Organisational Theory - 230255 Words

. Organization Theory Challenges and Perspectives John McAuley, Joanne Duberley and Phil Johnson . This book is, to my knowledge, the most comprehensive and reliable guide to organisational theory currently available. What is needed is a text that will give a good idea of the breadth and complexity of this important subject, and this is precisely what McAuley, Duberley and Johnson have provided. They have done some sterling service in bringing together the very diverse strands of work that today qualify as constituting the subject of organisational theory. Whilst their writing is accessible and engaging, their approach is scholarly and serious. It is so easy for students (and indeed others who should know better) to trivialize†¦show more content†¦This requires that they have a deeper than superficial understanding of management and organization issues. McAuley et al. helps student and managers understand organizational performance without having to go through extensive reading. It deepens their understanding of issues with which they are confronted in practice, by puttin g them into a larger context. This book really helps students and managers to become wiser. Professor Renà © Tissen, Nyenrode Business University, The Netherlands This book will appeal to the student who seeks a thorough and critical understanding of organization theory. It is both rigorous and accessible, clearly and unashamedly pitched for readers who wish to engage with theoretical issues whilst also maintaining a practical focus on why organization theory matters. I felt in good hands here, confident that I was being offered a deeply informed, reliable and intelligently constructed account. The opening chapter carefully and helpfully explains terms, including ‘theory’ and ‘epistemology’ that can form an unexplored bedrock to texts in the field. It then offers thoughtful, scholarly and well-illustrated discussions of prominent theoretical perspective, including managerialism and postmodernity, supported by specified learning outcomes and guides to furth er reading. Dr Paul Tosey, University of Surrey, UK The field of organization theory is extremely fragmented and there is no agreement concerning the underlyingShow MoreRelatedA Review On Organisational Theories1677 Words   |  7 PagesBUS 5113 - Assignment Unit 1 - A review of organisational theories A review of organisational theories Craig Morley University of the People A review of organisational theories 1 In Chapter 2 of the Organizational Theory text we reviewed four theoretical contributions which are central to the understanding of today s Organizations. Offer a brief analysis of all four theoretical concepts and then pick the one you the feel is the most influential from both historical and managerial perspectives. ExplainRead MoreThe Theories Of Organisational Management1164 Words   |  5 PagesOrganisational management is the art in which those with authority organise and control re Organisational management is the art in which those with authority organise and control resources in a particular so that they can achieve a predefined goal. Organisational management should give a sense of direction to their workers, so that everyone is aware of their roles and responsibilities. There are number of theorist who have taken up a central position regarding the discussion of organisational managementRead MoreOrganisational Behavioural Theories Essay1425 Words   |  6 Pages Organisational Behavioural Theories Organisational theory is the idea and principle about how the work could be done by investigating through different perceptive. 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In ontology, assumption for modernist takes an objectivistRead MoreOrganisational Behaviour Goal Setting Theory2552 Words   |  11 Pagesbehaviors of their employees, goal setting has been an essential item in every firm. Other than identifying the target and achievement of the company, goal setting is also used to motivate employers, as well as employees to succeed. Goal-setting Theory and Work Motivation What is goal-setting? Goal-setting is used to motivate both employers and employees. Other than that, it is an essential tool to clarify and to identify the roles and perception of the organization by the implementation of performanceRead MoreOrganisational Behaviour Goal Setting Theory2563 Words   |  11 Pagesbehaviors of their employees, goal setting has been an essential item in every firm. Other than identifying the target and achievement of the company, goal setting is also used to motivate employers, as well as employees to succeed. Goal-setting Theory and Work Motivation What is goal-setting? Goal-setting is used to motivate both employers and employees. Other than that, it is an essential tool to clarify and to identify the roles and perception of the organization by the implementation of performanceRead MoreThe Organizational Change Using Theories Of Organisational Change1642 Words   |  7 PagesAndriopoulos, 2014). Organizations are tested to push into new projects and advance their performances. These days, maintainable success relies on upon managing change. As organisations, it is the basic culture - the construction itself, which means organisational arrangement for decision making, responsibility, management and distribution of power, and how the organisation administrates, reacts to and related to its external