Different uses for spreadsheets

Different uses for spreadsheets Spreadsheets Coursework There are many different uses for spreadsheets; the main use for spreadsheets is using basic formulas to work out various sums. They can also used to represent data graphically using graphs and charts. In this document I plan to explore the various uses for spreadsheets in different areas and focus on one specific area and look at the uses for a spreadsheet in that area and also I will look at some of the limitations that using spreadsheets can bring. One of the main uses for spreadsheets is in finance, businesses can use a spreadsheet to forecast sales, and show graphically how sales will rise or drop based on past events. Spreadsheets can also be used to work out interest rates and monthly payments based on variables such as time, i.e. 5 years, 10 years or amount borrowed and also both such as  £100,000 borrowed over 30 years. Another use for spreadsheets is in education, spreadsheets can be used to store students personal data along with grades and scores, this data can then be used to predict a students overall or average grade, this can also be used to forecast how they will do at higher levels. A spreadsheet can also be used to gather all pupils scores and represent the data in a chart displaying the pass percentages for the school. A spreadsheet can also be used to record pay records for staff of the school and when they get paid and how much they get paid. Other uses for spreadsheets are in Health Care; health organisations such as the NHS can use spreadsheets to record patients details for easy access by doctors and other staff. They can also be used to show the date they were admitted and the date they were signed out by a doctor. And the doctor that is treating them. This can also be useful to see what dates are busiest and other trends. And plan accordingly for the future. Spreadsheets can be used by shop keepers to keep detailed lists of their stock, how much the item costs and the bar code number of the item, the shop keeper can also record sales of each item in his/her stock and then use graphs to see what items are selling well, and also what items are not selling so that the shop keeper can then change stock accordingly. As spreadsheet can also be used for a shop owner to do their VAT and Tax returns at the end of each quarter of the year. Spreadsheets can be used in sports to record the team statistics, and then work out goal per game percentages, and also it can be used to keep a game roster, games played and also draw up graphs and charts that show team performance, it can also be used to get a players averages such as average goals per game, injuries per season and other vital statistics. Also making them alot easier to be read and interpreted by the user. The application area I have chosen to look into is Shop keeping: In shop keeping spreadsheet applications can be very useful in shop keeping as it can help a shop owner keep a detailed inventory of all the items in the shop keeping information such as availability and barcode number easily accessible. Shop keepers can also use spreadsheets to record sales of all of their stock. They can view what items are selling well, what are not selling at all and what items are sold out. This data can be used to make graphs, charts and tables this can be used by the shop keeper to decide what he needs to get more off, or what stock he needs to order less of, or stop ordering. This can also be useful for the shopkeeper to use when deciding what offers to put on certain items. Shop keepers can also use spreadsheets to calculate their finances; they can calculate daily profit or loss and also predict using past sales what should happen for the next few weeks months or years. They can also calculate their monthly, quarterly or yearly profits or losses and they can do their VAT and Tax returns for the financial years. Making it easier, quicker and more convenient with fewer mistakes. Another use for spreadsheets by shop keepers is keeping staff details stored for quick and easy hours, this also is a good way for managers or owners to see their wage expenses and also keep track on who is working what hours and also staff holiday bookings, this makes it easier than using a conventional book and allows comparison of data faster. Spreadsheets can also be used by shop keepers by using them to work out break even points if the shop keeper wanted to obtain loans from banks or investors for expansion or other reasons. One Spreadsheet use that would be useful for shop keepers is the tables, they can clearly block out their inventories and using the SORT tool they can sort the data in any way they want, from A Z to number values. They can also group data types together making it a clear more organised list than just typing it up in Microsoft word. Another use for spreadsheets that would be useful in shop keeping is graphs and charts, graphs can be used to represent sales, profit and loss and other numerical data in one or more simple graphs that are easy to read. Charts can be easier to show data such as hours available Vs hours used. And stock sold Vs stock left over or returned. Spreadsheets could also be useful by using formula to work out various sums such as adding, multiplying, subtracting or dividing various cells together which could be useful for shopkeepers to work out their profit or loss margins. They can also use other functions such as averages to save time by bypassing the need for a calculator. One of the main limitations of spreadsheets is that some charts and graphs can be unclear if there is too much detail or if 3D graphs are used as the data lines and plotting can be unclear along. The axis also needs to be clearly labelled to avoid confusion. Another downside to spreadsheets is it isnt great for word processing, anything more than a few words and any more than that Microsoft word should be used or for small paragraphs comments attached to the cell. Another downside to spreadsheets is that beyond basic arithmetic the spreadsheet software gets more complex and may require more help from someone trained in it. As some of the functions are not easily explainable this could take time. Another disadvantage is that creating tables and graphs can be complicated and getting them to look right can be time consuming. In conclusion, spreadsheets can help turn huge amounts of data into simple and easily interpreted. They can also be used to sort and group large amounts of data in tables and make them easier to read and explain. They also allow people to work out the average of a set of data and cast predictions along with basic arithmetic. However they can be complicated to use and sometimes very unclear.

Coffee Shop Essay

The purpose of this marketing plan is to outline the complete marketing strategy, tactics, and programs for Dot. L Coffee (hereafter, â€Å"Dot. L†). Dot. L is a specialist Coffee Company that focuses on specialty coffee of Latte, coffee based products and foods as well. Dot. L is a new coffee shop in the river side district. Dot. L will be known for over 6 flavors of latte, coffee and coffee based products. In addition, light snacks and sandwiches will be offered to accompany the cappuccino and coffee based products. The cafe establishment will play modern music for ambiance and provide free wireless internet access for patrons to attract professionals in the nearby business areas. The mission of Dot. L is in the vanity of the city, Dot. L can bring you the ease of a precious. Dot. L will be unlike other cafes in that it will introduce customers to the different flavors of coffee and foods in a leisure non pressure environment. Furthermore, in a competitive market like Starbuck, Dot. L hopes to set itself apart by reaching out to those diversity flavors of latte without the high prices. The target market consists of two market segments: †¢ People who are deeply in love latte and people who hope have a relaxing time †¢ Business people from the downtown business centers and professional buildings Situation analysis is explored. This includes an overall marketing environment analysis for the company as well as more specific situation analysis such as competitor and customers action for the marketing analysis. An evaluation is conducted followed by an action plan outlining how to achieve the marketing objectives, which includes: promotion, price discounts, a bi-monthly newsletter, advertising in television and search for new channel partnerships. Company overview and the Mission Statement Dot. L will be a distinctive coffee shop which have own characteristics and culture that will serve the river side residential district. The coffee shop offers flavored latte and other coffee products, light snacks, foods and free wi-fi service for customer surfing on-line. The Dot. L primary place of operation will be located on the river side with nice view of Brisbane River. The business persons in the office building will add to the number of patrons and the circumstance their also can attract consumer to choose that place. There are plans to open additional locations after 3 years of operation. Dot. L will operate from Monday to Sunday. Monday thru Thursday, five employees will be working from 10 a. m. to 10 p. m. Friday and Saturday will work the same; however, three employees closing will work until 12 a. m. The cost for each full time labors might be 16 dollars per hour and the cost for part-time labors might be 9 dollars. The name of this coffee shop is Dot. L which means L refers to latte. Therefore latte as company core coffee products and latte art can be discovered in Dot. L. [pic] As stated in the company’s mission statement: Dot. L aims to be the cafe have own style and culture in