Category: Business Success

This study explores the connections between the use of communication technologies (ICT), the advantages that an organization receives from membership in a rural industry cluster, and the success of rural businesses. A study of 333 companies located in northern Lower Michigan showed a strong association between (a) ICT adoption and business cluster gains, (b) ICT adoption and self-reported business success, and (c) the business cluster profits and the business success. While analysis suggests that these partnerships may be industry-specific, results suggest that rural enterprises ‘ implementation of ICT may have implications for the region’s social capital and business success and may help reduce the digital divide faced in rural communities.

The analysis shows that company characteristics were associated with business success and were significant predictors of business success independent of the sector of SMEs. Also, more productive businesses appeared to have more staff, have more business income beyond their region, and have more funding sources. Initially, all three ICT indicators shown to be associated with business success and the resulting multiple regression; only a significant factor was the importance placed on the successful use of ICT. This analysis indicates that predictors such as ICT capacity readiness and ICT dependency on the workforce could be related to business success through the importance placed on the successful use of ICT. Additionally, it observed that cluster membership has significant advantages for rural SMEs ‘ overall success.

This study found a significant relationship between ICT and cluster benefits; however, the essence of this relationship should explore in future research. ICT use may improve the benefits of cluster membership, but the reverse is just as possible. It may be that the now clustered companies are more likely to use ICT to communicate with each other. Future research should, therefore, concentrate on identifying the causality in that relationship. Suggest time-series tests or trials check these relationships. Finally, both the strength of the cluster and the advantages the business receives from the cluster forecast the performance of ICT companies. Reasonably, because of the nature of their business, ICT firms are more likely to be linked to networks. What the findings indicate is that how effective they are will affect the degree to which ICT companies directly linked to business networks.

This research adds to the current perception of business success predictors for rural SMEs by exploring the use of ICT and advantages resulting from business cluster membership. Three of the results, in particular, stand out for their ability to guide policymaking. One, the powers of the cluster found to forecast business success. The received wisdom about the benefits of membership in business clusters should be a key consideration for policymakers and community leaders looking to grow enterprises in rural communities. Persuading agricultural companies to form a band together and building clustering opportunities are approaches that politicians should follow fruitfully.

The significance rural businesses put on the use of ICT in their business processes was a powerful indicator of business success. Business owners who have modern computer systems and workers with computer literacy have appeared to achieve better business success. It should remember that the other indicators, such as ICT capacity and reliance on ICT, did not meaningfully forecast business success. The mixed results about ICT’s role in business success indicate that further analysis of this relationship is required. In the absence of information on the specific role’s ICT can play, pure network growth is undoubtedly inadequate to boost the economic health of companies.

What our research suggests, however, is that the convergence between ICTs and business clusters could be an essential area to explore. Online tools linking rural businesses can produce the cluster benefits found in our analysis, as well as prior studies. Fourth, decision-makers need to be attentive to the sector they deal with in their efforts to improve the economic health of rural enterprises. Although ICT use in the ICT industry did not predict business success, this does not mean that ICT is not significant. We assume the statistical non-significance of the use of ICT for this sector stems from the fact that there is little differentiation within the industry between businesses. Of course, ICT businesses will rely heavily on ICT for their business processes. The value that business owners put on ICT use in their business processes predicted their economic success for the wood products and metalworking industries.

The ability to actively think and solve complex problems is a major differentiating factor between humans and other organisms. Deductive and inductive reasoning are executive functions that can only be performed by the human brain. Though we are naturally equipped to be able to carry out such an activity, it is safe to say that not many people know how to employ this God-given capability to the best level possible in the different areas of life.

Critical thinking, therefore, is not as common or as simple as it sounds as many individuals are yet to understand and take advantage of it. The select few who have been able to identify its benefits and train their minds to perform this function effortlessly have discovered a powerful tool that can be applied to every situation one might encounter in the personal space and in business ecosystems.

The power of being able to critically think when faced with situations that prove difficult, cannot be quantified as the possibilities it offers are endless. Problems are seen as stepping stones – a means to an end, not a barrier. They are objectively viewed as an opportunity to find out something new and to understand the various angles to the challenge and this ability is the tool that enables and fosters the exploration of the issue.

Those who study human behavior in order to implement that knowledge when it comes to driving sales of their products, have to do so with the aid of an objective tool such as critical thinking. Critical thinking helps with analyzing data and quickly identifying what information is really important when it comes to growing a business, getting customers, retaining them, and scaling.

This skill is multifaceted and can be applied to every industry but to put this in context, this article will lay out its importance to an entrepreneur. The first step to running your own business on whatever scale is to first have an idea of what novelty or re-modeling of an existing market or product, you want to proffer but not all ideas are worth paying attention to either because of a lack of demand or target market or the fact that it is simply not feasible. The ability to find out whether or not you should follow through with that idea is thanks to being able to critically weigh all the options.

Many businesses start but only a few succeed – true, it could be due to other factors other than just a lack of patronage, lack of finances could be implicated but it goes without saying that a majority of those enterprises that do not make is as a result of not being able to use this thinking tool.

In the instance where the business is already thriving, owners need to be able to spot and analyze the changes that occur in that sphere in order to re-strategize or re-define priorities, else they face the possibilities of fading out of the market. People change their preferences every other day, some of us get bored with using the same products time and again, as an entrepreneur critical thinking helps you pick out the patterns of what’s hot and what’s not from carefully paying attention to the rack that needs re-stocking every other day and the shelf with products that need frequent dusting.

The people working for you might not be abreast with the happenings of the industry or they are solely focused on performing their specific roles, as the head and the driver of that team, you need to be able to communicate what you need them to prioritize, implement, and totally discard, in line with the direction the business might be taking at every point in time – doing this successfully and effectively follows the principle of critical thinking.

As an entrepreneur, principles and core values should not be negotiated but there are also things that are essential to an organization’s growth that requires one to be malleable. A particular product in your company’s line seems to be moving the slowest, critical thinking if used, brings this to your notice, helps you figure out the ‘why’, and helps you make the best decision possible whether that means a re-branding or re-packaging or removal.

It cannot be over-emphasized that to be a successful entrepreneur the place of critical thinking cannot be ruled out – it is as relevant as monetary resources and human capital.

Introduction

For an organization, people act as an important asset that helps the entity capitalize on its strengths and eliminate its weaknesses as much as possible (Kerr, 2017). An organization’s business success is largely dependent on its people who provide their services differently as stakeholders. Therefore, to elaborate on the importance of people to an organization’s business success, it is imperative to examine how different groups of people stakeholders play their contribution. People are divided into two categories: internal and external. The focus of this essay is mainly to elaborate on the reasons for which internal people (managers and employees) are important in making an organization successful in its business. Others argue that technology is the future for organizations any people within can simply be replaced by advanced technology that can-do tasks efficiently, cheaply and productive. (Corporate Finance Institute, 2014)

1

investors play an important role in an organization’s success because they provide the necessary financial support which the firm needs for various reasons including financing daily business activities or working capital operation, etc. As people, investors contribute to an organization’s business success by providing the money to pursue value-adding projects and exploit different market opportunities and deal with competitive pressures and threats. Furthermore, by investing heavily in an organization, investors play an integral role because they have a financial stake in the success or failure of the business. Therefore, investors also contribute by sharing their ideas and growth prospects. Investors are also important to organizations because they bring their professional connections/contacts and non-financial resources to help the business meet industry-specific challenges. For every business organization, investors are also important because, with their voting rights, investors appoint the highly qualified board of directors capable enough to deal with all business aspects (such as corporate governance, making a viable business decision, and appointment of senior management, etc.). (Fox and Lorsch, 2012), (Corporate Finance Institute, 2014)

2

For an organization, consumers play an important role in their business success because consumers are the people who purchase the final product of an organization. Consumers help an organization become successful by purchasing its products and help the business generate more profits to cover operating costs and expenses. Consumers are also important to an organization’s business success when such people recommend the products to other people in the same target market. Due to this word-of-mouth recommendation by consumers, organizations save more on their advertising expenses that, in turn, generate profits. (Corporate Finance Institute, 2014)

3

In an organization, managers are important because they organize, control, and direct financial and non-financial resources (such as human capital and assets) to make the firm successful (Economy, 2013). Managers also play an integral role in an organization’s business success because they design such policies, rules, procedures, and internal controls with which an organization achieves its full corporate potential in producing products and services that address and satisfy all stakeholders (investors and consumers) (Suleman, 2013). Managers also make organizations successful by recruiting and selecting only talented people.

Managers control employees’ productivity, actively engage them in corporate decisions, and keep them encouraged to create real-value and contribute to business success (Heathfield, 2018). Managers act as a bridge between senior management and middle/lower-level employees (Reh, 2019). So, managers are important in an organization to enforce and implement the decisions made by senior management. Managers contribute to organizational success by promoting a positive working environment so that every workplace member is geared towards the achievement of commonly shared corporate objectives. For this, managers design performance measures and reward high-performers. They promote collaborative efforts within teams so that all organizational resources work in alignment with each other towards success.

