A critical evaluation of CRM (Customer Relationship Management)

A critical evaluation of CRM (Customer Relationship Management) The era in which marketers have increasingly acknowledged the importance of customers retention has seen as the evolution of related models and strategies. Increasingly, customer retention has needed greater emphasis in the company strategies due to the environmental changes and globalization occurring in the markets. The area of relationship market is very important and is main issue at the time of tough competition in the market. Various factors like internet and advanced technology has give rise to the attention and awareness among the customers to access a far greater choice of services and products offer to them. The analysis of the strategy of Customer Relationship Management has become an indispensible part of the organisations in the market management. This area is of great importance in the management strategies as customer are the key factors for the organisations in any field and there is great importance related to the customers as they are the determinants of the success of an organisations and has to be managed good relationships with them in order to gain competitive advantages in the market. The existing market needs the managers with all the knowledge to deal the customers. For this purpose there are many researches are going to be on in the relation to this subject, by realising the important of this area in tem market the companies become aware to the facts that how crucial is the managing relationships with their customers. The person reason behind adopting the area of research for the dissertation is that in todays market customer are take as God and each and every area of marketing and management is based on the dealing, satisfaction and retention of the customers. Without customers there is no market and no management. So it is mandatory for everyone to have the in-depth knowledge about the management and dealing of customers. Without having the proper study of customer relationship within the market is tea without sugar. For the personal reason I have the greater interest in the dealing with the customers and in order to get the proper knowledge regarding the management of relationship with them it would be very helpful to understand the nature of customers and hoe it could be managed healthy relationships with them to make them happy and satisfied. 2.1 Aim The aim of this dissertation is to critically evaluate the strategies of Customer Relationship Management. It also seeks to explore the difference between the concepts of Relationship Marketing and the concept of Customer Relationship Marketing. 3. Preliminary Review of the Literature Introduction A compelling business case and success stories continue to attract business interest and investment in customer relationship management (CRM). The CRM software market is expected to increase from $7 billion in 2000 to $23 billion in 2005, even though conventional wisdom is that 30 to 50 present of CRM initiatives fall short of meeting company objectives, while another 20 present actually damage customer relationships (AMR Research 2002). A seemingly myriad of challenges, conditions and circumstances contribute to the ultimate success or failure of a CRM initiative. Before investing scarce resources in such a risky technology innovation, corporate leadership is calling for a means of decreasing the sphere of uncertainty surrounding CRM. The adoption phase (Rogers, 1995) of a technology based innovation such as CRM is where decision-making and planning activities are conducted to address whether, why, and how to implement the innovation (Markus Tanis, 2000:189). Occurring at project i nception, the associated problems or shortcomings of this phase are multiplicative, and can exert a toxic effect on the ensuing innovation process. Although decisions made during this phase are critical to the eventual success or failure of a CRM initiative, there is a paucity of research exploring these adoption issues (Markus Tanis 2000). 2. Business value, complementarity and alignment When considering a CRM initiative, executives ultimately want to know the impact on organizational performance that is, the likely business value of the initiative. This is typically measured via the return on investment (ROI) metric. However, determining the economic value of an innovation, especially one enabled by technology, has posed major difficulties to researchers and practitioners for several decades. Recent literature on business value suggests complementarity as a key determinant of organizational performance (see Barua and Mukhopadhyay 2000 for a summary). Two activities or factors are complementary if the benefits of doing more of one increase by doing more of the other (Milgrom and Roberts, 1990). Organizational alignment is concerned with the level of agreement between complementary constituent parts (e.g. people, processes, activities). Alignment research typically falls into either of two basic dimensions: intellectual or social (Reich and Benbasat, 2000). The intellectual dimension, also known in the literature as strategic alignment, centers on the alignment of organizational strategy, structures and planning processes Here, strategy is the focal point such that positive alignment can be achieved when organizational structures and processes support strategy. In contrast, the social dimension concerns the alignment of organizational culture, stakeholder interactions and knowledge of one anothers work domain. In this context, culture is at the nucleus where positive alignment occurs when stakeholders are knowledgeable about each others domain areas such that cooperative interaction (as opposed to conflictive) occurs within the bounds of the organizations norms and values. O ther related research underscores the importance of alignment between the intellectual and social dimensions. For example, using general systems theory and chaos theory as the foundation, Semler, 1997) presents a theory of systematic organizational alignment where strategy, structure and culture are complementary. A harmonious agreement of these aspects breeds an internal environment supportive of the organizations strategy, by eliminating internal barriers to cooperation and performance. The theory outlines six aspects of alignment (process, reward system, values, norms, performance and environment) that, if in agreement, should result in positive organizational performance. As organizational performance is guided by strategy (Pearce and Robinson 1994), and given that a firms leaders develop strategy, it is the leaders and the roles and processes they prescribe that largely drive alignment. 