Australia. In the vanity of the city, Dot. L can bring you the ease of a precious. Table of Contents Executive Summary2 Company overview and the Mission Statement3 Introduction6 Product Description6 Environmental Scan7 Economic environment7 Legal, political and regulatory environment8 Social and cultural environment8 Technological environment9 Competitor9 Market research10 Customers12 Marketing objectives and Market tactics12 Marketing objectives12 Product12 Price13 Place13 Promotion14 Marketing Tactics15 Market forecasting16 Action plans17 Financials18 Control20 Conclusion21 Reference list:22 Appendix 124 Introduction This marketing plan examines the steps required to reposition Dot. L cafe in the Australian marketplace. Dot. L is a cafe brand will locate on river side in Brisbane. Dot. L offers a variety of coffee, specialty coffee of Latte, coffee based products and foods. In addition, in order to attract consumers latte art also be adopted into the coffee products. Basically the price for the regularly coffee the price will not over four dollars. The cafe will focus on the business people and normally customers. Dot. L in Australia employ approximately 30 labors includes chiefs, shop assistant, shop keeper, senior manager. The Dot. L brand name comes from its core products will offer in the cafe that aim to: 1. Attract consumers 2. Build brand 3. Trade profit achieve about 8-10% The marketing plan followed by analysis the situation in marketplace, competitors analysis for the Dot. L entry into the market. Furthermore, market research and customers analysis will provide to assist the Dot. L to locates the market accurately. It also considers the market forecasting and financials for the three-year period. Product Description The Dot. L will offer many items that would have perfect taste. From traditional coffee to the light snacks and foods, Dot. L will offer something traditional and original for all tastes. Daily latte specials will be offered, featuring a different blend and flavor each day. The cafe specialty will prefer to European style design. The six different lattes are includes: cafe au lait; ghetto latte or bootleg lattes; hot or iced latte versions of chai, matcha, and Royal milk tea; red latte; latte macchiato and Caffe latte. Latte and Coffee will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. Flavors will be available at an additional charge of $0. 50. Espresso, cappuccino, mocha, and other specialty drinks will be available in two sizes and will cost $3. 75 and $6. 50. Environmental Scan. Economic environment Robust business, consumer confidence and high export price for raw materials have fuelled the economy for 16 years. Australia has a strong economy with per capita gross domestic product (GDP) of $ 38,000(CIA, 2009), and GDP was estimated to be growing at 3. 8% annually (CIA, 2009). However, in 2008 with the impact of the global economic crisis, manufacturing output and employment started to falter, and the Australian economy headed into a severe slowdown (Jackson, 2008). Even through, in 2010 the economy has begun to turn for the better, the consumers’ purchase tendency is not recover. As both cause and effect, consumers cut back on spending, specifically on food, clothing, furniture, entertainment, cars and mobile phones (Uren, 2008). The economic conditions in Australia present opportunities and risk for Dot. L. The decrease in consumer spending will force cafe industry to seek specialist assist to retain customers and maintain sales. In the other hand, this will increase the demand for specialist service like Dot. L which can provide business men have plcae to release pressure. However, the reality of a downturn may cause retailers to cut back on all spending including on retail consulting and training services. Additionally some retailers are likely to go out of business. Legal, political and regulatory environment Small business branding through labeling and packaging conclusively builds company and product recognition. Positioning the unique product through private label aimed at the target market results in an effective, low cost marketing strategy. It is the solution to getting customers into the store and back again and again. In American, the government publishes a legislative memo of a cyber-cafe restriction in 2006 (New York Civil Liberties Union, 2006). The China government also publishes the same restrictions. Because most of the cafe will provide the service of internet, so, they should pay attention to theses legislative issue (Rodnin, 2005). Social and cultural environment According to Australian Coffee Traders Association, Annual General Meeting 2006 that pointed out overall speaking, the Australian coffee market is very competitive but consumers are brand-loyal (ACTA, 2008). Australia is a country of different immigrants, especially proud of a traditional strong coffee culture started by European immigrants(AusFoodNews,2010). The strong coffee culture of Australia has influenced growth in coffee shops, especially among the younger generation. Coffee drinking has become an integral part of the modern lifestyle. In Australia, the specialist coffee shops have become more than just a place to drink coffee. Increasingly, coffee shops serve as places to meet for business and pleasure – a location for peace and quiet away from home and office. ACTA (2008) stated that more than one billion cups of coffee are consumed in cafes, restaurants and other outlets each year, this is an increase of 65% over the last 10 years. The Coffee consumption of Australian per capita has doubled over the last 30 years (ACTA, 2008). According to a new report by Euromonitor International – â€Å"Consumer Foodservice in Australia†. (2004) the number of transactions through coffee shops grew by 7% and value sales grew by almost 29%. Technological environment Technological advances in Australia have resulted in an increase usage of the internet. This has resulted in all industry expanding into a new channel: offering services, marketing and selling products over the internet. For Dot. L, the cafe can take this advantage which is using intern as the company’s channel to promote the marketing. Competitor. The popularity of franchising as a business opportunity in Australia has also had a significant impact on the number of chain specialist coffee shops, such as Gloria Jean’s, The Coffee Club, Zarrafa’s Coffee which expanded mainly through franchising (Market Research World, n. d. ). Euromonitor International’s research shows that the Gloria Jean’s chain had the largest increase in outlets in 2004, thereby boosting its market share from 28% in 2003 to 37% in 2004. Gloria Jean’s has already opened over 900 shops around the world, and 407 stores are established in Australia-wide. Therefore, Gloria Jean’s can be regarded as the most powerful competitor. The Coffee Club has expanded its business to overseas, including Beijing, Bangkok, Dubai and Thailand. It has had more than 200 stores across the whole world. Compared with these two brands Gloria Jean’s and The Coffee Club, Zarrafa’s Coffee is a young brand. The brand comes from Gold Coast, and it only has 14 years history. Zarrafa’s Coffee has 41 stores across South East Queensland. Consequently, Zarrafa’s Coffee can be thought as the least powerful competitor for Dot. L. According to the report, sales of hot drink products in Australia surpassed A$1350m in the year 2008 and is expected to be worth A$1473m in 2013, with the coffee category accounting for the largest share followed by tea (Trading Room, 2010). It can be assumed that more people might enter the cafe industry. Market research In this section is to present the research about the marketing research for the Dot. L Coffee. Since this is a brand, the main goal of the Dot. L Coffee is to establish brand awareness among the target audience, which is business people, and 94 percent of them are aged 25 to 40. In this research, it chooses 10 male and 10 female to do the interview. Figure 1: The Frequency of the respondents to have coffee [pic] Figure 2: The Buying Habits of the Respondents [pic] According to the figure 1 and 2, of the business people that polled, 70 percent said they have coffee every day. And a full 58 percent said they prefer to enjoy coffee in the cafe. Others will enjoy coffee in their office or at home, here, 52 percent of them will buy the coffee products in the coffee shop, and 47 percent of them prefer buy it form the supermarket. Figure 3: The Acceptable Price per Coffee of the Respondents [pic] 45 percent of the respondents said that they would like Latte, and both of respondents who prefer Espresso and Mocha are divine 15 percent, 25 percent of respondents choose Cappuccino. Referring to the figure 3, 70 percent of them represent the acceptable price per cup of coffee is $3-8 dollars, and below $3 dollars and above $8 dollars will share the same percentage of 15 percent. Take a look at this chart, the best media mix, then, would be a combination of TV and magazine advertisements. Both of TV and magazine were divine 30 percent of the total population. And 20 percent of people prefer print advertisement. To conclude, even though our target audience is clearly defined, introducing a new product is always a gamble. But with the proper media mix we can certainly lessen the chance of failure. Customers The primary target market for the Dot. L Coffee will be the local business people. The cafe will be a sit-down coffee shop with wi-fi connectivity. The cafe will serve a variety of flavored latte, coffee products, beverages, sandwiches, and treats to local customers. The target market consists of two market segments, that is people who are deeply in love latte and people who hope have a relaxing time; and