically refers to doing what the international investors want and acting morally for all parties concerned (Ali et al., 2017). Ethical duty entails societal standards that outweigh any financial or social obligations. Ethical duties encompass a broad variety of responsibilities, and since they are not enforced by statute, they must be reviewed and updated for each situation. Environmental, socioeconomic, and reputational considerations, as well as the effect on stakeholders, are incorporated into decision-making to guarantee that the company has a positive influence on the population.
LEGAL: This literally means adhering to the stakeholders' policies and guidelines. Businesses must respect the rules and the laws, according to the legal obligation. Should businesses choose to evade their legal obligations? However, if spotted, the cost may be extremely high, and companies can be forced to shut down. Every year, the corporation's board of directors examines social corporate responsibility while continuously assessing results and discussing legal matters.
ECONOMIC: This is essentially about global capitalism and how to make money in the economy. It examines the corporation's duty to provide services and products, as well as how to benefit from supplying them. Investors can expect a return on their expenditure in any company (Carroll, 2016). They still have staff who want to be healthy and reasonably compensated, as well as consumers who expect high-quality goods. Next PLC has formed a new CSR division, which comprises the corporation's senior managers. This group of higher authorities meets on a daily basis to discuss strategies, evaluate performance, and ensure that the organization meets its goals. The business divisions are where the majority of the company's CSR operation takes place. It's led by a group of senior executives who serve as corporate responsibility ambassadors (Thompson &McLarney, 2017). They verify that the organization operates responsibly and advise the business's corporate responsibility policy.
This study looks at how Next's dynamic development can be supported by innovation and technology. The study covered topics such as job development, employee transactions, market innovation, and business organization using innovation and technology. The report also focused on how Next uses technology to interact both domestically and abroad. In addition, research is undertaken to look at traditional and new patterns, and security technology determines their requirements for a healthy digital marketplace. We also examined corporate governance, its background, and how the board of directors should comply with the relevant rules and procedures in order for Next PLC to accomplish its objectives and goals in the future. Finally, the usage of Archie Carroll’s Model was explained.
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Carroll, A.B., 2016. Carroll’s pyramid of CSR: taking another look. International journal of corporate social responsibility, 1(1), pp.1-8.
Danquah, M. and Amankwah-Amoah, J., 2017.Assessing the relationships between human capital, innovation and technology adoption: Evidence from sub-Saharan Africa. Technological Forecasting and Social Change, 122, pp.24-33.
Ganda, F., 2019.The impact of innovation and technology investments on carbon emissions in selected organization for economic Co-operation and development countries. Journal of cleaner production, 217, pp.469-483.
Huang, K.E., Wu, J.H., Lu, S.Y. and Lin, Y.C., 2016. Innovation and technology creation effects on organizational performance. Journal of Business Research, 69(6), pp.2187-2192.
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Taneja, G., 2017. What happens “NEXT”? Emerald Emerging Markets Case Studies.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by next Plc have on themselves and their competition in the UK Clothing Retail Market? Journal of Commerce and Management Thought, 8(2), p.234.
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Volná, D., 2012. An Investigation into the Key Drivers Which Affect Brand Loyalty in Relation to NEXT, Plc.
Wigley, S.M., 2012. Core Competence & Diversification in Apparel Retailing -the case of Next Plc.
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Organisational Behaviour Assignment Sample
Issue date: Wk. 3 Monday 7th February 2022
Submission date: Wk. 7 Friday 7th March 2022 no later than 4.00pm
You are a management consultant and Richard Trafford has approached you on behalf of ABC Ltd for consultation and advice.
Attached is the ABC Ltd case study for assignment help. You are required to respond to the following.
1. Explain how the psychological contract can be integrated in ABC Ltd considering the significant amount of negative feedback from staff being faced by the organisation? (30 marks).
2. Describe and explain the types of communication mechanisms, theories and methods that can be adopted by Richard to help ensure better understanding and co-ordination not only with existing employees, but also with new employees? (30 marks).
3. Considering the events that happened in ABC Ltd, discuss the importance of conducting appraisals and rewarding employee performance on a regular basis, besides providing possible solutions for retaining employees using above processes?(40 marks).
Word count is 3000 words. In calculating the word count, we shall include everything written
From the first word after your title to the last full-stop in your conclusions. In-text References/citations in the body of the report are included in the word count, however the Reference List is not.
The content should reflect logical and analytical application of theories or concepts or models to the case. More details on this will be discussed by the lecturer in the class.
Issue date: Wk. 3 Monday 7th February 2022. An electronic file of the this assignment needs to be Submitted via the Turnitin link for this module before the deadline of Wk. 7 Friday 11thMarch 2022
ABC Ltd is a private sector organization which manufactures air-conditioning systems and sells them worldwide. Its head office is located in the north of England, although there are outposts of ABC in Spain, Norway, Australia and Japan.
ABC has always been run as if it were a small organisation even though its founder sold it to a big electronics concern some five years ago and it has grown from an original staff of twenty at the outset to employ 500 people at head office and something of the order of 3000 across all locations. It has never had a personnel department, therefore there are very few policies and procedures governing the organization. Decisions regarding employees (for example, hiring and firing) are usually taken on an ad hoc basis by the relevant manager(s), with the particular circumstances of the case being taken into account. Furthermore, management have always refused to recognise trade unions, believing that relations within the organization are good enough for employees to be able to air grievances without the need for formal representation.
Indeed, employee relations have never been seen to present a problem for ABC; the only area that management sees as cause for concern is the shop-floor, where the systems are actually manufactured. The unskilled and repetitive nature of the work in this department is recognised to make unrest more likely and indeed several attempts to unionise this staff group have been launched in the past. Other sections, by contrast, are considered not to be in any need of special monitoring – the service maintenance department, for example. The staff working in service maintenance jobs are highly skilled engineers who are employed to maintain and repair the systems that ABC sells. They are available between 6.00am and midnight should any of ABC’s customers require them. Everyone in this division has personal “pagers” and takes turns being
‘on call’ which, in the main, means attending to out-of-hours calls as the pager records them and telephoning the relevant client to give them advice. If the problem cannot be solved over the phone and it is urgent (for example, the air-conditioning system in a hospital has broken down), the engineer will have to go to the client.
Because of the breadth of ABC’s market, the job also involves a good deal of overseas travel. The service maintenance department is considered to be one of ABC’s selling points, as the cover provided by the team enables the company to promise all their customers a five-year warranty. Recently it has also been necessary to provide cover for the overseas branches of ABC – there has been a secondment to the Norwegian office for the last six months and Japan have also requested that a UK engineer go out there to work until they can recruit to their several vacancies. There are twenty engineers in the service maintenance department, as well
as the manager and his secretary. All but one is male.
It was only when Richard Trafford (the service maintenance manager) realised that he had Recruited no less than five engineers in the previous two years, three of whom had left after a Very short time and whom he was still trying to replace, that he began to perceive that all was not necessarily well among his team. When he thought back to those who had left he realised that all of them had gone to jobs elsewhere in the local area. In other words, his staff members we’re leaving because they were dissatisfied with the company, not because they were moving away, or retiring, or any of the other reasons why people leave employment.
‘Well, it can’t be the money,’ he thought. ‘Those guys get a good whack out of this place plus a company car. Other places don’t pay so well or offer cars. It must be something else. I’ll have to have a chat with them, see what’s going on’. At this point, Richard was interrupted in his reverie by his secretary reminding him of his 10.00 a.m. meeting with the company directors. He made a note to himself to look into the matter before gathering up his files and leaving the office.
In fact, Richard didn’t need reminding of the problem he had been considering that morning. He returned from the meeting in the early afternoon to be told that a local customer had called, furious because they had had to wait three hours for an engineer to repair their system. The client’s offices had grown so hot in the meantime that they had to let their staff go home and by the time the system was fixed it wasn’t worth calling everyone back in. So they had ended up losing a day’s work and were blaming it on ABC.
‘But I don’t understand!’ he protested to Carl Peters, who had the unfortunate task of breaking the news to him. ‘We’ve got enough people in, haven’t we? Why were they kept waiting?’ ‘Well, we’ve got four people sick, Richard, and there are about five others abroad. We need five people to stay here and cover the phones, so that only leaves three to go out to calls. And it’s been manic these last couple of days ‘cos the weather’s so hot. Martin had to drive from here to Glasgow and then on to Manchester yesterday to answer urgent calls. The call from Barnes Brothers just got shoved to the back of the queue. It’s not our ...’
Richard broke into Carl’s explanation: ‘Four people sick! Have they called in? I haven’t been told about this otherwise I would have tried to arrange cover.’ ‘I don’t know if they called in or not, Richard, but I know we’ve been down on staff constantly recently. There’s always someone off, and it’s usually two or three.’ ‘Right, OK Carl, I’ll ring the customer and eat humble pie. But I want a meeting with the lads tomorrow, 9.00 am sharp, and we’re going to get to the bottom of this. Can you let them know for me?’
At 9.00 am the following morning, the service maintenance staff began to gather in Richard’s office. Richard opened the meeting by telling them that he was concerned about morale in the department and would appreciate any comments they had regarding their own job satisfaction. At first they were reluctant to say anything but Paul Feather, one of the longest-serving members of staff, eventually go the ball rolling: ‘Well, what I hate is never knowing what we’re up to, Richard. I’m getting sick of being called out to places, then having to work really late ‘cos the client’s left it till the last minute to call. The times I’ve driven back from London at 2.00 am in the morning – and I’ve got a sick wife, as you well know’.
‘Yeah, and we never know how far ahead we can plan our social lives and stuff’, broke in Carl.
‘The only way to ensure not being called away is to book holiday time.
I remember when I was due to go and see my parents and you wanted me to fly off somewhere – I’d had the trip arranged for months and suddenly find out the day before that I’m supposed to be going to Switzerland. Then when I wouldn’t go, you got really mad with me’. ‘Speaking of being called out, I got a page the other night at 3.30 a.m. I didn’t turn my pager off ‘cos I was on again at 6.00 a.m. and one of the customers thought he’d chance his arm. So I got woken up in the middle of the night. It’s not on – they know when they can get hold of us and to leave a message if it’s an emergency. This wasn’t even urgent – he was just working late and got a bit warm. It could have easily waited till the morning,’ added Paul.
‘Plus, the salespeople always make rash promises to the customer – they say they can get the system installed in such and such a time. They never consult us – they just come back and dump the order sheet on us’. This came from George Browne, who went on: ‘And what’s more, the job’s actually quite dull, you know. I know it’s good money and everything, and we get a car, but we always go to the same companies, here and abroad. Also there’s very little opportunity to train on any system that you don’t already know. So you end up doing the same work, the same installations and the same repairs, week in, week out. The only training that
seems to go on here is for people who come in from outside! Another thing – if we were trained in other systems we could fill in for people more easily’.
At this point Robert Fields was heard to mutter, ‘Yeah and the car thing ... that director who bought the flash new company car for herself, fifty grand or whatever it was, when we just got told we had ten grand to spend on our cars, take it or leave it. She doesn’t have to do thirty thousand miles a year for the company, it’s just for posing’. Everyone murmured in agreement.
‘I’m with George on the stuff about the training – I’ve not been here long and I’m bored of the same round of places. There’s something else too’, said Sarah Jones. ‘It’s true about the money being all right but if you look at other departments, they’re getting more money than we are, even if you take the car into account. Look at pre-sales – they’re all on at least five grand more than we are. The only way to get a rise around here is to threaten to leave, like Carl did that time’.
‘Now that’s not fair’, Richard burst out. ‘What about appraisals? You get an automatic increment after your appraisal, if it’s been OK’.
‘I can’t remember the last appraisal I had – and anyway, when I did have it you’d forgotten to fill out the form, so it wasn’t much of a discussion. You just sat there and told me I was doing OK and not to worry, you’d do the form soon. Anyway, those increments are only in line with inflation, so we’d kind of expect them anyway – they’re not really because you’re working hard or whatever. We haven’t had a proper performance-related rise in three years’, Sarah replied.
‘I never even got my increment after my last appraisal – you sent me a letter saying I hadn’t been awarded one, but you never said why! You said at my appraisal that my work was good and you were pleased with me, so I was expecting one’, chipped in Colin Sanderson, who hadn’t spoken up until then.
‘And you said that I had to improve, and then I got an increment anyway – which I thought was kind of daft. Then you sent me to America to do that really big job, booked me away for a week and totally ignored me when I said I’d never get it done in that time. You had to send John Carter out to help me’, Carl commented.
