See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
https://www.facebook.com/MechanicalMarketer
See the Roland Berger Strategy Consultants (http://www.rolandberger.us/) 2014 study on The Next Challenge Of The US Auto Industry.
http://tinyurl.com/NPAutomotive
http://www.linkedin.com/in/TonyLy
https://www.facebook.com/MechanicalMarketer
More than 100 Ecommerce managers from leading brands in the UK took part in the Bearing Partnership Digital Industry Confidence Report 2009 online survey during the spring of 2009. Between them, respondents manage £7.3 billion of Ecommerce revenue, more than 10 per cent of all UK ecommerce sales in 2008. This report looks at how the Head of Ecommerce felt they performed in 2008 as well as their predictions for 2009 with regards to remuneration, performance, and their confidence levels moving forward.
IDeas BIG Global Brand Ranking Report ranks top worldwide brands based on a compilation of some of the most popular and prestigious rankings. Visit http://blog.ideasbig.com/the-2013-definitive-global-brand-ranking-report/ to download.
This month, online car marketplace AutoTrader, which has been working with MDC Partners’ Doner for more than 16 years, issued an RFP seeking a new creative agency.
Salmon and Stibo commissioned Coleman Parkes Research to conduct a detailed research programme in February 2013, exploring current B2B trends and developing eCommerce trends in the UK. 100 senior UK business decision makers were questioned about the current stage of their adoption of eCommerce, what they had planned over the next two to three years and the challenges they faced in implementing successful eCommerce strategies.
More than 100 Ecommerce managers from leading brands in the UK took part in the Bearing Partnership Digital Industry Confidence Report 2009 online survey during the spring of 2009. Between them, respondents manage £7.3 billion of Ecommerce revenue, more than 10 per cent of all UK ecommerce sales in 2008. This report looks at how the Head of Ecommerce felt they performed in 2008 as well as their predictions for 2009 with regards to remuneration, performance, and their confidence levels moving forward.
IDeas BIG Global Brand Ranking Report ranks top worldwide brands based on a compilation of some of the most popular and prestigious rankings. Visit http://blog.ideasbig.com/the-2013-definitive-global-brand-ranking-report/ to download.
This month, online car marketplace AutoTrader, which has been working with MDC Partners’ Doner for more than 16 years, issued an RFP seeking a new creative agency.
Salmon and Stibo commissioned Coleman Parkes Research to conduct a detailed research programme in February 2013, exploring current B2B trends and developing eCommerce trends in the UK. 100 senior UK business decision makers were questioned about the current stage of their adoption of eCommerce, what they had planned over the next two to three years and the challenges they faced in implementing successful eCommerce strategies.
(Read the green parts)CHAPTER 12 READINGCHAPTER 13 REA.docxmercysuttle
(Read the green parts)
CHAPTER 12 READING
CHAPTER 13 READING
Global Thinkers Consulting Group:
Analysis of Marriott Hotel in Panama
Week 10 Group Assignment
Running Head: ANALYSIS OF MARRIOTT HOTEL IN PANAMA 1
ANALYSIS OF MARRIOTT HOTEL IN PANAMA 2
09/0209/2014
Team Members:
Jenn O’Neal
Lisa Ross
Theodore Newton
Tommy Choi
Dominic Eze
Table of Contents
Executive Summary 3
Introduction 4
Nature of the MNC’s International Operations 4
Implementation Problems 5
Management Issues 6
Strategy 6
Finance & Accounting 8
Marketing 8
Human Capital 10
Marriott’s Ethics Code 10
Social Responsibility 12
Conclusion 12
References 13
Executive Summary 2
Introduction 3
Nature of the MNC’s International Operations 3
Implementation Problems 5
Strategy 6
Finance & Accounting 7
Marketing 8
Human Capital 10
Marriott’s Ethics Code 11
Social Responsibility 12
Conclusion 13
References 14
Introduction
Global Thinkers Consulting Ggroup recommends that Marriott Hotel expand their hotel chain into Panama. Panama is a strong option since Marriott is known as a hospitality and tourism industry around the world, providing a variety of services and activities that appeal to guests in Panama. Marriott’s strategy to gain the largest market will be to offer a diverse array of services and luxury hotel features, high quality customer service, and their already prominent name as a foothold. Marriott financing will be guided by a combination of global and US accounting practices so they are compliant in their home country and new sites. Marriott will be able to market to their audience by push-pull promotional practices, attractive pricing, using the Marriott’s current JW brand. Marriott will be successful in Panama because of their strong human capital structure, code of ethics, and social responsibility.Nature of the MNC’s International Operations
Marriott International is a hospitality and tourism industry involved in providing world class lodging, foodservice, recreational, gaming, and travel services across different operational bases globally. The company is a US based hospitality industry with its corporate headquarters in Bethesda, Maryland; the company has expanded its operations into over 80 countries with 4000 brands established to provide services for different consumer segments. In realisingrealizing its corporate mission, the company engages in “operations and franchising of hotel services, the development and operation of holiday ownership resorts, the operation of Marriott Executive Apartments, the provision of furnished corporate housing through its Marriott Executive Stay division, and the operation of conference centrescenters” (Euromonitor International, 2009, p. 5). The provision of these different operational categories help Marriott intensify its effort in ensuring wide coverage in hospitality and tourism in order to maintain competitive advantage, customer satisfaction, and loyalty.
