PGBM68 Reflection on my personal and professional development

PGBM68 Reflection on my personal and professional development

Executive summary

This report presents a reflection of my personal and professional development. From the report, it has been established that a marketing manager usually needs a wide range of skills for the purpose of conducting various activities. My career goal is to become a marketing manager. Taking this into account, I need to develop various skills that will help me in achieving this career goal.  For the aim of developing various skills, I have engaged in various group activities, attended speaker programs, and visited Bridges shopping Centre. Through these, I have gained various skills including communication skills, collaborative skills, and interpersonal skills. However, there are various skills that I need to develop for the purpose of achieving my career goal. These are communication skills, time management skills, as well as reading skills.

 

 

 

1.0 Introduction. 4

2.0 Reflection on organisational visit. 4

3.0 Reflection on group activities. 5

4.0 Reflection on speaker programs. 6

6.0 Reflection on personal development plan. 8

7.0 Conclusion. 9

References. 10

Appendix 1: Personal development plan. 11

Appendix 2: Group log. 12

03/11/16. 12

 

 

 

1.0 Introduction

Setting career goals is paramount importance for any individual craving to have a fulfilling career.  This is because it helps one in working towards realising the set goals. In light of this, my career goal is to become a marketing manager.  For the purpose of achieving this career goal, I have engaged in various things through the course.  Taking this into account, this report presents a reflection of the various skills I have gained through various group activities, attending speaker programs, and visiting Bridges shopping Centre. Besides, in line with my professional development plan, this report explores the skills that I need to improve further in order achieve my career goal.

2.0 Reflection on organisational visit

A visit to the Bridges shopping Centre played a crucial role in the bringing various insights that will help me achieve my career goals as a marketing manager.  With close to 100 shops, the Bridges shopping Centre is one of the most popular shopping centres in Sunderland.  Taking this into consideration, the shopping mall usually covers the best if the high street names and various specialised stores. This is in terms of fashion, gadgets, beauty, and gadgets among others. While there are various popular brand stores present at the Bridges shopping Centre, the main ones include SWAROVSKI, H&M, Tesco, Starbucks, and Pandora among others.  For the purpose of the various services carried out in the mall, the management has over the last few years carried intense marketing. This explains why the Bridges shopping Centre has recorded increased number of customers in the recent past.   From my visit to the Bridges shopping Centre, I was highly impressed by the team spirit of most of the employees in the mall. In regard to this, I noted that most of the employees in the mall usually work as a team. This has been the organisational culture of the mall since its establishment. Therefore, in future as a market manager, I intend to introduce such a culture in my organisation, where I will encourage employees to work in teams. It is through such that I will be in a position of ensuring that organisational goals are realised.

Through the visit to the Bridges shopping Centre, the marketing manager introduced us to their marketing department. Through this, I was in a position of grasping the various marketing strategies employed by the organisation for the purpose of achieving a competitive edge. For instance, I learnt the mall has over the last few years embraced social media advertisement, where it has leveraged on Facebook and Twitter. From this point, I was able to check the Facebook page of the organisation, and I discovered that the organisation uses the platform in passing important information to the customers. I also noted that the Bridges shopping Centre uses public relations strategy in marketing its services across Sunderland and the United Kingdom at large. On this, I noted that the company organises various events such as children’s day, where is covered by the mass media.  These strategies have significantly helped the company in attracting many customers across the country. Therefore, in future as a marketing manager, I intend to employ such strategies in attracting many people to my organisation.

3.0 Reflection on group activities

Mumford et al. (2013) have noted that group activities are typically fundamental when in helping members in enhancing their leadership skills. Taking this into account, engaging in various group activities played a vital role in equipping me with various skills that will substantially help in achieving my career goals. Being the group leaders, I was able to coordinate various group activities, as well as keeping the group motivated throughout. Through this, I was able to enhance my leadership skills, which in intend to use in future as a marketing manager.  Additionally, through the group activities, I was able to learn the formation of teams, and how roles can be divided among the group members depending on individual strengths as well as weaknesses.  Therefore, I intend to apply this skill in future as a marketing manager in assigning different roles to the marketers. It is also through the group activities that y communication skills were enhanced considerably.  As such, Manai and Holmlund (2015) has indicated that communication skills are important for marketers owing to the fact that it helps them in passing important information to the customers regarding certain product or services. Therefore, through the communication skills I gained from the team activities will go a long way in enhancing my career goals as a marketing manager. Precisely, through the group activities, I have been able to converse fluently using English. This has been a significant milestone as far as my career goals of becoming a marketing manager are concerned.  Taking this into account, I have learnt that there is usually a need for people to communicate more often with others as it helps them in learning more communication skills.  It is also through the group activities that I have come to understand the importance of team work in an organisation.  In light of this, through the group activities, I have understood that through teamwork, individuals can be in a place of accomplishing tasks effectively and efficiently.  Therefore, as a marketing manager in future, I intend to form teams for the purpose accomplishing various tasks related to marketing.

4.0 Reflection on speaker programs

According to Moon (2013), speaker programmes are typically crucial owing to the fact that they help individuals in learning various skills from experienced people. These skills in return can help them in shaping the career goals as well as objectives. Taking this into account, visiting various speaker programs was highly beneficial to me. Specifically, throughout the course, I managed to attend various speaker programs, which I found very useful.  The primary theme that was brought up by all the speakers was effective leadership in organisations.  Despite the fact that the message of all the speakers was clear, I took special interests with four speakers. These are David Dunn, David Tait, John Mowbray, and Sharon McArthur.  David Dunn, who is the current CEO of Sunderland Software City, reflected his career to date in the talk. He asserted that leadership is fundamental, and it needs special skills.  David Dunn also indicated that team development is essential in the success of any organisation. Therefore, from David Dunn, I intend to develop my team in marketing in future through effective training.

When it comes to David Tait, he is a risk management specialist, who assists various organisations in identifying as well as mitigating risks particularly in overseas market.  From this speaker, I learnt that assessing risk is one of the positive attributes when it comes to enhancing business performance.  I also learnt from David Tait that there is need for a leader to have a more open attitude towards failure as one of the processes of business learning as well as entrepreneurial development. Therefore, owing to the fact that marketing is also a business activity that involves various risks in intend to always assess risks proactively in future. Through this, I will be in a position of conducting marketing activities with fewer risks.

Speaker John Mowbray emphasised on the need of effective collaboration for the purpose of achieving change in the organisation.  As such, I have that organisational success usually comes as a result of collaborative effort between various individuals. Therefore, as a marketing manager in future, I intend t ensure that there is effective collaboration of all the marketers for the purpose of achieving set goals. Lastly, when it comes to Sharon McArthur, who is the founder, International Leadership Coach, she emphasised on the spirit of coaching for the aim of helping others to see there is an alternative way of thinking. Thus, I realised when we can work with the external force in an open and honest way to establish the facts, and find the best solution for the business. Using such a strategy as a marketing manager in future can greatly help m in realising my career goals.

6.0 Reflection on personal development plan

Visiting Bridges shopping Centre, engaging in group activities, as well as attending various speaker programs has to a considerable extent equipped me with a wide range of skills and knowledge that will help in realising my career goal of becoming a marketing manager. This notwithstanding, I need to develop further for the purpose of achieving this objective.  In this regard, one of the main skills that I need to improve is the communication skills. Communication skills, as noted by Solansky (2011) are pertinent for every marketing manager as they help in ensuring that there smooth flow information.  In order to improve my communication skills, I will need to places where there are many people such as Cinema and communicate with them. Additionally, I will require some friends who I can be communicating with them.  In order to check my performance in my communication skills, I will consider communicating bravely with strangers. I will be reviewing this once every month until am convinced that my communication skills are good.

I will also improve on time management. According to Owen (2012), time management is usually vital given that it helps in one in making planning of activities in an effective manner.  Therefore, I believe that for me to become a marketing manager, I will have to have time management skills, which will help me plan form various marking activities, in order to improve my time management skills, I intend to make a time table for each assignment. I will also consider reading various time management and how it come be improved.  I will consider following the time table strictly, and I will have to review this regularly in one day.

Lastly, I also want to improve on my reading skills. Precisely, I want to learn how to read books, magazines, as well as journals more quickly and efficiently.  Reading skills, as explicated by Richardson, (2015) are important for marketing managers as it help them in exploring various publications various trends in marketing as well as the best marketing strategies to employ.  In order to improve on my reading skills, I will carefully read various books, magazines and journals in the reading list. As such, I will grasp the main points in those publications within a short time for the aim of finding hidden information. I will be reviewing this once per two weeks until I feel that my reading skills are superb.

7.0 Conclusion

Conclusively, it is deducible from this report that marketing manager usually requires a wide range of skills for the purpose of conducting various activities. My career goal is to become a marketing manager. Therefore, I need to develop various skills that will help me in achieving this career goal.  For the aim of developing various skills, I have engaged in various group activities, attended speaker programs, and visited Bridges shopping Centre. Through these, I have gained various skills including communication skills, collaborative skills, and interpersonal skills. Nonetheless I believe that there are various skills that I need to develop for the purpose of achieving my career objective. These are communication skills, time management skills, as well as reading skills.  Improving these skills will go a long way in ensuring that my career goal is met.

 

 

References

Manai, A., & Holmlund, M. (2015) ‘Self-marketing brand skills for business students’, Marketing Intelligence & Planning, 33(5), pp.749-762.

Moon, J. A. (2013). Reflection in learning and professional development: Theory and practice. Routledge.

Mumford, T., Campion, M., & Morgeson, F. (2013) ‘The leadership skills strataplex: Leadership skill requirements across organizational levels’, The Leadership Quarterly,4(6), pp. 154-166.

Owen, J. (2012) The leadership skills handbook: 50 essential skills you need to be a leader. London: Kogan Page.

Richardson, T. (2015) The responsible leader: Developing a culture of responsibility in an uncertain world.

Solansky, S. (2011) ‘The Evaluation Of Two Key Leadership Development Program Components: Leadership Skills Assessment And Leadership Mentoring’, The Leadership Quarterly, 5(4), pp.675-681.

Zepeda, S. J. (2012). Professional development: What works. Eye on education.

 

 

Appendix 1: Personal development plan

Student Name:

Xiaodongjin

PALS/M68 tutor:

Bob Forbes

Programme:

MA-Marketing

Designation:
Covering the period from: October 2016 To: May 2017 Group name

Interchange

 

 

What do I want/need to learn? What will I do to achieve this? What resources or support will I need? What will be my success criteria? Target dates for review and completion
I want to learn more communication skills. I will go to the places where there are lots of people and communicate with the people, such as cinema. I will need some friends and people I can communicate with. Bravely communicate with some strangers. Review once per month.
I want to learn more time management skills. I will make a timetable for each assignment. I will need to read some books about time management. Strictly follow the timetable with detailed steps. Review regularly in one day.
I want to learn how to read books and magazines and journals quickly and efficiently. I will carefully read the books in the reading list. I will need to find a lots of relevant books and literature. Grasp the key points of a book in a short time and find the hidden information. Review once per two weeks.

 

 

Appendix 2: Group log

Date Background to

Activity/ Experience

What Happened /

Outcome?

Reflections on

what you have Learned

How will you apply

the Learning?

03/11/16

 

The class took a Belbin questionnaire to identify team roles

 

 

The team was formed and the roles were identified.

Garry was a Team Worker & Shaper. Kath was a Company Worker & Moderator Evaluator. Freida was a Completer Finisher. Christos was a Company Worker

 

I have learned how the team was  initially forms and how the roles wereidentified, as well as how to communicate with the other team membersin English. I will communicate with the others in English and clearly identify the tasks.
 

10/11/16

 

2 new members were added to the team – Adel and Alexander

Today we were tasked to identify stakeholders and analyse their power and interest in Garden Gnome Company.

 

 

The team agreed to gather information to complete the project. Garry agreed to compile the information and present the findings the following week.

We were very happy to get the initial plan and would proceed to the next step. I will think over about this issue.
 

01/12/16

 

Today a new member was added to the team – Mel.

The group met to discuss our group project for the first time

 

 

We selected Tesco operating in UK and China as our company to base our fictional company around. We agreed that by the next meeting we need to have chosen a CSR to enable us to best divide up the tasks

 

I have learned that we need to have our own ideas, and firstly listen to the others’ ideas before we express our own ideas when there is disagreement.

 

 

 

I will learn how to listen to the other people and how to express my own opinion.
 

08/12/16

 

The group met to discuss the CSR selection and to divide up the tasks

 

The company was to be called fresco and the CSR was selected as End Water Poverty. The tasks were divided up as follows.
Company Structure – Shuya Gao

Stakeholders list and diagram – Kath Gooch

Power Interest Chart – Christos Polykarpou

Gantt Chart – XiaodongJin

Give key characters a ‘personality’ with their views on CSR – Adds Lad

Implementation Plan – Garry Gooch

Communications – Mel Flounders

 

I have learned that I should communicate more often with the others as well as learn more communication skills. I will search for and collect more  information about the UK, do some research, and improve my communication skills.
 

31/01/17

 

The team met to put the presentation slides together and practice the presentation.

 

 

The team rehearsed the presentation several times and became more confident with each run through

I was too nervous at the presentation. I have learned that I need to improve my presentation skills. I will improve my presentation skills and thinking model.
 

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BUS9048M Tesla Motors’s Strategy

BUS9048M Tesla Motors’s Strategy

Executive summary

This report has focused on the strategy of Tesla Motors in the automobile industry. From the report, it has been established that Tesla Motors have recorded a significant growth over the last few years owing to increasing demand for its Model S and Model X. It has been established from this report that Tesla Motors has been using focused differentiation strategy, where it has focused on a small target group of customers. The financial performance of Tesla Motors has been impressive particularly when it comes to its Model S given that the company has recorded increased sales over the years. As relation to financial rations, this report has established that understanding the financial ratios of Tesla Motors can help greatly in comparative analysis.  The financial ratios include debt-to asset ratio, current ratio, gross profit, net profit, and operating margin. Evaluation of financial performance of the company has been seen to be useful, as it can help the company in making key decisions. When it comes to the future prospects, this report has established that there is need for Tesla to adopt costs leadership strategy given that other firms such as Toyota and GM may start manufacturing electric cars. Therefore, the use of costs leadership strategy will help the company in offering lower prices for its vehicles, thus giving it a competitive edge in the industry.

 

 

 

 

 

Table of Contents

1.0 Introduction. 4

2.0 Pros and Cons of Tesla Motors current strategy. 4

2.1 Tesla Motors current strategy. 4

2.2 Pros of Tesla Motors current strategy. 5

2.3 Cons of Tesla Motors current strategy. 6

3.0 Evaluation of Tesla’s financial performance. 7

4.0 Financial ratios. 8

4.1 Debt-to asset ratio. 8

4.2 Current ratio. 8

4.3 Gross profit margin. 9

4.4 Net profit margin ratio. 9

4.4 Operating margin ratio. 10

5.0 Assessment of whether the information presented on case Exhibit 2 is valuable or misleading. 10

6.0 Tesla’s future performance and its prospects for revolutionizing the global automotive industry. 11

7.0 Conclusion. 12

References. 13

 

 

 

1.0 Introduction

Tesla Motors is one of the major automaker companies in the United States. Founded in 2003, the company has been specialising in electric cars, residential solar panels, as well as lithium-ion battery energy storage.  According to Hardman, et al. (2015), Tesla has over the last couple of years witnessed a drastic growth in its production, particularly when it comes to Model S and Model X cars.  As such, by the end of 2016, the company has sold more than 186,000 electric cars across the world. This has made the company to be ranked second globally in relation to the largest electric car manufacturer. As elucidated by Mangram (2012), Tesla Motors usually has a network of high-powered Superrchargers for Tesla vehicles, which are located across North America, Europe, as well as Asia.  Taking this into consideration, this report seeks to analyse Tesla Motors’ strategy.

2.0 Pros and Cons of Tesla Motors current strategy

2.1 Tesla Motors current strategy

As explained by Ferrell and Hartline (2011), there is usually a significant need for a company to remain competitive in a give industry. Taking this into account, Grant (2016) has argued that the competitive level of a firm in any given industry is solely dependent on the strategy employed by that firm. In light of this, taking this case of Tesla Motors, it is arguable that the company has adopted the focused differentiation strategy. According to Lei and Slocum (2010), focused differentiation strategy refers to a strategy that requires the offering of unique products or services that meets the demands of a narrow market.  This sentiment has been echoed by Warner (2010), who has explained that focused differentiation typically entails targeting a small group of customers with differentiated products or services. As such, the unique features that are provided by firms that adopt a focused differentiation strategy are usually specialised to considerable extent. in this view, when it comes to Tesla Motors, it with no doubt that the company usually  provide unique products to a small group of customers. Precisely, Tesla Motors was the first automotive company offer electric cars in the market, targeting a small group of customers who love electric car. Through the use of this strategy, Grant (2016) has explained that over the years, Tesla Motors has been in a position investing heavily on research and development for the purpose of coming up with vehicles that meet the needs of its target customers.  It is through the use of this strategy that Tesla Motors has been able to enhance the development of its products especially when it comes to its Model X as well as Model S (Hardman, et al., 2015). Besides, the use of this strategy has greatly help the company in enhancing the development of other products including induction motor, battery pack, as well as power electronics among others. As such, the company has been able to have a sustainable competitive edge in the automotive manufacturing industry.

2.2 Pros of Tesla Motors current strategy

The use of focused differentiation strategy by Tesla Motors has come with various advantages. Taking this into account, Dransfield (2014) has explained that the use of focused differentiation strategy helps a firm in creating customer loyalty. This has been echoed by Brown and Turner (2010), who have explained that when a firm products or services that have attributes which are valued by the niche market segment, it is able to establish a reputation of quality products. For Tesla Motors, through the use of focused differentiation strategy, the company has been in a position of meeting specific needs of the customers, which has in turn helped the company in retaining its customers. Furthermore, with focused differentiation strategy, there are high switching costs. This explains why most customers of Tesla Motors have become loyal to the brand. Secondly, Lei and Slocum (2010) have explained that focused differentiation strategy limits the level of competition based by a firm. This has been echoed by Ferrell and Hartline (2011), who has argued that inherent in a successful focused differentiation strategy is the ability of serving the needs of a specific group of customers in a better way than the competitors. Therefore, with this strategy, there has been limited competition in the electric car industry, given other competitors of Tesla Motors such as Toyota, Chevrolet, and General Motors do not manufacture electric cars. With limited competition, Tesla Motors has been in a position to make high sales. Lastly, focused differentiation strategy, as explained by Warner (2010) usually provides high margins. In this regard, through focused differentiation strategy, a firm is usually able to provide products or services with strong reputation to the niche market. As such, the firm can be able to charge premium prices for the products or services, which in turn leads to high profit margin. Therefore, when it comes to Tesla Motors, the use of focused differentiation strategy has helped the company in generating high profits margins for its products.

