Friday, December 13, 2019

Nestl”s Nespresso Free Essays

string(29) " in Singapore and to Taiwan\." INTRODUCTION During the 70s, Nestle anticipates the growth of the market of the up-market coffee and is inspired by the original concept of the inventor of the espresso Luiggi Bezzera. The principle is simple: offer directly at home or to the office the quality of espressos served in the best Italian cafes. Based in 1986, Nespresso looked like pioneer on the market of the portioned out coffee and introduced a new tendency which will be adopted all over the world. We will write a custom essay sample on Nestl†s Nespresso or any similar topic only for you Order Now And since the subsidiary of the international group Nestle did not stop surprising: more than 3 million customers worldwide, a growth superior to 30 % during 6 consecutive years and crossed for the first time the billion Swiss franc cap of turnover in 2006. The concept Nespresso leans on a trilogy: the best big vineyards of cafes, machines in espresso ingenious in the elegant design and finally, a service outstanding personalized customer. Nestle Nespresso S. A, whose seat is to Paudex, in Switzerland, counts more than 2500 employees, markets directly its products with its consumers in more than 50 countries and manages more prestigious 160 shops situated in most big cities of the world Cafes contained in capsules Nespresso result from various regions of the world such as Brazil, Colombia, Costa Rica, Guatemala, Togo, Kenya and Ethiopia. Its range includes ‘espressos’, a range which samples in small cups (40 ml), and ‘lungos’, for the big cups (110 ml), without forgetting the editions limited by variety show of coffee produced in limited quantity and for a while given. Nestle Nespresso limited company maintained, from its debuts, the narrow business connections with manufacturers of famous household electrical devices and carefully selected. Every partner hatches is responsible for the distribution, for the marketing, for the referencing in boutiques and the after-sales service of the machines of its own brand. At the moment, Nespresso accounts 10 partners for domestic custom’s machines with, offering various models of machines Nespresso. Machines and capsule Nespresso Professional are also available on the Internet site, www. nespressopro. om, as well as through a network of importers and independent distributors, subsidiaries of Nestle Nespresso limited company and local structures of the Group Nestle. Today, the activities â€Å"except place of residence† of Nespresso represent 25 % of the turnover of the sales of portioned out coffee. And to seduce the consumers, Nespresso uses big means: place of boutiques, design of machines, gl ossy paper magazine, secondary purified†¦ Nothing is left at random, everything is thought to evoke the refinement of the brand. The success of this company represents an interesting book case; a case of rare innovation. That’s why we chose Nespresso. In the present work, we shall approach first of all the history of Nespresso since its launch until our days. In a second time we shall speak about the marketing analysis of the company as well as about main competitors. After the study of the strategy, we shall enclose this report by recommendations. 1. 0 BACKGROUND TO COMPANY: Strategy’s history In the 70s, the Research and development services of Nestle turn to an integrated system: a machine receiving doses ‘encapsulated ‘of coffee, every dose corresponding to a cup of coffee of 50 cc. They invent the capsule of coffee freshly ground and its concept of extraction of the coffee under pressure. Nestle, world leader of the coffee â€Å"mass market† gets ready to attack the segment of up-market † premium coffee † thanks to this technical innovation say. A first patent of the process is registered in 1976 by the centre of development of the Group Nestle. It is only in 1986 that the marketing begins. First of all, by the creation of the company Nespresso S. A, the wholly-owned subsidiary of the group Nestle to Vevey. Then Nespresso dashes by targeting the Business to Business market, particularly that of offices and restaurants. The company opted for Switzerland, Italy and Japan as country of starting up of its activity of marketing. Turmix, a Swiss company, took charge of the production of machines. Nespresso bought the capsules of coffee from Nestle, the machines to Turmix and dedicated itself to its marketing in association with a Swiss distributor ‘ Sobal ‘. But the success is not there: sales do not exceed 875 machines first year and it will not be better next year. We are in 1988, Nespresso begins to wonder about the efficiency of its strategy and in order to boost the company, appoints a new general manager: Jean-Paul Gaillard who decides to change all the strategy. He asks on one year of respite and a marketing budget of 1. 6 millions. His purpose: make of the ‘capsules percolator’ a luxury. Nespresso thus decides to transfer to the private individuals, and chooses to replace the word â€Å"capsule† to speak about â€Å"vineyards â€Å"like wine and about â€Å"limited series â€Å". As for the distribution, it will be exclusive and direct for the capsules of coffee by introducing the concept of â€Å"Club Nespresso† which will allow its members to buy that by mail, telephone and fax (internet recently). Year 1989, the new strategy is launched in Switzerland. JP. Gaillard made a test, in 1990, on the market of the United States by changing variety of coffee to adapt itself better to the customs of the American consumers. At the end of the year the club counted already 7700 members. In 1991, The Nespresso system is introduced in France, in Belgium in Germany and In the Netherlands. And in 1994, Nespresso penetrated into the market of airline companies (First and business class) with its new machine ‘Nespresso Aviation System’. Present in 15 countries in 1995, Nespresso granted licenses of production to the other manufacturers in a precise purpose: the improvement of the performances, the convenience of use as well as the design. Nespresso S. A blew its 10 candles of success, in 1996, with 3 500 selling points and 180 000 members. Targeted the sector of restaurants and hotels in Belgium and in France and went in Great Britain, in Malaysia, in Singapore and to Taiwan. You read "Nestl†s Nespresso" in category "Papers" In 1998, it expands its field of action thanks to a new Web site completely dedicated to the members of the club so offering the possibility of ordering on-line 24 hours a day, and 7 days a week. This distribution channel also provides a personalized service, advices on blends of coffee and the maintenance of machines. In 2002, the production capacity of capsules is multiplied by 4 to answer the future growth and the orders placed on Internet know an increase of 94 % during year. The deals on Internet represent then 30 % of the turnover of the company. After 5 years of research and development, Nespresso launches in 2003 the first machine Nespresso Concept Automatique which allows the preparation of capuccino. Other important point: the company goes into the sustainable development by trying to combine quality of selected vineyards of coffee and condition of production according to the rules of the sustainable development with its program AAA Sustainable Quality. It was a good initiative, especially after the different criticisms that the company received. Notably as regards to the capsule Nespresso which is in aluminum, hence pollution and a spending of energy, not compatible with the brand image and the ‘Natural image’. Given that the success of Nespresso and the unitary daily consumption, this problem of the lack of recycling presents a big blackhead at the same moment on the ecological plan and of the image. In 2005, the sales of the coffee machine Nespresso Essenza contribute to make of Nespresso the European leader of machines in ‘espresso’. Then in 2006, Nespresso does not hesitate to engage the actor George Clooney further to the choice made by the members of the club among a list of celebrities which they had subjected them. The use of this actor as media vector aims above all at consolidating the positioning of Nespresso as a sophisticated brand and up-market. Nespresso’s figures: World Turnover 2007: 1  034  600  000 milliards Number of stores: 160 Number of clients: 3, 6 millions Number of machines sold in the world: 1, 4 millions Number of capsules sold in the world: 2, 3 billions Market share 2007 of the espresso market: 26, 7 % 2. 0 MARKETING ANALYSIS 2. 1 MARKET TRENDS Coffee’s consumption Source: National Coffee Drinking trends study Coffee is the most popular beverage worldwide. In 2008, 17% of the adult population consumed this gourmet drink everyday, compared with 14% in 2007. What is more, positive health messages drove the consumption Espresso’s market (2008) Type| Market shares| Individual coffee pods/portioned coffee| 57%| Traditional| 19%| Filter combined| 12%| Automatic| 10%| Espresso without pump| 2%| As we can see, this market is essentially characterised by individual coffee pods’ sales. Types of most popular home espresso machines Espresso pump machine (Nespresso’s): automatic pump to create the perfect amount of water pressure (usually the most expensive) Lever or piston machine: manual or human powered pump to create the pressure it needs to make espresso. The quality of the coffee can vary, as it depends on human power. Steam powered machine: works by heating water and using steam power to create the pressure needed (usually the cheapest and often the worst quality) Moka pot espresso machine: works by boiling water in the bottom of the pot, creating steam and then forcing that steam through the coffee and into the top portion of the pot. Overall, trends are favourable concerning the espresso’s consumption. Thanks to positive messages about coffee and health, people are slowly changing their mind. The sector is developing well, creating opportunities. More and more people buy home espresso machines and this trend will certainly follow its growth. 2. 2. TARGET AND POSITIONING The target | Types| Characteristics| B to C| * Members of Nespresso Club * Prospects| * From 35 to 60 * AB| B to B| * Hotels restaurants * Luxury retailers * Companies * Airline companies| * Sponsors et partnership with events organizers * Conference rooms * Welcome rooms * Hotels, restaurants and cafes * Airlines * SME * Big companies| Needs in B to C| Needs in B to B| To consume differently but in a better way * Need to be pleased and to dream * To search for new sensations * Innovative products * High quality products * To believe in key values of the company * To create a ceremonial atmosphere around the coffee’s tasting as if it was a high quality win * Recognition through the Nespresso Club * To access the best coffee of the actual market| * Innovative and up-market products = brand image * High quality products to offer to customers or associate s * Value of exception emitted by the Nespresso brand * To give to the company or to the event a modern, innovative and dynamic image through an up-market brand * To offer a delightful moment * Recognition trough the Business coffee solution| Actually, Nespresso’s typical customer is either a person linked to the statue conveyed by the brand and attached to the quality of the service, or a hedonist attached to the quality of the product. Positioning Nespresso’s positioning is up-market, in terms of quality and service. The brand is the worldwide leader of the up-market coffee. Nespresso aims at profitability per unit and their return on investment rather than volumes. This is the reason why the brand targets a niche with high prices. 2. 3. ENVIRONMENT 2. . 