Background and justification of affecting customers loyalty

Background and justification of affecting customers loyalty In todays competitive markets services and service companies within the same industry are becoming increasingly similar. Differentiation through the delivery channel (i.e. delivery of services against payment) is difficult. A growing number of service companies have embarked on a journey of positioning through the communication channel (i.e. advertising and personal selling) (Andreassen, T.   1995), with the objective of building strong corporate images in order to create relative attractiveness. This development is in line with Lovelock (1984) who claims that  «(images).. . are likely to play only a secondary role in customer choice decisions unless competing services are perceived as virtually identical on performance, price, and availability ». Recent years have shown a growing interest in customer loyalty. The globalisation of competition, saturation of markets, and development of information technology have changed customer behavior and perception and created a situation where success is no longer achieved through product price and qualities. Instead, companies build their success on a long-term customer relationship. According to former studies, it can cost as much as 6 times more to win a new customer than it does to keep an existing one. (Rosenberg L. et al. 1984: 45) Depending on the particular industry, it is possible to increase profit by up to 60% after reducing potential migration by 5%. (Reichheld F. 1993) It follows then, that the increase and holding of loyal customers has become a key factor for long-term success of the companies. The main emphasis in marketing has changed from winning new customers to the keeping of existing ones. Traditionally there are two approaches to treat customer loyalty. Some researchers have investigated the nature of different levels of loyalty, others have explored the influence of individual factors on loyalty. In this article both treatments are combined. The starting point of the paper is to test whether the list of most important factors affecting customer loyalty is dependant on the levels of loyalty of costumers. The potential for establishing loyalty depends on the object (i.e. product or vendor), on the subject (customer) or on the environment (market, other suppliers etc.). This work might be rather helpful for both students, interested in developing this field of research and people, who are working in the sphere of marketing, because it may provide with interesting information worth dwelling upon. This topic interests me personally, because to my mind, customers are the turning point of the market. They decide whether to buy a product or to use a service or not, changing the whole picture of market. That is why, I suppose it is rather necessary for industries to pay much attention to the topic of customers loyalty and satisfaction in order to be a success. Chapter 2. Statement of Objectives and Hypothesis to be Examined. This paper aims to test if the importance of each factor affecting loyalty varies in different loyalty segments described in Figure 1, presenting segmentation of customers loyalty. One possibility to investigate it is to compare the customers of different loyalty levels and examine what kind of factors influence the probability of the customers to remain on that level or to move to another loyalty level. Customer loyalty expresses an intended behavior related to the service or the company. This includes the likelihood of future renewal of service contracts, how likely it is that the customer changes his preferences, how likely the customer is to provide positive word-of-mouth opinion. If real alternatives exist or switching barriers are low management discovers the organizations inability to satisfy its customers through two feedback mechanisms: exit and voice (Hirschman A. 1970). Exit implies that the customers stop buying the companys services while voice is customer complaints expressing the consumers dissatisfaction directly to the company. Customers exit or change of patronage will have an impact on the long-term revenue of the company. Customers may be loyal due to high switching barriers or lack of real alternatives. Customers may also be loyal because they are satisfied and thus want to continue the relationship. History has proven that most barriers to exit are limited with regard to durability; companies tend to consider customer satisfaction the only viable strategy in order to keep existing customers. Several authors have found a positive correlation between customer satisfaction and loyalty (Bearden and Teel   1980;Bolton and Drew 1991; Fornell 1992; Anderson and Sullivan 1993). Based on the future discussion, the following two hypotheses are proposed: Hypothesis 1: Factors such as satisfaction, trustworthiness, importance of relationship and image have a positive influence on loyalty. Objective 1: To indicate any relationship between loyalty and such pshycological factors as satisfaction, importance of relationship and others. Hypothesis 2: The relevance of factors affecting loyalty depends on the levels of loyalty of customers. Objective 2: Define and dwell upon the levels of loyalty of customers, examin them. The limitations of my hypothesis questions were shortage of time, because I had to provide results in a relatively short period of time, and money, because true and reliable information was hard and costly to get. Chapter 3. Details of Information/ Data Collection Methods. Research on customer loyalty has a long history and has been studied using a large variety of methods. Although the study of relationship between satisfaction and loyalty of customers is a newer field of research, various methods have been applied to study this   phenomenon as well. Some studies have also been purely conceptual (Stewart 1998; Hocutt 1998). Although qualitative methods seem to dominate in studies of relationship, quantitative methods have also been used. The data used for the analysis is a secondary source. A secondary source usually contains commentary on or discussion about a primary source. The most important feature of secondary sources is that they offer an interpretation of information gathered from primary sources.   