2.3 Cons of Tesla Motors current strategy

Notwithstanding the numerous benefits that come with the focused differentiation strategy, Lei and Slocum (2010) have argued that there are various disadvantages of the strategy.  Firstly, the use of the strategy typically increases the operational costs of a firm to a give extent. Precisely, given that this strategy typically entail offering products that meet the specific needs of the customer, the costs involved in manufacturing these products. As such, a firm can incur a lot of operational costs, which may lower down the profits considerable. Taking the case of Tesla Motors into account, the use of focused differentiation on its products particularly when it comes to Model X and Model S has made it to incur significant costs, which have lowered its profits. Secondly, according to Ferrell and Hartline (2011), the focused differentiation strategy usually targets a small group of people. This is according to Paley (2010) implies that the sales may be limited to a considerable extent. Therefore, when it comes to the case of Tesla Motors, through focusing on a small group of people, the company has not been able to maximise its sales, which to a considerable extent has affected its sales and profits.  Thirdly, according to Warner (2010), the focused differentiation strategy typically makes use of unique technologies as well as designs. With such, despite the fact that it may difficult for other companies to cope such, once copied can make the firm have no competitive edge in the industry. Therefore, for the Tesla case, manufacture of electric cars by other firms such as Toyota, Honda, Volkswagen, and General Motors among others may make Tesla Motors have no edge in the industry. Therefore, the company may not be in a position of selling its vehicles at premium prices.

3.0 Evaluation of Tesla’s financial performance

Understanding financial performance is crucial for any organisation given that it helps in determining the performance of the organisation over a period of time. In light of this, the exhibit 1 below depicts the quarterly deliveries of Tesla’s Model S to customers, Q3 2012 through Q2 2015.

Figure 1: Quarterly deliveries of the company’s model S to customers

Source: Gamble, Thompson, and Peteraf, (2016).

 

From the above figure, it is with no doubt that the financial performance of Tesla Motors is good. Precisely, as seen from the figure, Tesla Motors has shown continuous annual growth. This has been contributed greatly by the increasing demand for Model S over the years.  Taking this into account, it is deducible that the financial performance of Tesla Motors in relation to its Model S has been unprecedented.

4.0 Financial ratios

According to Bowhill (2010), financial ratios typically provide organisations with a quantitative analysis of their financial information. Organisations can also use their financial ratio on creating benchmark for their comparative analysis. Taking this into account, understanding the financial ratios of Tesla Motors can help greatly in comparative analysis. Below are the key financial ratios of Tesla.

4.1 Debt-to asset ratio

The debt-to asset ratio, as asserted by Lusardi and Mitchell (2014) is the comparison of the total equity of an organisation to its debt obligations.  As such, dept to asset ratio is usually obtained through dividing the total debts with the total assets. A higher fraction implies that the organisation has a high debt which is not healthy to any organisation. In relation to Tesla Motors, below is the debt=to asset ratio of the company.

Tesla’s debt-to-asset ratio = total debt / total assets

Tesla’s debt-to-asset ratio = 1,806,518 / 5,849,251 = 0.31

From the above, it is deducible that the debt-to asset ratio of Tesla is low. Therefore, the company can be considered to have a manageable debt.

4.2 Current ratio

Current ratio has been regarded by De Franco et al. (2011) as one of the most useful financial rations considered by companies.  In light if this, the current ratio usually serves as a test of the financial strength as we;; as relative efficiency of an organisation.  According to Lusardi and Mitchell (2014), through current ratio, it is typically possible to tell of an organisation has too much or too little cash on hand. If the current ratio is more than 1, it implies that the organisation is string financially.  As Wang and Campbell (2010) explain, current ratio is typically calculated through dividing the current assets by current liabilities. As such, when it comes to the current ratio of Tesla Motors, its current ration can be expresses as below;

Tesla Motors’ current ratio = current assets / current liabilities

Tesla Motors’ current ratio = 3,198,657 / 2,107,166 = 1.52

Given that the current ration of Tesla Motors is greater than one, it is an implication that the company has a high financial strength.

4.3 Gross profit margin

The gross profit margin as explained by Bowhill (2010) normally helps in understanding the profit that is available to a particular organisation. This is usually as a percentage to payroll costs, sales expenses, advertising, as well as office bills among others. The gross profit margin of Tesla can be calculated as below;

Tesla Motors’ gross profit margin= (Sales revenue – cost of goods sold) / sales revenue x 100.

Tesla Motors’ gross profit margin = ((3,198,356 –   2,316,615) / 3,198,356) x 100 =27.6%

From above it is deducible that the Tesla Motors’ gross profit margin is low, and thus the company may not be in a good position of covering for its operating expenses.

4.4 Net profit margin ratio

According to Wang and Campbell (2010), net profit margin typically tells how much money an organisation makes for every one dollar in revenue. As such, organisations with higher profit margin can be in a position of offering better benefits particularly when it comes to dividends as well as bonuses.  The net profit margin has been seen from exhibit 2 to be -$294,040,000, which is a net loss.

4.4 Operating margin ratio

Operating margin ratio, which is also referred to as operating profit refers to the total pre-tax profit that an organisation generates from its operations. Taking this into account Lusardi and Mitchell (2014) have explained that operating profit margin is typically what is available to owners before other items need to be paid including income tax as well as preferred stock dividends.  The operating margin ration of Tesla Motors is as indicated below;

Tesla Motors’ operating profit margin = ((Sales revenues – operating expenses)/sales revenues)

Tesla Motors’ operating profit margin = (3,198,356 – 1,068,360) / 3,198,356 =0.67

From the above, it can be seen that Tesla Motors’ operating profit margin is high, meaning that the company is able to finance its current operations.

5.0 Assessment of whether the information presented on case Exhibit 2 is valuable or misleading

The information presented on the case exhibit 2 is valuable to a considerable extent. According to De Franco et al. (2011), understanding financial performance is paramount to any idea organisation. Firstly, as explained by Paley (2010), ratios typically play a crucial part in providing a standardised method with which to compare various companies in a particular industry.  As such, analysing various companies using ratios such as net profit margin and current ratio may help in revealing how companies operates in terms of efficiency, as well as profits generated. As such, for Tesla Motors, ratios can help the company in evaluating its performance relative to other firms in the industry such as General Motors, Chevrolet, as well as Toyota among others.  Additionally, as depicted by Bowhill (2010), financial ratios usually play a fundamental part when it comes to enhancing planning as well as performance in the organisation. In this regard, Wang and Campbell (2010) have indicated that ratios can help in providing guidance to organisations when creating business plans.  Ratios can also serve as tools for strategic change within an organisation. In this view, the above financial ratios of Tesco can greatly help the company in making major strategic plans within the organisation. On this, through considering various financial ratios such as net profit margin and current ratio, Tesla can be able to identify its strengths as well as weaknesses. Consequently, the company can be in a position of making informed decisions.  Taking these into account, it is deducible that the financial performance of Tesco is valuable to the company.

6.0 Tesla’s future performance and its prospects for revolutionizing the global automotive industry

From the above analysis, it is with no doubt that Tesla has to a significantly achieved a competitive edge in the automotive industry. This has been contributed greatly by its strategy, which is focused differentiation.  Nonetheless, this strategy may not be sustainable to the company in the near future. Taking this into consideration, De Franco et al. (2011) have argued that over the last few years, environmental degradation has called for the need to conserve environment through maintaining low levels of emissions. As such, most people across the globe have become concerned greatly by the high levels of emission released by gasoline powered vehicles.  Additionally many governments as well as non-governmental organisations in various countries particularly in North America and Europe have advocated for the use of electric car as opposed to gasoline powered vehicles. This implies that the demand for electric cars is expected to increase in the near future.  While this may implies increase sales for Tesla, Grant (2016) has indicated that this may be not the case. Precisely, in the advert of technology, coupled with increasing demand for electric vehicles, Paley (2010) has explained that the other firms in the automotive industry such as Toyota, BMW, and General Motors may consider investing in the manufacture of electric vehicles. Therefore, the level of competition in the industry as regards to electric vehicles may be stiff in the near future. As such, employing the focused differentiation strategy may not help Tesla in having a sustainable edge in the industry. Therefore, in light of this, there is a considerable need for Tesla Motors to consider rethinking about its strategy. As such, Tesla should consider adopting cost leadership strategy. Considering this, Hambrick and Fredrickson (2014) have explained that cost leadership strategy typically entails being the lowest cost producer in a given industry. This strategy is typically driven by efficiency, scale, size, as well as cumulative experience among other factors.  In light of this, Lei and Slocum (2010) have explained that cost leadership strategy usually aims at exploiting the scale of production together with using advanced technology. Therefore, when it comes to Tesla Motors, this strategy will work effectively for the company. Specifically, through using this strategy, Tesla Motors can leverage on various ways of minimising its costs. For instance, the company can consider using advanced technology for the aim of increasing efficiency in production. The company can also consider outsourcing some of its activities to more cost effective firms. Through this company can be able to offer competitive prices for its products, thus giving it a competitive edge in the automotive industry.

7.0 Conclusion

In conclusion, it is with no doubt that Tesla Motors have recorded a significant growth over the last few years. This has been attributed greatly by the increasing demand for its Model S and Model X. It has been established from this report that Tesla Motors has been using focused differentiation strategy, where it has focused on a small target group of customers. The financial performance of Tesla Motors has been impressive particularly when it comes to its Model S. This is because the company has recorded increased sales over the years. As regards to financial rations, this report has established that understanding the financial ratios of Tesla Motors can help greatly in comparative analysis.  The financial ratios include debt-to asset ratio, current ratio, gross profit, net profit, and operating margin. Evaluation of financial performance of the company has been seen to be useful, as it can help the company in making key decisions. As regards to future prospects, this report has established that there is need for Tesla to adopt costs leadership strategy given that other firms such as Toyota and GM may start manufacturing electric cars. As such, the focused differentiation strategy of the company may not be sustainable.

 

 

References

Brown, M., & Turner, P. (2010) The admirable company: why corporate reputation matters so much and what it takes to be ranked among the best. London: Profile.

Bowhill, B. (2010) Business planning and control: integrating accounting, strategy, and people: Chichester: John Wiley & Sons.

De Franco, G., Kothari, S. P., & Verdi, R. S. (2011) “The benefits of financial statement comparability”, Journal of Accounting Research49(4), pp.895-931.

Dransfield, R. (2014) Business for foundation degrees and higher awards: Oxford, Heinemann.

Ferrell, O. C., & Hartline, M. D. (2011) Marketing strategy. Australia: South-Western Cengage Learning.

Gamble, J., Thompson, A. A., & Peteraf, M. A. (2016) Essentials of strategic management: The quest for competitive advantage. Dubuque: McGraw-Hill Education.

 

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Hambrick , D, & Fredrickson, J. (2014) ‘Are You Sure You Have a Strategy?’ Academy of Management Executive, 15(4), pp. 48-59.

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Michael, R., & Albert, J. P. (2015) Financial Ratios for Executives: How to Assess Company Strength, Fix Problems, and Make Better Decisions. Berkeley, CA: Apress.

Paley, N. (2010) The Manager’s Guide to Competitive Marketing Strategies. London: Thorogood Pub

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UGB327 Integrated marketing communications of LG

UGB327 Integrated marketing communications of LG

Executive summary

This report has focused on integrated marketing communications of LG, which one of the largest electronic company in UK. From the report, it has been established that integrated marketing communications is usually an approach to achieving the goals as well as objectives of a marketing campaign through use of a wide range of promotional ways intended to reinforce each others. Integrated marketing communications entails advertising, personal selling, public relations, direct marketing, as well as sales promotion among others.  From the report, it has been revealed that LG has been using integrated marketing communications for the aim of having a sustainable edge in the consumer electronic industry in UK. However, this report has established that there is need for the company to enhance its integrated marketing communications strategy.  This should go hand in hand through adopting the cost leadership strategy in attempt to attract more customers. Taking this into consideration, this report has recommended the company to make use of public relations, advertising, as well as social media platforms. These will see the company move to higher heights in the near future.

 

 

 

Table of Contents

1.0 Introduction. 4

2.0 Literature review.. 4

2.1 The concept of integrated marketing communication. 4

2.2 How IMC relates to other areas of marketing and business management 5

3.0 Integrated marking communication tools by LG.. 7

3.1 The target market 7

3.2 IMC objectives. 7

3.3 IMC strategy. 8

4.0 Recommendations. 9

4.1 Situation analysis. 9

4.2 Objectives. 10

4.3 Strategy. 10

4.4 Tactical plan. 11

4.5 Action plan. 11

4.6 Control 12

5.0 Conclusion. 13

References. 14

 

 

 

1.0 Introduction

Achieving a sustainable competitive edge in any industry is typically one of the most challenging things in any organisations. This is due to the fact that it usually requires a lot of efforts, resources and the right strategies. Nevertheless, Hambrick and Fredrickson (2014) have explained that sustainable competitive edge can be achieved through the implementation of integrated marketing communications strategies. Taking this into account, this report seeks to explore the integrated marketing communications strategies used by LG in the consumer electronic industry in the United Kingdom. Besides, this report provides comprehensive recommendations on how LG can enhance its integrated marketing communications strategies for the purpose of having a competitive edge in the industry.

2.0 Literature review

2.1 The concept of integrated marketing communication

Various scholars have tried to explain the concept of integrated marketing communications from a wide range of angles. Taking this into consideration, Fill (2009) has explained that integrated marketing communications is typically an approach to achieving the goals as well as objectives of a marketing campaign through use of a wide range of promotional ways intended to reinforce each others.  According to Kitchen and Burgmann 2010), integrated marketing communications usually recognises the value of a comprehensive plan, which evaluates the various strategic roles of different communication disciplines. These, according to Lei and Slocum (2010) entails advertising, personal selling, public relations, direct marketing, as well as sales promotion among others. As elucidated by Luxton et al. (2015), integrated marketing communications typically ensures that all forms of communications as well as messages are linked together carefully. This sentiment has been backed up by Reinold and Tropp (2012), who has espoused those tools of integrated marketing communications performs better if they work together in harmony as opposed to isolation.  For the purpose of achieving success through integrated marketing communications, Luxton et al. (2015) have argued that there is a considerable need for marketers to identify the boundaries around the elements of the promotional mix. This has been echoed by Mihart (2012), who has added that marketers need to identify the effectiveness of the message of the campaign that the audience will grasp. Notwithstanding the fact that integrated marketing communications typically requires immense efforts, Kitchen and Burgmann 2010) have asserted that it delivers a wide range if benefits. As such, Dinnie et al. (2010) have espoused that integrated marketing communications can play a substantial role in creating competitive advantage, as well as boosting sales and profits. This has been echoed by Reinold and Tropp (2012), who have added that integrated marketing communications also helps greatly in saving money and time.

2.2 How IMC relates to other areas of marketing and business management

According to Fill (2009), there is usually a positive correlation between integrated marketing communications and other areas of marketing and business management. Taking this into consideration, Hambrick and Fredrickson (2014)   have explained that the integrated marketing communications strategy employed by an organisation is usually influenced greatly by other key areas of business enterprise. This has been backed up by Mihart (2012), who has asserted that the integrated marketing communications need to work together with other value chains of a business enterprise for the purpose of increasing sales as well as productivity.  Owing to the fact that integrated marketing communications have been considered as one of the most integral parts of the value chain of an organisation, it helps an organisation in having a sustainable competitive edge in a particular industry. Taking this into consideration, Luxton et al. (2015) has argued that there are three main types of generic strategies that an organisation may use in achieving a competitive edge in a given industry. These are costs leadership, differentiation, as well as focus. Therefore, Dinnie et al. (2010) argue that despite the strategy adopted by an organisation, the aspect of integrated marketing communications has to reflect. For example, Fill (2009) asserts that for a company that adopts costs leadership strategy, the use of integrated marketing communications helps in capturing more customers through various methods such as advertising and sales promotion.  Through such, the organisation can also be in a position of having increase sales. Consequently, the organisation may start enjoying economies of scale, thus making it possible to sell products of services are relatively lower prices as compared to the competitors. In relation to using the differentiation strategy, Kitchen and Burgmann 2010) have explained that an organisation may use integrated marketing communications in a manner that portrays the products of the organisation as unique. Through this, the organisation can have a competitive edge, which translates to increased profit margins.

According to Lei and Slocum (2010) integrated marketing communications is also closely related to the elements of market mix. Taking this into consideration, Mihart (2012) has elucidated that for the elements of the market mix such as products, price, people, and place to work effectively, integrated marketing communications need to be used. For instance, an organisation can use integrated marketing communications to enhance the aspect of product, where an organisation can use advertising methods in passing the message to the potential customers about the quality of a specific product. This as a result, as explained by Dinnie et al. (2010) can lure the potential customers in making purchases. Besides, integrated marketing communications can enhance the element of price, where the organisation can employ various tools of IMC such as advertising and sales promotion in convincing the customers that the price of a particular product is affordable. This, as Mihart (2012) puts it, can in turn play a significant role in attracting more customers which translates to more profits.

3.0 Integrated marking communication tools by LG

Established in 1947, LG is a Korean multinational company that deals with a wide range of consumer electronics including television sets, refrigerators, electric cookers, and home theatres among others (Millett, 2014).  The company, which is headquartered in Seoul, South Korea, has over the years expanded to become among the biggest electronic companies in the world. With its subsidiaries in more than 20 countries across the world aims at becoming the market leader in the near future.  Taking this into account, this section seeks to explore the integrated marking communication strategies used by the company.

3.1 The target market

According, identifying the target market is usually vital for any organisation that wants to achieve a competitive edge in a given industry. Taking the case of LG into consideration, despite the high demand for consumer electronic in the United Kingdom, LG has been focusing on targeting the middle class individuals in the country. This has been due to the fact that the middle class in the country are characterised by significantly high levels of consumerism. Additionally, individuals in the middle class can comfortably afford to purchase the products of the company.

3.2 IMC objectives

The campaign that LG has been using in launching its new products has been dubbed as “Upgrade”. The primary objective of this campaign is to ignite the desire for the appliances of the company that have featured the latest style as well as technology. The campaign has focused on the need for consumers to upgrade their appliances rather than waiting until they get old or stop working to replace them. As such, as noted by Millett (2014), the campaign has employed an innovative approach that can greatly help the company in distinguishing its products from the traditional appliances. Taking this into consideration, the campaign aims at creating awareness about the latest appliances of the company. Besides, through the campaign, LG aims at boosting its sales in the United Kingdom through convincing customers to abandon their old electronics and replace them with better ones, which are perceived to be super. It is also a fact that the objective of the campaign, as illustrated by Crimmons (2014) has also been aiming at reaching more middle class people in the United Kingdom.

