Research Korner: Business Level Strategy

Retail Marketing

OBJECTIVES As a person with knowledge of retail marketing, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how retail marketing is thought up, formulated and then imparted down into the subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the retail marketing enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focused upon i.e. innovation and diversity. Innovation was discussed with regard to retail marketing where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.       EXECUTIVE BRIEF This essay utilized Sasa Cosmetics as the model organization to review its present retail marketing strategies and how they dealt with critical situations. From the analysis, key trends in the retail marketing strategies were then identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these retail marketing strategies with regard to its suitability to critical situations, during which the internal capabilities of these retail marketing strategies in relation to the strategy being followed was determined also. An overall analysis of the performance and effectiveness of the retail marketing strategies of Sasa Cosmetics was also conducted to assess and compare the capabilities of these retail marketing strategies with those of others. Gaps in the retail marketing strategies and environment were then identified. Finally, several choices of strategies to improve the retail marketing strategies of Sasa Cosmetics as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.       INTRODUCTION Retail marketing can be defined as the efficient and effective implementation of the retail policies and tasks necessary to satisfy a firm's customers. Retail marketing focuses on the careful management of the processes involved in the production and distribution of products and services (2000). More often than not, small companies don't really have the capabilities to implement effective retail marketing strategies. Instead, these companies engage in activities that various schools of management typically associate with retail marketing. These activities include the manufacturing of products, product development, production and distribution. However, retail marketing deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often related with retail marketing. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, retail marketing includes the analysis and management of internal processes. Sasa Cosmetics will be the model business entity that will be used in this research based on their history in retail marketing.   COMPANY OVERVIEW A. Company Mission / Corporate Objectives Sasa Cosmetics aims for sustainable growth as a broad market leader in the beauty and cosmetics industry as well as for segment leadership. In both cases, the beauty products of Sasa Cosmetics will play a crucial part. The company is able to establish its broad leadership usually by acquiring other strong cosmetics companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of Sasa Cosmetics. This practically results in economies of scale that is able to create a distribution network for both the local and international beauty products of the company. If a market is already in the control of other companies, Sasa Cosmetics devotes its attention towards the development of a premium segment with its various beauty products.             The mission of Sasa Cosmetics is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in attractive markets </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the beauty products industry market segments. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company’s efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions for as long as they are able to create shareholder value. </li> RETAIL MARKETING STRATEGY AND TACTICS In order to sustain its growth on the international level, Sasa Cosmetics builds its business on four (4) main retail marketing strategies. <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The first is building a strong local operating platform, and then testing it over time to determine if profitable growth would be possible through the selection of the right brands and creation of the structures fro distribution to supply a local national market. </li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The second is broadening the portfolio in order to make way for international brands to give access to those not supported by the local brands. Global perspectives are also gathered to help optimize both the local and global brands. By broadening the portfolio, Sasa Cosmetics is able to meet the consumer’s needs and minimize the costs of local infrastructures (Grönroos, 1994).</li> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The third positioning strategy involves a balanced portfolio of countries among established and developing markets. In this instance, the established markets will provide the funds to invest in developing markets that have lower GDPs but possess a tremendous potential for growth and development.</li> </ul> <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="color: black; text-align: justify; line-height: 200%"> The last strategy involves market consolidation which would help in the securing of positions and the creation of shareholder values. Sasa Cosmetics strives to be in the top position on each market.</li> </ul> Loyalty = Understanding Customer Value and Needs Gone are the days when employees work on their desks for eight hours a day. Today’s employees want to become as productive as possible while in their offices and interact with different individuals and groups in different settings. The technological advancement in wireless technologies has allowed workers and employees to access communication tools in new settings. Because of this rigorous and hectic schedule of employees, it became imperative for them to indulge in simple yet affordable beauty products and other cosmetics to help them maintain their beauty in spite of the pressure of every day’s work.   Loyalty = Understanding Customer Wants A. Convenience Sasa Cosmetics’ dedication to quality for almost three generations now has led to the satisfaction of millions and millions of its customers worldwide. Sasa Cosmetics’ beauty products were created by a group of people who pursued the best quality and craftsmanship. The beauty products of Sasa Cosmetics that its customers use today are still being manufactured using nothing but the original and unparalleled raw materials discovered three generations ago. Their natural ingredients and bright colors are obtained by using only the purest ingredients. B. Health The raw materials used in the production of Sasa Cosmetics beauty products are able to meet the high quality standards and specifications. The packaging materials where Sasa Cosmetics beauty products are sold are also being subjected to strict quality standards. In line to Sasa Cosmetics’ policies in product safety, appropriate measures are taken in the manufacturing of Sasa Cosmetics beauty brands to prevent the possible contamination of the products. Sasa Cosmetics manufacturing plants implement the principles of the HACCP (Hazard Analysis and Critical Control Points) system as a testament to their dedication to quality. C. Product Innovation Sasa Cosmetics bases its pricing strategies on several key trends that