business people from the downtown business centers and professional buildings. Marketing objectives and Market tactics Marketing objectives The purpose of this marketing plan is to launch a cafe with delicate bakery, and professional coffees and which will bring simple cozy and friendly atmosphere. Based on the product features and marketing 4P principles, the three years’ specific marketing plan will be given as the following to ensure objectives and expectations are met. Product First off all, the key customers are those people who fond into Latte which means the product image is designed as professional Latte maker with friendly, easy communicate, happy relationship atmosphere. In order to match the product concept: simple and cozy so that the color of the cafe should be designed as clean, comfortable. And the coffee cup and tableware would be designed to match the interior decoration as mildness and simple. The main special coffee is Latte. Meanwhile, espresso, cappuccino, mocha, and other specialty drinks will be available too. The latte flavors will include vanilla, chocolate, and caramel. This can be designed as the first year menu and in the following three years the product will be developed according to the market trend. Price The Dot. L cafe will specially offer delicate bakery with other beverages such as soda and juice. Coffee will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. All prices take into consideration the cost of material, 25% for food and 45% for beverages. Espresso, cappuccino, mocha, and other specialty drinks will be available in two sizes and will cost $3. 75 and $6. 50. All different deserts will be sold by the slice such as cheesecake, chocolate cake, muffin, sandwich and cupcake. Prices range from $2. 75 to $8. 00. The frequent customer can join the membership and participate the buy 10 get one free activity. Place The cafe name Dot. L is from the coffee Latte which is combined with espresso and steamed milk. Hence, the image of the cafe will deliver simple and warm message to customers. The location of Dot. L will be choosing at Brisbane river side. The space will be designed with a glass room and interior will be more concise and mediterrane an style. The common area will have white coffee tables surrounded by plush chairs and sofas and allow customers to set up laptop and spread out paperwork. The walls will be painted into warm color to enhance the relax and friendly atmosphere. Promotion Besides, in order to develop the market and receive good reputation from the very first. The Dot. L Cafe will be promoted in a variety of ways. The annual budget allotment for advertising is $19,904 for the first year of operation. These monies will be distributed as follows: 1. Southern Star –  Southern Star will be printed monthly showing the nightly specials. They will be distributed throughout the area on cars, handed out at the library, delivered to the local office buildings, and posted on street signs and other obvious places. 2. Radio –  The cafe will run many radio spots on local radio stations. The ads will feature the daily coffee specials and will air during the morning and afternoon drive times to capitalize on drive-by traffic. 3. Entertainment –  The Dot. L Cafe will feature local entertainment every other weekend. The entertainers will provide music, poetry, art, and dancing. These events will be promoted through additional print and radio spots. Besides, Dot. L will engage in promoting premium varieties of coffee by educating their customers about the different coffees that are available. This strategy would lead to increased sophistication among customers. 4. Web Presence –  The Dot. L Cafe will promote the business and specials over the Internet through a website. The website will be updated monthly to advertise specials and product offerings. The Radio and newspaper advertisement could be launch at the first half year to attract more customers. Entertainment and web presence should be developed as long term promotion plan in the next three years. The Dot. L Cafe will promote itself to its new customers by offering discount memberships for frequent consumers. There will be buy 10 get one free card available for coffee. The remaining  advertising  budget  will be used to print membership and frequent consumer cards. Serve the highest quality food and beverage and meanwhile maintain low cost of goods and inventory is one of the key objectives. Thus Logistics and distribution would be a crucial part as well. The fresh meats, cheeses, and  vegetables  will be purchased through good reputation food source distributors. The researching and negotiating of the best prices with distributors would be put into the project process too. Marketing Tactics To achieve the above marketing objectives, this plan considers the tactic through the marketing mix which includes product, promotion and pricing. Colour appeal, packaging and style are included in product section. As the before shown, the target market of the cafe is business people who works in downtown and modern buildings. These potential customers can be regarded as white collars and the middle class. They hold well-paid, and are to pursuit quality lifestyles. Based on these, the basic colour tone will be set as dark colour tone, such as brown and black. The logo of the cafe is to stress a simple but elegant style. Because Dot. L cafe is a new brand for customers, so the promotion strategy must be heavy to entice the brand trial. The advised promotion approaches are print ad, billboard ad and in-store promotions. Setting a billboard ad on the way to the city and riverside is strongly advised. The cafe locates on the riverside; for this reason, putting ad on ferry is recommended. The pricing objective is to appeal the people who take coffee daily. A regular size cafe au lait which is the main product is priced as $4. 50. The cafe can give 5% discount to people who hold senior card. Furthermore, a point card can be given in the store when customers are making purchase. The card allows that customers can get 1 free coffee after they buy 9 coffees. Market forecasting There are more than 100 cafes in Brisbane, and 17 cafes exist in Southbank where a part of riverside is. According to one market research (Weston 2010), more and more Australian have already totally accepted the coffee culture; in addition, they are very to enjoy this culture. Therefore, a big growth on takeout coffee is brought by this social change. As a matter of fact, the flourishing demand of coffee drinking directs to the blast of many specific coffee shops. According to another research, Australians prefer to coffee with milk rather than other styles. Datamonitor’s Market Data Analytic (MDA) database indicates that retail coffee sales in Australia gained around A$752m. The Australia coffee market is in the second place around the Asian Economic in 2008. Another research predicts that the total amount around A$473m of profit can be reached in 2013. All in all, it can be concluded that there is a huge potential in the cafe market. Action plans According to the planed given above the relevant GANTT chart will guide this project go smoothly complete on time. Figure 4: The Dot. L Project Schedule |Dot. L | |? |? | |Start-up Assets to Fund |$26,000 | |Total Funding Required |$88,290 | | | | |Total Assets |$26,000 | | | | |Liabilities and Capital | | |Liabilities | | |Total Liabilities |$33,290 | | | | |Capital | | |Planned Investment |$55,000 | |Loss at Start-up (Start-up Expenses) |($62,290) | |Total Capital |($7,290) | | | | |Total Capital and Liabilities |$26,000 |. 2. Break-even Analysis Break-even data is presented in the chart and table below. [pic] Figure 6: Break-even Analysis |Monthly Units Break-even |7,294 | |Monthly Revenue Break-even |$18,462 | |Assumptions: | | |Average Per-Unit Revenue |$2. 53 | |Average Per-Unit Variable Cost |$0. 63 | |Estimated Monthly Fixed Cost |$13,847 | 3. Projected Profit and Loss In the first year, the Dot. L Coffee will have sales of about $533,764 of operation. In year two and three the Dot. L will have sales increases of about 10%, resulting in sales of $576,551 and $622,575, respectively. Operating expenses are $304,136 for year one, $327,694 year two, and $353,326 year three. The results for the first three years of operation are net income of $36,521 for the first year, $42,356 for the second year, and $47,819 for year three. Control Dot. L will continually evaluate the marketing environment, particularly the economic environment, due to the economic downturn, and the competitive environment. Further, in relation to the specific tactics undertaken by Dot. L for the 36 month period, each will be assigned a person who will be responsible for the success of the tactic, as well as a specific final review date. |Tactic |Responsibility |Review date | |Promotions to focus on augmented product and core product |Marketing Manager |May 2010 | |benefits | | | |Determine price discounts and rollout strategy to clients | | | |Create newsletter and implement process for it to be |Management Team |Aug 2010 | |distributed monthly | | | |More Direct-response advertising in television |Marketing Manager |Sep 2010 | |Implement selling short-term modification recommendations | | | |Search for distributors with which to form channel |Sales Director |Jun 2011 | |partnerships |. | | |Expand business to more location |Marketing Manager |Mar 2012 | | | | | | |Channel Manager |Nov 2012 | | | | | | |Sales Director |Jan 2013 | Conclusion This report sets out the marketing plan for Dot. L in Australia. It was decided that, Dot. L aims to be the cafe have own style and culture in Australia. In the vanity of the city, Dot. L can bring you the ease of a precious. The marketing strategy