3.3 IMC strategy

There are various tools of integrated marketing communications that have been used by LG in the consumer electronic industry in the United Kingdom. This has been for the purpose of attracting more customers in the country.  Taking this into consideration, one of the main tools as put across by Hambrick and Fredrickson (2014) is advertising. In regards to this, LG has been spots of LG electronics have been appearing on more than 500 motion picture screens across the United Kingdom as well as placement in the main national and regional print media outlets. Additionally, the newest television advertisements of the company have been seen by millions of viewers across the country on a wide range of networks as well as cable TV outlets (Crimmons, 2014).  Featuring the images of the trendy and fashionable people highlighted by LG’s trademark red hue, the advertisements have featured the people using LG mobile phones in both traditional as well as innovative ways. As such, the advertisement portrays LG mobile phones as fast, with various features including internet and camera (Crimmons, 2014). In another add, a woman is seen throwing her old washing machine into the end deep of a pool.  This depicts the need to replace the old electronics with new ones. Additionally, as noted by Millett (2014), LG print ads can be seen in various publications including The Guardisan, The Daily Mail, and the Daily Mirror among others.

LG has also leveraged greatly on direct marketing, where the company sends emails to its customers regarding the latest electronics. It is through such that the company has been able to maintain its customers in light of the fierce competition in the consumer electronic industry in the United Kingdom.  With the advert in internet couple with increase in various social media platforms, LG has leveraged in various social media websites including Facebook and Twitter. This has made the company to interact with the customers in a more effective manner. Besides, through social media platforms, it has become easier for the customers to provide feedbacks of the products offered by the company. As result, it has become possible for the company to improve its products, which has enhanced its sales and profitability to a considerable extent. LG has also used the sales promotion strategy, where it has organised various trade exhibitions across major city including London, Manchester, Sunderland, and Hull. Through this, it has promoted its products through selling the electronics at subsidised prices. This has not only helped the company in increasing its customer base, but also creating awareness of its products across the United Kingdom.

4.0 Recommendations

Notwithstanding the fact that LG has to a considerable extent manage to attract a wide range of customers across the United Kingdom, the company has not leveraged fully on its potential. Taking this into consideration, there is a significant need for the company to enhance its integrated marketing communications in the consumer electronic industry in the United Kingdom.  In this light, the recommended integrated marketing communications strategy for LG will be explored through the use of SOSTAC model as follows;

4.1 Situation analysis

Despite the fact that the integrated marketing communications strategies used by LG have been successful in positioning its efforts within the consumer electronics industry in the UK, the company has not been in a position of enhancing customer engagement effectively within the industry. Given that the major focus of the company is the middle class, there is need to reconsider the integrated marketing communications used by the company. This is due to the fact that the middle income earners in the country are increasing at a significant rate. This implies that the company will be focusing on a larger customer base in the near future. Besides, as explained by Reinold and Tropp (2012, the needs of middle class earners usually change frequently especially when it comes to the consumer electronics industry. As such, there is need for LG to better its strategies for the purpose of having a competitive edge in the consumer electronic industry in the country.

4.2 Objectives

The LG’s campaign should seek to realise the following marketing objectives;

  • To increase the market share in the UK consumer electronic industry by 10 percent in the next one year
  • To increase the number of  its stores in major urban centres by 5 percent in the next six months
  • To increase sales of the consumer electronics by 15 percent in the next one year through effective integrated marketing communication tools
  • To reduce the prices of all electronics by  5 percent in the next six month in order to attract customers

 

4.3 Strategy

The strategy that LG should adopt should have its basis on enhancing the competitive edge in the consumer electronic industry in UK. On this, LG should consider adopting the cost leadership strategy. In light of this, it is a fact that most consumer electronics sold by the company are highly priced. This implies that a large number of potential consumers in the country cannot be able to purchase the products especially the low income earners. According to Dinnie et al. (2010), through the use of costs leadership strategy, an organisation is usually in a position of having increased sales, which translates to more profits.  Therefore, for LG, through the use of cost leadership strategy, it can be easier for the company to attract more customers across the UK. This as a result can see the company record substantial increase in sales as well as profitability.

4.4 Tactical plan

Tactical plan, as explained by Reinold and Tropp (2012) involves a detailed approach in regards to how business objectives can be realised effectively and efficiently. In this regard, the tactical plan fir LG in the consumer electronics industry in the United Kingdom should be effective use of integrated marketing communication in order to attract more customers. Precisely, there is a considerable need by the company to consider blending a wide range of integrated marketing communication tools including the use of advertisements, as well as public relations. For instance, in order to enhance its public relations, LG can take part in various philanthropic endeavours, which in turn can help in building the brand image of the company. Sponsoring a football club such as those in the English Premier League can go a long way in enhancing the reputation of the company. Additionally, LG can leverage more ob social media platforms including Facebook Instagram, and Twitter. As such, the company can engage with the customers directly, which can help in attracting more customers.

4.5 Action plan

The maim message that LG should communicate to its customers is to upgrade their electronic gadgets, which are more advanced. As such, the primary goal of the integrated marketing communication of the company is to accomplish this objective. Therefore, the company should employ a wide range of integrated marketing communication tools in achieving these objectives. These are sponsorships, advertisements, publicity, as well as social media among others. Taking this onto consideration, the table below depicts the integrated marketing communication activities of LG.

IMC Activities Schedule Plan Specific Implementation Plan Expected Outcome
Advertising May, 2017 to Dec, 2017 Print media

TV

Increase sales due to increased awareness
Sponsorship May, 2017 to Dec, 2017 Cooperate with UEFA to sponsor a football club in the English Premier League Increase brand image
Social media platforms May, 2017 to Dec, 2017 Facebook,  Instagram and Twitter Increase customer engagement

 

4.6 Control

The aspect of control in the SOSTAC model is usually important in any idea organisation. This is due to the fact that it helps hugely in monitoring the whole process. Taking into account the case of LG, there is a considerable need for the marketing manager to ensure that the integrated marketing communications realise the goals of the organisation. LG should consider allocating about 15 percent of its revenues on these integrated marketing communication strategies. As regards to monitoring, the marketing manager should rely heavily on sales records, which would obviously help in showing whether the strategies are working or not.

5.0 Conclusion

In conclusion, its id educible that integrated marketing communications is typically an approach to achieving the goals as well as objectives of a marketing campaign through use of a wide range of promotional ways intended to reinforce each others. Integrated marketing communications entails advertising, personal selling, public relations, direct marketing, as well as sales promotion among others.  From the report, it has been established that LG has been using integrated marketing communications for the aim of having a sustainable edge in the consumer electronic industry in UK. However, this report has established that there is need for the company to enhance its integrated marketing communications strategy. As such, this report has recommended the company to make use of public relations, advertising, as well as social media platforms. Through such the company will be able to have a competitive edge in the consumer electronics industry in UK.

 

 

References

Castronovo, C., & Huang, L. (2012). Social media in an alternative marketing communication model. Journal of Marketing Development and Competitiveness6(1), 117.

Crimmons, L. (2014). The top viral marketing campaigns of all time. Branded3. Retrieved from: https://www.branded3.com/blog/the-top-10-viral-marketing-campaigns-of-all-time/

Dinnie, K., Melewar, T. C., Seidenfuss, K. U., & Musa, G. (2010). Nation branding and integrated marketing communications: an ASEAN perspective. International Marketing Review27(4), 388-403.

Fill, C. (2009) Marketing Communications Interactivity, Communities and Content, Harlow: Financial Times/ Prentice Hall.

Hambrick , D, & Fredrickson, J. (2014) ‘Are You Sure You Have a Strategy?’ Academy of Management Executive, 15(4), pp. 48-59.

Kitchen, P. J., & Burgmann, I. (2010). Integrated marketing communication. John Wiley & Sons, Ltd.

Lei, D, & Slocum, J. (2010) ‘Strategic and Organizational Requirements for Competitive Advantage,’ Academy of Management Executive, 6(18), pp. 34-47.

Luxton, S., Reid, M., & Mavondo, F. (2015). Integrated marketing communication capability and brand performance. Journal of Advertising44(1), 37-46.

McDonald, M. and Dunbar, I. (2012) Market segmentation: How to do it and how to profit from it. Chichester: John Wiley & Sons.

Mihart, C. (2012). Modelling the influence of integrated marketing communication on consumer behaviour: an approach based on hierarchy of effects concept. Procedia-Social and Behavioral Sciences62, 975-980.

Millett, C. (2014) LG backs G3 launch with ‘biggest ever’ UK marketing budget. Mobile. Reterieved from: http://www.mobiletoday.co.uk/news/industry/29646/lg-g3-biggest-uk-marketing-budget.aspx

Reinold, T. and Tropp, J. (2012) ‘Integrated Marketing Communication: How can we Measure its Effectiveness?’ Journal of Marketing Communications, 18(2), pp. 113-132.

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Nx0473 Developing Global Management Competencies

Nx0473 Developing Global Management Competencies

Executive summary

This report has focused on business information system and the project management and planning skills as well as data analyst skills needed. From the report, it has been established that project management and planning skills needed include leadership and administrative skills, communication skills, collaborative skills, budgeting skills, as well as analytical skills. Comes to data analyst skills needed, they include analytical skills, communication skills, critical thinking skills, as well as technical skills. In order to enhance these skills, this report has established that there is need to conduct training sessions to the involved individuals. This a result can make it possible for organisations to leverage more on business information systems.

 

 

Contents

1.0 Introduction. 3

2.0 Critical appraisal of project management and planning skills needed. 3

3.0 Critical appraisal of skills needed by the business/data analyst 5

4.0 Conclusion and recommendations. 6

References. 7

 

 

 

 

1.0 Introduction

With increase in competition in the global business environment, there has been substantial pressure on most of the organisations across the globe to make their operations as tactical as possible. The use of information systems in business processes has been considered one of the best solutions to the dynamic as well as competitive global environment (Stair & Reynolds, 2013). This has been solely for the aim of enhancing efficiency as well as effectiveness.  As such, implementation of business intelligence has become a norm in many organisations across the world. According to Chaffey and White (2010) the primary purpose of business intelligence is leveraging on the data assets of a organisation. Through this, companies can gain competitive advantage such as increased revenue as well as reduced costs. Besides, it is through business intelligence that organisations are able to reduce risks through making rational decisions. Nonetheless, according to Galliers and Leidner (2014), implementation of business intelligence and information system in general typically requires a wide range of project management as well as data analyst skills. Taking this into consideration, this report seeks to explore and appraise the skills needed by project managers and data analysts in the successful implementation of information systems within an organisation.

2.0 Critical appraisal of project management and planning skills needed

According to Burke (2013), there are various project management and planning skills that care required when it comes to successful implementation of information systems in the place of work. Nonetheless the mains skills, as explained by Pinto (2013) include leadership and administrative skills, communication skills, analytical skills, collaborative skills, as well as budgeting skills.  As regards to leadership and administrative skills, Larson and Gray (2011) have explained that their significance in the implementation of information system cannot be overlooked. This is due to the fact that these skills play a significant role in ensuring that the project within the organisation is implemented successfully. According to Lundy and Morin (2013), the project manager in most cases does not serve as superior in a given project. Therefore, in most cases project managers typically tend to be collaborative rather than authoritative. Taking this into consideration, one of the main leadership and administrative skills required is the ability to create engagement among the stakeholders throughout the implementation as well as deployment of the information system.  Probing solving skills are also necessary for the project managers when it comes to the implementation and deployment of the information system. On this, the project manager should have creative response to various problems that arise during the implementation and deployment of the information systems. As a result, the information will be put into use in an effective manner.

As regards to communication skills, Stair and Reynolds (2013) indicates that these skills are crucial in during various phases of the implementation as well as deployment of any information system within an organisation. As depicted by Burke (2013), there is need for the project manager to have strong communication skills for the purpose of encouraging the sharing of ideas as well as elicit suggestions from the team members. As a result, this plays a crucial role when it comes to cooperation within the organisation.  Additionally, through this communication all the stakeholders of a particular project feel appreciated, which thus helps in success implementation of the project. Similarly, when it comes to the information management system, effective communication skills from the project managers as well as among the team members is crucial.  Through such, implementation as well as deployment of the information system in the organisation will be realised with a lot of ease.

When it comes to analytical skills, they usually consider the ability of an individual to visualise, articulate, as well as conceptualise both complex as well as simple problems. This is usually through making various decisions that are sensible with the available information.  As put across by Pinto (2013), managers with strong analytical skills are usually in a position of planning well and leading projects successfully. In this regards, they are usually able to accurate forecast financial results as well as develop various plans for the aim of meeting the goals together with the objectives of an organisation.  This statement has been supported by Larson and Gray (2011), who have asserted that analytical leaders can be in a position of working with other members of the team for the purpose of accomplishing various goals within an organisation setting. Taking these facts into consideration, the implementation and deployment of the information systems require adequate analytical skills from the project managers. Precisely, with these skills, the project manager will be in a position of handling various problems throughout the implementation and deployment phases of the project. Besides, through these skills, the project manager of the information system project will review the performance of the associates for the purpose of ensuring that the project goes as intended.

As regards to collaborative skills, Pinto (2013) has argued that they are usually of significance importance in any project within an organisation. In regards to this, the aspect s collaboration is typically said to take place when individuals as well as groups of people work together toward a common goal or objective through sharing of various ideas as well as kills. Therefore, collaborative skills in any project usually playa a fundamental role when it comes to ensuring that all the stakeholders are responsible in all the activities of a particular project.  Taking the implementation of the information system into account, collaborative skills among members will go a long way in ensuring that all the members work together with successful completion as well as implementation of the project (Lundy & Morin (2013). Specifically, through collaborative skills, the members will be in a position of brainstorming, where all the members will come together toward the realisation of a common goal through thinking critically about various perspectives of the information system. Besides, through collaborative skills in this activity, the team members will get inspired as all the team members will derive great sense of togetherness in the project. As a result, successful implementation and deployment of the information system will be realised with a lot of ease.

Lastly, when it comes to budgeting skills, it typically takes into consideration the process of estimating costs as well as developing project budget.  Taking this into consideration Burke (2013) explains that budgeting skills are usually crucial in every project in an organisation. This is due to the fact that they help greatly in ensuring that any project undertaken in an organisation is within the stipulate budget. Therefore, taking into account the implementation of the information system within an organisation, the project manager needs to have adequate budgeting as well as forecasting skills for the purpose of ensuring that the project is completed successfully within the planned budget. Besides, through these skills, the project manager will be in a position of making budgetary estimates of all project activities for the sole aim of ensuring that the allocation of project resources is even. As result, wastage will be reduced to a considerable extent, thus making maximum use of the organisational resources.

3.0 Critical appraisal of skills needed by the business/data analyst

According to Stair and Reynolds (2013), there are various skills that are needed by business data analysts for the purpose of conducting their duties successfully.  However, the main skills are technical skills, communication skills, critical thinking skills, analytical skills. As regards to technical skills, Chaffey and White (2010)  has explained that business data analysts usually need to have a wide range of technical skills, that can help in solving technical problems. Such skills include compute skills, where the business data analyst should have strong skills in scripting language, spreadsheets, and word among other computer applications. Through this, the can be able to, manipulate data easily through the use of a computer.  Another technical skill that business data analysts should have is the statistics, which can significantly help them in understanding the machine learning. Besides, through these skills, they can be in a position of conducting descriptive analysis.

In relation to communication skills, Österle et al. (2011) have explained that business data analysts should posses strong communication skills, both oral as well as written. In light of this, business data analysts, as explained by Galliers and Leidner (2014) are typically required to present their findings to the high management within an organisation. Besides, they are required to translate data into a document which is easily understandable. Taking these into consideration, they have to write as well as speak clearly when it comes to communicating such complex ideas.  Besides, as explained by Stair and Reynolds (2013), through effective communication skills, data analysts are usually in a position of enhancing flow of information within the organisation. This as a result plays a vital role in improving the overall performance of the organisation.

When it comes to critical thinking skills, Galliers and Leidner (2014) have argued that they are usually inherent to business data analysts. Ideally, as added by Österle et al. (2011), critical skills typically take into consideration the process of actively as well as skilfully conceptualising, analysing, applying, synthesising, as well as evaluation information which is gathered from observation, reasoning, experience, and communication. This usually acts as a guide when it comes to belief as well as action. As such, through critical thinking skills, business data analysts are able to look at the trends, numbers, as well as data for the purpose of coming to new conclusions on the basis of the findings. This as a result normally plays a fundamental role in enhancing the overall efficiency in the organisation.

Lastly when it comes to analytical skills, Chaffey and White (2010) have argued that data analysts usually work with large amounts of data, figures, facts as well as number crunching. As such, through applying the analytical skills, the business data analysts are able to see through the data, analyse it, as well as come with a comprehensive conclusion. Besides, through analytical skills, Österle et al. (2011) has explained that business data analysts are able to visualise, articulate, as well as solve both complex and uncomplicated problems within the an organisation. This, according to Galliers and Leidner (2014), is typically through making decisions that are sensible in light of the available information.

4.0 Conclusion and recommendations

Conclusively, it has been established from this report that business intelligence has become fundamental in many organisations across the globe. This has been for the purpose of increasing revenue while reducing operational costs. With information system in place, processes within an organisation are usually implemented efficiently and effectively. Nonetheless, from this report, it has been established that there are various project leadership and planning skills, as well as data analyst skills that are required for successful development and implementation of information systems. Project management and planning skills needed include leadership and administrative skills, communication skills, collaborative skills, budgeting skills, as well as analytical skills. As regards to data analyst skills, they include analytical skills, communication skills, critical thinking skills, as well as technical skills. In order to enhance these skills, there is need to conduct training sessions to the involved individuals. This a result can make it possible for organisations to leverage more on business information systems.

 

 

References

Burke, R. (2013). Project Management, Planning and Control Techniques. John Wiley and Sons.

Chaffey, D., & White, G. (2010). Business information management: improving performance using information systems. Pearson Education.

Galliers, R. D., & Leidner, D. E. (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.

John, N. and Herman, S. (2012). Project management for engineering business and technology. London: Routledge.

Larson, E. W., & Gray, C. F. (2011). Project management: The managerial process. United Kingdom: Cengage Learning Higher Education.

Lundy, V. & Morin, P. (2013). ‘Project Leadership Influences Resistance to Change: The Case of the Canadian Public Service’, Project Management Journal, 44(4), pp. 45-64.

Österle, H., Becker, J., Frank, U., Hess, T., Karagiannis, D., Krcmar, H., … & Sinz, E. J. (2011). Memorandum on design-oriented information systems research. European Journal of Information Systems20(1), 7-10.

Pinto, J. K. (2013) Project Management: Achieving Competitive Advantage.Harlow: Pearson Education.

Schwalbe, K. (2009). An Introduction to Project Management. 2ndEd. Boston: CengageLearning.

Stair, R., & Reynolds, G. (2013). Principles of information systems. Cengage Learning.

Zeynalian, M, Trigunarsyah, B, & Ronagh, H.R. (2013). ‘Modification of Advanced Programmatic Risk Analysis and Management Model for the Whole Project Life Cycle’s Risks’, Journal Of Construction Engineering & Management, 139(1), pp. 51-59.