continuously shape the global marketplace of cosmetics. One particular trend is labeled as “premium-tization” (1981). This phenomenon causes the polarization of different markets. This would then trigger the consumers to demand and pay much higher prices for perceived quality. However, discounting in prices is also simultaneously taking place, therefore squeezing out the middle range. More often than not, supermarkets undergo internationalization which leads to a tighter squeeze for shelf space. STRATEGIC OPTIONS Deriving from the analysis between the industry, retail marketing and capabilities of the company involved, many strategic options would become imperative. It is therefore essential to evaluate these strategic options as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders. A. Business Level Strategy There is definitely a need to reconcile both the inside-out and outside-in capabilities. While Sasa Cosmetics’ retail marketing strategies involve focusing on their core competencies with market position following its resource base, the company will be put into a disadvantageous position should they choose to neglect both the macro as well as the cosmetics industry environment. Therefore, Sasa Cosmetics has to be aware of the latest retail marketing changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring. The advantages enjoyed by Sasa Cosmetics may come in the form of increased revenues. Knowing what the market demands and the latest trends could help the company fully exploit its research and development capabilities to come out with beauty products which are not only cost-effective but also high in quality. The strategic option can even be used as a retail marketing tool where the focus is on staying close to their customers and listening to their feedbacks. On the flip side of the coin, there will be a huge mobilization of resources involved, and the associated risks bestowed on Sasa Cosmetics. Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. The key stakeholders too should not have any objections so long as Sasa Cosmetics’ core business is not threatened. By virtue of the company’s centralized control of its business, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of operations. Understanding the strategic importance of retail marketing and management is something that Sasa Cosmetics has to be familiar with. This company normally practices a centralized and globally scaled configuration of operations and capabilities. This allows information dissemination to be retained.   B. Network Level Strategy There are various strategic options available for Sasa Cosmetics. These are enumerated as follows: ·         Tie up with various local cosmetics companies ·         Collaborate with major competitors ·         Alliances with leading raw materials suppliers RECOMMENDATIONS A tie-up or merger with various local cosmetics companies offers tremendous benefits in terms of access to their retail marketing policies, infrastructure and even their resources. However, Sasa Cosmetics must not lose sight of its core competencies while pursuing these tie-ups. Otherwise, the image of this company might be put in jeopardy. Meanwhile, the collaboration of Sasa Cosmetics with its major competitors can be seen as a ridiculous move at first.  However, upon close examination, this move could pave the way for this company to improve even more its retail marketing strategies. The bottom line is both sides would be able significantly gain in such an alliance. Sasa Cosmetics’ strengths in beauty products development combined with the retail marketing strategies of their competitors can transform them suddenly into an unbeatable force to reckon with ( 1998). One possible setback, however, is the differences in the cultures of the companies involved. Another possible setback could be whether any of Sasa Cosmetics’ competitors has the need to form alliances. The third option also focuses on alliances, but this time with either one of the suppliers specializing in beauty products and other raw materials. The benefits of these alliances should outweigh the costs in the long run. In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether Sasa Cosmetics could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. This company has traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company’s values and culture as well as the resources. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, Sasa Cosmetics will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options. RECOMMENDED RELATIONSHIP MARKETING STRATEGIES Sasa Cosmetics can integrate the implementation of the subscription business model as part of its relationship marketing strategies towards their clients and customers. The subscription business model has been widely used by most fashion and cosmetics companies, but the application of this model has started to spread up to this time. Instead of selling the cosmetics directly, Sasa Cosmetics can engage in a process of selling their monthly or yearly access to a particular cosmetic. As a result, the company will be able to convert a one-time sale of a cosmetic into a recurring sale of a service. Effect on Sasa Cosmetics Sasa Cosmetics will surely benefit because of the fact that they are guaranteed of a constant revenue stream. This will significantly reduce the uncertainty and the risk-taking of Sasa Cosmetics. Also, most of the time, the subscription pricing structure is carefully designed in order to make sure that the revenue stream from the recurring subscriptions could be significantly higher than the revenue coming from simple one-time purchases. In most subscription schemes, it also induces the increase of the company’s sales through disallowing the subscriber’s option to either accept or reject any specific product. This triggers the reduction of customer acquisition costs, and allows the implementation of a personalized marketing or database marketing. However, subscription business models also have their disadvantages. Sasa Cosmetics needs to invest to a large infrastructure in order to help in the management and monitoring of subscriptions. Effect on Sasa Cosmetics Customers Sasa Cosmetics consumers can also benefit greatly from this business model. If they will be able to buy Sasa Cosmetics products regularly, then they will significantly benefit from the convenience. However, since they will only have to make one particular cosmetic purchase decision, then they will just simply have to wait for the cosmetic to arrive. This model will be of great help for those consumers who are in search for structure and constancy in their hectic lives.     CONCLUSION The results of the analysis carried out on the retail marketing strategies of Sasa Cosmetics indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the retail marketing strategies of Sasa Cosmetics could still be expected to improve faster than average. The review of the company’s retail marketing capabilities and resources revealed very little inconsistencies regarding their overall strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for the company. The analysis among the industry environment as well as the retail marketing capabilities of Sasa Cosmetics revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of the company. Also, Sasa Cosmetics has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.

