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1
Today’s Business Environment
V
U
C
A
Volatility
Uncertainty
Complexity
Ambiguity
Deeper Meaning
- Nature and dynamics of change
- Lack of predictability
- Multiplex of forces, chaos and
confusion surrounding an
organization
- Haziness of reality
2
Global Business Strategy
Introduction Many companies have expanded globally for reasons of trade & wealth;
- Why is it becoming important over the
years? -Why do firms want to expand for example; N. America, Europe, Japan?- Is Global Business Strategy just the same as home strategy but just an expansion of scale of business?
http://www.global-strategy.net/what-is-global-strategy/
3
Global Business Strategy
Introduction- Let’s look at some facts;- In the 1970’s ~ 90’s, world trade was growing much faster than manufacturing. There are few reasons that begin to explain the complexity of international & global business strategy1. Barriers to trade were coming down. E.g; successful negotiations of
trade between countries of GATT (General Agreement on Trade & Tariff) & the completion of the single Europe (Single Europe Act, 1986), coming up of North American Free trade Association, WTO to settle disputes, WB to finance world trade
2. Many international companies like Swiss Co. Nestle, Japanese firm Toyota has increased the breadth & width of their businesses internationally
3. Technology has changed dramatically, which has made the world a much smaller place
What all this means for a business strategy? Does every company need to have an international strategy?
http://www.global-strategy.net/what-is-global-strategy/
4
Global Business Strategy
Introduction- Small answer to it is;- Foreign Trade: consists primarily of exports & imports- Foreign Direct Investment (FDI): a long term investment in technology, management skills & the physical assets in the local foreign subsidiary. FDI is much more risky than exporting from your home country
- Three strategic approaches that have major implications on International & Global Business Strategies are: 1. International: when a significant proportion of a company’s activities
take place outside its home country. But main focus remains the home country2 Multinational: when a company operates in many countries, even
though it may have a clear home base3 Global: when the company treats the whole world as one market &
one source of supply- The above mentioned three strategies are based on a company's; 1. Resources 2. Capabilities 3. Current international position
http://www.global-strategy.net/what-is-global-strategy/
5
Global Business Strategy
Introduction1. International: In South Korea, international and global soft drinks
strategy will involve mixing both the global brands like Coke and Sprite with the local brands like Pocara Sweat
2. Global: However, the Apple iPod was essentially following the same strategy everywhere in the world.
- One of the basic decisions in global strategy begins by considering just how much local variation, if any, there might be for a brand
- Another more basic decision might be whether to undertake any branding at all. Branding is expensive. It might be better to manufacture products for other companies that then undertake the
expensive branding. Apple iPods are made in China with the Chinese company manufacturing to the Apple specification. The Chinese company then avoids the expense of building a brand. But faces the strategic problem that Apple could fail to renew its contract with the Chinese company, which might then be in serious financial difficulty
3. International Strategies: Different strategies adapted for different markets. Together, these form the ‘Multinational Strategies’. For example, a car company might have one strategy for the USA – specialist cars, higher prices – with another for European markets – smaller cars, fuel efficient – and yet another for developing countries – simple, low priced cars
http://www.global-strategy.net/what-is-global-strategy/
6
Do we really have (or even want) a ‘Global’ Strategy?
Sell Internationally
http://www.global-strategy.net/what-is-global-strategy/
• Companies talk about ‘going global’ when what they really mean is that they are moving internationally, outside their home countries• Strategic Implications for the two words are completely different
Might typically include:•A sales team•Brochures of products in various
languages•An office team to handle sales orders
back in the home country
Sell Globally
Might typically include:•Manufacturing plant in various low labor
cost countries•Global branding and advertising•Sales teams in every major country•Expensive patent and intellectual
property registration in many countries
So, why ‘go global’ if the required resources are much greater and, incidentally, more complex to manage? Because the business rewards are supposed to be much greater for a global strategy. And so are the risks!
7
Even if companies have a global strategy, this takes years to develop and requires substantial resources
- PepsiCo dominates savory snack products around the world- It still has local brands like Walkers Crisps in the UK- It does not use its Lays brand name in the UK, but employs Lays in much of the rest of the world. Why? - Historical reasons that began with the PepsiCo acquisition of Walkers, which was already UK market leader- It needs many millions of US$ and substantial management time and expertise. For example, Coca Cola took many years to develop its current position in the world soft drinks
market
8
Why is Global Strategy Important?