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To provide an evaluation and recommendations relating to the use of Facebook as a communication tool in Warwick Castle

To provide an evaluation and recommendations relating to the use of Facebook as a communication tool in Warwick Castle

Executive Summary

This report has provided an evaluation and recommendations relating to the use of Facebook as a communication tool in Warwick Castle. Precisely, this report has established that Warwick Castle is one of the organisations that have been known to use Facebook for as a communication tool. This is due to the fact that most of the employees in the company spend a lot of time on Facebook and therefore they are likely to see information posted fast.  While there are other social media platforms such as Pinterest, Instagram, Twitter, and LikedIn, it has been established from this report that Facebook has been found to be more effective as it can fits most organisational settings.  Various big companies including Facebook Inc, Disney, Delloit, Hyatt, and Samsung have been found to use Facebook as a communication tool. Despite the fact that Warwick Castle has to a considerable extent managed to use Facebook successfully as a communication tool, there is need to enhance the use of Facebook in the company. This is through creating awareness, customising its Facebook group, and use of rich content.  Through such, the company will be able to leverage on Facebook as one of the communication tools.

 

 

 

Table of Contents

1.0 Introduction. 2

2.0 How Warwick Castle has been using Facebook as an internal communication tool 3

3.0 Comparison between Facebook and other social media platforms available. 5

4.0 Exploration of how other companies use Facebook in enhancing communication. 7

5.0 Identification of the best practice in using Facebook as a communication tool 10

6.0 Recommendations. 11

7.0 Conclusion. 13

 

 

 

 

1.0 Introduction

With increased advancement in technology over the last couple of years, the use of social media in communication within organisational setting has become prevalent. In this light, social media typically entails the internet as well as mobile-based tools for sharing information as well as building relationship among people. This sentiment has been echoed by Hsu (2012), who has elucidated that social media typically connects people who share common interest, activities, or political views. Several social media platforms have been developed. Nonetheless, the most common social media platforms include Facebook, Twitter, and Instagram. Taking this into consideration, Facebook has over the last few years remained the most used social media platform in many countries across the world. The platform, which was launched in 2004, has grown rapidly over the years, with more than 1 billion users as at 2017. Taking this into consideration, Facebook has become the choice of most organisations that crave to use social media platforms in communication.  Warwick Castle is one of the organisations that have been known to use Facebook for as a communication tool. Precisely, the human resource manager of the company usually communicates to the employees through Facebook. This explains why the organisation has been selected in this study. Taking this into consideration, this report presents an analysis of the how Warwick Castle has been using Facebook as an internal communication tool. The report also provides a comparison between Facebook and other social media platforms available. Next, the report explores how other companies use Facebook in enhancing communication.  The report also identifies the best practice of using Facebook as a communication tool. Lastly, this report seeks to provide recommendations on how Warwick Castle can use Facebook effectively as a communication tool.

2.0 How Warwick Castle has been using Facebook as an internal communication tool

From the interview that we conducted with the human resource manager as well as employees of Warwick Castle, it is evident that the use of Facebook in the company is not a new concept.  Taking this into consideration, the company has over the last few years been using Facebook as one of the main communication tools in the company. Precisely, from the interviews, it can be deduced that most employees of the company are on Facebook. Nonetheless, from the interview, it is evident that most of the employees in the company usually use Facebook for advertisement purpose.

As explained by Hutchings (2012), Gmail has been found to be the most common tools used by many organisations in communicating relevant information to the employees. This is due to the fact that most employees usually have Gmail accounts besides being easy to use. Nonetheless, from the interview of the human resource manager as well as employees of Warwick Castle, it can be deduced that there are employees who do not want to be contacted through Gmail. In fact, about 60 employees of the company have not provided any contact email, through which they can be communicated. This is a clear indication that a number of employees in the organisation usually prefer other methods of communication apart from email.

From the interview with the human resource manager of Warwick Castle, we found out that the manager has tried a wide range of methods to contact the employees. Nevertheless, he has found that posting on Facebook is the most effective method. This is due to the fact that most of the employees in the company spend a lot of time on Facebook and therefore they are likely to see information posted fast.  Each and every year, there are a wide range of small events in the company such as Halloween as well as dress up to night club. The primary purpose of these activities is to provide the employees with a wide range of opportunities to communicate with each other as well as encourage employees to perform better work. Taking this consideration, the interview with the human resource manager has revealed that the HR executive believes that Facebook can make it easier to communicate with the employees effectively. Besides, through the use of Facebook, the human resource manager of Warwick Castle believes that usually feel free to communicate with the department of director. In support of this, Kwok and Yu (2013) has asserted that the  use of Facebook as a communication tool typically plays a significance role in giving people the opportunity of expressing themselves freely. This as a result makes it easier for information to be conveyed in the right manner.  Therefore, when it comes to the case of Warwick Castle, the use of Facebook has make it possible for employees to interact with the director of department effectively, which in turn has improved their working relations to a considerable extent. Besides, given that some of the employees in the company are part-time, the use of Facebook has made it possible for those employees to be at par with the current trends in the organisation. Consequently, their overall productivity has been improved to a considerable extent.

Regarding communication with the employees, the interview with the human resource manager and employees of Warwick Castle has established that the supervisors of the company typically believes that sometimes they all succeed in attracting the other employees to take part in discussions. This is due to the fact that Facebook normally offers an effective platform where different people can engage in a discussion productively through posting and commenting.  Additionally, it has been revealed that Warwick Castle uses Facebook current in posting schedule including Job page. As such, all employees are kept informed about relevant information regarding the company.

3.0 Comparison between Facebook and other social media platforms available

From online research, we found tried to compare Facebook and other social media platforms that are available. Taking this into account, we found that the most common social media platforms available include Facebook, Pinterest, Instagram, Twitter, and LikedIn.  To start with Facebook, we found out that it is a social networking site where users typically create their profiles, upload photos as well as videos, and send messages. Through such, the users are usually able to keep in touch with their friends, colleagues, as well as friends. Owing to the fact that Facebook is the most widely social media platform, Hsu (2012) has elucidated that most organisations across the world usually have a Facebook page. While this helps greatly in enhancing communication among employees and customers, it plays a fundamental role in generating more brand awareness.  Besides, as aforementioned, Facebook has more than one million subscribers. This usually makes it the most preferred choice of a social media network among many organisations across the world

When it comes to Pinterest, Hutchings (2012) has espoused that it is typically a content-sharing service, which allows members to post or pin photos as well as videos in their pinboards. However, unlike Facebook, which is ideal for any type of business, Kwok and Yu (2013) have asserted that Pinterest is typically best for companies that have rich images for the purpose of telling their stories.  According to Skeels and Grudin (2009), most of the organisations that use Pinterest are mostly from the hotel and travel industry, interior decorating, as well as wedding-related.  Besides, according to Shen and Bissell (2013), it is worth noting that the audience of Pinterest is predominantly female (about 70%). This is an indication that it is mostly used by companies that targets a more female-centric audience. It has also been found that most users of Pinterest usually have high disposable income. Taking this into consideration, it can be deduced that companies willing to use this platform ideally focuses on high income earners.  This is unlike Facebook that focuses on all audience irrespective of their income levels.

As regards to Instagram, Hutchings (2012) has explained that it is an online mobile photo and video sharing network service. Taking this into consideration, the platforms allows users to post and share their photos and videos with their friends. According to Shen and Bissell (2013), photos and videos that are posted on Instagram can be shared on other networking sites such as Facebook, Flickr, and Tumblr.  Taking these into consideration, Hsu (2012) has argued that Instagram usually fits well in image-friendly businesses such as clothing retailers and restaurants. Besides, it has been found that Instagram normally have an appeal to the age group of between 18 to 29 years (Smock, et al. 2011). This is unlike Facebook, which has been seen to appeal to people of all ages.  With this in mind, Skeels and Grudin (2009) have explained those organisations that use Instagram targets young people. A study conducted by Nadkarni and Hofmann (2012) also revealed that Instagram, unlike Facebook skews towards urban people. Thus, most organisations that use the platforms target these people.

When it comes to twitter, Skeels and Grudin (2009) has asserted that it is one of the social networking services that allows the users to send and read 140-character tweets, which are often referred as tweets. While users must be registered to send tweets, anyone can read them. According to Nadkarni and Hofmann (2012), the strength of Twitter typically lies in posting information in real time. Taking this into consideration, this platform is normally used by organisations that deal with in-the-moment updates such as news houses as well as sport related content. Nonetheless, unlike Facebook, twitter is not popular among many businesses. This perhaps explains why many organisations do not use twitter often as part of marketing efforts.

Lastly, as regards to LinkedIn, Shen and Bissell (2013) have elucidated that it is a social networking platform that is used in building connections as well as professional relationships.  Owing to the professional nature of LinkedIn, it is usually popular among college graduates as well as employed people.  Taking this into account, this platform is mostly used by professional business as well as freelance marketers. This is unlike Facebook, which is used by all people irrespective of their profession. Besides, as espoused by Hsu (2012), most users of this platform do not check it daily, therefore it cannot be relied upon by an organisation as a communication tool or as a marketing tool. Besides, Unlike Facebook, LinkedIn does not provide an effective platform for users to engage and share their experience. This explains why it is not popular among many organisations across the world.

4.0 Exploration of how other companies use Facebook in enhancing communication

According to Kwok and Yu (2013), other companies have been using Facebook in enhancing their communication. In light of this, from our online search, we found many big companies that use Facebook as a communication tool.  Nonetheless, the main ones that we found that uses Facebook intensively as a communication tool include Facebook Inc, Disney, Delloit, Hyatt, and Samsung.

As regards to Facebook Inc, Archambault and Grudin (2012) have indicated that the company has used its own site for the purpose of preserving its original start-up vibe. Precisely, given that some of the employees are based in different countries, and only come to the headquarters once or twice per year, Facebook has been used to communicate to these employees. According to Shen and Bissell (2013), working remotely can be isolating to a considerable extent.  Therefore, through the use of Facebook, Facebook Inc has been in a position of connecting all its employees through a single platform. Besides, the company has formed groups on its site for all the departments, which has made it possible for the employees of the company to get directives from the supervisors as well as managers.  As such, the company has ensured quick and efficient method of communication, as there is no tome wastage in trying to contact the right employees for a solution to a problem.

When it comes to Disney, the company has over the last few years used Facebook as a communication tool within the workplace. Despite the fact that the company has heavily used Facebook in marketing its products, Mark et al. (2014) have confirmed that it uses Facebook as a communication tool within the workplace. Taking this into consideration, Wang and Kobsa (2009) explain that Disney has formed a Facebook Group, where members of the company share ideas, documents, as well as other types of necessary content. Besides, through the Facebook Group, it has become possible for employees to share updates immediately as well as brainstorming digitally. As such, the employees of the company have been able to work effectively as a team, which has in turn improved the overall performance of the company.

As regards to Deloitte, over the last three years, the use of Facebook as a communication too has become rampant. Taking this into consideration, Facebook in the company has been used as the primary method of communicating with teams as well as sharing knowledge.  In fact, as explained by Archambault and Grudin (2012), Facebook has replaced email, which was the primary form of communication of the company a few years ago.  The use of Facebook by the company, as explained by Wang and Kobsa (2009) has been fuelled by the need to allow the employees share information that is relevant to their projects in a more efficient manner.  Additionally, the use of Facebook in the organisation has to a considerable extent replace newsletters as well as fax machines.

As regards to Samsung, the company has also not been left behind as far as the use of Facebook as a communication tool is concerned.  In light of this, notwithstanding the fact that the company has used Facebook group in bringing different employees together in sharing knowledge and ideas, the company has also leveraged on workchat. On this, the use of Facebook workchat has made it possible for the employees to communicate in real time. As such, employees can be able to easily work on something fast and efficiently. Besides, it can be possible for the manager to video call the employees, which further ease the mode of delivery of information.  As such, Facebook in the company has been regarded as one of the most effective tools when it comes to enhancing communication within the workplace.

Lastly, when it comes to Hyatt, the company has over the years leveraged on Facebook in passing message to the customers as well as employees. Precisely, as put across by Mark et al. (2014), Hyatt has used Facebook Message for customer service. This has been for the purpose of having meaningful conversations with the guests on a close as well as private environment. As such, the company has been in a position of providing personalised services to the customers. Besides, managers also use Facebook messenger in passing customised messages to the employees. This has been seen to be an easier way of communicating within the organisation. With increased popularity of Facebook, the company intends to replace other forms of communication such as emails with Facebook (Archambault & Grudin, 2012). This will allow more interaction between the managers and the employees as well as among the employees themselves. Consequently, the overall performance of the organisation is expected to improve to a substantial degree.

5.0 Identification of the best practice in using Facebook as a communication tool

Taking into account the interview with the HR manager and employees of Warwick Castle, as well as online search, we found out that there are various practices that can be adopted by any organisation for the purpose of effectively using Facebook as a communication tool.  One of the best practices of using Facebook is through consistency as regards to the provision of information to the audience. Taking this into consideration, Kwok and Yu (2013) have explained that one of the best ways of using Facebook is ensuring consistency of information. This is due to the fact that it makes possible for the audience to consider the platform reliable. For instance, when it comes to an organisational setting, the organisation should always communicate relevant information to the audience in time. Through such, they can consider Facebook as reliable, and this will make them use it in getting the needed information. In light of employee’s perspective, the human resource manager should always consider positing various matters related to their welfare such as payment dates on social media. It is through such that the can develop a positive attitude towards Facebook, and this can incline them to use the site more often.

Secondly, another best practice in relation to the use of Facebook is through effectively use of Facebook Group. On this, Mark et al. (2014) have explained that organisations can consider using Facebook effectively for the purpose of engaging directly with the employees. For the purpose of achieving this objective, Shen and Bissell (2013) explain that there is a considerable need for organisations to encourage employees to use Facebook. It is through such that an organisation can have a feasible audience to share information. Besides, in an attempt to use Facebook Group effectively, Wang and Kobsa (2009) have asserted that organisations should consider only sharing information that is relevant to the employees. Through such, the employees can appreciate the use of Facebook as a communication tool, which can in turn increase the level of engagement with the employees. Additionally, an organisation can use the Facebook group in conducting online training for employees. Through such, it can be possible for the employees to have brainstorming sessions, which can in turn increase their knowledge as well as skills in specific field. This can ultimately increase the productivity of the employees within the organisation.

Another best practice of using Facebook as a communication tool in organisations is through ensuring that there is sharing of rich content to the employees. On this, Mark et al. (2014) has indicated that an organisation craving to use Facebook as a communication tool within the place of work has to ensure that the content being share is rich. This is in the sense that it makes relevance to the audience. Additionally, presentation of the content or information should be systematic to a considerable extent. Through such, the employees can become inclined to using Facebook as a communication tool. Besides, the use of rich content can make them contribute significantly to a certain issue being addressed. The end result of this is that the employees can be motivated to use Facebook effectively for the benefit of themselves as well as the whole organisation at large.

6.0 Recommendations

Despite the fact that Warwick Castle has to a considerable extent managed to use Facebook successfully as a communication tool, various recommendations have been offered by this report  on how the company can leverage on Facebook more. Taking this into consideration, one of the main recommendations is to create awareness among employees on the use of Facebook as communication. In regards to this, it is a fact that despite the fact that most employees usually use Facebook, there are a number of employees, especially the part –time employees who do not use Facebook. Therefore, Warwick Castle can leverage Facebook as a communication tool through bringing all employees on board in using Facebook to communicate. For the purpose of achieving this, the company needs to conduct seminars, where the employees can be trained on the benefit of using Facebook as a communication tool within an organisational setting. Besides, the employees can be trained on the best ways of using Facebook in communication. As such, all employees can be brought on board, which can make it possible for the company to communicate effectively to the employees through Facebook.

Another recommendation that can be taken into consideration by the Warwick Castle is to customise its Facebook group. A study conducted by Hutchings (2012) revealed that Facebook users are usually attracted to pages that are customised. Precisely, he found out that one of the best ways of infusing excitement into a Facebook group is to use customised landing page that encourages likes even before the readers can engage more with the group. This also plays a significant role in strengthening the identity of the organisation. Taking this into account, Warwick Castle needs to customise its Facebook page to fit the needs of the employees. Precisely, Warwick needs to make its page attractive to the eyes of the employees. For instance, the co many can add logo as well as mission of the company on its main page. As such, employees can gain identity of the organisation, which in turn can help in making them to become more engaged.

Another key recommendation from this report in regards to how Warwick can leverage on Facebook in communication is the use rich content. Taking this into consideration, Nadkarni and Hofmann (2012) has asserted that content in social medial refers to what is being share for the aim of passing a particular message to the audience. This typically includes written content, videos, as well as photos among others.  According to Nadkarni and Hofmann (2012), great content on Facebook can be a substantial asset in regards to building the number of fans. Therefore, when it comes to the case of Warwick Castle, there is a significant need for the human resource manager as well as supervisors to post rich content that will attract many employees. Through such, employees will be finding a reason of spending their time on Facebook. Consequently, it will become easier for the company to pass information easily to the employees. While this will improve internal coordination of activities, it will also play a significant role in improving the overall productivity of the company.

7.0 Conclusion

In conclusion, it is deducible that the use of social media in communication in organizations has become common. In this regard, social media typically entails the internet as well as mobile-based tools for sharing information as well as building relationship among people. Facebook has been found to be the most common social media platform. From this report, it has been established that Warwick Castle is one of the organisations that have been known to use Facebook for as a communication tool. The report has revealed that this is due to the fact that most of the employees in the company spend a lot of time on Facebook and therefore they are likely to see information posted fast.  Besides, as found out in the report, Facebook usually offers an effective platform where different people can engage in a discussion productively through posting and commenting. While there are other social media platforms such as Pinterest, Instagram, Twitter, and LikedIn, Facebook has been found to be more effective as it can fits most organisational settings. From our online search, we found many big companies that use Facebook as a communication tool including Facebook Inc, Disney, Delloit, Hyatt, and Samsung. Despite the fact that Warwick Castle has to a considerable extent managed to use Facebook successfully as a communication tool, there is need to enhance the use of Facebook in the company. This is through creating awareness, customising its Facebook group, and use of rich content.

 

 

References

Archambault, A., & Grudin, J. (2012, May). A longitudinal study of facebook, linkedin, & twitter use. In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems (pp. 2741-2750). ACM.

Hsu, Y. L. (2012). Facebook as international eMarketing strategy of Taiwan hotels. International Journal of Hospitality Management31(3), 972-980.

Hutchings, C. (2012). Commercial use of Facebook and Twitter–risks and rewards. Computer Fraud & Security2012(6), 19-20.

Kwok, L., & Yu, B. (2013). Spreading social media messages on Facebook: An analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly54(1), 84-94.

Mark, G., Iqbal, S., Czerwinski, M., & Johns, P. (2014, February). Capturing the mood: facebook and face-to-face encounters in the workplace. In Proceedings of the 17th ACM conference on Computer supported cooperative work & social computing (pp. 1082-1094). ACM.

Nadkarni, A., & Hofmann, S. G. (2012). Why do people use Facebook?. Personality and individual differences52(3), 243-249.

Skeels, M. M., & Grudin, J. (2009, May). When social networks cross boundaries: a case study of workplace use of facebook and linkedin. In Proceedings of the ACM 2009 international conference on Supporting group work (pp. 95-104). ACM.