4

Internally, employees are the most important asset an organization has. They contribute to an organization’s business success by bringing their skill set, knowledge, and experience to the workplace and work productively towards the achievement of pre-established and commonly shared corporate goals and objectives (Alton, 2015). By designing innovative products, features, and services, employees contribute to organizational success. Furthermore, employees help an organization grow its business by consistently engaging in Research and Development efforts, and promoting what the business offers to the target market. Employees are important to an organization because they are the basic bridge that links the organization with its customer base (Ryan, 2016). Employees give up their personal lives and leisure time to work for their organization. Employees make industrious efforts to increase customer satisfaction by interacting directly with the target market to help the business grow.

Employees contribute heavily to an organization’s business success by collecting knowledge about customers’ experience and transform their experience-based feedback to re-create creative products, features, and services (Levine, 2018). Apart from this, employees are considered an important asset to an organization for the reason that they enable the business to exploit and make a profit from under-served and un-served market areas. This is so because employees look for, identify and work on such opportunities that are not easily observed by competitors. Eventually, employees make their organizations successful by working hard to grow within new marketplaces.

As customers are the main source of operating income for organizations, employees play an important role in this area as well. There are times when consumers become dissatisfied and are not happy. They are ready to switch to competing brands the moment their needs and concerns are addressed by business rivals. Employees are important in an organization because apart from turning potential customers into regular consumers, employees make distinguished efforts to retain the customer base (Ryan, 2016). Before customers switch their purchases, employees come forward and interact with customers to know about their reasons for dissatisfaction. This way, employees are important for organizational business success as they handle customer complaints and feedback to serve customers better than before. Management theories all require employees to be effective and technology cant simply be managed as technologies do, management theories such as Douglas McGregor Y Theory argue that employees are a vital asset to any company or organization and with proper management employees will achieve an organization’s goal and objective that technology can. (Wood, 2018)

Others argue that in an organization business automation will be better than employees for a variety of reasons. Financially, automation helps organizations become more successful in boosting their profitability because automation replaces human labor. As a result, automation reduces operating expenses associated with employee payroll that improves the bottom-line (Uzialko, 2019). Consequently, an organization can save more on their costs and invests the proceeds in exploiting growth opportunities and pursue value-adding projects to create stakeholder value.

Apart from this, automation is better than employees because the possibility of human errors is minimized. Furthermore, automation can help reduce wrongdoings and fraudulent activities making it far better than employees. Automation is more important than employees because the former can achieve higher productivity within less time than employees who can do the same amount of work in more time. Automation can do more jobs at the same time. Automation can help an organization achieve more targets and efficiencies by performing the same job in less time. As a result, the operating costs associated with utility bills are minimized when employees are replaced by business automation.

Moreover, the use of automation is better than employees because automation reduces the need for covering losses associated with occupational health and safety. With automation, an organization can reduce the possibility of accidents in the workplace. Automation is also better than employees in a way that the former does the same work once while the latter needs to perform repetitive tasks in case of errors and mistakes (Uzialko, 2019). Therefore, automation is better than employees because automation can continue performing repetitive tasks without any exhaustion. In other words, automation is better in making it possible to achieve more output and productivity without any delay and fatigue. Employees that are free from repetitive tasks can divert their attention to more critical business aspects (Uzialko, 2019). Additionally, automation is better than employees because automation can collect information and knowledge in an instant and can generate reports in a blink of an eye so that viable business decisions could be made on time.

But as discussed, the human element will always be required to achieve certain tasks such as the interaction between customers and employees, and some complex tasks within an organization can simply be done better with people within an organization. Unlike automation Employees can be scaled through the organization with essential knowledge and flexibility that the competitor doesn’t have, machines and technology can’t be promoted throughout an organization, they don’t retain any special skills or knowledge and competitors can acquire the same automation you possess and out-compete the organization.

Conclusion

People are important to an organization all stakeholders make an important part of an organization employees are the most important stakeholder with an organization or company and without them a company would seize to function customers, management and investors are also pole that organization needs to thrive managers are essential to the internal systems of an organization, investors finance companies and organization and customers finance business by purchasing goods and services and keeping organizations alive. Others argue some of the stakeholders and people within an organization can be replaced in the future with technology for an even more efficient and profitable organization, but employees will always play a vital role in the coming future.

References

1. Corporate Finance Institute. (2014). Stakeholder – Learn About the Different Types of Stakeholders. [online] Available at: https://corporatefinanceinstitute.com/resources/knowledge/finance/stakeholder/.
2. Alton, L., 2015. How Employees Make or Break Business Success (And How You Can Lead the Way). [Online] Available at: https://www.business.com/articles/how-employees-make-or-break-business-success-and-how-you-can-lead-the-way/.
3. Economy, P., 2013. 7 Things Every Great Boss Should Do. [Online] Available at: https://www.inc.com/peter-economy/7-things-every-great-boss-should-do.html.
4. Heathfield, S.M., 2018. Tips for Effective Management Success. [Online] Available at: https://www.thebalancecareers.com/tips-for-effective-management-success-1916728.
5. Kerr, J., 2017. Your People Are Your Most Important Asset. [Online] Available at: https://www.inc.com/james-kerr/your-people-are-your-most-important-asset.html.
6. Levine, S.R., 2018. Motivated Employees Are Key To Your Company’s Success In The Digital Age. [Online] Available at: https://www.forbes.com/sites/forbesinsights/2018/03/12/motivated-employees-are-key-to-your-companys-success-in-the-digital-age/#3da5edca2ddc.
7. Reh, J., 2019. The Role and Responsibilities of a Manager. [Online] Available at: https://www.thebalancecareers.com/what-is-a-manager-2276096
8. Ryan, L., 2016. Five Reasons Employees Are More Important Than Customers. [Online] Available at: https://www.forbes.com/sites/lizryan/2016/11/01/five-reasons-employees-are-more-important-than-customers/#4c89d8f0db3e.
9. Suleman, R., 2013. Why Managers Are So Important to Business Success. [Online] Available at: https://www.tlnt.com/why-managers-are-so-important-to-business-success/.
10. Uzialko, A.C., 2019. Workplace Automation is Everywhere, and It’s Not Just About Robots. [Online] Available at: https://www.businessnewsdaily.com/9835-automation-tech-workforce.html.
11. Fox, J. and Lorsch, J.W. (2012). What Good Are Shareholders? [online] Harvard Business Review. Available at: https://hbr.org/2012/07/what-good-are-shareholders.
12. Wood, S. (2018). Where it All Began: The Origin of Management Theory | Great Managers. [online] Great Managers. Available at: https://www.greatmanagers.com.au/management-theory-origin/.

Diversity in organizations represent to the equality in employees and also opportunities are given without any kind of gender bias, culture, age, language, regional bias. In organizations diversity is really essential because while working with different kinds of people at one place it helps to improve the company’s name and fame by their various sort of modern and improvised thinking procedure. In every organization diversity is a most important factor for their success criteria. It has enormous benefits for every entity. A versatile organisation always hires people from different backgrounds at all levels who brings a dynamic knowledge of every field, a vast experience and expertise for their business which helps them to take all professional decisions. Human Resource of organisation keeps a focus on various parameters while hiring the staff with different age groups, both genders, skilled generation from overseas, disable people, Indigenous Australians and people from culturally and linguistically diverse (CALD) backgrounds which helps to become a diversified organisation. Diversity plays an essential role that leads to success. For instance, in united states of America law was passed to encourage the diversity in workplace, corporate system encouraged the diversity in their workplaces and they made it mandatory.

Working environment diversity is currently something most organizations strive to accomplish because it helps to improve an organization’s reputation and its growth internationally. While organization’s goodwill and work environment consideration are certainly significant objectives worth seeking after, working environment decent variety has numerous other prompt and unmistakable advantages related legitimately to organization’s main concern. Thus, workplace diversity is not just a politically correct fad – it is a serious competitive advantage. Companies with more diverse workplace outperform its competitors and achieve greater profits.

Benefits of Diversity in Organisation to lead the Success

1. Various experiences and thoughts-People come from different boundaries to work with different kinds of innovative thoughts and experience. Any issue, if observed in the organization, there will be alternative solutions to solve the issue. Employees where diversity would be high at workplace, worker will enjoy the maximum benefits of different perspectives, which is highly beneficial when it comes to planning and executing a business strategy.
2. Enhanced Creative thinking – Diversity definitely provides workers a broad canvas to paint it with their creative thoughts. When different backgrounds people start working together on one project so everyone has different experience and different thinking process. Therefore, when everybody starts working on similar goal then they come up with various new and innovative ideas which improve the quality of work because in this situation manager can pick the best idea among them and can implement to get best result.
3. Quick Solution for Problems – Employees from diverse backgrounds have different experiences and views, they have great exposure to solve various problems with their expertise and knowledge. They can use their technical mind set and innovative ideas to solve any issue easily and promptly because some people are expert in creating ideas for high production rate whereas few are good at implementing those ideas into business. Hence, due to diversified ideas, solution can be chosen easily that’s leads to success for an organisation.
4. Better decision making – Researchers found that when diverse teams made a business decision, they outperformed individual decision-makers up to 87% of the time. When workers come up with different work culture and worldwide companies together, they join new team with great experience and a unique skill set from each other, they are well versed in decision making process and they do not take much time to approve an innovative solution to any problem which leads to the more informed advanced processes and results.
5. Benefits for employees-Employees can be more benefited because when they work with the different culture people, they get great opportunities to learn other cultures which can be a new and exciting experience for them and could help them in their personal development.
6. Help to raise the Revenue – Organisation earned great profits with the diverse workforce because their multiple skills help workplace to take better decisions that leads to better business results and reap more profits.