was explored, including each of the marketing mix areas, and tactics were recommended relating to direct-response an promotions, price discounts, and find channel partnerships. It is believed that there is opportunity for Dot. L to built own brand culture and expand in cafe industry’s marketplace. It is, therefore, this marketing plan can assist Dot. L growth in the marketplace. Reference list: Acta (2008). AUSTRALIAN COFFEE STATS. Retrieved May 16, 2010 from http://www. acta. org. au/article. php? a=2 Hofmann (2008). Specialist coffee shops in Australia see vigorous expansion. Retrieved May 17, 2010 from http://www. franchiseek. com/Market_Trends_Coffee_Shops_Australia_0706. htm Jellie (2006). Coffee by numbers. Retrieved May 17, 2010 from: http://www. smh. com. au/news/good-living/coffee-by-numbers/2006/07/17/115298845 5398. html New  York  Civil  Liberties  Union(2006),  Legislative  Memo:  Cyber-cafe  Restrictions Retrieved May 17, 2010 from: http://www. nyclu. org/content/legislative-memo-cyber-caf%C3%A9-restrictions-2006 Rodnin(2007),  Motherboard  makers  may  be  affected  by  Internet  cafe  restrictions  in  China,  Retrieved May 17, 2010 from http://www. vaosoft. com/forum/index. php? showtopic=441&pid=612&mode=threaded&show=&st=0 Shaun Weston (2010). Australian love coffee. Retrieved May 15, 2010, from http://www. foodbev. com/report/australians-love-coffee Trading Room (2008). Australia a nation of coffee drinkers. Retrieved May 17, 2010 from http://www. tradingroom. com. au/apps/view_article. ac? articleId=1196615 Wong (2010). Aussie cafe culture accounts for ‘biggest growth in coffee’. Retrieved May 17, 2010 from http://www. ausfoodnews. com. au/2010/03/04/aussie-cafe-culture-accounts-for-biggest-growth-in-coffee. html Appendix 1 The Questionnaire of the Coffee Market. This is a marketing research of the style, habits and opinions of coffee in your everyday life. Section 1: Basic Personal Information 1. What is your gender? A Male B Female 2. What is your age? A 18-25 B 26-30 C 30-40 D Above 40 3. What is your Occupation? A Students B Business men C Employee D Others 4. Are you married or single? A Married B Single 5. What is your family’s size? A 1-2 person B 3-5 person C 6-8 person D Above 8 person Section 2: 6. Where can you get the information about coffee? A Internet B Magazine/ newspaper C TV D Print Advertisement E Others 7. Where are you usually buy the coffee product? A Supermarket B Internet C Coffee shop D Others 8. How offen do you drink coffee? A Every day B 3-4 times per week C Once a week D Never 9. Where do you usually drink coffee? A Cafe B At home C At office D At campus E Others 10. What kind of coffee would you like? A Latte B Espresso C Cappuccino D Mocha E Other specialty drinks 11. How much of a cup of coffee is acceptable for you? A $2-3 /cup B $3-5/cup C $5-8/cup D $8-10/cup E Above $10/cup Thank you for your participation!!!

Internal Services Marketing

SWP 59/91 â€Å"INTERNAL SERVICES MARKETING† PROFESSOR BRETT COLLINS School of Management Deaking University Victoria 3217 Australia (Tel: +6152 471277) and PROFESSOR ADRIAN PAYNE Marketing and Logistics Group Cranfield School of Management Cranfield Institute of Technology Cranfield Bedford MK43 OAL UK (Tel: 0234 751122) Submitted to European Management Journal Copyright: Collins and Payne 1991 INTERNAL SERVICES MARKETING INTRODUCTION Over the past few years the term internal marketing is increasingly being used to describe the application of marketing internally within the organisation. There are two dimensions relevant to our discussion of internal marketing. Firstly there is the notion that every department and every person within an organisation is both a supplier and a customer. The second aspect relates to the organisation’ staff and s involves ensuring they work together in a manner supporting the company strategy and goals. This has been recognised as being especially important in service firms where there is a close relationship between production and consumption of the service. It is thus concerned with both quality management and customer service and involves co-ordinated people and process improvement strategies. Internal marketing relates to all functions within the organisation, but it is vitally concerned with the management of human resources. However the traditional personnel department, and the more advanced human resources department, have frequently been oriented towards control and administrative activities rather than the alignment of human resources towards achieving strategic organisational purposes and goals. In this paper we explore the marketing of a particular internal service within the organisation – the human resource function. Our purpose is to illustrate how internal marketing concepts and methods used by marketing managers can provide the basis of a new perspective on meeting the opportunities and challenges faced by human resource managers. A market-oriented human resource manager is more likely to make an impact on the successof a company, through being more effective in both demonstrating the relevance of . human resource management (HRM) to all management team members, and helping other managers to increase their productivity. Our approach is to first consider the nature of the challenges and opportunities confronting human resource (HR) managers. A view of what is seen to be a central task for the HR management professional is then outlined. The congruence between marketing function activities and the HR management activities is then described. Finally, we consider how the HR manager can utilise the philosophy, ideas, and tools of the marketing function to make a more effective contribution toward the organisation’ objectives. s CHALLENGES FACING THE HR MANAGER The managers in a company who deal with the ‘ people’ issues are now recognised as having an increasingly strategic role in the success of many businesses. Regardless of whether the function these managers perform is called personnel, human resources, industrial relations, or training and development, it collectively now represents a business role similar in importance to the areas of finance, marketing and operations management. This trend has been driven by a more intensely competitive business environment, increased use of technology in some industries, and the shift in corporate philosophy from asset management to operations management. A focus on operations management has forced CEO’ to understand the need for s killed HR executives if they are to successfully cope with change. An organisation able to adapt to change is generally found to be more able to sustain competitive advantage in an environment of increasing uncertainty. The constant stress of corporate take-overs, new ventures, the restructuring of companies, rationalisation of existing operations, new technology introduction and staff lay-offs, means that the succes sof basic strategic decisions increasingly depends on â€Å"matching skills with jobs, keeping key personnel after a merger, and solving the human problems that arise from introducing new technology or closing a plant†. The dramatic turnaround of SAS by Jan Carlzon was driven through people rather than through an expensive investment in equipment and assets. 2 Increasing attention is being focused on the area of external customer retention and the enormous potential for improved profitability. 3 Top management should also seek to obtain improved organisational performance through effective HRM strategies aimed at improving personnel retention. The base-line benefits are cost savings on . etraining in a rapid turnover job market and cutting down the equally expensive knowledge drain. Companies able to manage this issue will reap the rewards which go with a team of committed, active individuals at a time when under-training is sapping productivity among competitors. Increased u sage of technology in some industries has led to the assumption that the quality of people performance will become a less important issue as technology becomes more pervasive. However the maintenance of reliable performance by competent employees is becoming more crucial. For example, we are now in an era where electronic banking means fewer face-to-face encounters between the bank and its customers. Consequently the importance of handling these interactions, and the ‘ costs’ of not making the most of opportunities are greater. In a relatively homogeneous industry such as banking, a key opportunity for banks to gain a competitive edge over competitors lies in the quality of its people. In an era of electronic fund transfer there is opportunity for a bank to position itself as one that has good people, not just good machines. Many of the key challenges facing retail banking involve the employee: the need to sell and cross-sell, unionisation, electronic banking, affirmative action, service quality management and technology management. It has been argued that HR professionals have failed in the past to reach their full potential within the corporate framework because they devoted themselves to the creation of ever more sophisticated programm es and forgot the whole purpose of the business. HR managers have had a role in organisations dealing with outside pressures such as government, unions, and safety, but their active involvement and collaboration is also needed with the production, marketing, and finance functions. They have been responsible for fending off interruptions, handling the reporting requirements of regulatory bodies, and dealing with social responsibility issues, but often are not involved in activities perceived by other managers to be fundamentally important to the business. Managing a corporation is complex, and CEOs find it necessary to simplify their task by concentrating on what appear to be the most important strategic issues. Because of resource limitations, it is necessary to focus senior management’ attention and s time on those aspects of the business process with the highest expected payoff. means that some areas with extremely high potential impact, but a very low perceived probability of delivering significant results, must get less attention than one might really wish. Strategic HRM requires a significant investment of organisational resources, which directly and immediately affects profits, and can thus make it unattractive to managers under pressure for short-term results. Further, any real understanding of what competent HRM could contribute to the success of a business has only been popularised fairly recently. 