I did not use the primary source as it is an original material. It is from the time period involved, was not filtered through interpretation and need much time and knowledge to process it. Demographically, the study had some limitations. Firstly, only urban customers were targeted in the study. This group was chosen due to the fact that urban customers have more available alternativetives and are therefore potentially more active in their telecommunication choices. Methodologically a certain limitation of the study was that some of the interviews were conducted on the telephone. Despite the fact that the interviews were considered to provide a deep and accurate enough picture of the relationships and the factors affecting customer loyalty, it is obvious that interviews face-to-face have the potential to reach greater depth. The data used in our analysis originates from PacoNet Customer Satisfaction Survey carried out in November 2003 by professional market research company. PacoNet is the one of the leading telecommunication provider in Ukraine and was providing telephone and internet services for private customers at that time. There were three kinds of competitors for PacoNet: firms providing telephone services on PacoNet network; cable-TV companies providing internet services on their own networks, and mobile telephone companies. The satisfaction survey contained information about 1000 private customers. Data was collected by phone interviews. During the survey the customers were asked how important various factors were for them. The importance was measured on a 5-point scale, where â€Å"1† is â€Å"not important at all† and â€Å"5† is â€Å"very important†. Every factor listed above was divided into 3 to 7 subcategories (e.g. accounting had subcategories like the accuracy and understandability of bills, dept management, availability of different payment methods). Satisfaction with the factors reveals from the satisfaction with those subcategories. Additionally customers answered about their general satisfaction with the firm PacoNet. The satisfaction was also measured on a 5-point scale, where â€Å"1† is â€Å"not satisfied at all† and â€Å"5† is â€Å"very satisfied†. Customer loyalty was measured by following questions: What operators are the customers using right now? What operators will the customers use in 2 years? Does the customer recommend or is the customer ready to recommend PacoNet to others? Chapter 4. Details of Data Analysis Methods In the current analysis only the raw data of mentioned survey was used. Software packages MS Excel 2000 and Stata 9.2 have been used by PacoNet for data processing, because Microsoft Excel is a deep program rich in features and functionality. One of the most powerful features of Excel is the ability to write programs that run behind the worksheets to turn Excel into a calculation-oriented development tool for creating special purpose spreadsheets which can function as applications in their own right. Chapter 5. Literature Review There are multiple approaches to customer loyalty. Theories of behavioral loyalty were dominating until 1970 considering loyalty as the function of the share of total purchases (Cunningham R. 1956; Farley J. 1964), function of buying frequency or buying pattern (Tucker 1964; Sheth 1968) or function of buying probability (Harary F. et al. 1962; McConnell D. 1968; Wernerfelt B. 1991). These approaches looked at brand loyalty in terms of outcomes   rather than reasons, until Day G. (1969) introduced the two-dimensional concept of brand loyalty, which stated that loyalty should be evaluated with both behavioral and attitudinal criteria. Contemporary researches consider and accent the psychological (mostly attitudinal and emotional) factor of loyalty (Jacoby J. et al. 1973; Oliver R. 1999; Chaudury A. 1995). These different approaches allow distinguishing customers as whether behaviorally or emotionally loyal. Behaviorally loyal customers act loyal but have no emotional bond with the brand or the supplier when emotionally loyal customers do. Jones T. and Sasser W. call these two kind of loyalty accordingly false or true long-term loyalty (Jones T. et al. 1995). Hofmeyr J. and Rice B. (2000) divide customers to loyal (behavioral) or committed (emotional). Emotional loyalty is much stronger and longer lasting than behavioral loyalty. Its a lasting desire to maintain a valued relationship. The relationship is so important for the customer that he or she makes maximum efforts to keep it (Reichheld F. 2003; Moorman C. et al. 1992). Highly bonded customers will buy repeatedly from a provider to which they are bonded, recommend that provider to others, and strongly defend these choices to others insisting that they have chosen the â€Å"best† product or service. (Butz H. et al. 1996) Behaviorally loyal customers could be divided to sub-segments by the reason of acting: forced to be loyal, loyal due to passivity or functionally loyal. Customers are forced to be loyal when they have to be clients even if they do not want to. Customers may be forced to consume certain products or products/services offered by certain vendor e.g. when the company acts as a monopoly or the poor financial status of the customer is limiting his selection of goods. Gronholdt L. has found that companies with low price strategy had a much higher loyalty than expected from their customer satisfaction. On the other hand, companies that had used a lot of energy on branding indeed had a high customer satisfaction but they did not have a correspondingly high loyalty (Gronholdt L. et al. 2000). Forced loyalty could be established through creating exit barriers as well. Loyal behaviour may also result from passivity customer does not move to another vendor due to comfort or relatively low importance of operation if the choice has low importance, there is no point to spend time and effort on searching for alternatives. Thus, based on his faith in the suitability of the current product, the customer continues to use it without checking alternatives. Hofmeyr J. and Rice B. (2000) say that one of the reasons that customers dont switch brands when they are dissatisfied is that they feel that the alternatives are just as bad as the brand they are using or even worse. Passivity may be caused also by lack of information about attractive characteristics of the brands (Wernerfelt B. 1991). Functionally loyal customers are loyal because they have an objective reason to be. Wernerfelt B. (1991) points out â€Å"cost-based brand loyalty† where brand utilities have a positive influence on brand choice. Functional loyalty can