Task 2 – (This question provides evidence for grading criteria P2 & M1) Evaluate the benefits and importance of customer loyalty. Identify and apply the importance of relationship marketing. Ans: - Customer loyalty can be defined as the strength of the relationship between an individual's relative attitude and repeat patronage with a supplier. It is a self-reinforcing system in which the company delivers superior value consistently to find and keep high-quality customers, (and, where applicable, employees). The economic benefits of high customer loyalty are measurable.
By listening to people’s feedback not only can you find better ways of working increasing your speed and efficiency but you can work with other people to build upon ideas. 1.3 Explain how learning and development can improve own work, benefit organisations and identify career options Learning and development can improve your own work by increasing speed and efficiency and persons own knowledge base. This can benefit the company because you are less likely to make mistakes which not only saves you time but other people that may be asked to help you rectify the mistake and also having to repeat work. This will bring down costs to the company and the quality of work you hand in will be better. For example the data quality department of the hospital’s motto is “GETTING IT RIGHT THE FIRST TIME” as getting something such as patients information can have large
Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
If the employees are performing their job better, they will deliver better quality products, in a timelier manner, thus raising the customer satisfaction. The more satisfied a customer is, the more likely they are to keep purchasing your products and recommending your products to others, thus raising your financial level. Once again this shows the cause and effect that was discussed earlier in this report. Each of the four areas ties into one another, but they all are used to achieve the same thing; and increase bottom line for the
The best forms of motivation focus on what the employees deem to be important. Many organizations find that flexibility in job design increases an employee’s longevity with the organization, improves productivity and betters morale ("Reference for Business; Encyclopedia of Business", 2012). Some methods of motivation include empowerment; creativity and innovation; learning; quality of life; monetary incentives; and other incentives ("Reference for Business; Encyclopedia of Business", 2012). Empowerment means giving employees more responsibility and decision making authority so they can feel control over the tasks they are held responsible for and better equips them to carry out those tasks ("Reference for Business; Encyclopedia of Business", 2012). Creativity and Innovation gives employees the opportunity to use their ideas to improve a job, product, or service ("Reference for Business; Encyclopedia of Business", 2012).
However, it has various issues in terms of its strategy to more to a less bureaucratic, more customer focused organization. Ultimately, their goal is maximize return on assets through profitable growth. Thus, the change in strategy has caused La Caja to recognize into four different divisions – financial, commercial, technology, and planning & control. Caja Espana employees were reward on their performance through promotions and determined by their qualification and seniority, but had a small variable that was variable on their performance. It goes into detail how the performance compensation was laid out.
Innovation impacts the cost of production as well. Even the innovation helps in lowering the cost of production and making economies more efficient – producing more outputs with the same number of inputs. Technology affects market structure. In today’s market world, technology advances more rapidly because individuals gain incentives, in the form of profits, to discover new and cheaper ways of doing things. Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change.
As we have mentioned before our product has so many advantages compared to other products in the functional and sustainable factors then we will compete with those businesses and products based on product differentiation strategy. Then we will emphasis on the facts that are product relative to other products in the market will create more value that our customers are interested and paying for
The logic is that improvements in these customer measures are leading indicators of whether La Quinta’s cost leadership strategy is succeeding with its customers and helping it to achieve superior financial performance. Internal Business Process Perspective (1) Productivity, (2) order delivery time, (3) on-time delivery, (4) number of major process improvements. Improvements in these measures are key drivers of achieving cost leadership and are expected to lead to more satisfied customers and in turn to superior financial performance Learning and Growth Perspective (1) Percentage of employees trained in process and quality management, (2) employee satisfaction. Improvements in these measures aim to improve La Quinta’s ability to achieve cost leadership and have a cause-and-effect relationship with improvements in internal business processes, which in turn lead to customer satisfaction and financial performance. Solution Exhibit 13-16B presents the strategy for La Quinta for 2009.
The quality is not compromised with the cost factor and thus becomes the strength with increased profits. Second, it has its own established brand name which serves as a major strength as compared to its competitors. These strengths can be considered as a distinctive strength because both the low cost and brand name positioning serves a competitive advantage which in turn leads to more profitability and major share in achieving the industry trusts as well as confidence. Weaknesses: First, Customer Service is the parameter for which DeVery needs to put hard woks for it. Second, the quality of the degree should be improved in order to stand apart from its competitors.