1 PEST Analysis Key points| P| * The smoking ban: impact on coffee machines’ sales| E| * A luxurious machine for a high purchasing power| S| * Coffee can be considered as a social habit| T| * Implementation of the latest new technologies| Politic The only interesting political aspect in this case is the smoking ban. Indeed, this law has created a change of atmosphere in all public premises where people were used to have a coffee. Several pubs and cafes have been affected. Some smokers have preferred to have their coffee at home and to make it taste as good as cafes’ ones, they invested in high quality coffee machines. Economy Coffee’s market is characterised by very strong prices’ fluctuations. Like in every market, coffee’s price is regulated by the ratio between the quantity of coffee available and the amount of people who want to consume some (in fact, this amount represents the quantity coffee merchants need to buy). If the quantity of available coffee exceeds needs of coffee merchants, coffee’s price decreases. Conversely, if there isn’t enough coffee to satisfy demand, the price increases. In this way, this international prices’ instability may, at any time, increase or decrease volumes of supply or demand. But the world’s actual economic situation influences those fluctuations. Indeed, recession affects everyone and it is leading to new behaviours and new consumption strategies. Nowadays, coffee’s supply overtakes demand. However, people targeted by companies like Nespresso are usually wealthy. This is the reason why sells of ‘luxurious’ coffee machines have increased for a couple of years. Social According to market trends, coffee is the most popular beverage worldwide with over 400 billion cups consumed each year. It usually refers to social and family gatherings. Coffee is also associated with ‘white collar’ jobs and office workers. Nowadays, coffee breaks at work are considered as social habits as they are pleasant ways to chat and relax. However, young people and elderly people restrict coffee’s consumption. Indeed, young people usually prefer soft drinks and seniors care about their health. Technology Coffee’s market is characterised by high technologies. Each coffee merchant is looking for the latest technology in terms of capsules and coffee machines; 19 Bar pressure pump, automatic and programmable coffee quantity, capsule container, cup-warming side plates, electronic control of the level in the water tank are examples of inevitable new technologies found in modern coffee machines. However, most of these new products don’t correspond to actual environmental criteria. 2. 3. 2 SWOT Analysis ————————————————- STRENGTHS * Diversification: in parallel with its activities in the ‘home’ sector, Nespresso extended to ‘out-of-home’ segment (hotels, restaurants, cafes, aviation, SME) * Up- market positioning * Fame and brand image: high quality coffee perceived by the customer as a luxury product * Personalized marketing: Nespresso Clubs (luxurious shops which represent Nespresso’s universe) and website * Own capsules: avoid competition and reduce distribution costs * Constant innovation: to maintain its brand image, Nespresso deals with sector’s leaders such as Krups, Miele or Siemens * Growth higher than 30% per year * Knowledge: an exclusive accessories range of high quality * Experimented sales force| ————————————————- WEAKNESSES * Limited target: from 35 years old with a high purchasing power * Mono-use of the coffee machine * Ethic and prac tical issues concerning capsules * High competition with lower prices and good quality equipment * Limited distribution: only through the Internet, by phone or in Nespresso shops| ————————————————- THREATS * Competitors: numerous and strong * Capsules’ patent comes to an end in 2012: if competitors reduce capsules’ price, huge margins realized at the moment won’t endure anymore * Multi-use coffee machines: people like to have many options (hot chocolate, tea†¦) * Negative environmental image| ————————————————- OPPORTUNITIES * Development on American and Chinese markets * Opening of new shops * B to B * The young’s market| Thanks to its positioning, Nespresso’s sales increase a lot every year since the company’s creat ion. Indeed, Nespresso wants its coffee and its coffee machines to be considered as luxurious products. However, even if they’re meant to target a niche, more and more people buy those products. For example, during offers periods customers can afford the simplest coffee machine for only ? 50. In fact, the company’s turnover is not based on machines sales (only 4%), they are more considered as a strategy. When Nespresso first set up, it offered free machines to companies. Once the customer has the coffee machine, he can only buy Nespresso’s capsules. On the one hand, this system represents the main strength of the company but on the other hand, it can be perceived as a weakness. Indeed, many people are not used to buy through the Internet for several different reasons and there aren’t enough shops. Moreover, Nespresso’s coffee is often too expensive for potential customers. But Nespresso has planned to open new shops all around the world in order to become more accessible. The Nespresso Club is a good way to add a luxurious value to products. It creates a privileged relationship with customers. What is more, the experimented sales force of the company will be able to open up new products, new coffee machines and different kinds of coffees. 2. 4. COMMUNICATION ANALYSIS Direct marketing Through its whole communication, pleasure and quality is always at the heart of Nespresso’s strategy. Having a coffee isn’t an everyday act anymore; it became a real sensorial experience. To understand this deep experience proposed by the company, it is necessary to get first into a Nespresso shop. Indeed, this is where Nespresso’s communication starts. In the shop, everything’s meant to create an unforgettable atmosphere characterized by luxury, peace and sensual pleasure. A very nice and smart employee welcomes potential customers. They directly feel comfortable and are happy to follow him/her to discover products. In this environment, each coffee machine looks like the perfect last element that will complete the decoration of the potential customer’s kitchen or living room. Moreover, a large range of tasting implements is nicely presented: cups, glasses, teaspoons, shakers, chocolates, sugars†¦ and of course coffee. A vast number of coloured capsules are exposed, and obviously it is possible to taste them. Once the coffee machine and capsules bought, customers become members of the Nespresso Club in the same way as Georges Clooney! Hoarding campaign Nespresso chose the American actor Georges Clooney to represent the brand. Through this choice, the company expresses the following message: drinking a Nespresso is kind of being like Georges; it means integrate the elite, access a higher rank. Advertisers use here an identification process: they push consumers to adopt some behaviour and some feelings from the person they would like to be. The aim of this campaign’s strategy is to impose Nespresso as a worldwide brand and to reinforce its icon statue. Georges Clooney is The man who best represents Nespresso’s values, as he is sophisticated, chic and charming. Georges, as the brand’s ambassador, gives some legitimacy and some leadership to Nespresso. Actually, this campaign is based on two types of purchasing motivations. Coffee refers to a simple life’s pleasure but a Nespresso aims to be considered as a kind of ‘magic’ desire. This delightful idea of having a Nespresso at home is a hedonist motivation. On the other hand, advertisers use the fact that having a coffee has become a social habit so having a Nespresso machine is a good way to ‘show off’, as it can represent an extern sign of success. This is the auto-expression motivation. Visual analysis The logo The N of Nespresso is made of curves, which brings dynamism to the word. This shape and warm colours refer to the idea of a nice coffee and to relaxation. We can also imagine an allusion to Italy. There is a direct relationship with yin and yang: that remembers equilibrium. Yin is associated with moon, which represents the feminine part of nature. Yang is associated with sun and represents the masculine part. The visual way Nespresso’s advertising is adapted to the European market. Indeed, the picture is meant to be red from the left to the right and from the top to the bottom. The lighting, the look and the hands position guide the audience to the slogan, then to the machine and to finish to the brand. The main colour used is black; it remembers coffee. Georges Clooney is at the centre, he directly catches the attention. There is a hand-play and a look-play. His eyes are creating a delicious moment of impatience. The composition is simple, there are few movements; Georges is acting as a figure of authority. Concerning the slogan ‘Nespresso: What else? ’, the italic typeface remembers the idea of quickness when making a Nespresso. What is more, this short question refers to seduction, still according to the brand’s up-market position. Press relations * Communication relating to events Nespresso always organises an event when a new product is launched. For example, the brand organised a big show in December 2007 at ‘Bon Marche’, Paris, to promote 2 new coffees. Nespresso is also an active partner in gastronomic events, such as the Bacuse d’Or competition and the selection of the World’s 50 best restaurants. * Press reviews The press reviews’ selection is strategic. Nespresso is present in some magazines, some newspapers, and in specialised reviews of information, strategy and opinion leader. * Press Once again, the choice of magazines is strategic. Nespresso’s ads are published in some magazines like feminine up-market, travels, sciences, decoration, news and economy. Most of Nespresso’s ads are double-page. Nespresso Magazine The brand has its own magazine. It targets all the members of the Nespresso Club. The magazine is published three times a year and distributed in about ten European countries. The magazine’s main topics are coffee and lifestyles. It is a 64 pages magazine with no more than 10 pages of ads for luxurious brands. * TV and Cinema In 2006, Nespresso started to broadcast TV spots of 10, 30 and 50 seconds. Thanks to Georges Clooney, this operation has been very successful. However, it is through its campaign destined to cinema that the brand caught all the attention (75% of memorisation against 15% for TV). 3. 0 COMPETITORS ANALYSIS On the market of percolators we attend an increase in the number of partnerships between household appliances manufacturers and big food groups: * Kraft foods et Braun  : TASSIMO * Nestle and leaders in the sector of espresso machines such as Krups: NESPRESSO * Philips and Sara Lee: SENSEO * Procter and Gamble, Black and Decker and Krups: HOME coffee * Kraft foods and Braun: TASSIMO 3. 1 TWO LEVELS OF COMPETITION Coffee market  offers a lot of segments: powdered coffee, instant coffee, coffee beans, capsules†¦Each kind of products offer variants: Classical coffee, decaffeinated coffee, Arabica coffee†¦ Domestic electrical appliances market offers various products: coffee pots, espressos, percolators†¦ Concerting to capsules’ market, two kind of systems exist: * Closed proprietary systems: Nespresso, Tassimo, that is to say machines which only work with the brand’s capsules * Open Systems (easy serving espresso): De Longhi, all compatible brands. Coffe e market: Monodor, Swiss also, which sold 500 millions of capsules in 2006 in the world (against 2, 3 billions for Nespresso). The same design, the same complexions, the same naming with Italian consonance and the same rates as those of Nespresso. The leader of Monodor, Eric Favre, is the inventor of the concept of capsule used by Nespresso. According to the last rumours, he would recently have signed a discreet agreement with Lavazza. Three times smaller with 227 million euros turnover and an annual growth of 10 %, Illy and its cafes-shops (since 2001) aim at the same clientele as at the Swiss roaster. We can sample the coffee in cups there drawn by the biggest designers or make it some purchases of capsules. Hyper Espresso, the new Illy‘s machine already distributed in certain restaurants will be available for the general public via two new machines launched at the end of the year (approximately 250 and 390 euros). It will require only Illy plastic capsules. Selling price: 0, 39 euros each. Starbucks, leader of the retailing and the roasting of coffee with more than 10 000 stores distributed between North America, Latin America, Europe, the Middle East and peaceful region. Starbucks made 7, 8 billion dollars of turnover in 2006 and realized an annual growth of the sales of 20 %. The company launched in the United States compatible capsules with the system Tassimo (Kraft Foods), it also collaborates with the car manufacturer BMW and the manufacturer of coffee machines Saeco for the launch of a new machine in espresso, Sirena. Luigi Lavazza is an Italian active company in the coffee market. At the world level, Lavazza distributes approximately 1, 8 billion drinks