be created by functional values using price, quality, distribution, usage convenience of a product or through different loyalty programs (points, coupons, games, draws etc.) giving a concrete reason to prefer certain supplier. Unfortunately competitors can most easily copy functional values. Thus, creating functional value offers a fleeting competitive advantage: functional loyalty cant be very long lasting (Barnes J. 2003). Jones T. and Sasser W. (1995) propose three measures of loyalty that could be used in segmentation by loyalty: Customers primary behavior regency, frequency and amount of purchase; Customers secondary behavior customer referrals, approval and spreading the word; Customers intent to repurchase is the customer ready to repurchase in the future. Based on the theoretical literature presented above, the customers of a certain telecommunication provider could be segmented by their loyalty as follows: Committed or emotionally loyal customers active customers who use only the certain providers services and declare that they will use only this provider in the future and recommend this provider to others; Behaviorally loyal customers active customers who use only the certain providers services and declare that they will use only this provider in the future but do not agree to recommend this provider to others (inert or functionally loyal); Contradictory or dubious customers active customers who use only the certain providers services but dont know which provider they will use in the future; Disloyal reducers- customers who have reduced or will reduce the percentage of the providers services in their usage; Leavers customers who declare, that they will certainly leave this provider. The impact of satisfaction on loyalty has been the most popular subject of studies. Several studies have revealed that there exists a direct connection between satisfaction and loyalty: satisfied customers become loyal and dissatisfied customers move to another vendor (Heskett J. et al. 1993). The primary objective of creating ACSI (American Customer Satisfaction Index) in 1984 was to explain the development of customer loyalty. In ACSI model customer satisfaction has three antecedents: perceived quality, perceived value and customer expectations (Anderson E. et al. 2000). In the ECSI (European Customer Satisfaction Index) model perceived quality is divided into two elements: â€Å"hard ware†, which consists of the quality of the product or service attributes, and â€Å"human ware†, which represents the associated customer interactive elements in service, i.e. the personal behaviour and atmosphere of the service environment (Gronholdt L. et al. 2000). In both model increased satisfaction should increase customer loyalty. When the satisfaction is low customers have the option to exit (e.g. going to a competitor) or express their complaints. Researches have shown that 60-80% of customers who turned to a competitor said they were satisfied or very satisfied on t he survey just prior to their defection (Reichheld F. et al. 2000). So its clear that there must be also other factors beside satisfaction that have a certain impact on customer loyalty. Image of brand or supplier is one of the most complex factors. It affects loyalty at least in two ways. Firstly, customer may use his preferences to present his own image. That may occur both in conscious and subconscious level. According to the Belks theory of extended self, people define themselves by the possessions they have, manage or create (Belk R. 1988). Aaker J. has shown how consumers prefer brands with personality traits that are corresponding with the personality traits that constitute their selfschemas (Aaker J. 1999). Kim C., Han D. and Park S. have researched the link between brand personality and loyalty. They did get positive support to hypothesis that the attractiveness of the brand personality indirectly affects brand loyalty (Kim C. et al. 2001). Tidwell P. and Horgan D. (1993) have showed that people use products to enhance self-image. Secondly, according to social identity theory, people tend to classify themselves into different social categories. That leads to evaluation of objectives and values in various groups and organisations in comparison with the customers own values and objectives. They prefer partners who share similar objectives and values (Ashforth B. et al. 2001). Fournier S. (1998) states that consumer-brand relationships are more a matter of perceived goal compatibility. Brands cohere into systems that consumers create not only to aid living but also to give meanings to their lives. Oliver R. (1999) argues that for fully bonded loyalty the consumable must be part of the consumers self-identity and his or her social-identity. Trustworthiness of the partner is a factor that has certain impact on the establishment of loyalty nobody expects a long-term relation with a partner that cannot be trusted. Trustworthiness is one criterion for measuring the value of the partner (Doney P. et al. 1997). Spekman R. (1988) calls trust a cornerstone of the strategic partnership. Morgan R. and Hunt S. (1994) posit that trust is a major determinant of relationship commitment: brand trust leads to brand loyalty because trust creates exchange relationships that are highly valued. Chauduri A. and Holbrook M. (2001) have showed that brand trust is directly related to both purchase and attitudinal loyalty. Many authors have accented that trust is important in conditions of uncertainty (Moorman C. et al. 1992; Doney P. et al. 1997; Morgan R. et al. 1994). Uncertainty may be caused by dependence or large choice: people tend then to prefer popular or familiar brands or partners. Many definitions describe loyalty as a desire to retain a valuable or important relationship (Morgan R. et al 1994; Moorman C. et al. 1992). That way the establishment of loyalty is predetermined by the importance of relevant relationship or selection. Weiss A. (2001) points out three aspects that may increase the importance of the relationship: strategic importance of a product; high risks involved in the transaction or costs incurred by cancellation of contracts. Hofmeyr J. and Rice B. point out that the more important the relationship is to a person, the more willing that person is to tolerate dissatisfaction in favour of trying to fix it. By contrast, when a relationship doesnt matter, then even the perfectly satisfied consumer can switch on to another product (Hofmeyr J. et al. 2000). A relationship can also be made important by personal approach. Various authors have compared loyalty with marriage (Lewitt T. . 