Posts by John Dudovskiy
Critical success factors (CSF) can be explained as “an element of the organisational activity which is central to its future success” (Botten, 2009, p.20). The following table presents explanation of Starbucks Critical Success Factors in the UK market: CSF Explanation Quality of products Increasing level of competition in the market is fuelling the level of customer expectations regarding the quality in general, and freshness in particular Customer services Excellent customer services are being adopted as an important source of competitive edge by increasing numbers of coffee shops Shop design Coffee shops in the UK are being positioned as a ‘third place’, where people can spend most of their time apart from workplace and home (Dolan, 2012).Accordingly, relevant atmosphere needs to be developed with the interior, music and design. Social responsibility The impact of corporate social responsibility on profitability has increased significantly in the past several years. Accordingly, the level of engagement in fair trade, recycling policies, carbon emission policies, and employee treatment can be specified as important success factors for branded coffee shops like Starbucks Customer loyalty reward programs In catering industry consumer behaviour is greatly impacted by the level of attractiveness of loyalty programs that offer discounts and other advantages to loyal customers Starbucks Corporation Report uploaded on April 2017 contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Starbucks. Moreover, the report contains analyses of Starbucks’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility. References Botten, N., 2009. Enterprise Strategy, Elsevier
Recommendations are offered by a range of authors in terms of effective engagement in viral marketing. It has been stressed that “one of the major factors regarding viral adoption is that the consumers must be engaged in the message” (Beneke, 2010, p.195) According to Zarella (2010), utilisation of free products or services within viral marketing programs can enhance the efficiency of a marketing campaign through sparking additional interests from users. Specifically, Zarella (2010) recommends distributing for free inexpensive items such as mugs or t-shirts as an integral part of a viral marketing campaign. The quality of viral marketing content is specified as one of the decisive factors by Mueller (2010). This viewpoint is also shared by Beneke (2010), who argues that the content of a viral marketing campaign has to have an emotional appeal so that the campaign can be highly successful. Additional viewpoint proposed by Scott (2011) relates to exclusivity of viral marketing campaigns. Scott (2011) explains exclusivity in viral marketing as an invitation to join certain clubs, enjoying access to specific products or services prior to their official release dates etc. Addressing the same issue, Kirby (2012) warns that if such offers are introduced in great numbers the level of exclusivity may be compromised, at the same time compromising the effectiveness of the overall campaign. Letelier et al. (2002) propose a range of alternative viral strategies to be implemented by businesses depending on company’s chosen business strategy. Specifically, alternative strategies proposed by Letelier et al. (2002) include fostering allegiance, building excitement, increasing emulation, and creating dissemination. The following table illustrates details associated with each of these strategies: Brand as Authority Promoter as Authority We-Focus Foster Allegiance Strategy Organise: Grassroots,shared meetingsCommunication approach: Solicit authentic voices, publish members’ experience with community Reward for members: Public recognition with…
The main objective of strategic human resources management (SHRM) can be specified as “to ensure that human resource management is fully integrated into strategic planning, that HRM policies cohere both across policy areas and across hierarchies and that HRM policies are accepted and used by line managers as part of their every day work” (Regis, 2009, p.6). Generally, the main approaches to SHRM are divided into three main categories: universalistic, contingency, and configurational. Universalistic or ‘best practice’ approach to HRM relates to the viewpoint that there is a set of best HRM practices and their adoption is going to generate positive results regardless of the circumstances associated with organisations. Universalistic approach states that ‘best practices’ in relation to a wide range of HR issues such as employee recruitment and selection, training and development, employee motivation is equally applicable to each organisation regardless of the nature of unique aspects organisations might have. Contingency or ‘best fit’ approach on the other hand, disagrees with the presence of universal prescriptions to HR issues and stresses the need for integration between HR policies and a wide range of other organisational policies. Configurational approach to SHRM “stresses the need for practices that are contingent with organisational circumstances, but in addition emphasizes the need for horizontal or internal fit” (Sparrow et al., 2004, p.158). To put is simply, configurational approach recognises the validity of ‘best practices’, but at the same time, accepts the importance of adjustment of HR policies with the overall organisational strategy. Alternatively, approaches to SHRM can be divided into four categories: strategy-focused, decision-focused, content-focused, and implementation-focused. References Regis, R. (2009) “Strategic Human Resource Management & Development” Excel Books Sparrow, P.R, Brewster, C. & Harris, H. (2004) “Globalising Human Resource Management” Routledge
By John Dudovskiy
Category: HRM