a year. This company operates in the sector of the espresso in capsule for more than 15 years with the systems ESE, Espresso Point and, since 2004, Lavazza BLUE (Best Lavazza Ultimate Espresso). Lavazza is present in 80 countries and acquired an international fame. Today the sector â€Å"Professionals† of Lavazza represents 50 million euros. Domestic electrical appliances market Philips Senseo  : Senseo is a coffee machine spring from an association between Philips and ‘Maison du Cafe’. The main asset of this coffee pot is its speed and simplicity of use. We do not use any ground coffee in bag, but capsules, don’t need to measure anymore, similar for the water, it is measured meadow following the number of cups which we wish. Furthermore, the taste remains considerable and the froth gives one plus to the coffee natural. Key Factors of Success: Speed of use, simplicity of use, design, taste. Philips cucina  : This second coffee-pot of Philips, is less popular than the Senseo. This is principally had to the fact that its use is totally different. No capsules, but ground coffee and filters. Less rapidity of use, but simplicity is always present. The principal asset of this machine is its design and its simplicity. Key Factors of Success: simplicity of use, design. De’longhi espresso  : Another different coffee pot. Here it is the same system of use that the previous one, but this coffeepot is more worn towards the quality and taste. Indeed, its main asset is the taste which it produces and its froth as well. Key Factors of Success: taste. Moulinex crystal, Moulinex cocoon  : These two machines are similar; this is the reason why they are examined together. Work as the philips cucina, with ground coffee and filters as well. Their major assets are design and simplicity. However, they are common to many coffee pots. Key Factors of Success: simplicity of use, design. Tassimo: This is a machine which does at the same time filter coffee, espresso, cappuccino, chocolate and tea. Its capsule, called ‘T-disc’ and patented, is endowed with a bar code which allows to recognize the drink and to adapt the preparation. A single button orders the use of the machine. Key Factors of Success: Speed and simplicity of use, design, taste, quality and practicality. 3. 2 FIVE PORTER’S FORCES Competitors The main Nespresso’s competitors are: Compagnies  : Philips et Sara Lee  in 2002 Target  : general public Price  : 69â‚ ¬ Capsules: 0,13-0,19â‚ ¬ and compatible with the others percolators Main competitor, Senseo established itself as the leader of capsules. The technology is simple and cheap, so easy to access, confirmed by the sale volume. We notice a big increase in + 37. 5% for Nespresso, and + 30% for Philips Senseo. Senseo which is often directly criticised concerning the fact its offer is not a true coffee espresso, for lack of sufficient pressure, has just reacted with a kit espresso (carries filters capsules) being able to adapt it on the machines which already exist. Its positioning is very generalist in comparison with Nespresso which promotes a up market brand image and which aims a certain clientele. Nespresso insists also on the quality of its coffee as being an exception coffee, and does not skimp on the means to assure to its clientele the better services and advices. Kraft foods and Braun  : TASSIMO Target: all drinkers of hot drinks Price: 129,99â‚ ¬ Capsules  : 0,22-0,28â‚ ¬ This is a machine which does at the same time filter coffee, espresso, cappuccino, chocolate and tea. Its capsule, called ‘T-disc’ and patented, is endowed with a bar code which allows to recognize the drink and to adapt the preparation. A single button orders the use of the machine. Since its launch in France in 2004 until at the end of 2006, more than two million systems of drinks Tassimo were sold in seven countries. Kraft Foods awaits of its brand Tassimo, a turnover of 200 millions of dollars this year. The threat of substitutes: Tea and infusion are markets with ‘well being references’ contrary to the coffee. Each year, 2. millions of metric tons of tea are produced in the world and about 1,200 billion cup of tea are drunk per year, hence 36,000 per second, which corresponds to an average annual consumption of 600 grams per year and per person. Soluble and other coffee varieties: the coffee market in capsules would not re present in 2006 that 3% in volume and 7% in value of the total quantity of consummate coffee in the world. But, nowadays the coffee market increase where sales stagnate. The power of suppliers: About coffee: the coffee market is characterized by fluctuations rather frequent because of the fact that it is governed by the offer and the request, which influences the coffee prices. Example: In 2006, Starbucks had bought its grains about 36% above the course of the stock Market of New York. This American offensive constrained Nespresso to align itself. The Swiss business thus paid a premium of 33% in comparison with the average course of the stock Market. However, Nespresso has a partnership with a NGO working for durable farming. For the machines: Nespresso has partnerships with the machine builders. There are many brands in competition each other: Krups, Magimix, Siemens, Miele †¦That allows Nespresso to check easily the pressure of the suppliers. The power of customers: The customers have a strong pressure on the market because they have access to a diversified choice. However, for the systems owners, the pressure is inverted, indeed, once the machine bought, the customer can only to use the corresponding capsules. In addition, the stagnation of the consumption of coffee gives to the customer a certain influence on the sector. Potential entrants : * Procter Gamble * Kraft foods et Braun * Philips et Sara Lee * Salton * Monodor * Illy * Starbucks * Lavazaa The threat of the potential entrants is quite strong all the more so it is the matter of big groups such as Procter Gamble or Salton. Concerning to competitive force, the pressure is even more important as a consequence of the presence of many competitors on this sector. Competitive Rivarly: In this sector it is very pronounced as a consequence of the fact that there are several competitors which take strategies of growth and base themselves on the innovation technological of the products. The competitive pressure is strong considering to the variety of the products and the power of competitors. Some of them do not hesitate to produce open systems, that is to say, usable capsules with others machines. The market is attractive and does not really represent barriers to the entry, that’s a real potential. 3. 3 NESPRESSO COMPARED TO COMPETITORS MULTI-DRINKS CAPSULE VARIETY (COFFEE) MACHINES QUALITY (Power) ACCESSIBILITY CAPSULES PURCHASE POSITIONING (upmarket) COMPETITIVENESS MACHINES CAPSULES PRICES BRANDS MATCHING PRESENCE IN THE MARKET (Time) Nespresso Tassimo Senseo 4. 0 NESPRESSO’S STRATEGY Since its creation, Nespresso has experienced several policies and several strategies which were not always successful, until now. Indeed the current strategy of the company is a clever association of knowledge, creativity and innovation which transformed the firm in a real and particular concept. Nespresso is now one of the most known brands on the coffee market. 4. 1 CORPORATE STRATEGY 4. 1. 1 Differentiation Strategy To deeply understand the Nespresso’s corporate strategy, we based our reflection on the Generic Strategies analysis by M. Porter. | COMPETITIVE ADVANTAGE| Specific feature seen by the costumer| Low cost policy of the company| COMPETITVE SCOPE| Broad| DIFFERENTIATION| OVERALL COST LEADERSHIP| | Narrow| FOCUS/ NICHE STRATEGY| Analyzing the principal characteristics of Nespresso we can think that they use the Differentiation strategy. Indeed, the differentiation strategy implem ents other factors than the price in order to differentiate the product or service from the competitors. The Nespresso’s strategy is based on a high quality product and on a luxurious brand image. If you buy a Nespresso product you belong to the selective â€Å"Nespresso Club† which provides lots of personal advantages and personal status to the consumers who are ready to pay a high price. The company offers a perfect espresso for hedonist and elitist people who reflect a special way of life: the more than 30 year old urban people with a high purchase power. Nespresso use the differentiation through the top with a high price and value: The â€Å"Virtuous Circle† of the differentiation through the top: Characteristics| Risks| * Intuition and Creativity * Innovation * Business * Partner and cooperative distribution network * Good brand image| * Difficulties to manage the additional cost due to the differentiation * Wrong perception from the costumer * Imitation of the differentiation factor * Lose the interest of the differentiation factor from the costumer| We can easily link this model to the Nespresso concept: their creativity innovation and intuition are perceived by the rarity, the quality and the image of the range of capsules or machines they sell. It is perceived as well by the concept of â€Å"Club† and of belonging to a high community just drinking a delicious coffee which answers to their target using the esteem need of the Maslow’s hierarchy. Its distribution network is an entire part of its concept: luxurious places where consumers can join people sharing the same taste and feel the personal status Nespresso gives them. Concerning the brand image, Nespresso is now one of the most famous brands thanks to its clever communication and to the face of the company: George Clooney. At the moment Nespresso keeps its competitive advantage and is still a reference in the high quality market. Consequently the firm is still avoiding the risks linked to this strategy which is the main reason of its incredible success. If we follow the Strategy Clock of Bowman, we can explain why the differentiation strategy succeeds so much. Indeed, the perceived added value sufficient to bear a premium price. The target buys not only an espresso machine but the whole culture of Nespresso which give them the possibility to join an elitist community and reach particular privileges. 4. 1. 2 Internal Growth Strategy The internal growth strategy of Nespresso is clear: Penetrate and spread. The company currently wants to conquer new markets shares thanks to a strong marketing campaign at once â€Å"push†: cinema, television, billboards and â€Å"pull†: direct marketing, website, sponsoring, in order to become and stay the leader on the capsules coffee market. The firm established an internalization strategy. It has recently implemented some stores in the United States and in China. Nowadays, Nespresso is represented in more than 50 countries by 160 Nespresso boutiques in 2008. Two different kinds of internalization strategies are possible. The first one is the Multinational strategy: the organization’s activity is implemented in a new area and then modified according to the country’s specificities. Nespresso is developing the Global strategy: it proposes on the whole area it covers a standard offer. Nevertheless, the international development of the brand succeeds thanks to a good knowledge of the coffee consumption habits which is very different in each country. According to that, it adapts its strategy to each new market, privileging sometimes the loyalty aspect of the concept and sometimes to conquer new costumers. 4. 1. 3 External Growth Strategy An external growth strategy could be defined by a merger and acquisition process, by an assortment of companies or by a partnership of different firms. Nespresso’s strategy is defined by the last one. Indeed, the firm established strategic alliances with some famous companies as SIEMENS or TURMIX (KRUPS) to develop some of their activities like coffee machines. According to the contracts those companies have to respect the Nespresso’s criteria manufacturing design, refined and luxurious items. Nespresso cooperates as well with the RAINFOREST ALLIANCE, one of the most important ONG supporting agriculture in order to create the NESPRESSO AAA program which certifies the quality of their product. The objective of this program is to produce a high quality Green coffee according to the economics and social consequences for the local producer and to the environment’s respect. 4. 