Shen, B., & Bissell, K. (2013). Social media, social me: A content analysis of beauty companies’ use of facebook in marketing and branding. Journal of Promotion Management19(5), 629-651.

Smock, A. D., Ellison, N. B., Lampe, C., & Wohn, D. Y. (2011). Facebook as a toolkit: A uses and gratification approach to unbundling feature use. Computers in Human Behavior27(6), 2322-2329.

Turner, T., Qvarfordt, P., Biehl, J. T., Golovchinsky, G., & Back, M. (2010, April). Exploring the workplace communication ecology. In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems (pp. 841-850). ACM.

Wang, Y., & Kobsa, A. (2009, August). Privacy in online social networking at workplace. In Computational Science and Engineering, 2009. CSE’09. International Conference on (Vol. 4, pp. 975-978). IEEE.

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Global Foods Inc Expansion into Fast Food industry in Hungary

Global Foods Inc Expansion into Fast Food industry in Hungary

Executive Summary

This report has focused on international expansion of Global Foods into the fast food industry in Hungary. From this report, it has been established that for Global Foods to expand into Hungary, there is a considerable need for the company to take into account the political, economic, social, technological, environmental, as well as legal aspects in Hungary. This report has also established that there are various methods that can be used in entering a foreign market including joint venture, licensing, exporting, and direct investment. However, from this report Global Foods should consider using direct investment. This will make the company have a full control of its operations.  Additionally, through the use of direct investment, it will be easier for the company to understand the needs of its customers.  Besides, Global Foods need to understand the culture if Hungary in order to make it possible for the company to conduct its operations in accordance to the national culture of the Hungary.  Though such, Global Foods will have a significant market share in the fast food industry in Hungary.

 

 

Table of Contents

1.0 Introduction. 4

2.0 PESTEL Analysis of fast food industry in Hungary. 4

2.1 Political aspects. 4

2.2 Economic aspects. 5

2.3 Social aspects. 5

2.4 Technological aspects. 6

2.5 Environmental aspects. 6

2.6 Legal aspects. 6

3.0 Market entry strategy for Global Foods into Hungary. 7

3.1 Exporting. 7

3.2 Licensing. 7

3.3 Foreign direct investment 8

3.4 Joint venture. 8

3.5 The recommended entry strategy for Global Foods into Hungary. 8

4.0 Influence of national culture on branding and marketing communication strategy of Global Foods  9

5.0 National economic, social, cultural, and political impacts on marketing strategy behaviour of Global Foods  10

6.0 Influence of national culture on product lines and individual offerings of Global Foods. 11

7.0 Conclusions. 14

References. 15

 

 

 

 

1.0 Introduction

As many business organisations worldwide crave to increase their revenues, international expansion has become an ideal option for most of them. With increased globalisation over the last few decades, international expansion has become the norm in many organisations across the world. As explained by Kearney (2010), expanding internationally has created a wide range of opportunities for growth especially when it comes to emerging as well as other fast-growing markers.  Nonetheless, as found out by Lee and Lieberman (2010), the success of any international expansion is to a considerable dependent on the entry strategy mode. Besides, with diversified cultures across the world, the success of international expansion is also dependent largely on how the organisation is inclined to operate in accordance to the national culture of the foreign country. Taking this into consideration, this paper seeks to analyse international expansion of Global Foods Inc into the fast food industry in Hungary. The first part of this paper evaluates the external environment of the fast food industry in Hungary. The second part looks at the market strategy modes that can be used by Global Foods.  The third part looks at the influence of national culture on branding and marketing communication strategy of Global Foods. The forth part looks at the national economic, social, cultural, and political impacts on marketing strategy behaviour of Global Foods. The last part of this report looks at the influence of national culture on product lines and individual offerings of Global Foods

2.0 PESTEL Analysis of fast food industry in Hungary

2.1 Political aspects

As noted by Ghedrovici (2013), the government of Hungary has been stable to a considerable extent. This has implied that it has become easier for firms in the fast food industry to operate effectively without disruption of any form of political unrests.  Nonetheless, the controversial policies in the country such as media law as well as changes in the constitutions as regards to ethical and moral standards has resulted to international criticism from various countries across the world. This, to a huge extent has resulted to separation between Hungary and other countries especially in the Europeans Union. Consequently, trading activities have reduced, and this has made it hard for international fast food firms to enter and operate in the country.

2.2 Economic aspects

Over the last couple of years, the economy of Hungary has witnessed a tremendous growth (as shown on the figure below) characterised by increased GDP, freedom of investments, as well as business freedom among other key indicators (Konya & Jakab, 2016).  Interest rates have also gone down significantly over the last few years. This as a result has increased the purchasing power of consumers, thus boosting the fast food industry in Hungary. Nevertheless, despite the robust economy, unemployment rates have remained high, thus decreasing the standard of living of most people in the country. The fast food industry has in turn been affected substantially due to reduced sales.

Figure 1: Economy of Hungary

Source: Konya and Jakab (2016)

2.3 Social aspects

There have been increasing health issues that have come as a result of consuming fast foods, which have been considered to have high calorie levels including diabetes, stroke, as well as heart attack (Kearney, 2010).  In response to this, over the last several years, there has been increased consumer awareness regarding healthy lifestyles, which has pressured most of the fast food firms to offer healthier options. While this has made these firms in incur additional operational costs, most consumers in the country prefer to cook from their homes. This has significantly reduced sales of fast food firms, thus leading to less profit margins.

2.4 Technological aspects

As explained by Kearney (2010), technological advancements have considerably impacted firms in the fast food industry in Hungary. Specifically, as put across by Ghedrovici (2013), advancement in internet has made it possible for firms in the industry to leverage on various social media platforms for the purpose advertisements. Besides, most firms in the industry such as Macdonald’s have considered using digital displays, which has allowed the change of menu efficiently in order to suit the time of the day. This as a result has led in attraction of many customers, thus increasing profit margins considerably.

2.5 Environmental aspects

Over the last couple of years, environmental degradation has become one of the major concerns in Hungary. In this regards the government of Hungary as well as other bodies have put a lot of pressure on firms in the fast food industry to become more “green”.  Besides, owing to the increased environmental awareness among many consumers in the country, most firms in the industry have positioned themselves as “green”, through reducing the amount of emission as well as packaging. This has solely been for the purpose of garnering customer loyalty. Furthermore, the Environmental Protection Act of 1995 has ensured firms in the fast food industry reduce their emissions considerably (Ghedrovici, 2013).

2.6 Legal aspects

Various legal aspects have affected the fast food industry in Hungary. Precisely, firms that operate in the fast food industry in the country have to comply with a wide range of legislation and regulations.  These have entailed employment regulations, minimum wages, opening hours, as well as taxation (Morschett et al., 2010). Precisely, firms operating in the fast food industry in Hungary have to meet national food standards which have been set by Food Standards Agency. In attempt to meet these standards, firms have incurred a lot of operational costs, which have lowered their profit margins to a substantial extent.

3.0 Market entry strategy for Global Foods into Hungary

Foreign market entry strategy as explained by Cavusgil et al. (2014) refers to the planning as well as implementation of delivering of services or goods to a new target foreign market. According to Nielsen and Nielsen (2011), foreign market entry strategy typically requires establishing as further managing contracts in a foreign country. While there are various strategies that can be used by firms when venturing into foreign markets, the main ones are exports, licensing, franchising, and joint venture.

3.1 Exporting

Exporting as explained by Lee and Lieberman (2010) refers to the process of selling goods or services produced in one country to other countries.  The exporting strategy may take into account both direct as well as indirect exports.  According to (Morschett et al., 2010), direct exporting usually involves selling directly into the chosen foreign market through organisation’s own resources.  The maim characteristic of direct exportation strategy is that there are no intermediaries used.  While direct export helps an organisation in capitalising on economies of scale in production, it usually works bests when the volumes are small.  This is due to the fact that large volumes may trigger protectionism. On the other hand, when it comes to indirect exportation strategy, it entails exporting through domestically based intermediaries. In this regard, the export typically does not have any control over its products or services in the foreign market.

3.2 Licensing

The licensing foreign market entry strategy entails an arrangement, where an organisation transfers the rights to use or produce a service or product to another firm. This strategy, as explained by Lee and Lieberman (2010) usually works well when the purchase of the licence has a large market share in the foreign market,  in most ideal situations, licensing is typically a flexible work agreement which can be customised for the purpose of fitting the needs as well as interests of both the licensor and the licensee.

3.3 Foreign direct investment

The foreign direct investment entry strategy refers to the direct ownership of facilities in the target foreign market.  Taking this into account, it usually entails the transfer of resource such as capital, personnel, and technology. While direct foreign investment may be through acquisition of an already existing firm, it can involve establishment of a new enterprise.  As espoused by Cavusgil et al. (2014), direct ownership ideally provides high degree of control in the operations as well as the ability of understanding the competitive environment. Nonetheless, this strategy typically needs a wide range of resources as well as high degree of commitment.

3.4 Joint venture

Joint ventures, as explained by Lee and Lieberman (2010) typically involve the creating of a third company, which is managed independently. Precisely, as asserted by (Morschett et al., 2010), two companies usually agree to work together in a specific market, and then create a third company in order to undertake this. Ideally, risks as well as profits in joint ventures are usually shared equally. However, there are key issues that need to be taken into consideration when using the joint venture strategy. These are ownership, length of agreement, pricing, control, technology transfer, as well as local firm’s capabilities as well as resources.

3.5 The recommended entry strategy for Global Foods into Hungary

Taking the above foreign market entry strategies, Global Foods need to consider the use of foreign market investment. In this light, unlike other entry strategies, foreign direct investment can help Global Foods in have adequate access to the fast food market in Hungary. Through this, Global foods can be in a position of understanding the needs and wants of the customers. This in turn can make it possible for the company to provide personalised services to the customers. Consequently, Global foods can be able to have a significant market share in the industry. Taking this into account, Global Foods need to use foreign direct investment strategy, where it needs to put up several restaurants across the main cities in the country such as Budapest, Debrecen, Miskolc, and Szeged. This can makes its products available to many clients across the country.

4.0 Influence of national culture on branding and marketing communication strategy of Global Foods

According to Kilsgård et al. (2008), the impact of culture on branding and marketing communications cannot be under-estimated. Taking this into consideration, Mamalis et al. (2006) have explained that there are various cultural aspects that considerably influence branding and marketing communication. Some of these aspects include language, values, rituals and symbols among others.  Consumers usually have different choices of products and services in different countries.  This is according to Kilsgård et al. (2008), who adds that these differences are typically as a result of diversified culture, values, attitude, and norms.  Companies expanding to international markets always face the problems of designing marketing strategies in accordance to the cultural diversifications.  For instance, taking into account the aspect of language, firms craving to expand to international markets must take that into account particularly when the language of home country is different from that of the foreign countries. Besides, such companies have to ensure that the values and rituals of the foreign country are taken into account when developing marketing strategies for various products. It is only through doing such that an international organisational can have a competitive edge in a foreign country.

When it comes to the international expansion of Global Foods into the fast food industry in Hungary, there is a considerable need for the company to ensure that cultural aspects are taken into consideration in its marketing and branding strategies.  Precisely, Global Foods need to provide foods that are culturally accepted in the country such as beef, and wheat products. Besides, to ensure effective marketing, of its products, Global Inc needs to ensure that some of the employees are from Hungary. This will play a significant role in enhancing effective communication with potential customers.

5.0 National economic, social, cultural, and political impacts on marketing strategy behaviour of Global Foods

According to Cavusgil et al. (2014), marketing strategy behaviour is usually impacted largely by political, economic, social, and cultural impacts.  There are various economic, social, cultural, as well as political elements that can influence the marketing strategy behaviour of Global Inc in the fast food market in Hungary. Precisely, when it comes to the economic aspects, the increase in growth in the economy of the country is likely to increase the purchasing power of consumers. Therefore, this is likely to increase middle class earners in the country, and thus Global Inc will have to differentiate its products to meet the needs of this group of consumers. When it comes to social aspect, it is a fact that the population of Hungary is just 9 million. This population is relatively small, and therefore Global Foods will open just few stores across the country. Besides, as earlier noted, most consumers in the fast food industry in Hungary have now become health conscious. Taking this into consideration, most of them have considered looking for healthier options. In this light, on top of its marketing strategy, Global Foods have to consider updating its menu for the purpose of ensuring that the foods sold have low calorie. It is only through such that the company will be in a position of ensuring that it attracts customers.  As regards to cultural aspects, Global Foods have to ensure that the foods prepared are in line with the cultural norms. Besides, given that Hungarian is the official language in the country, Global Foods need to recruit employees from the Hungary. Additionally, foreign employees need to learn the language. This will significantly help in understanding the needs of the customers in a manner which is more effective. Lastly, as regards to the political aspects, Global Foods have to conduct marketing in line with the set rules and policies by the government of policy.  For instance, the company should set its pricing in line with the set prices of products by the government.

6.0 Influence of national culture on product lines and individual offerings of Global Foods

According to Minkov and Hofstede (2011), national culture typically refers to a set of norms, behaviours, beliefs, as well as customs, which exist within a population of a nation. In light of this, international firms typically develop management as well as other practices in line with the national culture that they are operating in.  According to the Hofstede’s cultural dimensions, national culture usually takes into consideration six main aspects these are power distance, individualism, uncertainty avoidance, long-term orientation, masculinity, and indulgence. Taras et al. (2010) have indicated that national culture usually has a significant impact on product lines as well as individual offerings. In regards to this, the national culture of Hungary is likely to have a considerable impact on the product lines and individual offerings of Global Foods.  However, this is particularly in the dimension of power distance, masculinity, uncertainty avoidance, and individualism.   The Hofstede’s cultural dimensions of Hungary are depicted in the figure 2 below.

Figure 2: Hofstede’s dimensions of culture

Source: Minkov and Hofstede (2011)

As regards to the aspect of power distance, it takes into account the extent to which less powerful people in the society accepts power inequality. According to Hofstede (2011), countries that score high in power distance are usually more likely to have more inequality, wealth, need for power, prestige and status. Taking the case of Hungary into account, its score in the power distance is considerably low at 46 percent.  Thus, for Global Foods it has to ensure that its products portray equality with little or no social status. For instance, Global Foods need to provide products affordable by most of the consumers.

As regards to the aspect of individualism, Minkov and Hofstede (2011) have explained that it typically measures the extent to which individuals have ties within their community.  While individualistic cultures are typically concerned about their own opinions, collectivism cultures usually feel that they belong to a large group, and care about the welfare of other members. When it comes to Hungary, it scores high in the individualism aspect at 80 percent. The implication of this on the product lines and offerings of Global Foods is that the company need to provide products that are individual- based. For instance, the company should consider offering products that are small in size, which can be consumed by one customer. Products such as “Family Pizza” should be avoided by the company when operating in this market.

When it comes to the aspect of masculinity, Hofstede (2011) assets that it refers to the degree to which a particular culture has its social roles distributed among its members.  Taking this into consideration masculine societies typically value characteristics that are considered masculine such as competitiveness, status, as well as assertiveness.  For the case of Hungary, the country has a high score of masculinity at 88. Therefore, masculinity aspects are usually valued in Hungary. This implies that the products that Global Foods should offer need to ensure that the aspect of masculinity is taken into consideration. For instance, Global Foods can consider providing foods that are valued more by mean such as meat. Through such, Global Foods can be in a position to operate successfully in the country.

Lastly, in regards to the aspect of uncertainty avoidance, Hofstede (2011) espouses that it is the extent to which uncertainty is tolerated in a given culture.  In light of this, cultures that are considered to be high in uncertainty avoidance are typically less tolerant to unexpected situations, and this are normally structured with various rules for social behaviour.  In Hungary, the uncertainty avoidance is significantly high at 82 percent. This implies that consumers in the country are typically less tolerable to situations that are perceived uncertainty. Therefore, when it comes to product lines and offerings of the Global Foods, there is a considerable need for the company to offer products that are the clients are familiar with. This means that that there is need for Global Foods to benchmark from other firms in the industry in order to identify the foods in the industry. It is through this that the company will produce products that meet the expectations of the customers.

7.0 Conclusions

In conclusion, it has been revealed in this report that expanding to Hungary by Global foods is one of the major steps that the company can take towards increasing its revenue. However, the company needs to take into account political, economic, social, technological, environmental, as well as legal aspects in Hungary. From this report, it has been established that there are various methods that can be used in entering a foreign market. These are joint venture, licensing, exporting, and direct investment. Nonetheless, Global Foods should consider using direct investment. This will make the company have a full control of its operations.  Besides, through the use of direct investment, it can be easier for the company to understand the needs of its customers.  Furthermore, Global Foods need to understand the culture of Hungary. This will make it possible for the compansy to conduct its operations in accordance to the national culture of the Hungary.

 

 

 

References

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014) International business. Pearson Australia.

Ghedrovici, O. (2013) ‘How Global Luxury Brands Enter the Emerging Markets of Eastern Europe Dr. Nikolai Ostapenko;,  Journal of International Business and Economics1(1), pp.39-74.

Hofstede, G. (2011) ‘Dimensionalizing cultures: The Hofstede model in context’ Online readings in psychology and culture2(1), pp.8-34.

Kearney, J. (2010) ‘Food consumption trends and drivers’,  Philosophical transactions of the royal society B: biological sciences365(1554), pp.2793-2807.

Kilsgård, D., Nero, M., & Sundin, E. (2008) Cultural differences when entering a new market. A study of Swedish companies entering the Eastern European markets.

Konya, I., & Jakab, Z. (2016). An estimated open-economy DSGE model with search-and-matching frictions: the case of Hungary. Emerging Markets Finance and Trade.

Lee, G. K., & Lieberman, M. B. (2010) ‘Acquisition vs. internal development as modes of market entry’, Strategic Management Journal31(2), pp.140-158.

Mamalis, S., Ness, M., & Bourlakis, M. (2006) Standardization versus customisation. The role of culture. In 98th Seminar, June 29-July 2, 2006, Chania, Crete, Greece (No. 10056). European Association of Agricultural Economists.

Minkov, M., & Hofstede, G. (2011) ‘The evolution of Hofstede’s doctrine’, Cross Cultural Management: An International Journal18(1), pp.10-20.

Morschett, D., Schramm-Klein, H., & Swoboda, B. (2010) ‘Decades of research on market entry modes: What do we really know about external antecedents of entry mode choice?’, Journal of International Management16(1), pp.60-77.

Nielsen, B. B., & Nielsen, S. (2011) ‘The role of top management team international orientation in international strategic decision-making: The choice of foreign entry mode’, Journal of World Business46(2), pp.185-193.

Regmi, A., & Gehlhar, M. J. (2005) New directions in global food markets. US Department of Agriculture.

Taras, V., Kirkman, B. L., & Steel, P. (2010) ‘Examining the impact of Culture’s consequences: a three-decade, multilevel, meta-analytic review of Hofstede’s cultural value dimensions’, Journal of Applied Psychology95(3), pp.405-435.