environment (Tushman Romanelli, 1985). However, change is not commonly an issueRead MoreA Case Study in Organisational Change Implication for Theory8390 Words   |  34 PagesA case study in organisational change: implications for theory Lindsay Nelson Introduction Organisation theory has developed through major epochs of classical, human relations and contingency approaches, all of which have contributed to the accumulation of knowledge about implementing change. The legacy of these approaches has been to regard organisational change as something of an aberration or a departure from the more usual static position of organisations. Hence, for example, Lewin’ s (1951)Read MoreOrganisational Behaviour1542 Words   |  7 Pagesexperiments, which is one of the most influential theories in the subject of organisational behaviours and is analysed by Elton Mayo. The term ‘’Hawthorne Effect’’ has come to mean any short term increase in productivity. For instance, people will work more efficient when they are being watched. Another main feature of this approach is Neo-Human Relations. This concept includes three theories. The first theory is Maslow’s Need Hierarchy Theory, which comprised of five human beings needs. WhenRead MoreExamining Different Approaches to Management and Theories of Organisation and Evaluating How Organisational Structure and Culture Contribute to Business Success2317 Words   |  10 Pagesapproaches to management and theories of organisation. • Evaluate how organisational structure and culture contribute to business success. To do this I need to answer the following questions in the form of a business report: • Identify the organisations approach to management, supported with examples. • Identify the type of structure and provide an overall organisational chart • Identify the organisations management style and give examples • Highlight any variances between theory and practice in Qs 1

Zappos Case Study Free Essays

Case Description: If you like shoes and shop online, you probably have heard of Zappos. com. Nick Swinmurn was inspired to found the firm after a frustrating shopping excursion in San Francisco where he failed to find a properly fitting pair of shoes in the right size, style and color. We will write a custom essay sample on Zappos Case Study or any similar topic only for you Order Now Swinmurn translated his unpleasant shopping experience into new business expressly designed to meet the demanding needs of serious shoppers. As a result of his entrepreneurial zeal and his shrewd exploitation of the tools of e-commerce, Zappos grew from its start in 1999 to over $1 billion in gross annual sales by 2008, and was such a success that Amazon. om decided to acquired the firm for $ 1. 2 billion in 2009. In 1999, the U. S. shoes industry was estimated to be a $40 billion market. As of that date the shoes industry was heavily dependent on direct retail channels such as established chain stores. It is also noteworthy that approximately 1 in 3 retail sales were lost due to out of stock issues, including: inventory limitations, constrains on the number of brands sold in a given location, the number of sizes and styles carried in each store, and so forth. Like its now parent company Amazon had done with books, Zappos overcame these limitations through the stocking of a vast inventory of all makes, styles, colors, and sizes, displayed and sold through their e-commerce platform. From Idea to Business Venture In 1999, there was no web site that had a large enough scope of shoes online. To his surprise, Swinmurn found that there was no major online retailer who focused primarily on selling shoes. Knowing little about shoe retailing, he decided to test the idea of an online shoe retailing web site by approaching brick and mortar shoe retailers close to his home and he asked for permission to photograph their shoes. He posted his pictures to a modest eCommerce Web site. To fulfill orders that were placed through his Web site, Swinmurn would physically go to the store that carried the product buy the pair of shoes and ship it to the customer. This prototype of an eCommerce shoe business provided Swinmurn with the proof of concept he needed to build a real online business. Soon, he signed a collaborative relationship with three major shoe distributors, whereby they would drop ship shoes to customers who ordered them off Swinmurn’s Web site. Zappos. com grew out of this initial set of activities – a new eCommerce giant was born. As Zappos rapidly grew, order fulfillment became a challenge. The firm could not always guarantee the timeliness of supplier drop shipments to individual customers. To meet the expectations of its online retail clientele, Zappos began to open its own warehouse and fulfillment centers, employing approximately 1,600 workers. By 2004, these centers carried in excess of 3 million shoes, handbags, and other clothing items and accessories, drawing on over 1,100 different brands. As a result, Zappos. com offered the best selection of shoes available anywhere online. Customer Service While the original idea behind Zappos was to create a web site that offered a huge selection of shoes, the founder also believed that to compete in the eCommerce marketplace, the firm must provide the â€Å"best service† as well as a vast product mix. Therefore, like Amazon, Zappos’ fulfillment focused on fast and accurate order processing and speedy delivery to the