There was a brief silence as Richard took all this information in, and the group wondered if They’d gone too far. When he didn’t say anything for some minutes, George leapt in to fill the gap: ‘Can I just say something else? It’s too bloody hot in here most days in the summer ‘cos of the great big glass windows – they let all the heat in and then when you open them, papers go everywhere. For an air-conditioning company, we’ve got rubbish ventilation up here. I had to go home early last week because it was so warm – you just can’t concentrate’.
Finally Richard spoke: ‘OK, OK, I get the gist. There’s quite a lot here needs dealing with, it seems. Can we just summarise what the grievances are and I’ll make a point of trying to deal with them as soon as I can’. Richard was starting to feel somewhat beleaguered. He had had no idea that things had got this bad. He made a resolution to act as fast as he could – it seemed that he would have no staff left at all if he did not!
ABC Ltd is a private organization that deals worldwide. Their core business is selling air-conditioning systems. They distribute in different countries such as Norway, Australia, and Japan. They have already shown a considerable growth rate in the last few years. However, they did not have a proper policy structure for the employees and other functions. In that case, they also refuse to accept trade unions. Overall, the employees get neglected regarding general rights and the psychological contract. They face different issues, according to the case study.
Richard Trafford, the service maintenance manager of ABC Ltd, is currently in charge. He suddenly realized that some employees were leaving the company for no significant reason. He organized a conference with the employees and other stakeholders. All of them got the chance to express their opinion and difficulties. He took all the opinions for further evaluation and planning. In this whole report, these factors and some theories are discussed critically. This report can show better planning for further improvement in the company (Rehman et al., 2020). As an organizational leader and service maintenance manager, Richard needs proper communication skills and judgment. It needs proper personality analysis and some leadership factors. After a specific time, some steps must be taken to resolve the issues of existing employees. The ultimate objective is to make a sustainable employee system of hiring. It requires proper planning and systems to engage employees in a positive environment in the company (Maltseva, 2020). Here the last question takes place. The awarding system and other engaging events engage all of the stakeholders.
Overall, the report depends on employee management and an employee sustainable system evaluation. Different theories and concepts are placed for better understanding and analysis.
1. Psychological Contract Integration
Psychological Contact is an unspoken agreement between the employer company and the employees. It does not include a salary package or other workplace details. Instead, it presents loyalty and other psychological or personality-based agreements (Dajani et al., 2015). For example, an employee offers loyalty to the company for a decent salary package and work environment. It is a cumulative personality trait representing decent output and legitimate behaviors to each other. This joint agreement usually presents the understanding label of commitment and expectations between the employer and the employee. Overall, this plays a massive role in employee satisfaction and sustainability.
This psychological contract must be maintained in every situation. In this way, the organizational structure becomes compact and sustainable. It requires continuous efforts and maintenance from both sides. Understanding the individuals while keeping commitments regularly is the fundamental criteria of maintaining a psychological contract (Moore, 2014). Moreover, clarifying each other's expectations and attention will improve personal integration and engagement. In this case, different employees have already established their issues in terms of psychological contract violation. That means the company is not available to fulfill all the expectations. Some external factors are also responsible for influencing psychological contracts. It includes demographics and swings in employment. These things affect the employee profile and his relation with the company in terms of loyalty. Moreover, continuous change in value trends also influences this factor significantly. Overall, these external factors must be considered for better results and influential work culture. This section critically discusses the integration of psychological contracts in the company. It is essential to resolve all the negative feedback from different employees and stakeholders.
Psychological concepts are unspoken agreements between the employers and employees of the company. In that case, it is not possible to document or list specific requirements. The whole integration procedure also includes personality and behavioral changes. Proper balancing theory will be practical according to the case study. This balancing process includes caring, communicating, listening, and annoying ability of the individuals.
In the first part of caring, the individuals must show genuine concern for work efficiency and personal life. This will also improve personal engagement, which will help in better teamwork. In communicating with each other, they must be optimistic about the company and themselves. The relationships and teams will be maintained in this way that will lead to better project management. Listening is the third ability to acquire far better psychological contract maintenance. This is also a part of better communication. Overall, the person needs to value all the opinions and aspects of a specific topic or issue (Lee et al., 2020). In this way, proper balance will be maintained through psychological contracts.
This whole integration procedure also requires a better understanding of individual expectations. The essential requirement is a safe and healthy workplace with appropriate equipment. Good workplace policies and decent culture make the work officiate and effective. Moreover, the training and development with Job variety opportunities are also essential. It improves employee satisfaction and effectiveness in work. Recognition and status can be maintained through different events and rewarding systems. This eventually leads to better engagement and loyalty from the employees. Finally, the work-life balance takes place. It includes a decent amount of work that does not affect an individual's personal life. In that case, the whole work will be stress-free and more efficient (Imperatori, 2017). On the other hand, destinations from the organizations are different. The first requirement is self-care and well-being. In that case, their employees should also be concerned about the company's well-being and self-care. Employees are also required to interact with the professional community and other organizational leaders. It is essential for their training and development. This will also improve their skills and practical work results. Finally, they require financial benefits and autonomy or control of outputs. In that case, they will choose their work based on their ability and interaction. This will be more effective in nature for the organization as it will develop better growth in the organization.
Overall, these factors can make the whole psychological contract more significant and influential in nature. The organization and stakeholders need to follow these aspects to improve the workplace environment (Byrne, 2014). This will mostly be beneficial for the employees. Proper implementation of the psychological contract will eventually bring more growth and improvement to the business.
2. Communication Mechanisms
Communication is one of the most required skills in any development project or organisation. In the case of ABC Ltd, the primary problem depends on communication. The poor communication skills of Richard lead to a poor understanding of employees’ requirements (Ge et al., 2017). In that case, the employees are unable to satisfy themselves with the job and workflow. This communication skill is dependent on different factors and personality measurements. Overall, it can build one’s personality, influencing and convincing than before.
The first thing to consider in communication is the perception of an individual. Perception means the way of observation of an individual. It varies due to the different thoughts and tastes of different people. This perception is of four types, majorly as stereotyping, selective perception, halo effect and self-serving bias. In the case of stereotyping, a group of people or a whole gender perceive one general conception (Deng et al., 2015). They are not so flexible to change that concept for some continuous events or reason. In the case of selective perception, the viewer is already conditioned to a particular choice or point of you. In the case of the halo effect, the person can pick up on a particular, usually positive, attribute that will determine the overall perception or concept. Finally, the self-serving bias presents the internal thinking ability or personal thoughts of a person. It usually expresses itself when a situation or problem comes around.
Social Identity Theory
Social identity theory is based on the concept of categorizing people in terms of social standard or occupation. The social positioning of a person or a lifestyle can be defined by his living area, occupation, lifestyle, the standard of living, etc. Overall, this social identity theory can categorise people into different segments with different benefits and functions. This is also another mode of communication or communication theory. This can present the regional or categorised communication between different groups of people in the same society. (Module: Communication)
Mechanism of Communication
The cold mechanism of communication depends on three steps. First, the sender sends the message in any particular communicating language. It goes through a particular channel to the receiver, who needs to decode the encoded information specifically. Personal interaction and understanding will determine the percentage of information to be communicated. In this whole procedure, some noise or interruption can come as external factors. It depends on the communication skill or connection between the sender and receiver and how well they can avoid those external factors (Su et al., 2019). By following this whole mechanism of communication properly, Richard can easily maintain the communication between the stakeholders and other employees.
Importance of Work Culture
Work culture plays a significant role in terms of communicating with employees and other stakeholders. Culture and communication are dependent on each other in several factors. A well-defined and maintained work culture where all the employees are satisfied with their work roles and responsibilities are always efficient enough. In that case, personal interaction and engagement will also be maintained for further understanding and better communication. Different organisational leaders such as Richard first needs to develop a decent relationship with all the stakeholders and employees (Idowu, 2017). Psychological contracts and other structures will be built first. After that, the maintenance of decent work culture with an ethical point of view lead the communication to a better understanding level.
This also has two types of context in terms of cultures. The first one is high context cultures that are majorly seen in China, Korea, Japan and Vietnam. The people there are more interested in the position or business card of an individual. Written or spoken communication systems are also a part of the communication system there, but they are considered secondary communication methods. On the other hand, low context cultures are majorly seen in America, Switzerland and Germany (Li et al., 2016). In this case, people pay attention to secondary or non-verbal messages the most. Written legal documents or free size paper works are mostly accepted and appreciated in those areas. Overall, both these high context and low context cultures have severe significance in current society or communication systems.
Non-verbal communication is another communication system or procedure. It basically depends on body language, facial expression, posture and other external activities rather than words (Febriantini et al., 2021). In this way, the emotional intelligence of an individual is implemented in a significant way. Emotional intelligence means the ability to judge others emotions or a way of acceptance or conversation (Mehrabian, 2017). Better understanding improves non-verbal communication and the connection between two individuals. In this case, six bodily senses such as sight, hearing, touch, smell, taste, et cetera will help. Different activities like group discussions or seminars improve these skills of non-verbal communication.
Finally, effective communication will be measured in every case or scenario. Richard must develop the required skills of Babul and non-verbal communication between the stakeholders or employees. In that case, his communication must be effective as well. It includes proper listening and passive thinking ability. He must be aware of personal body language to connect with the person on a personal level. On the other hand, he must be clear about his objectives or conversational outcomes (Hirsch et al., 2018). Overall, this will build a proper connection between them which will lead to better communication and further implementation into the organisation. In this way, effective communication can be achieved on a regular basis. Eventually, they will be able to maintain or sustain the existing employees in the organisation. In this way, the overall authority or expertise of the company will be improved with time. New employees will also feel satisfied and compatible with the work roles and responsibilities. Overall the whole company will face a huge benefit which will significantly improve the company’s current situation or growth rate.
3. Importance of Appraisals and Rewards
Appraisals and rewards are prepared for different stakeholders or employees who have achieved specific goals or milestones in the organisation. It can be in the development, management, and other segments. Overall, all the employees are evaluated in one single financial year and then the reward list is prepared. In the case of ABC Ltd, this appraisal or reverting method can be beneficial. The fundamental problem is to sustain existing employees in the organisation. It requires proper employee engagement and satisfaction. Giving appraisals or rewards is an innovative approach to motivate all the employees towards the work ethics and culture (Remland, 2016). It will also motivate them to improve themselves in terms of skill and communication. This way, the company will experience more skilled technicians and better results. The employees will try to compete with each other, which will develop their communication skills and personal interaction (Swanepoel et al., 2014). The revert giving strategy will also motivate them to work more in one financial year. Their achievements will determine their reward value.
This will be effective in this case of ABC Ltd as well. They are already facing dissatisfaction from the employees. In that case, Richard must maintain the engagement between them and motivate them to work efficiently. In that case, this merit list or performance metrics will help them to determine the person who is working more than others. It requires extreme precision and organising ability to conduct the whole system, including appraisal and rewarding program.
The organisational structure, communication, work culture, all of these factors are essential in conducting these events. When the stakeholders or employees are not even connected with each other, then the event will be an extreme failure. To maintain the competition and work environment in the workplace, all of the people must be connected and engaged with each other in different projects. On the other hand, organisational leaders such as Richard must be well prepared in terms of communication skills (Watson, 2017). He must conduct the whole program along with the higher authorities and the employees as well. In that case, he needs to understand all of the requirements on a personal level. It also becomes critical to judge different people in terms of their merit and personal skills on a regular basis. Sometimes it can be dependent on some severe factors or mine and behavioural changes as well (Pithouse, 2019). Richard is responsible for evaluating all of them and determining the reward providing list accordingly. Overall the organisational structure will also play a significant role in this case. When the organisation follows decent teamwork culture and other beneficial organisational aspects, the whole event will be conducted efficiently.
This procedure already maintains the sustainability of existing employees in the organisation on a regular basis. It also helps in acquiring new employees into the organisation with time. Every new employee looks for a better opportunity with the scope of growth into his job profile. In this case, regular appraisal and easy words will maintain that competition and scope of improvement into the organisation (Douglas et al., 2014). The ranked people can easily expect to be promoted in service times. They will also be influenced to work hard for further growth and development in their career or personal job position. This whole sustainability model will last longer when the communication skill is manageable for Richard.