By diversity, organization can reach the different markets because clients will be increased in other demographics if their region person working in our organization. Diversity in organization always be benefited for their success by interacting different kinds of people at one place which leads to the organizational success.

In the context of the workplace, valuing diversity means creating a work environment that respects and includes difference, recognizing the unique contributions that individuals with many types of differences can make and maximizes the potential of all employees. Work diversity means employing people who may be different from each other and who don’t come from the same background. The differences may be those of national origin, physical appearance, religion, education, age, gender, or sexual orientation but they work together for one goal of organisation and put their efforts to achieve it altogether.

Workplace diversity speakers mostly accept the fact that there are more similarities among employees than there are differences; however, despite the many common attributes’ employees share, there still exist cultural differences. Culture is defined as a set of values, practices, traditions or beliefs a group shares, whether due to age, race or ethnicity, religion or gender. Other factors that contribute to workplace diversity and cultural differences in the workplace are differences attributable to work styles, education or disability.

As we know diversity has multiple benefits to business although still it face enormous drawback because high level of diversity effect the business environment and to control Australia has a controlling body called “DCA – Diversity Council Australia”it is the independent not-for-profit organisation leading diversity and inclusion in the workplace. They provide unique research, inspiring events and programs, curated resources and expert advice across all diversity dimensions to a community of member organisations. DCA running with over 600 team members, mostly are Australia’s business diversity leaders and top employers like ANZ Bank, AMP, BHP, Boral, Coles, IBM Australia, Myer, Orica, Rio Tinto and Westpac. This organisationis estimated to employ approx. 2 million Australians, that shows 15% of the total workforce. They motivate flexible working and aim to create a work environment where all employees are valued, and can contribute, regardless of gender, age, culture, disability, sexual orientation or gender identity, Indigeneity, family and caring responsibilities or religion.

We can discuss few factors which affect organisation success due to diversity as below –

Ethnicity -Ethnicity or Cultural tradition are the main examples of cultural differences in the workplace, specifically where communication, language barriers impact the business productivity. In a globalized economy, cultural sensitivity is really important because that gives ample benefit to organisation. Understanding and knowing about cultural differences is a crucial skill and once organisation learn to deal with it so they can help to navigate many complex interactions. Many times, overseas companies face failure due to cultural misunderstandings so its beneficial to learn any target audience culture first before to deal with them so that it can be fruitful as per expectations when planning to do business across borders. This includes basic customs, mannerisms and gestures. For instant, if an advertising company presenting its new product in the market so their presentations ofideas, languageand actions all should be similar with the target audience because only then they would feel more connected with advertised product.Therefore, its mandatory to know customers background to get success.

Individual differences due to Language and Personal Background – One of the main disadvantages of cultural diversity is language because it has seen several times that employees feels anxious to express their ideas and innovative thoughts with their colleagues due to language barriers and that’s the reason to follow a standard business language as English to overcome this problem. Social segregation often occurs when speakers of two languages work together and face different challenges due to communication gap. Language barriers are generally temporary in nature (most immigrants eventually learn the language of the country they move to), but the resultant segregation can endure, As a result of this phenomenon, many governments around the world has made a mandatory requisite for prospective immigrants to learn their country’s official language first before to move in those countries.

Different Background – Where an employee lives or has lived can contribute to cultural differences in the workplace. Many people would agree that there is a distinct difference between the employee from a small town and the employee from a large metropolis. Sydney, for example, is known for its fast pace and the hectic speed of business transactions. Conversely, an employee from a small, Cains town may not approach her job duties with the same haste as someone who is employed by the same company from a large city where there’s a sense of urgency attached to every job task.

Different Traditions and Business Etiquette –Every country follows different business etiquettes which is essential to know prior to start any business contract with new foreign country. Gestures that are common in one country, like kissing people when meet on the cheek, making eye to eye contact and shaking hands firmly, may be taken as offensive or unusual by foreign clients or business partners. It is really difficult to deal with different cultures but with adequate research and various online learning tools it has becomes so easy to deal with overseas clients now a days. For example, People who are working in a multinational company, are likely to encounter many differences, which initially they find difficult but later on they become comfortable with international business etiquette. Moreover, Canadians and Americans often use first names, even when dealing with new people while many Asian countries, they always address a person formally by adding Mr. or Ms. before their surname. So, there are multiple traditions in business which get impacted with diversity at workplace.

Legislation, codes of practice and national standards can be used to further the development of a diversity policy and then implement it in a systematic and tangible manner. It can be used to focus on cultures, beliefs and traditions and practices. This in turn will pave the way for productive diversity and it will help to develop culturally appropriate communication skills. These skills will be useful while relating to people who are from diverse backgrounds. Moreover legislation, codes of practice and national standards can be used to develop high level research and analytical skills that will be useful to review business needs and to determine how divert approaches apply under different situations and circumstances.

It is an offence in Australia to discriminate people on the basis of their age, disability,race, sex. Gender identity and sexual orientation in public life including education and employment as per -Racial Discrimination Act 1975. Sex Discrimination Act 1984. If someone believe that he has been unlawfully discriminated then he can lodge a complaint with the commission. Similarly, each state and territory has also enacted anti-discrimination legislation. Individuals can lodge complaints about discrimination, harassment and bullying at the state and territory level depending upon the circumstances of the complaint with the relevant agency in that state or territory.

Queensland has Zero tolerance Policy for bullying and harassment whether at work or in routine life.

Zero tolerance makes every business successful. This means creating an inclusive culture that promotes the skills and insights of people irrespective of gender, ethnicity, generation, sexual orientation or disability. Queensland government has made strict laws to address various discrimination due to any reasons and Queenslanders have equal rights for doing business and jobs irrespective of their various diversity and follow are the legislation which government follow to control this problem.

• Gender equity
• Aboriginal and Torres Strait Islander people
• People with disability
• Culturally and linguistically diverse groups
• Young people
• e-diverse workplaces
• • LGBTIQ+ (lesbian, gay, bisexual, transgender, intersex and queer+)

Case Study Answers

Question-1 Why should ABC analyse existing practices in relation to diversity?

ABC should analyse existing practices in relation to diversity because neither company mission nor the current operational plan contains any detail for the implementation of the diversity which implies that all the benefits of the diversity that have been mentioned will not be reaped by the company so they should carefully examine their existing practices in accordance with diversity.

Question-2 Explain the benefits of diversity in ABC and how diversity relates to achievement of business objectives?

Following are the benefits of diversity in ABC: –

1) High degree of profitability: –

Representatives who communicate in various dialects or originate from abroad have exceptional aptitudes and encounters. Representatives from multiple foundations can present new arrangements and points of view that were beforehand obscure. When working with various groups, be that as it may, it is imperative to organize the representatives’ government assistance through legitimate pay and human services. These guarantees representatives feel sure about the organization, paying little heed to their experiences.

2) Exchange of assortments, thoughts, and collaboration

Every individual from the group contributes various thoughts and one of a kind critical thinking viewpoint. By having numerous personalities at the table, organization workers can tackle issues all the more rapidly and proficiently.

3) Learning and development

Being presented to new societies, thoughts, and points of view can possibly change the manner in which representatives think, work together with each other, and even influence one’s feelings of compassion. To be fruitful, an organization ought to endeavour to interest various populaces and situations. This social introduction considers wide-running customers and a superior open door for the organization to be effective.

4) Effective correspondence

Clients who communicate with delegates from his/her topographical zone or social childhood will cause the client to feel increasingly good with the agent and the organization itself.

5) Diverse experience

A various blend of abilities and encounters helps colleagues become progressively responsive and adjust to changing conditions without any problem.

By Following ways diversity relates to achievement of business objectives-

1) Various sentiment and viewpoints

Representatives with various foundations and encounters will unite an assortment of viewpoints, accordingly inspiring elective arrangements and approaches while talking about a point or issue. Whenever oversaw well, the qualities and best bits of knowledge of each individual can be saddled to elevate profitability and convey better outcomes.

2) Unity of assorted qualities

Decent variety likewise presents the chance to join specific qualities to the upside of the association. As each individual has various abilities and has fluctuating qualities, these can be joined for more noteworthy execution and profitability. Specialized attributes in a single individual can be merged with the administration qualities of another, and the business quality of one more.

3) The planning advantages

There is additionally a favourable functional position of having a different workforce. As people have special time responsibilities, having a changed gathering guarantees that work undertakings can be satisfied consistently throughout the year.

4) Makes organization appealing

From the commercial centre point of view, an organization that advances working environment decent variety and a comprehensive workplace adds to its appealing quality as a business. A working environment that is available to investigate new thoughts and styles is particularly engaging for the bold receptive representatives of Generation Y. If an association makes it realized that they centre around what people can bring to the table more than the up-and-comer’s financial foundation, ethnicity, and so forth, they are bound to pull in various scope of candidates.