6 For these reasons senior management has often failed to grasp why HRM was relevant to business strategy, business performance, and the cost management function. Clearly the central task of HRM must be to gain the upport of senior management, secure the commitment of the CEO, and ensure HRM makes the most effective contribution possible to the organisation’ objectives. s This The HRM function in a company is never likely to be valued unless it convinces management it can provide significant payoffs, and is part of the key interactions between the organisation and environment. productivity. HRM will become established as an integr al part of a business through helping other managers to increase their Managers do not require more sophisticated programmes. They require someone who understands their problems, can actively contribute to the more effective and efficient management of human resources, and who has a good understanding of the business. We will now consider how the roles of marketing managers and HR managers are linked. THE MARKETING – HRM ANALOGY The HRM function has three distinct client groups, or markets, with which it must deal effectively; employees within the organisation, other managers involved with the senior management tasks including the CEO, and external groups such as prospective employees, government, unions, and regulatory bodies. Consideration of the challenges faced by HR managers indicates that they are similar to those challenges faced by other senior managers, and requirements for success correspond to those needed by good marketing managers. The use of marketing ideas does not need to be narrowly confined to products and markets. Marketing has been defined as â€Å"a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others† , and implies two ‘ voluntary parties with unsatisfied needs, an expectation of mutual benefit, a means of communication, and a medium to complete the exchange. People who buy goods and services are involved in the same type of exchange process as people who seek employment that is satisfying, interesting, and more than a well-lit work space. The relationship between buyer and seller in a labour market is such that the employee must sell labour to earn an income. A company must create goods or services and exchange them in order to earn profits. Clearly there are times when one party to an exchange has much more bargaining power than the other party. The manager who seeks mutual benefit through working closely with the HRM department is involved in a similar exchange process to that which takes lace between consumers and companies everywhere. A source of interdepartmental conflict can be the need for a marketing manager to represent the interests of a customer against the needs of other managers. We do not lack examples of conflict between the marketing and accounting functions. For example, while the Sales department are properly concerned with maintaining a good relationship and undisrupted supply to the customer, the Accounts department is concerned with administering credit control. Accounts may seek the withholding of supply, because credit guidelines have been exceeded at a time when Sales is trying to service a sudden increase in demand, resulting in open conflict. 8 Similarly, an HR manager can become involved in interdepartmental conflict through a need to represent the interests of an employee against the needs of another manager. Like marketing, HRM is a function where success requires close co-operation with other functions, but there can be significant potential for conflict. The coalitions of power and politics at the core of fundamental conflicts such as this can be used to maximise business performance, or detract from it. The task for the HR manager is made more difficult because the quality of management performance is difficult to quantify – there is no bottom line responsibility. This can leave the HR manager without the defence available to managers of profitable business units who have tangible evidence of performance in their regular financial reports; bottom line results. Marketing performs a valuable role in that it creates utility, the capacity to satisfy needs. The HR manager is similarly concerned with the creation of utilities. The marketing philosophy or concept states that, in serving marketplace needs, the entire organisation should be guided by thinking that centres around the consumer. For our purposes the concept has three key elements: n The HR manager requires a thorough knowledge of the needs, wants, and problems of the CEO , other managers and employees. There are three customers for a training programme: the delegate (who is also the consumer), the delegate’ line manager; and top management. The needs of these three s ustomer groups vary and may need to be reconciled. Ideally the HR manager should start with a knowledge of client needs and work backwards to developing products and services to satisfy them. n The second element requires that the cost, design, implementation and follow up on HR projects should be carefully planned so all features are consistent with project goals, and the process co-ordinated with other functions in the organisation, w Finally, in our definition of marketing we recognise individuals or groups engaging in the marketing process have diverse goals and objectives. If the organisation itself does not gain utility from an exchange then this element of the philosophy is not met. Consequently we would expect that if an HR activity did not lead to organisational gain the activity would be discontinued. Quantification of performance plays a crucial role in the success of the marketing function, and the performance audit guides corrective action, while providing measurements essential to supporting access to resources for projects. HR managers have sometimes been characterised by a lack of willingness to work with performance measures. Marketing strongly depends on techniques developed in the behavioural sciences for quantification of the needs, wants, and perceptions of consumers. These tools can be readily adapted to requirements of the HR manager. While measures employed by marketing managers are not always of high precision, they are essential to the building of credibility through measurement, and performance against explicit goals. Management performance in functions other than marketing and HRM are generally more amenable to performance measurement. An HR manager with a market orientation would have good knowledge of the needs and wants of the client groups served, and develop a co-ordinated approach to servicing those requirements consistent with organisation goals, and with the expectation of achieving organisational gain from any exchange process. In contrast, a product-oriented HR manager would place primary emphasis on the products or services the HRM department offers, and how these are provided. It is instructive to consider the differences between these two opposing views. Consider training programmes for example; the difference between a product-oriented, and a marketoriented manager, is shown in Figure 1. This example is stereotypical in that the model represents two extreme positions. No one person would be expected to exhibit all of the characteristics presented for a specific orientation, but an HR practitioner would be expected to possessseveral if they were either market or product-oriented and the distinction between two very different management philosophies are illustrated. We have found it a useful exercise, in workshops with senior managers, to discuss the role of conflicting philosophies and how they affect achievement of a marketing orientation. This can be addressed in the context of both external customers10 and Although it has been accepted for many years that a market internal customers†. orientation is essential to the success of a business, it has not been proven in all b’ igure I: Stereotypical I)itfcrenccs Itetw~~~ hlarkrt-Oriented uncl I’ rotll,ct-Oriellletl IIH hlihn;rg:ers with Itesl~~ to Training Yrogr;rmmes 4’ lTITUDES Attitudes & PROCEDURES I’ ROI)IlCT ORIENTATION to cut costs and MARKET ORIENTATION Client needs determine training programmes. towards clients: They should be glad we exist. Trying bring out better programmes. Department interests. Focus Programme offering: provides courses that fit our skills & Schedule programmes we know the clients need. Interest in innovation: of costs: scheduled for is on technology and cost cutting. Focus on identifying A critical objective. new opportunities. Importance A number in the budget we cannot exceed. rcquircmcnts in mind. Number of programmes the year: Role of marketing Attendance Set with Ihc dclivcry Set with client needs and costs in mind. research: To determine client reaction if used at all. is good revision. To determine client needs and if they are being met. at programs: Fill all available places – repeating Select attendees according to their needs