2 ACTIVITIES’ STRATEGIES Nespresso SA is one of the most efficient strategic business units of the Nestle group. Therefore, despite the fact that the company owns several activities none is corresponding to a strategic business unit. Nevertheless, as we said the firm operates on different market segments thanks to 4 developed businesses: the sale of espresso machines, of coffee capsules, of accessories and the managing of many luxurious places around the world. In order to deeply understand the company strategy and to produce a complete study, we will present the different businesses Nespresso proposes and then its strategy applied for each of its market segment using those businesses. 4. 2. 1 Nespresso’s Businesses Presentation Espresso machines The espresso machines represent the main activity of the brand and generate the most important profit. The company has created 40 models according to the different needs of the target. The machines are manufactured by partner companies as Siemens, Miele, Alessi, Koenig, Turmix, De’ Longhi, Magimix and Krups. They differentiate themselves by a unique design and a luxurious aspect which perfectly reflect the Nespresso’s image. As an example, the most famous machine is the MAGIMIX M110 sold for ? 116: New compact brewing unit technology, 19 bar pressure pump, thermoblock heating element, automatic and programmable coffee quantity and available in different colors: â€Å"What else†? Those machines represent a high technology inside a refined aesthetic. Concerning the distribution network, it is a traditional one: we can find some machines in hypermarkets, mail order or in specialized shops. More than 18  000 points of sale have been counted. Coffee capsules The Nespresso’s range of coffee capsules is composed of 9 different blends from the decaffeinated to the strongest one. The espresso blends come from the finest coffee-producing countries: Brazil, Columbia, Costa Rica, Togo, Guatemala, Kenya and Ethiopia. Capsules cost ? 0. 25 each and customers can only find it on the Nespresso official website or in Nespresso boutiques. According to Daniel Lalonde, International Commercial Director, 24 capsules are sold each second somewhere in the world. Accessories In order to perfectly complete their offer, Nespresso sells to its consumers all the accessories which are necessary to make their coffee break a design and elegant moment. A wide range of coffee cups from ? 8. 81 to ? 44. 04 each, sugar bowls, chocolate, items to heat the milk, recipe glasses, candles, Shaker, cappuccino kit, spoons, trays and more. Under the words â€Å"Presentation is everything† Nespresso makes its consumers understand that they cannot drink such a delicious coffee without sophistication. The Nespresso Boutiques The Nespresso boutiques and bars boutiques are the heart of the Nespresso communication strategy. They are allowed only to â€Å"Club members† and are the showcase of the brand. Consumers belong to the club as soon as they buy their first machine. From this moment they are able to buy the capsules and the accessories and they benefit from a personal service for information or reclamations. Moreover they are able to enter the luxurious boutiques in order to taste new blends, buy some products or just enjoy their time in beautiful and refined spaces. Those boutiques generate about 25% of the company’s annual turnover in B to C. In order to create those elegant and design spaces the brand worked with the famous French architect Francis Krempp who realized the plan of the biggest boutiques. Each new boutique is strategically located in the most elegant and famous street of the biggest urban centers. We currently count about 160 boutiques and bars boutiques around the world. 4. 2. 2 Nespresso Markets Segment The company operates on two different markets segment, the Nespresso Business to Consumers division for customers or Club members and the Nespresso Business to Business division for the out-of-home sector. In a very competitive environment, the brand is positioned as leadership and as the only distributor and owner of aluminum capsules and particular machines’ patents. The Nespresso’s challenge is that in 2012 the capsules and machines’ patents will become public giving to the competitors the possibility to create machines with the same technology and the corresponding capsules. Therefore, in the following part we will analyze the strategies that the company is currently using in order to keep its position on the market. Nespresso applies different strategies for each market segment. 4. 2. 2. 1 Nespresso Business to Consumer In this section the target are the members of the Nespresso Club, the new costumers and the potential customers. Machines promotions and new customer strategy Nespresso aims to conquer new customers until 2012 proposing some promotions on machines at special occasions of the year. The brand wants to develop its consumer panel thanks to reductions for the new buyers, for the club members and for partnerships. The Partnership is the fact that a consumer â€Å"pushes† another person to buy a machine, and then the consumer gets a reduction. The club members are the best promotion support for Nespresso, indeed a consumer who talks about the brand to 10 people for example, gives it between 3 and 5 new potential customers. Moreover, once the customer buys his first machine, he becomes a member and therefore he has to buy the capsules and enter in the Nespresso’s database. Differentiation strategy The Coffee: In order to keep its dynamic image, Nespresso markets, once a year and in a period of two months, two new coffees from a small production: Spring limited edition, autumn club edition and variations. Those very high quality coffees are punctual and limited offers which goal is to make the customers come into the Nespresso boutiques. Those products are very rare and consequently, it does represent a differentiation because Nespresso is the only brand which proposes a different offer from the classic range. Finally the variations are another kind of limited editions: it is a range of flavoured coffee. Machines: In order to differentiate itself from the competitors, the company created a â€Å"pack machine† which contains an instructions file, 12 capsules and some promotional leaflets on accessories. Accessories: As a luxury brand Nespresso has different season’s collections of accessories: The Autumn/Winter collection and a Spring/Summer collection. The firm is the only one which creates its own accessories on the coffee market. Loyalty strategy The main strategy of the company in B to C is the loyalty strategy based on an important loyalty program: * The â€Å"Welcome in Nespresso† concept * The website * The â€Å"Nespresso Club† * The mailing and emailing campaigns * The phoning campaign called â€Å"Nursing† Newsletter in the monthly Nespresso magazine The â€Å"Welcome in Nespresso† concept: This loyalty program integrates on one year long the new customers thanks to discovery boxes or promotions. This strategy not only strengthens th e Nespresso perception and its brand image it also allows it learning more about their consumers from the beginning, encourages members tasting different blends and buy accessories and generates important orders. The website www. nespresso. com: Useful loyalty tool, it generates about 37% of new members. Indeed the consumers can buy some items online and regularly check the new offers and promotions. The â€Å"Nespresso Club†: The main dvantage of this concept is to create a long term relationship with the consumer because he belongs to the brand club since his first purchase. He will regularly receive some mailings and emailing and therefore he will be in regular contact with Nespresso. Mailing and emailing When a new customer enters in the Nespresso’s database he often receives personalized mails about the club services, the accessories, machines and some satisfaction surveys. Nursing: Nespresso phones all new customers one month after their first order asking them a bout their opinion about the Grand Crus and the practicality of the machines. They also remind him the club services. Public relations: As we said previously, the Nespresso magazine is delivered only to the best consumers of the brand. It is mainly about coffee but also about different subjects about the luxury sector. It is considered like a privilege for those who receive it. 4. 2. 2. 2 Nespresso Business Coffee Solutions This division of the firm targets companies from different sector: Offices, hotels and restaurants, luxury retails (luxury shops, spas†¦) and airlines companies. The B to B prospecting strategy Prospecting: Nespreso is currently prospecting new business customers using tools as a trying brochure or telephone number in order to fix an appointment to try a machine. The objective of this strategy is in a first step to establish a contact with the potential business customer for a free try and in a second step to measure his potential and his needs. Try and contract: During the try session the aim is to introduce â€Å"Nespresso Professional†, inform the potential customer about the different products and services, create a first impression and engender the signature of the contract. Loyalty strategy: As the B to C loyalty strategy, the company that Nespresso is targeting will receive a welcoming pack, some phone calls (nursing) and a satisfaction survey. 4. 2. 2. 3 Market segments’ strategy conclusions On the whole we can say that the B to B division is now a mature segment where Nespresso mainly has to develop its relationships with its customers. Nevertheless, despite the fact that the B to C division is well developed and well positioned on the market, the company still has to conquer market shares and customers around the world. Indeed the machine selling is a very important part of the Nespresso’s profit and needs to be increased. CONCLUSIONS AND RECOMMENDATIONS Unique Personalized Service High Design Machines High Quality Coffee In conclusion, according to the market trends and the Nespresso’s sales, the company is on a successful way. Success which began with its resources, indeed Nespresso owns decisive intangible resources which are its several patents, its relationships with high technology industries and quality coffee producers around the world and finally, its brand image. They are completed by an inventive strategy management team: the firm’s main tangible resource. Those resources engender the Nespresso’s distinctive competencies: Ownership of high technology and design process, worldwide coffee supplying and an efficient differentiation strategy. The final result of the Nespresso’s competencies is the now famous trilogy of competitive advantages: That is how Nespresso became one of the most famous coffee brand and that despite high price products, sales exploded. The competition could be severe however each competitor has a different positioning which protects the company from directs competitors. All future consumers are conquered by the system and rapidly become a Nespresso Club member. About the future of the company, it recently conducted a democratization strategy targeting younger customers creating the Essenza and Compact ranges. The reason is probably because their target is getting older which could become risky in long term speaking. The expansion of Nespresso Boutiques confirms that theory, the company is trying to catch the attention of a larger population. As we said the firm has to develop its machines sales as much as possible and young people seems to be a perfect potential target. In order to reach this aim Nespresso should develop its range of affordable machines keeping a dynamic and innovative feature but giving to younger people the access to the brand. Nevertheless, they should not target people under 25 in order to keep their high quality brand image. Recently some competitors launched new technologies able to produce not only coffee but hot chocolate and tea as well. It could be an interesting evolution for the company, still in a view of getting the target larger. Indeed the tea market is full of potential with an increasing demand. Moreover, to attract young people Nespresso could create a special range of machines with a trendier aesthetic, keeping its refined design with a touch of dynamism. As final recommendation, Nespresso should find an alternative to the aluminum capsules which are in contradiction with the environmentally friendly and natural image that Nespresso desires to have. Indeed aluminum is known as a very polluting material. How to cite Nestl†s Nespresso, Papers