Retail Marketing

OBJECTIVES As a person with knowledge of retail marketing, the author has always brought up to his superiors the viability of strategy ...

Advanced Marketing Strategy

OBJECTIVES As a person with knowledge of advanced marketing strategy, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it. By delving into this project paper, the author intends to have better insights into how advanced marketing strategy is thought up, formulated and then imparted down into the subsidiaries of the company or organization. The author hopes to have an in-depth understanding as to how the advanced marketing strategy enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense. In order to reinforce the learning objectives, two key focal issues were focused upon, i.e. innovation and diversity. Innovation was discussed with regard to advanced marketing strategy where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.     EXECUTIVE BRIEF This essay utilized Palm, Inc. as the model organization to review its present advanced marketing strategy and how they dealt with critical situations. From the analysis, key trends in the advanced marketing strategy were then identified, how it worked and its effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these advanced marketing strategies with regard to their suitability to critical situations, during which the internal capabilities of these advanced marketing strategies in relation to the strategy being followed by Palm, Inc. was determined also. An overall analysis of the performance and effectiveness of the advanced marketing strategy of Palm, Inc. was also conducted to assess and compare the capabilities of these advanced marketing strategies with those of others. Gaps in the advanced marketing strategy capabilities and environment were then identified. Finally, several choices of strategies to improve the advanced marketing strategy of Palm, Inc. as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.   OVERVIEW OF PALM, INC. Palm, Inc. aims for sustainable growth as a broad market leader in mobile computing as well as for segment leadership. In both cases, the Palm, Inc. brands will play a crucial part. Palm, Inc. is able to establish its broad leadership usually by acquiring other strong mobile computing companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Palm products. This practically results in economies of scale that is able to create a distribution network for both the local and international Palm products. If a market is already in the control of other mobile computing companies, Palm, Inc. devotes its attention towards the development of a premium segment with its various Palm products.             The mission of Palm, Inc. is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Striving in order to reach a leading position in attractive markets </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Focusing on securing a competitive share of the mobile computing market segments. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Working in order to improve the company’s efficiency and cut costs in operations. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Continuous growth through selective acquisitions for as long as they are able to create shareholder value. </li> DISCUSSION A) How successful do you think this organization is in terms of ensuring that factors in its external (macro) environment and the various market actors with which it relates are accommodated within its marketing strategies? The marketing strategies of Palm, Inc. are geared towards making sure that the following macro-environment factors are taken into consideration: A. Product-Service Market Palm products include smart-phones and handheld computers. These are equipped with a Personal Information Management (PIM) software and other note-taking applications (2001).  A range of additional features including high resolution coloured screens and wireless capabilities ensure that there's a Palm product designed to meet the needs of clients anywhere in the world. B.  Design Philosophy Hand-held computers are different from a laptop. Palm products focus more on the management and access of information rather the creation and editing of documents. For this reason, Palm, Inc. has developed a unique set of guiding principles - simplicity, wearability and mobility. Total commitment to these principles makes Palm products very user-friendly to its customers (1995).   C. Customers A majority of Palm customers are professionals who rely on mobile gadgets and expect seamless handoffs every time they make calls. For instance, a customer phones in a service request from the New York airport while boarding a plane bound to Paris the same day. The technical people of Palm, Inc. in New York will immediately work on the service ticket of the client. And when that client arrives in Paris, he / she would be able to call the New York service center and pick up exactly where he / she left off ( 1999). D. Competitors Palm, Inc. is the world's leading producer of hand-held computers. Interestingly enough, Palm, Inc. has an even larger share in the market for hand-held computer operating systems. Around eighty (80) percent of hand-held computers in the United States operate on a Palm operating system. Microsoft is the only major competitor with a share of sixteen (16) percent. The hardware market gives Palm, Inc. a market share of sixty (60) % (2002). Of the major competitors, Sony Corporation and Handspring are both using Palm's operating system, and hold about 7% and 14% market shares respectively. Other competitors, such as Compaq and H-P, use Microsoft's operating system, but both companies have below 10% market share. Palm, Inc. has had so much success in the consumer market, but the future goals include selling more products to corporations (2002). E. Internationalization Issues It is a common knowledge that the mobile devices industry is still a relatively new industry and is still in its early stages of development. However, it has shown signs of rapid growth and it is being estimated that there will be more than a million mobile devices that will be shipped within the year. And it is further being expected that within the next years the tremendous growth and technological advancements will continue in the mobile world. Mobile commerce and multimedia terminals are just some of the technological advancements already being expected. Therefore, the continued growth and development will also make it imperative for localization to occur in the mobile industry in the years to come (1993). The software development for mobile devices of Palm, Inc. certainly will become the target for localization because of its dynamism. There are still plenty of operating systems for mobile devices that software developers can use. But since development cycles are much shorter than computer software development cycles, Palm, Inc. may need to rush the release of its localized versions of softwares. By doing this measure, they will be the first to launch softwares in various markets, thus putting more pressure on the localization process. Also, the redesigning and streamlining of both software development and the localization process will become imperative if this scenario happens (1997). A majority of the localization projects of Palm, Inc. for mobile devices are part of OEM deals. Palm, Inc. often partners with smaller companies to ship products with devices. Hence the huge customer influence on localization projects and product design is undeniable.  Changes are also frequently made to the documentations and the overall look of the applications. Therefore, this will require the localization process to be a lot more flexible than in other situations localizers are used to dealing with (2001).   