and coordinate this with other managers. Demonstrate clients. need satisfying benelits Promotion of programmes: Advise managers when their staff is to attend the next course. of course to contingent situations. Monopoly or regulated markets provide examples of nonmarket orientation. As the difference between a market orientation, and any one of many conflicting orientations possible, is accepted as the difference between unstable short-term success and stable long-term growth, it becomes of considerable importance to senior managers to push a market orientation within their company. Similarly, the importance of HRM has gradually gained credibility and importance, as managers have come to understand how it can contribute to the achievement of business success. There exists an increasing number of well known companies where superior HRM is believed to be a key factor in their success. We have seen the similarity in roles of the marketing and HR managers. The marketing and HRM processes both involve the creation and exchange of utilities. need to represent the interests of a client, against the narrow interests of another manager, may be conducive to the well being of the company but a source of open interdepartmental conflict. This conflict is difficult to manage and can detract from the effectiveness of the function and the organisation. Both functions require commitment and support from the CEO to succeed, and performance measurement is seen to be an important tool for building credibility within the company. The market orientation can be applied equally to either the marketing or HR functions when it is accepted that success is achieving organisational goals through delivering customer satisfaction. We will now consider how the HR manager can harness the ideas, and tools of the marketing function to more effectively contribute toward the organisation’ objectives. s THE HRM-MARKETING FUNCTION A We are concerned here with internal marketing – that form of marketing where both the â€Å"customer† and the â€Å"supplier† are inside the organisation. In this context we consider employees as customers or clients. These classifications are quite broad, and could be further divided into such groupings as the board, managers, supervisors, foremen, clerical staff, etc. The HRM-Marketing function can be described in terms of seeing managers and employees as in-house customers, viewing the tasks and activities performed by the HRM function as in-house products or services, and offering in-house or services that satisfy the needs and wants of managers and employees, while addressing the objectives of the organisation. 2 The reasons for believing marketing provides a useful framework for HRM depend largely on the congruences we have demonstrated between essential activities of the two functions. In addition to these congruences, there is a strong similarity in the constraints and difficulties facing either marketing or HR managers. Concepts and tools proven to be useful to the marketing function can also be applied to the benefit of HRM. The HRM function provides services or programmes to employees and management, which means it sells performances that directly influence business productivity. Internal marketing can help an HR manager to attract and hold the type of people a company wants, and get the best of in-house customers, the HR function can upgrade the capability of a company to satisfy the needs and wants of its external customers. Marketing management is the process of increasing the effectiveness and/or efficiency by which marketing activities are performed. Effectiveness refers to the degree to which organisational objectives are attained, while efficiency is concerned with the expenditure of resources to accomplish these objectives. This difference is eloquently expressed in the view that it is more important to do the right things (improve effectiveness) than to do things right (improve efficiency). 13 An organisation that is doing the right things wrong (effective but not efficient), can outperform organisations that are doing the wrong things right. Effectiveness and efficiency is also a concern of the HR manager seeking improved performance. MARKETING ACTIVITIES The marketing function in any organisation is concerned with a number of related activities which include: 8 Understanding of the market and competitive environment. Definition of the firm’ Mission. s Determination of the Target Market Segments to be emphasised. Developing integrated Marketing Mix strategies to accomplish this Mission in the selected segments. Implement Marketing Mix strategies and Control marketing activity. 8 8 8 8 This well known model of marketing function activities, which involves the above steps, is used as a basis for a discussion on internal HRM marketing. Market and Competitive Environment The starting point is for HR managers to gain a good knowledge of the needs and wants of the client groups served, the significant factors influencing the HR department’ operations, and identify the ‘ s publics’ which interact with the company. This process is market analysis and involves collecting information on the different client markets into a database. Market research should be used to identify internal client needs, wants and attitudes just as it can be used to identify the needs, wants and attitudes of external consumers or industrial buyers. For example, ‘ climate surveys’ concerning perceptions of remuneration packages, employment conditions and performance appraisal, and opinions of quality improvement programmes, provide direct benefits for the redesign and improvement of key policies, processesand programmes. There is also the positive effect on morale that flows from taking an interest in the views of employees. This channel of communication provides an early means for pin-pointing organisational breakdowns and problem areas. An important requirement before undertaking data collection is to adopt a commitment to face the issues uncovered, no matter how unpalatable. It is an on-going process requiring that issues be resolved in order to maintain credibility of the HR department at all levels within the company. To raise the expectations of client groups without delivering can generate strongly negative effects. Finally, market research can also provide a basis for monitoring the impact of programmes on employees, and check whether HR programmes are achieving what they were designed to achieve. This market research process sometimes suffers from a condition referred to as the â€Å"no-full-disclosure disease† 14. It manifests itself through people within the management hierarchy who fear the things threatening them may become known to others, and then used to their personal detriment. The extent of this problem depends on survey design and content. People interviewed tend to speak freely when given a chance to express their thoughts and opinions on HRM issues. However undertaking not to reveal the content of an interview under any circumstances, without prior approval from the person interviewed, is sometimes necessary in order to get at the real problems and issues. Whether use is made of questionnaires, personal interviews, informal meetings of managers, or group discussions, market research provides a clear means of identifying client needs and wants. It also provides the means for tracking performance. Mission The second step involves the development of a mission for the HR department. The corporate mission statement for an organisation is too broad to be meaningful for a specific business function, and consequently a mission statement should be specifically developed for the HRM function. It involves asking the questions â€Å"what is our role within the organisation ? and â€Å"what should our role be within the organisation? â€Å". Figure 2 provides an example of a HR mission statement based on one developed with a leading British service organisation. FiPure 2: Human Resource Mission Statement To develop and promote the highest quality human resource practices and initiatives in an ethical, cost effective and timely manner to support the current and future business objectives of the organisation and to enable line managers to maximise the calibre, effectiveness and development of their human resources. This will be achieved through working with managers and staff to: n Develop an integrated human resource policy and implement its consistent use throughout the organisation Enhance managers’efficient use ‘ human resources through the of provision of responsive and adaptable services Be the preferred source of core strategic HR services Provide high quality tailored HR consultancy Introduce methods to plan for the provision of required calibre and quantity of staff Ensure consistent line accountability throughout all areas within the organisation Assist the organisation in becoming more customer aware and responsive to changing needs Define and encourage implementation of an improved communications culture throughout the organisation Maintain an innovative and affordable profile for HRM n n n n n n n n At the HRM level the definition of mission does not have to be complex. It should provide a framework for explaining the HR department’ role and how it can help s he different levels and units of an organisation to co-ordinate their efforts to achieve the overall objectives of the organisation. Once the mission statement has been adopted objectives need to be formalised. Because objectives are not equally important, a hierarchy of potential services, programmes and projects should be put together. If possible these objectives should be operationalised – stated in terms that are specific, and which will lead to measurable end results. It is important to understand