This whole report concludes the responsibility of Richard into the organisation to engage existing employees and to acquire new ones in an efficient way. Primarily it includes a psychological contract that leads to better communication and interaction. In this case, some agreements are made between the employer and the employee without verbal communication. It means all of those agreements are not documented anywhere. They come from the personal experience and emotional intelligence of an individual. After that, the mechanism of communication is discussed from different organisational aspects and scenarios. It includes both types of communication systems, such as verbal and non-verbal communication. Both of them have their own functionality and features that can be implemented in different ways. This also includes work culture significance into employee satisfaction. Finally, the importance of work culture or work environment is also discussed in the report. It shows its significance and effectiveness in real life. This will basically improve the overall project results and engagement. It is also the responsibility of Richard to conduct all of these things properly. On the other hand, the report consists of the idea of different events such as appraisal and dividing events. In that case, Richard will sort all the employees who have shown great results in the last financial year. After that, they will be rewarded accordingly in terms of their skills and effectiveness in the company. This will not only help in sustaining existing employees but also will acquire new employees who will be effective in father development. Overall, this whole report can lead Richard to a better solution after the mentioned case. He can develop new skills and plan for further improvement of employee satisfaction and sustainability.
It also shows that the whole system must go through different changes, which will take a longer time frame to be conducted. It includes the change of the whole work environment and culture. This may also require some policy changes in the company system. Overall the whole thing will be conducted under the supervision of Richard and other higher authorities.
Richard is the service maintenance manager of ABC Ltd. In that case, it is his responsibility to maintain and manage all the stakeholders, including the employees. After the detailed evaluation of the whole report, it is clear that he must develop proper communication skills. This will not only help him to engage and interact with the employees but also will help to understand their exact requirements for the organisation. Eventually, he will be able to improve their satisfaction and other company procedures to fulfil their demands. He must also go through a proper understanding of different job profiles and an individual employee. In this way, his personal interaction or connection will be improved. He will be able to connect with them on a personal level to understand their requirement precisely. Overall, he needs to develop new skills and has to consider every single organisational aspect for the employees as well. This whole procedure can lead to better growth and sustainability for the organisation.
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Pure Gym 202202 Marketing Mid-term Coursework Assignment Sample
1500 words assignment
Pure Gym case study
Case study based on Mintel “Health and Fitness Clubs UK 2021” August 2021 and IBIS “Gyms and Fitness Centers in the UK” March 2021, and January 2022
Following forced gym closures throughout 2020 and early 2021, virtually all gym members either had their memberships frozen or opted to cancel. However, it hasn’t taken long for the majority to reactivate their memberships with 58% returning to gyms as at June 2021, while most of those yet to unfreeze their membership planned to return in the following 12 months. One in four consumers said COVID-19 has made them more interested in taking part in leisure activities that benefit their physical wellbeing. The pandemic has altered consumers’ purchasing habits in the long term. Younger consumers have become more financially aware and are more likely to favour cost-effective options. Just over 1 in 4 16-24s who have a membership or are interested in joining the gym would prefer a discounted off-peak membership, whilst a quarter would prefer the pay-as-you-go payment option.
The main threat to the private health and fitness industry is the potential for future lockdowns. Online fitness services served consumers very well during gym closures and higher demand for these services will be one of the main legacies of the pandemic even now gyms are open again. Moreover, government initiatives aimed at tackling inactivity and obesity are expected to increase industry operators' potential customer base. Competition is forecast to intensify, with low-cost and luxury gyms capturing market share from mid-market facilities. Demand for outdoor fitness continues to grow as consumers seek safe ways to exercise and a change of scenery. Fitness operators should continue to focus on enhancing their online and outdoor propositions in order to offer best ‘hybrid memberships’ that offer access to both online and offline services, including outdoor facilities.
Pre-COVID and current health and fitness club membership, by age, 2021
Base: 2,000 internet users aged 16+
“Were you a member of a private health and fitness club when the first COVID-19/coronavirus restrictions were introduced in March 2020?”
“Are you currently a member of a private health and fitness club? If you have more than one membership, please answer for the private health and fitness club you visit most often.”
Pure Gym is the UK's leading low-cost gym chain. Founded in 2008, Pure Gym was a pioneer in the UK's budget market, which allowed them to quickly build a large consumer base. As of December 2021 the company had just over 300 locations in the UK, and as of June 2021, 1.1 million members. In June 2021, Pure Gym reported that its paying UK member base had recovered to 97% of its pre-pandemic level.
Pure Gym describes its proposition as one that offers low cost membership fees, no obligation to sign a ‘locked in’ contract, excellent standards of hygiene and cleanliness and 24/7 access to high quality, well maintained gyms.
In the past five years it has opened 142 new gyms in the UK. Recently it has focused on small box gyms which are typically between 6,000 and 9,000 square feet in size and allow Pure Gym to open new sites in areas previously unserved by the industry.
Pure Gym has the highest level of users and the second-highest recommendation level. 18% of consumers have ever used it and 83% of these people would recommend the brand. 29% of consumers say the gym is modern and affordable, and over half of consumers say the gym is accessible. Pure Gym is seen as trustworthy (29%) and good value for money (35%). It scores lower on prestige and expertise.
Just under a third of consumers say the brand is innovative, making it the brand most likely to be associated with this attribute of those surveyed. In the long term this quality will work to its advantage; for example, it can enhance its online offering by collaborating with brands that offer interactive experiences such as IFIT’s mind body home workouts, and cater to the 35% of current or potential members who think any online fitness service is important.
User profile of Pure Gym, 2021
Pure Gym is popular among 25-34s (17% used the brand in the last 12 months vs 9% of total). 16% of those living in cities have also used Pure Gym in the last 12 months.
The word cloud below visualizes the relative overall usage of Pure Gym by major demographic groups. Demographic groups that over index on usage appear larger and in a deeper shade of green in the clouds, while those that under index appears smaller and in a deeper shade of red.
Trends in the fitness market
Low-cost segment is expanding across the UK
Despite all the challenges and uncertainty relating to the pandemic, the UK’s low-cost health and fitness club segment has further expanded in 2021, driving the wider market forward with new site openings and expansion plans. The total number of sites across the low-cost sector has significantly increased from 399 in 2015 to 767 in 2021.
Estimated low-cost operator number of sites, by year, 2015-2021
(a) Combined figures in 2020 and 2021 due to JD Gyms’ acquisition of Xercise4Less in July 2020
Source: Mintel, August 2021
The low-cost segment is defined by memberships costing approximately £20 a month or less; The Gym Group has a monthly membership fee of £20.99 while PureGym has membership fees as low as £9.99 a month. Furthermore, with day passes and off peak memberships in addition to regular monthly memberships, low-cost gyms are highly flexible and have the opportunity to be even more flexible by adding bolt-ons to their offering. The low-cost gym segment will thrive as consumers, particularly the younger demographic, will be selecting more affordable options.
Key players in the low-cost segment by estimated market share in terms of number of sites, August 2021 Source: Mintel
Hybrid working calls for hybrid fitness models
37% of full-time workers expect to work from home more often than they did before the pandemic, even once COVID-19 is no longer a significant threat. Remote or hybrid working is expected to become a trend that outlasts the pandemic, which will see more consumers move out of cities or commute into cities less often.
As more people work at multiple locations, this will also see them work out at different locations, whether at home, near their home, or near their workplace. Around 1 in 5 consumers who are currently members of a private gym or are looking to join one find it important that a gym membership includes access to indoor, outdoor and online facilities/services.
As many consumers will most likely only be travelling into the office a couple of times a week, fitness clubs may need to follow suit and offer part-time memberships that allow people to visit 2-3 times a week. Research shows that 16% of current/ potential gym members would prefer to sign up to a discounted subscription that only allowed them to visit a certain number of times per week.
Gyms can appeal to more aspects of health
There is an opportunity for gyms to capitalize on the growing interest in mental wellbeing; 68% of consumers who exercise said that COVID-19 has made them more aware of the importance of mental wellbeing. A third of exercisers would be more interested in joining a gym that offered services to improve their mental wellbeing, and the same proportion would be more interested in joining one that helped to improve their diet/nutrition.
Growing need for third spaces
With many people likely to spend less time in the office, venues such as gyms can benefit from growing demand for ‘third spaces’ that allow consumers to meet others or even work in locations outside of their home. There are also opportunities for gyms to develop a range of ‘add-ons’ that consumers can opt to tag on to memberships for an extra fee each month. These could include online personal training services, nutritional supplements, health foods or spa/beauty treatments.
Mintel’s Technology Trend Driver states how technology will become ingrained in our daily lives. Technology will advance and keep consumers informed about their own personal wellbeing. Fitness operators that offer technological solutions that contribute to improving consumers’ wellbeing will be able to stand out in the health and fitness market. The Gym Group is the first chain to combine the brick-and-mortar health club experience with digital fitness, providing exercisers with interactive HIIT studios, in partnership with Fiit.
iFIT, an on-demand fitness streaming platform, has started a selection of new interactive body mind workouts designed to redefine fitness. Launched in May 2021 in line with National Mental Health Awareness Month, the interactive workouts are aimed to improve exercisers’ mental health, focusing on mindfulness, meditation and movement.
Rejuvenating High Streets
In July 2021, the government introduced a new strategy to support local economies, guaranteeing 15 Town Deals to regenerate high streets, repurpose derelict buildings into new homes and give communities the chance to own pubs, theatres and corner shops. The health and fitness sector has an opportunity to capitalize on the government’s initiative to expand high streets, opening up new fitness sites in local communities to promote good health.
Young Consumers Lead The Way
Young consumers (aged 16-44) show the highest interest levels in returning to or joining gyms in the next 12 months. Younger consumers are more likely to take part in strength-based as well as high intensity workouts, suggesting that these could be two areas for gyms to focus on when offering tailored packages.
END OF CASE STUDY
Assessment scenario for assignment help (This Case Study provides the context of your assignment)
You are a Marketing Consultant for Pure Gym and have been tasked by the Board to produce a Marketing Plan for the next three years.
Your coursework MUST be in REPORT format ONLY and MUST include all sources of information in a ‘References’ section using APA style. Students must use tables / diagrams and bullet points wherever possible to present the key elements of a professional business report.
Students should refer to appropriate theory learned to demonstrate their knowledge and understanding and have read the set book. Not all subject areas will be covered in lectures and seminars. Students are expected to study independently and read / research extensively.
Students must use tables / diagrams and bullet points wherever possible to present the key elements of a professional business report.
Format should include the following elements:
• Title page.
• Contents page.
• Introduction in brief.
• Marketing Plan (include PESTLE, Porters Five Forces, Consumer decision making, Internal environment and Portfolio analysis, SWOT, SMART Objective, Marketing strategy with STP and Marketing programmes – please refer to next page for detailed marking scheme).
Students should refer to appropriate theory learned to demonstrate their knowledge and understanding and have read the set book. Not all subject areas will be covered in lectures and seminars, students are expected to study independently and read / research extensively.
The word count is 1500 words.
PESTLE, Porters five forces, SWOT and Marketing programmes (Marketing mix) can be included in tables and their content will then be NOT included in word count.
Deadline: 3.59 p.m on Friday, July 8th 2022
Submission via Turnitin
Use the coursework guidance document, sources and references list document available on Moodle to explore necessary information to finish the coursework.
Other important notes to students:
Title, ICP Student ID, Word count to be included.
Font should be Ariel or Calibri.
Font size to be 12 for above font types.
Have 1.5 line spacing with page margins of 2.5 cms top and bottom including left and right.
Have clear line spaces between paragraphs.
Be fully blocked – paragraphs should not be indented.
Be justified to the left hand margin only.
Have all pages numbered.
Include Student ID number on each page.
Proof read with no spelling errors or typographical errors.
Please see the marking grade criteria given at the end.
You need to type the answers only in Word document and upload it on Turnitin link on your Moodle site.
The Turnitin similarity % should be much lesser than 20% (the lesser the better).
Please note the weighting for each task and divide the word count up appropriately.
Kindly refer to the detailed marking scheme provided at the next page.
In the following report, the market plan is going to be structured through the analytical perception of the macro-environment. Through the Pestle Analysis, the factors are going to be observed which are affecting the growth of Pure Gym. Furthermore, Porter's five forces will ensure the micro environmental factors that will provide evidence to the information that will be collected. Then the consumer decision-making processes will be verified to study the internal environment through SWOT analysis.
Importance of Pestle Analysis
The Pestle Analysis dispenses circumstantial resources regarding the business flow. The brand positioning can also be determined from the analysis along with favorable growth in the required areas and examine the risks involved in the field of productivity (Cie?likowski & Kantyka, 2018). The sustainability of the available services and products can also be derived from the analysis and endorsements of new products can also be developed.
(source: as per Cie?likowski & Kantyka, 2018)
Analysis of the factors
Political: The effects of the Covid - 19 have made the UK government protective for personal development for which Pure Gym was highly affected (Chand, Lal, Prasad & Mamun, 2021).
Economical: The high inflation rate and interests have brought major changes in the daily lives of the people but Pure Gym invested its potential in innovating its services (El Khateeb & Shawket, 2022).
Social: The major changes that took place in renovating the trends to expand the low-cost segment attracted a huge percentage of customers in the youth demographic.
