Before the implementation of a new ordering system, Girl Scout Cookies faced several challenges. In particular, they had to cope with an excessive amount of paperwork (Laudon & Laudon, 2007). For example, the employees had to mark their sales on individual order cards that were later transferred to the troop leaders. In turn, these cards had to be delivered to local headquarters and only then these data had to be provided to manufacturers.
Thus, one can say that this process was very time-consuming. Moreover, it involved a great number of steps. Furthermore, such an approach did have any safeguards against the individual mistakes of workers. For instance, one can mention calculation errors (Laudon & Laudon, 2007). Thus, the new ordering system had to address these problems; otherwise the performance of the company could decline.
In order to respond to these issues the management of Girl Scout Cookies adopted a computerized system called QuickBase. It is a Web-based software solution that is specifically designed for the needs of small businesses. This program enables companies to create various database applications that are used to transfer various kinds of data between different departments.
The main advantage of this solution is that it is very inexpensive and user-friendly (Laudon & Laudon, 2007). It should be noted that other many businesses pay attention to user-friendliness of software solutions, because they do want to spend money on the training of employees (Vaman, 2007, p. 95). These examples indicate that management should pay attention to the skills of their workers and their needs.
Overall, the adoption of this system brought several changes to the company. First of all, it reduced the time that company needed to processes each of its orders placed by the clients. As soon as they received a request from the customer, they could start working on the order almost immediately.
Moreover, computerized order tracking system enabled the company to reduce the calculation errors of the employees by more 90 percent (Laudon & Laudon, 2007). Finally, the adoption of this software helped them develop shipment schedules (Laudon & Laudon, 2007). Thus, one can argue that the new system greatly increased the efficiency of the company. This is the main benefit brought by the new system.
This case illustrates several challenges faced by businesses, especially when they want to implement new software solutions. First of all, the development of an ordering system is a time-consuming and expensive process. Therefore, not every organization can afford such a solution and the management should determine which application best suits the interests of a company.
Additionally, companies should remember that their workers may not necessarily know how to use new programs. So, companies should choose such applications that offer a good ratio of efficiency and user-friendliness. This is another issue that should be overlooked. Nevertheless, the case of Girl Scout Cookies shows that these challenges can be overcome.
On the whole, businesses are greatly dependent on their ability to incorporate new technologies. These tools are essential for remaining competitive and satisfying the needs of the clients. Businesses should be able to identify their needs and understand the expectations of customers. Only in this way, companies can better implement information technologies. The case of Girl Scout Cookies shows how small businesses can improve their performance.
Reference List
Laudon, K. & Laudon J. (2007). Essentials of business information systems. Philadelphia: Pennsylvania State University.
Vaman, J. (2007). ERP in Practice: ERP Strategies for Steering Organizational Competence and Competitive Advantage. New York: Tata McGraw-Hill Education.
The marketing strategies used by an organization play a pivotal role towards determining the success or failure of the organization. In order for an organization to market its products and services successfully, it must research and understand the needs of the consumers, and use this information to develop products and services that satisfactorily address those needs.
One way of achieving this aim is by developing models that evaluate the consumer buying behavior within a given market. This paper shall describe the steps followed by consumers in the process of buying oatmeal manufactured by Quaker Oats Company. The cultural factors that influence consumers to buy this product shall also be discussed.
There are five steps that consumers take in order to make a conclusive purchasing decision. The rate at which consumers pass through these stages depends on the price, place, promotion and product being sold. Below is a graphical representation of the consumer buying behavior:
Figure 1: Consumer Buying Behavior Model
In regard to the selected product (Oatmeal), the consumers recognizes the need or problem. This can be triggered by an internal stimuli (hunger), which drives the consumer towards buying this product. After identifying the need or desire, the consumer may or may not look for information about the product.
If the consumer has used the product before, he/she may buy the product again. However, if the consumer has not yet used the product, he/she may obtain the information about this product from personal or commercial sources. For the oatmeal, commercial sources such as advertisements, packaging and dealers could be useful for potential consumers.
The information gathered gives consumers a set of brand choices. In order to select the preferred brand, consumer compare and contrast the brand from a logical or evaluative processes. Some may use calculations (price and content preferences) or choose the product brand on impulse or intuition.
After evaluating the alternatives, the consumer ranks the brands and decides which one to buy. The purchase decision is based on the price, income and expected benefits of the product. As such, the consumers may buy the oatmeal as a result of its competitive price, its health benefits and its impact on the consumers pocket.
The post purchase behavior of consumers refers to the attitude and perceptions the consumers have in regard to the products ability to satisfy the identified need. During this step, consumers weigh their expectations against the performance of the product. If the gap between these two factors is large, the consumers will be disappointed, but if the gap is small, the consumers will be satisfied and delighted with the product.
Cultural influences on consumers Buying Behavior
According to Sheth (2011), cultural factors have a significant impact on a consumers buying behaviors. Cultural factors largely influence the wants and behaviors of an individual in regard to value systems, perceptions, material comfort and practicality among others (Sheth, 2011). In order to sell the oatmeal profitably, due consideration should be given to the culture, subculture and social classes within a given market.
Marketers should do research in order to ascertain the income levels of the selected market segment, the value system of the consumers and the impact family and friends have on an individuals purchasing process. Understanding how the aforementioned cultural factors impact buying behaviors will enable marketers to come up with a price and product that meets the consumers cultural expectations.
In addition, such an understanding will enable marketers to promote the product in a manner that guarantees success. Failure to consider these factors may lead to dissatisfaction among the consumers, and losses to the manufacturers.
Reference
Sheth, J. (2011). Models of Buyers Behavior: Conceptual, Quantitative and Empirical. Illinois: Marketing Classics Press.
Trying to understand which Smartphone brand and model is the most popular among students, and why this specific brand and model is the most popular, it is essential to conduct a research applying to the questionnaire.
The questionnaire should contain the questions which are essential for the research and some particular questions which may help to understand what students need. The range of the data which is to be collected is to be focused on two main questions, which brand and model students need and which criteria they are guided by while making a choice.
Here is a list of the major laptop brands and their latest models students may be interested into, BlackBerry, LG, Motorola, Nokia, Sony, Samsung, HTC, and Apple iPhone (UK study, 2010). It is important to check the latest models of each of the brands to make sure that students are informed about the latest data and all of them stay at one and the same position of being informed.
After the model and the brand have already been considered, it is essential to understand the possible key reasons student can have for voting a brand and model.
The most varied reasons may be as follows, favorable appearance, appropriate size, necessary weight, positive reputation, user friendliness in use, fit for studying/business/entertainment purposes, correspondence to the personal needs requirements. Some students may have some particular requirements they pursue when choosing a Smartphone based on their private characteristics and needs.
Therefore, this is the main data which is to be gathered to understand what Smartphone students want to have. To make sure that all the questions are included in the questionnaire and that al the questions are appropriate, it is essential to create a questionnaire which is going to be offered to students with the explanation why this specific question is to be included.
A Questionnaire for the Research Subjects
Choosing the Smartphone, which of the following reasons are you guided by?
