...The main cause that makes a company have to make changes is the external environment. It usually forces organizations to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers bring a series of change to the overall structure. Changing anyone of the 12 “pillars” will influence the adjoining ones. But, changing the entire structure may or may not affect the entire system. These changes are influenced by the motivation of the individuals. They will impact the change to the entire organization. They all interact with each driver on the model. The Burke-Litwin Model has these basic parts that make up an overall change for a company. Change effect one part and then affect the overall performance of the model. 1. External environment: The key external cause on the organization must be identified and clearly established. 2. Mission and Strategy: The overall “vision” should be seen through the eyes of the employee. 3. Leadership: Leadership should be understood. 4. Organizational Culture: This should understand implied rules, regulations, customs, principles, and values. 5. Structure: The function based structure should be understood, such as responsibility, authority, communication, decision, making, and control structure. 6. Systems: This includes all the policies and procedures. 7. Management Practices: How the management accepts and conforms to the overall concept of the organizations strategy. ...
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...CEO, David Barger was now facing with JetBlue’s key issue that he should reconsider the distribution of E190 and A320, and building long-term managing strategies for sustainable development. Besides, with a big movement of launching E190 in 2005, some small but critical problems loomed: Compensation of pilots, satisfaction of customers and employees, challenges for staff to adopt unexpected changes, complexity resulting from the integration of E190 and A320. Without experience of operating two types of aircrafts and combining them, as well as without sufficient capital, large scale of purchases of the new aircraft would definitely lead to operational failure. It was the key principle for JetBlue, which made a difference from other airline companies, that fight cancellations should be avoided at all costs. Unfortunately, this principle was challenged by the unexpected bad weather on the Valentine’s Day of 2007. The potential issue of operating system finally gave rise to serious flight cancellations, which reminded JetBlue of fixing its...
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...Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of competitive advantage and disadvantage. 2. Develop business level strategies by defining the type of advantage sought, scope of operations and activities required to deliver the chosen strategy. Assess the likely sustainability of firm strategies and competitive positions. 3. Discriminate among the types of data that general managers need to evaluate alternative scenarios....
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...Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of competitive advantage and disadvantage. 2. Develop business level strategies by defining the type of advantage sought, scope of operations and activities required to deliver the chosen strategy. Assess the likely sustainability of firm strategies and competitive positions. 3. Discriminate among the types of data that general managers need to evaluate alternative scenarios....
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...that CRM is managed by the IT group, 31% by sales, and only 9% by marketing. Yet CRM is, ultimately, a tool for gauging customer needs and behaviors—the new customer department’s central role. It makes little sense for the very data required to execute a customer-cultivation strategy to be collected and analyzed outside the customer department. Of course, bringing CRM into the customer department means bringing IT and analytic skills in as well. Market research. The emphasis of market research changes in a customer-centric company. First, the internal users of market research extend beyond the marketing department to all areas of the organization that touch customers—including fi nance (the source of customer payment options) and distribution (the source of delivery timing and service). Second, the scope of analysis shifts from an aggregate view to an individual view of customer activities and value. Third, market research shifts its attention to acquiring the customer input that will drive improvements in customer-focused metrics such as CLV and customer equity. Research and development. When a product is more about clever engineering than customer needs, sales can suff er. For example, engineers like to pack lots of features into products, but we know that customers can suff er from feature fatigue, which hurts future sales. To make sure that product decisions refl ect realworld needs, the customer must be brought into the design process. Integrating...