Thursday, December 5, 2019

Essay On The Salem Witch Trials Example For Students

Essay On The Salem Witch Trials The Salem Witchcraft trials in Massachusetts during 1692 resulted in nineteen innocent men and women being hanged, one man pressed to death, and in the deaths of more than seventeen who died in jail. It all began at the end of 1691 when a few girls in the town began to experiment with magic by gathering around a crystal ball to try to find the answer to questions such as what trade their sweet harts should be of . This conjuring took place in the Parris household where a woman named Tituba, an Indian slave, headed the rituals. Soon after they had begun to practice these rituals, girls who had been involved, including the Master Parris daughter and niece, became sick. They had constant fits, twitched, cried, made odd noises, and huddled in corners. The family called in doctors, and they were treated for many illnesses. Nothing helped. Many weeks later after running out of reasons for their strange behavior, all of their symptoms seemed to lead to one belief, The evil hand is upon them . They were possessed by the Devil. At first the families of the children could not find anyone to accuse for being the witch responsible for possessing the children. Then, late in February of 1692, Parris neighbor, Mary Sibley recommended that Parris slaves, Tituba and John Indian, should work a spell to try to find the culprits. Even after trying this solution the girls condition worsened, and the people responsible still had not been found. The girls began to see hazy shadows and believed that these shadows were of the people who had done this to them. After more and more children became victims of this, the hunting for the witches who were to blame for the girls sickness began to get more serious. By the end of February 1692, not one, but three witches had been named. These women were Sarah Good, Sarah Osborne, and Tituba, all residents of Salem Village. Tituba, like Good, was very poor. She worked as a servant in the Parris home and was a Carib Indian born in Barbados in the We st Indies. Reverend Parris brought Tituba to New England when he was still a merchant, and after this she married John Indian who also worked as slave for Reverend Parris. Tituba was the person asked to aid with the girls illnesses by making a witchs cake to find their culprit and after this did not work, she was arrested four days later for being a witch herself. Each of these three women was examined by local Salem officials before they were sent off to await trial in a Boston jail. The girls, who these witches had supposedly inflicted sickness upon, were also present during these trials to show the court how much pain the three women had caused. During the trial Sarah Good kept insisting that she was not guilty but rather that she had been wrongly accused. When asked why she hurts the innocent children she responded, I do not hurt them. I scorn it.Then, she attempted to shift all blame onto Sarah Osborne who in turn responded with disbelief. She said that she was more like to be bewitched than she was a witch. While Good and Osborne were trying to defend themselves, Tituba confessed, most likely in fear of her Master, Reverend Parris. When asked who was to blame for all the possessed girls she responded, The devil for aught I know.Tituba told the whole court about her pact with the Devil and the type of wonderful things he gave her in retur n for her service and loyalty to him. Then, after she was done telling her story, when the magistrate asked her who she had seen doing the witchcraft, Tituba says, Goody Osborn and Sarah Good and I do not know who the other were. Sarah Good and Osborn would have me hurt the children but I would not . . . So according to Tituba there were still witches out there bewitching innocent children. .ua189b1a2b78b31d550da31881d6c729a , .ua189b1a2b78b31d550da31881d6c729a .postImageUrl , .ua189b1a2b78b31d550da31881d6c729a .centered-text-area { min-height: 80px; position: relative; } .ua189b1a2b78b31d550da31881d6c729a , .ua189b1a2b78b31d550da31881d6c729a:hover , .ua189b1a2b78b31d550da31881d6c729a:visited , .ua189b1a2b78b31d550da31881d6c729a:active { border:0!important; } .ua189b1a2b78b31d550da31881d6c729a .clearfix:after { content: ""; display: table; clear: both; } .ua189b1a2b78b31d550da31881d6c729a { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ua189b1a2b78b31d550da31881d6c729a:active , .ua189b1a2b78b31d550da31881d6c729a:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ua189b1a2b78b31d550da31881d6c729a .centered-text-area { width: 100%; position: relative ; } .ua189b1a2b78b31d550da31881d6c729a .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ua189b1a2b78b31d550da31881d6c729a .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ua189b1a2b78b31d550da31881d6c729a .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ua189b1a2b78b31d550da31881d6c729a:hover .ctaButton { background-color: #34495E!important; } .ua189b1a2b78b31d550da31881d6c729a .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ua189b1a2b78b31d550da31881d6c729a .ua189b1a2b78b31d550da31881d6c729a-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ua189b1a2b78b31d550da31881d6c729a:after { content: ""; display: block; clear: both; } READ: optimism in the candide EssayAfter Titubas confession, the entire community of Salem increased their efforts to find the witches who were bringing such horrible events to their village. The

