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Block 3 - Building long-term success (Management (Crisis management -…
Block 3 - Building long-term success
Operations
Risk
Impact - consequences if the hazard occurs
Likelihood - chance of hazard occurring
Hazards - causing unwanted consequences
Sources of risk
Product/service design failures
Customer failures
Failures in operation
Environmental disruption
Supply failure
Managing risk
Mitigating risk
Sony Ericsson case study strategies
Transfer - transferring risk to others (insurances)
Share - halving the with a partner
Reduce - reducing the likelihood and consequences
Take - accept risk and prepare for consequence
Avoid - get rid of risk
Resilience
Allen (2011) - operational resilience management (ORM)
Five objectives
Checks and balances to ensure essentials are working
Assets are treating differently according to importance
Protect important elements of business
In case emergency, essentials have the tools to carry on whereas less essentials may not
Protecting the organisations strategy
The ability of an organisation to respond to and withstand unwanted events (Moore, 2017).
Management
Crisis management - Crisis' are the main threat to sustainable long term success, they must be managed as a means of continuing a companies goals .
"A crisis is an event that can have a vastly negative impact on an organisation" (Crandall et al., 2014, p. 4)
Griffin had 10 recommendations on how best to manage a crisis affecting a business operations. Examples being; Preparing leaders appropriately, understanding the powers of every staff member and communicating early and often. (2008, p. 107-8)
Grint et al. (2017, p.4) - 5 ways of identifying what creates leadership: as person (WHO), as result (WHAT), as position (WHERE), as purpose (WHY), as process (HOW)
Marketing
Relationship marketing
About creating repeat purchases rather than advertising just one off sales. Can be referred to as 'collaborative ' rather than the one off 'discrete' exchanges (Baines et al. (2017)
Cost affective to retain customers.Retaining customers generates profit over their lifetime (Buttle, 1996, citied in Egan, 2011)
The aim of customer relationship management is 'to foster loyalty and repeat purchasing' (Dibb et al., 2016, p.223)
Organisations and brands not only form relationships with their customers, but also with other businesses. Certain hierarchy in the employment ladder will be tasked with dealing with other businesses in an attempt to aid both parties.
Internal marketing
Conducted within an organisation to encourage staffs identification with the brand and improve their customer-orientated behaviour in order communicate all that is good about the brand
Helps promote the brands identity
Provides a focus for staffs diverse organisational roles
Supports relationship building with customers
Staff can feedback information to the organisation in order to improve the brand
Internal marketing links well with the operations of a company. This is because the key to internal marketing is communication between all areas of the business. Welch and Jackson see four levels of internal communication to be key:
Internal team peer communication - discussion of team tasks
Internal project peer communication - achievement of project goals
Line management communication - daily activities
Internal corporate communication - building employee engagement
Performance
Improving performance - the performance of any company is vital to their stability and long term success.
Slack (1994) - Importance-performance matrix
Judge performance against competitors
Match performance against characteristics
Judge importance of measures to customers
Develop improvement plans
Key marketing measures for success
Customer dissatisfaction and satisifaction
Distribution/availability
Relative price
Number of products
Market share
Awareness
Profit/profitability
Gross margin
Sales