As a matter of fact, innovation is the main tool which can be effectively used by the management to have an edge on the competitors. Most of the renowned business organization has used it effectively in their competition strategy. Company lacking in this field may soon find them out of market or facing shrinking market share. It is said that innovation is not just the creative idea of your mind but it should be practically done to make something different.Quote by Ted Levitt quotes is worth mentioning here. He says, “Just as energy is the basis of life itself, and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress”.Innovation enable management to carry on business activities in a more efficient and effective manner by either capturing a new market or increasing the share of the company in an existing market which will place it in a better position as compared to its competitors. For example, by introducing a cheaper but same quality of raw material, a company can reduce its cost of production which will in effect reduce the product price and increase the sale and profit.Similarly, by introducing a new product such as Hair Colour having no side effect, the company can create a new block of customers which will give place it on an advantageous position viz. a competitor. Another example can be introducing new method of marketing its product such as home delivery of food items which will enhance its market share and thus increase its sales and profit.Innovation has become so important in business enterprises that a new subject, “Management of Innovation” has been developed. The study of this subject will help in understanding the process of innovation, improving the skills to create new ideas and in managing the innovation process. The subject will also help to understand the dynamics of change and their effects on the leadership amid the competitive world.
The company deals in the shipment of various goods and this provides a competitive edge compared to other companies that specialize in the shipment of goods from one line. The company also boasts of an edge over competitors in regard to its extensive network globally and essential in improving the company’s sales across the globe. In terms of modernization, the company boasts of modern vessels compared to competitor’s vessels and this is important in enhancing the shipment of sensitive cargo. The strategy of focusing on long term contracts is essential in terms of maintaining a significant number of clients that deals in large shipments globally such as Nike and Walmart. The existence of extra add-value services as offered by Maersk Line is very essential in terms of enhancing customer satisfaction, often disappointed with delays in the delivery of goods. In this sense, despite Maersk Line improving its competitiveness in container shipping, the challenges that still exist in the container shipping business require the company to adopt other business strategies significant in resolving the identified challenges.Differentiation as a business strategy is important in terms of improving a company’s advantage over competitors in the same line of business. This is important in attracting and maintaining previous customers or clients that a company serves, and the main features of differentiating involves reviewing a company’s available human skill, the techniques used to provide services to customers and brand name incapable of duplication by competitors, without incurring extra costs and risks. In addition, differentiation as a strategy entails setting out predetermined measures ideal in producing or delivering services to customers in a way that customers view as different (Slack Fremont 2009, p.26). As a result, the strategies that Maersk Line intends to implement should target the unique needs of the customers and in a way that provides Maersk Line a competitive edge. The current trend in container shipping business is hyper-competitive and adopting a formidable business strategy in terms of differentiation is necessary. Companies often compete by either adopting a low price strategy or implementing an efficient differentiation strategy that improves sales. In essence, differentiation as a marketing tool is important for any company’s survival in a competitive global market. While Maersk Line intends to address the challenges, it has identified in the container shipping industry to improve its competitiveness, it is also important to look at issues such as the performance gap, as felt by customers in the container shipping industry (Slack Fremont 2009, p.30). This is important in terms of positioning the company to meet the customer’s unique needs or preferences. In addition, it is important to provide insight to the customers in regard to adopting a different strategy contrary to the strategies adopted by other competitors in the same line of business. Maersk Line as part of their differentiation strategy, have decided to focus on reliability, simplicity and environmental impact to improve its position as a sustainability leader in the container shipping industry (Slack Fremont 2009, p. 34).
Although all participants in these economies experienced significant changes, consumer behavior changes form a critical indication.An economic downturn in the North Atlantic and Europe has seen consumer buying patterns change from big-time spending to limited spending, even though consumer behavior may be influenced by other factors such as cultural beliefs. Changes in consumer behavior basically entail the variations in the process a consumer uses to make a purchase, use, and disposal decisions, alongside influential factors such as economic progress with regards to product use and purchase decisions. Consumer decision making follows a step-by-step decision-making process that involves prospective consumer’s need recognition, alternative evaluation, actual purchase, and then post-purchase behavior (Lamb, Hair and McDaniel, 2010, p. 189). However, this decision-making process is influenced by a number of factors such as cultural norms, purchasing power, product quality, and supplier marketing strategies among others.Households, being the perennial consumers, consider the economic crisis as a cause of the alarm and have started taking a more cautious approach when it comes to spending for the household. More so, household saving levels allude to a relaxed or cautious approach towards future economic possibilities with regards to general economic trends. An economic downturn in Europe and North Atlantic has seen an accelerated return rate to household traditional norms of borrowing and saving that constitute a major driving force behind consumer behavior. Consumer behavior changes among individuals and households basically follow the income labor dynamics that have been largely influenced by economic downturns. Spending, saving, and borrowing decisions by individuals and households can, therefore, be attributed to the economic downturn in Europe and North Atlantic.Consumer behavior during the European and North Atlantic crisis has presented a wide range of economic uncertainties and hardships to consumers whose buying patterns are dictated by perceived risk.