3.1 Intellectual dimension 3.1.1 Strategy. A highly competitive global marketplace places pressure on firms to reduce costs, while simultaneously differentiating themselves through improvements in customer service to gain revenues. The underlying premise of CRM is: If a firm improves upon how it manages relationships with its customers, the result will be evidenced as an increase in firm productivity and customer satisfaction, leading to better financial performance. However, firms must avoid viewing CRM as the solution to competitive pressures. CRM is much more involved a CRM initiative should be conceived of as a corporate strategy. The customer-related capabilities of a firm are at the heart of assumptions regarding customer satisfaction, productivity, and the firms financial performance. According to marketing theory, to be successful an organization must aim all of its efforts at satisfying its customers, at a profit that is, managing customer needs profitably. This means that organizations must create, deliver, and communicate customer value more effectively than their competitors. Organizations that succeed at such are described using terms such as market driven, customer-centric, customer-focused, or customer oriented. Day (1999:5) suggests that such market-driven organizations are marked by a superior ability to understand, attract and keep valuable customers, and he identifies three specific components of market orientation: (1) an externally oriented organizational culture with a focus on added value; (2) distinctive capabilities in market sensing, relationship building, and strategic thinking; and (3) a configuration that enables the entire organization to anticipate and respond to changing customer and market conditions (pp. 6-7). Kohli and Jaworski (1990) provide further specification, defining market orientation as the organization-wide generation of market intelligence, dissemination of the intelligence across departments, and responsiveness to it. Concerning IT innovations, Kwon and Zmud (1983) find that top management support is a key, recurring success factor. Management support can be defined as the widespread sponsorship of an innovation. Successful implementation of an innovation has been found to occur when top management exhibi ts commitment to change (in our context, the CRM initiative) as well as commitment to the (CRM) implementation effort. Support is evidenced through commitment of resources such as time and money for education and training of employees, assignment of key employees throughout the innovation process, and money to purchase the technology and support the multiyear implementation effort. Kwon and Zmud state that successful IT implementation is more likely to occur when sufficient organizational resources are initially directed toward motivating the implementation effort and then to sustaining it. The literature also consistently points to the importance of a champion of the innovation effort. To qualify as a champion, an employee must be a upper level, highly respected individual who actively supports and promotes the innovation, providing information, material resources, and political support. As an aid to success, it is important that the same champion sees the innovation effort through to completion. In a recent field study, firms undertaking CRM projects with a dedicated high-level champion were twice as likely to report that their project was doing at least better than expected (Yu 001). Leadership styles are a key factor when embracing a new initiative such as CRM. Nguyen-Huy (2001) identified four change management leadership styles, including: commanding; engineering; teaching; socializing; or hybrid. No one type is inherently superior to another. Much depends on the styles that have brought success in the organizations past. Also, successful change leaders have utilized one style during an initial stage, and changed to a different style in a later stage. For example, a commanding style may be important at the outset of a project, to communicate that top management is serious and committed to the change, whereas a more collaborative style may be successfully used during implementation. In the context of CRM, little research has been done to examine the change management leadership styles utilized, or to analyse under what conditions a particular change management leadership style is likely to be effective. 3.1.2 Structure. The innovation literature suggests that a firm with a flat, decentralized structure, as opposed to a centralized hierarchical structure, is most likely to support the development of innovative ideas. However, with regard to implementing the innovation, a centralized structure has been shown to be most effective. In terms of an IT innovation, structural factors pertain to the compatibility of the system with the organizational design (e.g., centralization, decentralization, organic), the authority hierarchy, reporting relationships and the like. ERP and CRM efforts revolve around business processes. Effective CRM must integrate and support the business processes that create customer experiences. These business processes span the organization, including the customer-facing business processes of marketing, sales, and customer service. However, back-office business processes such as accounting, purchasing, production, and logistics are also involved. The significance of this logical integration of customer related knowledge cannot be under-estimated. It poses a major challenge to organizational readiness. 