Brand image
Attractiveness of the Smartphone models
Functionality (including appropriate platforms)
Your variant
This question is helpful in understanding whether students choice is based on the reasonable thinking or on advertising. Choosing a Smartphone, students are usually guided by ne primary reason and other ideas just support their choice, will, the main criteria is the only one and the better the researchers understand what this criteria is, the better outcome may be expected.
Which of the mentioned brand/model do you like more? Please tick those you prefer most of all.
BlackBerry
LG
Motorola
Nokia
Sony
Samsung
HTC
Apple iPhone
Your variant
The information gathered in this question will help the researchers to understand students desires in the means of the brand company. Each of the brands is based on the specific platforms which define their functionality. Android, Windows, and Galaxy are the most popular platforms, therefore, choosing the brand, students usually choose the platform they want to work with. The information considered from this question will help determine which brand of the Smartphone will be chosen.
What are the reasons which led you to the first choice?
Appearance
Size
Weight
Functionality
Possibilities
Positive reputation
User friendliness in use
Fitting studying/business/entertainment purposes
Correspondence to the personal needs requirements
GPS, Wi-Fi, etc.
This question helps understand what students expect from a Smartphone, whether the size and appearance are more important or the functionality and the availability of the additional services play a vital role.
What would you choose, the latest brand which does not correspond to your initial needs or the previous model which comprises all the functional possibilities you need?
The latest brand which does not correspond to your needs
The past model which comprises all the functional possibilities you need
Te information considered from this question will help understand the reasonable choice of students and their practical application of the possibility. Smartphones are going to be presented to the best students and it is important to understand how the new facility is going to be used. Moreover, students will direct the choice of the researchers to the necessary model.
Secondary and Primary Research Method(s) Used to Collect the Necessary Data with Merits and Possible Shortcomings
Questionnaire mentioned above is the primary research which is to be conducted while selecting the Smartphone model. After the information is synthesizes and analyzed, it would be possible to name the brand and the model of a Smartphone which is going to be selected for the present.
The primary research should be completed by all third year students (even though who do not have GPA 3.5 at the moment) as there is a possibility that this situation will motivate students to study better. To make sure that the choice of the Smartphone is correct and students will get what they really want and need, it is possible to conduct one more research based on gathering the information about the cell phones students have at the moment.
This information will help in understand what students have, whether they are satisfied with their choice or not and what they want to change in their Smartphone. Both primary research works may be organized online to save the time on the research and to give all students an opportunity to answer the questions they want to.
The next step the researchers are to complete is to find the shop which will deliver such a great number of the items from the best price. Torres (2012) is sure that the Internet is the best place for buying in this case and it is impossible to disagree with this information.
The researchers are to conduct a thorough search and to define which of the online shop is the most appropriate. The Internet is full of different offers and the secondary research should be based on the comparison and contrast of the conditions of the purchase and the price.
The initial search shows that ACMEmarkets.com, Shopping.com, EBay, Amazon.com, Buyonlinenow.com, Buy.com, Overstock.com and Flipkart.com are the most spread online shops which may offer the required items.
Apart from the search of the appropriate place for buying the Smartphone basing on the price characteristics, it is essential to conduct a research and to find out how each of the services delivers the items and how responsible each of them are about the sold products. The feedbacks should be read with the reference to the company website to understand whether the service can guarantee the warranty.
Reference List
Torres, M. (2012). Comparison: Buying Online vs. In A Store. About.com TV/Video. Web.
UK study: only 10% of Smartphone owners expect to buy a new Nokia (41% want an iPhone). (2010, July 10). Unwired view.com. Web.
Importance of Vision, Mission and Values of an Organization
It should be noted that long term goals play a crucial role in any organizations development plans as compared to short term goals. Consequently, organizations have been known to put in place visions, missions and values to encourage stakeholders focus on a common goal.
Though visions, missions and values of organizations appear as meaningless statements to some people, they play a very important role in the quest to achieve long term objectives. They provide pillars on which organizations base their day-to-day aims as well as roadmaps on which long term strategies are founded (Hirschey, 2008). By aligning an organizations vision, mission and values with the organizations long term strategies, employees and other stakeholders are given a yard stick to measure their activities.
Furthermore, it has been noted that an organization whose strategic plans are in harmony with its vision, mission and values is more likely to succeed in the long run. All organizations aspire to be sustainable in the long run. In this regard, positive organizational culture is paramount in achieving these aims.
However, organizational culture can only be fostered if proper vision, mission and values are put in place. In addition, company vision, mission and values are used guiding principals in streamlining projects so as to attain desired outcomes. In a nutshell, vision, mission and values give specific aims that a firm seeks to achieve.
Techniques of Environmental Analysis
Analysis of business environment is very important in determining success of an organization. Organizations use many techniques in analyzing business environment though cross-impact analysis and expert opinion are more effective. Cross-impact analysis allows comparison of variables besides forecasting of events (Freeman, 2010).
On the same note, cross-impact analysis does not require extensive knowledge in mathematics for one to be able to use the model. As a result, many employees can be able to use it. Similarly, expert opinion technique is highly beneficial since it involves professional advice. Professionals are well experienced in matters relating to their areas of specialization and will, therefore, be in a good position to forecast future events.
Though situations change, it has been noted that there is a tendency of circumstances being repeated overtime (Hirschey, 2008). Consequently, people experienced in various areas will be able to tell the expected trend of events. Incidentally, environmental analysis is crucial in ensuring long term sustainability and should therefore be dexterously handled. It is important to note that organizational effectiveness is influenced by both internal and external factors.
Factors Influencing Organizational Effectiveness
In order to achieve long term goals of an organization, various factors have to be in play. To begin with, positive organizational culture should be insisted on since it ensures that all stakeholders work towards a common goal. Additionally, all strategies implemented by an organization should be customer focused, because an organization cannot survive without customers (Freeman, 2010). Moreover, reaction to any changes in the market should be swift in order to gain competitive advantage.
In Addition, an organization where decision making process is decentralized is likely to perform better, because it is easy to react to abrupt changes in the market. On the contrary, organizations where top management makes all decisions are ineffective since it takes time to implement policies. Similarly, organizations with high ability of adapting to changes in the environment usually have sustainable growth (Freeman, 2010).
References
Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. New York: Cambridge University Press.
Hirschey, M. (2008). Fundamentals of Managerial Economics. Stanford: Cengage Learning.
Currently, the world has numerous and well established Global Financial Centres (GFC). Most of these Financial Centres do not only yearn to be dominant, but also to be recognized as key regional and international GFC. Literature on international finance shows that in the last few decades, there has been the emergence of several Financial Centres in different areas across the globe.
These GFCs have shown different levels of financial and operational success. Amongst the top ranked global financial centres are Toronto, Geneva, Chicago, Tokyo, Seoul, Zurich, Singapore, Hong Kong, New York City, and London. The list is in ascending order. A worldwide city or home to stock exchange, businesses, and banking defines a financial centre. Therefore, international financial centre is not a specific word for describing important participation in the financial trade market (Central Bank of Jordan, 2012).
The modern telecommunication provision and great worldwide financial organization has generated uninterrupted and permanent global financial market. The outlay of transportation and complexity in communication has been decreasing constantly over the recent years.