Increasing insecurities, volatilities, and complexities at the market place alongside escalating global competition are compelling the business organization to spend in creating and sustaining customer relationships (McKenna 1991). Innovative and advanced marketing tool instruments are being invented to create, satisfy and maintain customers for realizing viable competitive advantage.Customer Relationship Management (CRM) has recently come out as a strategic tool for current businesses. It has its beginnings in the time-honored business principle which claims that every business operation should revolve around customers (Anderson Kerr 2002). CRM involves customized or personalized service or one to one relationships that demand full employee involvement in customer service. Every employee of the organization has to be familiarised with building customer advantage (Greenberg 2004). It necessitates delineating primary business and customers, developing and consolidating business processes, and putting into effect and supervising programs intended to build customer advantage (Jha 2008). If executed efficiently and appropriately CRM provides immense gains to businesses in terms of profitability, improved service cost and time, and customer satisfaction.Strong customer relationships furnish businesses with numerous advantages. Primarily, the relationship can generate a loyal customer. The loyal customer, more than simply a repeat buyer, has an emotional bond to the supplier (Abram Hawkes 2003). These emotions can involve liking, confidence, and trusting in the organization’s capability of responding efficiently and promptly to a customer complaint or problem. Loyal customers can be perceived as business assets who are a potential source of beneficial word-of-mouth recommendations and are more unwilling to offers of competitors (Payne 2005).Moreover, CRM systems offer a leverage point to achieveeconomies of scope.
Marketers need to mold their products according to different markets in order to better satisfy their needs.I have chosen Forever21 as the organization that I will analyze, in the Chinese market. Forever21 is one of the famous clothing stores existing today. It is known for its trendy and fashionable clothing offered at low and affordable prices that undercut even those of its major competitors, such as HM clothing and others like Urban Outfitters and Guess.The company has been offering fashion and accessories to teenage men and women for more than 20 years now and most of its apparel is made in California, U.S.A. Forever21 shows no signs of slowing down as it has started making its way across Asia. Despite the recession, the giant retailer is progressing with bold expansion plans.This paper will discuss Forever21’s current marketing techniques and its market segmentation, pricing, positioning, promotional and target market strategies (making some suggestions in regards to the principles learned in class). If these strategies are not customized according to the target market, there are huge chances that the product might fail.Culture is mainly defined by the people’s beliefs, clothing, tools, attitudes, values and religions. All this affects the choices that people make in buying their products. China has a diversity of cultures. some people are still tied to their traditional beliefs while a good number has been relaxed. Therefore it is an appropriate nation that can accommodate the various designs of Forever21 clothing. Forever21 deals in clothes like robes bound feet shoes and cheongsams that are preferred by the Chinese.People have diverse tastes in every part of the world. Forever21’s clothes must be designed and made for diversity. The clothes should be of different colors and made of different materials putting into consideration the different attitudes of the cultures in colors, especially for the Chinesemarket.
It is evident that both sectors are different in terms of the product as well as the basic business model involved. The marketing techniques used by these sectors also differ as their processes will have varying objectives and goals. Though there are a number of changes in the marketing techniques applied by the service sector, the traditional marketing techniques cannot be considered as completely obsolete for the service sector.Traditional marketers focus on the main transaction factors, as the sales involve tangible goods and affect the direct revenue to the company. Marketing is considered in isolation, as a means to take the product to the customer, i.e., it does not affect the production strategies and the high-level management of the company. Traditional marketing, unlike service marketing, is transaction-focused and product-focused. Marketing was considered as a process of decision making involving price, place, promotion and product. These involved segmenting the market and focusing the target markets, developing products based on customer requirements, choosing the appropriate operational logistics, intermediaries and outlets, and also on setting the prices based on the target segment and the price they are willing to pay. Branding was also given great importance (Jobber, 2004).In the service sector, marketing is considered in conjunction with all the other activities, unlike the goods sector. Marketing is given prime importance and the processes are designed with the focus on the end-user. The service sector mainly focuses on providing excellent service and satisfaction to the end customer. For a service business, the process, people and physical evidence are also equally important. However, the essential elements such as the price, promotion and place are also given prime importance in the service sector.