customer. The firm offered free deliveries and returns as well as a guaranteed 4-day delivery window and a 365-day return guarantee. Furthermore, Zappos allowed its fulfillment center personnel broad latitude in addressing customer needs and complaints. The focus was on customer satisfaction and hence there were no call center scripts, time limits on calls, or predefined responses to customer issues. Every employee was given four-weeks of training in the company’s business strategy, culture, and customers focus. New employees were paid their full salary during this training period. Use of web-based Information Technology Zappos embraced Twitter as a valuable tool for building company culture. From its beginning, everyone in the entire organization was expected to use Twitter for communications within the company. When the CEO saw that it helped people connect at a more personal level, he began to encourage everyone to use Twitter to create a more collaborative corporate culture. However, Zappos also realized social media’s value in building an interactive customer community – deemed â€Å"Zapponians. Customers could send a tweet to Zappos from most of the web pages on firm’s Web site and Zappos directly interfaces with Twitter servers in order to monitor and track Zappos-related conversations (including setting up a separate website called â€Å"Zappos Conversations†). The employees also used blogs to interact with customers. Of course, not all interactions were positive, but the overall result includes 1,200 social media â€Å"con versations† with customers per month, 600 positive monthly fan tweets, and over 2. 6 million Twitter followers. As its business grew, the firm opened more web sites, including Couture. zappos. com, Outdoor. zappos. com, Rideshop. zappos. com, Running. zappos. com, Blogs. zappos. com, and Deliveringhappiness. com. [Note: Students should visit at least one Zappos Web site and assess its quality in terms of content, design, and functionality. ] Worker Retention In most retailing companies, employee turnover was generally high. Zappos had a unique way of dealing with the problem. New employees went through an intensive four-week training program, immersing them in the company’s culture, strategy, and processes. After a week or so into this training program, the firm proposed what was known at Zappos as â€Å"The Offer† to its new employees. The firm offered to pay its newest employees money if they chose to quit at that point in their tenure with the firm. The offer went something similar to this: â€Å"If you quit today, we will pay you for the amount of time you’ve worked, plus we will offer you a $ 3,000 bonus. † Zappos actually offered an incentive for its employees to quit! But of course the objective here was to ensure that only those committed to the success of Zappos stayed with the firm. Culture Zappos’ employees live by a set of core values. First among these was that the employees were encouraged to create a fun atmosphere at work. For example, the staff could dress in funny costumes. They could bring their pets to work and organize entertaining events during office hours. All these activities were intended to maintain a creative and open atmosphere in the work place, and a sense of â€Å"coolness. † For his part, Swinmurn was very much part of this fun culture, communicating with the company via blogs and Twitter. Overall Zappos’ corporate culture celebrated and embraced diversity and each worker’s individuality. Even with all the fun, the firm achieved considerable business success. [pic] Tony Hsieh, chief executive of Zappos. Photograph: Zappos Twitter account Case Questions: 1. What is the business model (re: how do they make money, what is their value proposition) for Zappos and what are three critical success factors for the firm? 2. List and describe the application software supporting the respective business process and the IT infrastructure enabling the application software. Business Process |Application Software |IT Infrastructure | |Order processing | | | |Supply chain logistics and warehousing | | | |Customer servicing | | | |Human resource management | | | |Financial management | | | 3. Describe the role the Zappos’ Web site and related services support its customer intimacy and operational excellence business objectives. Your answer should address the web sites design (layout, functionality, and content). 4. Describe the reasons it made sense for Amazon to acquire Zappos. Separately, describe the expertise (in terms of information systems and the use of IT) that Amazon brought to the deal that might improve Zappos’ eCommerce capabilities. How to cite Zappos Case Study, Free Case study samples Zappos Case Study Free Essays Before starting the analysis It should be taken In consideration that Zappers business is done thru e-commerce and it managed to introduce itself at the early sass’s when society had trust issues with making business online, which is the platform that Capos used to create trust and enhance it’s value proposition. 