This has fostered the development of a solitary money market in the globe. The Jordanian government gave its support to the proposal of changing the biggest and best-known city of Jordan to a GFC. This was in addition to the existing IFC. A working organization make-up was fashioned with the aim of changing Jordan to a regional finance centre. Later it emerged as one of the most significant among the well-established IFC (Ferguson, 2008). The innovations were intended to warrant the future status and potentiality of Jordan as an IFC.
There is no agreement reached on the common meaning of a Financial Centre. The place where clients and providers of financial services convene to carry out big business can best define it. In fact, this description summarises both the international and domestic financial centres definitions.
It can also be an accumulation of the foreign finance, overhaul ventures, and commercial operation centres. The objective of a FC is the provision of high-level monetary and specialized services more willingly than retail banking services. These services serve the universal, local, and nationwide nonfinancial and financial organization headquarters. Conversely, a place where financial institutions and banks are highly concentrated is a financial centre (Central Bank of Jordan, 2012).
The objectives and reasons for establishing the Jordan Financial Centre (JNFC)
The JNFC was established to boost the economic atmosphere for investment in Jordan Empire. This was a dignified dream of King Abdullah (II). The king yearned for a strengthened development of financial centres in the region. The King established JNFC out of the JSC (Jordan Securities Commission) honour.
This Centre is a representation of the nations economic force and signifies the major market enlargement in Jordan. With conformity to the international customs and principles, this centre has united economic, societal, and cultural facets in the capital market. It has maintained sound settings for investments through its general purpose.
Furthermore, JNFC has implemented information guidelines and promoted growth concerning marketplace safety through overseas speculation. This multifaceted financial project has a number of bank subdivisions, agencies and representatives, Investor Halls, Security Deposit Centres, Amman Stocks Exchange, and Finance Study Centres (Jordan Securities Commission, 2012).
Jordan has established innovative financial hubs for recognition to improve capital markets venture operations both locally and abroad. The centre has computerized packed trading structure in bank office, house brokerage, and exchange. This latest centre is adjacent to current Amman Stocks Exchange. It has augmented investment environment in the states capital market as a local centre. Moreover, in agreement to the paramount global practices, it has established protected and eye-catching environment.
Hence, JNFC is recognized and has more than one hundred programmed corporations. This brings its capital in the market to nearly $32.40 billion. The state does not put restriction on foreign ownership. Thus, non-residents in Jordan possess above 46.0% of the listed corporations. The financial sector in Jordan is well organized (Association of Banks in Jordan, 2010).
The JNFC provides easy and efficient business operations in international finance for profitability. It has a recognized workforce talent and experienced administration to cover up co-dependent services like official and accounting, finance, and businesses.
This makes available multi-disciplined teams to facilitate great overseas connections in the shortest period possible. Further, this centre has a profound liquidity and superiority in the capital market. Hence, it competes and regulates taxes globally with flow in offshore production and foreign investment (Sheikh-Miller, 2007).
Jordans worth to financial services significantly multiplies through labour force that promptly responds through groundbreaking techniques. Moreover, it has the best information technology and telecommunication worldwide with multilingual and intellectual workforce. This makes the location for the financial services to be well organized (Association of Banks in Jordan, 2010). JNFC provides customers with fascinating and hospitable surroundings for business transaction.
JNFC deals in diverse and major currencies in the world, and not just the legal state tendering. Therefore, financial transactions links is indirect to the domestic banking system. JNFC is thus an offshore financial centre since it not only deals in domestic money, but also in offshore currencies to allow foreign investment.
JNFC renders foreign transactions on tax-free basis and enjoys exchange controls imposed on domestic financial transactions. The recognition of this irregularity by the government is the major reason why there is extraordinary growth in Eurodollars market and Eurocurrency in foreign investment. Jordan has executed the provision of financial services to both natives and non-residents.
The Jordanian government inspects the possibility of interference from inhabitants and the intercontinental centre (Sheikh-Miller, 2007). Nevertheless, this has propelled JNFC to balance its conflicting objectives. This has made JNFC to be recognized as a regulator of residents probable exploitation and an advocate of IFC.
The pros to Jordan Financial Centre emerging as regional or GFC
Jordan is perceived as one of the biggest Arabic countries and is a gateway market in the region. In fact, most financial activities and manufacturing services occur around and some in Jordan city. To add on that, the City of Jordan has emerged to be amongst the globally enormous metropolis and it is currently described as the business and economic capital.
A majority of Jordan population stays in the city where the Financial Centre was constructed. They generate nearly 27% of the total economic output, about half of the total countrys exports, and 40% of the tax revenues (Presley, 2012). Within these types of potentials around its Financial Centre, the government of Jordan is able to turn the Jordan Financial Centre into a global or regional financial one.
The aim of being a global or regional financial centre is spearheaded by various prospective advantages the FC has around it. For instance, Jordan has vast human capital as well as other resources such as the dynamic and youthful educated labour force. These groups are able to execute most monetary transmission activities. Secondly, Jordan has a stable and favourable macroeconomic environment that can facilitate the activities and business or financial activities of the JFC.
Third, the country is politically determined and is seen as a regional power, hence, it stands a better chance of enhancing most financial business operations that are undertaken by the Financial Centre. Fourth, the quality of financial services offered, rapid Jordan economic growth, and its geographical location gives JFC an upper to become a global or regional Financial Centre (Bank Audi sal, 2008).
Therefore, the advantages that Jordan Financial Centre has, which can help it become a global or regional financial centre can be summarized in terms of strengths and opportunities. The strengths and opportunities include:
In the emerging cities outlook and global cities index, the 2012 report indicated that Jordan would be amongst the most important city vectors in the coming years. Jordan is acknowledged as a pivot amid west and east. It has enough expertise and rich in regal culture that can govern financial interactions (Bank Audi sal, 2008).
The country has up to date airports, which connect Jordan to major cities, business, and financial centres around the world.
Jordan has a complimentary time zone. The countrys geographical position puts its close to various upcoming markets in the Black Sea Region, Central Asia, Eastern Europe, North Africa, Gulf, and the Middle East. These are amongst the advantages that Jordan has that will steer its financial centre into a global one (Sheikh-Miller, 2007).
Jordans commitment to the European Union accession namely; changes in the structures of economic governance, changes in the framework of macroeconomic policy, and single marketplace integration is an added advantage to Jordan Financial Centre operations (Presley, 2012).
Jordan is amongst the largest global economies, and the government has the strong will of establishing Jordan Financial Centre.
There is profitable and sturdy banking Sector in Jordan. Therefore, the strong and adequate capital of Jordan banks is beyond the authorized 8% limit.
Jordan has better commercial banking when compared to other rivalry International Financial Centres in the area.
There are skilled and high quality workforces in the banking field. These labour forces can easily be accessed at relatively lower costs. This is because approximately 21% of Jordans increasingly educated and youthful workforce resides in the city where the Financial Centre is constructed (Central Bank of Jordan, 2012). Thus, numerical labour shortages are unheard of in the market for labour.
When compared to other G20 nations, Jordan has cheaper rates. This implies that, professionals who offer financial services are able to benefit from identical or even high living standards from other International Financial Centres that charge low costs.
Jordan does not restrict foreigners from acquiring real estates
The cons to Jordan Financial Centre emerging as regional or GFC
Jordan occasionally experiences current account deficits and low savings rates. This makes the country to be financed or funded through interim capital inflows
Jordan has very few lawyers in the financial service industry to offer legal advice on financial matters.