4. Research Questions RQ1. What are the critical issues that have to be discussed in the customer relationship management initiatives? RQ2. What problems have to be faced during the adoption of CRM initiatives? RQ3. What is the scope of CRM for different type of organisations? RQ4. Is Customer Relation Management is taken as the appropriate for all kind of organisations? 4.1 Research Objectives As the emerging discipline the CRM needs great deal of assistance in the theoretical area. The area of customer relationship management is very important for the To identify the main issues of Customer Relationship Management To critically analyse the literature of the CRM To examine the facets of the customer welfare and to retain them for long term To explore how CRM succeed and fail. To examine the CRM strategy for the Tesco Plc To draw conclusion and suggest some recommendations for the company Word Guide 200 5. Research Plan / Methodology Research methodology is mainly split into three parts i.e. research perspective, research design and collection of data. These three phases of methodology collectively formed the clear description about the importance and need of the research methods. Research Perspective From the view point of Saunders et al (2003) for the research to be conducted there must be an appropriate choice of research perspective. This dissertation is a case study approach which is most suitable for the topic of CRM in the industry. This help to examine the research topic in depth and provide the required information for the plotting of dissertation. For this there is good chance to know about the efficiency of the company regarding the implementation of the CRM strategy. The case study approach covers the areas like clarification of topic, data processing, collection of data and the conclusion for the research is presented. Following is given the research strategy chosen for the dissertation to be conducted. Research design for the research design there is a process given by Saunders (2003) known as the Research Onion. The following figure explains the whole design of the research. For this there are mainly two type of approaches named inductive approach and deductive approach. Inductive approach This approach follow the process in there is movement from the specific to general for the formulation of the theory of the research. This approach is widely open and exploratory for the research to be conducted at the first stage. On the other hand deductive approach is usually follow the process of general to specific and this is totally opposite to the inductive approach. In this approach theory is taken at the first step and then goes to the observations. This approach is taken as the narrow one as there is restriction and binding to the theory chosen. To conduct the research regarding the dissertation the author decided to go with the inductive approach because the inductive approach is flexible than that of the deductive one and there are more chances of exploration of the topic in the inductive approach. Data collection methods Data collection methods is taken as the very crucial part of the research to be conducted as the whole process and phenomenon of the research of dissertation is depend on the methods of data collection used for the purpose to collect relevant data so that there could be access to problem of the research. There are mainly two types of methods are available for the collection of data these methods are Secondary Data Collection Methods and Primary Data Collection Methods. Secondary data collection methods Secondary data is that data which is available and already exists. This data is always ready to use. This data usually collected for other purpose of research and is used by the some other sources as this is always free to access and easily available. The secondary data is usually available in forms of qualitative and quantitative both types of data. In qualitative data there is no numeric and diagrams and facts and figure. This data is totally based upon the theory part. This is mostly used for the formulation of literature review for the research. On the contrary there is another form of data i.e. Quantitative: this type of data is in the form of numeric and facts and figure. The annual reports of the companies and analysis in the form of numeric presentation is comes under this. Primary data collection methods Primary data collection methods are those methods in which the researcher itself collects the data in order to get the relevant data for the research to conduct. This type of data is mostly in the form of qualitative data. The various methods used to collect the primary data are interviews, surveys, questionnaires etc. For this dissertation there is use of both type of data i.e. secondary data collection and primary data collection. Both data collection methods are equally important and researcher cant go with alone one for the research. As there is need of in depth and critical analysis of the research problem and so for this there must be both type of data will be used in the dissertation. In following table there is brief outline for the various methods used in the collection of data with their advantages and challenges. Limitations of study The thing is that at this stage the topic of the research is not yet consider in detail. Still there are some limitations that are outlined here. At first the area in which the research is going to conduct is wide and it became hard to collect the relevant data for the research by the use of data collection methods. Secondly there is a huge collection of data regarding this topic and they are available in different software of database. At last it is not easy to get relevant and proper data from the side of interviewee regarding the research area, and sometime these interviews are biased. 