Thursday, November 28, 2019

B2B and Reseller Markets Essay

B2B and Reseller Markets Essay B2B and Reseller Markets Essay B2B and Reseller Markets Business-to-business (B2B) concept involves the aspect of decision-making in the majority of industry sectors (Hutt Speh, 2013). The majority of the collaborative business models in the modern times have made an effort to improve the face of marketing through the support of the B2B relationships amongst the entities. The application of the B2B also comes with challenges in the fulfillment of the negotiations and interactions imposed through the collaborative models in managing public business marketing processes (Hutt Speh, 2013). In this research, the description of the use of interaction protocols in defining and managing the processes in B2B relationships forms the core subject. The advancement of technology has enabled businesses conduct marketing electronically facilitating the existence of the Business-to-Business (B2B) E-Commerce (Hutt Speh, 2013). In some of the B2B relationships, the aspect of interaction forms significant challenge. The interactions within the B2B framework occur in three vital layers including content, communication, and business process. Internet-centered B2B related business models are effective in conducting business-to-business (B2B) commerce in the majority of the industry sectors. As one of the instantaneous mediums, the development of technology provides the business entities with new and improvised electronic marketplaces (Hutt Speh, 2013). Business Processes In the layer of business process, the B2B relationships necessitate the management of two distinct business processes including public processes and private processes (Hutt Speh, 2013). The private processes forms part of the enterprise itself managed through each enterprise in an independent way. The private processes receive support within the enterprises through a traditional Workflow Management System, proprietary systems or the ERP systems (Meyer, 2007). The public processes enable the spanning of the organizational boundaries following the involvement with the enterprises involved in the B2B relationship. The processes are under joint management and agreed on by the partners (Meyer, 2007). The activities of the public process have an abstract nature with the support of the private processes. As a clear distinction aid, the public and private processes enable the corresponding organizations abstract the internal process management from the respective management processes across enterprises. The collaborative business models usage have been proposed under several application domains including the supply chain management. The collaborative models have the support of B2B relationship with the inclusion of public business processes jointly managed through partner organizations (Meyer, 2007). Some of the collaborative models necessitate the businesses to establish autonomous B2B with the partners enabling the organizations collaboration. From the perspective of marketing, the collaborative models impose significant challenges in support of the management of the public business processes involved in B2B relationships and they are: Autonomy, the enterprises should have the ability to behave as relative autonomous entities, hiding their internal activities, decisions, and processes (Meyer, 2007). The information system in the management of B2B relationships in the enterprises should have independence. Decentralized management of the corresponding business processes through the enterprises joint management. Peer-to-peer interactions within the enterprises systems for the management of the B2B relationships to imply that the systems interact in a direct means without the independent third party system mediation Negotiation is inclusive in the management of the public processes. Although the proposal of web service composition and workflow approaches still stands in the management of the public processes, there are shortcomings presented in the achievement of autonomy, decentralization, negotiation, and P2P interaction capabilities. B2B Relationships Interaction Protocols The interaction protocols have been in the long run used in the major area of multi-agent systems for the representation of interactions among the involved agents (Hutt Speh, 2013). In B2B context of relationships, interaction protocol enables the management and modeling of the interactions among the involved enterprises in the B2B relationship. The interactions represent the business processes of the public that the enterprises agreed on the aspect of collaboration. Through this means, adapting the concept to the B2B relationships, an interaction protocol enables the description of the high-level communication pattern (Hutt Speh, 2013). This is through the admissible message sequence amid the enterprises playing different roles. The major objective of the interaction protocols is the abstraction of the public processes from specified services involved within the enterprises framework. This is for executing the supported public services internal activities (Hutt Speh, 2013). Within the system, different interaction protocols have one of the highest abstraction levels. An interaction protocol message does not represent the message on the business network. Interaction protocol message in implemented through the application of a lower-level protocol-involving network set of messages (Meyer, 2007). According to B2B three layers application, the interaction protocols transpire in the business process layer with the communication protocols occurring in the layer of communication. The major elements in the interaction protocol include messages, roles, control flows, conditions, deadlines, and logical connectors (Meyer, 2007). The roles are the responsibility in terms of the message sequence the enterprises performs in the B2B relationship. Messages involve the expression of the interactions containing the semantics defining their form. A message can be a representation of the decision, business information, acceptation, acknowledgement, proposal, and rejection. The messages can be of the asynchronous forms or synchronous. Conditions are defined as the messages to represent when messages can be sent (Meyer, 2007). The interaction protocol has two significant control flows. One of the control flows represents messages control flow defining the parallel or the alternative messages of the interaction protocol steps (Meyer, 2007). The second flow is a representation of the internal execution flow of the role describing the different reactions. These are of the roles to the incoming messages. The basic logical connectors are applicable in defining the control flows with deadline defined on the messages that represents time a role sends a message (Hutt Speh, 2013). B2B Standards and Interaction Protocols The B2B standards enable the exchange of messages amongst the enterprises in the B2B relationship. B2B standards are also utilized in the implementation and the exchange of messages defining interaction protocols (Kurtz, 2014). The enterprises should consider an agreement on the B2B standard to be applicable in exchanging the interaction messages. This is to enable the enterprises implement different and independent systems for the joint execution of similar interaction protocols (Kurtz, 2014). This is without the application of the proprietary communication protocol at a lower level. The B2B standards are large in number and consist of the following specification elements: A machine-process able definition language for defining the public processes An exchange sequence defining the transactions possible as required through every message and the constraints of the specified message, performance and like time-outs The business documents structure involved in the content of the message The form in which the messages are packaged and transported on the corresponding networks through specified communication protocols including SMTP and HTTP Messages Security Mechanisms All the B2B standard elements necessitate the implementation of the interaction protocols. Some of the standards specify only the elements defining the business documents (Pride et al, 2007). The rest of the B2B standards enable the specification of the required elements. The implementation of a message using the B2B standards enables each of the interaction protocol messages to consist of more messages. The transaction messages enable the keeping of the message as a unit through the application of responses. In the business transactions, one of the roles performs the requesting of the specified activity with the other one performing the responding activity (Pride Ferrell, 2007). The B2B relationships are under the management of public and private entities with an explicit separation between the private and public processes managed in an independent means (Pride Ferrell, 2007). The modeling of the public business process through an interaction protocol of the B2B relationships focuses on the messages enterprises exchanges for interaction and message orchestration. The interaction protocols facilitates greater enterprise autonomy in marketing framework since the enterprises hides internal activities, decisions and services necessitated for supporting public processes (Pride Ferrell, 2007). Public Business Processes Modeling with Interaction Protocols In the B2B perspective of modeling interaction protocols, the two languages necessary includes the textual modeling language and the graphical language modeling (Villarreal et al, 2003). The former provides the intuitive semantics that enables the business marketing process designers understand and define the public process for interaction representation between partners. The second language enables the enterprises exchange the interaction protocol descriptions. They can be understood and process able through the information system of the B2B relationships for the interaction protocol execution (Villarreal, Salomone, and Chiotti, 2003). The major difference that exists between the interaction protocols and the other approaches for public processes modeling is the interaction protocols not defining the services or activities (Kurtz, 2014). The modeling of the process with the aspect of the interaction protocols draws the focus on the messages sent and received through the roles of the enterprise in every step of the process. For exemplifying the interaction protocol modeling, capacity planning and collaborative planning processes are defined through a partner-partner collaborative model. The collaborative model carries out the business process amongst the enterprises manufacturing belonging to different chains of supply in the market (Kurtz, 2014). The model has a public business process carried out jointly by partners in a decentralized procedure. The collaborative model necessitates the enterprise establishment of an independent B2B relationship with the partners (Kurtz, 2014). Conclusion Interaction protocols in the B2B relationships perspective enable the management and modeling of public business processes consideration through autonomous and heterogeneous partners. This is for the relative achievement of B2B relationships goals. The protocols provide an abstraction framework level for modeling interactions that represents public processes. With the models of the B2B relationships, the messages exchanged by the corresponding enterprises are significant. The protocols of B2B also enable the implementation of interaction protocol for marketing systems fulfilling the collaborative business models requirements. IMP communicative acts facilitate the definition of the B2B relationship interaction protocols without the consideration of the B2B standards applicable in the implementation process. Achieving the independence between the B2B standards and interaction protocols is possible. The independence provides several of the benefits to the business marketing practice. The enterprises have the ability to carry out implementation programs of the interaction protocol with their networks with different partners using B2N standards of different versions. The communicative acts also enable the B2B standards joint functionality for the provision of advanced solutions to the B2B environments. This enables the marketing enterprise systems supporting the B2B relationships to facilitate the understanding of same interaction protocol independent of the technologies used in building them. Visit our online essay writing service to get professional writing help from academic experts who are hired to produce high-quality custom essays from scratch!

