Customer Relationship Strategy Case Study: Sainsburys

node Relationship Strategy model Study Sainsburysenquiry backgroundThis research physical composition is foc utilise outline fallowed by Sainsbury to maintain client descent. In this research paper we pass on go finished the different manners implemented by Sainsbury to cod proportion with a guest. In to years global grocery store comparisonship foc apply had gain grounded a business deal of grandness in every furrow. The guest relationship is not confined with service industry, now a daysmanuf do workuring industries too fallowing grievous relationship with their customers. The customer relationship management is applied by most of shapings because customer is the king in every business and he is the focalize point to provide the revenue to a advert-up. Customer relationship management is a transp atomic spot 18nt wall between the customer and organization. Customer relationship go away be cargonful based on the loyalty presenting by customer. So now freei ng to discuss ab fall out the system fallowed by Sainsbury to maintain customer relationship3. Organization backgroundSainsbury is a super market which give operates its business in retail sector from the year 1869. Sainsburys is started by pile and Mary Ann Sainsburys. The growth and festering of the Sainsbury was increased rapidly and leads to wizard of the major player in the retailers of UK. It started from case-by-case shop and now grown up to 900 retail outlets in the UK. It per take a shits its business operations with 180,000 employees.Sainsburys is the first supermarket which came in market with their own products like soft drinks, food materials and glossaries. It is one of supermarket which provides it go by online and the customer in the break in is in any case given the chance to bill their products. The major competitors of the Sainsbury are TESCO and ASDA. In the part of business, store deals with different range of products for all class of people in the so ciety. Sainsbury maintains good customer relations.Pest summary of Sainsbury Political Factors Taxation Sainsbury will get taxed based on their taxation code provided by the governmentbodies of taxation.Salary The employees are paid gamyly when compared to the different supermarkets.Working hours They will give only 2 hours per school children and 20 hours for thepeople aged above 18.They follow equal employment and wages act and they provide much health and safety toemployees.Economical Factors-Inflation RatesUnemployment LevelsIncomeLabour lawsSkill take aim of work forceSocial Factors Demographic TrendsLevel of educationCulture living stylesLifestyles and AttitudesTechnological factors Online obtain facilitySelf checkout tillsWidespread availability and high speed broadband internetelectronic Data Interchange4. Rational for the chosen topicIt is fixed to research on the above topic, because of academic, private and business spots. In academic carrier, research propo sal study is very appropriate subject for campaign and my succeeding(a) purpose .This research paper is focused schema fallowed by Sainsbury to maintain customer relationship. In this research paper we will go through the different methods implemented by Sainsbury to gain relation with a customer.In todays global market Customer relationship management (CRM) is one of the important simulated military operation to gain the relation between consumer and make-up. Customer relationshipmanagement will leads to the enhancement of popularity of the organization in the globalmarket. In todays market many of the establishments are implementing this customerrelationship management because customer is the centre point at every business. From thepast records make-up came to single opinion i.e. which organisation has good relationwith it customer will survive for long period in the market.5. Literature reviewAccording to (Mike Hoots), Customer relationship management is implemented by most oforganizations to know the potential customers of their business and their requirementsexpecting from organization side.The organization position in the global market whitethorn defined by the customer relations andtheir mirth. In todays scenarios customer is the king and he is one and only option forgenerating the revenue to the business. Customer plays a light upon role in almost of all theindustries which are service and manufacturing. The organization which is having goodcustomer satisfaction and excellent customer relationship will gain the business from themarket and the growth of that concomitant organization will be more when compared with otherorganizations which are giving less priority to customer relationship.6. enquiry questionsAccording to the reviewed literatures, they all mentioned that the important of customer satisfaction programme and in which ways it is gained in an organisation. but they did not discover that how the customer satisfaction programmes and customer satisfaction draws a path to a organisation toward success. Thus, this research proposal proposes to analyse to answer these questions1. What are the key activities take ond into Customer relationship management?2. What are the customer services provided towards customer satisfaction?3. To what extent does the Customer relationship management set in to Sainsbury pecuniary success?7. Research objectivesObjectives of this research paper are to present the evidence for some of the questions and togain theoretical knowledge on whats customer relationship management and its effects onthe business.Find out Sainsburys improvement in customer satisfaction and its relationship with alert customers?What are the best approaches to gain a relationship with a loyalty customer?What are the influences of customer relationship on the Sainsburys business and itsdevelopment?What are the important strategies implementing by Sainsbury in customer relationshipmanagement to return to its old market position in the retail sectors?8. MethodologiesMethodology Exploratory research method chosen for this research paperExploratory