From a Company
Perspective
- Provides the opportunity for new sales and profits. In some cases, profitability is so poor in the home market that international expansion may be the only opportunity for profits. Example: poor profitability in the Chinese domestic market was one of the reasons that the Chinese consumer electronics company, TCL decided on a strategy of international expansion. It has then pursued this with new overseas offices, new factories and acquisitions to develop its market position in the two main consumer electronics markets, the USA and the European Union- Resource Seeking: For example, oil companies expand in order to secure resources- Efficiency Seeking: Clothing companies expand in order to take advantage of low labor costs in some countries - Strategic Asset Seeking: Some companies acquire foreign companies to enhance their market position versus competitors
http://www.global-strategy.net/what-is-global-strategy/
From a Customer
Perspective
- Lower prices for goods & services – Good quality product - Example: Nike sources its sports shoes from low labor cost countries like the Philippines and Vietnam. Customers buy it because of global image- Example: Disney cartoon characters or ‘Manchester United’ branded soccer shirts
9
Why is Global Strategy Important?
From International
Govt. Organization's
(WB) Perspective
- Recent dominant thinking has been to bring down barriers to world trade- But, giving some degree of protection to some countries and industries is important as well- Global strategy is an important aspect of such international negotiations
http://www.global-strategy.net/what-is-global-strategy/
From International Non- Govt.
Organization's (Oxfam)
Perspective
-The global strategies of some – but not necessarily all – multinational companies are regarded with some suspicion- Such companies have been accused of exploiting developing countries, for example in terms of their natural mineral resources
10
How do you build a Global Strategy?
http://www.global-strategy.net/how-do-you-build-a-global-strategy/https://www.youtube.com/watch?v=niio9ZV5x_k
Analyzing the Market
Identifying Company’s
Competitive & Other
Resources
Company’s International
Objectives
Circular Process covering two related subjects• Methods of entry: export, alliances, acquisitions• Choosing the country/ geographical region: Where &
Why
Developing a detailed service of product offering:Pricing, PromotionService Levels, Organization,HRetc.
Managing the
Business Internatio
nally: Innovation & Learning
Play Video 1
11
Five Main Areas in Analyzing International Opportunities
• Customer demand in the main broad geographical areas: market size, growth and history
• Competitors: local and international companies already in country markets, their market
shares and basic facilities -what major competitive advantages do they have?
• International and regional infrastructures: major costs involved in
communicating, transporting and distributing in various parts of the world
• Country politics and economic trends: political risk and economic growth – too much to
analyze in depth at this stage
• International trade barriers, tariffs and quotas: are there any major issues here that will
support or block the market opportunity?
http://www.global-strategy.net/what-is-global-strategy/
Play Video 2, 3, 4
12
Competitive Advantage for a Company
• Differentiation: unique features or attributes that set a company apart, such as a brand or
special level of service
• Low costs: but these need to be translated into a customer benefit like lower prices than
competitors
• Dominance of a part of a market, such as a market segment or niche
• High performance or technology: perhaps a patented process
• Quality: superior to rivals for example in performance or durability
• Service levels that are superior to rivals: perhaps in national coverage
• Network of relationships: people and business contacts that set the company apart
• Specialist technical skills and other areas of specialist expertise – sometimes called ‘core
competencies’
• Branding: from one country that might be extended elsewhere to other countries
http://www.global-strategy.net/what-is-global-strategy/
13
Setting Company’s International Objectives
Why go international? The answer will determine the strategic approach
What profits do we expect over what timescale and with what risk?
What commitment is needed and will be given by the top management team?