1983; Dwyer F. et al. 1987; Gummeson E. 1998; Hofmeyr J. et al. 2000). Marriage is one of the most personal and important relationships. That means that intimacy is one determinant for importance of relationship. Lewitt T. (1983) has considered a role of salesman in making relationship more personal. Summarising the discussion above following figure   is presenting the major groups of factors affecting customer loyalty. The present study focused purely on customer perception of the relationship and the factors that have affected it and their loyalty or disloyalty. A useful extension of the study would be to couple such a study of how the service provider perceives the relationship and factors affecting customer loyalty or disloyalty. This would add factors such as customer profitability to the study, making it possible to focus on factors affecting customers that are most attractive to the company. In such a study, the customers and providers views on the relationship would be combined. As a result, one would identify potential gaps in the companys knowledge of the customer and also be able to eliminate potential misconceptions. Chapter 6. Chapter Outline. Presented work is built up of 8 chapters, dwelling upon the customers loyalty. Each chapter gives clear information on subtopics, which are logically combined to provide the reader with sufficient facts to understand the flow of the research. The first chapter is dealing with the background and justification for selection of the topic. Since customer loyalty is something more of what an enterprise must get from the customer, it is a very productive research product for the companies. As opposed to what the name suggests, is not just something that the customer has to build towards the enterprise. It is not just the customer who is being loyal to the company in the progress but also the company that has to maintain its loyalty to the customer The second chapter presents the hypothesis questions, which are being examined through the whole work. I come out with two hypothesis, which are as follows: Hypothesis 1: Factors such as satisfaction, trustworthiness, importance of relationship and image have a positive influence on loyalty; and Hypothesis 2: The relevance of factors affecting loyalty depends on the levels of loyalty of customers. The third and forth chapters puts light on the research methodology I have used to process the data and come to conclusions. I took into consideration secondary data, which originates from PacoNet Customer Satisfaction Survey carried out in November 2003 by professional market research company. Two software packages MS Excel 2000 and Stata 9.2 have been used for data processing and presenting the results of the research. In this chapter I also dwell upon the limitations of the research, which consists of time limitation, budget limitation, as well as demographical and methodological. The fifth chapter gives perception of the theory used for the thesis. It informs us, that theories of behavioral loyalty were dominating until 1970 considering loyalty as the function of the share of total purchases (Cunningham R. 1956; Farley J. 1964), function of buying frequency or buying pattern (Tucker W. 1964) or function of buying probability (Harary F. et al. 1962;). Contemporary researches consider and accent the psychological (mostly attitudinal and emotional) factor of loyalty (Jacoby J. et al. 1973; Oliver R. 1999; Chaudury A. 1995). These and other researches were used as a base for my own research proposal. And the last, sixth chapter provides with a brief outline of the research proposal stages. Having developed the hypothesis questions, and done a literature review we come to the conclusion that the findings of the present study reveal that it is not accurate to treat all customers equally in terms of methods of increasing their loyalty. The research supports the research proposition that the list of most important factors affecting loyalty is dependant on the level of loyalty of consumers. The overall satisfaction and importance of products build the foundation of any kind of loyalty. It shows also that reliability of products or trustworthiness of the supplier is most critical for behavioral loyalists and the image creation is the main tool for getting loyal customers. Therefore many factors were derived indirectly and with certain limitations, and they may lack some qualities considered in the theoretical part. There are multiple ways for further development of the model, but first there is need to elaborate reliable questionnaires for collecting the source data. There are several factors for building a customers loyalty which I could recommend. It is very important to communicate. Whether it is an email newsletter, monthly flier, a reminder card for a tune up, or a holiday greeting card, it is nice to reach out to a steady customers.   Another pleasant way is to provide customer service, to go the extra distance and meet customer needs, because customers remember being treated well. It is also very important to provide with employee loyalty. Loyalty works from the top down. If a boss is loyal to his employees, they will feel positively about their jobs and pass that loyalty along to the customers. Employee training should also be used, training them in the manner that to interact with customers. It is also of great advice to give customers a reason to return to the industrys business. For example, because children outgrow shoes quickly, the owner of a childrens shoe store might offer a card that makes the tenth pair of shoes half price. Likewise, a dentist may give a free cleaning to anyone who has seen him regularly for five years. It is also important to have products awareness, knowing what a steady customer purchase and keep these items in stock. It is possible to add other products and/or services that accompany or compliment the products that regular customers buy regularly. The reliability of the vendor is highly appreciated. If they say a purchase will arrive on Wednesday, they should deliver it on Wednesday. If something goes wrong, they should let customers know immediately and compensate them for their inconvenience. Vendors should be flexible, trying to solve customers problems or complaints to the best of their ability.