1. Acquisition Capos strategy for calculations Is to aim to prospect customers by: Word of Mouth – The best policy for quelled a client trust Is thru a good referral, this fact is exponentiation when applied to e-commerce Excellence in Customer Service – Achieved by an easy contact either thru the website and most importantly thru the call center, whose goal is not only help the client to complete their transaction and resolve any problem they may encounter, but to go beyond and create a connection with every customer. We will write a custom essay sample on Zappos Case Study or any similar topic only for you Order Now Actions speak louder than words. This is true for the WHOM policy on Capo’s which have made them famous since the company started, Capo’s understood in their early stages that the influence of â€Å"external effects† such as advertising or direct marketing, where not good enough tools to convince society to engage with the new rend of e-commerce. One of the mall problems with e-commerce Is trust (Specially In sass’s), Capos managed to break the trust barrier by making themselves available 24/7 and by implementing one of the most flexible return policies in the market. This two elements take away the risk of buying online, since the client has the chance to give back the product if they don’t like it or it doesn’t fits, because of these, the buying experience Is just as if you go buy the same product on a store. Once the risk has been stable, capos creates value by providing an easier shopping experience here customer can go thru an online catalogue and buy from home. Retention By excellence in customer service, clients are constantly in a delight stage bringing high satisfaction levels since they receive way more than what they would expect from any other company and even from capos Itself! Client service and returned policies have created several switching cost, which enable them to retain their clients and also very important they created strong imitation barriers against competitors Evaluation cost – once the customer has tried and trust Capo’s service, buying the risk, which makes it simpler Just to stay with capos. Benefit loss cost – This is not a â€Å"premium customer† benefit, but the generous return policy is given to every capos client, and it represents a big switching cost that might be stronger than strong price reductions, since the money being saved on buying the product, might not be worth nothing if they can’t trust that the product will be delivered in time, with the quality expected, with a return policy, etc.. Relational Switching Cost – The call center staff is instructed to create personal bonds with customers, even if it means to talk about non-purchasing themes for hours, everything so that clients have a personal relationship with the brand (not only one staff member, but all of them) Development All these combined had created both attitudinal and behavioral loyalty, which translates into positive whom and continued repurchase habits. No matter the cost, the repurchase habits on clients must be kept specially if we take in mind that capos might constantly increase their product assortment. Having this in mind, even when the cost of the returned policy and the call center seem high, the company is investing in the Customer Lifetime Value, as said in the article, once a customer gets acquainted with the shopping experience thru Capos their repurchase levels increase as Capos keeps growing their catalogue it’s assuring future purchases of their loyal customers. As seniority in clients grows so does their social value, which completes a cycle for new clients acquisitions by making WHOM a major drive for consumption in this industry, thus making the investment on loyalty measures completely worthwhile. . Returned Merchandise Policy Capos brand has been built from gained trust from clients, this is what makes it exceptional, since it has created customer experience of delight that comes not only from exceptional operational process but from the service provided, making client’s needs a first priority. As previously explained, the returned merchandise policy is a main component in the customer life cycle, not only is present in all stages, but its relevant for throughout acquisition, retention and development. As if it wasn’t enough, this policy is crucial to the product value proposition and its a main differentiation factor from all competitors, since there’s no other company that’s so flexible on the returned researched. Customer equity, might be affected â€Å"negatively’ by high acquisitions/retention costs, but rather than an expense, this should be counted as an investment (as Capos attract more customers induced by a social network effect. If Capos decided to cut down on returned policy, it would create a â€Å"dissatisfied effect† since as we had learned, the problem with delighting customers is that from now on this special treatment is now an expectation that if its not fulfill would bring to disappointment. Secondly, e-commerce is filled with competitors, big and small, you can find any kind f product assortment on the web and most importantly most of this companies try to attract their clients thru advertisement (mainly on web) and low prices. If Capos applied the same strategy, it might destroyed value, since it won’t be able to differentiate from the rest of competitors that rely on publicity instead of being a one of a kind company that you will discover thru a very good referral. The proposition of cutting down on returned merchandise to invest on advertisement should be completely rejected, rather than advertise, it would be a better idea for the many to invest on social network management Just to make sure they are present and to empower their spokespersons to amplify the social network effect. The merchandise returned policy might have room for improvement for profitability purposes, we haven’t been provided with the numbers, but for instance the time lapse of a one year could be cut down without having a big negative effect on clients, allowing the company to recognize profits accounting wise at an early stage. 