In keeping with innovation ...
What does the content of your marketing communications say about how much your company values its current customers? Interactions with existing customers tend to fall into one of the following categories: a bill, an up-sell offer, a cross-sell attempt, or a renewal offer. There may be some customer value in these actions, but they tend to benefit the company more than the customer.
Enterprise System ImplementationMemoWalt Disney World Reso.docxYASHU40
Enterprise System Implementation
Memo
Walt Disney World Resorts
To: CIO
From:
CC: CMO, CFO, COO
Date:
Subject: Success Criteria for Enterprise System Implementation
The organization in this technology-oriented market without Enterprise Resource Planning is running by some software, which does not even allow customization while integration is a bigger target. To incorporate in this challenging and competitive world the companies are moving toward best ERP solutions to get the benefits i.e. SAP, Oracle, Microsoft. In case of Walt Disney World Resorts case I suggest implementation of Customer Relationship Management for certain benefits and to eliminate issues that the company are currently facing. In the gravity of this implementation here are certain success criteria in the back of my suggestion.
Criterion 1: Application Strategy
The application integration architecture is the most complete and integration solution in ERP for orchestrating agile, user friendly and user oriented business processes across all the enterprise business application. This will help the organization in:
1. Gain business and IT efficiencies
2. Increase agility which is a basic requirement in case of Walt Disney
3. Lower total cost of overall ownership
Criterion2: Product Integration Strategy
For Tier I level organization like Walt Disney SAP provides best ERP solutions (Schickel, 1968). The product integration strategy of a solution allows a company to focus either on:
· Focusing on one product line and investing totally in that particular product line or
· Companies can focus on supporting multiple application with or without overlapping in functionality but allows the customer to chose best of if its product application
These aspects help the Walt Disney to encounter the issues in different business segments and facilitate the customer by providing friendly user application on mobiles and in booking area for receiving tickets and food items without queuing in long lines.
Criterion 3: Comprehensive CRM capabilities
A CRM is a comprehensive package in business support and facilitation from its customer data maintenance to report generation. This provides role based customer intelligence and pre-built integration. Company can develop a complete database of its valued customers and provide facilities even online to avoid the hassles. Following are certain capabilities of CRM:
· CRM with a proper training becomes a friendly intelligent system of employees that save time cost, Psychological cost, and monetary cost.
· This System also help is maintains the record of millions of customers and retrieval on just one click by unique account numbers (Moore, 1980).
Criterion 4: Web Based Application Strategy
Web based application strategy helps organization transform to gain more and valued by lowering the cost and risk. This creates integration among the business processes and application to widen the approach and access of authorized users. But the risks of cyber ...
This document brings together a set of latest data points and publicly available information relevant for Financial services Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
This document brings together a set of latest data points and publicly available information relevant for Financial services Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Digital Transformation: Driving CX Excellence keynote slides from the following conferences - #DigiExConf #CRMEvolution #SpeechTEK #SMARTCS
Presented April 2019
This document brings together a set
of latest data points and publicly
available information relevant for
Hospitality Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
Whitepaper: Why banks need to move if they want to own banking in the future.Stefan F. Dieffenbacher
1. Executive Summary
Driven by the top Internet players the speed of change in the financial services market is rapidly increasing. To secure their business and generate further growth these Internet players are forced to attack additional markets and the financial services market is one of them.