what needs to be accomplished, when the task should be completed, and how it will be decided that the task is completed. This process links very closely with the market research function which can be used to demonstrate performance against specific objectives. A function which provides a service, and deals predominantly in intangibles, requires tangible evidence of success in order to demonstrate competent performance, and help build credibility. Market Segmentation The third step is deciding which market groups should be emphasised. Market segmentation is a process by which we divide the total, heterogeneous group of clients into smaller, more homogeneous groups with similar needs and wants that the HR function can successfully satisfy. By developing specific services we can generally improve the effectiveness of our performance in satisfying clients. It may cost more to serve smaller groups, or handle problems requiring customised solutions. Because of this, there is sometimes a need to balance the level of customisation required to adequately solve a problem, against the benefits which might accrue to the organisation. This is very much a cost-benefit exercise. The characterisation shown in Figure 3 can be helpful for sorting problems into classes, each of which require different capabilities. At a high degree of customisation, there is increased demand for resources from the HR function. The HR cost to the organisation increases with an increase in the level of customisation. Programmes, or projects undertaken by HR typically involve longterm benefits with short-term costs, and given limited resources, this has direct impact on the HR department’ effectiveness. Quadrant 1 in Figure 3 represents the situation where there is need to fit a key programme to the specialised needs of a client group. A major company wishing to run an in-house strategic management seminar, enabling senior management to . Figure 3. CHARA CTERISING HR MARKETING PROBLEMS Programme l l oriented skills Client l l oriented skills standardised customising Importance of issue to organisation objectives I 3 s issue management skills needed 2 Buy-in-solution needs consultative skills 1 Fiexible approach skills 1 I l l control flows l l development project control skills needed need monitoring skills 31 LOW 4i HIGH required C Degree of customisation review and discuss current management thinking and practice, is an example. The CEO would perceive this to be of high value to the organisation, while requiring this process to fit closely with the business context. The programme-oriented task found in quadrant 2 is characterised by the opportunity for a high quality but standardised approach to be taken. For example, consider a betting agency involved in the conversion of operations from a manual to a computerised telephone betting system. There is a need to develop and implement a programme at low cost which will enable a smooth transition to the new system. Due to the large group of operators requiring new skills there is an opportunity to seek savings through standardisation. The importance of this issue means effective performance by the HR department is more critical. In quadrant 3 the degree of customisation required for a task is low – for example where factory staff are being given first-aid training. The content of a first-aid training programme will be fairly standard across a range of industries. Such a programme is not central to achievement of organisation objectives, and represents a situation where service delivery can readily be obtained from outside the organisation. Once the training programme was in place knowing who had attended the course, and monitoring the training process would be the key tasks. An increase in the degree of customisation required corresponds to an increase in the level of organisation-specific content, as shown in quadrant 4. Consider a retail tyre organisation which needs to train shop floor staff in the testing and servicing of car batteries. This more specialised course requires company-specific input, and an inhouse programme is the best solution. In this quadrant the need is for course development skills, a flexible approach, and the ability to manage the development process. Other examples are custom-designed employee retirement programmes, or surveys of work group satisfaction where there is a need here to design and implement a project with the specific needs of a client group in mind. Obviously most impact can be made by HRM focusing efforts in those quadrants involving problems of high importance to the organisation, but not involving significant short-term investment. This type of problem area, identified because the issues involved are considered central to the achievement of business objectives, will often be more able to attract support and adequate funding. Working in areas requiring a high level of customisation, which are also critical to business success, is the challenge facing HR. This is the direction in which HR requirements have moved due to the increased complexity of business, changing technology, and the shift from an asset management to operations management philosophy. Segmentation of employees on the basis of their needs and wants, as opposed to the segmentation of management clients, recognises the need to accommodate individual differences. This is the basis for concepts such as negotiable remuneration packages, employment contracts, flexible working hours, and job sharing. The techniques used for consumer segmentation by marketers can be applied directly here. It provides opportunity for companies to â€Å"lessen the influence of unions by placing greater emphasis on direct employee communication, in addition to, or instead of, industrial relations conducted in the traditional representative way†15. Developing and Implementing the Marketing Mix Once the tasks of determining the mission of the HR department and the target market segments to be emphasised have been undertaken, a marketing-oriented HR function will focus on the ‘ marketing mix’ The marketing programme is developed . ased upon a decision on marketing mix variables over which the HR manager has some control: designing the product or service, costing it, setting up a service delivery system, promotion of the product to clients, and gainin g commitment for proposals from management. Figure 4 illustrates the four elements of the marketing mix which need to be addressed. Whilst all elements need to be considered, two key variables – the design of the ‘ product’ (ie courses or services) and communications are especially important. These two key variables and their relevance for the HR manager are now reviewed. n Designing the ‘ Product’ . It has been pointed out that the process of a marketing department introducing a new product, and resolution of a complex long-standing problem by the HR function are very similar. Figure 5 illustrates this, and is based on Desatnick16 who argues that â€Å"as the contribution of HRM is less tangible and more difficult of end results, it is even more important to market it effectively. to measure in terms This implies taking the time to reflect, to position, to package, to merchandise, and to sell†. Thus the HR manager must get the maximum impact from each situation through careful Figure 4: The Four Elements of the Marketing Mix ELEMENTS OF THE MARKETING MIX FOR A COMPANY 1. PRODUCTS OR SERVICES 1. ‘ PRODUCTS (SERVICES, COURSES, ETC) 2. THE LOCATION AND DELIVERY MEANS OF SERVICES AND COURSES 3. COMMUNICATIONS WITH CLIENT GROUPS (PRIMARILY THROUGH DISCUSSION AND DOCUMENTATION) 4. TRANSFER PRICING AND EXPENSE ALLOCATION 2. PLACE (DISTRIBUTION) 3. PROMOTION (MAINLY THROUGH ADVERTISING AND PERSONAL SELLING) 4. PRICING FIGURE 5: COMPARING PRODUCT DEVELOPMENT COMPLEX HR ISSUE TO RESOLVING A Introducing the new produa (a 1 to 3 year cycle) DETER&MINE PRODUCT NEED FOR NEW I Resolving a complex HR issue (a 1 to 3 year cycle) DETERMINE NEED FOR NEW PROJECT, PROGRAM What is the cost of not resolving this nsue? What will be its impact on norms and vuua! What IS cost bcncrit value KOinrcmai diem! Eyk! lJlJTE POSSIBLE SOLUTIONS FOR 1 – Who wril buy it and why? How much will they spend on it? Whaf neeas will it sat&y? ISCREEN NEW PRODUCT ID&4 ( What impact will it have? Will it be profitable? Is it compauble existing produas? 1TEST MARKET THE PRODUCT [ What impact will it have on operauorr~! Who will manage and use the project! How does it iit with current proJects/ priorities? CONDUCT A PILOT PROJECT 1 Do internal clients find it useiui? Will they supponfpay! To what exrenr! Who mll oppose IL? Why? ;fEysNCE TO OTHER POTENTIAL How do prospeas vim the proaucr! What needs does it satisfy? Have we deslgncd the nght produa! / tiXAPsTO OTHER TEST .irc tkdings consistent! .tie there log8suc/quaiity problems! Did promotrons resuit in expccrea s3la! ( Is the project valid/reliable? Does it meet needs of ail company locations! Have the beneiits been property iommuxlLcarea? ASSESS OUTCO,ME IN ADVANCE ! Which funcuons are aifectco and how! Will it cause contusion! Have ttma. raourca dr costs been aeuuicd? .