3. Client Service by Ranking As discussed before, the call center is the key for profitability, since its the element hat creates a personal bond and the element of trust. If Capos decides to apply a distinctive service to their clients, they will no longer be providing an exceptional customer service, at least not to all of them. The commerce industry is still in the initial phase, they are new customers buying products for the first time, they are the late adopters and they might need an incentive to take this step. The call center is exactly what this potential customers need, they are interested enough to try to contact the company, they need to check that everything is legitimate and a good client service will assure them that they can trust Zapped. The call center is even more important for new clients, by applying a priority service based on seniority, Capos might lose a big share of their potential customers, since they will provide a disappointing first impression and some of them will defect even before they become customers. If the company is forced to cost reduction, they must do everything in their power to keep providing the excellence in customer service, because this is what the brand transmits to both new and current clients. By changing this factor, the brand will lose reduce its operational cost on logistics, their inventory, anything else before affecting client service. How to cite Zappos Case Study, Free Case study samples

Transforms Trendy Restaurants Temper Spaces -Myassignmenthelp.Com

Question: Discuss About The Transforms Trendy Restaurants Temper Spaces? Answer: Introducation The news report titled Canadian Digital Service takes startup approach to building better IT for government by Julie Ireton was covered by CBC News on December 14th, 2017. The story describes how the Canadian Digital Service (CDS) has been started by 39-year-old data programmer Jason White. This initiative rises as a startup for helping the federal government and serving the nation by creating better online connections to citizens of Canada (1). In my opinion, the article was written as a story pitched to the media. Though CDS is less than six months old, it has the aim of growing with a fast rate. The work done by Whites is fundamentally mission-driven. The story aims to bring into the limelight the honorable and noble initiative CDS has taken up so that the same can get the worthy recognition. The story under scrutiny highlights more than one news criteria, making it a suitable one for media coverage. The story highlights the Whites plan to leave behind his alluring job at Shopify to work with the federal government, giving a background to the mission outlined. It further moves on to point out the organizational functioning of CDS as it operates in a non-descript federal government building. A detailed discussed is being put up regarding the recruitment being done to expand its system, drawing interest of those wishing to work with the company. The story further highlights that CDS is following a government model, that aims to address the issues existing in the previous IT models. Moving into the potential CDS holds, it has been mentioned that CDS is focusing on small projects that are easier to be implemented and make appreciable. Rules are being followed regarding privacy legislation and how business data are being handled. The article reflects the positive aspects related to the business and brings to light the good impact on the society. The story is a motivating one that can encourage more professionals from the field of IT to come forward and play a role in integrating technology into government services. Such approaches would be beneficial in The article titled Local startup transforms trendy restaurants into temporary office spaces focuses on how world-class restaurants are being transformed into temporary office spaces that can be profitable for both the restaurants and entrepreneurs with flexible working schedules (2). This particular business idea forms the basis for another business idea of interior designing that can help in transforming restaurants into temporary office spaces. Since the innovative idea outlined in the article entails highly detailed interior decoration and furnishing, a business that looks into catering to the need of the restaurants would be highly beneficial. A startup initiative can be started that identifies the need for the restaurants and provide necessary amenities. The article points out that the freelance, independent entrepreneurs and startup world is expanding speedily. It is expected that the number of nomadic workers would form a third of the workforce in the next two years. Consideri ng this, the proposed business plan would bring in economic benefits. References Ireton J. Canadian Digital Service takes startup approach to building better IT for government [Internet]. CBC News. 2017 [cited 19 February 2018]. Available from: https://www.cbc.ca/news/canada/ottawa/canadian-digital-service-recruiting-it-brains-prevent-phoenix-1.4445010 Local startup transforms trendy restaurants into temporary office spaces [Internet]. CBC News. 2017 [cited 19 February 2018]. Available from: https://www.cbc.ca/news/canada/toronto/flexday-restaurant-office-space-1.4507588