They will conquer the financial services market by
• utilizing their global customer base and advanced customer intelligence (data),
• by connecting today separated services to an eco system using technology and delivering advanced user experience
• and their ability to move fast.
Their entry point to the financial services market is the offering of payment services to their clients through the use of their mobile devices. Extending the functionality of wallets will challenge classical retail banking’s value proposition as these Internet companies can go far beyond classical value propositions.
Some traditional financial services companies already start to understand that the time for a change has come, as these developments will challenge their core business models in very few years. For the first time, this many large-scale companies are starting to invest in programs in large excess of €500m to become better in digital.
While huge investments are not a sufficient reaction to the challenges of the market, players that will not follow the trend will lose their current position in the next years.
Traditional bank’s service offering and channel mix needs to be further rethought and adapted, followed by a fast-paced execution to respond to today’s quickly emerging reality. Players who are not able to manifest their position in the digital channels soon will be challenged in their existence.
The strategic transition needs to be guided by a short-term tactical approach to seriously start earning money in digital. On top of the pure positive financial impact of such a tactical approach, achieving significant sales through a much stronger public website as well as data-driven up- and cross-selling measures will start a cultural shift within the bank. When executives and employees discover that suddenly the digital channels generate large amounts of money, a movement of change could be kicked off. That would be the basis to understand the urgency and the possibility to develop a guiding coalition – the start of any strong change process.
2. Introduction
We are convinced that banks needs to even further raise their attention to their Digital Channels and some necessary adoptions of their business models to stay long term successful. We have rationalized our analysis and proposed actions by a large body of research and facts, which provide deep evidence and insights in recent market evolutions.
To provide a complete picture we showcase recent alterations and transformations in diverse industries, highlight the changing face of the insurance industry and subsequently dive into an analysis of the banking industry. We cover w
This document brings together a set of latest data points and publicly available information relevant for Retail & Consumer Goods Industry. We are very excited to share this content and believe that readers will benefit from this periodic publication immensely.
Similar to E commerce management. WE PROVIDE ANSWER SHEETS. 9901366442 / 9902787224 / www.mbacasestudyanswers.com (19)
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Overview on Edible Vaccine: Pros & Cons with Mechanism
E commerce management. WE PROVIDE ANSWER SHEETS. 9901366442 / 9902787224 / www.mbacasestudyanswers.com
1. AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-
11724
SUBJECT:- E-COMMERCE MANAGEMENT
Total Marks : 80
Attempt all the cases
Case 01 GM’s E-Business Strategy
INTRODUCTION
US-based General Motors (GM), the largest automobile company in the world, was in trouble in the
late 1990s. The company’s market share in the US automobile market had been steadily declining from
a high of 50% in the late 1960s to a low of 28% by 1999.Analysts pointed out that GM had been in the
grip of a vicious circle.
The company faced low demand for its automobiles as they were not developed in line with the
changing customer needs and preferences. However, GM continued producing automobiles which did
not met customer requirements, leading to excess inventories at its factories and dealers.
The building up of inventory at the dealers made the company even more desperate, and most often it
resorted to higher dealer incentives which reduced the company’s profits significantly. This again
forced GM to produce more cars to compensate for the eroded profit margins. Commenting on the
dilemma GM faced in the late 1990s, John Paul MacDuffie, Professor, Wharton Business School,
explained, “That belief in volume, and doing whatever it takes to keep volume, has driven a lot of their
decisions.
GM’s labor costs are fixed, meaning they remain the same regardless of what the volume of sales is.
GM wanted to keep factories open as much as possible. There was some value in that strategy, but I
think they overdid it.” Analysts added that the reason for the decline in GM’s US market share was
that it had
failed to introduce new models that customers wanted in quick time. To address this challenge, GM
made e-business a strategic priority. It wanted to reinvent itself by embracing e-business across its
value chain.
In August 1999, after a year of research in collaboration with Forrester Research, GM launched a
business division called e-GM that was responsible for all of the company’s websites and its On Star
communication system. Through this initiative, the company planned to reduce costs, improve quality
and boost demand for its products.
AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL
2. Ult also wanted to position itself as a provider of Internet-based information services and a major
player in the e-commerce arena. Commenting on this, Computerworld magazine quoted, “GM wants to
be more than your car company. Think in-car, real-time stock quotes, talking e-mail messages and
video games.