There is also an issue of the lack of experience in dealing with mobile devices in both the software and localization industries. Thus, there is still no knowledge base from where to get the troubleshooting tips. Since most projects require both the software and localization industries to sign non- disclosure agreements, software developers who are working on a project and encounter problems won’t be able to go outside their organization to ask for assistance. Thus, they would have to find answers and solutions to their problems by themselves. Their solutions also may never be shared with others. Clearly, there is an immediate need for a knowledge base that will guide all those in this field ( 2001). The points discussed so far bring out the necessity of having cooperation between Palm, Inc. and localization vendors. Both should strive hard in order to establish streamlined processes for localization. Close collaboration will help guarantee successful localization for mobile devices.     B) How successful does the organization seem to be in ensuring cross-functional responsibility for marketing operations within / across its own sub-units or departments? Palm, Inc. has been able to maintain its reputation as one of the world's leading mobile computing companies for more than 130 years now. It is able to face the challenges in many of its markets directly. This is made possible by the effective promotional and positional strategies aimed to deliver not only profit growth, but also on building down the foundation of its brands and business. The promotional campaigns and strategies of Palm, Inc. are focused mainly on driving the growth of its brands and improving the company’s financial performance. These campaigns have also helped secure significant acquisitions and partnerships. And more importantly, these campaigns have led to the release of the potentials of the company’s employees, thus building a quality performance- based culture. The promotional strategies of Palm, Inc.’s local products are practically reinforced by the local employees themselves. These moves certainly allow the company to improve even more without the costs of introducing new technologies. These efforts have resulted in increased financial gains for the company and have allowed the establishment of distribution networks for both the local and international Palm products.   C) What future market-driven strategies would you recommend to the management team of your chosen organization? Deriving from the analysis between the environment, strategy and capabilities of Palm Inc., many strategic options would become imperative. It is therefore essential to evaluate these strategic options as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders. A. Business Level Strategy There is definitely a need to reconcile both the inside-out and outside-in capabilities. While Palm, Inc.’s business strategy involves focusing on its core competencies with market position following its resource base, the company will be put into a disadvantageous position should it choose to neglect both the macro as well as industry environment. Therefore, Palm, Inc. has to be aware of the latest technological changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring (2000). The advantages enjoyed by the company may come in the form of increased revenues. Knowing what the market demands and the latest trends could help Palm, Inc. fully exploit its research and development capabilities to come out with product designs which are cost-effective but high in quality and performance. The strategic option can even be used as marketing tool where the focus is on staying close to your customers and listening to their feedbacks. On the flip side of the coin, there will be huge mobilization of resources involved, and the associated risks bestowed on the company. Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. The key stakeholders too should not have any objections so long the company’s core business is not threatened. By virtue of Palm, Inc.’s centralized control of its subsidiaries, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of Palm, Inc.’s operations. B. Corporate Level Strategy Understanding the strategic importance of its subsidiaries is something Palm, Inc. has to be familiar with. Palm, Inc. normally practices a centralized and globally scaled configuration of assets and capabilities among its subsidiaries. This allows information dissemination to be retained at the corporate headquarters of Palm, Inc. C. Network Level Strategy There are various strategic options available for Palm, Inc. These are enumerated as follows: ·         Tie up with various local telecommunications company ·         Collaborate with either Microsoft or Compaq ·         Alliances with leading players in technology such as suppliers A tie-up or merger with various local telecommunications company offers tremendous benefits in terms of access to the company’s subscribers, infrastructure and even its resources. However, Palm, Inc. must not lose sight of its core competencies while pursuing these tie-ups. Otherwise, the image of Palm, Inc. might be put in jeopardy. Meanwhile, the collaboration of Palm, Inc. with its major competitors can be seen as a ridiculous move at first.  However, upon close examination, this move could pave the way for Palm, Inc. to increase even more its market shares and revenues. The bottom line is both sides would be able significantly gain financially in such an alliance. Palm, Inc.’s strengths in product development combined with the financial capabilities of either Compaq or Microsoft can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the companies involved. Another possible setback could be whether any of Palm, Inc.’s competitors has the need to form alliances. The third option also focuses on alliances, but this time with either one of the suppliers specializing in manufacturing of mobile products or the product’s operating system. The benefits of these alliances should outweigh the costs in the long run. In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether Palm, Inc.  could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. Palm, Inc. has traditionally relied on the inside-out approach. It is important to note that any merger transactions would have many implications on the company’s values and culture as well as the resources. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, Palm, Inc. will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options. CONCLUSION Palm, Inc. has been able to remain one of the world's leading mobile computing companies for more than a century now primarily because of the execution of the company’s advanced marketing strategies to perfection. Add to the mix the company’s dedication to high quality of service and the formula for success is at hand. Moreover, the utilization of the appropriate advanced marketing strategies is necessary for their products to reach out to people even in different cultures. In this case, it is being recommended that a combination of advertising, branding and personal selling be implemented by Palm, Inc. due to its high level of effectiveness. However, certain points have to be taken into consideration by Palm, Inc. regarding advanced marketing strategies. Since their income is relatively higher than most mobile computing companies, the time for implementation of their chosen advanced marketing strategies would take longer than usual, aside from being expensive. But since the goal of Palm, Inc. is towards a long-term dominance and stability in the mobile computing industry, then the pursuit of these promotional campaigns will be beneficial for the company in the long run.