Technological: The advancements made in the technicalities were to raise awareness of being fit and influenced many customers to go to Pure Gym. The demand of low cost gyms by the consumers in the UK is represented in the graph mentioned below.
Figure 1: The demand of low cost Gyms
Source: (Glofox, 2022)
Legal: The various resourcing by the UK government has forced people to be involved in activities to lead a healthy life which has enhanced the growth of Pure Gym (El Khateeb & Shawket, 2022).
Environmental: Pure Gym maintained high sustainability to maintain a healthy environment by maintaining their low-cost segment to attract more customers.
Pure Gym is one of the highest low-cost gym chains in the UK offering low-cost subscription fees for members. The members of Pure Gym are free to come and go as Pure Gym has no contracts that restrict consumer willingness (Dick et al., 2020). They are very particular about maintaining hygienic factors and cleanliness. The quality of services that are provided by Pure gym is always accessible.
Porter's five forces
Michael Porter’s five forces model is required for the understanding of the competitive constraints in workplaces in any industry. The importance of this tool is to yield manufacturing or work-related processes under constant pressure (Bhatt & Singhi, 2020). The affected competition in the working environment reflects the increment in the profitability of the business.
Porter’s Five Forces Analysis
Competition in the industry: The competition in the market is reasonably high due to the Gym group in the UK also having a wide chain and popularity (Chiu, Kokkinis & Miglionico, 2021). The flexibility in the low-cost segment in the gym sector affects the debt management proactively (Mintel, 2022).
Potential of new entrants: The factor of Pure Gym to lead in the market of the United Kingdom makes fewer ultimatums for the new entrants which are a positive impact for Pure gym (Abeysiriwardana & Jayasinghe-Mudalige, 2021). The below graph is representing the growth in the fitness industry in the UK.
Figure 2: Fitness Industry growth
Source: (Statista, 2022)
Power of suppliers: The gym sector hardly requires any supplies in products which reduces the power of suppliers as Pure Gym also relies on services mainly. The infrastructural technicalities were provided by Pure Gym which caused changes in the behaviour of the staff (Shin et al., 2021).
Power of customers: The power of the customers is very moderate as there is plenty of availability of consumers due to the low membership costs of Pure Gym.
New entrant threat: Though the registration fees are low Pure Gym never compromises with maintenance and customer satisfaction is one of the main aim by innovative technology (Goc?owska, Pi?tkowska & Lenartowicz, 2019). They also have various online services that have increased their businesses by 97% in the post pandemics.
‘Pure Gym’ has personal trainers who are certified with the appropriate skills, abilities and knowledge to maintain an effective and safe programme of exercises. It helps the customers to achieve fitness and health goals. The membership packages of this gym are very low in the UK as fitness and leading a healthy life was the dedication of the peoplein the post pandemic (Tanisawa et al., 2020). There is so much flexibility in service which is provided by the outdoor and indoor activities of Pure Gym. The main focus of this gym is generating good gym experiences. Hygiene is significantly maintained by Pure Gym.
Port Folio Analysis
Star: Pure Gym has a star factor in the gym industry in the UK. The membership which is provided by this gym reports customer satisfaction in the business (Hamilton & Webster, 2018). The gym increased the volume of customers with personal trainers and a safe programme of exercises. It helps the customers to achieve fitness and health goals.
Question mark: There is high growth in some sectors and the share of the company is low which will be a question mark as fighting with the diseases calls for fitness training (Amagasa et al., 2022). The market share of certain products of Pure Gym is low but the market share of those products is relatively high which has to be identified. The technological aspect helps to grow a brand with better marketing (Moshrefi et al., 2020). The technological aspects of Pure Gym are moderate.
Cash cow: The cash cow of Pure Gym is its various offers which will compel its clients to avail of its lucrative membership plans which will benefit both the gym and the clients (Zin, Bombana & Barcellos, 2018). The easy and affordable membership plan of the gym will ensure clients hold on to the plan throughout the year.
Dog: The new facility that the gym chain is providing to its clients is the third space facility which will allow the clients to socialize often raises dilemmas regarding digital citizenship (Calzada, I., & Bustard, J. R. (2022). This service will have a low growth rate in the market and it will not add value to the larger objective of the gym chain.
Figure 3: UK fitness gym centers after pandemic
Source: (Statista. 2022)
Importance of SWOT Analysis
SWOT analysis shares the internal capabilities and measurements of the given organization or center and provides its internal viewpoints.
Strength: Pure Gym is open 24/7 in the UK which attracts customers and structures the gym's market plan (Jing et al., 2021). It has a wide range of fitness skills that allows more customers to share their physical well-being.
Weakness: The biggest weakness for a UK-based gym is the inconvenient location and technical issues that challenges the customer allowance in the market (Polyakova & Ramchandani, 2020).
Opportunities: Affordable prices can lead to more customer visibility and pursuing training in covid crisis is the biggest opportunity for Pure Gym (Andreucci, 2020).
Threats: In recent times, online gym training and limited client basis has become the biggest threat for Pure Gym (Yin, Li, & Dila, 2020).
Marketing Objective (SMART)
The marketing objective is an important factor in determining the success of a brand that wants to sustain itself in the competitive market. Setting up specific objectives will ensure that the short, long, and medium-term goal of a company is achieved in a time-bound manner (Sugiat, 2021). After the covid, there is a different situation with consumers getting conscious about the financials and wanting cost-effective solutions.
Selection of objective: The SMART objective was selected as a marketing objective for Pure Gym. The immediate target is set in a specific and time-bound manner which is to increase the turnover to over 330 million pounds by 31st December. Pure Gym has also made a target of getting over a million members by the same stipulated time. The SMART objective will ensure that the target is relevant in today's environment and is gained on time (Santoki & Parekh, 2020).
The reason behind the selection
The marketing objective that uses a SMART model sets a time-bound goal that will be easy to accomplish due to efficient planning. The specific model of the marketing strategy was used to take the logical step which will be relevant in today's environment.
Marketing strategy and STP
STP helps a brand target a particular segment with clarity. The commercial attractiveness of each segment should be taken into account before developing positioning for each product segment including a marketing mix for the sector (Huijsmans et al., 2019). STP is relevant to digital marketing which enables a company to communicate tactically.
Segmentation: Segmentation should be based on demographics and the interest of people in a particular location. The characteristics and the purchasing power of a particular segment should also be focused during making the marketing strategy
(Ghahnavieh, 2018). There is a group of young people who are actively involved in sport and who may play at the national level who need to be physically fit using the right equipment.
Targeting: The target market should be fixed according to the forecast of revenues for each segment. Losing weight and having a toned body is the general fitness goal of this segment (Liu & Shan, 2021). People belonging to the 18-45 age groups will be particularly targeted as they are highly likely to be regular members and they will purchase various fitness-related products.
Positioning: The customer proposition of Pure Gym is disruptive which its biggest marketing strength is. The positioning of each product should be based on the particular segment targeting. The positioning will be mainly for the young clientele who are likely to spend more money on fitness.
Marketing strategy: Increasing popularity among the targeted audiences
The four dimensions of the Ansoff matrix are product development, diversification, market penetration and market development.
Penetration: Pure Gym is focused to penetrate the untapped segment which will boost its revenue. Pure Gym is using various digital marketing tools to go to the new sectors. It also has strategic alliances with other fitness centers and celebrity fitness influencers (Khajezadeh et al., 2019).
Market development: New products are promoted in different countries as a part of the strategy (Khajezadeh et al., 2019). Pure Gym is mainly focused in the UK now it is expanding internationally.
Product Development: The gym chain has already begun to give new offers to its clients based on attractive plans. It is focused on launching new plans and offers which will be aggressively promoted on social media.
Diversification: Diversification will be risky for Pure Gym which is expanding rapidly (Krupina, 2021). Existing products should be marketed heavily before diversifying.
Porter’s competitive advantage: Porter's generic competitive strategy includes cost leadership which will be applied to get a competitive advantage. The various changes were identified due to pandemic in the customer’s responsibilities (He & Harris, 2020).
Importance of marketing programme
Prioritizing a primitive video sharing on the gym training and physical fitness structure can be an accurate marketing program for Pure Gym. The shadings of customer reviews and their affective experiences in Pure Gym upgrade its market structure and acquire the marketplace (Yin, Li, & Dila, 2020). Thus, the market program is important to analyze the UK’s gym training centers and current conditions before the customers.
Planned marketing actions
? The increase of customer allowance and sale of company.
? To develop mental and physical health conditions.
7 Ps of Marketing Mix
The above research paper provided a detailed marketing strategy and its plan for the popular gym chain Pure Gym in the UK. With the help of analytical tools like graphs and tables, various marketing models were discussed in the above research paper. Pestle analysis, SWOT analysis, portfolio analysis and STP models were discussed in the report. STP is based on the principle of effective marketing mix strategy and product position for each system.
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BE275 Global Supply Chain and Operations Management Assignment Sample
1. Coursework: An Individual Report or Essay (100 % of the total mark).
You are expected to write a report of 3,000 words (including Introduction, Main Body and Conclusion; excluding Executive summary, Tables, Figures, Bibliography and Appendices) on the Topic identified in Section 2, which will assess the knowledge gained throughout the autumn term.
2. Topic: You are required to prepare a report, which will focus on analysis and discussion of INDUSTRY 4.0 and its impact on Operations and Supply Chain.
INDUSTRY 4.0 and its impact on Operations and Supply Chain.
• Industry 4.0 implies a new industrial revolution, combining advanced production and operations techniques with smart technologies that will be integrated into organizations, people and assets. This revolution is marked by the appearance of new technologies such as robotics, analytics, artificial intelligence, cognitive technologies, nanotechnology and the Internet of Things (IoT), among others. Organizations must identify the technologies that best meet their needs in order to invest in them. Thus, Industry 4.0 understand the range of new technologies that appear with this revolution such as: MES Systems (Manufacturing Execution Systems), MOM Systems (Manufacturing Operation Management), Advanced Analytics, Artificial Intelligence (AI), Collaborative Robotics, Industrial Internet of Things (IIoT), Big Data, among many others.
• The impacts of Industry 4.0 can be felt on multiple levels, for example in the business ecosystem. In addition to the change in which companies operate and in the production of goods, Industry 4.0 affects all agents of the ecosystem (suppliers, customers, regulatory considerations, investors, third parties ...). Therefore, we can expect this to affect the operations and supply chain in the companies.
• Guiding questions:
• How can Industry 4.0 influence the supply chain?
• How can Industry 4.0 influence operations management in the company?
• How can Industry 4.0 influence organizations?
• How can Industry 4.0 influence people in the company?
• The digitization of every industrial activity is at the heart of Industry 4.0. For example, the internet of things (IoT), artificial intelligence (AI), cloud computing (3D printing and blockchain), robotics and automation (RA) as well as big data and analytics (BI) all play a role in this new system.
• With the aid of Industry 4.0, the supply chain of a firm may be digitalized so that it can link different components of the supply chain together in a good supply chain process. An integrated digital supply chain may lower operating costs by about 30 percent, according to research.
• It will also help to cut down on sales chances squandered by around 60%. Around 70% of the inventory needs may be reduced by improved inventory management by the firms. In the long run, Industry 4.0 is good for businesses because it helps them become more efficient, nimble, and accurate.
An industry's operations must be digitalized in order to achieve Industry 4.0's goal. The “internet of things (IoT), artificial intelligence (AI), cloud computing, 3D printing, blockchain, robots and automation, big data and analytics, machine learnings”, etc. are some of the technical breakthroughs that make up this new industry (Ghadge et al., 2020). Supply chain information may be digitally recorded in order to tie different components of the supply chain together in a good supply chain process, thanks to Industry 4.0's ability to digitise it. Using a digitally regulated supply chain may lower operating costs by 30 percent, according to research. As a bonus, it'll cut the number of sales chances squandered by 60 percent. Improved inventory management may cut inventory needs by 70% or more for most businesses (Hahn, 2020). Companies benefit from Industry 4.0 because it increases their operational efficiency, agility, and precision. Founded in 1994 by Jeff Bezos in Seattle, Amazon provides cloud computing and e-commerce services, as well as a wide range of other services. If you look at the company's market capitalization and revenue, it is the world's second-largest online retailer behind the Alibaba Corporation. Amazon.com began off as an online book retailer in the early days of its existence. While initially focusing on goods, the firm has steadily expanded into music and video distribution and cloud computing infrastructure services.