Think satellite-based radio services and online car financing. Think of a multibillion-dollar online
trading exchange. These are just a few of the businesses in which GM is making huge information
technology investments. “The philosophy that drove GM e-projects was the ‘launch and learn’
approach. The company launched e-business projects, did pilot tests for them and then decided whether
to abandon or continue them. However, analysts expressed doubts whether GM would be able to
successfully implement its e-business strategy, and if it did, what the significance of this strategy for
the company would be.
Commenting on this, Derek Slater, Executive Editor of CIO Magazine said, “Can e-business make a
difference for an old economy, big and slow manufacturer the way it can for nimble, information-
based businesses?” Raising similar doubts, an Internet World magazine article queried, “Will Internet
hardware and services become GM’S best products? And this in turn raises this question: Will Internet
services become GM’s core product some day?”
NEED FOR E-BUSINESS STRATEGY
With the advent of the Internet wave in 1999, GM wanted to reposition itself strategically. It wanted to
make use of its vast customer base and huge assets to emerge as a leading player in the new economy
businesses of entertainment and e-commerce. The 1999 annual report of GM stated: “Besides mergers
and acquisitions, there is no bigger trend in business today than that towards electronic business.
Issues
1. What do you understand by the E-Business strategy implementation across an organization’s value
chain?
2. What are the rationale and benefits associated with e-commerce initiatives in
an automobile company?
3. What are the Channel conflict arising from e-business initiative?
Case 02 : Marriott’s Customer - Focused E- Business Strategy
DELIGHTING CUSTOMERS
Headquartered at Washington in the US, Marriott International (Marriott) is a world leader in the
hospitality industry. In year 2003, it had a network in excess of 2,600 operating units in the US and a
workforce of 145,000 employees, spread over 65 countries across the world. Marriott’s diverse
portfolio of popular hotel brands included leading brands such as Marriott, JW Marriott, Renaissance,
Ramada International, Courtyard, Residence Inn, and The Ritz-Canton, among others.
Marriott became the first hospitality company to win the CIO - 100 award from CIO magazine for four
consecutive years (2000-03). The award was based on the company’s exceptional customer service and
relationship capability. Reacting to the receipt of award in 2003, Carl Wilson, Executive Vice
President and Chief Information Officer of Marriot said, “This award is the result of a culture and
commitment among Marriott’s information technology leadership team, associates and business
partners to create great value for our company.”
Since its inception, Marriott has focused on providing excellent customer service. The company
offered personalized services to its clients, whom it referred to as its ‘guests.’
3. It had introduced several innovative technologies and impIemented them even before its competitors
did. For instance, in the 1980’s, the company launched Marriott Automated Reservation System for
Hotel Accommodation (MARSHA), a totally new concept of hotel reservation in the hospitality
industry at that time.
Marriott made continuous improvements in its business processes in its efforts to ‘delight’ its
customers. In 1998, the company adopted an e-business strategy to re-orient itself to serve its
customers better. The company was operationalizing a strategy to switch over from a decentralized
property-orientation to a centralized customer- orientation in its services. The company invested $70
million (mn) over a two-year period to implement a variety of IT applications in diverse functional
disciplines such as sales, accounting and personnel. A key component of Marriott’s e-business system
was its CRM applications, developed in association with the leading CRM software company - Siebel
Systems.
By installing eCRM applications, Marriott was able to offer several new services that enhanced its
hospitality services. The company’s website, www.marriott.com became one of the most frequently
visited sites in the
hospitality industry, giving clients access to the services offered by the entire Marriott chain of hotels
and resorts. Il these initiatives boosted the company’s ability to serve its clients, and also contributed to
its own strong financial performance. For the financial year ending 2001-02, the company reported
revenues of $84.41 billion (bn) and a net profit of $2.77 bn.
BACKGROUND NOTE
In 1927, J. William Marriott (William) set-up a nine-seat root beer shop in Washington. After some
time, William started serving hot food along with root beer and named the shop as The Hot Shoppe’ In
1929, Hot Shoppe was officially incorporated as Hot Shoppes, Inc. In 1937, Hot Shoppe ventured into
airline catering at Washington airport, serving the Eastern, American and Capital airlines. Over the
next three decades, Hot Shoppes diversified into other businesses including food services management
by starting a cafeteria at the US Treasury Building and Highway division. e-business strategy and the
time involved for implementation.