1.0 Introduction

Unlike other sectors, Tourism & hospitality is dependent on the direct exchange among workers and clients. Therefore, there has to be a dynamic avenue for building the worker-customer experience (Kusluvan, et al., 2010). Available facts show that T&H is plagued with issues of recruitment, worker turnover being high, and constraints in alluring and holding onto very good employees, which all end up in unfortunate product/service and very little business growth. Bratton and Gold (2012) consider that human resource management (HRM) is able to help a firm to improve their business growth by effective staff management, which should focus on understanding employee needs and aspirations.

Ahmad and Scott (2014) identified that HRM’s dogmatic (hard) method in controlling the workforce, with its attendant inflexibility and mechanistic procedures, has continually bred dissatisfaction among the workforce, and therefore result in constant moving by the staff to other brands. Conversely, Aslam, et al. (2013) stressed that compassionate administrative tactic in managing people will increase assurance on labour force and inspire enthusiasm at work, and, if joined with concentrated coaching scenarios, it can increase know-how and good client handling, which will foster a lasting business success (Armstrong, 2017).

2.0 The Strange Nature of the T&H Industry and the Hard-To-Manage HR

The Tourism&/Hospitality industry is accepted universally as the chief hirer of labour, which obviously transcends to highest revenue generator to the economy. According to Baum, et al. (2016), this trend is expected to increase due to increase in travels, changing customer taste, high demand for comfortable accommodation, increase in holidaying, natural crave for relaxation after hard work, eating and drinking. The irregular landscape of tourism/hospitality is in the magnitude of the area and the fact that the sector unifies cultures/traditions, and as Michael et al. (2011) put it, notwithstanding the global economic predicaments, the sector is still predicted to rise. Because customer contentment and devotion are contingent on service delivery, and for impactful service transfer, the human resources inside the enterprise is indispensable.

Mohan & Arumugam (2016), in their appraisal of the challenges in the HRM of T&H industry, added that the segment has numerous workforce difficulties, which include very low remunerations, skill scarcities, and unfriendly working hours, shift arrangements not family-friendly. According to them, other issues show that women and ethnic minorities are employed in low-paid, low job positions, with well-paid, high position jobs levels occupied by men and selected ethnic groups, and this shows immaturity and unequal opportunities in the programs the industry have. Further complications are undeveloped/absence of career development programs and overreliance on casual seasonal workforce and contract staff, use of unofficial employment procedures, No substantial or good HRM practices, No presence of trade unions, rising levels of employee turnover and inability to recruit and retain workers.

Acknowledging this truth of poor staff welfare practices, Usha (2013) contends that financial advantage was the major element in HRM schemes and set-ups in tourism/hospitality. This can be said to be true of any business, but it is over-emphasized in tourism/hospitality and conveys a specific impact because of the uniqueness of the sector. Unfortunate people administration marks increasing worker resignations, and that is why Burke, et al. (2013) considers that a high percentage of the current labor force in T&H are not pleased with their service environment because ineffective administration of the workforce have a trend in sky-rocketing expenses, and consequently breeds dissatisfaction among workers.

Ahmad, et al. (2010) in their research, have revealed that the T&H sector has only a comparatively few number conventional HRM academies, but other industries have enough for their staff development.

All these underscore the lack of commitment on the side of the employers when it comes to staff well-being and prosperity. Employees are in constant search for advanced packeges, and if a company does not give them enough reason to stay, they will continue to move.

3.0 Methods that Help to Mitigate the Difficult Individualities of the Tourism/Hospitality Industry

3.1 Strategize structural change as a program to promote quality, efficiency, staff motivation, and contentment

In the study by Taylor (2010), endorsements were made by him concerning what schemes are better in tackling the identified constraints of tourism/hospitality, as faced by the HRM. In the work, he worries that structural change, upgrading quality, equity to staff and handling the workers in ways that boost their morale. The book also touched the areas of ensuring that concrete schemes are people-centered and proper control to ensure good implementation in the correct order and measure. He emphasized transparency and meritocracy in the policy of rewards and staff motivations and pinpointed that these two will foster employee engagement, hope and expectations in practical terms.

Develop active training packages

A report by United Nations Economic Commission for Europe (2013) projected the origination of nascent and continual drilling of latest expert knowledge as vital possessions of T&H segment. In this regard, a new development policy and its representative institutions is apt to project the communication of hospitality skills and culture. The new training strategy will:

• Arrange training in an integrated scheme;
• Position career development on the limelight rather than compulsory and managerial training progressions;
• Concentrate training on the real work done in service that highlights hands-on skills to complement theories;
• Maintain prevalent priorities;

Formulate Welfare schemes and assess the standards

A liberal worker welfare program is an excellent method to keep workers motivated and attract quality talent. This is in the findings of Tofail & Kaida (2015), and stated that designing welfare packages should be articulated beyond physical prizes like money and nonphysical schemes like mentoring by employers. This in effect will deeply change workers’ attitudes to both business owners and customers. They enumerated the package to bonuses, income allotment, health, accident at work, life assurance, paid holidays, free food, company vehicle, equity sharing, childcare trust, gratuity, sick permissions, additional time-off and end-service/pension plans.

Another piece of literature by Hayley (2016) attempted to reflect on the major attributes of a good benefits package, and made points that support the ones above: utilizing cloud computing and artificial intelligence for knowledge transfer and taking advantage of emerging technologies to create of skills pool where talents can be captured. See summary in theme below: (du Plessis, et al., 2016)

4.0 Strategic Contributions of Human Resource Management to Business Success in Tourism and Hospitality

Juan, et al. (2017) delivered a review of the strategic HRM literature from general management points of view and tourism and hospitality-specific angle. He explained that establishments in T&H business witness a difficult and competitive situation, where HRM handles critical roles in business successes and existence. What makes the industry peculiar is that the merchandises of organizations in the sector are service-oriented, and that means the core competencies are intangible and extremely dependent on human-to-human exchanges between personnel and clients. He stressed that human capitals play a major role in service excellence, client devotion, customer satisfaction and similar other key performance index used to measure company performance (Baum, 2015)

In a notably and exceptionally in-depth investigation, Tracey (2014) exposed five roles of HRM as tactical HRM planning, recruitment, coaching, performance evaluation & reward and welfare. Even though the study by Tracey (2014) did not specifically contain a part on strategic HR management, it does, however, mention that Strategic HRM is the bridge between what human resources does at the operational level (such as hiring, development, benefit and reward) and business success.

Huselid and Becker (2010) explained that over 300 published articles on Strategic HRM that concentrated on the link between a company’s HRM structures and company’s performance point to the substantial influence a diligent human resource have on business success. The two authors conclude that there is company’s performance enhancement when:

• staffing and selection methods,
• reinforcement schemes; and
• coaching and career advancement policies are attuned to the company vision.

Wright and McMahan (2011) explored the current drift of HRM away from the human content of the human resource management, tries to call the attention of industry players to have a reflection and put back the human in the human resource management. He emphasized that the relationship between HRM and organizations is for human assets with inherent know-how, talents and aptitudes at both personal and general company levels. Madera (2013) agrees with these assertions and reiterated that company-specific personnel resources is connected with company performance, attractiveness, and competencies. These researches suggest that HRM functions advance human resources in ways that they rightly stimulate performance outputs and business success.

Introduction:

In 1893, Pepsi was produced by Caleb Bradham, a pharmacist, in New Bern, North Carolina. He made it in his drugstore when he found that it gets sold very quickly. Before it was called Pepsi-Cola in 1898, he named it Brad’s drink. He started selling Pepsi at a repository instead of his dispensary in 1903. He started his own corporation “Pepsi-Cola” for years where he faced fluctuations, successes, and failures. In 1965, PepsiCo was created by integrating Frito-Lay with Brad’s Pepsi-Cola company, and it became a multinational nibble, drink, and food corporation. For PepsiCo to keep its position between other companies, its operation administration must deliver business needs in the ten planned decision districts which are:

1. Design of Products and Services.
2. Quality administration.
3. Process and Size design.
4. Location plan.
5. Layout design and plan.
6. Job design and human assets.
7. Supply chain administration.
8. Inventory administration.
9. Scheduling.
10. Maintenance.

Body:

The current CEO and chairman is Ramon Laguarta. Ramon is the sixth CEO in the history of PepsiCo. Laguarta was working at a candy company named Chupa Chups before joining PepsiCo in January 1996. He was working in the European business of the company. In September 2017, he was named the president of PepsiCo. On August 6, 2018, the day the previous CEO Indra Nooyi announced she is leaving her position, they voted for Laguarta without him knowing to be the next CEO for PepsiCo. In October, he took her place, while in February 2019, he became the chairman. Laguarta’s three main goals since he became a CEO are to become stronger, better, and increase the rate of organic revenue growth of the company. Laguarta is a democratic CEO, and this appears in his leadership behaviors which include: voice opinions fearlessly, celebrate successes, focus to get things done faster, as mentioned in his biography in PepsiCo’s website. Ramon is a leader in which he always motivates his employees and decides their direction. And his most played role is being a disturbance handler who can handle whatever the situation the company goes through.

