...drafting the bill for privatising BA .Bob Ayling was a visionary whose actions revolved around bring down the cost of operation there by to increase profitability even when BA was doing well. However on the other side he failed to value his employees, which ultimately led to the failure of him as a CEO. Things went well during Ayling’s Tenure. * Identified the need to cut costs for becoming a better performing airlines * Initiated the industry transforming alliance with American Airlines * Held on to his stance despite strong oppositions showing a determined face of BA * Rebrand BA to make it more attractive to international travellers * Later, modified BA’s strategies as when problems cropped up Things not went well during Ayling’s Tenure. * He implemented cost-cutting without taking into consideration the stakeholder’ point of view. The employees’ salary cuts will never lead to their better performance unless they are given any other incentive to perform better. Maybe he should have restricted their pay by putting more pay per performance quotient put into it. * No communication of the organization vision to the employees which led to their disillusionment * He missed out on the people touch points - both employee and customer wise. A fatal error in a service industry. * He failed to create a competent rung of top management around him. * He should have had an acceptability test before rebranding BA. He grossly failed to understand the...
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...Case Study Presented to Associate Prof. Guntalee Ruenrom, Ph.D. & Ajarn Yayus Mak Prepared by MBA English Program #3 Kotchaphan | Laochareon | 518 27814 26 | Ratanapong | Sanpote | 518 29421 26 | Thanan | Sastarasadhit | 518 28530 26 | Karit | Yuvaboon | 518 28094 26 | For the Course of 2605691 Seminar in Marketing Management Faculty of Commerce and Accountancy Chulalongkorn University QUESTION 1 : Identify the primary issues in the case. Between 1997 and 2005 a series of crisis severely challenged the hotel industry and stake holders, especially in asia region, which never before have so many issues that causes a crisis that has lasted that long With majority of properties located in asia, Banyan tree was hit hard by the crisis causing poor profitability in 2005. Foreseeing the risk of focusing its core operation in one region, Mr.Ho, CEO of Banyan tree initiates the expansion plan of banyan tree to open new properties in new location in order to minimize the risks. The IPO was executed to increase the capital for this expansion. However, the key issue of this aggressive expansion in how banyan tree can maintain its respective qualities across the chain due to: * The limitation of manpower and infrastructure to consistently deliver banyan Tree’s experience * The danger of bran dilution in case of banyan tree expands into territories that may have a negative impact on the brand. Its very important that...
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...company stores. The investment would allow each store an additional 20 hours of labor per week. The objective is to improve service speeds and in turn increase customer satisfaction. We recommend that Starbucks proceed with the investment in labor. Customer service and satisfaction is one of Starbucks’ core competencies. If Day does not address the decline in satisfaction levels, Starbucks can potentially dilute its brand and ultimately lose market share reversing the sales growth achievements attained in the last eleven years. Starbucks’ Success In the last decade, Starbucks had consecutively achieved 5% or higher in comparable store sales growth. This success was due to several factors, primarily to its value proposition. Starbucks’ value proposition consisted of three components: the quality of coffee, the service provided, and store atmosphere. Starbucks prided itself in serving the highest-quality coffee in the industry. To maintain its coffee exacting standards, the company strived to control as much of the supply chain as it could. It worked directly with growers to purchase raw coffee beans; oversaw the custom roasting process; and it controlled the distribution of coffee to its stores. This control allowed it provide consistently high quality coffee products. The second component was customer service, also referred to as “customer intimacy.” The goal was for partners to connect with...
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...Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad CAN YOU SUMMARIZE YOUR COMPANY’S STRATEGY in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just Getty Images and IPNstock 82 Harvard Business Review | April 2008 | hbr.org It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to “grow to 17,000 financial advisers by 2012 [from about 10,000 today] by offering trusted and convenient face-to-face financial advice to conservative individual investors who delegate their financial decisions, through a national network of onefinancial-adviser...
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...captures value,[1] in economic, social, cultural or other contexts. The process of business model construction is part of business strategy. In theory and practice, the term business model is used for a broad range of informal and formal descriptions to represent core aspects of abusiness, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies. revenue model A description of how a business will earn income, produce profits and generate a higher than average return on investment. In business, a revenue model is generally used for mid and long-term projections of a company's profit potential and operation. the system design by which a business monetizes its services.[1] Examples of revenue models include: * Freemium * Subscription * Affiliate marketing * Ad-funded * Lead generation * Online shopping VALUE PROPOSITION DEFINITION OF 'VALUE PROPOSITION' A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. INVESTOPEDIA EXPLAINS 'VALUE PROPOSITION' Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition...