SABMillers Strategic position

SABMillers Strategic position Identify SABMillers Strategic position: In order to Identify the companys position; it is important to carry out its Business external analysis; it is also essential to identify its core competences and capabilities as well as stakeholder expectations in order to successfully identify the companys strategic position. SABMillers External Analysis: In order to asses SABMillers external analysis; I have constructed a PESTEL analysis (appendix 1); Porters 5 forces (appendix 2); THE BCG matrix (appendix 3) and its competition Analysis (appendix 4). After conducting Porters five forces of the Brewing Industry; I have found many interesting outcomes relating to SABMiller as the overall markets of the brewing industry arent clearly attractive; its performance depends on the ability to expand its market share and exploit opportunities in the emerging markets. However, the brewing industry in growing markets, which SABMiller operates, is highly attractive but not for new entrants; its especially attractive for the dominant players in the Industry; which in this case SABMiller is one of them. After analysing my Porters 5 forces; it is conclusive that it would be extremely hard for new entrants to compete in these emerging markets due to the high dominance of the main competitors. I have also observed other good points such as the low level of power within suppliers; however the power of suppliers is increasing especially in USA due to the rising costs of energy and Aluminium but in under developed countries; it is conclusive that SABMiller has the overall power of its suppliers; as its an international brewer; finding suppliers wouldnt be a major issue. Its Conclusive that the power of Buyers is very high; due to the end consumer having a growing number of choices from other brewers as there are no switching costs; the end consumer can choose any drink to have so its up to the brewing companies to emphasise its targeted customers to drink its products. It is also conclusive that the power of substitutes is low but it is significantly growing. Due to the modern consciousness of healthy living; low calorie beers and non alcoholic beverages are increasing in volume; this doesnt affect SABMiller as much compared to other brewers as the company it self produces alternative products to beer such as the low calorie versions; SABMiller has also recently entered wine and soft drinks market in Africa as Im predicting more of this similar strategic activity will occur in other markets. From the PESTEL; Porters 5 forces and the Competition Analysis; I am concluding that SABMiller operates in developing as well as matured markets. These markets include very challenging aspects which in the past has limited the threat of new entrants. These markets include very tough competition; as rivalry in the Brewing Industry is increasingly high. These markets tend to have a fragmented brewing industry and it is essential to have extensive capital and knowledge to setup a brewing enterprise. In developed and more matured markets the industry is consolidated and dominated by a few, larger players. As such, these large companies, like SABMiller tend to own multiple brands with different market positions. In this market, it is much easier for competitors to launch rival products that compete directly on price and thus eroding market share. After analysing the companys competition; SABMiller has and still is experiencing this problem; For example in North America; especially recently where InBev has bought Anheuser-Busch; this has helped the dominant Brewer to enlarge a further space between themselves and SABMiller; which has affected the companys market share future plans deeply. SABMiller now has to come up with new innovative ideas to try and close the gap between them and A-B InBev. The American Industry is the largest brewing market by value as rivalry is now more intense than ever; meaning more competitors are entering into a price war with SABMiller. This has become a huge threat for SABMiller; but it does also hold opportunities to weaken this threat down. For example the company has the opportunity to acquire more stakes in the Brazilian Market; or become the owner of China resources which is the largest brewer in China. Both these markets I have mentioned are matured yet and still hold many growing estimates. After conducting a stakeholder analysis; I have come up with simple assessments that SABMiller had to make some strategic choices to please its key players. SABs acquisition of Miller was largely due to the pressure from the London Stock Exchange. It is felt that SAB was at risk due to its over reliance of soft currencies in certain market. This resulted in a poor performance in the London Stock Exchange in the year of 2000. Even though their core competences were elsewhere, SAB went on with the takeover to please the stakeholders. Media and analysts have come out with unfavourable reports on SABMiller. These particular stakeholders needed to be pleased. From my BCG Matrix; its conclusive that its Western European operations are a dog and SABMiller should ideally get out of the market as further investment will end up little positive results. But this wont be possible due to the investors expectations of a market presence in Western Europe. Internal Analysis: SABMillers Core Competences: Core Competences are the skills and abilities by which Resources are deployed through an Organisations activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain. (J.S.W. 8th Edition; p852: Glossary) From the very beginning, SABMiller had developed unique competences in analysing its business environment; meaning that the company expertises in analysing a market that is aiming to operate in. SABMillers activities are heavily influenced by the political, social and legislative environmental factors within which it operates; meaning this has made the company proactive when dealing with macro factors. SABMillers South African culture has shaped the strategic development of the company. It is this culture, which makes their distinct capability of entering emerging markets less imitable. As highlighted in the case study, SABMillers strategy represents a synthesis of learning based on the historical developments of the company (J.S.W. 8th Edition; Case Study: SABMiller; McQuade, 2006). Mapping out the early days in South Africa, SABMillers strategy was flexible and responsive to the market. SABMiller acquired local brewing businesses to enable them to grow and overcome certain business restrictions through acquisition. SABMiller also expanded their portfolio to include wine, matches and the Sun City casino resort. When the political regime and the regulatory environment lifted, SABMiller developed three mega-breweries in South Africa. By being at ease in these types of challenging environments it enables SABMiller to aggressively grow and capture market share when arguably other firms would be paralysed by fear. Instead, SABMiller are able to scan their external environment and turn threats into opportunities. In doing so, providing a distinct set of capabilities, which is very difficult to imitate. The tough African roots have given SABMiller the confidence and self belief to come up with solutions during tough conditions in developing markets. The company is also very experienced in dealing with very sensitive governments and local communities. These efforts also show that they are very flexible. SAB used its expert management skills learnt from Africa, to turnaround Millers fortunes. Traditional SAB system of employee performance rating was used in Miller. These efforts earned them the name turnaround specialists. The parenting style of SABMiller adds value to the breweries. In the new markets they retain the brand, but transforming the business by adding quality and consistency to the beer. They develop the marketing, distribution productivity and capacity of the business. SABMiller is highly experienced in acquisitions and takeovers. This competency gave them the confidence to take risks and takeover high profile targets like Grupo Empresarial Bavaria. As in the case of Miller, SABMiller added further value in to the company by bringing its own operating practices and management skills. After conducting the companys analysis; it is conclusive that SABMiller has shown outstanding flexibility from its very origin. Its decisions during the apartheid period show a core competency in developing strategic choices and environmental scanning. The emergence of competitors in its prime markets is a case of concern. In future, SABMiller will have to face tough competition from its rivals; a glimpse was seen in the USA market. The key to SABMillers success will be its strategic brand management and its brand portfolio. SABMillers generic strategy and core competences The BCG Matrix mainly relates to the markets which SABMiller is currently operating in. These tools all relate to the brewing Industry; as its the industry which relates and particularly affects SABMiller. The chosen sequence for the analysis not only provides an insight into SABs environment, but also facilitates assessing opportunities for the future, as most investors see a need for SAB to enter the developed market.