http://www.global-strategy.net/what-is-global-strategy/
• Why go international? - Desire to acquire overseas resources such as minerals or oil that are not available in the home country - Need to generate growth beyond the home market - Seeking greater cost reduction and efficiency - Searching for strategic assets, such as attractive takeover targets, to deliver market share and branding - Fierce competition in the home market - World wide web availability• What profits do we expect over what timescale and with what risk? - In early 2010, Ryanair (European budget airline) announced that it had made a loss of 10.9 million Euros, during the period October to December 2009 - However, it was also the fastest growing airline in Europe - From an international strategy perspective, the company was quite prepared to accept a short-term loss as it continued to build market share
14
http://www.global-strategy.net/what-is-global-strategy/
Market Entry and Mode
Method of entry
Set up an overseas office: this will provide a permanent presence in a country selling a product or service
Export: make in home country
Begin the first overseas manufacture: required the recruitment of local people and the commitment of major finance to a country or region
Develop multinational operations: invest in several countries or a region of the world, e.g. Europe or China. It may involve anacquisition or a Merger witha local company
Develop a global operation: true, integrated co-operation,
15
http://www.global-strategy.net/what-is-global-strategy/
Market Entry and Mode
Choosing the country or geographic region
Population size, density and distributionPolitical issues: ‘dictatorship versus democracy’ and ‘left wing versus right wing’. The
degree of change and the stability of politics are crucialTrading issues: country membership of trade groups, the barriers to entry into the nation
and the ability to export not just good from the nation but profits back to the home country
Financial and tax issues: Taxes imposed, the banking and financial structures, insurance, legal ownership of assets like factories, ownership of intellectual property like patents and
brandsNature of economic activity: largely rural? degree of urbanization?Methods of distribution, e.g. small shops or supermarkets, roads and transport
infrastructure and investmentTelecommunications and the availability of the internetCulture and languageEducation and training: levels, apprenticeships, higher levels of educationReligious and ethical issues: these are important and must be respectedMarketing and communications: how to promote the product? what media available? at
what cost?
16
http://www.global-strategy.net/what-is-global-strategy/
Market Entry and Mode
In choosing a country, it is often appropriate to begin by collecting basic country comparative data on such topics as;
Growth in national wealth, measured both as total wealth (GPD) and also as wealth per head of the population
Balance of payments dataPrice inflation and impact on currencyUnemployment rateExport and import trade statisticsGrowth of money supplyAreas and levels of economic activityBasic political and economic stability
17
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
Introduction- The Kellogg company was founded in 1898 by W.K. Kellogg and his brother, Dr. John Harvey Kellogg- Through experimentation with flaked corn, W.K. Kellogg created the recipe for Corn Flakes- In 1906, he opened the “Battle Creek Toasted Corn Flake Company” and recruited his first 44 employees- Brought to life his vision for great-tasting, ‘better-for-you’ breakfast foods- Today, over a hundred years since it was first founded, the Kellogg company still upholds his original values- The company is the world’s leading producer of cereals and a market leader in health and nutrition- Kellogg’s was one of the first companies to print nutrition labels on its packaging and, in 2007, was amongst the first companies to print Guideline Daily Amounts (GDA) on its products to inform the public about the food they are eating- With a vision ‘to enrich and delight the world, through foods and brands that matter’ Kellogg’s employs over 31,000 people worldwide- Its products are manufactured in 18 countries and sold in over 180 countries
Brief Co. Profile
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
18
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
- Kellogg’s well known cereal brands include Coco Pops®, Rice Krispies®, Crunchy Nut® and Special K®- With a 37% market share of the value of the UK’s breakfast cereal market, Kellogg’s has a wide range of products including 25 brands of cereals, cereal bars, and snacksThis case study demonstrates how Kellogg’s uses groundbreaking and innovative strategies to market its products
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Brief Co. Profile
“Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.”
- The Chartered Institute of Marketing- A marketing strategy determines; 1. What a company is going to produce in terms of products or deliver in terms of services 2. How much it is going to charge for these products or services 3. How it will deliver these products or services to the customer 4. How it is going to tell its customers about its products and services
Marketing: Concept
19
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Marketing: Concept
4 Ps of Marketing
Product:Creating the right product
Price:Sold at the right
price
Place:In the right
place
Promotion:Using the most
suitable methods of promotion
- Offering a wide range of popular products and regularly introducing exciting new products to the market- Pricing its products to ensure that customers receive the best possible product for their money - Help ensuring its products are available wherever shoppers are, from supermarkets, to the internet or on-the-go, and by understanding shopper behaviors - Delivering engaging and exciting marketing communications
Every business will determine its own balance of the 4Ps to suit the needs of its customers
Kelloggs & 4 Ps
20
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Kellogg’s Marketing
Strategies & Research
Kellogg’s marketing objectives- To get its products into as many households as possible by providing new ways to make a positive impact on peopleTo achieve this objective Kellogg’s needs to undertake detailed market research to understand and test the market for customer preferences
In a groundbreaking initiative Kellogg’s created and implemented a Crunchy Nut (CN) restaurant in 2012 & 2013
It invited consumers to a unique ‘outdoor’ experience to taste new products and actively engage with the Crunchy Nut brand
“You are invited to enter the Crunchy Nut restaurant – at your own risk! Inside you can enjoy one of the eight irresistibly tasty options from the menus with a choice of juices to compliment your food.”