Wijnands, J. H. M., Van der Meulen, B. M. J., & Poppe, K. J. (2007) Competitiveness of the European food industry. An economic and legal assessment. European Commission.

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Activities and skills required to successfully manage the construction of Watson’s new club

Activities and skills required to successfully manage the construction of Watson’s new club

Executive summary

This report has focused on project management of Watson PLC, one of the leisure companies in the United Kingdom. From the report it has been established that the company needs to construct n additional club which is bigger than existing ones.  Various activities of the project have been analysed. These activities include project feasibility study, project scope management, project time management, project team structuring, project budget and cost control, and project quality control.  When conducting these activities it has been established from this report that there is a considerable need for the project manager of the Watson PLC new club project to have a wide range of skills in order to complete the project successfully. Some of these skills include feasibility study skills, research skills, forecasting skills, analytical skills, time management skills, collaboration skills, communication skills, and motivation skills.  It is through such skills that the company will be in a position of completing the project successfully.

 

 

 

Table of Contents

1.0 Introduction. 6

2.0 Watson PLC project life cycle. 6

3.0 Main activities needed to successfully complete the Watson project 7

3.1 Project feasibility study. 7

3.2 Project scope management 7

3.3 Project budget and cost control 8

3.4 Project risk management 9

3.5 Project team structuring. 10

3.6 Project time management 11

3.7 Project quality management 12

3.8 Project leadership and motivation. 12

4.0 Conclusion. 13

 

 

 

 

 

1.0 Introduction

Watson PLC is one of the British leisure companies that specialise in the provision as well as operation of private health and fitness clubs within the United Kingdom. With the establishment of the first club in 1994, Watson PLC has opened 24 more clubs within the United Kingdom, which are all incorporate a swimming pool, a health studio, a fitness facility, 3 aerobic studios, two meeting rooms, as well as a small cafeteria. The company intends to open a new club that will incorporate new facilities as well as services.  The new club will be larger than the existing clubs given that it will have a small 100 seat cinema as well as extensive beauty spa. With an investment of 1 million pounds, the project is set to take 48 weeks. Taking this into account, this report seeks to analyse the main activities of the project.

2.0 Watson PLC project life cycle

According to Dimgba and Achumba (2010), project life cycle usually takes into consideration the phases that a particular project undergoes from the start to the end. In regards to this, Laufer (2012) has asserted that there are four primary phases of project life cycle; project initiation stage, project planning phase, project execution phase, as well as project closure phase.  As regards to the project initiation stage, the objects as well as goals of the project are identified and defined.  This stage also entails conducting a feasibility study for the purpose of determining the viability of a given project.  Besides, it is in the project initiation stage that the project manager is appointed and the main stakeholders of the project identified. When it comes to the project planning phase, the solution of the project is further developed, where the required steps needed to meet the project deliverables are identified.  As espoused by Laufer (2012), the project planning phase typically involves scope management, time management, as well as budget and cost control.  As regards to the project execution phase, implementation of the project plan is done, where major tasks of the project are executed. At this stage, the project manager closely monitors the progress of the project for the purpose of ensuring that the project objectives and goals are achieved.  When it comes to the closure phase of a project, it involves handing over the final project to the customer. Given that the Watson project will pass through the four phase of project life cycle, there is a considerable need for the project management manager to have required skills in order to ensure that the project is complete successfully. The figure 1 below shows the project life cycle.

Figure 1: Project life cycle

Source: Schwalbe (2009)

3.0 Main activities needed to successfully complete the Watson project

3.1 Project feasibility study

According to Laufer (2012), conducting a feasibility study is usually fundamental before the commencement of any project.  Taking this into consideration, feasibility study typically entails the assessment of the viability as well as practicability of the project. In this light, feasibility study typically makes it possible for the project manager to decide whether to continue with a particular project of not. When it comes to the case of the Watson new club project, there is a substantial need for the project manager to have adequate feasibility study as well as forecasting skills for the purpose of assessing the viability of opening a new club.  Precisely, there is a need for the project manager to carry out a critical evaluation of the project in basis of the financial as well as technical strengths of the company. While there are various methods that can be used by the project manager in carrying out the feasibility study, benchmarking against similar projects can be among the best ways. On this, the project manager should benchmark on similar projects undertaken by the company. Through such, the project manager can be able to determine whether it is practical to implement the project plan or not. The framework for feasibility study is shown in the figure 2 below.

Figure 2: Feasibility analysis

Source: Richardson (2014)

3.2 Project scope management

Hans (2010) has defined project scope management as the process of determining as well as documenting various project goals, tasks, costs, and deadlines. Project scope management as described by John and Herman (2012) usually play a fundamental role in setting up procedures when it comes to determining the manner I which the completed work of the project will be verified. As asserted by Larson and Gray (2011), it is through project scope management that the project manager can make effective decisions in regards to any change request of the project.  As regards to the Watson PLC new club project, the project manager need to have adequate planning as well as analytical skills for the aim of having a clear understanding of the project. On the ways which can make this achievable is through the use of Work Breakdown Structure (WBS) for the purpose of organising the overall scope of the Watson PLC new club project. According to Pinto (2013), WBS is a main deliverable that helps in organising the work of the project team in sections that are manageable.  Schwalbe (2009) has indicated that WBS typically provides the needed framework when it comes to detailed costs estimating and control (Richardson, 2014). Therefore, for the Watson PLC new club project, the project manager needs to have strong planning and coordination skills in designing a WBS.  The illustration of a possible WBS of the Watson PLC new club project is as shown in the figure 3 below.

Figure 3: WBS of the Watson PLC new club project

Source: Author

3.3 Project budget and cost control

According to Dimgba and Achumba (2010), there is usually a fundamental need to ensure that funds allocated to a particular project are utilised in the right way. Failure to do so can make it hard for the project to be completed in time. Taking this into consideration, project budget and cost control, as elucidated by John and Herman (2012) entails identifying the financial aspects of a particular project in order to ensure that it is completed successfully.  Besides, Larson and Gray (2011) have espoused that through project budget and costs control, it is possible for the project monitor as well as control the spending of the allocated funds, which helps considerably in avoiding cost overruns. Taking the Watson PLC new club project into account, there is a considerable need to have strong forecasting skills for the aim of making effective budgetary estimates of all project activities.  As asserted by Pinto (2013), this can be possible through having adequate knowledge of using spreadsheets in attempt to enhance accuracy in budget estimation of all project activities. Through this, the project manager can ensure that resources are allocated accordingly, which can help in ensuring that the project is completed on time. Besides, there is need for the project manager of the Watson PLC new club project to have strong negotiation skills. This can make it possible for the company to negotiate for lower prices of raw materials needed for the projects. While this can help in effective allocation of resources, it can make it possible for the company to reduce the overall costs of completing the Watson PLC new club project.  Figure 4 below is the budget for the Watson PLC new club project

Figure 4: Budget for the Watson PLC new club project

Source: Author

3.4 Project risk management

As put across by Dimgba and Achumba (2010), every project is usually susceptible to a wide range of risks. Which may have devastating impacts on the project is not well managed. Taking this into account, Larson and Gray (2011) has espoused that the success of any project is to a large extent dependent on how risks are managed. According to Burke (2013), project risks management typically involves the systematic process of managing possible risks of a given project. Ideally, project risk management entails planning, coordinating, leading, and controlling a wide range of activities that are undertaken in project management.  This as a result helps hugely in providing a pre-loss plan that minimises the devastating impacts of risks in a particular project.  There are four main steps that need to be taken into consideration when managing risks of a given project. These, as shown in the figure 5 below include risk identification, risk response, risk monitoring, and risk control (Pinto, 2013).  As regards to the Watson PLC new club project, there is need for the project manager to have adequate forecasting skills for the aim of analysing the possibility of a risk occurring. It is through such skills that the project manager can devise various measures of mitigating the risks of the Watson PLC new club project.

Figure 5: Project risk management

Source: Machac and Steiner (2014)

3.5 Project team structuring

Project team structuring is usually fundamental for any project given that it helps in ensuring that the deliverables of the project are achieved. Taking this into consideration, project team structuring typically involves identifying relevant, qualified as well as competent personnel to be assigned particular activities and roles in a project.  According to John and Herman (2012), project team structuring also makes it easier for the team members to follow the right communication protocol while carrying out their respective roles. When it comes to the Watson PLC new club project, effective team structuring will see the project being completed on time. However, the project manager needs to have strong staffing skills in order to select the most qualified team members. Additionally, there is need for the project manager to have strong collaboration skills in order to establish a good working relationship with all the team members. This as a result will see the Watson PLC new club project completed on time. The figure 6 below depicts how the project manager of Watson PLC new club project needs to structure the project team.

Figure 6:  Watson project team structuring

Source: Author

3.6 Project time management

According to Hans (2010), project time management is usually one of the most salient components project management. Taking this into account, project time management usually involves ensuring that the project is completed within the set deadline.  Burke (2013) has noted that effective management as well as administration of the contact time is crucial in avoiding and mitigating time extension and cost overruns. Therefore, for the Watson PLC new club project, the project manager need to have effective time management skills for the purpose of taking the project to completion. Precisely, in order to manage time effectively, the project manager of the Watson PLC new club project needs to make use of Gantt charts, which help in illustrating the start and finish dates of all activities of a given project.  It is through the use of Gantt charts the project manager of the Watson PLC new club project will be in a position of ensuring that all the project activities are completed within the set time frame. Gantt charts will also ensure that no activity is left. The figure below illustrates the Gantt charts for the Watson PLC new club project.

Figure: 7 Watson project Gantt chart

Source: Author

3.7 Project quality management

The quality of a project is usually the main consideration of its completion. This is according to Hans (2010), who adds that project management typically takes into consideration project quality assurance, quality control, quality planning, as well as quality improvement.  Therefore, there is a significant need for a project manager to have adequate skills and knowledge in quality management, which can help in ensuring that the quality of the final project is in accordance with the expected quality levels. When it comes to the Watson PLC new club project, the project manager should have strong analytical skills in order to monitor the project process.  Through this, the project manager can ensure that the quality criteria of the Watson PLC new club project are met.  In order to achieve this, the project manager of the Watson PLC new club project should have a quality management plan, which can help him in checking the quality of the project against the set criteria.  The project quality management plan to be used in the Watson PLC new club project is as shown in the figure 8 below.

Figure 8:  Project quality management

Source: Snyder (2013)

3.8 Project leadership and motivation

According to Burke (2013), leadership and motivation usually play a fundamental role in the success of any project. Taking this into consideration project leadership and motivation usually ensure that the team members work towards meeting the set goals as well as objectives of the project.  In light of the Watson PLC new club project, indicting sound leadership is critical in ensuring successful completion of the projects (Snyder, 2013). In this regard, the project manager of the Watson PLC new club project needs to demonstrate various leadership skills such as engaging all the stakeholders through the project life cycle. This can be possible through string collaboration skills. Besides, the project manager of the Watson PLC new club project needs to have good communication skills in order to ensure effective passage of information to all the stakeholders regarding the welfare of the project.  As regards to the aspect of motivation, the project manager of the Watson PLC new club project needs to ensure that the team members are motivated throughout the project life cycle. Through applying the Herzberg’s two factors theory of motivation the project manager can be able to identify both intrinsic as well as extrinsic forms of motivation.  For instance, the project manager of Watson project can use recognition as a form of motivation, where he can recognise and acknowledge performing employees throughout the project. The figure below depicts the Herzberg’s two factors theory of motivation.

Figure 9: Herzberg’s two factors theory of motivation

Source: Richardson (2014)

4.0 Conclusion

In conclusion, it is deducible that there are various activities that are involved in the completion of the Watson PLC new club project. These activities include project feasibility study, project scope management, project time management, project team structuring, project budget and cost control, and project quality control.  When conducting these activities it has been established from this report that there is a considerable need for the project manager of the Watson PLC new club project to have a wide range of skills in order to complete the project successfully. Some of these skills include feasibility study skills, research skills, forecasting skills, analytical skills, time management skills, collaboration skills, communication skills, and motivation skills. Through such the Watson PLC new club project will be completed successfully within the set time frame.

 

 

References

Burke, R. (2013) Project Management: Planning and Control Techniques  (5th Ed). Chichester: John Wiley & Sons.

Dimgba, C & Achumba, C. (2010) A perspective on project and programme management. Sydney: FIG Congress.

Hans, S. (2010) Project Management for Building Construction. Springer Berlin Heidelberg.

John, N. and Herman, S. (2012) Project management for engineering business and technology. London: Routledge.

Larson, E. W., & Gray, C. F. (2011) Project management: The managerial process. United Kingdom: Cengage Learning Higher Education.

Laufer, A. (2012) Mastering the leadership role in project management: Practices that deliver remarkable results. Upper Saddle River, N.J: FT Press.

Machac, J., & Steiner, F. (2014) ‘Risk management in early product lifecycle phases’, International Review of Management and Business Research, 3(2), pp. 1151-1162.

Pinto, J. K. (2013) Project Management Achieving Competitive Advantage. Harlow: Pearson Education.

Pinto, J. K. (2012) Project Management Achieving Competitive Advantage. Harlow: Pearson Education.

Richardson, G. (2014) Project Management Theory and Practice. 2nd Ed. US, Auerbach Publications.

Schwalbe, K. (2009) An Introduction to Project Management (2nd Ed). Boston: Cengage Learning.

Snyder, C. (2013) A project manager’s book of forms: A companion to the PMBOK guide, fifth edition. Hoboken, N.J: Wiley.

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Managing projects

Managing projects

Task 1

Q1: Types of projects

According to Hans (2010), the main types of projects are change driven, market driven, as well as crisis driven, As regards to change driven projects, they are typically created for the purpose of being in line with the current environment. For instance, an IT firm such as Microsoft always come up with new software for the aim of being in line with the latest technology in the industry. As regards to market driven projects, Lundy and Morin, (2013) have espoused that they are usually undertaken in response to the needs of the markets through production of new products for the purpose of satisfying the indentified needs.  For instance, Apple always develops products such as iPhones continuously for the aim of meeting the market needs. Lastly, when it comes to crisis driven projects, they are usually created to solve particular needs urgently. For instance, a company such as Samsung may respond quickly to defective phones through organising a project to manage their recalls.

Q2: Project scope management

Project scope management as described by Hans (2010) entails ensuring that a particular project includes all the activities needed to complete the project successfully. As asserted by Snyder (2013), when developing a scope plan, there is a considerable need for the project manager to consider including the project goals and objectives, time, activities, cost, as well as quality measures.  Besides, it is of paramount importance to use the Work Breakdown Structure, which is useful in subdividing project tasks into small units that are manageable.

 

 

 

Q3: Gantt chart

According to Burke (2013), a critical path refers to the longest sequence of project activities that should be finished on time for the purpose of completing the project within the stipulated time frame.  Taking this into account, the critical path in this case is presented by a—c—f—d—h. Therefore, the project duration is 22 days.

In project management, Gantt chart is particularly useful in tracking as well as controlling project activities. This is due to the fact that it provides visual timeline in regards to the start as well as completion of specific tasks.

Q4: How to decide whether a project is successful

According to Schwalbe (2009), successful projects are typically characterised by clear project deliverables. Additionally, for projects to be termed as successful, they must have clear cost, time, and quality objectives. As espoused by Pinto (2013), successful projects are usually completed on time, and within the stipulated budget.  Besides, successful projects have to meet the specifications as well as requirements of the customers. Dimgba and Achumba (2010) have also confirmed that successful projects are normally characterised by the desire of the customer to come back again.

Q5: Project change management

According to Pinto (2013), project change management is critical in project management. Taking this into consideration, Burke (2013) has argued that project managers need to be always ready to make a wide range if changes across the project life cycle. Nonetheless, before any project change take place, Schwalbe (2009) has indicated that is fundamental for the project manager to forecast the internal and external changes in the project. This should be followed closed by the identification of guidelines as well as minimum changes acceptable. In ideal situations, the project manager should have laid procedures of submitting, evaluating, as well as approving changes to the project. As asserted by Snyder (2013), it is also vital for the project manager to review the change requests with various members of the project team. Communicating to all the involved stakeholders is also fundamental after approving or rejecting changes in the project.

Q6: Project quality management

Dimgba and Achumba, C. (2010) elucidate that project quality management entails ensuring that a particular project meets the intended expectations. The components of project quality management include project planning, project control, as well as quality assurance. Quality planning involves the identification of project quality standards together with ways of satisfying them. Quality assurance involves evaluating the quality of the project regularly in order to give confidence about satisfaction of the quality standards. Lastly, when it comes to quality control, it entails employing various control measures such as observations in order to ensure that the expected quality of the project is achieved.

 

 

References

Burke, R. (2013) Project Management, Planning and Control Techniques. John Wiley and Sons.

Dimgba, C & Achumba, C. (2010) A perspective on project and programme management. Sydney: FIG Congress.

Hans, S. (2010) Project Management for Building Construction. Springer Berlin Heidelberg.

John, N. and Herman, S. (2012) Project management for engineering business and technology. London: Routledge.

Larson, E. W., & Gray, C. F. (2011) Project management: The managerial process. United Kingdom: Cengage Learning Higher Education.

Lundy, V. & Morin, P. (2013) ‘Project Leadership Influences Resistance to Change: The Case of the Canadian Public Service’, Project Management Journal, 44(4), pp. 45-64.

Pinto, J. K. (2013) Project Management: Achieving Competitive Advantage.Harlow: Pearson Education.

Schwalbe, K. (2009) An Introduction to Project Management. 2ndEd. Boston: CengageLearning.

Snyder, C. (2013) A project manager’s book of forms: A companion to the PMBOK guide, fifth edition. Hoboken, N.J: Wiley.

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Strategic Analysis of Greggs

Strategic Analysis of Greggs

Executive summary

This report has focused on the competitive analysis of Greggs in the fast-food industry in the United Kingdom. From the analysis, various strengths, weaknesses, opportunities, and threats surrounding the company can be derived. The main strengths include brand image, effective human resource management, and effective quality control. The main weakness is that the firm have some unpopular brands. When it comes to opportunities, the main ones stable UK government, robust UK economy, and high demand for fast-food. Lastly, the main threats include VAT of 16 percent, threat of substitutes, and strict legal requirements. From the BCG analysis, it has been noted that Greggs has category in all the four quadrants. Therefore, this report has recommended heavy investment for the cash cows, stars and question marks. For the dogs, this report has recommended the company to stop offering them to the consumers. These will see the company move to remarkable heights in the near future.