To execute e-business strategy successfully, organizations also require the best network and systems
management tools available. It is also important to develop a framework for organizational alignment
and decision-making and a more complex IT management and governance structure. A clear
framework that establishes who can make which decisions, and where and how the e-business project
will be managed is required.
Issues
1. Bring out the facts of the case.
2. Identify the various E-business initiatives.
3. What are the strategies an organization to focus in order to excel in the E-business.
4. Apart from the facts provided in the case, what other initiatives you can project keeping in mind the
success of an organization towards E-business.
In 1966, the company ventured overseas, acquiring an airline catering kitchen in Caracas, Venezuela.
In November 1967, its name was changed to Marriott Corporation (Marriott).
In 1982, Marriott acquired Host -International, a leading hospitality services provider in the US,
becoming the largest operator of airport terminal food, beverage and merchandise facilities in the US.
In the 1980s, Marriott acquired several companies including American Resorts Corp. (vacation
business, 1984), Gladieux Corporation (food service company, 1985), Service Systems (contact food
service company, 1985), Howard Johnson Company (hotels & inns, 1985) and Residency Inn
4. Company (1987). With the acquisition of Saga Corporation, a diversified food service management
company in 1986, Marriott became the largest food service management company in the US.
Issues
1. Taking out the facts of the case , Bring out the importance of a customer-focused e-business strategy
in the hospitality industry.
2. Establish the role of IT in integrating different business processes to make them more customer-
oriented based on your understanding of the case.
Case 03
E-Strategies - Case Studies
In the e-business environment, organizations must focus on their core competencies and should rely on
external partners for all their non-core activities. The Internet enables a significant reduction in the cost
of inter-organizational coordination and transactions, which fundamentally changes the nature of
business relationships and encourages greater use of business partners over internal departments.
Business managers have more choice to outsource business processes they require.
E-business strategies can significantly improve various organizational functions including supply chain
management (SCM), product development, marketing, HR and so on. It will also enhance the benefits
for organizations adopting e-business including shortening of new product development cycle time,
providing better information to suppliers and vendors, reducing data integrity issues, significantly
enhancing customer experience and more. The e-SCM initiatives typically start with e-procurement
with answering questions such as whether there is a need for e-market places for procurement and how
to transform SCM from the organization driven inventory building to customer driven order approach.
Another e-SCM initiative, e-sourcing is a cross-functional and cross-enterprise process that aims at
optimizing supply chain lifecycle performance through the Internet.
Organizations have to develop new partnerships, create new e-intermediaries (e-supply network) and
develop appropriate standards for data exchange and inter-organization related processes. They also
have to decide on what services they will source via the-Internet and have to develop robust KM
systems to improve internal efficiency, enable faster decision-making and facilitate information and
knowledge sharing.
E-Strategies have to be developed for the sell side of an organization solving
distribution related issues such as shall the organization serve directly to its customers and how will the
organization’s existing channels react if it uses the web as a new channel. Other sell side issues include
how to manage customer relationships online and online marketing and how to use online channels
like B2B e-marketplaces, online retailers and virtual distributors. One of the major hurdles to
overcome includes solving conflicts between old and new channel successfully.
Getting prices right on the web is one of the critical success factors for establishing an e-business.
However, few companies have been able to develop a right online pricing strategy. Organizations must
ensure that their e-pricing strategy should not conflict with their core business principles and strategic
objectives. They should employ the right software tools and related skills to enhance their online
pricing performance. Moreover, the tools for optimizing e-pricing, for example, software for
monitoring competitors’ prices do not require much investment.
5. Organizations not only have to redefine their core business processes but non-core processes such as
human resources as well to derive the full potential of the Internet. By developing effective Internet-
based business-to-employee (B2E) systems, organizations can persuade their employees to embrace
change. The benefits of these systems include reduced interaction costs, allowing employee self-
service and mass customization.
Online brand management is another issue that must be tackled by organizations. In their rush to
establish a presence on the Internet, most organizations have failed to build strong, distinctive online
brands. Questions such as if one branch of an organization develops a website, will it not confuse
customers of other branches of the company and how to differentiate local and global brands on the
Internet has to answered.
After addressing all issues related to electronically enabling the functional areas mentioned above, an
organization is ready to manage the execution of its overall e-business strategy. Organizations must
also work out detailed estimates of costs involved in implementing its
Case 4 : A PROACTIVE APPROACH TO ENVIRONMENTAL RESPONSIBILITY
INTRODUCTION
Dell is a premier provider of computer systems world-wide. Through its direct usiness model, Dell
designs, manufactures and customises products and services to customer requirements.