Monday, November 25, 2019

Business Process Management Challenges in Implementing Change Management in Employees

Business Process Management Challenges in Implementing Change Management in Employees Introduction Business process management is a management approach that aims at optimizing and synchronizing all management strategies to enhance the effectiveness and efficiency of business. Since organizations have numerous strategies that enable them to perform their businesses, business management process is an effective and efficient management approach that guarantees optimal performance.Advertising We will write a custom report sample on Business Process Management: Challenges in Implementing Change Management in Employees specifically for you for only $16.05 $11/page Learn More For a long period, many organizations have been grappling with challenges of enhancing product quality, satisfying customers, delivery of services and goods in time to markets as well as motivating employees to adopt and adapt changing business environments. However, emergence of business process management has enabled many organizations to cope with numerous challenges that th ey encounter in the process of enhancing their management strategies and performance of employees. Concerning strategies, which enhance organizational performance, management usually encounter numerous challenges because employees tend to resist changes. Bovey and Hede argue that employees undergo reaction process when they experience organizational change that involves four phases viz. â€Å"initial denial, resistance, gradual exploration and eventual commitment† (534). Thus, the management needs to understand resistance that employees exhibit when they experience organizational changes and develop effective strategies of counteracting it. Basing on business process management, this report examines challenges that organizations face when implementing organizational change management in employees. Exposition of Concepts Given that a business is a set of activities or processes that aim at achieving certain organizational objectives, business process management is an encompass ing approach of optimizing and synchronizing these activities to enhance the effectiveness and efficiency of an organization to adapt dynamics of the business world. Objective of business process management is to be certain that all strategies and duties that an organization employs in conducting its business perform optimally in various aspects. Due to diversity of aspects in which business process management is applicable in an organization, different types of frameworks do exist in contemporary markets. As employees are central components in an organization, application of business process management is critical in enhancing their performance. Thus, a framework that deals with employees exists and is applicable in most organizations. Aladwani asserts that enterprise resource planning is a framework that aids various aspects of the organization to share knowledge and data, improve management process and reduce costs (266). Application of suitable and effective framework is critica l in improving performance of an organization. Thus, business process management is essential in enhancing effectiveness and efficiency of various management factors and strategies.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Corporate world is constantly changing compelling organizations to adapt to new dynamics of business. To cope with myriad changes, organizations have adopted different strategies of change management. Change management involves systematic process of implementing technological advances, financial management and sharing of knowledge among organizational members. For organizations to survive and progress, they must adopt and adapt to changing dynamics of the business world. Conventionally, change management consists of processes, techniques, tools and actions for managing human resources to keep abreast with changing business environment. Aladwani argues th at, for management to cope with the challenge of workers’ resistance, it must employ framework of â€Å"knowledge formulation, strategy implementation and status evaluation† (269). Knowledge formulation involves identification of individuals’ attitudes, beliefs and interests relative to resistance. Strategy implementation entails setting up of strategies to convince and persuade employees to adopt them, while status evaluation consists of assessing and monitoring change management to ensure achievement of desired outcomes. Overall, change management is a continuous update and monitoring of organizational changes to ensure that they are in tandem with business dynamics. However, numerous challenges exist in implementing change management in employees. Resistance to Change Resistance to change is a considerable challenge that management face in implementing change management. Usually, management perceive resistance to change from the perspective of organizational members who decline to adopt organizational change. Resistance to change is a normal process that employees experience when they encounter new challenges in the course of their duties. According to Bovey and Hede, resistance occurs in employees because they tend to maintain complacent status rather than adapt to organizational changes (534). Although individual employees differ in their resistance and ability to adapt organization change, their collective resistance poses significant change to management in implementing various strategies. While some employees undergo a process of change quickly, some employees stagnate, and thus pose significant resistance to organizational change. Concerning change management, resistance to change is a significant factor that is attributable to failure of change programs that management of many organizations implements. As the resistance of employees is a significant hindrance to effective change management, many organizations are grappling to all eviate resistance. Hence, implementation of change management is a rigorous and painstaking process that requires effective strategies of overcoming resistance of employees. Employees perceive organizational changes as a threat to professional norms they have adopted for many years. Normally, professional experiences make employees experts in their varied fields, but organizational changes take them to the drawing board where they need to begin learning new skills and the way of performing their duties. For instance, introduction of technology into organization compels many employees to acquire new skills and knowledge lest their services become irrelevant to their respective organizations.Advertising We will write a custom report sample on Business Process Management: Challenges in Implementing Change Management in Employees specifically for you for only $16.05 $11/page Learn More In this view, employees perceive organizational change as a threat to their professional development because it diminishes their importance to the organization. Given that the prime objective of employees to develop their careers, organizational changes that seem to threaten their careers face much resistance compared to the ones that promote their careers. Resistance to change emanate from individual, group and organizational factors. Organizational factors are threats that originate from unfavourable organizational changes in a structure that affect the normal functioning in an organization. According to Chew, Cheng, and Petrovic-Lazarevic, group factors affect social norms and cohesiveness among employees by disrupting organizational culture that is critical for effective adaptation of organizational change (59). Comparatively, individual factors consist of elements of personality such as attitudes, emotions and feelings about organizational changes. Thus, these factors impose significant threats to workers making them resist organizational changes becau se they change their careers. Resistance to change also emanate from fears of unknown. Employees naturally have fears of unknown changes in the organization because they panic when confronting challenges. Since organizational changes can be radical in that they compel employees to adopt new skills and adapt new working environment, they elicit fears of the unknown. When employees do not know essence and scope of organizational changes, they tend to develop fears of the unknown since they are unsure of how changes affect their careers, duties, knowledge and skills. Chew, Cheng, and Petrovic-Lazarevic explain that adaptation to change is mainly a personal issue as organizational change cause uncertainty, doubt and factor-fears among employees (59). Thus, for organizations to effect organizational change successfully, they must ensure that they dispel fears associated with change among employees. Therefore, fear of unknown that employees have regarding organizational change poses signi ficant resistance to implementation of change management. Change Creates Conflict Organizational change at times creates conflict in roles that employees hold in an organization. In the organizational environment, individuals perceive change from one perspective while departments perceive from another, thus also perception of their roles. Disparity in perception of organizational change creates a conflict among diverse roles. If the change causes individuals’ roles to contradict departmental roles, employees experience substantial difficulties in adopting new strategies due to organizational changes.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Since the conflict in roles among employees, managers and executives create conflict; it affects organizational performance and change management. According to Chew, Cheng, and Petrovic-Lazarevic, conflicts among employees and managers create resistance to change that impedes effective implementation of change management (63). A conflict in an organization is inevitable since numerous changes occur that requires employees to adopt new strategies that may contradict previous strategies. Thus, organizations should implement change management cautiously while ensuring that roles of employees, managers and executives do conflict and create unnecessary resistance to change. Implementation of change management also causes conflict in resources that are central to effective performance by employees. Employees usually share a great deal of resources in which organizational change disrupt or destabilize normal utilization. Disruption of normal utilization of resources triggers conflict among employees that act as an impediment in the implementation of organizational change. Bovey and Hede explain that although organization spend a huge amount of money in implementing organizational change, they do not consider diverse interests of employees, thus creating a conflict that leads to resentment among employees (535). In this case, poor allocation of resources due to biasness of management creates conflicts that affect implementation of change management. Therefore, it is vital for management to consider proper allocation of resources when implementing organizational change to realize optimal performance and alleviate occurrence of conflict among employees and managers. Differences in personalities reflect variation in values and interests that employees have regarding their responsibilities and organizational change. When organizations want to implement change management, they encounter challenges that emanate from conflicts that occur between organizational values and per sonal values. Given that employees tend to be conservative when adopting and applying new strategies, management normally experience a daunting task in changing personalities of employees to keep abreast with organizational changes that are critical for development. However, change management seems to focus more on organizational factors than human factors when implementing change, hence causing conflict between employees and organizational management. Aladwani advices that for organizations to implement changes effectively, they must consider involving employees in the process of change because they play a significant role in effecting required changes (270). In this case, management needs to effect organizational change by consulting and communicating widely with employees to ease any source of conflict that stem from variation in organizational and personal values and interests. Thus, management faces challenges when harmonizing organizational values with personal values when imp lementing organizational change. Dimensions of Change Organizations also face challenges when implementing change management due to organizational structure. Some organizations have stringent and bureaucratic structure that restricts employees from adopting and adapting organizational changes according to their own perceptions and convictions. Usually, these organizations rely on rules, policies and procedures that are extremely restrictive to allow employees to comply with organizational changes in their own pace. Thus, employees perceive these organizations as if they are imposing changes into their careers and prevent them from advancing according to their own interests. In contrast, some organizations are too liberal, for they lack proper rules, policies and procedures to guide employees to adopt and adapt organizational changes effectively. In these organizations, it is extremely hard to effect organizational changes because there are no structures and frameworks to enhance occ urrence of changes. Aladwani argues that organizations must have policies and legislations for them to convince and persuade employees to adopt and implement necessary changes in an organization (272). However, lack of appropriate policies and legislations as well as their stringent presence hampers effective change management in organizations. Thus, it is critical for organizations to ensure that they have appropriate and relevant policies and legislations to enhance participation of employees in effecting organizational change. Degree of organizational change is significant in determining challenges of implementing changes. While some changes are expansive and rigorous, others require minimal implementation that does not cause significant changes in an organization and among employee. Ideally, expansive and rigorous changes are hard to implement because employees find it hard to adopt and adapt. Moreover, comprehensive changes are exceedingly costly in terms of resources because t hey compel employees to acquire more information and tactics so that they can precisely adapt complex organizational changes. Since the degree of change determines the extent of learning among employees, comprehensive changes oblige employees to acquire more knowledge and skills as a way of coping with organizational changes. According to Bovey and Hede, significant organizational change causes anxiety among employees, which deters effective implementation of change management (545). Thus, significant organizational change poses enormous challenges in implementation of critical changes among employees. Moreover, nature of change reflects challenges of implementing change management. Since organizational change normally occurs at various levels of organization, they have different impacts on employees. Changes that occur at top management tend to have considerable impact on employees as compared to changes that occur at lower management levels. Thus, management struggles in harmonizi ng changes that occur at various levels within the organization. Additionally, implementation of change within an organization is a gradual process that requires patience and persistence of management to realize intended purpose of change. Chew, Cheng, and Petrovic-Lazarevic assert implementation of organizational change is a gradual process that needs progressive engagement of employees (60). Proper engagement of employees enhances their participation in implementation of organizational change. Thus, management experiences enormous challenges in trying to expedite change management to achieve required objectives within the shortest time possible. Conclusion Organizations encounter numerous challenges in the course of implementing their policies, legislations and procedures that aim at effecting a given change. To cope with these challenges of organizational change, organizations use strategies of business process management to implement change management effectively. Despite the av ailability of diverse strategies of effecting change, organizations usually experience a great deal of challenges that stem from employees such as resistance to change, occurrence of conflicts and complex dimensions of change. Basing on these challenges, it is evident that employees create a great deal of challenges that hinder organizations from making marked changes in their progress. Overall, these challenges pose significant threats to effective change management. Thus, management needs to consider involving employees as central players in implementation of change as a gradual process progress that is inherent to any organization. Aladwani, Adel. â€Å"Change Management Strategies for Successful ERP Implementation.†Ã‚  Business Process Management Journal 7.3 (2006): 266-275. Bovey, Wayne, and Andrew Hede. â€Å"Resistance to Organizational Change: the Role of Defence Mechanisms.† Journal of Managerial Psychology 16.7 (2001): 534-548. Chew, Mindy, Joseph Cheng and Sonja Petrovic-Lazarevic. â€Å"Managers’ Role in Implementing Organizational Change: Case of the Restaurant Industry in Melbourne.† Journal of Global Business and Technology 2.1 (2006): 58-67.