research will present the relationship which is existing between two differentvariables. to begin with starting with exploratory research we shall know close the advantages intaking this kind of research method and how it is more helpful than the other researchmethods.Exploratory defines the relationship between the two apparent factors and it will be moreconvenient method for this research. This research method is very flexible for providing a apprehensiveness during the end problems and opportunities. This research method willhelp in grabbing the strategy fallowed by sainsburys for gaining the relationship with theexisting customers and to attract the new customers from the global marketSainsbury and customer relationship management are the two distinct variables in thisresearch paper. This research will goes on what are the different strateg ies fallowed bySainsbury to maintain good customer relationship. Exploratory research will be comfortablemethod to carry this research.Data is garner from either sides of the organization. Inside of a organisation info is composed from employees and from the customers of Sainsbury That to data is collected fromthe employees who are twisty in maintaining customer relationship management. Data isgathered by introducing myself to the customer and explaining the objective of the projectand after had chat slightly the satisfaction and impression on the organization.Due to casual chat with customer and enquired by about some important things like cost, quality and services providing and finally collecting the training from employees about the customer number of visits to that particular shopLater i followed the passive style, in which i notice reactions of the customers for theservices providing by the employees in the Sainsburys.This research paper is mainly focused to gain a inst ruct understanding about the customerbehaviour this study was done more soft rather than denary research. Qualitativemethod was carried based on three types which are mentioned below.Face to face referenceSemi-structured interviewPassive styleFace to face Interview- The face to face interview was done with topic related employees inthe Sainsburys and later conducting a interview to a customer directly. This face to faceinterview is also called as In-depth interview.Semi-structured interview this is same as face to face interview but i distributed the pre-questionnaire concerning about the interview.Passive style- Passive style is the process of observing the customers without informing them.The customers are identified secretly when the employees are providing service.Apart from the three methods, fallowed the survey method.In the survey method i went through the secondary data like, conjunction website, news papersand the articles related to the Sainsbury.In this research pape r the data collected through both quantitative and qualitative methods. Inthe quantitative method the data is in the form of rime and which is collected by using the questionnaire. The qualitative data which provides the information in the form of descriptionwhich is collected by conducting the interview to customers and the employees ofSainsburys.This research paper call for a detail study so sampling questionnaire is supplied to the existing and new customers of Sainsbury and even collected the information orally by asking about the services provided by Sainsbury.Data collectionWhen conducting data collection, the un structured interviews will be used with Tescos employees and customers to evaluate customer loyalty programme and investigate the customer perspectives. The data concern with perspectives like thinking, satisfaction and believes. To collect these qualitative data, un structured interviews will be suitable than other methods. Because, we enkindle not have predeterm ined questions for the perspective which might change for place to place as nearly as person to person. That is wherefore it is decided to conduct un structured interviews.The data will be collected with selected sample units by asking one or two opening questions and conversations for ten or fifteen minutes. The questions will interact with some matters, for example, why Tesco introduced loyalty card?, why the customer prefer often to shopping in Tesco?, how the customers fell when using loyalty card in Tesco?, what are the other services provided to customer? Is the loyalty programme usable to customer? At the mean time, do Tesco extend to its purposes by that programme? This interview will be conducted once a week for five weeks in the Tesco in London. Every time will require different areas for research this is because the answers of customers will vary from place to place. And 3 sample units will be selected to investigate each time.6. Data AnalysisThe collected data from fifteen sample units by interviews, will be analysed to accomplish the objective of research proposal. The obtained qualitative data such as opinions, satisfaction and believes will be analysed to decide that really the customer loyalty programme brings customer satisfaction as well as customer satisfaction brings pecuniary success for Tesco within competitive market in UK.References Alan Bryman Emma Bell,2007, Business Research Methods, second edition, OxfordUniversity press, UK.Mc Burney White, 2007, Research methods, eighth edition, wadsworth cengage learning,USA.John gill and Phil Johnson, 1991, Research methods for managers, first edition, paul chapman issue ltd, UK.AD Jankowicz,2000, Business Research projects, third edition, Thomson learning, UK.Judith Bell, 2008, Doing your Research project, fourth edition, open university press, MCGraw hill education. UK.www.sainsburys.co.uk, 2010, Sainsbury telephoner overview, (Online), easy from URL http//www.j-sainsbury.co.uk/inde x.asp?pageid=12, Accessed on 27th -03-2010.www2.sainsburys.co.uk, 2010, customer and marketing, (Online), Available from URL-http//www2.sainsburys.co.uk/aboutus/recruitment/Store+Support+ join/Customer+and+Marketing/Customer+and+Marketing+Overview.htm, Accessed on 01-04-2010.awww.thisislondon.co.uk, 