In accordance with Parnell (2003, 16) ‘in many respects, the evidence for the existence of a strategy can permeate an organization. sharing strategic information with lower-level managers and employees may enhance both job comprehension and organizational commitment’. In other words, the introduction of a specific leadership in a particular organization could not guarantee the positive performance of the specific organization. various obstacles could intervene in the successful completion of the relevant strategy while its effects on the firm’s organizational structure could be influenced by a series of factors like the position of the firm in the international (or the local market), the culture of the organization and the leadership practices applied on the organizational activities. In fact, in the study of Rand (1999), it is noticed that ‘businesses fail because management does not have effective control of the business as management is too far removed from revenue-producing processes. visibility is nonexistent or, at best, extremely limited’ (Rand, 1999, 97). In other words, a firm’s operation could be strongly affected by the fact that the decisions of its leader are not the appropriate (taking into account the current market conditions and the position of the firm within its industry). Furthermore, in order to avoid the risks related with the lack of appropriate control over the organizational activities, a leader should proceed on the close examination of the following business activities/ sectors: ‘inputs (materials, energy, information, management, technology, facilities and labor), transformation (or conversion process) and disposition (marketing and sales)’ (Gomez et al., 2002, Ch.15). The extended reference to the decisions of leaders in modern firms is made because of the importance of these decisions for the performance of all organizations operating internationally.The current paper focuses on the leadership practices used across all organizational departments of a particular British firm, Marks and Spencer.
According to Sims and Montana state university (312), the intention of the Agricultural Marketing Agreement Act (AMAA) is to be able to establish and even maintain orderly marketing conditions for commodities in the agricultural sector in interstate commerce. This will enable farmers to receive higher prices. The AMAA also protects the interests of consumers by ensuring prices deems to be in the interest of the public and be feasible. This should be in view of the existing consumptive demand in the domestic and foreign markets. The farmers in such regions were authorized by the government to form cartels. This would help in setting controls on the amount and even the quality of products that might be imported to these regions.According to American Agriculture (228-229), Agricultural Marketing Orders (AMO) is legislation allowing producers to be able to withhold output from a specific market for them to be able to increase the market price. In other words, Marketing orders are legal instruments designed to help stabilize market conditions for commodities in the agricultural sector. Marketing orders established a self-imposed assessment and fee used in various activities in the agricultural sector. The activities include advertising and farmers being able to promote their agricultural products. Secondly, the fee will assist in the expansion of markets and distribution channels. Thirdly, the producers will be able to carry out research on how to improve growing techniques. Fourthly, it will enable farmers to regulate their products in terms of quality and grade. Therefore, trade practices will be regulated. The final point is that producers will be able to resolve various critical problems and their various needs in the industry. Marketing orders were established for various commodities with a requirement of 2/3 support of the producer. It helps to regulate the handling of various commodities in instating or even foreign commerce. According to Engle and Quagrainie, (118) in the requirements of the regulations, marketing orders for a commodity or its products, other than milk has to be designed to achieve the following goals.
Entrepreneurship Climate in the OrganizationHow well do new ideas arise and to what extent are they considered and implemented?The traditional management concepts are mainly driven by perception of opportunity and controlled resources. Strategic orientation is determined and met within short duration with complete promise to every chance resulting up to a greater distance. But, the latest approach of entrepreneurship even focuses on the unofficial network structures maintained by the entrepreneur which helps in the betterment of management set up in turn. “Entrepreneurship at the firm level is not surprising because both entrepreneurship and strategy have important implications for the performance of the firm.” (What me worry? How smart entrepreneurs harness the power of paranoia, n.d., p.62). The person who defines and designs various strategies is equally evaluated as his forwarded strategies. The novel ideas arise from various innovations occurring to contemporary marketing and management necessities. Those identified new approaches are often accepted by almost every firm to a maximum extent as they wish to run with the pace of existing business scenario. But, it is a real time fact that they are unable to implement those up to a cent percent limit. yet they are approaching of course.What is the organization’s overall attitude toward innovation and change?Innovation and changes are tried to be adapted and implemented to the organizational structuring and functioning because a delay to capture novel variations in trade sector will make position to be degraded from the current. Traditional approaches keep track of resources and their utilization and related strategic possibilities limited within themselves. This can never help a firm out to a higher status in current market set up. “Opportunities are focus of entrepreneurially managed firm.” (What me worry? How smart entrepreneurs harness the power of paranoia, n.d., p.61). Organizations can meet their entire objectives only from chances they achieve in