As it obvious that the known corona virus decreases access to food and other basic foodstuffs for societies worldwide, PepsiCo is spending more than 60 million dollars worldwide to deliver food and other necessary resources to the most affected societies. As part of this initiative, PepsiCo provides support to protect doctors, nurses, and healthcare workers. It also provided more than 50,000,000 healthy meals to people and communities at risk. They invested a lot of money in most of the countries and in many institutions to help people around the world. PepsiCo is employing dark green approach, as they fill up the water it uses with a high percentage nearly 100%, they also make sure that the water is returned back to the same place it was taken from. They also do their best to reduce their wastes. They design their packaging in a way which will make them be able to recycle them again. As a reason for all these initiatives, customers will love to deal with the company and they will have good feedback all the time, which will make their sales increase and will also make the company face a great success.

The main growth plan used by PepsiCo is concentration plan which is focusing on a core business line and growing the amount of items sold or served in the markets. Trying to be successful in one single industry which is soft drinks is a way to secure its growth.

SWOT analysis:

• Strengths: Global presence: items are marked in over 200 countries, resulting in $43 billion in annual net sales. Good operating efficiency and capacity to disturbance: class leading delivery systems implemented in-region, meeting specific needs.
• Weakness: Coca-Cola has a greater share of the intake of carbonated soft drinks because they give their drink to more fast food restaurants.
• Reliance: Pepsi depends on bottling companies as they don’t own any bottling companies, unlike Coca-Cola.
• Opportunities: Brand Line Expansion: PepsiCo could add more items to boost market share. Attempting to enter more developing countries: PepsiCo can get more money , increase their income from entering the markets of some developing countries.
• Threats: Change in the policy environment: differences in food and drug regulations, ingredient export and import regulations can change the environment in which PepsiCo operates and can affect the outcome and raise prices and liabilities. Trade merger: Market competition can impact PepsiCo’s business.

The Value Chain is the whole sequence of corporate work activities that add value to every stride starting with the manufacturing of raw materials and finishing with the final product in the hands of end-users. There are 4 possible obstacles to successful value chain management which are:

1. People: Not being inspired to do high quality work / Lack of steadfast dedication to doing whatever it requires.
2. Organizational barriers: Refusal or inability to share data / Willingness to smash the current system.
3. Cultural attitudes: All along the chain there needs to be mutual respect and transparency about the behavior of each member.
4. Required capabilities: Absence of or inability to build the required and necessary skills in managing the value chain puts businesses at risk of loss.

The main purpose of control is to ensure that the activities are completed in ways that lead to organizational goals being achieved. The best source of information for measuring the company’s accomplishment is the oral reports as it allows for verbal and nonverbal feedback. It’s also a fast way to get the needed facts, and it allows you to ask many people.

Conclusion:

In conclusion, we can say that PepsiCo is a company which know how to be successful between all the other companies. Its culture is really a good one. People their know how to grow internationally, and they have a good strategy to do so. It has its own place despite all the weakness the may face. I see it one of the most successful companies worldwide.

Introduction:

Costco is the one of largest retail deal organizations in the U.S. It has in excess of 500 stores in 37 states and eight nations. The organization’s fundamental procedure of high caliber at low-value precedent incorporates Rolex and Movado watches this technique of impermanent uncommon deals makes client energy

Understanding the Background

Founded in 1983 in Seattle, Washington by its founders Jim by Senegal and Jeffrey Broman. Costco’s business model is about selling high quality and volume but at low cost. Walmart’s founder Sam Walton initially attempted to merge with Costco but due to differences in business models and pricing structures, they became top competitors instead. Costco is known for their top of the line return policy, which allows extremely lenient returns and even allows returns for up to 2 years on products such as electronics.

Costco has been expanding and growing very rapidly during the past years, especially since 2007. In 2007 their membership count was 50 million, while at the end of 2010 their membership count had jumped to 64 million and now as of Feb 2013, they have a membership count of 68.2 million. At the end of the year, 2013 Costco’s financials show that they had incredible sales at 105 billion dollars. These numbers show that Costco has a pretty stable idea of what they’s doing and how to run a company (Hoover’s & Investor-Edge).

There are the following Questions:

Question # 1

• Explain the success of Costco in terms of three performance determinates in flexible leadership theory (efficiency, adaptation, human capital)?

Answer:

• Effectiveness of Costco is high on the grounds that dependable client and high benefit at the minimal effort rate as per DEAP yield is high at low information cost rate productivity is high

The company’s basic strategy is to provide quality products at the lowest available prices, and the products include clothing, electronics, and food. Costco’s leading competitor—Wal‐Mart’s Sam’s Club—offers more variety and some lower-priced items, but Costco’s products are generally of a higher quality. Around 20% of the items comprise of limited‐time supplies of profoundly limited extravagance products and other uncommon deals. Precedents incorporate Rolex and Movado watches, gourmet imported chocolates, Waterford precious stone, plasma TVs, and Burberry and Mentor Satchels. This procedure of brief exceptional deals makes clients energy and expands buys of things that customers had not expected to purchase when they visited the store.

• Appropriation Costco receives diverse style
  • Bargaining power on customers. Bargaining power refers to the weight buyers can apply on organizations to motivate them to give higher quality items, better client administration, and lower costs. … A solid purchaser can make an industry increasingly aggressive and decline benefit potential for the dealer.
  • Attraction

SWOT Analysis Strength:

1. Low product and services.
2. Internal (Homegrown) top management team in the majority.
3. Employee turnover within a year of recruitment is just six percent.
4. Unique ability to keep overhead

SWOT Analysis Weakness:

1. Comparatively less attractive store layout for luxury items.
2. A weak advertisement base leads to the inability of reaching the full range of the membership base.

• Discount on Luxurious products

Around 20% of the items comprise of limited‐time supplies of profoundly limited extravagance merchandise and other uncommon deals. Models incorporate Rolex and Movado watches, gourmet imported chocolates, Waterford precious stone, plasma TVs, and Burberry and Mentor satchels. This system of transitory unique deals makes clients fervor and builds buys of things that customers had not proposed to purchase when they visited the store. Charging clients for the benefit of shopping at Costco gives a consistent wellspring of income for the organization and builds client devotion. Unlike most discount stores, Costco has many affluent customers who are “treasure hunting” for the special bargains on extravagance merchandise instead of only searching at low costs on essential products. Costco’s stock purchasers need to test and go for broke with extravagance things, in light of the fact that a great deal of cash is tied up in stock if the things don’t move rapidly.

• Human Capital is most vital employees are faithful to the organization in view of high office fortune to the employee medical coverage compensations and so forth.

Costco has generous pay, Brilliant health benefits, and a good 401000 plan for its more than 120,000 hourly employees in the US. The normal wage for a full‐time specialist at Costco is around 40% higher than at Sam’s Club. Around 82% of Costco representatives have health‐insurance inclusion, as contrasted and not exactly 50% of the workers at Wal‐Mart, and Costco workers pay considerably less of their wellbeing premiums. Around 91% of Costco’s workers are secured by retirement designs when contrasted with 64% of representatives at Sam’s Club, and friends’ commitments to the arrangement are about twice as high per representative at Costco.

Question # 2

• Explain how Costco can provide higher compensation to its employees and still be success full in the use of low price-competitive strategy?

Answer:

Costco gives the fantastic item and at the least cost and has faithful clients and employees as contrast with contenders. Costco has high effectiveness as contrast with its rival. Costco gives participation cards and distinctive administrations like voyaging wellbeing home protection managing an account and monetary plans to his clients.

The company policy is to support from within the grades, and workers at all levels have good opportunities for advancement. The corporation has one of the most loyal and productive labor forces in the retail industry. The high level of organizational promise is reflected in the turnover rate (around 6% for workers on the job for more than 11 months) which is well below the average rate of 44% for the industry. The expense from turnover (lost efficiency, enrolling and preparing new workers) is 40% lower at Costco than at Sam’s Club. Worker burglary at Costco is the most reduced in the business. The investment funds from lower turnover costs, bring down representative robbery, and higher worker profitability more than counterbalances the greater expense of pay at Costco. The operating profit per hourly employee in the US is nearly twice as high at Costco as at Sam’s Club. The abnormal state of representative inspiration and duty isn’t simply because they are all around pursued, yet there is additionally an abnormal state of where it counts inspiration between Costco workers. They are urged to propose approaches to enhance the stores and item blend, and innovativeness is esteemed. Every morning before the store opens there is a discussion about approaches to be increasingly productive and to give better client benefits. All representatives are prepared to be inviting and supportive when clients require help. At the point when customers require help with finding a thing, workers are relied upon to demonstrate to them where it is as opposed to just indicating a removed spot or giving unclear headings.

Question # 3

Use relevant leadership theories to analyze the behavior of the CEO and describe his influence on the company?

Answer:

For this situation think about we break down that Costco receives individuals arranged initiative hypothesis in light of the fact that the CEO of Costco is individuals situated conduct. The Chief consideration to his employ and sometimes his conduct is task arranged when the focal point of the CEO just on assignment his style is change. The office of the CEO is open for all sorts of individuals and all kinds of clients. All employees are to be prepared and motivated and friendly.