2008, Sainsbury defies the City with yet more gross gross sales growth,(Online), Available from URL-http//www.thisislondon.co.uk/standard-business/article-23496207-sainsbury-defies-the-city-with-yet-more-sales-growth.do, Accessed on 02-04-2010.www.oppapers.com, 2010, Customer relationship management, (Online), Available fromURL-http//w ww .oppapers .com/es s ays /Cus tomer- R elationship-Management/189988, Accessed on 07-04-2010.www.rgis.com, 2010, Sainsbury overview, (Online), Available from URL-http//www.rgis.com/assets/pdfs/casestudies/Sainsbury_Case_Study.pdf, accessedon 09th-04-2010.Corporate Strategy monetary Strategy and Cultural EffectsCorporate Strategy Financial Strategy an d Cultural EffectsIntroductionThe objectives of this paper are two-fold first, the paper looks at the role of monetary strategy in an organisation, the risks faced by an entity and how these risks affect the financial strategy second, the paper provides a reciprocation in relation to whether cultural factors have an impact on collective strategy, as well as whether it is beneficial for an organisation to be ethical. The paper begins by looking at financial strategy and organisational risks. It will later consider cultural and ethical issues.The role of financial Strategy in an Organisation.Financial strategy can be defined as the practices adopted by a firm to achieve its financial objectives. (Harvey, 2004). According to Calandro and Flynn (2007) financial strategy can be defined as an interdisciplinary methodology to more efficiently allocate resources within a firm to better or more economically quit customer preferences over time. The later definition stresses the need for c ustomer satisfaction indicating that shareholder tax creation depends on customer satisfaction. Although an organisations overall objective is shareholder value maximisation, it can only achieve this through high levels of customer satisfaction because it is only through high levels of sales that profit can be generated and high levels of sales can only be achieved through high levels of customer satisfaction.The main financial objective of a profit-making entity is to maximise shareholder value. (Ogilvie, 2005). Shareholder value is measured by the returns shareholders receive each year, represented by the dividend received each year, plus the chief city gains from capital appreciation, which is measured by the growth in the share price of the entity. In addition to maximising shareholder value an organisation whitethorn have other objectives such as satisfactory returns, high sales levels, high level of customer satisfaction, etc. (Ogilivie, 2005 Calandro and Flynn, 2007). Kapl an and Norton (1996) identify three different stages for a business and crease that each of these stages has its own unique financial objectives. The three stages include (1) rapid growth (2) sustain and (3) harvest. (Kaplan and Norton, 1996).At the rapid growth signifier the financial objective will be to achieve sales growth, achieve sales in new markets and to new customers, achieve sales from new products and services, maintain adequate using up level for product and process development, establish new marketing, sales and distribution channels. At the sustain phase the organisation will emphasize traditional financial performance measurements, such as return on capital employed, operating income and gross margin. Standard discounted cash flows and capital budgeting analytic thinking will be used to appraise investments although some companies may emphasise the use of more recent appraisal techniques such as economic value added and shareholder value added. At the harvest pha se, the main financial objective will be to achieve sustainable levels of cash inflows, in which case any investment project must(prenominal) have immediate and certain cash paybacks. (Kaplan and Norton, 1996).Financial strategy constitutes three main stages, which are temporarily linked in a financial feedback loop as shown in figure 1 below. These stages include (1) strategy manifestation (2) resource allocation and (3) performance measurement.An important aspect of strategy formulation is strategic homework, which according to Myers (1984) involves the process of deciding how to commit the firms resources across different lines of business.Based on the above discussion, one can observe that financial strategy plays an important role in an organisation. It enables the organisation to formulate its strategy, determine how to allocate its resources and enables the telephoner to measure its performance. Financial strategy enables an entity to make an assessment of its financial n eeds, the sources of support required to meet its objectives and fulfil its mission while at the same time planning for growth and stability. Financial strategy is an indispensible prerequisite for the formulation and development of the budget.Organisations often face a number of risks. These include liquidity risks, interest rate risk, business risks, financial risks, etc. these risks may affect the financial strategy in a number of ways. Financial risk for example is the risk that the social club may be unable to meet its commitments to repay interests and principal repayments on its long-term financial obligations. The effect of such a risk on the financial strategy is that the company will emphasise the use of internally generated funds and equity to finance long-term projects rather than issue bonds or other long-term debt securities. pursual rate risk may also affect the firms capital structure decision in that perceived high levels of interest rates on long-term debt may re duce the companys motivation to use debt financing. Foreign exchange rate risk may affect the companys prospects to expand production abroad, as well as the currency denomination of foreign contracts and sales. liquid risks may affect the companys short-term borrowing. The presence of high liquidity risk may warrant the company to resort to a just-in-time inventory system, reduce short-term debtors by maintaining more unappeasable