Skills that make teachers effective

Skills that make teachers effectiveAdvertising We will write a custom essay sample on Skills that make teachers effective specifically for you for only $16.05 $11/page Learn More Teaching is a task that can be entrusted to any determinant person. Teachers should be passionate about their job. This can motivate them and hence make them achieve success in their teaching profession. Most developed countries have many educated persons because most teachers in these countries use effective teaching strategies to their students. Some of the effective teaching skills that one can bring to the 21st Century classroom include good communication skills, student-teacher engagement, and giving room for individualized learning among others. In this case, a teacher becomes successful if he or she is capable of creating a rapport with his or her students. This can help him or her connect easily with the learners and feel their needs on an individual level. Good communic ation plays a significant role in ensuring that students and teachers understand each other well, both inside and outside classrooms. Through good communication, students can comprehend everything that teachers present to them. A teacher too can tell whether his or her students get what he or she puts across, and hence make rectifications where necessary. It is also critical for educators to get their students engaged. This may include involving students in social but educative activities such as games and humour among others. Nevertheless, teaching should be student-centred. Teachers should try as much as possible to relate their teachings to the immediate real environment. Effective teachers also need to incorporate relevant doses of humour in their teaching, which can help students gain confidence in their work. To be an effective teacher within the current century, one needs to act and not to react. This can create good relations with students; hence improve their performance in studies. An effective teacher has to be precise and clear when giving out instructions. To make things different from the obvious routine, a teacher needs to give room for individualized learning. Students have different learning abilities, particularly with regard to the speed of grasping various contents taught in class. Putting all these into consideration, a teacher can do his or her best to attend to each learner in their class. A teacher has to give a positive feedback to his or her students whenever they do a good job. This encourages them to do even better. Moreover, a teacher has to involve students in making decisions. They should love their job because this can make them very determined in educating students. Reasons to educate in Virginia One would teach in Virginia because of the desire to join the best quality and diverse teachers that will enable him or her to add to his experiences and qualities. The institution emphasizes on the need to make students capable, self- reliant and responsible. Any teacher would love to be part of this mission increasing students’ academic achievements and learning. Having a teaching license in Virginia gives one the credit to teach in other high institutions, due to the high quality associated with the teaching careers.Advertising Looking for essay on education? Let's see if we can help you! Get your first paper with 15% OFF Learn More This essay on Skills that make teachers effective was written and submitted by user Carl Nielsen to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Three Strikes Law Essays - Criminal Law, Criminology, California Law

Three Strikes Law Essays - Criminal Law, Criminology, California Law Three Strikes Law CJC2000 Prof. Taylor, Patrica 02/19/2015 All round the world there has been an ongoing issue with crime. Many of the crimes committed are both violent and nonviolent actions towards innocent people or places. What can possibly be done by law makers and enforcers to stop this ongoing problem? To help minimize these offenses the states has develop a way to take a stand against it being done, the Three Strikes Law. It basically states that if you are a convicted felon, on your third offense, misdemeanor/felony, youre out. With the states passing the three strikes law, it allows repeating offenders to remain behind bars for the rest of their lives. But is it fair to all offenders that continuously commit a crime to remain behind bars or should the ones that commit petty crimes be punished because of this law? In my opinion, if a person consist of committing a crime he or she shall be held responsible after the second time. Committing a crime in the first beginning can be more than enough times. Depending on the type of the crime such as murder or molestation, the person should be behind bars and stay there for the rest of their lives after the first offense. Think about it for a minute, if all the habitual offenders are force to remain behind bars, our crime rates should drop opposed to if they are still on the streets committing the crimes. I think the three strikes law is a good effect on crime because it will make offenders think twice about committing a crime. Besides, lets be realistic, a person knows if they will constantly commit the same crime or another one for that matter.