There is a great traffic congestion problem in Jordan. For instance, Jordan transportation is typically through private automobiles, taxis, minibuses, or buses.
The taxation system is quite complicated. Various documents must go along with tax statements either annually, quarterly, or monthly.
Jordan has comparatively weak derivatives, private sector bonds market, and stock market capitalization. This gives the country a weaker national brand image.
While Jordan has a pool of skilled workforces, the labour force lacks proficiency in speaking English.
The success and future outlook of Jordan Financial Centre
The JNFC has achieved its objectives under several aspects. It has succeeded in erecting new finance centre, lured investors through stocks exchange, opened up novel banks, and actively competed with other GFC. This has helped the centre to plan for its future growth.
New finance centre in Jordan
The erection of the JNFC cost approximately seventy million US dollars. It offers offices for bank, brokerage, and is the current quarters for Amman Stocks Exchange. It has fully enlarged to a fledged local finance centre that makes safe distant investment in the empire. The current site of the JNFC is in Arjan region near Amman Stocks Exchange.
The area measures about seven hundred and forty thousand square feet and holds the regions training facility (Jordan Securities Commission, 2012). The Commission of Jordan Securities laid down this facility, and its cost depicts what Jordan will reap in the end. This centre follows the global FC practices and develops the modern computerized systems for trade and communications.
Appeal to investors by Amman Stocks Exchange
The financial centre operates as a crowd-puller to advance investment from foreign investors. This is rational because Amman Stocks Exchange interests are over and done.
The stock market in the empire is not restricting foreign investments. Inhabitants from Arabic region can own and invest in Jordan. Nevertheless, JNFC has attracted a number of investors since the economic stability and resource protection is high in Jordan. Thus, investors from areas like Iraq and Lebanon whose states are politically disarrayed and affected invest in JNFC (Ferguson, 2008).
There was a drastic drop in the proceeds of Amman Stock Exchange along with other bourses in the Middle East. Despite this, not less than forty-five percent of listed shares are in the alien investors ownership. In recent years, the Stock Exchange fell off by thirty three percent resulting into 21% plunge in market capitalization. Today its capitalization has tripled and ranges at $31.10 billion. This gain is coming from the large number of well-informed investors who come from the Gulf (Central Bank of Jordan, 2012).
Jordans new fangled banks
Jordan has encouraged overseas investment in the sector of finance. This move has attracted new Arab firms that are listed on the nations capital market. Hence, the establishment of JNFC has boosted the Kuwait Finance House in Bahrain to open up a bank in Jordan at a cost of $50.00 million.
The Jordan-Kuwait Finance House is an auxiliary entirely possessed by Bahrain. It has networks covering in Malaysia, Turkey, Bahrain, and Kuwait. Moreover, the bank centre of attention is on activities like acquirement, investment advice giving, and investment banking (Association of Banks in Jordan, 2010).
Besides, extra express distant investment into the empire gets critical support from the bank. The Jordan-Kuwait Finance House came into partnership with Jordan Industrial Development Bank at the same time with Dubai Islamic Bank, Dubai International Capital, and the Jordan Dubai Capital.
This resulted into increased capital of more than $100.00. Thus, they got their hands into the main stake at the Jordan Industrial Development Bank and in JNFC (Jordan Securities Commission, 2012). The Foreign Service suppliers and banks are seeing logical prospective in the financial sectors in Jordan. Therefore, other foreign companies are focusing to ascertain and open up in the kingdom. This will boost the operations of the JNFC.
Market competition in Jordan
This financial centre is not the only organization in the Middle East. In fact, Jordan foreign investment has fostered establishments of many ambitious finance centres in the Gulf region. This has generated supplementary diversification in trade and industry. Actually, Bahrain Financial Harbour, Qatar Financial Centre, and Dubai International Finance Centre offers competition. They proffer low duty, tax-free services, and bid one hundred percent in alien rights. They all target special divisions in the market (Sheikh-Miller, 2007).
With Qatars richness in natural resources, Bahrain and Dubai dominate service-based economy. Thus, they all correspondently compete to be most excellent financial centres in the Peninsula of Arabia. Contrary, it is advantageous for Jordan to be the most logical finance centre in the Levant region.
This is because of its geographic location that detaches it from the Gulf. Without doubt, it is probable that investors would be ploughing more investment funds into Jordan. These are the financial overhaul providers, and investors from the Gulf region tend to diversify their investment collections (Sheikh-Miller, 2007).
Conclusion
In the Arabic region, there are various International Global Financial Centres including the Bahrain Financial Harbour, and the Qatar Financial Centre, and the Dubai IFC. However, despite being well established, Jordan Financial Centre imposes serious market competition to these GFC.
The country has stable and rapid economic growth, offers quality financial services, is geographically well positioned, enjoys political determination, as well as regional power (Jordan Securities Commission, 2012). Besides, Jordans macroeconomic environment is favourable and the country has vast dynamic, low priced, and young workforce that can offer expertise financial services.
Despite these strengths, the long-term operation of Jordan Financial Centre still faces various setbacks. These include complicated tax system, inadequate infrastructure, weak legal framework, and unstable financial environment. All these factors can hinder the success of Jordan in becoming a universal financial centre.
References
Association of Banks in Jordan (2010). Development of the Jordanian banking sector (2000 2010). Web.
Bank Audi sal (2008). Jordan economic report: challenging twin deficits in a wait and see mode economy. Web.
This report entails the information obtained after doing a research on competitive advantage in respect to Top Five Marketing Company. The purpose of the study is to investigate strategy and competitive advantage of private marketing companies both in theory and practice.
The outstanding problem obtained from this study is that despite the awareness created by various scholars, investors still lack the basic knowledge on how to improve their earnings by using strategic and competitive advantages. This is the sole reason why this study was conducted.
Data was collected using questionnaires for employees, the managers and customers. The study sampled five hundred and seventy two employees and ten top level managers and fifty customers using purposive sampling techniques. Data collected was analyzed using both inferential and descriptive statistics. The techniques used in the data analysis were chi-square and Carl Pearsons product Moment Correlation Coefficient.
Major findings from the questionnaires clearly indicated that various staffing techniques were affecting good customer relation that had existed as a competitive advantage of this company for a long time. Based on these findings, the company can do better than fellow competitors only when it implements three strategies; lowering its prices, improving its customer care and producing additional benefits (Thompson, Peteraf et al, 2011).
Literature Review
Competitive advantage is the gain over fellow competitors by offering better quality products or services (Boxwell, 2002).Competencies are clusters of related knowledge or attitude that have an effect on a major part of ones job or even responsibility (Jackson, Hitt and DeNisi, 2003).In Top Five Marketing Company, competitive advantage is about increasing profits and having long term policies on improvement.
This study looks at what defines competitive advantage so that comprehensive strategies can be found to look into when building a competitive advantage. Since the products and markets are well differentiated in the Big Five Company, it is therefore easy to define this term. Customers are always present for a reason. Therefore, successfully growing businesses like Top Five should maximize on a strong competitive edge to create loyal customers.
Top Five Company relies on other companies for revenue by marketing its products and services whilst getting payments from them. Strategies that do not focus on volume and cost are deployed to expand the business. Since there are no productions involved, focus remains on staffing the organization, mission statement, building competitive advantage and structuring the organization and work effort (Thompson, Peteraf et al, 2011).