6. Ethical Considerations As this topic of research is related to the customer relationship management the main ethical issue for this is to how to implement the suitable strategy for a company to run this process. For seeking the development of the research topic for the dissertation I will conduct the instructions provided to us by the college and will also follow the rules of the University accordingly that are provide to me in the available form. Also regarding the data collection for the research the main source of data collection for the dissertation is the available data i.e. secondary data for the company or organisation. There is no provision of data protection this protection will considered at the time of publishing of the data later on. As other reliable source for the collection of data for my research is interviews and questionnaires. For this, if there is needed the interview will be recorded after getting the permission the interviewee. For all the process there will be supervision of the supervisor which will provide during the dissertation to be conducted. There will be appropriate use of participation information during the plotting of the literature review and other parts of the research. 7 Planning and any special resources required Week1 Week2 Week3 Week4 Week5 Week6 Week7 Week8 Week9 Week10 Week 11 Introduction to aim objectives Literature review Research methods Data collection Data analysis Findings Conclusion Recommendations Setting and submission

Porche Changes Tack

Porsche Changes Tack 1) What has been causing the changes in Porsche’s ROIC? Porsche’s ROIC was quite impressive compared to other competitors of 15. 15% in 2004, while others struggled to reach 6% to 7%. They had great strategic planning to keep ROIC high by outsourcing and using a combination of licensing. For example, for Porsche Cayenne, they co-manufactured with Volkswagen saving a lot on required capital to support its business. In addition, Porsche had licensed with Valmet of Finland to build the Boxter under Valmet’s owned capital, reducing Porsche’s capital needs. However, ROIC was not too good in fiscal 2003/04.What has been hurting Porsche’s ROIC in the recent years was their mistake of holding on to excess cash. If they have funded it invested capital might not have grown. 2) Evaluate the firm’s financial performance and compare to its peers. Porsche saw pleasant operating margins compared to its peers with its 911, Boxter, and Ca yenne models. They saved expenses in technology and capital by outsourcing with other companies for the Boxter and the Cayenne. Another factor that Porsche did well was focusing on rewarding management on financial performance (its long term performance and profitability) rather than on the opinions of the market.One thing that did hurt or complicate Porsche was that it was holding high non-interest bearing liabilities. Another factor that showed Porsche different was their aggressive company culture of providing cars from its origin rather than expanding capital abroad. Its value of sales and production could be better off if it put manufacturing and assembly plants in the U. S. and it could avoid risks of big changes in currency rates. 3) Consider Porsche management’s announcement of its intention to take a 20% equity interest in Volkswagen in September 2005.In your view, is management acting in the best interests of all shareholders? You may work alone or in a study group for this analysis. Like it said in the case, this decision seems to be more personal than one that would be the best interest of all shareholders. The case highly emphasized the valuable relationship between the Porsche and Piech families and that through preservation of stakes by them would be through the expense of nonfamily shareholders. I, too, concur with the analysts and critics who are against this decision because the two companies have two different histories and techniques of creating profit.Also, Volkswagen is a very big manufacturer compared to Porsche and on top of that isn’t doing so well. This may cause conflicts with Porsche as it might begin to prioritize goals for Volkswagen and not pay more attention to issues/threats it may have. Porsche could actually be better off (in future returns) if its 3 billion Euros were returned back to its shareholders. Although this argument may go on and on, ultimately the best decision is to compare in which situation the com pany will deliver profitable growth since to both family owners and shareholders, growth is commonly important. ttp://usc. summon. serialssolutions. com/search? s. cmd=addFacetValueFilters%28IsFullText,true%29&s. fvf=ContentType,Book+%2F+eBook,&s. q=green+business+trends&s. rf=PublicationDate,2010:* http://www. ibisworld. com/industry/green-sustainable-building-construction. html http://go. galegroup. com. libproxy. usc. edu/ps/retrieve. do? sgHitCountType=None&isETOC=true&inPS=true&prodId=GVRL&userGroupName=usocal_main&resultListType=RELATED_DOCUMENT&searchType=BasicSearchForm&contentSegment=&docId=GALE|CX1930200055

Believing God