their field of play. So, it becomes to make up for an attitude to accept and work towards modernization and revolutionize organization’s age old trends and approaches. Entrepreneurial culture can be cultivated to handle threats and challenges just to pace towards excellence of business and profit.Based on your findings, what recommendations would you make to your organization’s leadership to increase an environment of creativity and innovation?The answer can be started with the words of Dave Lakhani who is the entrepreneur in Boise, Idaho saying “if you’re not a little bit paranoid, you’re complacent…..complacency is what leads people into missed opportunities and business failure.” (What me worry? How smart entrepreneurs harness the power of paranoia, n.d., p.61). This is the same idea of Andrew S Grove, president and CEO of Intel Corp. who supports on paranoid requirements of an entrepreneur, which is accepted to the organization as well. The suggestion is on the same requirement for applying the same strategy for all firms to achieve entrepreneurial management success for organization, but paranoid character should never interfere with crucial analytical values of entrepreneur. Single managerial approach within all sections of the firm is accepted for proper link between hierarchal levels. The objective is to meet not the course of execution which is very much essential criterion for success. Formal-informal discrimination gets narrowed then while working for our destiny.Finally, cite and explain at least one real example that supports your analysis.The analytical recommendations hold good for almost every firm especially those that are not referred to as huge enterprises. The real illustration can be done with a small trader challenged by the launch of a Hypermarket or something like that. In such a situation, if he becomes panic due to his extreme paranoid character, he loses his entire ability to scrutinize the situation and put forward for betterment and adaptive strategies. The idea that “experience tends to make them more confirmed in their paranoia as they go along” (What me worry? How smart entrepreneurs harness the power of paranoia, n.d., p.62) is worth mentioning at this point of examination. The competitive threats and advantages are to be identified critically to face it and it can bring about success. As per my suggestion he can evaluate his situation and current trend to dig out possibilities of his firm as well as available novel facilities to get adapted to situation of challenge probable due to the new launch of hypermarkets. Informal outward relationships with customers can be a valuable strategy in this regard.Reference ListWhat me worry? How smart entrepreneurs harness the power of paranoia: (n.d.). As Seen Entrepreneur Magazine, OMM 164: Entrepreneurship. pp.61-62. (Provided by the customer).
This is the leading reason why every company, be it a large multinational or a small home-based startup, should pay attention to its marketing teams and increase the importance placed on the strategies that they come up with. While the main focus of any business is the creation and retention of capital, there is little attention paid specifically to the customers who will be their main source of income. Many companies associate the client and the product that they serve as two different entities, in that product creation happens first before they start targeting a client base to sell it to. In a truly customer-oriented company, the development team identifies a niche in the needs of the client base and develop targeted products that fill these niches (Boscor, 2011). The companies that employ this strategy have a better understanding of the tastes and preferences of their clients and as a result, increase the number of repeat clients that they have, which effectively increases their productivity. The world of business is full of examples of the successes and failures of companies, which essentially increases the knowledge base from which new strategies evolve. One of the country’s best examples in customer relations is Starbucks, a Seattle startup that grew to the giant with 17,000 stores spread over 50 countres with an annual groth rate of about 20% p.a. (Boscor, 2011). These figures act as an inspiration for many business models available today and is indicative of the success that companies would achieve by adopting similar strategies. This is also the reason why the strategies employed by this company warrant such attention and a deeper sense of understanding. One of the ways a company can ensure that it maintains its image and goals is to establish a company profile that future employees and clients can relate with. Since its beginning, the company motto revolved around developing an enthusiastic and satisfied customer base, which was in line with their focus on clients instead of products (Boscor, 2011). While this may not be considered a business move by some, it acted and still acts as their core value and has not failed the company since. As a result, their products and services centre on the specific needs of each client and the company motto is the leading factor that drives their product development and ultimately, their brand’s success. As a leading company in the food service industry, McDonalds targets a different niche in the same market as Starbucks. From the time it opened up its first store in 1940, McDonalds has also risen to the heights of the service industry and now boasts over 32,000 stores spread over 117 countries (Boscor, 2011). This is all in the face of competition which has risen to stiflin proportions in the last decade. The company, however, has maintained its position as industry leader despite these challenges due to constant adaptations to fit the market and this establishes it as one of the successes of our time. Different companies approach their expansion processes in various ways and each alternative has a profound effect on the future of a company. As a market-conscious company, McDonalds handled their transition into international markets quite well. Their chosen method of expansion is franchising and this allows them to better understand their markets. They were considerate of the cultural