Thursday, November 21, 2019

Operations Management Case Essay Example | Topics and Well Written Essays - 1250 words

Operations Management Case - Essay Example Aggregate planning, a medium-range capacity planning system that typically covers a time horizon of anywhere from 3 to 18 months, has as its goal that of achieving a production plan that effectively utilizes the firm’s resources to satisfy expected demand. Decisions have to be made on output rates, employment and inventory levels and changes, back orders, and subcontracting, in effect determining not only the output levels planned but also the appropriate resource input mix to be used. Before we tackle the solution, we summarize the basic assumptions for our calculations. Basic Assumptions Table 1 contains the 12-month demand forecast and our assumptions. Aside from the total output, number of workers, cost assumptions, and labor force parameters given in the problem, we would like to highlight some key assumptions not indicated in the statement of the problem but which have an effect on the solution. The first is the capacity cushion, which determines how much excess inventory we would like to have at the end of the month to act as a buffer for potential variations in demand. A high cushion level would entail inventory costs, while a low level would entail stock-out costs that were neither given. The given initial inventory level of 200 units is equivalent to 22 percent of maximum demand (900 units in October) and 29 percent of year-end demand (600 units). Working on the principles of zero stock-outs and the maximization of resources, we calculated the standard deviation in monthly demand as plus or minus 20 percent and made the convenient assumption to keep the capacity cushion at this level of production capacity or roughly 100 units per month.

Wednesday, November 20, 2019

Being Assertive instead of Being Aggressive at Work, Being Proactive Essay - 1

Being Assertive instead of Being Aggressive at Work, Being Proactive in Your Career, How to Build Successful Work Teams, andNew Technology in the Workplace - Essay Example When going for a career start, it is important to understand the present day workplace. The 21st century workplace is diverse in terms of culture, race and gender; it is global. Employees must be prepared to deal with people from any part of the world confidently and without bias. One should enter a career with a positive attitude towards team work. Organizational success depends on team work and communication is the key to a good team spirit development. Career development in the world of new technology depends on one’s ability to adapt to the new technology. All individuals preparing for any career should keep the above points in mind in order to become successful professionals. Work place environment greatly affects the well being, health, productivity and motivation to work in the employees (Jones, 2001). Work place environment is a factor of the behavior of employees therefore it is up to them to maintain a healthy workplace environment. According to (Scott & Judge, 2006), the personal traits and the affective states experiences by people in organizational setups determine the quality of work place atmosphere. To play their role in contributing towards a healthy work place environment, one should enter any career after being well prepared to deal with the challenges of a work place (Jones. 2001). Self mastery, conquering control on persona; traits via personal and independent victories of self control is basic and very important if one wants to reach the level of interdependence in an organization (Covey, 1989). Assertiveness is the key to respectful survival in work place (Weinberg & Cooper, 2007). Assertiveness is sometimes confused with aggressiveness. In reality, there is a difference between the two. Aggression refers to pushing others to get what one wants, while assertiveness means to stand up for one’s rights, still respecting the

Monday, November 18, 2019

Marketing Exam Question (Marketing Mix) Essay Example | Topics and Well Written Essays - 750 words

Marketing Exam Question (Marketing Mix) - Essay Example So what is market segmentation? Consumers differ and they â€Å"place differing degrees of importance on the individual elements of the marketing mix.† â€Å"They differ not only in the price they will pay, but in a wide range of benefits they expect from the product and its method of delivery. As a result, the market becomes split into several segments.† (SBDC, 2005) SBDC, (2005) argued that understanding the concept of segmentation is central to marketing because each different customer group will require a different marketing mix strategy and that each segment will offer differing growth and profit opportunities so the trick is to deliver the best offer to the best segment. Assuming now that there is market segmentation, it is now easier to answer the question how to have differential advantage. SBDC, 2005 advised saying: â€Å"Differential advantage can be obtained via almost any element of the marketing mix - creating a superior product, more attractive designs, better service, more effective distribution, better advertising and so on. These are actually the three P’s which include the Product (creating a superior product, more attractive designs, better service), Place (more effective distribution) and Promotion (better advertising) The key is to understand that the advantage must be based on research into what customers really value and that the differential is developed after due consideration of competitive strategies and offers. (Emphasis supplied). With the three P’s strategically combined, the fourth P, which is Price, would be easier to handle. In fact the purpose of the differential advantage is to avoid mere competition based on price, because the customers look at the four P’s as four C’s. These four C’s include cost to the customer for price, convenience for place, communication for promotion and customer needs and wants for product. It must be noted that knowing what