Over each bed is a card with a straightforward item depiction, and they keep everything as basic as workable for the item shows. Supporting costs are low on the grounds that Costco does not do any publicizing; there is no advertising supervisor or costly promoting organization. Rather, Costco depends completely on upbeat clients who enlighten their companions as to the awesome deals accessible at Costco stores.

Jim Sinegal, the CEO of Costco, is exceptionally humble about his promise to the accomplishment of the organization and fast to tell acknowledgment to other people. He sees that it is so very important to have gifted individuals working for an organization, and he does numerous things to pull in and hold them. At the organization’s central station in the Seattle area, his office is an open space with no entryway. His work area is pushed facing the divider so that, at first look, he has all the set aside of being another person’s secretary. Sinegal for the most part answers his own telephone, employs an unofficial ID like different workers, and as a rule wears one of the low‐priced dress shirts sold in his stores. As the prime supporter of Costco, Sinegal is a noteworthy investor, however, his yearly pay is just 10% of the normal sum for CEOs. He actions to restrict his pay and reward to close to twice what a Costco store supervisor wins, and he declined his reward throughout the previous three years so as to accomplish that objective

1. Introduction

Based on the first assignment report, various frameworks were being used to evaluate on RMIT Business College’s internal and external environment in the private higher education industry in Singapore. Through the analysis, we were able to recognize that the combination of both factors has resulted in a management challenge, which thereafter was redefined as a problem statement. However, the frameworks used in Assignment One did not fully address the problem statement as it only briefly identifies the weaknesses and threats of RMIT Business College in Singapore.

Therefore, in this report, the problem statement will then be restated to generate a new research question from the management perspective. In order to have a deeper and better understanding on the nature of the problem statement, new theories will be introduced and applied. In addition, alternative methods will also be incorporated so as to supplement the root cause of the new research question.

2. New Research Question

5 WHY Methodology

In order to have a better understanding in the root cause of the problem statement, I will be using the 5 Why Methodology in deriving the underlying cause.

The new research question is now being restated and rephrased to: How can RMIT Business College increase its skills, knowledge, and resources while meeting the demand of business growth in order to become Singapore Business Students’ choice of higher education provider?

3. Literature Review

In order to further understand the new research question in-depth, the following theories will be used – Business Level Strategy (Differentiation) and Corporate Level Strategy (Ansoff Matrix), so as to determine the cutting-edge solutions that can effectively address the management challenge.

3. 1 Business Level Strategy – Differentiation Generic Strategy

Fig 1 Porter’s Generic Strategy

In every business, there are bound to be competitions. Therefore, in order for RMIT Business College to gain a sustainable competitive advantage against its competitors, it will need to be flexible to meet the swift market and competitive changes. As such, it is important to incorporate strategies that enable them to rise above to gain greater success.

Michael Porter (1980) proposed that there are strategies that can aid organizations in gaining a competitive advantage in its industry. In the Business level strategy, this strategy is defined as the variations of the particular firm’s characteristics that have relevance to the competitive success or failure within its industry (Beard & Dess, 1981). It is about how individual businesses should go about competing in their respective markets by coming up with a competitive strategy that converts to business success. This strategy focuses on issues such as the response toward competitors’ move, innovation and appropriate scale.

In order for RMIT Business College to position itself well within the industry, it will need to opt through cost leadership, differentiation or focus (Anon., n.d.). With the organization’s sustainable competitive advantage set as the main focus of the new research question, the generic strategy of differentiation will be applied to RMIT Business College. It is relevant in addressing the problem statement as the current broad differentiation strategy that is being adopted by RMIT is no longer sustainable to become Singapore’s business student priority choice of higher education provider by Year 2030.

Over the years, global trends and factors are evolving which has influenced the higher education industry. With technology are rapidly advancing, traditional education learning is becoming obsolete (Yang, 2015). As a result, the long-established business models are no longer effective in sustaining the future of colleges and universities.

Today, the landscape of higher education is one that is revolving to fit into the digital era and the expectations of technology-savvy students. Generational diversity reacts differently to the teaching and learning styles, this creates a generation gap (Gillispie, 2016). The traditional learning methods are no longer appealing to the students. Therefore, curriculums in the higher education industry are progressively changing to meet the demands of the market. As a result, the conventional way of traditional classroom teaching is now “flipped” to incorporate technology in learning which is increasingly becoming popular. Hence, it is necessary for RMIT Business College to improve in its delivery of curriculums be it through a flipped classroom or a combination of both.

Moreover, expectations from employers of Business graduations and society play a strong influence on the curriculum development of higher education institutions (Tatjana Nikitina, 2017). The changes in the external environment such as technological innovations and the demand of new skills in the labor market have led to a shift in the perception on employers and society’s expectations. As a result, employers are now on the lookout for business graduates who possess entrepreneurial and analytical skills. Therefore, the course of action that needs to be taken is to align and respond to employers’ expectations of graduates.

As such, RMIT Business College will need to come up with differentiation strategies to tackle the challenge, whereby the failure to anticipate will result in a negative impact on sustainable business success. Most importantly, it is imperative for RMIT Business College to implement strategies that differentiate themselves against the other competitors so as to enhance their competitive advantage in the industry in Singapore. Upon finding the appropriate opportunities for differentiation, RMIT Business College can then implement and take the necessary course of action. This will then be able to address the root cause of the problem statement, allowing them to be able to respond to future competitors’ moves as well as employers’ expectations.

3.1.1 Strengths & Weakness

In the business level strategy, customers are the ones who form the foundation of business. Therefore, in order to be able to implement any strategy successfully, it requires businesses to have a deep understanding in their target market (Bass, n.d.).

Focusing on a particular generic strategy, it enables RMIT Business College to focus on the core elements of its businesses. The advantage that it presents is it enables organizations to potentially leverage themselves to enhance business success. In addition, by anticipating the needs of their customers, organizations will be able to safeguard themselves against their competitors and achieve recognition for their brand loyalty. Moreover, by adopting the differentiation strategy, businesses will be able to work towards satisfying expectations by creating strategies that will be able to value add to the organization, customers and employers.

However, the downside is that it is important for the organization to be vigilant in monitoring businesses in order to avoid complacency. The needs and expectations of their customers must be carefully sought and understood in order for businesses to implement an effective strategy that creates a sustainable business advantage.

3.2 Corporate-Level Strategy – Ansoff Matrix

Corporate-level strategy requires careful analysis of in the selection of businesses that the organizations are able to compete in successfully. It is defined as the implementation of a strategic plan of action to achieve specific targets in order to meet business success (Leonard, 2019). The purpose of this strategy aids in maximizing the overall productivity where it helps to increase the competitive advantage of businesses while offering a unique service or product to their consumers.

This strategy concerns the efficiency in utilization and allocation of resources so as to value add and benefit businesses. As such, the strategies mapped out seeks to translate objectives and goals into reality. Addressing the problem statement through the corporate strategy approach enables RMIT to obtain a mixture of business units that enhance business success as a whole. Therefore, in order to determine the products or market that organizations are able to enter, make or improve, RMIT will need to opt through market penetration, market/product development or diversification.

Igor Ansoff who developed the strategy model – Ansoff Matrix – proposed that this tool can aid organizations in plotting strategies through penetrating into the current or new market via existing or new products (Hanlon, 2018). This will be able to assist RMIT in reviewing their strategic options in both strategic management and marketing. In turn, it allows RMIT Business College to achieve business growth in Singapore.

The private higher education industry is of extensive economic significance, be it internationally or nationally. The reputation of institutions relies on its outstanding quality, especially in the competitive global markets. Over the years, educational institutions are increasingly recognizing the need to market themselves in the climate of competitive competition (Hemsley-Brown & Oplatka, 2006). Therefore, through market penetration, it can allow RMIT to improve on their productivity, marketing activities as well as qualities. Whilst enhancing on their existing products and services, it will also increase their market share.

In addition, stakeholders play an important role in the development of private higher education. Their interest and expectations are constantly changing in the global market. Therefore, there is a need to achieve an understanding of the various customers that they are coming in contact with, be it the current or potential future stakeholders (Gajić, 2012). Rather than being dependent on a particular market, the organization can seek in penetrating into other potential markets. This enhances RMIT competency by exploiting on its existing course into new market areas. However, the success of market development depends heavily on the organization’s ability in investing an extensive amount of time to conduct research on their customers and market. In turn, RMIT will be able to benefit from the economies of scale as it allows them to be able to utilize the excess capability that is readily available.

As such, Ansoff Matrix is relevant in addressing the problem statement as it can assist RMIT in analysing the possible growth strategies that will be able to contribute to business success.

3.2.1 Strength & Weakness of Ansoff Matrix.

Ansoff Matrix is a strategic planning tool that provides a framework in assisting organizations in focusing on their businesses while laying out possible growth strategies. It links the organization’s marketing strategy while aligning with its generic strategy direction. In turn, it sources for opportunities in growing businesses while leveraging on its existing and/or new markets and products with its core competencies.

However, the downside to this strategic planning tool is that it does not consider the activities of the external environment. It focuses mainly on two factors – market and product, which leave numerous considering factors that could affect business out of the picture.