DELL IRELAND
Dell’s European manufacturing operation is located in Limerick with a European Business Centre
located at Cherrywood in Dublin. The company has been in Operation in Ireland since 1990, and
employs around 4,500 people. Dell is Ireland’s largest exporter, largest technology company and
second largest company overall.
Dell’s manufacturing facility operates a Just-in-Time manufacturing strategy. Dell’s suppliers deliver
the required materials at regular intervals during the day and load them onto the manufacturing line.
The final product is boxed and loaded directly onto transport trucks and shipped to supplier-owned
merge centres. There, the monitor and other requested peripherals are added before final shipment to
the customer.
SOCIAL RESPONSIBILITY TO STAKEHOLDERS
The need for a business to be responsible for its actions is widely accepted. Businesses do not exist in
isolation; they provide goods and services to people and make use of’ materials and labour supplied by
people. Businesses have responsibilities to stakeholders to ensure their actions do not cause harm.
CHARACTERISTICS OF AN ENVIRONMENTALLY RESPONSIBLE COMPANY
Dell is committed to a culture of environmental sustainability and responsibility. It continually reduces
its impact on the environment through product design, manufacturing, product ownership experience
and product end-of-life solutions.
The characteristics of an environmentally responsible company include:
• Awareness — of how the company’s policies can impact on stakeholders
• Sensitivity — to the requirements of local community and environment
• Honesty — about the actions of the company
• Consultation — with stakeholders prior to developing new policies or products
• Openness — transparency with stakeholders about company practices
6. Dell has developed a Code of Conduct, which correlates closely to the above characteristics. It allows
stakeholders to understand that they can believe what Dell says and trust what it does.
ENVIRONMENTAL AUDIT
Socially responsible companies conduct environmental audits to assess the impact of their businesses
on the environment. Dell complies with all the environmental laws and regulations, including ISO
14001 and OHSAS 18001, and manages its facilities with the environment in mind. Dell designs
products with up-to-date recyclable materials, using the Reduce, Reuse, Recycle initiative at ts
manufacturing site. It commits to taking back old computer parts for recycling.
Dell continually explores all kinds of recycling options to rind the stateof-the-art best practices for
recycling of its old IT equipment.
CORPORATE ENVIRONMENTAL GOALS
Dell has identified corporate environmental goals to work towards in the future. This environmental
policy provides a framework designed to ensure sustainable practices throughout the entire product
life cycle.
Dell’s vision is to create a company culture where environmental excellence is second nature. The
following environmental policy objectives have been established to achieve its mission.
PRODUCT CONCEPT & DESIGN
Dell designs products with a focus on:
• Safe operation
• Extending product life span
• Reducing energy consumption
• Avoiding environmentally sensitive materials
• Promoting dematerialisation
• Using parts that can be recycled
In 2000, Dell began a programme called ‘Design for the Environment’, which evaluates the
environmental performance of a product and the impact of its packaging, energy and materials.
Many Dell systems (and virtually all Dell monitors) comply with the U.S. Environmental Protection
Agency (EPA) Energy Star programme for energy efficient computers, which reduces air pollution.
The EPA estimates that offices can save 5O% of equipment electricity costs by taking advantage of
power management, where inactive computers go into “sleep mode”. This decrease in electricity usage
can reduce emissions of carbon dioxide, which causes the greenhouse effect, and sulphur dioxide and
nitrogen dioxide —, two primary causes of acid rain.
PREVENT WASTE & POLLUTION
Dell operates its facilities in a way that minimises harmful impacts on the environment. It also places a
high priority on reducing waste, recycling and reuse programmes and pollution prevention.
100% of all boxing material, cardboard boxes and protective foam are recycled or recovered through
Dell’s local recycling facilities.
In 2005, Dell developed a Forest Products Stewardship Model that established three main goals with
respect to paper products: protecting endangered forests, improving forest practices and reducing
demand on forests.
7. CONTINUALLY IMPROVE PERFORMANCE
Dell uses an Environmental Management System (EMS) to establish goals, implement programmes,
monitor technology and environmental management practices, evaluate progress, and continually
improve environmental performance. Dell also encourages a culture of environmental responsibility
among employees and management.
Dell-owned buildings are monitored and controlled by an automated building management system,
which monitors energy usage and controls temperature. By monitoring building occupancy, energy
consumption and cost per unit are reduced.