Advanced Marketing Strategy

OBJECTIVES As a person with knowledge of advanced marketing strategy, the author has always brought up to his superiors the viability o...

Renault-Remanufacturing as a Strategic Activity

An Analysis: Remanufacturing as Renault’s Strategic Activity Company’s Background History             In 1894, Marius Berliet designed and produced a single cylinder engine and his first petrol-driven car. He manufactured his first truck in 1906. At about the same time, Louis Renault launched his first commercial vehicle, followed shortly afterward by the forerunner of the bus for the city of Paris.  Laffly, Rochet Schneider, Camiva and Citroen Poids Lourds joined forces with Berliet between 1952 and 1974. In parallel, Renault Trucks merged with Somua in 1955; thus Saviem was born. ()             Saviem and Berliet merged in 1978 creating the sole remaining French truck manufacturer, which became known as Renault Vehicules Industriels (RVI), the commercial vehicle branch of the Renault Group. RVI continued its international expansion by buying Dodge Europe and the American brand Mack in 1990. The entity became part of the Volvo Group in 2001 after being renamed Renault VI in 1992. The following year, it adopted the new international trade name, the Renault Trucks. () Development and Growth             With about 57,000 trucks produced in 2001, the Renault Trucks business area was the second largest business area in the Volvo Group. Renault, unlike Volvo Trucks which specialized in heavy trucks offered a broad range of vehicles-from light trucks for city distribution to heavy long-haul trucks and military vehicles. Overall, it owned 11 percent of the Western European market for light trucks and 13 percent of the market for heavy trucks. ()             Renault, employing 15, 000 people was present in 80 countries via a network of sales and service centers, importers and subsidiaries.  The network was especially strong in Europe with over 1,500 sales and services points. Thirty two dealerships out of 146 were solely owned by Renault Trucks in the French market. Moreover, all members of the network sold vehicles provided after sales service and distributed ‘approved’ original Renault Trucks spare parts. () The Issue             Renault’s manufacturing was organized on the basis of firms’ orders placed by customers. Vehicles were assembled at three plants: Blainville for the medium-duty Renault Midlum range, Bourg-en-Bresse for the heavy-duty Renault Magnum and Renault Premium ranges, and Villaverde in Spain for the Renault Kerax range (dry bulk haulage). It had been in Limoges since 1938. Globally, it was the fourth largest employer in the Limoges area. ()             Renault was recently acquired by Volvo Trucks to form the largest European truck manufacturer. Within the industry, remanufacturing was rapidly growing in popularity. Remanufacturing encompassed all the activities involved in rebuilding used spare parts to achieve a performance level on a par with or just below that of new parts. Remanufactured parts provided price-sensitive truck owners with a low cost like-new alternative to the original equipment manufacturer (OEM) replacements with the added benefit of environmental consciousness. ()             Remanufactured parts, labeled ‘Renault 100 percent’ accounted for 16 percent of Renault Truck’s parts revenues and were processed in its Limoges plant. These dedicated facilities were rather old, inefficient and running at full capacity; thus increasing output would call for significant investments. ()             Jean-Francois Hilico, the industrial project manager at Renault Trucks surveyed the market, benchmarked competitors and assessed Renault’s Trucks capabilities in remanufacturing. He became convinced that it offered exciting opportunities to the company but it also had the potential to create conflicts with truck dealers and divert resources from the more profitable original parts business. He foresaw three options for Renault: 1) outsource the activity to a third party; 2) expand and streamline processes in the existing plant; and 3) build an entirely new plant. () Internal Strength and Weaknesses             Renault Trucks had the advantage in terms of human, physical and financial resources. As mention earlier, it employed around 15, 000 people and was present in 80 countries via a network of sales and service centers, importers and subsidiaries. In addition, it was strong in Europe with over 1, 500 sales and services point. It had also 32 out of 146 dealerships in the French market.             Its financial resources were at high degree considering the big turnovers in its sales. As stated in the case, Renault Standard Exchange parts revenue had reached $64 million with a product margin of $19 million in 2000. This was equivalent to 170 000 units sold.  Likewise, its turnover from its total parts business during the same period was $488 million with a product margin of $192 million.             Diverting from manufacturing to remanufacturing, this company’s activity and process clearly showed and met the success in the global industry of automobiles and trucks. It did not only meet its goal in increasing its revenues but also helped in decreasing the waste brought about by this industry since automobiles and trucks were the source of nine million tons of waste annually (). Generally, with these facts and data, we can therefore conclude that Renault had a better and effective marketing and research and development plans and strategies.             However, Renault Trucks may face several problems and obstacles in pursuing its remanufacturing business since it required direct communication with the end consumers. Perhaps, it would risk alienating the whole dealer network since dealers and franchisees  may had a clear financial incentive to either rebuild parts themselves or use new parts.             Segmentation of Renault’s customers base into two groups such as the trucks between three and seven years old with 12 percent remanufactured parts  and trucks between eight and 15 years old with 25 percent remanufactured parts may also bring some problems between the company and its customers. Conflict between the two parties may also arise since it was mentioned that most of customers used reman parts because they did not have an integrated workshop and were not under service arrangement of the classis three-year buy-back truck contracts. The External Environment             Within the industry, remanufacturing was rapidly growing in popularity. Considering the advantages and benefits it offered and brought and to competitively contend in the vehicles’ industry, Renault Trucks as a manufacturer recognized the importance of remanufacturing; thus applying this process in its operations.             