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...competitors. The focal point of a company’s strategy should be its target customers. 1-2 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers’ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product leadership strategy attempts to offer higher quality products than its competitors. 1-3 A person in a line position is directly involved in achieving the basic objectives of the organization. A person in a staff position provides services and assistance to other parts of the organization, but is not directly involved in achieving the basic objectives of the organization. 1-4 The Chief Financial Officer is responsible for providing timely and relevant data to support planning and control activities and for preparing financial statements for external users. 1-5 The three main categories of inventories in a manufacturing company are raw materials, work in process, and finished goods. 1-6 The five steps in the lean thinking model are: (1) identify value in specific products and services; (2) identify the business process that delivers value; (3) organize work arrangements around the flow of the business process; (4) create a pull system...
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...www.hbr.org It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad Reprint R0804E It’s a dirty little secret: Most executives cannot articulate the objective, scope, and advantage of their business in a simple statement. If they can’t, neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad COPYRIGHT © 2008 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Can you summarize your company’s strategy in 35 words or less? If so, would your colleagues put it the same way? It is our experience that very few executives can honestly answer these simple questions in the affirmative. And the companies that those executives work for are often the most successful in their industry. One is Edward Jones, a St. Louis–based brokerage firm with which one of us has been involved for more than 10 years. The fourth-largest brokerage in the United States, Jones has quadrupled its market share during the past two decades, has consistently outperformed its rivals in terms of ROI through bull and bear markets, and has been a fixture on Fortune’s list of the top companies to work for. It’s a safe bet that just about every one of its 37,000 employees could express the company’s succinct strategy statement: Jones aims to...
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...get privatized and later on joined the firm. He moved up the ladder to become the CEO as a favourite of his predecessor of Lord King.Bob Ayling mainly focussed on cutting costs rather than concentrating on the welfare of his employees. That’s the main reason for his failure as a CEO Things went well during Ayling’s Tenure. * Identified the need to cut costs for becoming a better performing airlines * Initiated the industry transforming alliance with American Airlines * Later, modified BA’s strategies as when problems cropped up Things not went well during Ayling’s Tenure. * No communication of the organization vision to the employees which led to their disillusionment * He missed out on the people touch points - both employee and customer wise. A fatal error in a service industry. * He failed to create a competent rung of top management around him. * He should have had an acceptability test before rebranding BA. He grossly failed to understand the British sentiments and pride and alienated opinion leaders like Thatcher. 2. Ayling is an Authoritative Leader. He has high concern for production and very low concern towards people. This makes him an Authoritarian manager. Indeed, if we look into the tactics he adopted in BA, they are mostly characterized by taking decisions which might not be stakeholder friendly but aimed at ensuring reducing costs to make BA a better managed company. His strategies always focussed on reducing costs by reducing the...
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...Chapter 1 Managerial Accounting and the Business Environment Solutions to Questions 1-1 Managerial accounting is concerned with providing information to managers for use within the organization. Financial accounting is concerned with providing information to stockholders, creditors, and others outside of the organization. 1-2 A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. The focal point of a company’s strategy should be its target customers. 1-3 Customer value propositions fall into three broad categories—customer intimacy, operational excellence, and product leadership. A company with a customer intimacy strategy attempts to better understand and respond to its customers’ individual needs than its competitors. A company that adopts an operational excellence strategy attempts to deliver products faster, more conveniently, and at a lower price than its competitors. A company that has a product leadership strategy attempts to offer higher quality products than its competitors. 1-4 Managers carry out three major activities in an organization: planning, directing and motivating, and controlling. Planning involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating involves mobilizing people to carry out plans and run routine operations. Controlling involves ensuring that the plan is actually carried out and is appropriately...
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...Customer Satisfaction Surveys & Customer Satisfaction Research | | |Written by Paul Hague and Nick Hague | | | |It seems self evident that companies should try to satisfy their customers. Satisfied customers usually return and buy more, they| |tell other people about their experiences, and they may well pay a premium for the privilege of doing business with a supplier | |they trust. Statistics are bandied around that suggest that the cost of keeping a customer is only one tenth of winning a new | |one. Therefore, when we win a customer, we should hang on to them. | |Why Customer Satisfaction Is So Important | |Why is it that we can think of more examples of companies failing to satisfy us rather than when we have been satisfied? There | |could be a number of reasons for this. When we buy a product or service, we expect it to be right. We don’t jump up and down with| |glee saying “isn’t it wonderful, it actually worked”. That is what we paid our money for. Add to this our world of ever exacting | |standards. We now have products available to us that would astound our great grandparents and yet we...
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...Customer Satisfaction Surveys A White Paper by Paul Hague and Nick Hague of B2B International E-mail Web Blog info@b2binternational.com www.b2binternational.com www.b2binternational.com/b2b-blog/ WHY CUSTOMER SATISFACTION IS SO IMPORTANT It seems self evident that companies should try to satisfy their customers. Satisfied customers usually return and buy more, they tell other people about their experiences, and they may well pay a premium for the privilege of doing business with a supplier they trust. Statistics are bandied around that suggest that the cost of keeping a customer is only one tenth of winning a new one. Therefore, when we win a customer, we should hang on to them. Why is it that we can think of more examples of companies failing to satisfy us rather than when we have been satisfied? There could be a number of reasons for this. When we buy a product or service, we expect it to be right. We don’t jump up and down with glee saying “isn’t it wonderful, it actually worked”. That is what we paid our money for. Add to this our world of ever exacting standards. We now have products available to us that would astound our great grandparents and yet we quickly become used to them. The bar is getting higher and higher. At the same time our lives are ever more complicated with higher stress levels. Delighting customers and achieving high customer satisfaction scores in this environment is ever more difficult. And even if your customers are completely satisfied with...