Free sample - The Economic Report. translation missing

The Economic Report. The Economic ReportNational bank of Kenya limited is a financial institution engaged in the provision of services such as banking, financial and others related to these. The bank owns two subsidiaries namely: Natbank Trustee and Investment Services Limited and the Kenya National Capital Corporation Limited (Kariuki 2010). This bank has encountered several problems over the last few years and the country’s central bank which monitors the operations of all financial institutions in the country has predicted that unless the bank changes tact, it will be bedeviled by the same problems over the next couple of years. These problems include demand and supply problems, economic problems, non performing loans portfolio as well as technology problems (Kariuki 2010). According to reports from the central bank, the bank’s nonperforming loans accounted for about 43.5% of the total loans in the month of June (Kariuki 2010). This was above the industry range which was estimated to be 15.8%. These nonperforming loans can be attributed to reckless lending policies. Statistics from the central bank also indicate that the bank has a huge revenue deficit of four billion Kenya shillings (Kariuki 2010). This deficit is to be settled through realized profits. Economists from the central bank however indicate that this may not be feasible as the bank is unlikely to issue dividends, a move that may see many share holders desert the bank hence a profit dive (Kariuki 2010). The bank’s total capital base as a percentage of total risk weighted assets has not reached the statutory threshold which is placed at 12%. Its estimated to be at 10%, a fact that makes payment of dividends further impossible. Due to the huge nonperforming loans, the bank decide d to go slow on lending, a move that saw many of its customers move to the less risky investments. These investments include but not limited to: Government securities such as treasury bonds and treasury bills (Kariuki 2010). Statistics from the central bank show that the bank’s loans to private households declined by 19.7% while lending to finance and insurance sectors reduced by 25.3% last year (Kariuki 2010). The central bank predicts a further reduction in these two for the next few years. The emergence of many micro-finance institutions such as K-Rep, Jamii Bora Trust, and Kenya Women Finance Trust, which have captured the low-end of the market has compounded the problems facing the bank further (World Bank [WB] 2010). This is because, these microfinance institutions offer lower lending interest rates on their loans hence attracting many unbanked citizens who may have been absorbed by the National Bank (Kariuki 2010). The location of these micro-finance institutions enable them to capture more customers. This is because they are spread throughout the country’s rural areas where majority of the unbanked citizens reside. The bank adopted a policy of high interest rates on its loans so as to cover their level of exposure, a move that greatly reduced the demand for the bank’s loans (WB 2010) The introduction of mobile banking by the country’s leading telecommunication company, Safaricom limited has also been a thorn in the bank’s flesh. Many people in Kenya who had not been captured by the banking world found it simpler to start accounts with the telecommunication company (Omwansa 2010). This is because of the convenience involved in carrying out transactions which involves simply the use of mobile phones. Mpesa is the name given to the mobile banking of the telecommunications company (Omwansa 2010). Mpesa customers are able to carry out transactions such as paying bills, money transfers, shopping in supermarkets using phones, and many more other transactions. The demand for accounts in this bank and others in the country is expected to reduce as more people jump into the mobile banking band wagon (Omwansa 2010). The problem is expected to get worse as more telecommunication companies in the country have emulated Safaricom. For instance, the country’ s second largest telecommunication company by customer base, Zain Kenya has introduced a similar mobile banking program called Zap (Omwansa 2010). Many banks in the country have introduced a technology that enables bank customers to manipulate their bank accounts using mobile devices. Failure by this bank to follow suit has made it fail to attract potential customers (Omwansa 2010). This technology allows customers to transfer money from their banks to their mobile phones which they can then withdraw through the telecommunication companies’ money outlets such as Mpesa and Zap (Omwansa 2010). This saves them the inconvenience of travelling to the banks to transact. The country’s third largest telecommunication company by customer base, Yu has also entered the mobile banking band wagon through its Yu cash. This has captured even more customers whose destiny would otherwise have been in the banking world (Omwansa 2010). The country has witnessed an explosion of pyramid schemes which have lured many citizens into depositing money with them. These schemes have convinced many people to withdraw money from their bank accounts which has led to a poor performance by the banks (Jack 2010). This is because, money which the banks could have issued as loans is now disappearing into the pyramid schemes. These schemes operate on a simple principle; people who bank with them first benefit from funds brought in by subsequent customers when their pay time comes (Jack 2010). If the number of people qualifying for payment exceeds the amount of money brought in by new customers, the owners of the schemes disappear with all the investments. If the country’s central bank doesn’t control the