By doing this decision, we can conclude that Renault was not left behind by its rival companies and manufacturers. It ran parallel to the latest trend of the vehicle industry. Renault also may not have problems regarding its brand reputation since it already established its name and identity even before when it was still manufacturing. Its entry to the market regardless of geographical setting was not difficult since it already had its dealers and franchisees worldwide. There were also no problems regarding the funding source since its turnovers was higher than the company expected.             The company offered a full range of remanufactured truck components with ‘Standard Exchange, Renault 100’ percent as its brand.  It was distributed throughout the international dealer network and was available within 48 hours, as fast as the new parts. Like most of its competitors, Renault guaranteed the same performance as new components and offered a worldwide one-year warranty on parts, equipment and components. These moves may attract clients and buyers to patronize the remanufactured products since they have been guaranteed and assured of its performance.             However, independent repair shops did not view the development of Renault Trucks’ remanufacturing business favorable either. They had already initiated a price war and offered a 20 percent to 30 percent discount compared with Renault 100 percent parts. Parts suppliers like the Valeo, Wabco and Knorr were also thwarting the development of remanufacturing by partnering with dealer networks and independent repair shops to promote the use of new parts.             Such independent repair shops and dealer networks promoting the use of new parts were the obstacles that hinder the fulfillment of vehicles’ remanufacturing industry. They were the risks in Renault’s full success in remanufacturing. Evaluation of SWOT Analysis             Balancing Renault Trucks’ strengths and weaknesses against opportunities and threats in remanufacturing, the company had an overall strong competitive position in the industry. Thus, it can profitably continue pursuing remanufacturing.              Despite the price war and discounts offered by the independent repair shops and dealer networks promoting the use of new parts, it can still continue its current business strategy because aside from the fact that these repair shops and dealers didn’t offer the same warranty and level of reliability as ‘Renault Standard Exchange’, Renault already had established its name and reputation among the truck manufacturers and customers as the largest business area in Volvo Group.             Proper and direct interaction of Renault with its end consumers must be done. The company must provide customers with information and assurance that the quality and efficiency of its remanufactured products were the same as or can be highly compared with the quality of those new manufactured products but in lower prices. Customers and buyers should have an incorporated workshop about reman parts and should have a service arrangement on the two groups segmented by Renault Trucks.             Renault should also establish a rapport between the whole dealer network to avoid alienation of dealers and franchisees. It may put-up business meetings and talks with such dealers to discuss the trends in remanufacturing at the same time to tackle issues concerning rebuilding parts of the dealers themselves and using of new parts.             To minimize if not fully eradicated the threat of the independent repair shops and dealers promoting the use of new parts, Renault should demonstrate its competitiveness and the effectiveness of its remanufactured products. It must show and emphasized the benefits and advantages of the remanufactured products as well as the need to remanufacture. Corporate-Level Strategy Volvo Group Mission             ‘By creating value for our customers we create value for our shareholders. We use our expertise to create transport-related hard and soft products of superior quality, safety and environment; care for demanding customers in selected segments. We work with energy, passion and respect for the individual.’ Volvo Group Vision ● To be valued as the world’s leading provider of commercial transport solutions ● To be number one in image and customer satisfaction ● Sustainable profitability above average ● Number one or two in size or superior growth rate             We can assume that Renault Trucks as member of Volvo Group considered and practiced the Group’s vision and mission in performing its operations. In order to do these, Renault according to Hilico, had secure the supply of carcasses both in quality and quantity. According to him, they will also improve the remanufacturing process so that the customers associate their label 100 percent Renault with image of quality, security and environment-the three strategic pillars of Volvo Group.             Diverting from manufacturing to remanufacturing, the company had given the new opportunities to compete in the automotives and trucks industry since remanufacturing was the industry’s latest trend. The change in its corporate strategy was just an adaptation to the changes in industry and the changed over time. The new corporate strategy also will contribute most in its competitive advantage given the new demands and fashion in that industry. Business-Level Strategy             Renault Trucks was a single-business company and member of group of companies from the same industry. It had already established its name and reputation when it was still in manufacturing. Since it diverted to remanufacturing, there was still a need to reestablish its name and reputation in remanufacturing as well to attract further clients and buyers. Guaranteeing that the remanufactured components were the same as new in terms of performance and offering a worldwide one-year guaranty on parts, equipment