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...JETBLUE AIRWAYS 2 JetBlue Airways What is JetBlue’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? The strategy for JetBlue’s success in the marketplace is described in the company’s 10-K/A filling. Their goal is to ³establish JetBlue as a leading low-fare, low-cost passenger airline by offering customer’s high-quality customer service and a differentiated product.´ (JetBlue,2005) By doing this, they are trying to ³stimulate market demand while maintaining a continuous focus on cost-containment and operation efficiencies.´ (JetBlue, 2005) Based on the filing, JetBlue relies on product leadership customer value proposition. The four key elements to their strategy are: Stimulate demand with low fares Emphasize low operation costs Offer point to point flights to underserved and/or overpriced large markets Differentiate our product and service (JetBlue, 2005) Due to the strategies, JetBlue has been able to grow largely as a company and become one of the leading airlines which focus on customer satisfaction at a low operating cost. JETBLUE AIRWAYS 3 What business risks does JetBlue face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? (Hint: Focus on pages 17-23 of the 10-K/A.) As in...
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...Customer Acquisition Customer acquisition is a broad term that is used to identify the processes and procedures used to locate, qualify and ultimately secure the business of new customers. There are many different strategies used as part of the acquisition process, with some methods being more effective with specific types of potential clients. In spite of the many and sometimes contradictory ideas that surround the central idea of how to earn a customer, there are a few essentials that are included in just about any type of customer acquisition plan. One of the basics of any customer acquisition effort is to identify and quality potential customers. This is sometimes accomplished with the use of telemarketing as a means of locating individuals and businesses who either express interest in or already use products similar to those produced by the business. From this initial list, these leads are then qualified a little further, using various research methods to determine if there is any solid chance of making a sale with a given lead. If there is a good chance, and the contact is interested in learning more about the products offered, his or her status is usually upgraded to that of prospect, and assigned to a salesperson for further interaction. Establishing rapport with the prospect is essential to any successful customer acquisition effort. Here, the salesperson finds ways to identify with the stated wants and needs of the prospect, and how the products offered can relate...
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...They have the largest range of desired brands and styles that offer newness, fashionability, quality and value, with increasing exclusivity. The Myer merchandise offer includes 11 core product categories: Womenswear; Menswear; Miss Shop (Youth); Childrenswear; Intimate apparel; Beauty, fragrance and cosmetics; Homewares; Electrical goods; Toys; Footwear, handbags and accessories; and General merchandise. Besides having a wide range of merchandise, Myer also provide services in selected stores, which include Cafés and Restaurants, Formal Hire, Optical, Hair and Beauty Salons, florist (My Flowerhouse),Weight Watchers Lifestyle Centres, Photographic, and Myer Bridal & Gift Registry. Sources of value Value creation and delivery is a key element for strategic customer relationship management. Value can be thought of as the relationship between the benefits experienced from a product or service and the sacrifices made to enjoy those benefits. * Value from product In terms of product innovation, Myer has introduced a new sister site called Myfind.com. The site gives them the ability to test new merchandise and explore potential new product and range extensions and will give their customers access to a dynamic range of competitively priced products that are not necessarily available in store or elsewhere online. Product-service bundling is another way of creating value for its customer; Most cosmetic counters in Myer...
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...The theory of Value Proposition indicates that a target market's valuation of a product can be derived by analyzing the benefits of that product to the target market and weighing the costs of choosing that product. To examine the benefits, one must review both the points of parity, features of a product that are the same as the competition or next best alternative, and the points of difference, features of a product that are superior to the next best alternative (Mgmt 205 Course Reader, pg 17 "Customer Value Propositions in Business Markets). For this analysis of Wyndham International Corporation's ByRequest value proposition, it can be argued that Marriott Hotels and Resorts and it's Marriott Rewards points program is the next best alternative to a potential Wyndham guest due to statistics that indicate that Marriott Hotels and Resorts had the highest occupancy rates in the surveyed years 1997-2001 (Case Exhibit 5) and had the highest percentage of people with incomes exceeding $50,000 per year who preferred the Marriott brand over hotel/motel brands in 2000 and 2002 (Case Exhibit 6). Also, the target market can be defined as "the average upscale traveler who, on average, takes 12 to 14 trips a year", corporate travelers in particular (Case Page 13), as it is the business traveler who usually is the primary decision maker for business trips (Case Exhibit 6). The point of parity between Wyndham's ByRequest program and the Marriott Rewards program is that both reward guests...
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