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...SPOTLIGHT ON REINVENTION Spotlight BELOW Michel de Broin, Encircling, 2006 Asphalt, yellow paint, road sign, 14.8 x 21.9 m Scape Biennale, Christchurch, New Zealand Rethinking Ma Because companies can now interact directly with customers, they must radically reorganize to put cultivating relationships ahead of building brands. by Roland T. Rust, Christine Moorman, and Gaurav Bhalla 94 Harvard Business Review January–February 2010 HBR.ORG Roland T. Rust (rrust@ rhsmith.umd.edu) is a Distinguished University Professor and the David Bruce Smith Chair in Marketing at the University of Maryland’s Robert H. Smith School of Business. Christine Moorman (moorman@duke.edu) is the T. Austin Finch, Sr., Professor of Business Administration at Duke University’s Fuqua School of Business in Durham, North Carolina. Gaurav Bhalla (gaurav. bhalla@knowledgekinetics. com) is the president of Knowledge Kinetics, based in Reston, Virginia. rketing SPOTLIGHT ON REINVENTION I Building Relationships Product-Manager Driven Many companies still depend on product managers and one-way mass marketing to push a product to many customers. magine a brand manager sitting in his office developing a marketing strategy for his company’s new sports drink. He identifies which broad market segments to target, sets prices and promotions, and plans mass media communications. The brand’s performance will be measured by aggregate sales and profitability, and his pay and future prospects...
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...they must radically reorganize to put cultivating relationships ahead of building brands. Rethinking Marketing by Roland T. Rust, Christine Moorman, and Gaurav Bhalla • Included with this full-text Harvard Business Review article: 1 Article Summary Idea in Brief—the core idea 2 Rethinking Marketing Compliments of: Reprint R1001F SPOTLIGHT ON REINVENTION Rethinking Marketing Idea in Brief Companies have powerful technologies for understanding and interacting with customers, yet most still depend on mass media marketing to drive impersonal transactions. To compete, companies must shift from pushing individual products to building long-term customer relationships. The marketing department must be reinvented as a “customer department” that replaces the CMO with a chief customer officer, makes product and brand managers subservient to customer managers, and oversees customer-focused functions including R&D, customer service, market research, and CRM. These changes shift the firm’s focus from product profitability to customer profitability, as measured by metrics such as customer lifetime value and customer equity. This organizational transformation will uproot entrenched interests and so must be driven from the top. COPYRIGHT © 2009 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. page 1 This article is made available to you with compliments of VeraCentra. Further posting, copying, or distributing is copyright infringement. To order...
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...HIGH-LEVEL EMPLOYEE INVOLVEMENT AT DELTA AIR LINES Bruce E. Kaufman As described in this unique case study, Delta Air Lines operates one of the most advanced, highlevel employee involvement programs in the nation. Based on in-depth field study and personal interviews, the development, structure, operation, and business goals of the program are described. The study then summarizes the business benefits and costs of this type of high-level employee involvement program and concludes with 12 “lessons learned.” © 2003 Wiley Periodicals, Inc. Employee involvement is not a new idea, as witnessed by William Basset’s 1919 book When the Workmen Help You Manage. Only in the last two decades, however, has employee involvement (EI) taken off, particularly among “high-performance” organizations. Although EI programs are widespread, considerable diversity exists in their breadth, depth, and form. In a study of 313 large companies with EI programs, Lawler, Albers, and Ledford (1992) found that six out of ten had only “low-level” EI programs—based on sharing of information, rewards, power, and training with employees—or programs that relied principally on financial incentives, while only 7% of companies had “high-level” programs. A more recent edition of their study (Lawler, Mohrman, & Benson, 2001) does not provide comparable data, but the relative rarity of high-level EI programs is indicated by the fact that in 1999 only 7% of companies had some form of participation group other than a...