The firm has been able to become a leader in online retailing because to its extensive use of cutting-edge technology and first-rate operational and supply chain management practises. In 2018, Jeff Bezos was indeed the world's wealthiest man with a market value of $702 billion (Fatorachian & Kazemi, 2021). The firm has also expanded into brick-and-mortar retailing with the purchase of whole foods, which helps to support the company's huge business. This success is credited to the company's use of cutting-edge technology, as well as to its efficient operations and supply chain management.
Figure 1: Supply chain management of Industry 4.0
(Source: semanticscholar.org, 2019)
Industry 4.0 Influence The Supply Chain
The industry has grown rapidly in recent years due to advancements in technology. The internet has had a major impact on the modern-day business world, making it more efficient and accurate. The phrase supply chain 4.0 has been created as a result of the introduction of the concept of Industry 4.0. Just an example of how Industry 4.0 technology may be used in practise. As a consequence of this programme, all supply chain activities have been digitised and made more flexible and efficient. Networking each and every part of the manufacturing process together is beneficial to the firm. The United States government proposed the notion of Industry 4.0 for the first time in 2017 (Szozda, 2017). Companies must incorporate internet and technology into their operations in order to produce a more efficient operating process, according to the principles of Industry 4.0. In order to maximise the benefits, organisations might adapt their production methods. To minimise labour expenses, corporations are using robotics and machine intelligence.
In the beginning, other companies used it to automate their own operations. German enterprises have found it to be a successful approach. There are numerous firms throughout the world that now apply Industry 4.0 concepts in order to completely automate the operational process. Prior to this decade, eBay had established itself as one of the leading e-commerce platforms. It offers a diverse range of products from merchants in a variety of geographical locations. However, according to sources, it is not doing effectively as a result of a lack of adequate supply chain management practises. Over the last several months, eBay has begun integrating the ideas of Industry 4.0 itself into supply chain. The company's long-term objective is to establish a fully automated supply chain (Ivanov, Dolgui & Sokolov, 2019). In recent studies, it has been said that advancements in Amazon's supply chain are favourable to the corporation. Revenues increased by around 30%, and the company has implemented a completely autonomous supply chain system.
Figure 2: Revolution of industry
(Source: datexcorp.com, 2018)
Amazon Supply Chain Developments
Founded in 1994, the company started with two fulfilment centres, one in Seattle and another in Darlington (North Carolina), both having a total floor space of 18,766 square feet. This retail company employs human storage and receiving in the same manner as its retailing competitors, and its clients get their orders within one to seven days, depending on how far they reside and what they purchase. Following that, in 1999, the company expanded its global reach by constructing five other warehouses in various European nations in an attempt to broaden its regional coverage. Following the introduction of the FBA (Fulfillment by Amazon) platform in 2006, Amazon's third-party merchants were able to transmit their products and services directly to Amazon's customers while still maintaining control over their inventory levels on the Amazon platform. The firm would be able to afford the expenses of packing and shipping in the future if this were to happen in the future. After that, in 2013, Jeff Bezos developed a drone delivery system called The Prime Air, which could deliver items in as little as thirty minutes in certain instances (Manavalan & Jayakrishna, 2019). A worldwide logistics provider provider, Amazon established the Global Supply Chain by Amazon in 2016. The Global Supply Chain by Amazon intends to centralise all of Amazon's service offerings around the globe. As a result, consumers would be able to order directly from the firm and have their purchases transported straight to them. As a result, the logistics expenses associated with the intermediaries will be decreased as a result of this. During the year 2017, Amazon purchased Whole Foods in an effort to expand its operations and increase the number of locations it had at its disposal.
Industry 4.0 influence operations management in Amazon
In the course of purchasing products and services, Amazon.com takes into account a range of shipping alternatives. It is possible for organisations to purchase goods directly from first-party vendors. Amazon will be allowed to resell the goods to consumers as their own after they have been sold to the company. While being both a merchant and a record owner, here it performs both roles. This procedure is launched by Amazon, which places electronic purchase requisitions and sends them to the appropriate manufacturers in order for the firm to get the different items. After the items have been received by the manufacturing business, they will be sent to one of the 122 facilities that are currently in operation (Dev, Shankar & Qaiser, 2020). A typical week would consist of Monday being the day that the procedure is started.
Also there are second- or third vendors that collaborate with the organisation and contribute to the spread of goods and services for the organisation as a whole. As an example, if we consider second-party sellers, these are businesses that acquire goods directly from manufacturers and then operate as intermediaries by selling products to the Amazon Corporation. Even if they don't deal with the firm that makes the items or provides the services directly, the business ultimately serves as a MOR in this situation. These are businesses that exclusively utilised Amazon.com as a supply of market for their products in the case of direct sellers. Third-party organisations will be able to expand their consumer base as a result of their brand recognition and confidence in Amazon.com as a result of the marketplace they have earned.
It is up to the vendor central to handle the ordering application procedure for third-party vendors, who may then download purchases in the form of PDFs and Excels. When suppliers obtain reference number for their orders after submitting them to vendor central, they follow up with the customers and subsequently publish their bills on the vendor's website. Following the filing of invoices, providers may expect to receive payment in a period ranging between 90 and 120 days (Abdirad, & Krishnan, 2021). The supplier central system developed by Amazon is very important since it is far more efficient than the systems used by other bricks - and - mortar businesses, which depend on methods such as the mail, which are notoriously sluggish to deliver orders.
Warehousing and distribution facilities
The industry's 121 warehouses are used as temporary storage facilities for the company's purchased goods until they are delivered to their respective clients. Customers may expect to find a wide variety of items in the company's warehouses strategically located in crowded hubs, particularly in metropolitan areas. Among them are 32 outward sortation centres, eight incoming sortation centres, and 71 Amazon Flex service delivery locations. The warehouse's activities begin with the sortation of incoming goods at the inbound sortation facilities. Imported goods are the most common focus of this process. The next step is to ship them to fulfilment centres. Locally created items are often sent directly to fulfilment centres.
Inside of "Amazon's warehouses," fulfilment centres are tasked with selecting, packaging, and shipping products. According on the kind and size of the goods, fulfilment centres might vary widely. Fulfillment centres exist in a wide range of sizes and configurations, including large sortable, small sortable, and large non-sortable (Ghadge et al., 2020). The IND5 fulfilment centre in Indiana deals with hazardous products, while the "Arizona PHX3 facility in Phoenix" is in charge of footwear and clothing, among other things.
Figure 3: Digital Transformation of industry 4.0
(Source: electronicsforu.com, 2020)
Product handling in these storage facilities has been made easier thanks to the use of advanced technology. Belt conveyors are among the most prevalent options. Technology has been a crucial factor in Amazon's success in the warehouses. As recently as 2015, Amazons robots were renamed Kiva systems, which the business first debuted in 2012. The products in the warehouses may be chosen and packaged by robots without the assistance of humans, allowing for a far faster turnaround time. More than 45,000 robots were in use at the company's offices as of 2017. Amazons have the most advanced technology in the market. When it comes to keeping groceries and fresh food in stock, whole foods have played a major role.
Additionally, the corporation has outbound sortation centres that aid in the preparation of the packaged and ready items for delivery (Ivanov & Dolgui, 2020). In order to avoid problems, such as long delays and hefty costs, the corporation might use these centres to determine the optimal route of transportation for its goods. To save money, the corporation may use “local couriers, USPS, and the drivers of the Amazon Flex via this method”.
Automated loading is easier for Amazon since the corporation employs high-tech robots in its facilities. Amazon depends mostly on UPS and FedEx to transfer goods from fulfilment and outgoing facilities to consumers. Due on the sort of item and how quickly it has to be delivered a variety of transportation options exist. Amazon, for example, launched Prime Now, which enables customers to have their purchases delivered within 2 hours after placing an order on the website. This, however, is dependent on the buyer's location in relation to the storage unit and the method of transportation that are readily accessible. In addition to UPS and FedEx, the corporation has its own branded vehicles, which run mostly between the facilities and fulfilment centres (Hahn 2020). Customers may also expect Amazon Prime Air drone delivery for items weighing less than five pounds in addition to the previously mentioned forms of conveyance. In addition to using cutting-edge technology, the corporation employs some more conventional methods to ensure that its products reach clients, particularly in remote regions. Amazon's distribution system and logistics are made more efficient and effective via the use of these numerous strategies.
Industry 4.0 influence organizations
Based on the many tactics used by Amazon in its supply chain and operations management, it is clear that technology is one of the most important components in assuring the performance of the firms. Procurement is one of the most important factors to consider in the supply chain management process. Amazon, for example, developed a vendor central to assure effective procurement of the numerous items that could not otherwise be manufactured by the organisation. There will be no delays or hiccups in the flow of products and services if such a system is put into place. Even while a firm that manufactures its own products or services is the best choice in most cases, specialising in a key strength is the greatest option in other cases. According the agency cost theory, which emphasises on the delegation of secondary responsibilities to the agents in order for them to concentrate on their areas of strength, this is a cause for worry (Garay-Rondero et al. 2020). The availability of items for clients on the Amazon website is the primary area of contention of the Amazon Corporation.
When it comes to assuring the success of a company's operations and supply chain management, technological development is yet another important factor to consider. In the opinion of Novakova and colleagues, the use of technology, such as the usage of artificial intelligence, is a critical component of assuring strategy success inside the logistics and supply chain management. The usage of development technologies and drones by the Amazon Corporation has been cited as one of the primary factors in the company's growth and expansion. When opposed to other businesses that continue to rely on conventional methods such as human labour, Amazon has guaranteed that effectiveness and efficiency are maintained. Purchases can be processed considerably more quickly and efficiently with the use of technology, while at the same time superfluous costs may be eliminated, resulting in increased earnings.
Figure 4: Industry 4.0 and Sustainable Manufacturing
(Source: futurebridge.com, 2018)
The introduction of innovative resources relies heavily on the formation of cooperative connections between corporate partners when executing operations. According to network theory, the creation of strong linkages among organisations that are interconnected is very important. In the case of something like the Amazon firm, where some of the items offered on its website are purchased from 3rd parties and others are simply put up for auction on the supplier's behalf, this idea plays a critical role in determining how much money the company makes. The establishment of a stable connection helps to eliminate the need for repeated supplier changes, so increasing the efficiency of the business.
This field of industry has undergone a great deal of development and progress since the 1960s, when the supply chain idea was first introduced into society. From the implementation of traditional brick-and-mortar tactics to the use of cutting-edge technology, management and logistics have long been regarded as a critical component of successful corporate operations. Using principles such as e-supply management and e-commerce, firms such as Amazon have expanded and have become the largest online retailer in the world, surpassing even Wal-Mart (Hahn, 2020). While facing several obstacles such as access to customers in remote regions and the inability to maintain secure business connections, Supply & Logistics Management continues to be recognised as a critical component of the organizations operational.
Industry 4.0 influence people in Amazon
In terms of optimising performance via the use of technical breakthroughs in order to provide excellent logistics and supply chain management, the Amazon Corporation is one of the firms that has made significant contributions. This multi-tiered inventory management system does have several advantages, such as practical technology and a well-coordinated transportation system, but it still has a few problems that may be resolved to enhance its effectiveness.
For starters, the corporation is increasingly reliant on transportation couriers such as UPS and FedEx, which has a number of ramifications for the organisation. Based on their findings, they determined that “Amazon paid $37.9 billion in shipping charges in 2017”, comparison to the prior year's $27.7 billion and that this figure has been steadily increasing over time. As a consequence of the company's reliance on transportation couriers, the company's brand image has been harmed to some degree (Hofmann et al. 2019). As a result, expanding the industry's transportation system, which comprises both the prime movers and the vehicles, is the best course of action. It is possible that this step, similar to the introduction of the vendor central, which streamlined the company's operations, may prove to be very important in integrating the firms' supply and logistics systems.
Figure 5: Industry 4.0 in Amazon
(Source: smart-industry.net, 2021)
Another advantage of a co-ordination approach over the co-operation approach now in use is that the organisation may attain a greater level of SCM integration. Transparency will be improved as a result of the information being shared with its suppliers using the most up to date technologies. Because it facilitates the flow of goods and information, inter-organizational solidarity is critical, as the network theory posits (Luthra, & Mangla, 2018). Because the corporation is dealing with accountability concerns as a result of outsourcing certain operations, the construction of a unified massive information technology system might be the key to overcoming these difficulties.
The practise of extrapolating far into the future from current history is dangerous, regardless of whether the history is of invention, affiliations, or monetary instances are being shown. The current manufacturing network, in terms of supply chain advancements, looks to make the operation's technique more straightforward. When it comes to technical developments, innovation may manifest itself in a variety of unexpected ways. Alternatively, and more cynically, its implementation might be limited, limiting the effectiveness of Supply Chain 4.0's deployment to underdeveloped countries and contributing to global wage inequalities.