and components were good business strategy of the company. It will gain the trust of the buyers; thus, to patronize its remanufactured products. Structure and Control Systems             Remanufacturing was rapidly growing in the industry of automotives and trucks. Remanufacturing a component such as a complete engine block, meant removing it from the vehicle, discarding worn parts, reassembling the engine and testing it. Remanufactured components or reman were usually aimed at vehicles between five and 12 years old. Vehicles that were less than five years old were either under warranty or repaired with original parts. (1999)             The advantage of a remanufactured part over an original one was its price. For most components, remanufactured versions were 30 percent to 5o percent cheaper, enabling companies with big fleet to significantly reduce their servicing and maintenance costs. Because remanufactures knew the quality of each component, they were also able to offer warranties of 12 to 24 months or 150,000 lm for engine. ( 1999)             Remanufactured components, especially engines, often benefited from recent technology, which sometimes made them more efficient than the original component in terms of performance and emission regulations. Remanufactures also offered customers the option of having the electronic control module (ECM) transferred from the old engine to the remanufactured one ensuring not only the original emission integrity with which that engine had compiled but also that the customer’s pre-calibrated engine specifications were automatically programmed in the new engine. ( 1999)             Another aspect was time. Remanufacturing was quicker than rebuilding, which translated into quicker turnaround and less downtime. Added to the cost savings over purchasing a new part, this made remanufacturing even more appealing. ( 1999)             Given such advantages and benefits offered by remanufacturing and considering its popularity in the industry, it was not shocking that Renault turn from manufacturing to remanufacturing.     Renault used the right integration and control system to manage the shift in production strategy: the remanufacturing operations since it had the authority who was Hilico who surveyed the market, benchmarked competitors and assessed the company’s capabilities in remanufacturing.             Thus, the company saw the exciting opportunities in remanufacturing as well as its potential conflicts with truck dealers. It also provided the company to have three options such as to outsource the activity to a third party, expand and streamline processes in the existing plant or build an entirely new plant to address the remanufacturing operations.   Recommendations             We can assumed that the whole company was already informed and had the knowledge about Renault’s shifting in remanufacturing process since Hilico consulted all the parties involved from marketing to engineering and R&D and manufacturing. The three options to support the remanufacturing business were incorporated with all the elements, the financial as well as softer ones. Further, the project was also put back into the strategic perspective of the Volvo Group.              The first possibility was to hand over the remanufacturing business to a subcontractor. Renault Trucks owned part of the equity of a remanufacturing company that could increase capacity if Renault Trucks guaranteed to transfer the Limoges plant business. In this case, however, it would be more difficult to monitor the quality of the process. The Renault 100 percent label also could be at risk. ()             The second alternative involved streamlining the remanufacturing process in the Limoges plant. It aimed to concentrate the activity in seven adjacent buildings and improve automation to reduce manufacturing and logistics costs. Capacity would remain the same, 250,000 units a year. Renault Trucks did not forecast any price increase for the following six years. Product margins would improve by five percent. ()             The third alternative was more ambitious. It entailed moving the remanufacturing business to a new plant, just five kilometer north of Limoges. The investment was significantly higher but capacity would be increased gradually to 300,000 units by 2006. Margins would improve by 10 percent in 2002 and by two percent in each of the following years. The processes would be redesigned to include, for example, a “clean dismantling” step. In addition, the new plant would be built to meet more stringent emission regulations and achieve a “zero liquid waste, zero outside storage of carcass” level. Water consumption would be reduced from 450,000 m3 per year to 3,000 m3 per year and the plant would be eligible for ISO 14000 certification. ()             According to , if Renault went for the last alternative; the company would create an organizational breakthrough by tailoring a manufacturing process to the remanufacturing activity. Further, such a plant with zero emission could also become a pilot site in terms of environment and working conditions and bolster the image of Renault 100 percent. However, increasing capacity could create problems in the future with Volvo. He also raised the argument that with the increasing commonality of parts between its trucks, where carcasses should go in priority five years from now when 70 percent of parts are common between Renault Trucks, Mack Trucks and Volvo Trucks. () Considering such statement, we could therefore conclude that the last alternative was not a recommendable option. Thus, what we have to regard were the two first alternatives.             After weighing the advantages and disadvantages showed by the first and second suggestions, we could select option two as better than the first option since in the first option, it was mention that it would be more difficult to monitor the quality of the process and the Renault 100 percent brand could be at risk. Option two also was the most rational among other options in terms of the global strategy of Volvo Group.              However, Renault must also not set aside its manufacturing operations since it was its first business strategy. Also, maintaining its manufacturing will provide the needs and demands of those customers who still want to have and purchase all new parts components and products.