Therefore, this tool should be used as an aid in conjunction with other analysis tools to take into consideration other factors that may affect the organization as the business environment varies and are constantly changing (Rodrigo, 2015).

4. Alternative Method

In order to further eliminate the weakness and supplement the above-mentioned theories, Mc Kinsey 7S Framework will be used.

McKinsey 7S Framework

McKinsey 7S Framework is a management tool used to analyze the design of the organization and its effectiveness by studying the 7 key internal elements that contribute to business success (Singh, 2013). It addresses organizational problems as it identifies if the key elements are aligned effectively to enable the organization to achieve its objectives.

Fig 2 The McKinsey 7S Framework (Jurevicius, 2013)

The framework consists of 7 elements are categorized into “Hard Ss” and “Soft Ss”, namely – strategy, structure, systems, shared values, style, staff and skills. Elements that are grouped under “Hard Ss” are easy to be identified, managed and tangible, whereas the elements that are under “Soft Ss” are the opposite, forming the base of the organization (Peters & Waterman, 1982).

By using the McKinsey Framework Model, RMIT will need to engage with every element in the framework to ensure that all of it are effectively aligned. By doing so, the organization will be able to derive the gaps or differences between the relationship of the elements. Moreover, elements in the framework are interconnected. As such, upon deciding on an adjustment to a specific element, it would require RMIT to look into the other elements and thereafter to make some adjustments in order for businesses to be able to achieve optimal effectiveness. Therefore, in order to achieve the optimal organizational design, it is necessary to conduct research, collate data and have an in-depth understanding.

The framework can be used to position itself to better prepare the organization when facing problems relating to external factors. It will help RMIT in considering whether it requires a different organizational structure to function more effectively. Through this, it will then enable the organization to be able to identify the areas that require realignment. In turn, it translates to creating a sustainable competitive advantage.

As a result, McKinsey 7S Framework can aid in addressing the above theories as it aligns the respective elements that are interconnected. Moreover, through the assessment of each element, RMIT will be able to assess how to go about improving the capabilities of their business units as a jumpstart in creating an action plan for change. This increases their competitive advantage and business growth.

5. Conclusion

In conclusion, the analysis which I have undertaken by incorporating the use of the various framework will be able to aid in addressing the management challenge. It allows me to gain a deeper insight in anticipation for the future of RMIT Business College in Singapore.

Firstly, from the business strategy level point of view, it is imperative for RMIT Business College to discover and implement strategies that enable them to be able to differentiate themselves against their competitors whilst in anticipation of the demands of the market in higher education industry. Anticipating, it allows them to be a step ahead of their competitors. In turn, it increases their competitive advantage and business outcome.

Secondly, using the Ansoff Matrix from the corporate level strategy point of view gives RMIT an opportunity in identifying the possible growth strategies in their business units. It recognizes the way in which the organization can enhance their strategic growth plan through the four Ansoff growth strategies. As a result, the organization will be able to value add to their businesses.

Lastly, the McKinsey 7S Framework model displays a broad view of how the organization is being structured. It helps in facilitating RMIT in identifying the areas needed for improvement internally by understanding and ensuring that the internal elements are effectively aligned with the commonly shared values. This framework serves as a powerful tool in analyzing and assessing the internal changes whereby the key elements play a part in determining business success.

Therefore, in order to achieve optimal competitive business advantage, the organization and business units can incorporate the various strategies in finding the best suit strategic solutions in resolving the management challenge.

6. References

1. Anon., n.d. Understanding Business-Level Strategy through “Generic Strategies”. [Online]
2. Available at: https://opentextbc.ca/strategicmanagement/chapter/understanding-business-level-strategy-through-generic-strategies/ [Accessed 28 February 2019].
3. Bass, B., n.d. Advantages & Disadvantages of Business-Level Strategy. [Online]
4. Available at: https://smallbusiness.chron.com/advantages-disadvantages-businesslevel-strategy-19209.html [Accessed 4 March 2019].
5. Beard, D. W. & Dess, G. G., 1981. Corporate-Level Strategy, Business-Level Strategy, and firm performance. [Online]
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7. Appendix

• Feedback

Though I have demonstrated a good understanding on the concepts that were presented in my assignment one report as well as the management challenge, there are areas that I need to improve on. Rather than touching on the surface of the concepts, theories, and information which I have researched, I need to engage critically to analyze and process it to present the information and ideas better. Moreover, I need to broaden my readings in order to enable myself to critically elaborate and link the information from the credential resource to my report. Therefore, it is necessary for me to read more and reflect in-depth, only then will I be able to demonstrate my understanding of the information which I have consolidated. This will be able to enhance on my ability in the application of theories.

• Use of Theories & Frameworks

There is a need for me to analyze and discuss critically on my choice of the tools, models, and theoretical frameworks that I have applied. This is so as to demonstrate my understanding of the purpose, applicability, and suitability of usage in the context that supports my argument in the report. At the same time, to elaborate deeper on my findings and thereafter critically demonstrate how it has an influence on the analysis that I have undertaken. Therefore, in this report, I have stated the reason why my chosen theories are relevant and suitable to the context of my report.

Furthermore, my assignment one report could have been better by demonstrating a more integrated analysis to portray the linkage of my key findings in each research article and thereafter evaluate how the information can be contributed to the management challenge that I have identified. The areas of improvement comprise of undertaking the analysis in the direction that helps in establishing a valid case supporting my analysis of the university. Therefore, in this report, I have attempted to link the theories in support of the relevance to the context of my argument.

• Academic Standards

Generally, my assignment one report was well structured where I reflected a good discussion on the subject matter. I have demonstrated a good referencing style in citing the academic sources which I have used. However, I need to further improve in my writing whereby to support my ideas with sufficient evidence, diving deep into facts instead of narrative analogies. More inference has thus been conducted in this report to adjust and ensure higher quality work.

• How can RMIT Business College increase its skills, knowledge, and strategies in order to differentiate itself and meet the changing demand for business growth?
• Why does RMIT Business College in Singapore need to increase its skills, knowledge, and resources?
• In order to differentiate themselves and meet the demand of business growth.
• Why do they need to differentiate themselves?
• To remain competitive in the higher education industry and meet the expectations of customers.
• Why is the industry becoming increasingly competitive?
• Why is it necessary for RMIT Business College to increase, attract or retain its students?
• Why is it important to remain competitive in the industry?
• To become a Singapore Business student choice of higher education provider.
• Due to the competition among the relatively large number of higher education institutions with reputable branding.
• To help increase, attract and retain current and prospective students.

Costco’s business model is to generate high sales volumes and rapid inventory turnover by offering their members lower prices on a limited selection of national brands and some private label products in a variety of merchandise. Costco’s business model is built through customer memberships, who join their membership and renew on a yearly basis. With this model, it shows how customer loyalty is satisfied and that customers will renew. Costco’s business model is an amazing model to use, all customers have the ability to find good quality bargains and Costco is setup to keep their loyal customers.

Costco’s strategy is built on the chief elements of low prices, limited selection, and a national brand competitive price shopping environment. For example; Costco uses their brand Kirkland, which is designed to be similar or better than other high-end name brands such as Grey Goose. Along with this, contrasted with different retailers and stockrooms, Costco offers around 4,000 things to the common Walmart super center offering 150,000. With their ability to use treasure-hunt merchandising, Costco is constantly changing selection of luxury items on the floor enticing, shoppers to spend more than they might otherwise by offering better deals. Costco’s buyers purchase these items from wholesalers which enables them to offer discounts to their customers. Offering these discounts has shown Costco success in their business model and has kept their customers coming back.

When looking out how effective Jim Sinegal has been, I believe that he is an effective CEO as he leads Costco into strategic courses in preparing for the future. His job is more than just a title as he is a producer, director and knowledgeable critic. Sinegal exhibits extraordinary attention to detail and pricing, which leads a very active role in management as CEO. He would receive a high score in leading the process due to the fact that sales have continuously increased throughout the years, along with more customers becoming members.

With a current ratio of 1:05 shows that Costco should be able to meet its current liabilities. Along with this, profit is increased by not having to store inventory. With the Asset turnover of 11.54 shows that it is consistent with what was described by the case study, Costco holds onto inventory for nothing more than 12 days. When looking at profitability measures, Costco is doing well financially. At 2% profit margin illustrates Costco’s pricing policies and the ability to offer ultra-low prices. The 6% Return on Assets percentage shows that Costco’s assets are being well-used to accumulating more revenue. The ROE demonstrates $0.13 of profit for every dollar of net assets. Based on the data from the case, Costco is doing extremely well.

The data shown is a clear showing of how Costco would be success with taking a step towards the outside market. All of their revenue, warehouses and operating income have consistently increased since Costco went outside the U.S. The revenue to warehouse ratio has also increased, indicating another factor of how successful they have been thus far.

Costco offers their customers some of the lowest prices on a wide range of national and outside U.S. branded products and goods, as well as their own brand products in a variety of categories. The products and services that Costco delivers are reliable as their competitors as the company deals with the best available quality products at competitive prices. Costco pays attention to details and has numerous strengths that add own to their success. Some of these factors include running an efficient operating structure, rapid turnover of the inventory, reduced cost of handling of merchandise and generating high sales volume at each of their store. Costco’s main goal is to give their customers variety and satisfaction of a low price, which then provides them the best value for their money.