My parents thought me Christian values and Christian ethics and they sent me to a Catholic school during my childhood that's why I grew up believing that there is really a God. There are always obstacles in life that makes one another question if there is a God out there. I had personal experiences that there is God's presence. One question, why do we pray? To whom do we pray? I think this is the best way to see the presence of God. We pray because we believe in God. The Muslims, Buddhist, Christians, etc. may have different Gods but they believe that there is a God. God's presence for me is when I pray.Every night, before I go to bed, I always pray for the safety and health of my family and friends. When I wake up and knew everybody is okay, I also pray to thank Him for answering my prayer. Every morning, I already feel His presence inside me. Also, when I'm feeling sad and depressed, I always ask His guidance and help to resolve my problems. Blessed, He answered my prayers and most of my problems were resolved. I think we all have different types of relationship with God. Another example about the presence of God is about what my grandmother(who lived with us for 16yrs) told me when she was sick and diagnosed with stage 4 ancer.She told me that every night, every time she sleeps, she always dream of his husband, dead relatives, or sometimes an unknown man calling her. One time, she told me that she dreamed that she was in the sky and an unknown man is calling her to go with her. She told that He was God. Maybe she didn't go with Him many times because she knew that we are not yet ready to let her go with her Creator. For how many days have passed and we told her that we are ready to accept whatever happens, she Joined with her Creator. With her story, I really felt the presence of God and my faith in Him grew stronger. Another influence is from my parents.We celebrate a lot of Christian events. For example, the Holy Week. Our family do Visita Inglesia during Holy Weeks and we do the Stations of the Cross to know more about the story of God's son, Jesus. I think this influence also helped me to really believe in There are also times that I feel the absence of God. Every time I fail to achieve something, I always blame God. For example, recently I took the BSA Qualifying Exam. not pass the exam. I was so depressed during those times and thought to myself where is God during those times. After how many days, I still pray to him to help me ith my decisions in life and He answered my prayers.My parents and friends comforted me, help me decide and told me that it is not the only course in college that will make me a successful person. They said that I should work hard and pray hard to resolve my problems. These are the only things(failure) that I feel the absence of God but with these failures, good things happen right away. We can always see the presence of God everywhere. For example, we can see a lot of Holy objects everywhere – ros ary, pictures, etc. We can also see a lot of people going to Church to pray and ask petitions to Him. Also, why do people avoid to commit sin?Maybe because they believe in Heaven and Hell. They also know that they lose the presence of God when they commit a sin. As long as we try very, very hard not to commit sin, deliberate mortal sin, God is on our side and we are in His Presence. God continues to love us, no matter what, but He hates the sin. God is everything. For what I understand, God created all the things here on Earth. As a conclusion, to feel His presence, we should always pray for Him, have faith, avoid sins, follow the ten commandments, and we should love all the things He had created.

Human Services Essay - 1733 Words

In the past century, the scope of practice and competency of Human Services has developed and devised astronomically alongside its counterparts who include Social Work, chemical dependency research, and most importantly; Psychology. There have been numerous of advocates, social workers, researchers, and psychologists that have contributed to the progress and functionality in this delicate but crucial field of work. Although all of these people influenced and shaped what the vast field of human services looks like today, there is one psychologist in particular that played an important role in the creation of his aiding work has evolved into today. Sigmund Freud, a physiologist, health physician, psychologist and husband of†¦show more content†¦He drew a number of incredibly vivid supporters whom became the heart of the psychoanalytic movement. While he was flourishing with what he had accomplished, he was incapable of agreeing criticism and was known for objecting civilian s that did not concede with him and subsequently went onto towards encounter competing institutes of thought. (Storr, 2001) Freud did not design the suggestion of the conscious versus the unconscious mind; however he was responsible for making it well-liked. The conscious mind within what you are conscious of at any particular moment, your show perceptions, memories, ideas, fantasies and feelings. The biggest portion, however, being the un-conscious. The unconscious incorporates things that are not easily available towards perception, incorporating out motors or instincts and things that we cannot carry towards glance at, such as memories and feelings associated with trauma. According towards Freud’s theories, the unconscious is the cause of our motivations. (Stafford-Clark, 1997) The id, the ego and the superego are another prominent theory that acts off of the conscious and un-conscious mind. Freudian psychology initiates with a earth full of objects. Among them is a exceptional object, the organism. An extremely meaningful portion of the organism is the nervous system. At birth, the nervous system is a little many than of else animals, an â€Å"it†Show MoreRelatedHuman Services As A Human Service Professional Essay2242 Words   |  9 PagesTo begin with, in order to be successful as a Human Services Professional one have to know exactly the required duties and main goal of being in this field. This occupation is not an easy one you will face many obstacles working with several of different personality’s clients. 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