Staffing the organization
The experience and skills of a manager is important in improving the customer base. Managerial incompetence has for a long time lead to business failures (Thomson, 2014). This organization engages in questioning the integrity the management of the staff before they are recruited. Additionally, staff recruitments are purely based on merit and not biasness.
Mission statement
Mission statement is important because it gears an organization towards its goals. It always keeps the working structure in track to ensure no one fails. It also gives an advantage over other competitors because a better mission statement distinguishes a company from its competitors
Organization structure
An organization structure also influences strategy and competitive advantage. This happens because different structures used in an organization require hierarchy and a comprehensive command chain. An organization is required to consider the cost of each type of structure before implementation (Thomson, 2014). Competitive advantage in itself is enough advantage to an organization. Different organizations rely on different competitive advantages in their daily struggle to make it to the top of the business ladder.
Research Methods
The study was carried out by first preparing questions to be presented to the sampled population. The employees were picked from each department at random. Each employee was first informed on the purpose of the study and allowed to make inquiries in case of confusion on the questions. The questions were well structured, summarized, not long and confusing and were open ended to allow the respondents to provide required information (Singh, 2008).
The research design used was a descriptive case study. This research was carried out within the organization except for a few customers who neighbored the company. It mostly relied on qualitative methodology even though there were few elements of quantitative data needed like increase in the number of customers when new employees are brought to the company.
The research instruments and data collection methods were faced with a challenge of uncompleted questionnaires especially from the employees. Further findings showed that most of the employees were so busy that they could not remember to fill the questionnaires. Some also failed to return the questionnaires making it very difficult to retrieve the information. However, follow up procedures were induced to counter these challenges.
Result
Since this was a qualitative study, the findings in each of the study can be presented in details. This company is involved in IT solution, media marketing services and event management. First, it was discovered that Top Five Company had a mission statement where its road mark begins. The mission declares its purpose as a company and acts as a standard against which it weighs its actions and decisions. It also has a policy statement that is well developed and communicates well with the stakeholders.
The policy statement has helped in monitoring and governing protocols which authorize causes of action. This company is owned and managed by Mr. Albert Gayo and Joyce Akogta who have twenty years of experience. The respondents indicated that the management has provided good leadership and vision which have ensured the accomplishment of goals and objectives.
The company is fully equipped with better, customized customer services. Guests connected to this company always experience a unique extent of customer satisfaction (Boxwell, 2004). Since better services are also vital in improving competitive advantage the company has over its competitors and the projected strategies, the company has invested in providing promoters, entertainers, and corporate events to improve its services and customer satisfaction.
Staffing in this organization is, therefore, done by experienced personnel to prevent disastrous errors during and recruitment. IT specialists, for instance, are recruited after every two years to help with implementing necessary advancements in security. They are also expected to help in the installation and upgrading of the CCTV cameras and access control systems.
From the study, Top Five Company developed a Technical assistance Program where theories were developed to enhance peoples knowledge, skills and attitude. This program also helped in the implementation of other programs in the organization.
Being a marketing company, the study had its focus on marketing dissemination and communication. The manner in which the company had been persuading sellers and convincing target population was realized when many respondents indicated that it was the quality of the services (Singh, 2008).
One respondent, a Chief executive Officer of a neighboring IT company, indicated in his final statement that it was the good customer services that made him loyal to Top Five. The prices were relatively higher when comparisons were made with various marketing companies but Top Five still gave its customers reasons to stay with it. From the above findings, study showed that this company had various competitive advantages.
Nonetheless, the study also showed the progress of these advantages over time. What influenced the changes of the competitive advantages was discovered in details. The company never had experienced and skilled top managers at the beginning. The current human resource manager indicated that he joined Top Five in 2006. Being his first time as a manager he faced quite a number of challenges.
Most of the employees were asked whether there were improvement in the management operations. Amazingly, their responses were positive. They all acknowledged the fact that the companys management has improved considerably. Top five companies had a good customer base for a long time until five years ago when various marketing companies came up hence increasing the level of competition.
Though it lost customers, some few respondents indicated that there were some loyal customers who stood their grounds. The study showed that the loyalty was due to the ability of Top Five Company to treat employees with maturity and to handle customers and partners fairly. Unlike their competitors where it was the end that justifies the means, it maintained trust and respect to increase its customer base (Boxwell, 2004).
One respondent, in his last statement, wrote that attracting customers was like fishing. One could not just dive in and grab the fish. It, on the contrary, involved baiting the hook and dangling the warm. Top Five has, for all that time, had a good record when it comes to attracting the customers. Several other people, both in the management and customers, supported this sentiment.
Volume discounts, giveaways, and sales promotions are among the methods Top Five used to attract customers. Another competitive advantage given by 10% of the sample population was the brand name recognition which was carefully conceived by an excellent marketing plan. The brand name focused on the customers as the major focus because it contributed to the business success. The marketing manager acknowledged that this was a good marketing strategy.
Top Five company had is structure in terms of functions. There was the overall Chief Executive officer. Those who reported to the CEO included the IT manager, the marketing manager, finance manager, human resource manager, operations manager and finally the public relations manager.
This study showed that the functional structure become very expensive due to increase in markets. Apart from media marketing and event management, Top Five Company wanted to venture into other investment firms. This would mean hiring a new management team as it has always been before. This response was given by one of the Human Resource Managers. Several suggestions from other respondents also emphasized the need to restructure the system basing their ideas on the increase in cost.
The company had both strengths and weaknesses. It had for a long time focused on solving the issues that caused the gaps to ensure that the competitors did not bridge the gap. It was also discovered from the study that there were various potential strengths that the company had not discovered yet. Such included availability of time, necessary connections and money. The company also had a strategy where key members of the company were assessed by outside experts (Evans, 2012).
Analysis
The information acquired from the sample population helped in making certain conclusions. The information was analyzed in different stages depending in the response obtained. Out of the people who filled the questionnaires, 80% were okay with the current mission statement. Among them, 20% were customers while the rest were managers and employees. This information meant that the companies that pay Top Five to Market their products approve of this statement.
It is therefore right to say that before making a deal with the company, a mission statement can also form part of the customers needs (Boxwell, 2002). As for the company employees and top managers, the mission statement does not matter to them because they are guided by the managers to do their work; this was proven by some employees who did not even know the mission statement.
The responses by managers to questions relating to the experience they had in the company also lead to a conclusion that this company had done a great work in utilizing its human resource. Trainings play an imperative role in creating such great competitive and experienced personnel.
The whole structure was filled with experienced managers and staff. Among the six hundred and eighty two respondents, one hundred and three people gave a positive response when asked whether they liked the way the organization did the staffing. The employees were, however, not satisfied by the way duties were delegated to them. Reasons why such issues arose were because managers never got feedbacks and suggestions from their subordinates (Jackson, and DeNisi, 2003).
Conclusion
From the findings in this study, Top Five Company has a good mission statement. Customers were incorporated in this statement. This can be attributed to the reason why they indicated that they love the statement. Due to increased competition, the company needs to do more in terms of strengthening competencies and core capabilities.