21
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Results- Located at the Manchester Arndale shopping centre, the 2013 restaurant served 9,049 customers over a 12 day period- Many customers were surprised that everything was free of charge- Over 8000 50p-off coupons were distributed, and the redemption rate of those coupons exceeded the industry average- Kellogg's Digital Marketing Strategy: - Customers were invited to leave feedback on their experience through
the use of social media channels - The use of Facebook and Twitter enabled Kellogg’s to reach almost a million people - The CN restaurant ran a Twitter competition and offered a specially designated Wi-Fi code to encourage Facebook/Twitter usage. The first competition, ‘tip with a pic’, encouraged visitors to take photos of themselves and friends, upload them to Twitter ‘Consumers constantly made comments on their shock that they were being given a free bowl of cereal. The overall look of the stand impressed many people with them thinking it was a proper eatery and queuing up expecting to pay’- As a result of this initiative, £10,000 in media value was delivered across social channels and 2m shoppers were exposed to the CN restaurant
22
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Promotion: Concept
AIDA is a tool that can be used to make marketing communication more effective
Initiating awareness amongst non-customers or increasing knowledge of new offers for existing customers
Generating interest for and a desire to have the product
Ensuring action to purchase
Above-the-line promotion aims to inform and raise brand awareness. It includes advertising in magazines, newspapers, online or through television advertisements. These methods are expensive and in an increasingly cluttered media world it is harder to cut through with just advertising
Below-the-line promotional activity is being used in addition to advertising, to reach and engage with consumers. Its promotion gives a business more control over how it communicates with its target audience. Its methods include social media, direct marketing through targeted mailshots, personal selling and sponsorship
23
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Kelloggs & Promotion
- Kellogg’s uses both above and below-the-line methods to promote its products- Television, radio, online, cinema and press advertising are examples of its above-the-line activity with on-pack promotions, sampling and coupons examples of its below-the-line activity
2-stage door-drop sampling
campaign
- In 2013, Kellogg’s launched its new Crunchy Nut Oat Granola (CNOG) product- It was promoted through a 2-stage door-drop sampling campaign using specially selected postal areas- Selection Criteria: 1. Homes which were clustered around stores 2. Target ‘adult taste seekers’ aged between18-45, who eat a range of breakfast cereals- The first stage of the door-drop involved the delivery of branded bags to 907,435 targeted homes in 1,014 postal sectors- These bags offered the consumer a free pack of CNOG, and to accept they had to tick a box and leave the bag on their door-step for the following morning- The second stage of the campaign consisted of filling the bags (of households who had chosen to opt-in) with a free full-size packs of Crunchy Nut Oat Granola
24
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Results- The campaign was a success with a significant impact on sales through new customers trialling the product- It also had a positive effect on existing customers, demonstrated by an increase of 6.4% in repeat purchase- The outcome of the campaign was £155.500 of extra sales and 64.800 in units, resulting in a small market share increase- As with the CN restaurant campaign, Kellogg’s social media channels were integral to the promotional activity
In- Store Promotional Campaigns
- Kellogg’s also uses promotional campaigns in-store to drive brand awareness at the point of purchase- A five week sampling tour at Tesco stores across the UK- Using branded Crunchy Nut vans, two teams drove around the UK handing out samples of Crunchy Nut chocolate cereal- Locating themselves in prime positions in stores, to capture the highest
footfall, nearly 30,000 samples were distributed to customersThis type of promotion both highlights and increases demand for products close to the point of purchase, as well as creating greater engagement with customers
25
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Evaluating Promotional
Activity
- Promotional activity is expensive - Important to be able to measure the return on the investment (ROI) in developing and implementing promotional campaigns- Kellogg’s launched a second competition which allowed the company’s wider Twitter community to get involved for a chance to win a year’s supply of CN Chocolate, reaching 766,132 people and 2,285,167 impressions served by the hash-tag ‘CrunchyNutChocolate’Monitoring and evaluating promotional activity generates sales and financial data that enables a business to measure key information. This includes consumer product preferences, increase or decrease in market share and the level of sales growth as a result of the promotional activity- ROI, for example, targeting households is more effective than mass- sampling at events