• There are several companies that have benefited greatly from technology improvements in logistics and supply chain management, such as Amazon.com, which is one of the most successful.
• Some issues remain, however, despite the fact that it has a multi-tiered inventory, highly practical technology, and well-coordinated transport system.
• When it comes to transportation couriers like UPS and FedEx, the organisation tends to depend more heavily on these services. According to statista.com, Amazon paid $37.9 billion in shipping costs last year, compared to $27.7 billion the year before, and has been steadily rising since.
• Dependence on delivery services detracts from the company's brand image to some degree. As a result, the corporation should increase its transportation service, which covers both the prime and the trucks. With this shift, organisations' supply and logistics will be more integrated, much as when vendor central was introduced, which improved the company's operations.
Abdirad, M., & Krishnan, K. (2021). Industry 4.0 in logistics and supply chain management: A systematic literature review. Engineering Management Journal, 33(3), 187-201. https://www.tandfonline.com/doi/abs/10.1080/10429247.2020.1783935
Dev, N. K., Shankar, R., & Qaiser, F. H. (2020). Industry 4.0 and circular economy: Operational excellence for sustainable reverse supply chain performance. Resources, Conservation and Recycling, 153, 104583. https://www.sciencedirect.com/science/article/pii/S0921344919304896
Fatorachian, H., & Kazemi, H. (2021). Impact of Industry 4.0 on supply chain performance. Production Planning & Control, 32(1), 63-81. https://www.tandfonline.com/doi/abs/10.1080/09537287.2020.1712487
Garay-Rondero, C.L., Martinez-Flores, J.L., Smith, N.R., Caballero Morales, S.O. & Malacara, A.A. (2020). Digital supply chain model in Industry 4.0, Journal of Manufacturing Technology Management, 31(5), 887-933.
Ghadge, A., Kara, M. E., Moradlou, H., & Goswami, M. (2020). The impact of Industry 4.0 implementation on supply chains. Journal of Manufacturing Technology Management. https://www.emerald.com/insight/content/doi/10.1108/JMTM-10-2019-0368/full/html
Hahn, G. J. (2020). Industry 4.0: a supply chain innovation perspective. International Journal of Production Research, 58(5), 1425-1441. https://www.tandfonline.com/doi/abs/10.1080/00207543.2019.1641642
Hahn, G. J. (2020). Industry 4.0: a supply chain innovation perspective. International Journal of Production Research, 58(5), 1425-1441.
Hofmann, E., Sternberg, H., Chen, H., Pflaum, A., & Prockl, G. (2019). Supply chain management and Industry 4.0: conducting research in the digital age. International Journal of Physical Distribution & Logistics Management, 49(10), 945-955.
Ivanov, D., & Dolgui, A. (2020). A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0. Production Planning & Control, 1-14. https://www.tandfonline.com/doi/abs/10.1080/09537287.2020.1768450
Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829-846. https://www.tandfonline.com/doi/abs/10.1080/00207543.2018.1488086
Luthra, S. & Mangla, S. K. (2018). Evaluating challenges to Industry 4.0 initiatives for supply chain sustainability in emerging economies. Process Safety and Environmental Protection, 117, 168-179.
Manavalan, E., & Jayakrishna, K. (2019). A review of Internet of Things (IoT) embedded sustainable supply chain for industry 4.0 requirements. Computers & Industrial Engineering, 127, 925-953. https://www.sciencedirect.com/science/article/pii/S0360835218305709
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BST714 Strategic and Operational Decision Assignment Sample
To give you an opportunity to obtain first-hand experience in
1. Employing strategic management concepts and analytical tools.
2. Appraising strategic choices and develop and evaluate viable strategic options.
3. Demonstrating a comprehensive understanding of the salient issues in the implementation of strategic change in the internal and external organisational environments.
4. Identifying and evaluating appropriate strategies to manage stakeholder demands.
5. Developing project plans to enable strategy implementation.
If you take this assignment seriously, you will teach yourself many basic principles on strategy, which will stand you in good stead in many subjects, and in many walks of life.
You will be judged on criteria given
For the sector you have been allocated task you should;
1. Review the marketplace characteristics for the sector allocated by using any public domain information available and relevant academic literature search. Select a particular case company to undertake tasks 2-4. Highlight secondary data sources that you will exploit and explain their strengths and weaknesses.
2. Highlight and evaluate the corporate strategy of the organisation selected. Is the corporate strategy effective and is the business model appropriate for the marketplace characteristics?
3. Providing empirical evidence and analysis as appropriate, determine the order winners and market qualifying criteria and classify the supporting operational process using the Hoekstra, and Romme (Buy-to-Order, Make-to-Order, Assemble-to-Order, Make-to-Stock, or Ship-to-Stock) or the Lampel and Mintzberg (Pure Standardisation, Segmented Standardisation, Customised Standardisation, Tailored Customisation, or Pure Customisation) process categorisation system. Is the supporting operational process appropriate for that particular market? If not, what should it be?
4. Develop a change management plan to either z a) realign the case company’s operations strategy or b) improve the case company’s operations strategy, taking into account the change levers for each phase. Is your change plan feasible in days, weeks, months or years? What are the resource implications of your plan?
Your coursework format should be:
The level of detail in your assignment may well be a trade-off between payoff and time. Whatever you include in your assignment has to be “value adding” i.e. do not include wasteful words, figures or tables.
Title Page with student number
Summary (or abstract) (Generally up to 300 words – not included in the word count)
Content – split into four sections as per the four tasks assigned. Each section should be 1000 words equivalent, +/- 10%. In addition, you are encouraged to make use of tables and/or figures. Be selective about the use of tables and figures, and ensure you explain what each table / figure means within the main text. Any tables / figures are in addition to the 1000 words.
Reference list (Not included in the word count)
Bibliography (Not included in the word count)
The Coursework focuses on the strategic and operational decision-making process. The marketplace characteristics for the creative industry will be evaluated, and within the industry, Walt Disney is the selected organization upon which the entire research will be focused. The corporate strategy of Walt Disney will be evaluated for understanding whether the business model of the company justifies the proposed characteristics or not. The order winners and market qualifying criteria will be evaluated, and a supporting operational process will be classified. However, the appropriateness of the supporting operational process will help to understand the suitability of the process with Walt Disney's operational strategies. A change management plan will be used to understand the specific needs in operational strategy.
1. Review of the marketplace characteristics of Creative Industry
Creative industries are established upon the talent, skills, and potentiality of individuals who demonstrate their creativity in their career fields. The industry undertakes several types of sectors such as advertising, architecture, computer services, TV, Photography, radio, film, museums, galleries, libraries, and crafts (Davidparris, 2021). This industry drives a human-centric approach where human creativity and talent are prioritized. Intellectual capital building through primary production input and the output is highly differentiated, which can be characterized as cultural, creative, or artistic. The industry contributes to the national economy and international recognition. It is a source of structural economic shift and socio-economic improvement (Kerr, 2019). However, creativity leads to innovation which contributes to sustainable human development and social inclusion. However, the largest sector among the creative industry is television which contributes to a nation's economic development through newspapers, visual arts, and magazines. The sector accounted for $1.2 trillion in global revenue. The creative industry uses culture as a medium to produce an economy through industrial means. The creativity of individuals and groups is utilized for creating cultural products, which increases the commercial value (Flew, 2017). Creative industries involve the applied art practices for generating profit which helps to create intellectual property. However, the economic system where the income is derived from innovative capabilities and qualities rather than the labour-capital can be considered a creative economy. The annual revenues from the creative industry sectors generate approximately US$2,250million (Unesco, 2017). The sector represents 10% of the global GDP. The requirements of an external environment help the organizations under the creative industry manage the strategies for business improvement. The concept of strategic management in this industry lies in performance and innovation. Organizations need to innovate alternative products to promote creativity in the strategic management process.
Based on internal perspectives of creative industries, it can be ascertained that the creative industry is recognized as the carrier and producer of symbolic content. The industry faces higher demand uncertainty and strong volatility, which generates higher risks. The market conditions of the services and goods are distinguished from the ordinary ones. Moreover, the industry constantly produces novelty which breeds innovation. Several discussions proposed that the creative industry is more innovative than the manufacturing and other industries. The intellectual property generated by this industry confirms its identity as one of the main sources of wealth generation. The industry has a polarized structure that surrounds few large corporations which are vertically integrated. However, the external perspectives also define several features of the marketplace. The industry is fastest growing than other types of industries in terms of value and employability. It is advantageous as it depends upon the local production system and global connection. The industry contributes to the growth of other industries through linkages. Furthermore, it is significant in both aspects of production and innovation.
However, the creative enterprises are considered a bespoke set of initiatives to connect access for ambitious screen businesses for coursework assignment help. Continuous training of performance and networks for connections help to achieve business growth in the creative industry. Creativity and innovation enable path-breaking discovery, which helps entrepreneurs acquire a perspective for solving operational and financial problems (Patterson, 2018). Focusing largely upon the entertainment zone, the creative industry provides an opportunity to use the talents through effective performance for achieving huge profits.
The American multinational mass media company Walt Disney is well recognized in the creative industry. The company aims to entertain, inspire and inform people around the world by reflecting iconic brands, unparalleled storytelling, innovative technologies, and creative minds (Thewaltdisneycompany, 2021). The company has reputed itself among the premier entertainment companies in the world. The global platform it shares attributes its recognition, economic growth, and continuous progression. However, to ensure growth, the strong points of Walt Disney are needed to be evaluated. The well-known reputation of the company, its brand image, the logo has been witnessing its heritage. The high-quality content which it produces and the high-budget projects which it undertakes retain its continuous cash flow. For obtaining high-quality raw materials, the company is associated with the best suppliers. The creative team of Walt Disney, including the writers, artists, graphic designers, and producers, is the strength of the company (Dana, 2021). The strengths show several opportunities for the company. The brand image can be used for promotion. Innovative technologies can be brought through the company as it expertise over technology (Madej, 2019). The collaborative approach can help the company to gain a competitive advantage in the market. The PESTLE analysis has also been done to gather more knowledge . To improve marketing techniques, the company can invest economy as it is financially stable.
The company has several weak points also. The company has to spend a significant amount of money on training as it is always upgrading its mechanism with innovative technology. The poor financial planning of the company has led to suffering significant losses. However, the demand for the products upon which the company spends large merchandise varies with changing market demands (Baker, 2018). The company lacks promotional and proper marketing activities, which are needed to survive in a competitive market. The problem of incompetency can lead to failure of using the resources properly. The non-specificity of the company can lead to significant issues as the company creates linkages with different trades, but it does not master over a particular trade (Edrawsoft, 2021). It generates issues to work on different ranges of products. Evaluation of the company's strengths and weaknesses has been done to determine a proper corporate strategy for the company, which will help align the company with marketplace characteristics and enhance its reputation in the creative industry .
2. Evaluation of the corporate strategy of Walt Disney
Walt Disney has become an inseparable part of a creative industry that has expanded its business region worldwide through its effective corporate strategy. The company follows a specific thinking style that includes analyzing the problem, generating ideas, evaluating ideas and construction, and critical understanding a plan of action. Disney primarily targets 4 to 12 years old boys and girls (Weebly. 2021).Among them, one part is still indulged in childhood, and another part is at the peak of teenage. The diverse needs from the customers to the company's entertainment zone have led it to create innovative ideas for entrainment. The company aims to produce products and services which are different from its competitors. The major competitors of the company are Sony, ViacomCBS, Comcast, and Warner Media (Craft, 2021).
Figure 1: Competitors of Walt Disney company
Source : (Craft, 2021)
The company can gain profit from sustainable development by using synergy to increase value. The corporate strategies of Disney may include horizontal, vertical, and geographic expansion. The company visions to achieve long-term success by improving the decision-making process and creating diversification in managing creativity and brand image. Disney values the vertical integration process, which helps the company to integrate the production of movies and financial investment in television (Iera, 2020). A wider level of distribution provided Disney with quick success and larger access to expand its corporate zone. However, the sustainable approach in corporate strategy helps the company to gain cost-effective benefits. Walt Disney has the largest media and entertainment zone, where 11parks, 43 resorts, and 4 cruise lines are managed to increase the production level (Ivypanda, 2020). The corporate strategy of the company is dependent upon the competitive advantage gaining by managing diversified business operations. Within different geographic locations, the company expanded its business to use the opportunities in Asia-Pacific and Europe. This accounts for a significant value for the company. Moreover, the company invests in various market segments, which have created an opportunity for the company to increase its profit range by supporting other trades.