OUR SENSES: A DANGEROUS GIFT :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  The issue of our mistrust and or trust in our humanly senses remains a building block for philosophies of many notorious philosophers. In the discussions â€Å"The Allegory of the Cave† written by Plato and â€Å"Meditation: The Path to Enlightenment† by Siddhartha Gautama, The Buddha, both analyze the issue of our senses. Both philosophies are reasonably logical and realistic in their approach to the humanly senses and whether or not they should be trusted or mistrusted, however, they seem to contradict each other somewhat.   Ã‚  Ã‚  Ã‚  Ã‚  In both discussions, our senses are essential to reach our so called goals in life: In Plato’s discussion, our goal is to find Truth; and in Buddha’s discussion, to reach enlightenment. Plato’s philosophy holds senses to be of an untrusting or false guide to reality. He argues that if everyone relied on their senses to interpret reality and find the Truth, everyone has different perceptions of their senses and the reality would be different depending upon the individual. Basically Plato suggests that our senses can be a distraction from the Truth, and therefore, should not be trusted. Buddha’s reasoning of the senses is slightly different from those of Plato. Buddha chooses to not focus on the falsity of our humanly senses, but the element of imagination and how that can alter our perceptions. If we see something as it really is, without integrating our imagination, we are given a freedom to come to a true understanding of the world. Th erefore, Buddha suggests that the senses can be trusted, however the imagination is untamed and when mixed with our senses, creates a distorted perception. The main discrepancy between the two philosophers is that Plato believes that senses themselves should be mistrusted, and Buddha believes that only our senses combined with our imaginations are to be mistrusted.

Norma Rae Essay -- Capitalism Governmental Essays

Norma Rae In the film Norma Rae, the textile workers were unsatisfied with many aspects of their Capitalistic work environment. They fought to form a union so that they could change the undesirable characteristics to better meet their needs. Political, environmental and cultural processes all played a part in the workers struggle to form an effective union. Unlike the film, Matewan, in which the coal miners worked under feudal control, the employees of the O.P. Henley Mill worked amidst a Capitalistic Economy. The key difference between the two, is that the inhabitants of the town of Matewan did not have other choices of employment and the characters in Norma Rae had the ability to go into the free labor market and be active participants, choosing who they wished to work for. Throughout the film there was evidence of other forms of employment in Henleyville. There were jobs in town that required a higher degree of education that the workers in the mill may have received, a schoolteacher or a police officer for example. However, there were various other jobs in town did not require as much training. Some of these other job opportunities included working at the motel or in the local restaurants or bars as a waiter, a waitress, or a bartender. There were attendants at the gas station and workers at the grocery and convenience stores. In addition to these other choices of employment there was also a different economic system that the workers could have chosen to be a part of. Self – Employment existed in Henleyville. When Norma Rae is talking to Sonny Webster, before they went out on a date, they reminisced about when they were younger. â€Å"You used to come into my Mama’s bakery,† be remembered. The ... ...to promote the union without being fired. He explained that she could wear buttons on her shirt, hand out fliers during breaks and other additional freedoms. Eventually, the workers set aside their inhabitations and voted 373 to 427 in favor of the union. When asked, â€Å"What are you gonna do now?† Norma Rae said, â€Å"live – what else?† The question that the workers at the O.P. Henley Mill were faced with was not, where to work. They had the freedom to choose their employer. The workforce learned that they did not need to be trapped in an insufficient working environment and that by forming a union they could manipulate the parameters set by the Mill Company, to meet their requests. Works Cited West, Andrew. Capitalism.org West, Andrew. Capitalism.org

What Makes an Effective Leader

The sum of those qualities of Intellect, human understanding, and moral character that allow a person to Inspire and control a group of people successfully. Leadership can generally entail a lot of different aspects, however the most influential leaders I have had in my life had been people that inspire me to be better than I am. I feel as though the majority of people today have a misconstrued definition of leadership because they usually associate leading with commands and authority. While those traits do have a lot to do with leading, they should be receded by traits such as dependability, Integrity, and loyalty.If you look at the most successful leaders throughout history, you rarely find people that were followed because they were given a position of authority. You look at people like Gandhi, Martin Luther King Jr. , and Abe Lincoln not because people had to follow them, but because people wanted to follow them. They were people with outstanding character. One of my most memorab le moments at boot camp was when one of my Drill Instructors got on to one of the squad leaders for calling another recruit derogatory names. Our Drill Instructor told us that people will never follow you because they have have to.They will follow you because they want to, and that is what leadership means to me. The most effective form of leadership to me is not asserting dominance, but rather leading by example. I follow the man conducts himself in the manner that I wish I could. When I see someone who does everything they are supposed to, do it in the most ethical and effective manner, and go above and beyond I usually always look up to them. I as a Marine feel that It Is my Job to be the best. I don't expect people to espect me just because I am a Marine, I expect people to respect me because I conduct myself in such a manner that I earn their respect.That to me is leading by example. Nobody should have to explain to me the correct way to conduct myself as a human being or Marin e, because those things dont require any exceptional intelligence, they require a dedication to doing what you know Is the right thing to do. It can be even the smallest things such as having a fresh haircut and a clean shave. How can you respect or want to follow a Marine that can't handle the everyday things? I do my best to lead by example is every fashion that I can. I try to be the best at everything I do.In summation leadership is not dependent upon if people do what you say, rather it is dependent upon if people want to do what you say. The best way to have people want to follow you is to lead by example. In order to set the example you have to be dedicated and motivated In everything that you do. That Is leadership and leading by example to me. What Makes an Effective Leader By tuckCman Leadership: The sum of those qualities of intellect, human understanding, and oral character that allow a person to inspire and control a group of people preceded by traits such as dependabil ity, integrity, and loyalty.If you look at the most to them. I as a Marine feel that it is my Job to be the best. I don't expect people to respect me Just because I am a Marine, I expect people to respect me because I human being or Marine, because those things don't require any exceptional intelligence, they require a dedication to doing what you know is the right thing to do. dedicated and motivated in everything that you do.