26
Balancing the marketing mix through creative and innovative strategies: A Kellogg's case study
http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/the-marketing-mix.html
Conclusion
- Getting the right product or service to the customer, at the right price, in the right place and at the right time is fundamental to business success- Understanding and balancing the marketing mix enables an organization to uniquely position its brand to drive sales of its products and services
This case study has shown how Kellogg’s is able to remain as market leader through its implementation of groundbreaking marketing strategies and by learning from every marketing campaign it undertakes. Through the use of social channels, Kellogg’s is able to innovatively market its new products in creative and interesting ways, generating opportunities to gain new customers and retain existing customers
27
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Introduction
- Parcelforce Worldwide is part of the Royal Mail Group Ltd. Royal Mail Group has three main operating brands:• The Post Office Ltd provides counter services to the high street
customer• Royal Mail manages the delivery of letters and packets• Parcelforce Worldwide provides express parcel delivery services for businesses and consumers- Parcelforce Worldwide has over 30,000 business customers in the UK- It handles 200,000 parcels a day- It has a turnover of £382 million- It has 23 partners across 30 European countries and access to Postal
Administrations through the Universal Postal Union- It operates:
- Business to Business (B2B) services, delivering parcels and supplies from companies to other companies - Business to Consumer (B2C) services, delivering parcels to individuals
in their homes
28
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Need for Change
- In 2002, Parcelforce Worldwide was making a loss- In response, those managing the business decided to change the type of service it offered- Instead of unguaranteed parcel deliveries typically taking between two and four days, Parcelforce Worldwide decided to focus on time and day guaranteed, express delivery- As a result of these changes, Parcelforce Worldwide also increased operational efficiency. The business: - Reduced the number of staff it employed - Closed some of its depots - Opened a new, technologically advanced sorting centre in CoventryThese changes enabled Parcelforce Worldwide to achieve its financial targets- It recognized that more could be done to improve efficiency- It wanted to cut absenteeism staff taking unauthorized or sick leave and reduce the time lost as a result of accidents at work- To do this, Parcelforce Worldwide introduced a more decentralized approach to management. This gives depot managers greater decision- making accountability to improve the effectiveness of the operation in their local area
29
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Differentiation
- Parcelforce Worldwide has developed a unique selling proposition (USP) based on high-quality customer service- Parcelforce Worldwide works in partnership with customers, such as the UK's examination boards, to develop and deliver services to meet specific needs. During exam season, Parcelforce Worldwide delivers millions of exam papers, scripts and coursework
This case study examines how a strategy focused on customer service can contribute to long term business development
Business Strategy
- Businesses have aims and objectives- Aims are the long-term targets of the business- Objectives are the steps that help to achieve these aims- Objectives should always be SMART (specific, measurable, achievable, relevant and set within a timeframe)- By carrying out a SWOT analysis, a business can identify the best strategies to pursue
30
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Parcelforce & Business Strategy
Parcelforce Worldwide has:- Operational strategies to improve its efficiency and meet customer needs better- Promotional strategies to strengthen its brand presence in key markets- Growth strategies to expand its business outside its core national marketsFor example, the parcel delivery industry has consolidated across the world. This means that there are now fewer global players, but each has a relatively larger market share. Parcelforce Worldwide needs to compete with these global rivals. To increase its market share, it needs either to grow its existing business or merge with other parcel delivery businesses
Customer Service as Strategy
- Customer service means talking and listening to customers The key parts of this customer service are: - Time: making sure that deliveries are on time - Visibility: letting the customer follow a parcel through online tracking - After-sales service: ensuring that any problems are dealt with courteously and promptly
31
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Customer Service as Strategy
- Parcelforce Worldwide has identified that its organizational structure is a key strength- Its people are essential to supporting quality customer service. For instance, drivers need to work with depot staff so that parcels are loaded in the right order for delivery
Diversity