 

 

Table of content

1.0 Introduction. 4

2.0 External environment analysis of Greggs. 4

2.1 PESTEL analysis. 4

2.1.1 Political aspect 5

2.1.2 Economic aspect 5

2.1.3 Social aspect 6

2.1.4 Technological aspect 6

2.1.5 Environmental aspect 7

2.1.6 Legal aspect 7

2.2 Porter’s five forces analysis. 7

2.2.1 The bargaining power of consumers. 8

2.2.2 The bargaining power of suppliers. 8

2.2.3 The threat of new entrants. 8

2.2.4 Threat of substitutes. 9

2.2.5 Competitive rivalry. 9

3.0 Internal environment analysis of Greggs. 9

3.1 Value chain analysis. 9

3.1.1 Primary activities. 10

3.1.2 Support activities. 11

3.2 Resource based view.. 11

4.0 BCG Matrix Analysis of Greggs. 12

5.0 Conclusion. 14

6.0 Recommendations. 14

Appendix 1: Gregg’s background. 18

 

 

 

 

1.0 Introduction

The fast-food industry in the United Kingdom has performed relatively well over the last couple of years (Dey, 2016). This has to a considerable extent been fuelled by the increased economic growth in the country, which has increased the purchasing power of the consumer. Although many consumers have opted for more expensive restaurants over this period, the consumption of on-the-go food has remained high. This has largely been attributed by the convenience that comes with fast food. With the industry hitting close to 2.5 billion annually, the industry has had many players including Greggs, Macdonald’s, Pizza Hut, KFC, and Burger Kings among others. This report seeks to evaluate the competitive advantage of Greggs (Background of Greggs is attached in appendix 1). The first part looks at the internal and external environment surrounding the company. The second part uses BCG matrix to analyse the position of the company in the industry. The last part of this paper offers reconditions on how Greggs can improve its market share in the industry.

2.0 External environment analysis of Greggs

2.1 PESTEL analysis

PESTEL analysis model is a marketing tool that helps in analysing the environmental factors affecting a given industry (Piercy, 2009). As depicted in the figure below, this framework analyses the political, economic, social, technological, environmental, and legal aspects surrounding an industry.

Figure 1: PESTEL framework

Source: Piercy (2009)

2.1.1 Political aspect

The political aspect in the United Kingdom has significantly influenced the fast-food industry in the country. Firstly, the government of the United Kingdom is stable, and therefore, this has formed an ideal platform for firms to conduct their business successfully. Nonetheless, the recent pulling out of the European Union by the UK has left British business in a huge flux, with many firms in the industry such as Burger King, MacDonald’s, and Greggs revealing collapsed deals as well as job cuts (Lang & Heasman, 2015). This is likely to affect the profitability of the business. The 16 percent VAT has also reduced the purchasing power of the consumer, thus resulting to reduced sales (Lang & Heasman, 2015).

2.1.2 Economic aspect

In spite of the 2008 financial crisis which to a considerable extent crippled the fast food industry in the United Kingdom, the country has now been on its feet again (As depicted in the figure 2 below). In light of this, over the last few years, fast-food spending among most consumers in the United Kingdom is increasing at a significant rate owing to convenience as well as low-cost. Besides, with the UK economy regaining normalcy, interest rates and inflation rates have decreased. Consequently, the purchasing power of the consumers has increases, this boosting the fast-food industry in the country.

Figure 2: UK economic growth

Source: Bussière et al. (2015)

2.1.3 Social aspect

Over the last year, there has been increased awareness regarding healthy lifestyles, which has substantially pressured most of the fast-food firms to offer healthier food in their menus. This has included offering low-calorie foods alongside burgers (Dey, 2016). This as a result has increased operational costs of these firms remarkably thus reducing the overall profit margins. Additionally, following increased childhood obesity which has been perceived to be attributed by fast-food, many people have now refrained from easting from these outlets, which has resulted to decreased sales.

2.1.4 Technological aspect

With increase in consumer familiarity with technological advancements, most of the firms in the fast-food industry in the United Kingdom are now using various channels such as social media platforms including Facebook and Twitter. This has been for the purpose of engaging with the customers as well as advertisements. Besides, as espoused by Stuckler and Nestle (2012), the use of digital displays by most of the firms in the industry has allowed outlets to change their menus to suit the time of the day (As seen the figure 3 below). Through this, it has become easier for the outlets to attract a lot of people thus increasing their sales considerably.

Figure 3: Digital display

Source: Stuckler and Nestle (2012)

2.1.5 Environmental aspect

Environmental lobbyists as well as governments are now pressuring firms in the fast food industry to become more ‘green’ (Ibisworld, 2016). Taking this into consideration, the increased environmental awareness among most of the consumers in the industry has provided firms in the industry with a substantial opportunity to position themselves as “green” for the aim of garnering customer loyalty. This has involved adoption of recyclable packaging. The environmental act of 1990 has also ensured that firms in the industry reduce their emissions.

2.1.6 Legal aspect

According to Wetherly and Otter (2014), firms operating in the fast-food industry in the United Kingdom have to comply with various regulations as well as legislation. These includes but not limited to opening hours, employment regulations as well as taxation. Precisely, firms in this industry are expected to pay employees a minimum of 6 pounds per hour. This has significantly increased operational costs, thus reducing profits margins. Besides, firms in the fast-food industry in the United Kingdom have to meet national food standards including the requirements set by the Food Standards Agency. Failure to adhere to these standards may results to heavy penalties.

2.2 Porter’s five forces analysis

Porter identifies five forces that are used in analysing the competitiveness of a particular industry. In this light, as seen in the figure 4 below, the five forces are the bargaining power of suppliers, bargaining power buyers, threat of new entrants, competitive rivalry, and threats of substitutes (Dobbs, 2014).

Figure 4: Porter’s five forces framework

Source: Dobbs (2014)

2.2.1 The bargaining power of consumers

The bargaining power of consumers in the fast-food industry in the United Kingdom is high. In view of this, there are many firms in the industry, offering a wide range of foods to the consumers. This implies that the consumers in this market can always switch from one firm to another. Furthermore, as elucidated by Dey (2016), the switching costs are negligible. This further makes the bargaining power of consumers in this industry significantly low.

2.2.2 The bargaining power of suppliers

According to Stuckler & Nestle (2012), in the fast-food industry in the United Kingdom, the bargaining power of suppliers is low. Specifically, the number of suppliers in the industry are too many, who supply a wide range of agricultural products such as chicken, beef, potatoes, sugar, flour, and vegetables among others. Some of the large suppliers in this industry include. Besides, most firms in the industry such as Greggs have formed contracts with the suppliers (Lang & Heasman, 2015). While this ensures constant supply of materials, it prevents the suppliers from increasing the prices of materials. This further reduces their bargaining power to a considerable extent.

2.2.3 The threat of new entrants

The threat of new entrants in the fast-food industry in the United Kingdom is low. Putting this into account, the industry has been dominated by large organisations such as Burger King, Pizza Hut, KFC, and Greggs (Ibisworld, 2016). These brands are valuable extremely and boast of strong customer loyalty as well as recognition. Therefore, new players usually struggle with the incumbent firms given that their brands are unknown. Besides, most of the large firms which dominate the industry enjoy economies of large scale, implying that they can always offer their food at relatively lower prices. This coupled with the initial capital as well as advertising costs make it hard for new firms to enter the industry.

2.2.4 Threat of substitutes

The threat of substitute in the fast-food industry in the United Kingdom is moderate. In light of this, readily available food can be purchased elsewhere through retail as well as foodservice. Besides, consumers can cook home cheaply (Lang & Heasman, 2015). Actually, with increased health awareness, most consumers are now opting to cook at home in order to stay healthy. Nonetheless, these alternatives do not usually offer the convenient given by the fast-food, and therefore people always find themselves on the go in regards to consuming fast-foods.

2.2.5 Competitive rivalry

Given the many players in the fast-food industry in the United Kingdom, competition in the industry is stiff (Ibisworld, 2016). The industry is dominated by both local as well as international firms. Some of the main players in the industry include Greggs, MacDonald’s, KFC Pizza Inn, Pizza Hut, Burger King, Little Chef, and Subway among other many firms (Stuckler & Nestle, 2012). In this regard, most of the firms in the industry are investing heavily in their production as well as service processes for the purpose of undercutting their competitors. Besides, branding has become the most common weapon for competing.

3.0 Internal environment analysis of Greggs

3.1 Value chain analysis

Value chain analysis is a framework that helps in analysing the most valuable activities of an organisation Mathur and Kenyon (2008). As show in the figure below, these activities are classified as either primary activities or support activities.

Figure 5: Value chain analysis model

Source: Mathur and Kenyon (2008)

3.1.1 Primary activities

At the heart of inbound logistics, Greggs has to a considerable extent synchronised its scheduling and inventory control with its suppliers in order to create value continuously to its products. Through the use Just in time (JIT), Greggs has ensured that there are enough materials in all its outlets across the country (Greggs, 2016). Besides, Greggs has formed long term contracts with its main suppliers including Maldon Crystal Salt Co, British Sugar Limited, and Flour Distributors (UK) Limited. This has further ensured that that there is continuous flow of operations in the company. In regards to operations, Greggs is committed to ensure that all operations are run smoothly. Given that the company own and runs its own outlets, tit controls everything that goes in the food prepared. Besides, the quality manager is usually dedicated to ensure that the foods prepared in the outlets meet the needs as well as expectations of the consumers. Besides, the company has introduced electronic points of sale (EPoS), which has made it possible to integrate its data to the WFM solutions. This as a result has allowed more focused reporting as well as ability to target exceptions. As regards to outbound logistics, all the activities involving storing and distribution of the cooked food is typically done effectively and with little delay. Precisely, customers in the outlets usually spend little time due to the electronic ordering and tracking system employed by the company (Greggs, 2016). As regards to marketing, Greggs is usually dedicated to ensure that marketing research is conducted effectively for the purpose of identifying market segments. Besides, in the era of advanced technology, Greggs has leveraged on digital boards, where it advertises its current menus to the potential customers. Gregg has also made use of social media platforms such as Twitter and Facebook in marketing its products. This has seen the company attract many customers across and beyond the United Kingdom.

3.1.2 Support activities

Greggs has various secondary activities that have helped in creating value for its products and the company at large. Firstly, the department of procurement of Greggs, headed by chief procurement officer has ensured that the company received enough and quality raw materials on time (Lindsay, 2016). This has been facilitated by the use of Just in Time (JIT) technology, which ensures that there are enough raw materials needed by the company. When it comes to the firm infrastructure, Greggs boasts itself of state of art infrastructure, which is modified to accommodate all the operations of the company. In relation to human resource management, Greggs is highly devoted to selecting and recruiting talented employees for the aim of enhancing productivity. With over 19,800 employees across the United Kingdom, Greggs has been able to ensure that the needs of the customers are satisfied to a considerable extent (Greggs, 2016). Besides, owing to the rapid changes in the market, Greggs has put into place various employees training and development programs for the sole aim of ensuring that the employees remain productive throughout. Some of these programs include seminars, group discussions, workshops, on-job training, as well as overseas training.

3.2 Resource based view

According to Piercy (2009), resource-based view is one of the most used models that help an organisation I achieving a competitive edge in a given industry. Taking this into account, the resource-based view model usually views organisational resources as superior when it comes to organisational performance. This model depicts that resources in an organisation play a critical role in enabling the organisation to have a sustainable competitive advantage. These resources are categorised as either tangible or intangible.

As regards to intangible resources, Greggs has invested heavily on providing a wide portfolio of products, which include Spicy One, Steak and Cheese Roll, Corned Beef Pasty, and Cheese and Onion Pasty. This implies that the consumers are usually provided with a wide range of options to choose from. As regards to intangible resources, Greggs has a strong financial capability, which make it easier for the company to execute its operations effectively. Brand image is another key intangible resource of the company. On this, Gregg has over the years built its name across the United Kingdom, and it is now recognised as one of the firms that provides high quality products to the consumers at affordable prices (Greggs, 2016). Over the years, Greggs has also invested heavily in R&D in order to ensure that it meets the ever changing tastes and preferences of the consumers in the country. The resources of Greggs exhibit VRIO attributes, making the company to have a sustainable competitive edge in the industry (Lindsay, 2016). The VRIO framework is as illustrated in the figure below.

Figure 6: VRIO framework of Greggs

Source: Author’s summary

4.0 BCG Matrix Analysis of Greggs

As asserted by Mathur and Kenyon (2008), the BCG matrix is usually designed to help organisations with long-term strategic planning. Taking this into account, the BCG matrix typically help firms in considering growth opportunities through reviewing its portfolio of products in order to decide where to invest more, develop products, or discontinue. As depicted in the figure below, the BCG matrix is divided into four quadrants that are derived on the market growth as well as relative market share. These as depicted in the figure below are dogs, question marks, stars, and cash cows.

Figure 7: BCG framework

Source: Mathur and Kenyon (2008)

Dogs are usually products with low market share or low growth. Despite the fact that dogs may generate enough cash to break-even, this is usually rare. Therefore, in most cases, there are not worth investing in, and they are usually closed or sold I most instances. In regards to question marks, they are products that are in high growth markets having low market share. While these products usually have a substantial potential to grow, they typically require heavy investments in order to their market share at the expense of other large competitors in the industry. When it comes to stars, they are products in high growth markets, having high market share. In most situations, these products usually need heavy investment for the purpose of sustaining growth. Lastly, in relation to cash cows, they are products in low growth markers but with high market share. Ideally, cash cows are mature and successful products, and therefore, there usually require little need for investment. However, as elucidated by Herberberg and Rieple (2008), these products need to be managed continuously for the aim of ensuring continued profits.

When it comes to Greggs, the product growth of its main products is considerably low. Putting this into consideration, the current market position of Gregg’s business can be considered to be cash cow particularly when it comes to its main products including the Spicy One, Steak and Cheese Roll, Corned Beef Pasty, and Cheese and Onion Pasty among other main products (Greggs, 2016).

5.0 Conclusion

Conclusively, it is deducible that Greggs is one of the most popular brands in the fast-food industry in the United Kingdom. From the analysis, various strengths, weaknesses, opportunities, and threats surrounding the company can be derived. The main strengths include brand image, effective human resource management, and effective quality control. The main weakness is that the firm have some unpopular brands. When it comes to opportunities, the main ones stable UK government, robust UK economy, and high demand for fast-food. Lastly, the main threats include VAT of 16 percent, threat of substitutes, and strict legal requirements. From the BCG analysis, it has been noted that the current market position of Gregg’s business can be considered to be cash cow especially for main products including the Spicy One, Steak and Cheese Roll, and Corned Beef Pasty. This is due to the fact that the product growth of these products is considerably low.

6.0 Recommendations

Despite the fact that Greggs offers a wide range of products to the consumers, there is a significant need for the company to focus on improving these products. In light of the BCG matrix above, it can be deduced that the noted that the current market position of Gregg’s business can be considered to be cash cow.  Therefore, Greggs should consider managing these products in order to continue reaping the profits. This can be possible through improving on their quality in order to maintain customer loyalty. Besides, Greggs need to invest heavily on these products in order to sustain growth. This can be through continuously advertisements as well as other sales promotions methods. Moreover, the company can also differentiate these products given that most consumers in the UK usually crave to have differentiated products. Therefore, through differentiating its products in terms of taste, shape, and size among other factors, Greggs can be able to earn customer loyalty through these products. Through these measures, Greggs will be able to increase its market share considerable in the fast-food industry in UK.

 

 

 

References

Bussière, M., Imbs, J., Kollmann, R., & Rancière, R. (2015) ‘The Financial Crisis: Lessons for International Macroeconomics’, Journal for financial Crisis, 14(3), pp. 89-95.

Counihan, C., & Van Esterik, P. (2012) Food and culture: A reader. Routledge.

Dey, K. (2016) The fast food industry in the UK. Analysis of McDonalds with PESTEL, VRIN and Porter’s Five Forces.

Dobbs M. (2014) ‘Guidelines for applying Porter’s five forces framework: a set of industry analysis templates’, Competitiveness Review, 24(1), pp.32-45.

Fitzroy, T., Hulbert, J. and Ghobadian, A. (2011) Strategic Management: The Challenge of Creating Value. Hoboken: Taylor & Francis.

Greggs. (2016) About Greggs. Available at: https://www.greggs.co.uk/about (accessed 20th Dec 2016).

Greggs (2016) Greggs at a glance. Available at: http://corporate.greggs.co.uk/greggs-at-a-glance (accessed 20th Dec 2016).

Herberberg, A. and Rieple, A. (2008) Strategic management: theory and application. London: Oxford University Press.

Ibisworld. (2016) Takeaway & Fast-Food Restaurants in the UK: Market Research Report. Retrieved from: http://www.ibisworld.co.uk/market-research/takeaway-fast-food-restaurants.html.

Lang, T., & Heasman, M. (2015) Food wars: The global battle for mouths, minds and markets. Routledge.

Lindsay, D. (2016) Finally. Greggs pasties and savouries ranked from worst to best – but the results are controversial. Retrieved from: http://metro.co.uk/2016/01/17/finally-greggs-pasties-and-savouries-ranked-from-worst-to-best-but-the-results-are-controversial-5628048/

Mathur, S. and Kenyon, A. (2008) Creating Valuable Business Strategies. Amsterdam: Elsevier/Butterworth-Heinemann.

Moutinho, L. and Southern, G. (2010) Strategic marketing management: A business process approach. Hampshire, U.K.: Cengage Learning EMEA.

Narvaez, L. and Brimijoin, K. (2010) Differentiation at work, K-5: principles, lessons, and strategies. Thousand Oaks: Calif Corwin.

Piercy, N. (2009) Market-led Strategic Change: Transforming the Process of Going to Market. Amsterdam: Elsevier/Butterworth-Heinemann.

Stuckler, D., & Nestle, M. (2012) Big food, food systems, and global health. PLoS Med9(6), e1001242.

Wetherly, P., & Otter, D. (2014) The business environment: Themes and issues in a globalizing world.

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Expansion of Travelodge to Chinese Market

Expansion of Travelodge to Chinese Market

Executive summary

This report has focused on expansion of Travelodge Hotel in Chinese hotel and hospitality market. From this, various strengths, weaknesses, opportunities and weaknesses surround the company.  The main strength of the hotel is that it offers its services at lower rates than most of the firms in the industry. The main weakness of the hotel is that it does not give a wide range of services given that it is a budget hotel. When it comes to opportunities, the main one is that there is increasing demand for hotel and hospitality services especially in the United Kingdom.  Lastly, when it comes to threat, the main one is that there is increased competition in the hotel industry due to existence of many firms such as Marriot and Hilton. In China, this report has found out that Travelodge needs to use the differentiation strategy and market development strategy. As regards to the differentiation strategy, this report has established that Travelodge should consider making its products unique such as through iPads app to book for the hotel. As regards to market development strategy, this report has established that Travelodge should consider enhancing the market mix in relation to product, price, promotion and place. Through such, Travelodge will be able to have a competitive edge in the hotel industry in China.