Other than offering competitive prices on best-quality goods and a range of convenience services, Costco does their best to be a valuable quality provider for every geological location. This includes providing good working jobs at good pay, continuous involvement in community activities and charities.

Another strength for Costco is that they are one of the top wholesale clubs in the United States. The company currently has buildings in 38 out 50 states, and still growing. Costco also operates several consumer and business services, differentiating from financial planning to their health insurance. By providing some of the top-quality goods and services available, Costco has been able to increase its market share a large amount over the years.

Costco’s business conditions are constantly changing due to their external and internal forces which force other competitors to change their course of action. The driving forces in this sector are the major underlying causes changing business and competitive conditions. When operating on a large scale such as Costco, they must consider the difficulty that comes with it such as the demand for newer products or a larger variety.

Costco is almost one of the first pioneering companies to have a growing revenue from internet shopping. They created a website to be used in the United States as well as website in Canada to be more effective and competitive in the internet market based era. This can give them a competitive advantage over their competitor’s due to their ability to have different selling sites.

With the company constantly working and thinking of new ways to make its distribution channels stronger, they will begin to enter new potential markets. An opportunity Costco can achieve would be by offering lower value and working more towards developing a strong loyal customer, such as rewards points or customer loyalty points to ensure the consumers continue to use their services.

Warehouse clubs not only compete in one sector or market but it competes with a wide range of other types of retailers which include Walmart, SAMS, supermarkets, general merchandise chains, gas stations and food internet retailers. Their competitiveness changes however, because of the different types of products they deal in. The industry of wholesale has a number of individual companies that are highly competitive and have very effective strategies. They have developed loyal customer bases and preferably with the competitor’s brand. Costco’s major competitors include Walmart’s, Sam’s Club, Target, Whole Foods.

Costco’s financial growth and capital structure evolved from the basic thought of selling large quantities for a cheap price. Selling items in a large quantity results in reduced operating costs at high inventory ratios. Most of Costco’s inventory items are placed on wooden pallets, which in return lowers their operating cost by a significant margin. Along with this, selling in bulk allows inventory turnover ratio to be higher than retail industry averages. Allowing Costco to achieve maximum potential with their merchandise.

Costco’s brand name that they have distinguished themselves in the market and finical success, gives them a competitive advantage for all of their strengths. They present professionalism, loyalty and competitive pay to their employees generating a low turnover rate. Costco has achieved an amazing brand name for themselves, which puts them amongst the wholesalers’ biggest names.

Costco’s reputation has evolved due to their high employee compensation and low compensation for executives. Among employees who have been with the company for at least a year, just 6% leave annually. With this statistic, it can easily be seen why their employees stay working for the company longer. Since, Sinegal believes if you compensate your employees well, you will get good production from them. This is why their employees stay with their company compared to their competitors where Walmart was at 21% early leave in 2019.

The main concern I would recommend make for Jim Sinegal would be to continue looking for opportunities or partners to help grow the overall quality of their merchandise. However, when adding new variables such as a new partnership or merchandise, they will need to be compensated with competitive pricing and overall excellent customer service.

Costco, the nation’s largest discount wholesale merchandiser, was founded in 1983 by Jim Senegal and Jack Brotman (Gamble, Peteraf, Strickland & Thompson, 2016). Since the company’s inception it has been a leader in the retail industry, and a shining example of the success of the warehouse club model. Costco debuted with a stellar financial performance that solidified their legacy within the national retail marketplace. Additionally, Costco became the first United States based company to generate $1 billion in revenue in less than six years of operation. Since then, Costco has expanded to a globally recognizable brand with nearly 700 locations worldwide (Gamble et al., 2016).

The legendary CEO of General Electric, Jack Welch once said:“Strategy means making clear-cut choices about how to compete” (Farfan, 2019). Considering Jim Senegal’s leadership style, and the business strategies that he implements within the company, one can argue that Costco’s business model is evidence that the aforementioned statement is true. It is evident that many of the decisions that Senegal has made regarding Costco were strategically designed to fit within the company’s mission statement. Costco, as a brand, has two goals. The first being to provide the highest quality products possible, and the second being to provide those products at the lowest competitive prices possible (Farhan, 2019).

Costco’s membership based services are what allows them to keep prices lower than their competition. Due to the fact that they are generating extra income upfront they can ensure that their customers are getting the best price for every item offered (Gamble et al., 2016). Early on, Senegal realized that people were shopping at Costco to save money, so he capitalized on it. In an effort to minimize the operating costs of the business, Senegal decided that all stores would have concrete floors, minimal decor, and all products would be displayed on pallets (Gamble et al., 2016). This approach allowed Senegal to provide his customers with a substantial amount of savings. Furthermore, limits were set company wide on the amount of profit that Costco was willing to make on each product. Costco decided they were willing to accept a 14 percent profit margin on nationally distributed products, and approximately a 20 percent profit margin on their private label brand (Gamble et al., 2016). Making strategic decisions that were aligned with the company’s two main objectives allowed Costco to choose how they wanted to compete, and what role they wanted to play in the discount retail marketplace.

Another aspect of Costco’s success can be attributed to the positive way that they treat their employees. Through the lens of Costco as a whole, the customer always comes first, but no task can be accomplished without a skilled and dedicated workforce. In terms of finances, Costco is known to pay more per hour than their closest competitor, Sam’s Club. Cashiers at Costco can expect to earn between $14 and $15 per hour, whereas cashiers at Sam’s club can expect to make about $11 per hour (Miller, 2020).

Costco also offers benefit packages for both full-time and part time employees, which is something none of their competition does (Gamble et al., 2016). At Costco, all employees are entitled to healthcare plans that include coverage for mental illness, substance abuse, and full dental coverage (Gamble et al., 2016). While Costco offers standard benefits they also offer enhanced options for their employees, which can be used to demonstrate what their workforce means to them. An important element that they offer is referred to as a dependent care reimbursement plan, which allows employees to pay for daycare with their pretax earnings, which can save families thousands of dollars per year (Gamble et al., 2016). It is evident that Costco puts forth an immense amount of effort into taking care of their employees, and those employees reciprocate with their dedication and loyalty. The fact that Costco has an employee turnover rate of under six percent, and an executive turnover under one percent is proof of their success (Short, 2017).

It seems as though Costco has a considerable competitive advantage over Bj’s Wholesale Club, which can be proven by comparison of their financial ratios. One can argue that Costco’s largest competitive advantage stems from the fact that they have the most stores nationwide. In 2019, Costco had 785 stores, while Bj’s had only 216 stores (Costco Wholesale, 2019). Having nearly four times as many stores means that Costco is accessible to nearly four times as many people. With that being said, consider Costco’s emphasis on customer satisfaction, and it can be deduced that four times as many people are having four times as many positive experiences. This is further reflected in the fact that in 2019 Costco had over 98 million paid members, while BJ’s only had 5.5 million paid members (Costco Wholesale, 2019).

The numbers above clearly have an effect on their respective companies’ finances. The current ratio of any company, which is current assets divided by current liabilities, essentially states a company’s ability to pay its debts within the next year. A ratio of 1:1 is considered the benchmark, and can be interpreted as the company will be able to stay in business for the next year. While it is only one of many financial determinants, it is a significant indicator of the health of a business. Since 2018 Costco has had current ratios that have been over one, but Bj’s has consistently come in at just under one (Macrotrends, 2014).

All things considered, Costco’s emphasis on following their internal Code of Ethics has had the greatest direct effect on their business’s culture. Costco’s Code of Ethics has Five Pillars, which are, obey the law, take care of our members, take care of our employees, respect our suppliers, and reward our shareholders (Gamble et al., 2016). Adhering to these Five Pillars has had an extremely positive effect on Costco’s organizational culture. Obeying the law forbids the organization from committing any fraud, and encourages team members to be law abiding. This way, the company will always be in good standing with the government and the marketplace. Taking care of their members and constantly trying to improve their experiences benefits them because they will always have the best chance of maintaining profitability and growth. If they can remain profitable, then they will be able to take care of their employees to continually higher degrees. This will then allow their employees to take better care of their paid members. By respecting suppliers, Costco suppliers will always do what they can to provide them with the best products at the best prices. If they can execute pillars one through four, then they will finally be able to reward their shareholders who will continue to invest in them, and perpetuate future success.

Overall, the revenue stream that is most vital to Costco’s continued success is the revenue they receive from their membership fees. Between the years of 2011 and 2015 their membership fees accounted for the majority of their net income. In 2015, Costco’s net sales were $113,666,000,000.00, and total membership fees were $2,533,000,000 for a combined total revenue of $116,199,000.00 (Gamble et al., 2016). Once Costco’s costs were deducted, they made a net profit of $2,377,000,000.00. Taking everything into account, the value that Costco offers their customers in the form of lower prices is a result of their membership fee. It is simple, Costco knows they will profit at the end of the year due to the membership fee, so they feel less pressure to make an outstanding profit on each individual product.