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...Jeanne W. Ross and Peter Weill Reprint R0211F Top executives often feel uncomfortable making hard choices about information technology. But when they abdicate responsibility, they set their companies up for wasted investments and missed opportunities. Six IT Decisions Your IT People Shouldn’t Make by Jeanne W. Ross and Peter Weill COPYRIGHT © 2002 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. For several years now, we have observed the frustration—sometimes even exasperation— that many business executives feel toward information technology and their IT departments. Our center runs a seminar called “IT for the Non-IT Executive,” and the refrain among the more than 1,000 senior managers who have taken the course runs something like this: “What can I do? I don’t understand IT well enough to manage it in detail. And my IT people—although they work hard—don’t seem to understand the very real business problems I face.” Perhaps the complaint we hear most frequently from the executives—most of them CEOs, COOs, CFOs, or other high-ranking officers—is that they haven’t realized much business value from the high-priced technology they have installed. Meanwhile, the list of seemingly necessary IT capabilities continues to grow, and IT spending continues to consume an increasing percentage of their budgets. Where’s the payback? Indeed, our research into IT management practices at hundreds of companies around the world has shown that most organizations...
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...Case Study: Economic Analysis of Gogo’s In-flight Wi-Fi November 2, 2015 Introduction Gogo pioneered and now dominates the in-flight Wi-Fi business, which allows passengers to access the Internet during their flights. In recent years, consumers have grown from anticipation to dislike towards Gogo’s services due to its steady increase in fees and rapid decrease in speed. Through a dynamic pricing strategy they hope to relieve congestion which indeed have effect, but will not last in the fierce competition of an oligopoly market structure. Unlike its monopolistic position before, Gogo now faces at least three companies—ViaSat, Global Eagle Entertainment, and Panasonic— swiftly eroding its market share with cheaper and faster in-flight Wi-Fi services using satellites instead of antennas. Gogo’s own next-generation technology 2Ku, to come online in 2016, uses satellites that hopefully would achieve better prices with higher speed. To analyze the market for in-flight Wi-Fi and the pricing strategies of Gogo, our paper will discuss five core areas: The price elasticity of demand for Gogo’s service, and how it varies with price levels The market structure Gogo is operating in Its dynamic pricing How the demand for in-flight Wi-Fi has changed over time, technological changes over the past 15-20 years that has affected demand Technological factors that affect supply, how congestion affects pricing and our recommendation Price Elasticity of Demand...
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...1 Comparing internally consistent HR at the Airport Express Train (AET), Oslo, Norway and Southwest Airlines (SA), Dallas, U.S.A. Bård Kuvaas and Anders Dysvik, BI Norwegian School of Management This case study provides a comparison between internally consistent HR in two very different organizations with respect to size (small versus large), age (new versus old), ownership (an independent company reporting to the Norwegian Trading and Business Commerce versus listed), competitive strategy (cost leadership and customer service versus differentiation and customer service), and national context and labor laws (Norway versus the U.S.A.). The main similarity, besides that they both operate in the travel industry, is that they try to achieve competitive advantage through people by implementing internally consistent HR. Internally consistent HR is the degree to which the various HR practices are internally consistent, complementary, and reinforcing each other. Historical background of the SA and AET Despite the severe economic collapse that hit the airline industry in 2009, Southwest Airlines (SA) still prevailed and managed to remain profitable. The results for 2009 marked SA’s 37th consecutive year of profitability. SA was established in 1971, with three Boeing 737 aircrafts. SA became a major airline in 1989 when it exceeded the billion-dollar revenue mark. Southwest is currently the United States’ most successful low-fare, high frequency, point-to-point carrier. SA operates 537...
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...Better Practices for Retaining Organizational Knowledge: Lessons from the Leading Edge David W. De Long and Thomas Davenport n 1998, after significantly downsizing for ten years, the Tennessee Valley Authority (TVA) realized that the median age of its 13,000 remaining employees was 48. Because most of its workers retired well before age 60, this meant that over the next ten years the TVA, the largest electrical utility in the United States, was bound to lose many of those it depended on to run its nuclear, coal-fired, and hydroelectric power plants efficiently and safely. Those employees, and the knowledge they embodied, would be hard to replace. Changing workforce demographics, marked by an aging labor force, more competitive recruiting, and faster turnover among younger employees, are creating unprecedented knowledge-retention problems in many industries, threatening to reduce the capacity for innovation, growth, and operational efficiency. A recent study of 26 firms conducted by the Accenture Institute for Strategic Change documented the danger lost knowledge poses for organizational performance in the global chemical industry.1 But, of course, operational and institutional amnesia imperil more than just the chemical industry. This article outlines a set of “better practices” that organizations currently are implementing to address these concerns. The practices shared here are not claimed to be “best in class,” because the challenges of knowledge ...