Renault-Remanufacturing as a Strategic Activity

An Analysis: Remanufacturing as Renault’s Strategic Activity Company’s Background History In 1894, Marius Berliet desig...

Strategic Management 2 :Assignment Guide and Marking Criteria

BUSM3192 Strategic Management HKMA Assignment 2 -Essay Assignment Guide and Marking Criteria Due Date: Friday 16 May Value 30% Length: 8 Pages (approx 2000 words) Select 2 companies that operate in an industry that you are familiar with. You can not use the company that you used in Assessment Item 1. Use relevant theory to a. Describe the industry environment. b. Compare and contrast the business level strategy of these companies. c. Assess if the strategy chosen is the best strategy, and if not, recommend the strategy you believe should be adopted. Advisory Notes: • You should use appropriate theoretical models in your discussion • This is 8 page essay (approximately 2000 words). It is not possible to explore ALL aspects of the industry environment and business level strategy • It is strongly suggested that you select an industry which you are familiar with. • In your introduction, you should specify the scope of your coverage (what you have chosen to focus on) and why you have chosen to direct you focus in the way you have chosen. • This is an academic essay. In line with RMIT policy, sources must me consistently and comprehensively referenced using the Harvard System. At least 3 primary sources must be used. Essay Structure Introduction 2. This states the purpose and structure of the essay, and identifies the main theme or proposition(s) that you are trying to prove. It tells the reader what to expect. Body 7. In the body of the essay, you are trying to build a logical argument that supports the main theme or proposition. The body needs to be consistent with what you have said you are going to do in the introduction. 8. Each paragraph should have a topic sentence, and the points you are making should reflect that topic sentence. 9. You need to refer to theory to analyse the topic you are discussing. 10. Use theory and examples to explain your argument. 11. Remember that you are trying to present a logical, cohesive and clear analysis of the key issues that you have identified, and to use these to support your proposition or theme in a systematic way. 12. DO NOT TRY TO WRITE EVERYTHING THAT YOU KNOW ABOUT THE TOPIC IN THE HOPE THAT SOMETHING WILL BE GOOD. Conclusion 3. A conclusion is not just a list of the key points you have made. You need to draw together your key points to demonstrate that you have supported your theme or proven your proposition(s). 4. The conclusion needs to be consistent with both the introduction and the body of the essay. General Points about essays 4. You can use headings, but use them sparingly. Headings only add value if they assist the reader in following the logical argument. 5. BODY should not be used as a heading. 6. Poor spelling and grammar detracts from your ability to build an argument. CHECK BOTH GRAMMAR AND SPELLING THOUROUGHLY. Recommended databases to quote the references ABI/Inform Global covers international business, management and marketing, including company information. It contains content from thousands of journals helping to track business conditions, trends, management techniques, corporate strategies, and industry-specific topics worldwide. Academic Research Library (ProQuest) covers a broad range of general research subjects including business. AIMMAT: AIM Management and Training (Informit) - A bibliographic database covering all aspects of management, training and human relations, including organisational change, award restructuring, business ethics, customer service and leadership APAIS (Australian Public Affairs Information Service)- Australian political economic, legal, social and cultural affairs. Business and Management Practices (OCLC) focuses on the practical aspects of business management with coverage of more than 300 core management journals and trade publications. A FirstSearch password may be obtained from the Library to use this database. Dissertations and Thesis Full-text - Full text of theses available from 1997 onward and dissertation abstracts available from 1861 onward. All disciplines of theses are included. EBSCO Business Source Premier covers all areas of business. There is full text access for more than 3,000 business journals, including nearly 1000 peer-reviewed business publications. Harvard Business Review is available in full text from 1922. Edge (Informit) - A bibliographic database that indexes and abstracts selected articles from about 80 journals. It focuses on management topics and includes some management issues within selected industries. Emerald provides abstracts and full text articles in the areas of marketing, management, human resources, training and education. Expanded Academic ASAP - A full text database covering all academic disciplines. Factiva includes online full-text articles from some 9000 publications world wide, including newspapers and academic journals. It's a good source of news, company, financial and business information. Factiva also provides access to the Australian business press, including the full text of The Age, and the indexing of the Business Review Weekly and the Australian Financial Review. FAMILY - Australian Family & Society Abstracts - Current Australian writing and research on the legal, sociological, psychological, economic and demographic situation of Australian families, children and adults. Libraries Australia (http://librariesaustralia.nla.gov.au/) gives access to a national bibliographic database of material held in Australian libraries. Covers all disciplines and types of material. MEDGE: Management and Environment Information (Informit) - A bibliographic database that indexes and abstracts articles from about 100 journals on management issues, including environmental management. ProQuest Asian Business and Reference includes business and management information for the Asian region with 60 of the 70 titles indexed being in full text. ProQuest European Business includes European trade and business information for the European region with 100 of the 110 journal titles being in full text. Proquest Psychology Journals - Nearly 300 academic journals in psychology including issues psychology issues relating to business and management. All articles are in full text. PsycINFO focuses on psychology and includes psychological aspects of related disciplines such as business. Science Direct - Multidisciplinary database indexing 1100 journal titles with over 200 available full-text. Web of Science - A citation index of 8,500 leading academic journals in the engineering, science, biomedical, social science, arts and humanities areas. Wiley Interscience - Multidisciplinary database which includes full text access to business, finance and management journals. Wilson Business Abstracts provides access to leading English-language business magazines. Topics include accounting, personnel, and small business. A FirstSearch password may be obtained from the Library to use this database. WORKLIT (Informit) indexes and abstracts articles on industrial relations, workplace reform, work and family relationships, job design, performance appraisal, dismissal, retrenchment, management, technological change and teleworking. BUSM3192 Strategic Management Assessment Item 2 Marking Guide Student Name: ________________________________________ Student Number: ________________________________________ Due Date: Friday16 May Length: 8 pages (approx 2000 words) Criteria Marks Critical approach to the topic (10 marks) 1. The body of the essay is consistent with the introduction and critically analyses the topic. 2. 3. Analysis shows knowledge of relevant theory. 4. There is a balance between descriptive and analytical content, with a strong emphasis of critical analysis. 5. The topic is discussed using relevant strategic management theoretical frames, and these are supported by the use of at least three primary sources (e.g. refereed journal articles) that are directly relevant to the topic chosen. Line of argument (5 marks) 1. The introduction outlines the main proposition of the essay and body develops a clear line of argument. The argument is incisive and includes a concise, relevant treatment of the issues. 2. The conclusion draws together the main points of the essay and demonstrates a plausible, insightful, and rationally persuasive point at which to end the argument. Use of academic literature/overall presentation (5 marks) 1. Judicious and appropriate use of at least three academic journal articles. 2. Makes use of textbook (or other text books) and primary sources to support their argument. 3. Sources are referenced consistently and comprehensively using the Harvard referencing system. # 4. Use of language appropriate to an academic essay; Presentation is professional (e.g. spell and grammar checked, judicious use of headings, etc).## TOTAL (20 Marks) Notes: #Failure to adequately reference is plagiarism. Plagiarism will be dealt with in line with university policy. ##Up to 20% of overall marks may be subtracted for poorly presented essays.

Strategic Management 2 :Assignment Guide and Marking Criteria

BUSM3192 Strategic Management HKMA Assignment 2 -Essay Assignment Guide and Marking Criteria Due Date: Friday 16 May Value 30% Length:...