The organization has a good structure except for a few hiccups that need addressing. Various respondents were not okay with the current structure though some agreed but suggested that some adjustments should be done. The employees were also okay with the work effort. The customers showed that they supported the current workers in the organization. The work done by employees should, however, be reduced because some respondents complained of working both in the office and going out to carry out marketing duties.
The study also showed that though the employees had such work load, they understood that the organization was still working out something for them and until then they shall practice patience. Findings on the competitive advantage and how they have changed helped in this study because recommendations could then be made on the issues that had caused the weaknesses like increase in competition.
Actually, this is the main problem that affected Top Fives competitive advantage. There was need to advance more like enter into other ventures in order to increase funds and expand the business so as to increase customer base. This study, therefore, proved that success does not really mean that businesspeople should build a market share. Success is about connecting with the target using the provided strategies and the competitive advantage.
References
Boxwell, R. J. (2004). Benchmarking for competitive advantage. New York: McGraw-Hill.
Evans, N. D. (2012). Business agility: Strategies for gaining competitive advantage through mobile business solutions. Upper saddle River, NJ: Financial Times.
Jackson, S. E., Hitt, M. A., & DeNisi, A. S. (2003). Managing Knowledge for Sustained Competitive Advantage: Designing Strategies for Effective Human Resource Management. San Francisco, CA: Jossey-Bass.
Singh, M. (2008). Strategic management and competitive advantage. New Delhi: Global India Publications.
Thompson, Arthur A., Peteraf, Margaret., Gamble, John E.& Strickland III,A.J.(2011).Crafting and Executing strategy-The Quest for Competitive Advantage: Concept and Case (18th Ed) New York: McGraw-Hill.
The Entrepreneurs Marketing Source Inc (EMS) was started by Brent Banda to offer marketing consultations to small business in Saskatoon. He based his philosophy on a simple principle of penetrating the neglected market comprising of small businesses. The company is based in Canada.
Problem Definition
Entrepreneurs Marketing Source Inc (EMS) is currently faced with the dilemma of either concentrating in the consultancy services for small businesses or venturing into the pre-planned establishment of a prototype workbook targeting small businesses that lack systematic marketing skills.
The Imagine Company has offered the Entrepreneurs Marketing Source Company an opportunity to maximise its gains from consultancy by introducing Brent to more clients needing marketing consultancy services. At the same time, Brents business plan for the Entrepreneurs Marketing Source Company had been to concentrate on the prototype marketing workbook which he projects to earn more income within three years than the consultancy services.
Brent cannot offer the two services at the same time. Thus, this reflective treatise attempts to explicitly review Brents dilemma between continuing with the marketing consultancy services and concentrating on the marketing workbook production.
SWOT Analysis of the EMS Company
A SWOT/TOWS analysis is carried out to highlight the key strengths, weaknesses, threats and opportunities of a company (Hisrich 2011). This will also reveal any bottlenecks that are likely to affect the smooth flow of the projections of the Entrepreneurs Marketing Source Company.
Strengths
The company has already established in the Saskatoon market so it is already into the trade and have previous experience and it offers almost half the market price for its services.
The company has good terms with the small businesses and can deliver high quality marketing services at a reasonable price.
The company has concentrated in the small businesses market segment in offering marketing services that have been ignored by the big marketing players.
Weaknesses
The company has not operated in the United States hence may not have exact projections on the sales of workbook as indicated in the plan.
The company depends on only person as the workforce hence may not maximise its gains in the market.
The company has the disadvantage of unreliability in service delivery since Brent has to do all the work. Apparently, he cannot keep up with the demand despite working for more than 60 hours per week.
Threats
Too many competitors are in the market of Saskatoon, especially the big players with more credibility in offering marketing services.
The success of the company will depend on the reception of the workbook in the markets of Canada and the United States. If the projections dont add up, then the company may take longer to breakeven or may end up collapsing.
Unlike other competitors, the company has the option of consultancy and handbook only. Thus, it cannot franchise to protect its future growth parameters.
Opportunities
The company has an opportunity for unlimited expansion in the market with more than 100,000 small business lacking marketing skills.
The company has the opportunity of attracting more clients through referrals since its local network is well established.
The company has the opportunity of diversifying marketing services beyond consultancy and the marketing handbook.
Entrepreneurs Marketing Source Companys Current Situation
Entrepreneurs Marketing Source Company is projecting to breakeven in the consultancy services by the end of the first year. Besides, the Imagine Company has offered an ideal expansion opportunity since Brent will use the connections at Imagine Company to reach more clients.
However, Brent cannot project the growth of the consultancy services. At the same time, the projected operating income from the workbook sale is likely to attract an operating income of $3,900 in the first year of introduction. This figure is expected to grow to $192, 314 in the third year. Brent has to deal with the dilemma of choosing to continue with the consultancy services or to venture into production of the workbook.
Alternatives Evaluation for the EMS Company
Other than the direct sales of the book, the company may use franchisees. This method entails granting certain rights and powers to a corporation to sell the book hence giving Brent the opportunity to continue with consultancy services as part time (Hisrich 2011).
Some of the risks associated with this approach are difficulty in managing the franchise. In addition, there can also be mistrust over proprietary knowledge among other risks (Hisrich 2011). Brent may also decide either to abandon the consultancy services or the workbook which would translate into reduced growth of the company business.
Recommendation
The best alternative would be franchising the sales of the workbook while concentrating in the expansion of the consultancy services. This alternative is better than abandoning either of the services offered by Brent since it gives the company an opportunity to grow the consultancy and workbook services without having to neglect one side of the business for the other.
Reference
Hisrich, R. (2011). Entrepreneurship. New York: McGraw-Hill Education.
The purpose of this discussion is to analyze the Whole Foods Case in 2008, with an aim of describing the companys generic strategy for growth, its expansion strategy and how it pursued its ambitions in food industry. In addition, the discussion will provide an in-depth SWOT analysis for the companys strategy.
Companys background
Founded as a local supermarket in Austin, Texas, Whole Foods Market has grown over the last 30 years to be the worlds largest retail chain dealing with organic and natural foods (Kesmodel and Eig 12). In fact, the once small chain stores have become large supermarkets, providing a variety of natural and organic foods to the public.
The company is credited for offering high quality, flavoured and naturally preserved foodstuffs, most of which are not processed. The aim of the company is to offer high quality organic and natural foods that satisfy and delight the public, while at the same time creating profits, growth and caring for both the environment and the community.
Generic strategy at Whole Foods Market
In its core value, Whole Foods Market cared for its customers, the environment, the staff and its foods. The slogan whole foods, whole people and whole plant was coined to imply the caring aspect of the company (Thompson Whole foods market 4). To ensure this was done, Whole Foods Market developed a number of strategies.
By providing natural and organic foodstuffs in least processed form, the company sought to cater for human healthcare, the environment and welfare of the community. In fact, it has been regarded as one of the most environmentally friendly or green corporations in the United States. With this strategy, the company sought to attract customers attention and create trust and loyalty among consumers.
Expansion strategy
First, the company sought to expand beyond its original location by directly opening new stores and acquisitions. Since the company needed to grow at a faster rate, more focused was placed on acquisitions, a factor that saw a high rate of growth. For instance, in 2007, the company achieved one of its lifetime goals when it acquired Wild Oats Market.