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...School of Management Coursework hand-in sheet Student name(s) | % | | % | Naomi Wai | 20% | Chukwudubem Joseph Onochie | 20% | Nevena Rakovska | 20% | Anish Rai | 20% | Warren Cannon | 20% | | | For group work – individual % contributions need to be stated only where they are not equal. Department (e.g. Management): School of Management | Programme and Year of Study: Accounting and Finance, Y3 | Name of lecturer: Dr. Sarah Park | Unit title and code (eg MN20010): MN30449 | Number of pages in assignment:17Word count: 2845 | Declaration I/we certify that I/we have read and understood the entry in the relevant Student Handbook for the School of Management on Cheating and Plagiarism and that all material in this assignment is my/our own work, except where I/we have indicated with appropriate references. I/we agree that, in line with Regulation 15.3(e), if requested I/we will submit an electronic copy of this work for submission to a Plagiarism Detection Service for quality assurance purposes. I/we also confirm that the percentage allocation of work is as shown above. Student Signature(s) | | | | | | | If assessment is group based, all members of the group must sign this form When to hand in You should aim to hand your work in before the deadline given by your lecturer/ tutor. The University guidelines on penalties...
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...Cost-effective service excellence: lessons from Singapore Airlines Singapore Airlines is well known as a paragon of in-flight service. It is also a remarkably efficient and profitable airline and has been for decades. Loizos Heracleous, Jochen Wirtz and Robert Johnston explain how it combines service excellence with cost effectiveness. Singapore Airlines (SIA) has achieved the Holy Grail of strategic success: sustainable competitive advantage. It has consistently outperformed its competitors throughout its 30-year history. In addition, it has always achieved substantial returns in an industry plagued by intermittent periods of disastrous under-performance (see Table 1). Cost-effective service excellence: lessons from Singapore Airlines SIA has done this by managing to navigate skilfully between poles that most companies think of as distinct – delivering service excellence in a costeffective way. SIA’s awards list is long and distinguished. In 2002 alone it won no less than 67 international awards and honours including “best airline” and “most admired airline” in the world in Fortune’s Global Most Admired Companies survey. Spring 2004 q Volume 15 Issue 1 Business Strategy Review 33 Since Michael Porter’s influential suggestion that differentiation and cost leadership are mutually exclusive strategies and that an organisation must ultimately choose where its competitive advantage will lie, there has been fierce debate about whether a combined strategy can be achieved...
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...degenerates into a price war. Creating low-price appeal is often the goal, hut the result of one retaliatory price slashing after another is often a precipitous decline in industry profits. Look at the airline price wars of r992. When American Airlines, Northwest Airlines, and other U.S. carriers went toe-to-toe in matching and exceeding one another's reduced fares, the result was record volumes of air travel-and record losses. Some estimates suggest that the overall losses suffered hy the industry that year exceed the combined profits for the entire industry from its inception. Price wars can create economically devastating and psychologically dehilitating situations that take an extraordinary toll on an individual, a com- HARVARD BUSINESS REVIEW March-April 2000 107 How to Fight a Price War pany, and industry profitability. No matter who wins, the comhatants all seem to end up worse off than before they joined the battle. And yet, price wars are becoming increasingly common and uncommonly fierce. Consider the following two examples: • In July 1999, Sprint announced a nighttime longdistance rate of 5 cents per minute. In August 1999, MCI matched Sprint's off-peak rate. Later that month, ATikT acknowledged that revenue from its consumer long-distance business was falling, and the company cut its long-distance rates to 7 cents per minute all day, everyday, for a...
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