-NALYSE. ?IlEASURE. PROJECT T What tmpaa on other iuncuons! Detaucd buaga and plans. Have d impticauons been conslderca? /ESPA%D TO A NATIONAL LaIUNCH i : 1,MPLEMEM COMPANY WIDE i Does tne poremat ourwaqh nsics! . e promorlons ana follow-u! 3 ;iannea! .tie 10glsua ana supply lines rcaav? Have we mcxns ior ldcnufying scrwcc xooIcmr. ana dissausiacuons! Doa project add to HR’ crcntbtlitv! s Who wlii tram whom ‘ do wnat. snere. to when! Have system! we an eifecttve audit/evalUallOn Will the Issue really be resolved? management of those elements he can control. Developing a product or service for a client group is an activity over which the HR manager has a great deal of control, and consequently provides an area where management attention can be rewarded with maximum impact. H Communication. Communication represents promotional activity in the form of advertising, indirect publicity, and face-to-face selling which is employed by marketers to influence potential, or existing customers to behave in desired ways, such as to undertake the trial purchase of a product the firm has just launched onto the market. Promotion can also be used to influence employees to reconsider attitudes, to inform managers, or alter the way in which a particular programme is perceived by the clients to whom it is directed. The use of â€Å"publicity† through internal publications and other documentation can be used to provide feedback to employees on current issues, as well as enhance and reinforce the credibility of the research process. A well conceived internal promotional programme can have very positive effects on employees. It can motivate, educate, or help provide a sense of belonging. The famous Avis Rent-a-Car slogan suggesting that Avis employees â€Å"Try harder† was as effective for their employees as it was for the public image of Avis. This type of corporate advertisement primarily seeks to influence the perceptions of external publics, but management tends to forget these campaigns are also critically viewed by employees at all levels within the organisation. A campaign which lacks credibility with employees is not consistent with development of a positive organisational culture. Management should develop corporate communications which are consistent with the HRM objectives of the organisation. Simpler, less ambitious projects can also produce significant impact for the HR function. . Personal interaction with other functional areas can contribute significantly to HR marketing efforts. In situations where a service or programme is either partly, or fully dependent on the performance of employees for success, the communications and promotional activity should be concerned not only with encouraging clients to buy, but with encouraging employees to perform. commitment of both employees and management. The implementation and control processes represent the final step which involves the measuring of effectiveness and efficiency, taking corrective action, and iteration through the marketing planning processes. The well established marketing planning Success in business requires the literature† provides a framework to follow in undertaking this task. CONCLUSIONS The 1980s saw the start of a new emphasis on the HRM function. It has been pointed out that the reality is that a firm adopting ‘ HRM’ may simply involve a retitling of the old personnel department with no obvious change in its functional role, or it may be ‘ strategic HRM’ which represents a fundamental reconceptualisation and re-organisation of personnel roles and departments. 18 There are different models of HRM and this has importance for its evaluation. g The focus of strategic HRM encompassesall those decisions and actions which concern the management of employees at all levels within the organisation and which are directed towards creating and sustaining competitive advantage*O, but recent European research suggest that ‘ strategic HRM’ is still not widespread. Findings from the Price Waterhouse/Cranfield HR research project shows that in many European organisations HR strategies follow on behind corporate strategy rather than making a positive contribution to it; and although HR representation at board level is becoming more common, this does not necessarily bring with it involvement in key decisions. l Some firms have been able to integrate HR and strategy but to achieve this it usually requires a concentrated and multi-dimensional effort. ** The scope of marketing has traditionally been limited to the exchanges that take place between organisations and their customers. More recently this scope has been expanded to encompass the field of ‘ relationship marketing’ which suggests that 23 marketing principles can be applied to a number of ot her key markets, including internal markets within the firm. We argue that there exist compelling reasons for bringing the internal marketing concept to bear on problems faced by all HR managers, but the greatest value will be obtained in these firms adopting ‘ strategic HRM’ . The shift in organisational philosophy from asset management to operations management, the introduction of new technologies to some industries, and the increased strategic importance of managing people resources effectively and efficiently, has meant the role performed by HR managers demands a much higher level of competence and professional skills. Marketing provides an action framework, and a practical approach by which the HR manager can provide effective solutions to key corporate problems. This fresh perspective will bring marketoriented HR managers significant benefits. In spite of emphasis in this paper on the need for HR managers to deal effectively with the challenges they face, it must be recognised that much opportunity for the future status of HRM lies with the CEOs. Their task is to provide organisational vision, and many have still failed to recognise the value of strategic HRM in the present business environment. In spite of this, the HR manager must share the responsibility through not having convinced top management that HRM is strategically relevant to business success. Adopting a market orientation requires the HR manager to focus on the needs and wants of internal customer groups and to stimulate internal service. An investment in the marketing approach is an investment in people. REFERENCES 1. BUSINESS WEEK, â€Å"Human Resource Managers Aren’ Corporate Nobodies t Anymore†, 2 December 1985, p 58. 2. 3. CARLZON,J, Moments of Truth, Ballinger Publishing Company, 1987. REINCHELD,F F and SASSER, E Jr, â€Å"Zero Defections: Quality Comes to W Services†, Harvard Business Review, September-October 1990, pp105-111 and BUCHANAN, W J and GILLIES, C S, â€Å"Value Managed Relationships: The Key R to Customer Retention and Profitability†, European Management Journal, Vol 8, No 4, December 1990, pp 523-526. 4. BERRY, L L, â€Å"The Employee as Customer†, Journal of Retail Bunking, Vol 3, No 1, March 1981, pp 33-40. 5. BAIRD, L and MESHOULAM, â€Å"A Second Chance for HR to Make the Grade†, I, Personnel, Vol 63, No 4, April 1986, pp 45-48. 6. PETERS,T J and WATERMAN,R H JR, In Search of Excellence: Lessons form America’ Best Run Companies, Harper & Row, 1982. s 7. 8. KOTLER, P, Marketing Management, 5th edition, Prentice-Hall, 1984, p 4. COLLINS,B A, â€Å"The Friction Between Marketing and Finance†, The Australian Accountant, Vol 55, No 4, May 1985, p 45-48. 9. 10. MURPHY, P E and ENIS, B M, Marketing, Scott, Foresman & Co, 1985, p 16. PAYNE, A F T, â€Å"Developing a Marketing Oriented Organisation†, Business Horizons, Vol 31, No 3, May-June 1988, pp 46-53. 11. VANDERMERWE, and GILBERT, D, â€Å"Making Internal Service Market Driven†, S Business Horizons, Vol 32, No 6, November-December 1989, pp 83-89. 12. 13. Berry, ob tit DRUCKER,P F, Management: Tasks. Responsibilities, Practices, Harper & Row, 1974. 14. WEINSHALL, D, â€Å"Help for Chief Executives: The Outside Consultant†, T California Management Review, Summer 1982, Vol 24, No 4, p 47-58. 15. CUPPER,L G, â€Å"An Employer’ Viewpoint on the Use of Dialogue in Industrial s and Employee Relations†, Melbourne University Business School Association Journal, Vol 10, No 1, 1987. 16. DESATNICK,R L, â€Å"Marketing HRD: The Creditiability Gap That’ Got To Go†, s Training, June 1983, Vol 20, No 6, p 52. 17. MCDONALD, M, Marketing Plans: How to Prepare Them: How To Use Them, Heinemann, second edition, 1989. 18. See GUEST, D E, â€Å"Human Resource Management and Industrial Relations†, Journal of Management Studies, Vol 24, No 5, 1987, pp 503-521 and GUEST D, â€Å"Personnel and HRM: Can You Tell the Difference? â€Å", Personnel Management, Vol 13, No 1, January 1989, pp 48-51. 19. 20. TYSON, S V and FELL, A, Evaluating the Personnel Function, Hutchinson, 1986. MILLER P, â€Å"Strategic HRM: What It Is and What It Isn’ Personnel t†, Management, February 1989, ~~46-5 1. 21. BREWSTER, and SMITH C, † Corporate Strategy: A No-Go Area for C Personnel? â€Å", Personnel Management, July 1990, pp 36-40. For a US view also see: BURACK,E H, â€Å"Corporate Business and Human Resource Planning Practices: Strategic Issues and Concerns†, Organisational Dynamics, Vol 15, No 1, Summer 1986, pp 73-87. 22. BULLER, P F, â€Å"Successful Partnerships: HR and Strategic Planning at Eight Top Firms†, Organizational Dynamics, Vol 17, No 2, Autumn 1988, pp 27-43. 23. M, CHRISTOPHER, PAYNE, A F T and BALLANTYNE,D, Relationship Marketing. Bringing Quality, Customer Service and Marketing Together, Heinemann 1991 (forthcoming).

Ops 571 (Operations Management) Complete Class Week 1 -5

OPS 571 (Operations Management) Complete Class Week 1 -5 IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://hwnerd.com/OPS-571-Operations-Management-Complete-Course-1495.htm?categoryId=-1 If You Face Any Problem E- Mail Us At Contact.Hwnerd@Gmail.Com OPS 571 Complete Class Week 1 – 5 All Assignments and Discussion Questions – A+ Graded Course Material Week 1 Individual Assignment: Design a Flowchart for a Process Select a process you perform daily but would like to spend less time doing, such as driving to work. Don’t use something as simple as combing your hair, reading email or taking a shower. Those will not give you enough data points to complete the assignments in latter weeks.†¦show more content†¦How might your organization rely on these methods to become more competitive and efficient? 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