In addition, this signified the companys ability to venture into new and larger cities and other states, and thus a sign that the company could spread throughout the United States. However, during this time, the economic recession was already underway, which should have proved as a warning to the managers at Whole Foods Market (Thompson Whole foods market 2).
Secondly, the companys growth strategy involved opening new stores and reallocating smaller or old outlets into larger sites in order to ensure visibility and ample parking for customers (Thompson Crafting and Executing Strategy 11). For instance, the company emphasised on locating its new stores next or near to large estates and busy shopping malls.
They considered congestion as a negative factor, while social factors such as levels of income and education, populations purchasing potential and other factors as the most important determinants of location. In fact, since organize and natural foodstuffs attract high income earners, the company would normally seek to locate in or close to primer real estates.
SWOT Analysis
Strengths: While its competitors were busy selling processed products, Whole Foods Market emphasized on least processed products, primarily organic and natural foods. Competitors were selling non-processed foods only in small portions, which made the company develop a strong competitive advantage, considering that this was at a time when health enthusiasts and public health bodies increasingly emphasized on the need for people to take non-processed foods.
Secondly, the company has been marketing itself as a highly responsible organization, which seeks to cater for the customers health, environment and the community. With this as its marketing strategy, Whole Foods Market obtained credit within the community due to its ability to create a strong corporate social responsibility.
Weaknesses: By dealing in highly perishable goods, the company was under the risk of losing millions of dollars in case of a failure in one of its strategies. In addition, the looming economic recession would affect customer purchasing power, as people often tend to cut on costs.
In fact, this became the primary problem affecting the company when the recession finally struck in 2008. In addition, the acquisition of Wild Oats Market came at a time when the latter was experiencing economic hardships, and it would have been difficult to fund the acquired company during the recession.
Opportunities: By focusing on acquisitions, Whole Foods Market had the potential to expand within a short time, especially because the financial risks involved are less significant compared to direct entry into the new markets. Secondly, by and marketing itself as a green company, Whole Foods Market had the opportunity to create trust and loyalty within the community because the issue of health hazards associated with junk and processed foods had been affecting some of its competitors in food industry.
Threats: One of the most critical threats facing the company was the looming recession in 2008, which was on the process of hitting most Americans. Obvious, during any recession, households normally attempt to cut on costs, especially by going for cheap products, cutting on luxuries and some type of foods.
This was the threat at the time because families were willing to cut on the costs they incurred buying some green foodstuffs until the recession was over. Given that the company was dealing in perishable products, the failure by consumers to turn up at the stores meant a great threat to its performance.
Works Cited
Kesmodel, Dave and James Eig. For Whole Foods CEO, A history of brashness. Wall Street Journal 3.1 (2007): A1-12. Print.
Thompson, Arthur. Crafting and Executing Strategy. New York, NY: McGraw-Hill/Irwin, 2009. Print.
. Whole foods market in 2008: vision, core value, and Strategy. Tuscaloosa, AL: The University of Alabama, 2010. Print.
The main problem facing Brent currently is to decide on whether to form an alliance with Imagine or embark on his initial goal of developing a workbook for marketing plan. Forming an alliance with Imagine would help Brent increase his client base. Nonetheless, it would mean that he would spend most of his time offering consultancy services, thus having no time to work on the workbook.
He currently fears that failure to work on the workbook would give another person a chance to work on the same, thus benefiting at his expense. Based on the current situation, he can only pursue one option. He can only work as a consultant or do away with forming an alliance with Imagine and work on developing the workbook.
SWOT analysis
Strengths
High number of small business in need of marketing workbook
High experience in marketing strategies
Flexible and willing to take risks
His image as a successful entrepreneur
An established network of business contact
Weaknesses
Lack of financial resources to develop the workbook
Long duration required to develop the workbook
Lack of experience in graphic designing
Opportunities
High number of small businesses emerging in the US and Canada
Collaborating with local community
Increase in the number of people that use marketing publication to do their purchasing implies that the demand for the workbook would be high
Threats
Threat from big marketing companies
Chances of another person working on the same project before Brent capitalizes in it
Situation
Currently, Brent is contemplating on forming an alliance with Imagine or going it alone. For the duration he has worked with Imagine, his client base has increased leading to an increase in his revenue. On the other hand, he has not had time to work on his workbook as he spends all the time offering consultancy services. By working with Imagine, Brent is guaranteed of getting many referrals from Imagine. Besides, his operational costs would go down, as they would share a building with Imagine.
However, he feels that the alliance would deny him an opportunity to develop the workbook, which he feels would have high returns upon reaching the American market as well as the Canadian market. Magazines, books, and newspapers accounted for significant sales in Canada in 1994. Hence, Brent believes that his workbook would get a positive reception in the market.
Brent has already come up with strategies for selling his workbook, which will ensure that he benefits from the sales. Additionally, the selling price of the workbook relative to its production cost shows that he would make a substantial profit from each copy of the workbook. This aspect leaves him in a dilemma on whether to work on the workbook or form an alliance.
Various alternatives
Brent has two alternatives: the first alternative is forming an alliance with Imagine and delaying his workbook by one year. This move would give him a chance to accumulate money to use in developing his workbook. He would have to dedicate all his energy to offering consultancy services.
The second option is to go it alone. Brent can decide to continue working independently. He can continue offering consultancy services and developing his workbook, which would require him to allocate some of his time to offering consultancy services and the rest to working on his workbook.
Evaluated
Both alternatives would have merits and demerits on Brents ambition. If Brent decides to go it alone and stop working with Imagine, he would have to grapple with raising money required to publish his book.
This element implies that he would have to spend some time working as a consultant and some time working on the workbook. Ultimately, he would have to take time to compile his workbook. Nevertheless, he would have the freedom to adjust his schedule according to his will. In other words, working independently would give him the freedom to plan his program (Knight, 2007).
On the other hand, if he decides to form an alliance with Imagine, he would have an opportunity to raise the required amount of money without many challenges. The alliance would help him to increase his client base. Consequently, his revenue would go high, thus giving him an opportunity to raise the required amount of money faster than when working independently.
In spite of raising the required amount of money without difficulties, Brent would have to put aside his workbook and focus on offering consultancy services. Forming an alliance would limit his freedom. He would have to cooperate with Imagine in offering his services. This requirement would leave him without an alternative but to delay his workbook by one year, which might be detrimental if another person learns about the idea and works on the workbook ahead of him.
Recommendation
Based on the situation, I would recommend Brent to stop forming an alliance and first work independently. This move would give him a chance to work on his workbook and complete it on schedule.
Reason for the recommendation
The workbook looks promising. Hence, it would be imperative for Brent to work on the workbook under all costs. Working independently is the only option that would give him time to compile the workbook. Forming the alliance would increase his workload, thus leaving him with no time to compile the workbook in time.
Reference
Knight, R. M. (2007). Technological innovation in Canada: A comparison between independent entrepreneurs and corporate innovators. Journal of Business Venturing, 4(4), 281-288.
Stakeholders take pride in working with or for PWC because it an internationally recognized firm. It is a Big-4 member of consultancy and accountancy firms around the world. Partners know that belonging to such a strong brand name will offer them security of tenure and tangible benefits.