DEMONSTRATE RESPONSIBILITY TO STAKEHOLDERS
Dell acts in an environmentally responsible manner to ensure the health and safety of its employees,
neighbours and the environment.
COMPLIANCE WITH THE LAW
Dell conducts business with integrity and complies with environmental laws and regulations.
RECYCLING AND DONATING
As computers become more common in homes and businesses, there is a growing concern about the
environmental impact of old computers.
CONSUMER EQUIPMENT END-OF-LIFE STRATEGIES
As part of Dell’s policy that ‘No Computer Should Go to Waste’, Irish consumers can recycle used
computer systems, monitors or printers through the Dell website at no cost with a new purchase.
BUSINESS EQUIPMENT END-OF-LIFE STRATEGIES
In November 2004, Dell Ireland launched recycling services for business and consumer customers.
The new service is part of Dell’s global effort to increase product recovery by 50% in 2005.
Dell offers business customers Dell Asset Recovery Services (ARS), which allows customers to
recycle or re-sell used computer equipment of any brand.
Reuse is also a critical element of the product life cycle and Dell also supports donation as a
responsible means of disposing of computers.
RECYCLE
In November 2004, Dell hosted a free recycling event in Limerick to raise awareness among
consumers and small businesses of the importance of electronics recycling. More than 540 cars
dropped off 19.1 tonnes of old computer equipment for recycling. 630 computers, 825 monitors, 330
printers and other peripherals filled three 40-foot freight trucks.
At the event, Nicky Harterv, Vice President of Dell’s Manufacturing and Business Operations
commented “As an environmentally responsible company, offering a whole range of recycling services
to both the consumer and business customer, it is important that we help raise the awareness of the
importance of recycling to the environment and of the options available.”
DONATE
In January 2004, Dell was a partner in the Reuse Technology (RT) Centre, a scheme that facilitates the
reuse of computers by community and non-profit groups. Dell customers are encouraged through
Dell’s website to donate used systems to the RT Centre, who refurbish them, reload software and give
them to suitable non-profit organisations. This makes hundreds of used computers available to
communities that would not otherwise be able to afford them. Dell also contributes a percentage of its
own used computers to the RT Centre.
8. COMMUNICATING THE MESSAGE
In March 2005, Dell called on all Irish consumers to “Go Green” for St. Patrick’s Day, following
research which highlighted a lack of awareness among consumers of the computer recycle and reuse
options. The study found while 85% of the public recycle household waste at least once a month, only
9% plan to recycle their home computer.
Dell announced in June 2005 that Irish consumers are leading the way in the use of its computer
recycling services in the Europe, Middle East and Africa (EMEA) region. Irish online recycling and
computer donations accounted for over a quarter of Dell’s total EMEA numbers in the first quarter of
2005.
“Last year alone, Irish customers recycled over 22 tonnes of computer equipment through Dell. These
figures emphasise the importance of having these services available,” said Jean Cox-Kearns, Dell’s
Senior Manager for Asset Recovery Services.
COST-BENEFIT ANALYSIS
The costs to Dell of meeting its ethical and environmental responsibilities include:
• Resources for a take-back and recycling organisation.
• Promoting recycling and its benefits can incur costs (advertising, transportation, sorting etc.).
The benefits include:
• A well managed company that understands its impact on the communities in which it operates.
• Improved working conditions and higher motivation amongst employees.
• Meeting expectations of “green” customers.
• Positive publicity for the corporation.
In December 2004, Business Ethics magazine presented Dell with its Environmental Progress Award
for the company’s commitment to the environment and industry-leading computer recycling initiatives.
CONCLUSION
Dell’s success is based on its ability to meet and exceed the requirements of customers. The same
focus on business efficiencies and customer satisfaction helps Dell’s environmental programme to
conserve product energy consumption, reduce or eliminate materials for disposal, prolong product life
span and provide effective and convenient equipment recovery solutions. Dell’s philosophy is that “No
computer should go to waste” and key to meeting that goal is making customers aware that it provides
recycling services that are easy-to- use, safe and affordable.
ISSUES
(1) Why does Dell treat its stakeholders in a socially and ethically responsible manner?
(2) In your opinion, which of Dell’s strategies makes the most impact on the environment? Explain
your answer.
(3) Explain the importance of the “Energy Star” programme for consumers and businesses.