The company follows the 'go-green agenda. The theme parks of Disney are promoting the development of a green environment, which can help the company to drive a sustainable approach. Corporate social responsibility is also significant in this case. Walt Disney manages its CSR across the world by providing donations and encouraging green environment creation. Diversification in operation management decreases the potential risk in business. The company targeted to reduce 50% greenhouse gas emissions by 2020 (Blooloop. 2021). To retain its workers in the theme park, the company uses a low-cost strategy. It also applies forward and backward integration for controlling the distribution network.
For policy formulation, the company follows a competitive dynamic strategy which helps the company to respond in various ways to dynamics in the creative industry. The high-tech strategy to increasing the visual experience of the customers is considerably significant (Ivypanda, 2020). In resource acquisition, the company manages the suppliers through multiple network channels, which support the company to acquire raw materials of low cost and high quality. The diversified strategy of the company increases its market share and helps the company expand at the international level. Disney's operations help expand geographic regions while minimizing the potential risk of loss (Ivypanda, 2020). However, the company uses a joint venture to enter the new market and apply an integrated strategy for accumulating merchandise, hotels, accommodation, and dining. Walt Disney focuses upon technological innovation, high-quality content creation, global expansion, and consumer distribution for managing its corporate strategy (Thewaltdisneycompany, 2018). The company's corporate strategy also includes stakeholder management techniques where the company manages the demands of the consumers by engaging the employees in giving better service to its customers.
Effectiveness of corporate strategy
The corporate strategy of Walt Disney company is significantly effective as the company generated revenue of 16.5 billion USD in 2020. The market media networks of the company had a revenue of 28.39 billion USD, and the direct to consumers and international revenue grew up to 16.97 billion USD (Stoll, 2021b). The company uses a generic strategy for gaining a competitive advantage which has led it to grow through creativity and innovation. The company aims to achieve high profits through an intensive competitive strategy (Williams, 2019). The revenue growth also reflects the efforts of the company in strategic management. Increased operational efficiency and dedication of the employees have motivated the company to emerge globally as a reputable company. The company employs 201,000 employees who effectively manage the corporate strategy of the company across different geographical regions. In 2020, the company achieved a net worth of 201.55 billion USD (Stoll, 2021a). The company manages corporate strategy through investing in different markets, which help the company to increase its profit rate by managing businesses across different countries like China, Japan, France, California, the US, and many more. The company's diversification growth strategy best describes its corporate strategies as it has allowed the company to create a theme park, produce the movie, broadcast television and merchandise in industries.
Figure 2: Revenue of Walt Disney company
Source: (Stoll, 2021b)
Aligning with the characteristics of the creative industry
Walt Disney's corporate strategy for business models aligns with the characteristics of the creative marketplace industry. The company produces symbolic content, which gives the company worldwide recognition. Walt Disney often faces high demands in the market, and the uncertainty of the demand depends upon the changing business environment. The company faces higher risks in this case, but its effective corporate strategy helps the company to manage its continuous improvement. However, the stakeholders of the company, who are the consumers, employees, and managing team, provide support to overcome challenging situations for the company. Production system and its services are different from other trades as it attracts the customers upon the basis of talent, creativity, skills, and performance. The company helps in generating intellectual property, which helps it to grow its economic standards. Incorporating innovative technologies in the business, the company creates a distinguished way for business management. However, the company is among the fastest-growing organizations around the world, which increases its value continuously and improves employability.
3. Determination of the order winners and marker qualifying criteria
The order winners and qualifiers are time-specific and market-specific. The company's order winning capability depends upon the competitiveness. Walt Disney grows its sales by winning orders, and it led to a positive impact on the sales performance of the company. The diversification strategy of the company makes a difference in its product ranges and attracts the customers towards the qualified offered products. The intensive growth strategy of the company helps in product development, and it helps to offer new products in the existing market. The brand positioning strategy pays attention to the experience of the consumers, and this helps the creative minds to think of innovative ideas for implementation (Yao, 2017). However, the competitive advantage of Walt Disney can be considered as order winning characteristics. It involves intense competition within the creative industry and provides quality content to its consumers.
Walt Disney incorporates advanced technological innovations in its contents which provides the best visual experiences to its customers. The movies it produces or the television shows it hosts make the audience spellbound. The magical experience within the movies it provides to the children increases their attraction towards the production of Walt Disney. However, the theme parks of Walt Disney also provide a superior visual experience to the views. This has possible due to the advanced and unique technology which Walt Disney has utilized in its products and services (Mitchell, 2020). The different, unique, and innovative content production helps to gain a competitive advantage for the company. The advanced IoT services in the Disney parks providean immersive experience to the audience, which provides Walt Disney, a stable place in the global market among its competitors.
Classification of the supporting operational process using Lampen and Mintzberg process categorization system
The concept regarding strategic planning and implementation defines an organization's capability to support its operational processes. Lampen and Mintzberg's strategic process planning concept demonstrates that a proper strategy helps integrate the organization's goals, action sequences, and policies into a cohesive whole (Mintzberg et al. 2003). It helps to accumulate and arrange all the resources for planning a unique strategy that improves internal competencies and helps in change management. For understanding the competitive strategies, Walt Disney Company has to notice the contingent moves of the intelligent opponents, which will help the company manage the anticipated changes in the business environment. Several segments will help to understand the supporting operational processes.
Pure Standardization: The pure standardization process correlates with the approach of "one size fits all". The company has to manage equality in services, prices, distribution channels, and promotional programs to achieve operational efficiency. In the case of Walt Disney, the segments operate through diversification strategy within a related-constrained.
Segmented Standardization: The needs of different clusters of buyers are focused upon segmented standardization. Within a minimum number of features, a standardized product is offered. Walt Disney Company has segmented media networks, parks and resorts, customer products, and interactive media and studio entertainment by focusing upon the standard products and service delivery approach to its consumers.
Customized Standardization: The customization adds value for the consumers. Standardization of the customized products may help to achieve higher satisfaction of the consumers. Looking into the needs of the customers can help Walt Disney company to find opportunities to provide the common value of the customized products and services.
Tailored Customization: This process helps in planning and creating products as per the individual specifications. The company operates globally. Therefore individual specifications will not be possible while planning and building products and services.
Pure Customization: The pure customization process provides specifically tailored services to the customers. A distinguished pricing strategy, distribution channel, and promotion strategy is managed for the pure customization process. The corporate strategy of Walt Disney specifies several types of segments, but pure customization will not be applicable as the company operates through functional groups and geographical divisions (Ivypanda. 2020).
Evaluation of the appropriateness of supporting operational process
The process of Lampen and Mintzberg's strategic planning has given several ideas on standardization and customization of customers' needs for strategic management. The analysis of the pure standardization process shows that Walt Disney has to follow the approach "one size fits all", but as the company's different segments target specific objectives like media networks for entertainment products and parks for amusement, it will not be possible for the company to apply the same strategy to manage all the segments. However, segmented standardization will be possible as the company operates through distinctive mediums. The company can target customized needs for the customers for a specific geographical region. However, the pure and tailored customization will not be applicable for the company as it works upon a global platform. The company uses a specific organizational structure that capitalizes on the competencies of diversified business segments (Williams, 2019). Among the different operational processes, the implementation of Segmented Standardization will be effective as the company itself divides the business type segments, functional groups, and geographical divisions. Depending upon each segment, the needs and requirements of customers will be evaluated. The segmented standardization process will help to specify the needs of consumers across the different geographical divisions, which will promote the organization to develop strategic planning for gaining a competitive advantage. However, the technological innovations in its products and services will help to increase the experience of the consumers. Gaining a competitive advantage through the usage of technology will help the company to standardization of each segment. The strategic planning will ultimately help the company to retain its reputation across the world.
4. Change Management Plan
Change management plan mainly directs to produce something different (Turner,2019). The different factors associated with change management are people, processes and technology. The role of the human resource manager is responsible for making the people adapt to change, and the processes must have a smooth transition to change and technology to automate the change process. The different phases of the change management process using the ADKAR model are awareness where the need for change is necessary to be conveyed to the employees. Then, the desire to support change and the knowledge about the importance of the change process is necessary to be identified. The final phase is ability and reinforcement, where the ability of the employees is judged, and the behaviour is reinforced within the change management process (Personio, 2021).
• Proposed change: Walt Disney is one of the most renowned organizations in the creative sector, with its presence all over the world. Recently, the ongoing Covid-19 pandemic has decreased the cost margins due to the closing of theatres. In such a scenario, the organization must realign the operational strategy and utilize the online platforms more efficiently for their services. The company must have a separate creative team dedicated to its online services and to improve its technology and media services with more personalized features and choices than ever before. Disney creates innovative and engaging physical products in several categories like toys, t-shirts. They have four strategic brand priorities of Media, Classic Entertainment, Pixar Animation and Star Wars (Disney, 2021). The Disney+ channel is the original subscription of Disney services through online apps and televisions. It is necessary to better utilize the platform for more innovative products and original Disney content at a low cost. Disney can use this platform for advertising their products like games, toys or t-shirts that bring to life several Disney characters.
• Need for change: The company has achieved huge success in their Direct-To-Consumer business, and the success of Disney+ has accelerated the need for further regenerating the business strategies to facilitate maximum growth for the organization and utilizing the online platforms for creating original content for global audiences.
• Intended outcomes: The intended outcome is accelerated growth during the pandemic where people are not visiting physical stores or going to movie theatres. Using an online platform will help Walt Disney to continue with its journey of growth and maintain its brand image in the global arena.
• Estimated duration: The people who need to be informed about the change are the creative team experts and the experts in the media segment, and the technologically expert team. For implementing the change, a new operational process design needs to be implemented where the original contents need to be considered more for an online audience. The media and entertainment sector must collaborate with Direct-To Consumer Product services, and all the advertising are to be displayed through the online platforms. The OTT platforms are creating better opportunities and utilizing it will create more opportunities for Disney. The time estimation is about six months to accommodate all the contents towards online presentations. The media of all the services must be centralized to be using the online sector, which is a time-consuming process and will require additional 3 months.
• Estimated costs: The cost or budget for the change is huge where all the international media channels are brought in direct-to-consumer products through the
Disney+ channel. On-demand video and some free subscriptions will be provided for consumers.
• Resources: As per the term of human resources, manpower, quality developers and marketers will be needed.
By following the ADKAR model of change management, the five levers defined in the change management plan are communication plan, Sponsor Roadmap, Coaching Plan, Training Plan and Resistance Management Plan (Creasey, 2021). The communication plan is to inform about the change process and the need for change to the employees. A proper communication plan is necessary for enforcing the change process in business effectively. The contents of the communication plan must identify the need for change, the consequences if the change is not made, how the change is made and what are the outcomes of change. The Sponsor Roadmap is about the specific actions that need to be taken according to the instructions of senior leaders. Sponsorship is related to providing direction, mission and commitment towards the change process. The employees need information from their sponsors of change. A proper coalition between sponsor is required to have a sustainable change management process. A proper coaching Plan is necessary where the managers must give assistance regarding the positive effects of change and how it will affect the employees. The roles played by a manager are the liaison, communicator, coach and mentor who facilitate the change process and advocate the need for change in employees. The training plan is essential to provide clear instructions for employees regarding the change and how it needs to be implemented. If any new technology is implemented and operational strategies occur, proper training of employees is necessary to cope with the change. Resistance Management plan is a crucial lever for the change process as it is common to face some reluctance from the employees towards change. People usually fear change as the outcomes are not known. Identifying the root causes for change and proactively look for alternatives can be helpful in business perspectives.
Figure 3: Levers of the change management plan
Source: (Creasey, 2021)
Table 1: Change management plan
Source: (Developed by the author)
The different characteristics of the creative industry have been aligned with Walt Disney's business model, which created a comprehensive view of the specific aspects of the company's corporate strategy. The strengths and weaknesses of the company have been evaluated to create an understanding of the organization's present situation. The corporate strategy discussion of Walt Disney company has helped to classify the supporting operational process. The order winners and market qualifying criteria have also been determined to use them while examining the appropriateness of supporting the operational process. However, the change management plan has been addressed, taking into account the change levers for each
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BE553 Principles of International Marketing Assignment Sample
The assessment for the module will follow the individual coursework
Students at the beginning of the course will be given the allocated assignments.
Students will receive an international marketing case and will be required to analyse the case and prepare responses to questions that will be assigned by the Lecturer. The case will allow students to demonstrate their knowledge and understanding of the key concepts and theories discussed in the module, testing their conceptual, analytical and communication skills.
The individual coursework will present in detail the analysis and discussion of the proposed international marketing issues for the international marketing case. The coursework report will be 3000 words in length.
Principles of International Marketing being will require the student to complete an individual coursework and pass it to successfully complete the diploma stage of the programme. The coursework will test the student’s understanding of key issues and concepts covered in the module
Coursework Submission Requirements
The assignment should not exceed 3000 words in length. It should be word- processed, double spaced, and written in an appropriate academic style.
