6 Summary The aim of the first section was to introduce you to the concept of the market-led approach to marketing (also referred to as pan-company marketing or marketing orientation) and to differentiate it from ‘marketing department marketing’. I used examples and case studies to make you think about the applicability of this concept to commercial (for-profit) and non-profit organisations, and gave you activities to help you apply it in your own organisation. Five of the learning outco
5.5 Relationships in your organisation In this section I have introduced you to case studies and reading that should have helped you understand how market orientation affects an organisation's performance. I have also asked you to look at your own organisation and make judgements regarding its performance. Near the beginning of this session I asked you to consider some questions from Drucker (1992). I have added a few more questions to his list and ask you now to try to answer these questions for your organisation. You probably do
5.4 Activity 8 The M & S case study illustrates the importance of managing relationships. Having read it, try to answer the following questions. On which value discipline has the company 5.3 Wace Burgess: the importance of managing relationships The case study below illustrates the importance of managing relationships. Read the case study, then answer the questions that follow it. Wace Burgess is a member of the Wace Group, a company in the pre-press 5.2 An integrated perspective on relationship management: the six markets model Christopher et al. (1991) developed a complementary model to Piercy's. Based on the idea of stakeholders, the ‘six market model’ of relationship management works equally well in either a commercial or non-profit setting. I have combined the Piercy and Christopher et al. models in the following table to illustrate some of the critical issues in the key relationships that organisations need to address. 5.1 Managing relationships You should now understand that markets and the customers within them are the responsibility of all managers within an organisation. An organisation needs to identify what will create extra value for its customers, and design a value-driven operating system that will concentrate all its efforts on producing it. This process of going to market involves the organisation in managing the relationships between itself and its customers and competitors, and also in the co-ordination of the organisati 4.5 Is M&S market led? Allow half an hour. Read Case study 1 and then use the evidence there to answer the following questions. Do you think that M&S is market led? Whi 4.4 Marks and Spencer: a case study The following case study examines a company coming to terms with market orientation. Marks & Spencer is the latest UK retailer to turn to the web to revive its fortunes. In the week that the company announced a halving in its p 4.3.3 Customer intimacy [Customer-intimate companies] focus on delivering not what the market wants but what specific customers want. [They… ] do not pursue one-time transactions; they cultivate relationships. They specialize in satisfying unique needs, which often only they, by virtue of their close relationship with – and intimate knowledge of – their customer, recognize. The proposition to the customer is: we have the best solutio 4.3.2 Operational excellence Companies that pursue this [value discipline] are not primarily product or service innovators, nor do they cultivate a deep one-to-one relationship with their customers. Instead, operationally excellent companies provide middle-of-the-market products at the best price with the least inconvenience. Their proposition to customers is simple: low price and hassle-free service. (Treacy and Wiersema, 1996) 4.3.1 Product leadership Its practitioners concentrate on offering products that push performance boundaries. Their proposition to customers is an offer of the best product, period. Moreover, product leaders don't build their positions with just one innovation; they continue to innovate year after year, product cycle after product cycle. (Treacy and Wiersema, 1996) For product leaders, competition is not about pric 4.3 Dominating the market
Value disciplines refer to the ways in which organisations can combine value-driven operating models and propositions to dominate their markets. In their discussion of market domination, T&W identify three distinct value disciplines, each of which will deliver a different kind of customer value. They recommend that an organisation chooses one of the value disciplines on which to make its reputation but stress that these value disciplines are not mutually exclusive. The choic 2.2 Symbols within business How have academics and managers attempted to diagnose these largely hidden aspects of business? One well-known example is provided by Trice and Beyer (1984), who concentrated on the idea of there being symbols within a business. They divided these into, first, high-level symbols, which are the more obvious ones such as company buildings and logos, and, second, low-level symbols. They suggested four categories of low-level symbols: practices, communications, physical forms and a common languag 2.1 Culture as socialisation The cultural perspective has become popular in business studies because it offers a way of explaining performance and understanding difference. It is only one way of analysing business, but it is an interesting one as it focuses particularly on the insider point of view, or on what it is ‘really’ like to work in an organisation. There have been many definitions of organisational culture. One definition that is often cited is: Activity 6: Hofstede's four dimensions of culture 1.1 Why Glasgow? Glasgow fulfilled our aims and was also an interesting case study having, arguably, been the most successful among British cities in developing/manufacturing a new identity in the ‘post-industrial’ era. Glasgow illustrates: (a) power relations, reflected in: constructed images – ‘Glasgow's miles better’ was a deliberate campaign to improve the image of Glasgow. contested ima Next steps Next steps After completing this unit you may wish to study another OpenLearn Study Unit or find out more about this topic. Here are some suggestions: 7.1 Evidence required This Part is about showing you can develop a strategy for using and improving your number skills, monitor your progress, and evaluate your overall performance and strategy. The evidence you present must show what you have done as you worked through the processes of planning strategically, monitoring, evaluating and presenting your work. Part A must relate directly to the work you have selected for Part B. You must present evidence to show you can: 6 What you should present This assessment unit has two parts. Part A requires you to plan, monitor, evaluate and reflect upon your skills, and present evidence of that process. Part B requires you to select concise examples of your work that demonstrate what you have done to improve and apply your skills. Together the two parts form a portfolio of your achievements. You can use the guidance, Bookmarks and Skills Sheets included in the OpenLearn unit U529_1 Key skills – making a difference to help you
Activity 8
Case study: Wace Burgess
Background
Activity 7
Case study 1 M&S goes online to reverse crisis
We know that culture guides the way people behave in society as a whole. But culture also plays a key role in organisations, which have their own unique set of values, beliefs and ways of doing business. This unit explores the concepts of national and organisational culture and the factors that influence both.
Information and communication technologies (ICTs) systems now dominate our everyday lives. This unit will explain what constitutes such a system and how ICT systems work. You will also look at how ICT systems convey, store and manipulate data, and how they process data. Finally you will learn how these systems are used.
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