Case Study: Wheelworks

Running head: Case Study: Wheelworks Case Study: Wheelworks Principle of Management After analyzing Wheelworks’ compensation and benefits structure, I have found that this organization meets every need demanded by its employees and motivates them in every level. When it comes to needs and motivations, there are two commonly used theories that explain each step. One of the most commonly used theories to explain the levels of needs and motivators is Maslow's hierarchy of needs. The other commonly used theory when explaining levels of needs and motivations is Herzberg’s Two  Factor Theory.Maslow's Hierarchy of Needs Starting at the bottom with physiological needs and moving upwards to safety, love/belongings, esteem, and eventually reaching self-actualization, Maslow's hierarchy of needs is often shown as a five level pyramid. Wheelworks meet its employee’s first need, Physiological needs, just by paying them a salary. When Wheelworks pays its employees, it allows each employee to buy food, water, and pay for a shelter and clothing to maintain a constant body temperature.This first need on Maslow's hierarchy of needs is essential and without it, humans would not be able to survive. Wheelworks meet Maslow second need, safety, by providing its employees with benefits such as health insurance, bonuses, and 401k plans. Because of the plans that Wheelworks offer its employees, areas such as financial security and health and well being are covered. Love and belongings, the third level of Maslow's hierarchy of needs, is also covered by Wheelworks. Humans need to feel that they belong and are loved.Due to the positive atmosphere that Wheelworks offers, its employees feel loved and like they belong to the group. Due to this, Wheelworks also meets Maslow’s third need. The forth level of Maslow's hierarchy of needs is esteem. Wheelworks also cover this level by recognizing its employees for its qualities. By recognizing each of its employee†™s qualities, Wheelworks helps them build a stronger self-esteem and self-respect, covering the forth Maslow's hierarchy of needs. The fifth nd last level of Maslow's hierarchy of needs is self-actualization. This level of Maslow's hierarchy of needs has been already reached by Wheelworks employees because of their love for the sport of cycling. Many of Wheelworks employees are highly educated and have better opportunities in other companies, but their love for cycling keeps them working at Wheelworks helping them reach Maslow’s need of self- actualization. Herzberg’s Two  Factor Theory Unlike Maslow's five level hierarchy of needs, Herzberg’s theory has only focuses in two factors.Herzberg believed that there is a two-step approach to understanding employee motivation and satisfaction. These two steps are the hygiene factors and the motivator factors. Hygiene factors consist of the need to for a business to avoid unpleasantness at work. † If these fac tors are considered inadequate by employees, then they can cause dissatisfaction with work  Ã¢â‚¬Å"(tutor2u. net). Wheelworks meet the hygiene factor by providing a good salary, pleasant work environment, and health and 401k plans.These factors are not taken in account when one measures satisfaction, but the absence of these will cause dissatisfaction. The motivator factor is based on an individual's need for personal growth. Wheelworks meet this factor by recognizing its employee’s qualities, challenging them, and giving them responsibilities. By doing this, Wheelworks employees stay motivated achieving above-average performance and effort. Number One Motivator Having a passion for the sport of cycling has become Wheelworks’ employees’ number one motivator.Many times, one would think that salary, health benefits, and good working conditions would rank high when it comes to job motivation, but without love of the work itself, all of these benefits would not be enough to motivate one’s employees. The main reason Wheelworks’ employees perform above-average and put an extra effort to do the job better is because their love for the sport of cycling. As long as Wheelworks provide its employees with the hygiene and motivator factors, its employees will stay motivated. Financial RewardsEven though that passion for the sport of cycling has become Wheelworks’ employees’ number one motivator, financial rewards also helps motivate them. One of the many ways that Wheelworks motivates its employees financially is by paying them the highest possible wage. By doing this, Wheelworks makes sure that its employees are well paid motivating them to stay within the company. Another method that Wheelworks uses to financially reward its employees is by offering vacation and sick pay, 401k, profit chairing, and health plan.By offering these benefits, Wheelworks ensures that its employees feel well taken care of resulting in a motivat ed staff. The last financial reward that Wheelworks uses to motivate its employees is giving them seasonal bonuses. Each bonus is subject to how good the company does during the season. Due to this, each employee is motivated to improve its performance which will eventually result in a bigger bonus. Commission One of the best strategies that Wheelworks has used to motivate its sale persons, but yet, maintain a superior customer services is giving seasonal bonuses instead of commission.Due to this strategy, Wheelworks customers receives a superior customer crevice and do not feel pressured to buy an expensive bike. This strategy also improves team work instead of having a constant competition among team members. Even though this strategy has worked greatly for Wheelworks, it could be improved. One way Wheelworks could improve its number of units sold is by giving a reward to the person that averages more units sold per hour in a week. For example, the person that averages the most un its sold per week could choose one day to leave early and get paid for the whole day.Rewards like this one could significantly increase the number of units sold increasing the yearly revenue of Wheelworks. Works Cited (n. d. ). Retrieved April 10, 2010, from tutor2u. net: http://tutor2u. net/business/people/motivation_theory_herzberg. asp Janet A. Simons, D. B. (1987). Retrieved April 10, 2010, from honolulu. hawaii. edu: http://honolulu. hawaii. edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow. htm W. Griffin, R. (2007). Management. Houghton Mifflin. Wheelworks_part1. (n. d. ). Retrieved April 10, 2010, from

Why did the First World War end when it did?