The assignment should have a clear introduction and a conclusion. You should ensure that you have fully acknowledged the work of others in the body of the text. Coursework will be processed with plagiarism detection software.
The assignment should include a full list of references for all articles, books and other sources (e.g., Internet sites) that have been cited in the assignment.
All coursework will be anonymous (unless otherwise specified in the ‘Assessment’ section of this module outline), so you should ensure that only your registration number is included in the header.
Tesco is an international grocery company that is facing various issues regarding its international marketing strategy. The core purpose of the study is to understand the critical issues faced by Tesco and the strategies that are followed by the company to sustain itself in the international market. Due to the outbreak of a pandemic, international business is facing challenges because of the poor supply chain, strict health policies in the organization, strict rules and regulations in the overseas market (Samiee and Chirapanda, 2019). Analysis of international marketing theory is crucial for companies to gain a competitive advantage. The different cultural factors of different nations are a challenging factor for Tesco, which is affecting the organization to open new stores in this region .
Overview of Tesco
Tesco is a multinational grocery company, which is located in England. For assignment help As per the revenue, it is the thyroid largest company worldwide. Tesco was founded by Jack Cohen in 1919. Tesco is spread in Ireland, the Czech Republic, Slovakia, Hungary and the United Kingdom. The products of Tesco are Hypermarket, Supermarket, and superstore. In the year 2021, the organization earned £6.147 billion. The subsidiaries of Tesco are F&F, Booker Group, Tesco mobile, and Tesco bank. The organization is listed in the UK stock market. The company has been expanding the business since 1991, and presently, it is spread in 11 countries (Tesco.com, 2022).
Issues associated with developing international marketing strategies
Tesco is facing challenges regarding managing global teams. Being a multinational company, Tesco has to maintain a global team for planning its marketing strategy. The organization needs to keep in mind the cultural factor of other nations when launching a new product in an overseas market. For instance, the culture of Asian people is completely different from the UK region. Therefore, the marketing strategy of UK marketing would not work in the Asian region (Sharma et al. 2020). Apart from that, the Chinese companies provide effective service at an affordable price. Therefore, it is difficult for Tesco to sell the product in other countries at a cheap rate. In addition to that, the purchasing behaviour of the customers depends on the geographical region; therefore, Tesco is facing a problem understanding the buying behaviour of the customers of Asian countries. On the other hand, Alibaba is a tough competitor of Tesco in the Chinese region. For this reason, it is difficult for Tesco to influence the customers of Alibaba (Tesco.com, 2022). Similarly, Sainsbarry and ASDA are giant companies in the UK that provide better retailing services to gain a competitive advantage in the international market.
Evaluate the impact of contextual influences on international marketing decision
The present scenario of the international market has changed, and it has impacted the whole business process (Wettstein et al. 2019). For instance, international businesses are following the digital marketing strategy to reach out to the targeted customers. Due to this reason, there is a boom in the e-commerce industry. Therefore, the traditional marketing strategy is not effective in the current scenario. On the other hand, international businesses are following machine learning and artificial intelligence to understand the new trends in the market and collect data regarding consumer behaviour. The trade war among the countries poorly affected the internal business market. Therefore, a new and innovative strategy is essential for the long term sustainability of the businesses in the international market. Multinational companies are following advanced technology to get a competitive advantage and provide better service to the customers (Morgan et al.,2019). The technology also saves time and money, which is beneficial for international business entities in the present competitive market. It is considered that every company will be a technological company in the near future. Therefore adopting the new technology helps the organization to predict future challenges and take necessary steps based on the situation.
Impact of Covid on the international marketing of Tesco
Due to the outbreak of a pandemic, the supply chain management was fully disrupted, which is the works affecting factor for Tesco in the international market. Tesco is facing difficulties contacting its suppliers, which is affecting their supply chain strategy. However, the sales volume of Tesco will increase by 70% in the year 2020 due to the high demand of customers. Consumers prefer to get the product at their doorstep. They are using the online platform to book the product. For this reason, Tesco is following the online delivery process to follow the Covid norm and satisfy the customers as well.
Due to the pandemic, the operating cost of Tesco is rising over the period, which affects the marketing of the company. The transportation cost has been rising over the last two years, which directly impacts the pricing of the finished product (Maciel et al. 2020). If the transportation cause rises, the cost of the product will automatically increase. Besides, the lockdown is the major cause of higher maintenance costs, which affects the marketing strategy of the company.
Tesco is facing problems from the political side. The government has announced a lockdown around the year. The stores of Tesco are closed for a few months because of lockdown, which decreased the company's productivity and performance. Because of the pandemic, consumer behaviour changes drastically, which affects the organization's sales volume. The physical stores have been closed for a few months, and the customers are using online platforms to get the product at their doorstep (Chaube, 2020). However, sudden changes in consumer behaviour affect Tesco's business strategy. In this situation, the E-commerce industry is gaining a competitive advantage, and it is a negative factor for the grocer retail companies.
International Marketing decisions
According to Paul and Mas (2020), International marketing decisions can be defined as a scope of rendering marketing activities regarding the product and services of the enterprise. International marketing decisions are similar to domestic marketing decisions, with the exception that all marketing decisions are based on overseas customers. More specifically, decisions about "product, price, promotion, and distribution" are made for overseas buyers. There are major decision-making processes, and enterprises choose to expand into new markets. Firstly, it is by taking a look at the global marketing landscape. The International Trade System such as Tariffs charge, Regional Free Trade etc. is necessary for consideration. For instance, the most ingenious method the Japanese have devised for keeping foreign manufacturers out of pleading. Because Japanese skin is unique, foreign cosmetics businesses test their products before selling them in Japan. Secondly, it is deciding whether to go global or not (Jiwaji.edu, 2022).
Domestic operations are simpler and safer. There required no learning of foreign laws and rules, no requirement for dealing with unstable currencies and businesses in the home markets rarely face legal and political issues. However, entering into a foreign market requires all these considerations. Thus, businesses must weigh all the risks and opportunities to operate globally. Thirdly, the international decision-making process is based on deciding in which market one business will enter. Companies are liable to define their marketing and policies objectives (Katsikeas et al. 2019). For instance, the volume of foreign sales the company wants to make. In addition, the decision will be whether it wants to go with a small or large share. However, the company may face problems while developing a marketing mix such as lack of transparency, non-linear effects, multicollinearity and lack of standards of measurement.
According to Wadeson (2020), a Multinational enterprise's existence and operation are explained by internalization theory. It aids in the comprehension of the multinational enterprise's boundaries, contact with the "external environment, and internal organizational architecture". The theory mainly emphasizes explaining the existence of the enterprise. This is the most effective way of controlling and controlling the set of activities instead of market exchange. As per the theory, it has been described that enterprise only grows when it absorbs the markets effectively and acknowledges the cost which it will bear entering into the market and turning them into benefits.
The fundamentals of the internationalization theory are combined with innovation and trade. This explains "location and relative success to the firms". By applying this into the marketing strategy, many businesses are proven to be successful in explaining their growth and its development overseas. Kotler model is one such model which showed the direction for international business sees opportunities and barriers coming forth their development in the overseas market (Kotler, 2018). Individuals and organizations gain what they require and desire through the generation, offering, and trade of high-value products with their peers in a social and administrative process. Entering a new market requires an effort of knowing the need and demand for the products. In addition, it also requires whether the home markets company is able to fulfil the requirement of the home markets or not. The theory suggests what action must be taken by the company which can enhance the growth in the overseas market. International companies such as Apple, Coca-cola and others are successful brands that have over 40 markets in the foreign market (Jiwaji.edu, 2022).
International Marketing environment of Tesco
Tesco is an international leader and deals in large market. Thus, political stability and government regulations plays an important role in political factors (Tescoplc.com, 2022). The political factors includes relevant legislation, taxation rates and its abilities to expand in the foreign market. Government policies pushes the merchants in stimulating from financial uncertainty. This company creates an effective interest for it diversified products along with creating job possibilities.
Economic factors play an important role for Tesco. The economic factors are associated with GDP of the country and interest of other countries. In addition, the economic issues are concerned with "leverage costs, demand, profits, and pricing". Thus, entering into foreign market it is necessary for the company to be informed about any changes in policies of foreign market, and adjustments in the taxation which has the capacity to impact its financial availability. Tesco has a market share of about 30% in its home market, having control over overseas market policies must be considered.
There is a new trend that occurred. International consumers have shifted to bulk purchasing with the effect of societal development. This is the reason to meet the demand for international customers this company has increased its revenue for the items which are available to the market (Adamyk, 2019). It is undeniable that demands for food and services are always impacted with the attitudes and purchasing behaviour of the customers. This is the reason to cope up with the behaviour of the customers, this company is adjusting to provide organic foods to the customers and trying to meet the changing habits of the customers.
Tesco has grasped opportunity with the presence of technology in the current era. With the introduction of internet it has created a streamline to deliver its product to the customer effectively. Customers are more attracted with the services of the company as they get easy availability of the product when they want (Tescoplc.com, 2022). Technology application of the company allowed to reduce labour cost and minimise all the production cost. This company has huge amount spent on energy efficiencies to meet its significant goal.
Legal environment at the international level is much strict for Tesco Plc. At present due to the pandemic outbreak the international rules and regulations became stricter. However, there are some countries with liberal trade policies like Bangladesh, India and many others, have helped Tesco Plc expanding and developing business in a better way.
Many countries have strict legislation for carbon footprint (Tescoplc.com, 2022). Tesco itself, operating in home markets, has followed the climate change Act. Tesco is in an attempt to mitigate the carbon emission due efficiently operating in the foreign market. In addition, it is opting to reduce 50 % of its waste generated in its stores by 2025 in order to rise pressure on businesses to address “environmental challenges and implement business” practices that improve humanity (Adamyk, 2019). Tesco is also reducing waste generated in their stores by encouraging customers to be more socially conscious.
The application of 4P of marketing mix
Tesco's international marketing strategy examines the brand is utilising the marketing mix framework, which involves the four Ps "(Product, Price, Place, and Promotion)". Tesco's “marketing mix-based business techniques aid the brand's success in the overseas market.
Product: Tesco mainly deals in products such as bakery products, frozen food, gaming products, technological products, toys products, gift products, books, clothing and Jewellery, leisure and sports products and others (Tescoplc.com, 2022).
Price: To remain competitive in the international market, this company maintains providing quality products at a cheap rate. Tesco collaborates with its suppliers to improvise and streamline the supply chain in order to lower pricing. Tesco used to maintain low and affordable which results a great customer input. This company has reduced “promotional spending” to drop its product prices even more.
Place: Considering the overseas market, this company has expanded to Thailand, South Korea, China, Slovakia and Japan (Tescoplc.com, 2022). This company used to sell its products in these overseas markets through online and offline delivery. This enables to have a great connection between the customers and the business. Online customers feel easy to have Tesco products when they want to.
Promotion: Tesco has a potential brand image that relies on low prices. To achieve this, it has a great practice of promotional activities which creates awareness about the products to the customers. This company uses televisions ads, hoarding and charitable events. Its loyalty cards, namely Tesco Clubcard, help to target and segment its customers.
By analyzing the barriers and opportunities for the products in the overseas markets, Tesco to sustain in the overseas market and overcome the impact of the covid-19 crisis, opt to follow the recommendation which is determined.
Creating new product lines
Analyzing the marketing mix, Tesco must take the initiative to launch delivering of a "new line of farm products". The rebranding of items, for instance, pork, fish, beef, will effectively appeal to customers and be retained for a long time.
Shifting to the digital marketing
In the era of technology, a mega business must grab for the platform which will allow informing about all the innovations and new launch of the product to the customers at an instant. The marketing strategy will be flourished when this company adopts social media practices for advertising its product. In the last few decades, its competitors, Asda has acquired a large market share and this company continues to compete other large food companies with social media support. Tesco need to drop traditional marketing strategy and adopt digital platform to promote and attract its customers with substantial deals.
In its revival, the brand sees a critical necessity to focus on "the individual experience." Tesco's marketing staffs has kept coming up with a “slew of brilliant marketing concepts to go along with this strategy”. This company must provide its customers with customized products.
From the above discussion, it can be concluded that it is difficult for Tesco to expand its business in the international market and remain competitive for a long time. However, the Pestle analysis gives the organization in-depth knowledge regarding the international business market. Analysis of the 4Ps marketing strategy proved beneficial for the company taking a holistic approach and making effective decisions to sustain in the international market. The conducted study has shown the way it can take necessary steps to attract its customers and remove the barriers in the international market.
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