- Parcelforce also needs to ensure that services are accessible by all customers- Society is now more diverse, with a larger proportion of the population aged over 60 and with more people from different ethnic backgrounds For example, Parcelforce Worldwide makes sure that: drivers write delivery cards that can be easily read by people with sight problems or by those who do not speak English as a first language- Employees learn the best way of communicating with customers with disabilities- The company also needs to find out what its customers want so that it can provide additional services;For example, in this way, Parcelforce Worldwide discovered that some customers were concerned about the affects of carbon emissions on the environment. It therefore offers a 'carbon neutral parcel' option. The customer pays a few pence more to offset the carbon impact of delivering the parcel
32
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Corporate Responsibility
- Parcelforce Worldwide takes its corporate social responsibility (CSR) seriously- This means providing benefits for employees, customers and the communities in which it operates- Its CSR programme focuses on; - Health and safety - Environment - Supporting local communities - DiversityFor example:- Reducing the carbon footprint of the business- Supporting local communities through involvement in education- Removing barriers to its services for all customers
33
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Implementation of Customer
Service
- To improve its customer service, Parcelforce Worldwide has undertaken
a “gap analysis”. This is a detailed exercise that assesses: - where the business is now - where it wants to be - what it needs to do to achieve that and howCustomer service has an impact in six main areas of the business: 1. Deliveries to the customer providing timely delivery, prompt response to queries, clear documentation. 2. Re-deliveries ensuring clear procedures are in place3. Collections from customers providing a timely service with documentation4. End-to-end parcel location (tracking) an online service with easy-to- use screens means customers can find out when a parcel has been delivered5. Customer contact improving customer communications and providing help by web or by telephone 6. Making claims making it easy for people to claim if things go wrong In each of these areas, Parcelforce Worldwide has identified best practice in the industry. It compares its performance by benchmarking itself against competitors. It then assesses how to improve its processes to achieve best practice.
34
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Evaluating the Impacts, Costs &
Benefits of Customer
Service
- Training to Employees: A customer-orientated needs appropriate training to ensure employees have the skills to meet customer needs- Measuring Performance: 1. Measures customer service by using key performance indicators (KPIs). These set targets for factors such as response times, numbers of staff trained and levels of after-sales service 2. Uses a balanced business scorecard to record progress against below mentioned four targets;- Financial includes operating margin, average unit cost- Process includes on-time deliveries and collections, attempted deliveries- Customer focus includes customer satisfaction scores, complaints- Employee/teams measured by opinion surveys
By tracking performance on a regular basis, Parcelforce Worldwide can identify areas that are performing well, as well as those that need to be improved
35
Customer Service as a Strategy: A Parcelforce Worldwide case study
http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
Conclusion- Parcelforce Worldwide is a major player in the parcel delivery market in
the UK- It also provides international services by partnering with other providers around the globe- The parcel delivery market is highly competitive. Parcelforce Worldwide
needs to differentiate itself from the competition. It has adopted a strategy based on quality customer service- It has improved efficiency and changed its focus from volume (the number of parcels carried) to value (what the customer wants - getting parcels there on time)- Parcelforce Worldwide regards its people as its most important asset. It
is developing the skills of its people to deliver high levels of customer service
By putting customers at the heart of its strategy, Parcelforce Worldwide aims to achieve competitive advantage
36
• http://www.global-strategy.net/what-is-global-strategy/
• http://businesscasestudies.co.uk/business-theory/strategy/developing-a-global-strategy.html#axzz3TIgA0cYA
• http://csis.org/files/publication/130129_competitiveness_Lenovo_casestudy_Web.pdf
• http://businesscasestudies.co.uk/vodafone/using-technology-to-improve-economies/conclusion.html#axzz3TPs2HwGa
• http://businesscasestudies.co.uk/parcelforce-worldwide/customer-service-as-a-strategy/introduction.html#axzz3TauR0frS
• http://businesscasestudies.co.uk/kelloggs/balancing-the-marketing-mix-through-creative-and-innovative-strategies/introduction.html#axzz3TIgA0cYA
• http://businesscasestudies.co.uk/aldi/creating-value-through-the-marketing-mix/introduction.html#axzz3TIgA0cYA
• http://www.1000ventures.com/business_guide/case_studies_main.html
• http://businesscasestudies.co.uk/case-studies/by-industry/automotive.html#axzz3TPs2HwGa