operations of these pyramid schemes, then banks are expected to suffer more in the next few years (Jack 2010). The economy of the country performed poorly in the last financial year as a result of a post election violence. This has also greatly affected the bank since the government is its largest shareholder . Poor economic performance also translates to lack of funds to put into bank accounts by the bank’s customers hence the bank is affected adversely (Jack 2010). If the performance of the economy is not turned around in the next few years, then the bank is expected to perform more poorly. The diagram below shows the likely demand and supply situation in the bank over the next three years. This is still the current situation. Reduction in supply has been witnessed since the bank has been forced to close down some of its branches due to the poor performance. The bank is expected to close more of its branches in future if the problems are not solved. Closing down of accounts coupled with the problems discussed earlier has led to a decrease in demand for the bank’s financial services. To turn around this poor performance, the bank should consider a number of solutions. Firstly, the bank should consider expanding to the rural part of the country in order to capture unbanked people from the low-end of the market (Jack 2010). The bank should also consider a reduction in its loans interest rates in order to increase the demand of the same (Jack 2010). The bank should also consider introducing a technology that would allow customers to manipulate their bank accounts using mobile devices. However, for the bank to keep a competitive edge over the others in the same line of production, they should do this differently. Instead of cooperating with the existing mobile networks, the bank can consider coming up with its own platform. This is because, the telecommunications firms are also themselves involved in mobile banking, so collaborating with them amounts to collaborating with a competitor. This can only be to the advantage of the competitor (Jack 2010). The bank should a lso reduce the requirements for opening an account with them. These requirements include minimum deposit, passports, ATM processing fee etc. while passports are quite important, the bank can consider purchasing cameras for taking the passports without charging the customer (Jack 2010). The bank should also consider increasing the number of marketers so as to capture as many potential customers as possible. Opening many ATM machines throughout the country would also go a long way in helping the bank turn around its poor performance. Lastly, the bank should pressurize the central bank to come up with policies which discourage the mushrooming of pyramid schemes (Jack 2010). This paper has discussed the problems afflicting the National Bank of Kenya. These problems have included: nonperforming loans, huge revenue deficit, competition from micro-finance institutions which offer loans with lower interest rates, low customer base due to failure to capture rural areas, competition from telecommunications companies which have invested in mobile banking, failure to take advantage of modern technology involving mobile banking and finally competition from rogue pyramid schemes. Solutions which can turn around this poor performance have also been discussed. These have included: expanding to the rural part of the country in order to capture unbanked people from the low-end of the market, introducing a technology that would allow customers to manipulate their bank accounts using mobile devices, reducing the requirements for opening an account with them, introducing more ATM machines and finally pressurizing the central bank to come up with policies which discourage the mushrooming of pyramid schemes.

Mid Term Exam Assignment Example | Topics and Well Written Essays - 1250 words

Mid Term Exam - Assignment Example This depends upon where and how the company markets its products or services. In addition, when it comes to marketing or promoting a service or product, one sixe does not fit it all. There are various elements of the marketing strategy that may need to change depending on whether the company is marketing globally or domestically. In order for the Apollo Company to gain enter and gain control of new markets, the marketing managers needs to conduct a situation analysis. A situation means the state of things that occur at the same time. Situation analysis interprets the environment that an organization operates. The situation analysis gives the knowledge and context for planning. It shows the competitive position, financial and operating condition and the state of external and internal affairs. In situation analysis, SWOT analysis is the commonly used analysis. SWOT refers to the strengths, weaknesses, opportunities and threats to a company. In our study of the Asian pacific and North America markets, the positioning statement should be believable, important and unique. After the positioning statement has been developed, supporting claims have to be implemented. The statements are used in satisfying a similar criterion to the positioning statement. Then support points usually reinforce the uniqueness, believability and the importance of the positioning statement. The support points usually give a structure for demonstrations of the products. The positioning statement articulates the abstract benefit while the supporting points usually are readily available for demonstration. International marketing means to provide one’s services or goods worldwide. It is a tradition for most companies to start marketing their products or services domestically and expand to international market to capture wider market share and increase avenues for sales of their services or