This was war on a scale that the world had never seen before, and Hough It would never see again. However, a question that Is often glossed over Is why the war ended on Armistice Day, at the eleventh hour. It is a combination of different events, all leading to the fact that Germany ran out of food, supplies, and manpower, and had to surrender. Furthermore, as America had entered the war the previous year, the Germans realized that they were going to lose, and that drawing it out would only Increase casualties and long-term effects. One of the reasons Germany was ‘bled white', to use their own term, was the successful British NavalBlockade, which caused mass starvation, and turned the country on itself with riots and the naval mutiny. The American president, Woodrow Wilson, had been campaigning for a ceasefire, which led to the US invasion of Germany, and when Kaiser Wilhelm abdicated on the 9th November, the war was all but over. To begin with, the main reason for the end of t he war was a simple lack of supplies on all sides, but Germany had especially been hit hard. Although both sides launched renewed offensives In early 1918 In a desperate attempt to win the war, both efforts failed.The fighting between exhausted, demoralized troops continued to approach a stalemate until the Germans lost a number of individual battles and very gradually began to be pushed back. A deadly outbreak of influenza, meanwhile, took heavy casualties on both sides. Eventually, the governments of both Germany and Austria-Hungary began to lose control as both countries experienced multiple mutinies from within their military structures, and due to mass starvation, many call riots were held In Berlin. The naval war Is generally considered a side show In worldWar l: in fact it was a critical part of the war, with especially the naval blockade of Germany being hugely important. If the Germans were to be stopped it would have to be done by the French Army, but what the British did have was the Royal Navy. The Government ordered the Royal Navy to immediately cut the flow of raw materials and foodstuffs to Germany, which would not affect the German offensive, but it was the launch of a war of attrition which would ultimately play a major role In the Allied victory. Another factor that contributed to the end of the war was the introduction ofAmerican troops into the fighting. On April 2, 1917, President Woodrow Wilson asked a special session of Congress to declare war on the German Empire, saying â€Å"We have war in a positive light, claiming it would â€Å"make the world safe for democracy† and that it would be a â€Å"war to end war†. On April 6, 1917, Congress declared war, and in the end it was Germany's use of U-boats that pushed America into a corner and ultimately to declare war: on February 4th, 191 5, Germany announced that merchant shipping in a specified zone around Britain would be legitimate targets.They added hat this would include neutral ships because many Allied ships had taken to flying the flag of a neutral nation to assist its safety. America's military build-up was (relatively) slow: General Perishing demanded a million men, to which the American Congress replied it could gather 420,000 by spring 1918. However, the anticipated influx of military supplies from America never materialized. For the most part the troops fought with equipment supplied by the Allies (including the recognizable helmet). American troops saw their first action in May 1918 in fighting alone at the Manner River.In June 1918, Perishing ordered an all-out attack in the Saint-Mile area of Eastern France. Casualties were high but the attack forced a German retreat that (combined with other Allied offensives along the Western Front) put the entire German army on the back foot. In early October, the Americans pushed through the Argonne Forest. The German High Command began to crack in the face of the persistent Allied onslaught. General Ultrasound was forced to resign and flee to Sweden, a feeling of mutiny spread among the Kaiser's naval units, and the Kaiser myself was forced to abdicate on November 9.On the other hand, the American assistance nearly came too late: as both sides desperately tried to gain the upper hand in 1918, Germany very nearly won an attack, as the American troops were delayed. Fortunately, Willow's men eventually arrived, and this attack can be regarded as the tipping point that signaled the final stages of the war. The war ended for a number of different reasons, all leading to the fact that there was no longer anything to fight with, or anyone to Join the German army.Many Americans live that America won the war, and the truth is much more subtle: it is true that the war would have lasted longer without the Allied support of Woodrow Wilson, but it was not a war of tactics, but of attrition. There is no denying that the First World War was a catastrophic failure of humanity, and the question s of motivation have been analyses endlessly. I believe that the reasons for the peace treaty are equally interesting, and as it shows that some good can come from four years of atrocities, it is clear why we remember all those who have died in war on the 1 lath of November. Word count: 1019 Ben Phillips