Furthermore, it has won several awards in its various interests. One of the awards relates to its capacity as a knowledge enterprise in 2010. Another concerns excellence in learning. Finally, the firm has also won acclaim for being one of the best organizations to work for between 2005 to date (PWC Global 4). Stakeholders can view these awards as proof of the value the company places on its resources.
Why the organization is a great place to work for
PWC has consistently delivered in terms of a number of performance metrics. One such alternative is its dedication to revenue growth. It is always looking for opportunities to expand revenue streams either in taxation or auditing services as well as in geographical expansion (Jones 206).
The company has reliable profit margins that indicate it is doing something right. Since taxation and financial services adversely depend on an astute knowledge base, then firms must not compromise on technical excellence. PWC is aware of these competencies and delivers them with utmost dedication (White 92).
The business also prioritizes client satisfaction as this is the central way of generating repeat business. With such an impressive focus on deliverables, workers can be assured of a reliable employer who hardly struggles with financial challenges. This guarantees them steady payment as well as job satisfaction.
When workers work for PWC, they often have the advantage of enjoying favorable pay. Most managers earn approximately $98,000 dollars annually. Conversely, executive assistants, who have the commonest jobs, earn about $64,000. In addition to ones salary, an employee is also entitled to several benefits, such as partial health coverage, access to fitness centers, job sharing, telecommuting as well as having a compressed workweek.
This gives flexibility and capacity to enjoy work-life balance. PWC also hires 27% minorities in the US and 46% women (CNN money 4). They have nondiscrimination policies against marginalized groups and domestic partners for same sex couples may also enjoy these benefits within the US.
3 reasons that have led to the success of the company
Diversification
The companys business model of diversified revenue streams has contributed to its success in the accounting and auditing industry. This organization offers assurance services, which account for a substantial share of the service offerings. In this portfolio, the firm does surveys on customer satisfaction, business risk reviews and many other services in order to furnish managers with adequate information to make right business decisions (Mahreen et. al. 100).
Additionally, the company engages in taxation service; this mostly entails advisory services, where a client can benefit from taxation planning, legal compliance with taxation laws and other taxation issues involved in business (Ready ratios 4). Finally, Pricewaterhousecoopers also engages in general advisory services like actuarial advisory, strategic analysis, business valuation, business recovery and corporate financing. In all these portfolios, the company may customize its product segments so as to suit local markets.
For instance, one may find technology, communication, entertainment and information services as one segment in a certain country and no such service in another. There is strength in diversification of its businesses as this ensures that underperforming divisions can be supported by more reliable income streams.
It is not uncommon for the organization to experience legal challenges; therefore, it helps to have a diversified portfolio. A case in point was a suit filed against PWC by Willie Nelson. The latter individual claimed that he was advised to use tax shelters by PWC but the company did not inform him when the Internal Revenue Service changed those regulations. As a consequence, Mr. Nelson owed the government millions in back taxes.
PWC lost a lot of money in settling the suit. If the organization only relied on taxation services for survival, it is likely that it would be struggling to stay afloat owing to the legal challenges that the portfolio attracts (Copley & Douthett 450). Furthermore, this ensures that the company can expand its consumer base and offer almost all related services under one roof.
Valuing employees
Aside from an intense diversification strategy, the organization also values its employees. It heavily invests in its human resources through leadership and training development. Employees always go through a rigorous training program upon entry into the institution. As they continue working for the firm, they still learn soft and technical skills needed to offer satisfactory services. The organization also assesses and reviews its training programs annually in order to ascertain that the skills taught reflect industry trends (PWC Indonesia 3).
At higher levels of management, PWC also possesses a leadership development program. This ascertains that the firm always has a diverse talent pool from which to draw future leaders. Members of its leadership group often meet with leaders from different parts of the world to exchange ideas and strengthen their abilities. With such a strong workforce, the company promptly delivers on its promises.
Owing to this immense investment in the companys human resources, most workers understand what the organistaion stands for and why its clients bring business to PWC. They always try to incorporate their mission and vision into the workings of the firm. This enterprise communicates such values through training as well as leadership interactions with other employees.
Another effect of investing in this group is consistent professionalism from employees. Since the company handles a lot of financials, it needs to have people that it can trust. Most PWC workers are renowned for their objectivity and integrity when handling various projects.
Global presence
The firm has a global presence and thus a wide client base. This organization boasts of approximately 771 offices around the world (You Sigma 2). While one may imagine that having such a vast international presence undermines the organizations efficiency, this is not true for PWC. The firm has a code of conduct that it applies in all its branches. Therefore, clients have come to associate the brand with certain quality expectations.
All workers must follow rules and regulations established by the company at the administrative level. In the United Kingdom, PWC possesses a parent firm that coordinates activities in other member firms. Furthermore, a global partner board exists in order to draw representation from the various members of the institution. It should be noted that the organization also believes in empowering member firms to run their own entities. Therefore, specific countries have the autonomy and power to curve their own paths.
This means that they can customize their business operations to suit local conditions (Jere et. al. 491). On the other hand, their employees can still benefit from international competencies through a global mobility program. Besides, information exchange within the institution is quite rigorous.
In order to ascertain that PWC is a global business with rich clients, one only has to look at its recent history. Russian clients such as Yukos have worked alongside PWC. Additionally, the organization has audited an international Indian firm called Global Trust Bank.
It has also worked on certain projects such as water privatization in Delhi. This track record would have been difficult to maintain if the company was not located in different parts of the world. The organization takes the time to study its clients and their ability to bring value to the company. Those that have a good payment history, high growth potentials as well as high profitability are more likely to be retained than those that do not (Sinclair 15).
The global presence also assists the organization in achieving its objectives by comparing itself to other branches that are doing relatively well. A PWC member firm in Indonesia will often try to keep up with technology developments in the US and UK. As a result, it will raise the standards of service provision within its respective country. Furthermore new strategies that expand the organizations reach in a certain region of the world will usually encourage some branches to do the same in a different part of the world (Gomez 34).
Conclusion
PWCs major strengths are its global presence, the high value it places on its employees as well as its diversification strategy. The company enjoys global capabilities and skills, the advantages of having a committed workforce as well as protection from underperforming revenue streams. Its success proves that the organizations strategy is a model for assurance and taxation firm.
Copley, Paul & Edward Douthett. Are assurance services provided by auditors on initial public offerings influenced by market conditions? Contemporary Accounting Research Summer 26.2(2009): 453-476. Print.
Gomez, Andrea. Accounting for success: a history of Price Waterhouse in America 18901990. Harvard: Harvard Business School Press, 1998. Print.
Jere Francis, R. Khurana, K. Inder, Martin Xiumin & Raynolde Pereira. The relative importance of firm incentives versus country factors in the demand for assurance services by private entities. Contemporary Accounting Research Summer 28.2(2011): 487-516. Print.
Jones, E. True and Fair: A History of Price Waterhouse. London: Hamish Hamilton, 1995. Print.
Mahreen, Hasan, Steven Maijoor and Ann Vanstraelen. The different types of assurance services and levels of assurance provided . International Journal of Auditing 9.2(2005): 91-102. Print.
PWC Indonesia. Our core values. 2012. Web.
PWC Global. PWC named Fortunes 110 best companies to work for. 2012. Web.