Starbucks Coffee Company is a global coffee company and a coffeehouse chain headquartered in Washington, the US, and the company operates 18,000 retail stores in 60 countries (Starbucks Company Profile, 2012, online). Starting operations in Seattle in 1971, adherence to its mission statement of ‘to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time’ coupled with an aggressive utilisation of international market expansion strategy have contributed to net revenues of more than USD11.7 billion generated during the financial year of 2011 (Fiscal Annual Report, 2011). Since entering the UK market in 1998, Starbucks currently operates 607 stores in the UK, and there are 128 Starbucks licensed stores in the country (Fiscal Annual Report, 2011). However, the company is faced with significant challenges in the UK market that relate to tax issues, and these challenges are threatening with negative implications on Starbucks growth prospects in the UK. Starbucks operates in a highly competitive industry with the top competitors including Costa, McDonalds, Dunkin Brands Group and others. Moreover, the company faces stiff competition from local cafes as well. Starbucks has licensing agreements with a wide range of companies and “the company’s significant licensing agreements include the North American Coffee Partnership, a joint-venture with the Pepsi-Cola Company in which Starbucks is a 50% equity investor, manufactures and markets ready-to drink beverages, including bottles Frappuccino beverages and Starbucks DoubleShot espresso drinks in the US and Canada” (Company Description, online, 2011). Starbucks Corporation Financial Analysis A brief Starbucks Corporation financial analysis for the year of 2010 will ensure greater depth to the current report. Starbucks faced serious financial difficulties at the end of 2007 and beginning of 2008 partially associated with the global financial crisis. However, the company performance started to improve the following years once Howard…
By John Dudovskiy
Category: Finance
Major points of viral marketing criticism include lack of control over the impact of a viral marketing campaign, vulnerabilities to manipulation and spamming, and limited level of accesability. Lack of Control over the Impact One of the serious disadvantages associated with viral marketing relates to lack of control over the impact of viral marketing campaign. Unlike the majority of alternative marketing campaigns; in some cases it is not possible for businesses to stop a viral marketing campaign. The necessity to stop the marketing campaign may arise when the campaign is proving to be counter-productive, or the level of demand exceeds the company’s production capabilities. Vulnerability to Manipulation and Spamming Disadvantages of viral marketing might include vulnerability to manipulation and spamming. This is especially true in occasions where incentives are provided for the spread of viral message, and in individuals might become motivated to send the message to other individuals that do not wish to receive the message. In this way, there can be a risk for a viral marketing campaign to be a counter-productive. Limited Level of Accessibility Lilien and Grewall (2012) consider limited level of accessibility as a serious disadvantage of viral marketing. Specifically, Lilien and Grewall (2012) point to a wide range of media formats such as Flash Player, Firewall software etc. and argue that internet users need to be equipped with the relevant software in order to be impacted by a viral message. References Lilien, G.L. & Grewal, R. (2012) “Handbook of Business-to-Business Marketing” Edward Elgar Publishing
The definition of social media can be formulated as “websites and applications that enable users to create and share content or to participate in social networking” (Oxford Dictionaries, online, 2012). Social Networking Sites (SNS), on the other hand, can be defined as “sites built around the needs of like-minded individuals, and are built by those individuals” (Wertime and Fenwick, 2012, p.12). Social media is perceived to be the primary platform for distribution of viral marketing messages. Increase in the numbers and types of social media can be interpreted as an indication of increasing significance of viral marketing in scope and depth. The following set of important features of social media can be specified: Firstly, users of social media add value to it by their participation. The numbers of users is considered to be one of the main indicators of popularity, and consequently the success of social media. Accordingly, engaging in viral marketing through the types of social media that has large numbers of participants can be considered as an effective approach to viral marketing. Secondly, social media reflects collective intelligence. According to its type and purpose, the database is regularly enriched by its members by the addition of texts, articles, video, pictures etc. Specific marketing messages are usually integrated with these elements with the intention for these messages to go viral. Thirdly, social media is associated with a high level of accessibility and usability. Increasing levels of accessibility and usability though mobile phones, tablets, and other devices have positive implications on the potentials of viral marketing on the platform of social media. Fourthly, social media is an effective platform for sharing information within a small niche. Each segment within various types of social media is usually built and maintained around the interest of specific group of individuals. This creates…