 

Table of content

1.0 Introduction. 1

2.0 Background of Travelodge Hotel 1

4.0 SWOT analysis of Travelodge Hotel 2

5.0 Global hospitality markets. 3

6.0 Expansion of Travelodge in China. 3

6.1 PEST analysis of hotel and hospitality industry in China. 3

6.1.1 Political aspect 3

6.1.2 Economic aspect 4

6.1.3 Social aspect 5

6.1.4 Technological aspect 5

6.2 Porter’s 5 forces analysis of hotel and hospitality industry in China. 6

6.2.1 The bargaining power of consumers. 6

6.2.2 The bargaining power of suppliers. 6

6.2.3 Competitive rivalry. 6

6.2.4 Threat of substitutes. 6

6.2.5 Threat of new entrants. 7

7.0 Market growth strategy for Travelodge Hotel 7

7.1 Porter’s three generic strategy. 7

7.2 Ansoff model 8

8.0 Implementation of the strategy and moving forward. 9

8.1 Implement of differentiation strategy. 10

8.2 Implement of market development strategy. 10

9.0 Conclusion. 11

References. 13

Appendix: SWOT Analysis. 15

 

 

 

1.0 Introduction

With increased globalisation as well as internationalisation over the last couple of years, travelling has become a norm in many countries across the world. This has further been fuelled by improvement of transport and communication networks, which have made it possible for people to move easily from one location to another (Tuţă & Micu, 2014). With these factors into place, the hotel and hospitality industry has witnessed a tremendous growth over the last one decade.  According to Transparency Market Research (2015), despite the stagnant growth as well as emerging health and safety concerns, it has come as a surprised by the continuous growth of the industry.  In fact as found out by Khanna and Palepu (2013), travel and tourism is the fastest growing industry in the world. In this light, many hotels such as Marriot, Hilton, Intercontinental, and Accor have considered expanding to other countries particularly to the emerging markets including China, India, and Russia. This has solely been for the purpose of increasing customer base in order t maximise profits.  Taking this into consideration, this report seeks to establish expansion of Travelodge Hotel to China. The report looks at the business environment of the hotel and hospitality industry in China. The report also explores the best strategies that Travelodge should adopt for the purpose of gaining a competitive edge in the hotel and hospitality industry in China.

2.0 Background of Travelodge Hotel

Established in 1985, Travelodge Hotels Limited is one of the companies in the hotel and hospitality industry in the United Kingdom. The company is headquartered in Thame, United Kingdom. While the company operates across the United Kingdom, it also operates in Ireland as well as Spain. Precisely, the company has more than 500 hotels in UK, 11 hotels in Ireland, and 5 hotels in Spain (Tuţă and Micu, 2014). According to Khanna and Palepu (2013), Travelodge is the second largest budget hotel in the United Kingdom. Besides, it is considered as the third largest hotel chain in the United Kingdom as regards to the number of rooms it has (32600).  Despite the fact that the hotel has operated successfully in the United Kingdom, Ireland, and Spain, it has not expanded to any emerging markets such as China and India.

3.0 SWOT analysis of Travelodge Hotel

Just like any other ideal organisation operating in the United Kingdom, Travelodge has its strengths, weaknesses, opportunities and threats.

Strengths

·         The Business Account Card of the hotel appeals to most business travellers given that it offers convenient as well as quick booking (Transparency Market Research, 2015)

·         Travelodge is committed in its sustainability campaign thus giving it a competitive edge (Erbakanova, 2016)

·         The company employees JIT system to ensure that raw materials needed are supplied in time, and in the right quantity (Transparency Market Research, 2015)

Weaknesses

·         Given that it is a budget hotel, Travelodge does not have a wide range of services as other hotels in the industry (Erbakanova, 2016)

·         Travelodge is not ideal for families or large parties where it demands more space and rooms (Transparency Market Research, 2015)

·         The company has not leveraged on social media marketing (Erbakanova, 2016)

 

Opportunities

·         There is growing demand for hotel services in the UK market (Tuţă & Micu, 2014)

·         There has been increase in upper class citizens in the United Kingdom, thus boosting the hotel industry (Eugenia et al., 2013)

Threats

·         There is stiff competition in the hotel industry in UK due to many firms such as Marriot, Intercontinental, and Hilton (Eugenia et al., 2013)

·         Various legal requirements have considerably affected operations of the hotel such as the  Food Standards Agency (FSA) (Tuţă & Micu, 2014)

 

 

4.0 Global hospitality markets

As aforementioned, the global hospitality market has shown an upward trend over the last couple of years.  Currently, the global hotel industry revenue currently stands at 550 billion US dollars. This is a significant increase from the 457 billion US dollars in 2011 (Transparency Market Research, 2015).  This implies that over the last five years, the hotel industry have recorded an increase of close to 100 billion US dollars. As asserted by Tuţă and Micu (2014), Europe as well as Asia Pacific has continued to be key regions when it comes to the hotel and hospitality industry with the highest hotel occupancy rates being close to 70 percent.  Across the global hotel and hospitality industry, there is various key business, technological, as well as hotel marketing trends that have taken root over the last few years. These trends have ranged from the rise of the millennial travellers to the increased interest in the use of mobile devices as well as apps, which have enabled personalised guest services.  Additionally, increase in emerging markets such as China, India, and Russia have made it feasible for hotel companies to expand globally to these markets. With increase in these emerging markets, Transparency Market Research (2015) has predicted the global and hotel industry to grow two folds in the next one decade.

5.0 Expansion of Travelodge in China

Given that China is an emerging market, there is a huge potential for Travelodge to enter the Chinese market. This is due to the fact that that China has numerous opportunities in the hotel and hospitality industry. Therefore, through entering China, the hotel will increase its customer base to a considerable extent.

5.1 PEST analysis of hotel and hospitality industry in China

5.1.1 Political aspect

Political factors greatly impact hotel and hospitality industry given that they determine the number of visitors visiting a particular country. Taking the case of China into account, the country is stable politically, and there are no issues of unrest which would otherwise affect operation of businesses in the country. Besides, over the past few years, the Chinese government has been in the frontline in stabilising good relationships with various international communities (Gu et al., 2012). This has to a considerable extent enhanced the growth of the industry. However, corporate tax of 45 percent has significantly affected the hotel industry due to increased operational costs (In Alon, 2013).

5.1.2 Economic aspect

Prior to 2015, the Chinese economy was growing significantly over the years. However, the Chinese economy has recently struggled, facing a sharp stock market falls in late summer 2015 (Yueh, 2015). Nonetheless, the Chinese travellers have still been on the rise over this period with close to 84 million visitors per month. This has considerably favoured the industry due to increased sales.

5.1.3 Social aspect

While there are many social factors that affect the hotel and hospitality industry in China, one of the main one of the large population of the country. With over 1.368 billion people (Yuen, 2015), China offers a ready domestic market for firms in the hotel and hospitality industry. Additionally, with increase in the number of millennial travellers, China has been receiving a lot of visitors from various countries across the world (In Alon, 2013). Precisely, apart from the many domestic travel passengers, the number of visitors arriving China per year is about 80 million (Yuen, 2015). This as a result has increased the demand for hotels in the country, thus boosting the overall industry.

5.1.4 Technological aspect

Technological advancement in China has to a considerable extent impacted the hotel and hospitality industry. Considering this, it has now become possible for guest to book rooms through their mobile devices. This has result to saving of time, while improving the overall customer experience (Gu et al., 2012). Besides, with emergence of various social media platforms such as Facebook and Twitter, firms in the industry are leveraging on them for the aim of marketing their services.

5.2 Porter’s 5 forces analysis of hotel and hospitality industry in China

5.2.1 The bargaining power of consumers

The bargaining power of consumers in hotel and hospitality industry in China is significantly higher. This is due to the fact that there are various hotels in the country. This implies that consumers have a wide range of choose from. In light of this, price wars have dominated the industry as various firms to get a competitive edge in the industry (Dobbs, 2014). Besides, given that switching costs are significantly low, consumers can always switch from one firm to another depending on their needs as well as wants.

5.2.2 The bargaining power of suppliers

The bargaining power of suppliers in the hotel and hospitality industry in China is low (Gu et al., 2012). Precisely, there are many suppliers in the industry, who supply a wide range of products to hotels such as food stuff, beddings and furniture. Besides, as explained by Gu et al. (2012), most of the hotels in the country have formed contracts with the suppliers, which has further weakens their bargaining power given that they cannot increase the prices of commodity at their will.

5.2.3 Competitive rivalry

In the hotel and hospitality industry in China, the level of competitive rivalry is significantly high (Dobbs, 2014). Taking this into account, there are various firms in the industry, both local as well as international. Some of the most known hotels in the country include Marriot, Hilton, and Intercontinental. With such levels of rivalry, many hotels in the industry have come up with various ways meant to increase their customer bases.  This mostly has been through utilising new styles of design to superior facilities including spas and gyms. Nonetheless the larger chains of hotel in the country usually have a powerful competitive edge given they can use their higher revenues in promoting their firms.

5.2.4 Threat of substitutes

The threat of substitute in the hotel and hospitality industry in China is low. In regards to this, while the existence of substitutes in the industry may increase the chances of the consumers switching to alternatives, Gu et al. (2012) explain that the impact may be negligible. The substitutes in the industry include alternatives types of lodging such as family hotel, camping and informal visits to family and friends.  However, these substitutes usually do not provide the same utility as the hotels. This makes the threat of substitutes in this industry significantly low.

5.2.5 Threat of new entrants

The threat of new entrants in the hotels and hospitality industry in China can be termed as moderate. On one side, China as aforementioned has become a global business and tourism hub (In Alon, 2013).  This has implies that the demand for hotel services have increased significantly over the last few years. Therefore, it is easier for a firm to enter and establish itself in the industry especially with effective marketing strategies. Nonetheless, as found out by Gu et al. (2012), the initial costs of starting a hotel in China are significantly high, and thus it can push investors away. Besides, most of the firms in the industry have already established themselves, and have created customer loyalty. This means that it can be challenging to attract new customers given the high level of customer loyalty in the country.

6.0 Market growth strategy for Travelodge Hotel

6.1 Porter’s three generic strategy

According to Dibb et al. (2012), the relative position of a firm within a given industry typically determines whether the firm is above or below the industry average.  Taking this into consideration, the fundamental basis as regards to above average profitability in the long run is termed as the sustainable competitive advantage.  Michael Porter considered the selection of defendable position within a particular industry as the end outcome of a competitive strategic analysis. On this, he argued that successful as well as profitable companies usually choose to compete with either through low costs of differentiation (Hambrick & Fredrickson, 2014). Despite the fact that these two options are mutually exclusive, he added the third category, focus. The figure below depicts the three Porters generic strategies.

In cost leadership strategy, Gelder and Woodcock (2013) have explained that a firm usually sets out to come the low producer in the industry under which it operates.  According to Paley (2010), the sources of cost advantage are typically varied and dependent on the structure of a given industry.  However, the most common sources include economies of large scale, preferential access to raw materials, as well as proprietary technology.  Low cost producers typically exploit resources of cost advantage. As espoused by Lei and Slocum (2010), if a firm is able to achieve as well as sustain cost leadership it can be able to set lower prices, which give it a competitive edge in a given industry. When it comes to the differentiation strategy, a firm usually seeks to be unique in the industry in light of various dimensions that are widely valued by the buyers. On this, a firm typically select one or several attributes that the consumers in the industry perceive to be important. From this point, the firm positions itself uniquely for the purpose of meeting those needs. Through differentiation strategy, a firm is usually rewarded for its uniqueness with a premium price. Lastly, when it comes to the focus strategy, Lei and Slocum (2010) explain that it rests on purposing lowest cost of differentiated products to particular niche market. On this, firm embracing this strategy normally selects a segment in the industry for the aim of tailoring its strategy to serve the customers exclusively.

Taking into account the case of Travelodge Hotel, it has for a very long been using cost leadership strategy within its areas of operations. This explains why it is usually able to provide its services at lower prices.  Nonetheless, this strategy may not work effectively in China. As aforementioned, China has witnessed a significant rise in the number of middle-income earners. One of the main characteristic of this group of people is that they are usually ready to pay higher for premium services. Besides, most people who travel to China are mostly business people as well as tourists, who have a high purchasing power. Therefore the demand for differentiated products in the hotel and hospitality industry is significantly (In Alon, 2013). Taking this into account, the use of the differentiation strategy will to a considerable extent give Travelodge a competitive edge in the industry. This, as a result will see the hotel gain a significant market share in the industry.

6.2 Ansoff model

According to Dibb et al. (2012), Ansoff Matrix is one of the strategic planning tools which provides a framework that help organisations in devising strategies for future growth.  As shown in the figure below, Ansoff Matrix has four strategies; market development, diversification, market penetration, and product development.  While an organisation can use this model to grow, it can help the organisation in analysing the risks that are associated with each of the strategy.

Figure 1: Ansoff model

Source: Dibb et al. (2012)

As regards to market penetration strategy, an organisation typically tries to grow through the use of existing offerings in existing markets. Precisely, in the market penetration strategy, an organisation aims at increasing its market share in an existing market within existing, in most cases, market penetration strategy is achieved through selling more products to the already established customers or through attracting new customers within an existing market. Through aggressive promotion and distribution, it is usually possible to enhance this strategy. When it comes to the market development strategy, an organisation tries to expand into new markets using its existing products or services.  In most cases, these markets are usually foreign countries (Dibb et al., 2012).  According to Johnson et al. (2008), this strategy becomes successful when an organisation offers unique product technology that it can leverage in the new market. Besides, it can become successful where the buyers in the new marker are intrinsically profitable.  As regards to the product development strategy, a firm usually seeks to create new products as well as services targeted at its existing markets in order to achieve growth. Ideally, this typically involves extending the range of products available to the existing markets of the firm.  In most situations, these products are obtained through investment in research and development. However, they can still be obtained through acquisition of rights to produce products of other companies. Lastly, when it comes to diversification, a firm usually seeks to grow its market through introduction of new products in new markets. It therefore means that the strategy ideally involves both product as well as market development. This explains why this strategy is considered the most risky.  According to Lei and Slocum (2010), this strategy entails growing an organisation through starting or acquiring various businesses outside the current products and markets of the company.

In light of the above strategies, market development is the most rational strategy that Travelodge should adopt in China. This is because that through expanding to China, Travelodge will be venturing into new markets with existing products. Given that the hotel industry across many countries in the world can be considered homogenous (In Alon, 2013), through market development, Travelodge will be able to establish itself successfully in the hotel and hospitality industry in China. Besides, going with the fact that this strategy usually aims to venture in areas where the consumers are profitable, China will offer a profitable customer base for the hotel. This is due to the fact that China has ready market for firms in the hotel and hospitality industry, as aforementioned.  Therefore, in this strategy, Travelodge can extend its services that it offers in the United Kingdom to China. This as a result will see the company gain a remarkable market share in the industry.

7.0 Implementation of the strategy and moving forward

As seen from the above, the differentiation strategy as well as market development strategy are the most appropriate strategies that Travelodge should adopt in its expansion to China. Taking this into account, there is a considerable need to implement these strategies effectively for the aim of ensuring that the hotel flourishes in the new market.

7.1 Implement of differentiation strategy

As regards to differentiation strategy, given that the target markets in the hotel and hospitality industry in China are middle and high-income earners, Travelodge should consider providing unique products that meet the needs of these people. According to Gelder and Woodcock (2013), differentiation in the hotel industry can be achieved through various ways including product features, complementary services, personnel, location, technology, superior service, creative adverting as well as service innovations among other unlimited ways. Therefore, for Travelodge, leveraging on these ways can go a long way in ensuring that it offers unique services to the target markets.

Unlike most of the hotel in country, Travelodge can provide online check-in to the customers, where they can connect live with the staff of the hotel in checking in, booking spa reservations, as well as restaurants. This as a result can help in eliminating the cumbersome process of checking in, thus enhancing the overall customer experience.  Besides, unlike other hotels in China, Travelodge can provide iPad access to its customers with unique applications that can help them in connecting a love concierge through speakerphone technology. In attempt to differentiate its services from other forms in the hotel and hospitality industry, Travelodge can consider offering ultimate mobility, where it can allow the groups to conduct meeting on the go. On this, Travelodge can offer luxury vehicles such as Mercedes Benz or BMW, with a large capacity of about 8 passengers. The vehicles should then be equipped with screens, Wi-Fi connection, and electrical outlets. This as a result can go a long way in enhancing customer experience considerably. When it comes to food, the Travelodge should consider offering a wide range of cuisines from different countries across the world given than most visitors are usually from other countries. It is only through such that the hotel can be able to provide customised cuisines to the customers, thus increasing customer satisfaction. Through such, Travelodge can significantly have a competitive edge in the industry, which can see it move to remarkable heights.

7.2 Implement of market development strategy

When it comes to the implementation of the market development strategy, Travelodge should consider embracing the marketing mix for the purpose of understanding how to reposition itself in the hotel and hospitality industry in China. These take into account product, price, place, and promotion. In terms of product, Travelodge should consider offering products and services that meet the needs of the consumers. As noted before, it is a fact that most consumers in the hotel and hospitality industry are usually concerned with the level of service provided by the hotel. Therefore, for Travelodge, it should ensure that all aspects of the hotel are appealing to the consumers including the cleanliness of the rooms as well as the food served in the hotel. This will play a crucial part in attracting new clients. As regards to price, despite the fact that the target markets of the Travelodge Hotel are middle-income earners and high income earners, there is need for the hotel to offer its services deserve the prices charged. This as a result will make the customers the customers to have value for their money. When it comes to the aspect of place, Travelodge should consider establishing its hotels in areas that are convenient for customers. Specifically, Travelodge should establish itself in the cities that are heavily populated, and those that receive a lot of visitors. Some of these cities include Beijing, Shanghai, and Macau. In such cities, Travelodge can make its services available to its target consumers. This as a result can make it possible for the hotel to have a large customer base, thus increasing its sales as well as profitability. Lastly, as regards to promotion, Travelodge should invest heavily in a wide range of promotional methods. Given that China will be a new market, intensive marketing is crucial for the company to get customers. Taking this into account, Travelodge can advertise its services through television and radio. This can make it possible for many people to be reached. Besides, with the current error of various social media platforms, Travelodge can leverage on these platforms such as Facebook and Twitter to market its services in China. The use of social media platform can be effective given than most of the target consumers of the hotel are active on these platforms. While this method of sales promotion is cost effective, it can help the hotel in reaching potential customers both in China as well as other countries across the world.

8.0 Conclusion

Conclusively, Travelodge is one of the budget hotels in UK that offer various services across the country, as well as in Spain and Europe.  Various strengths, weaknesses, opportunities and weaknesses surround the company.  In this light, the main strength of the hotel is that it offers its services at lower rates than most of the firms in the industry. The main weakness of the hotel is that it does not give a wide range of services. The main opportunity is that there is increasing demand for hotel and hospitality services especially in the UK over the last few years.  Lastly, when it comes to threat, the main one is that there is increased competition in the hotel industry due to existence of many firms such as Hilton, Intercontinental, and Marriot among others.  In order to have a competitive edge in the hotel and hospitality industry in China, Travelodge needs to use the differentiation strategy and market development strategy.  When it comes to the differentiation strategy, this report has established that Travelodge should consider making its products unique such as through iPads app to book for the hotel.  In relation to the market development strategy, Travelodge should consider enhancing the market mix in relation to product, price, promotion and place.

 

 

 

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