According to Reece et al. (2010), in order to be considered a viral marketing, marketing campaigns need to be associated with a value for sender and receiver, they need to be free and reproducible and marketing campaigns need to be spread exclusively via the internet. Zarella (2010) specifies the goals of viral marketing strategy as customer attraction, increasing the level of customer loyalty, and achieving a higher level of brand awareness. According to Waldow and Falls (2012) viral marketing is different from advertising in a way that it promotes products and services in an indirect manner. Carriers of viral marketing message have been specified by Middleton (2012) as satisfied customers, individuals that are aspiring to be customers, journalists, and experts in the field. These carriers can transmit the viral marketing message in active and passive ways. Active transmission of a viral marketing message involves carriers to be spreading the message in active ways, such as making direct recommendations via internet. Passive transmission of a viral marketing message, on the other hand, occurs in situations where a particular brand or product is promoted by carriers indirectly, such as through letting others know about the act of purchasing from a specific brand. Anjum (2011) divides the costs of engagement in viral marketing into three categories: free, indirect, and direct. Viral marketing can be automatically facilitated free of charge when the product is innovative or it offers competitive benefits that are appreciated by consumers. In such occasions innovative features of the product or its competitive benefits become a viral marketing message to be spread by internet users with no costs for the manufacturer. Wirtz (2012) mentions the promotion of Apple’s Iphone in online channels as a case study for free viral marketing. Indirect costs for viral marketing occur when marketing staff of a…
Sweeney (2006) divides viral marketing into three categories: a) word of mouth; b) ‘pass it on’ concept; and c) product or service based viral marketing. An alternative classification of viral marketing according to the degree of requiring the customer’s activity in forwarding the viral marketing message is offered by Clarke and Flaherty (2010). Specifically, the authors divide viral marketing strategies into two categories: low and high integration strategies. An example for a viral marketing strategy with low integration include ‘send this to friend’ icons that might be used for a wide range of products and services such as greeting card services, newsgroup readers, calendars etc. High integration viral marketing strategies, on the other hand, requires the participation of customers in an active manner. Such participation may include downloading new programs, and discussing the advantages of products and services in an active manner. Mueller (2010) specifies four main forms of viral marketing as e-mails, facilitated viral, incentive-based viral marketing, and web-linked viral marketing. E-mails are perceived to be a basic platform for viral marketing, where e-mail contents or message in attachments may encourage the receiver to pass the message. Facilitated viral, on the other hand, is explained by Mueller (2010) as a technique that involves companies to place ‘e-mail your friend’ link I their web-site, so that e-mail addresses of additional perspective customers can be obtained. Incentive-based viral marketing, as the name suggests, is associated with the provision of certain incentives, either tangible or intangible, for individuals to share viral marketing messages. Lastly, web-linked viral marketing involves sharing viral marketing links in online publications, internet chartrooms, and social networking websites. Mueller (2010) notes the increasing popularity of this last form of viral marketing compared to others. More comprehensive study on various forms of viral marketing messages is conducted by Beneke (2010).…
The theory of Achievement Motivation proposed by David McClelland (1965) envisages that individuals have three different types of needs – need for achievement, need for power, and need for affiliation, but there is a difference between people in terms of the extent of influence of each need on their behaviour. It is important to note that “although workers may possess all these needs to some degree, each individual is most strongly motivated by one” (Lewis et al., 2011, p.150). Therefore, organisational managers are responsible to identify the nature of the need for each individual member of staff, and motivate them accordingly. References McClelland, D. (1965) “Toward a Theory of Motive Acquisition” American Psychologist
The evolution of viral marketing as a separate discipline in the field of marketing has been discussed by Thorne (2008). It has been stated that while a word of mouth marketing has been practiced for as long as several thousands years (Thorne, 2008), viral marketing is a new concept enabled by internet. Specifically, Thorne (2008) relates the evolution of viral marketing to a marketing move initially initiated by in internet company, Hotmail. According to Thorne (2008), viral marketing has been introduced in a way that an offer of opening a free Hotmail account had been placed within the footer area of e-mails sent from Hotmail accounts. In addition to the initial Hotmail viral marketing campaign, Linkoln (2009) states, the movie ‘The Blair Witch Project’ can also be credited for the development of viral marketing as an effective marketing strategy. The following the defining stages can be marked in development of viral marketing: Hotmail attracting 12 million users in 18 months in mid 1990’s with digital media coming into prominence. Although, after the introduction of social networking websites such as Facebook and Google+ these websites have been able to attract more numbers of users in less period of time, the fact that Hotmail enlisted 12 million users in 18 months in the mid 1990’s were considered to be a phenomenon at that stage of the development of internet. The recognition of marketing potential through dot.com mainly starting from 2000’s. The dot.com boom that has started at the beginning of the 21st century can be specified as a new era in the development of viral marketing, as rapidly increasing level of interest on internet at that period of time has had a positive correlation with the level of interest on viral marketing. Online advertising entering a new stage from the…