short-term credit policies and factoring of accounts receivables.Effect of Cultural Factors on Corporate StrategyAndrews (1997 p. 52) defines incarnate strategy as the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organisation it is or intends to be and the nature of the economic and non-economic contribution it intends to make to its shareholde rs, employees, customers, and communities. Corporate strategy in effect maps out the businesses in which an organisation intends to compete in a way that focuses resources to convert distinctive capabilities into competitive advantage. (Andrews, 1997).The definition of corporate strategies emphasises the need for the organisation to satisfy the needs of all the stakeholders if the organisation is to achieve is overall objective of maximising shareholder value. Stakeholders include employees, customers and the communities in which the organisation operates. Employees, customers and communities therefore have a significant impact on the success of the organisation and thence on the corporate strategy of the organisation. In formulating corporate strategy, organisations need to identify and priorities strategic issues, which involves scanning, selecting, interpreting and validating information. (Schneider, 1989)To properly formulate its corporate strategy, an organisation must assess its organisational strengths and weaknesses, as well as its environmental threats and opportunities, which will enable it choose among alternative courses of action. (Hofer and Schendel, 1984) cited in Schneider, (1998). This indicates that an organisation must perform a SWOT (strengths, weaknesses, opportunities and threats) analysis prior to formulating corporate strategy. A number of factors have been identified as having an effect on corporate strategy formulation for example, Kets de Vries and Miller (1984) suggest that managerial personality and experience is an important determinant of the strategy formulation process Janis (1972) considers group dynamics as an important factor affecting the formulation of corporate strategy while Frederickson (1984) Lyles and Mitroff (1985) suggest that organisational structure plays an important role in strategy formulation.Schneider (1998) citing Schein (1985) notes that National polish could play an important role in strategy formulatio n as it derives from assumptions regarding relationships with the environment as well as relationships among people. Schneider (1998) argues that these assumptions will influence how information is gathered and how that information is interpreted within the organization. The strategy formulation process can therefore not be considered culture-free because information is embedded in social norms and acquires symbolic value as a function of a particular set of beliefs in a particular set of cultures. (Feldman and March, 1981).There are considerable differences in cultures across countries. Culture is defined as a system of shared assumptions that has developed over time to solve problems of environmental adaptation and internal consolidation. (Schneider,, 1998 p. 152) citing Schein (1985) Van Maanen and Barley (1983). Culture is expected to affect the process by which the environment is known and responded to because it is approximation to influence the way people perceive, think, feel and evaluate. (Schneider,, 1998). There are two sets of cultural assumptions that are purpose to be specifically relevant to the formulation of corporate strategy. These include external adaptation and internal integration. (Schneider, 1998). On the one hand, external adaptation refers to the relationship with the environment while internal integration on the other hand refers to the relationships among people.The forgoing indicates that cultural factors have a significant effect on corporate strategy and thus calls for a critical consideration of cultural differences especially for multinational companies that usually operate in a number of different countries with varying degrees of culture. A company therefore stands to gain a lot from being ethical. Companies that are perceived as being unethical may suffer from declining sales and thus declining profit margins. There are also differences as far as ethical issues are concerned. What may be considered unethical in one count ry may be considered ethical in another(prenominal) country. For example, Muslim communities do not eat pork meat and thus will consider a company that attempts to market pork related products as contravening their cultural believes. In addition there are considerable differences in relation to organisational hierarchy across countries. In countries where might distance is considered very important, information is likely to flow only from top to bottom and not from bottom to top. In addition, an autocratic form of leadership is likely to prevail in such societies. On the contrary, in a country where power distance is considered less important, there would be a two way flow of information and a democratic leadership style is likely to prevail. For example, Motorola faced a number of problems when it expanded its activities to South Korea. (Siegal et al., 2007). In like manner IKEA, the giant furniture dealer faced difficulties when it expanded its activities into the United States. (Grol et al., 1998).BIBLIOGRAPHYAndrews K. (1997). Resources and Strategy A Reader, edited by Nicolai J. Foss. Oxford University Press, ISBN 0198781792, 9780198781790Calandro, J. Jr., Flynn, R. (2007). On Financial Strategy, Business Strategy Series, vol. 8, No. 6, pp. 409-417.Harvey G. (2004) Financial strategy available online at http//financial-dictionary.thefreedictionary.com/Financial+strategyGrol, PC, Schoch, C, CPA. (1998). IKEA managing cultural diversity. In Cases in International Organizational Behavior. Oddou G, Mendenhall M (eds.). Blackwell Malden MA 88-112.Janis, I. L. (1972) Victims of groupthink, Boston Houghton-Mifflin.Kaplan, R. S., Norton, D. P. (1996), Linking the Balanced Scorecard to Strategy, California Management Review, vol. 39, No. 1, pp. 53-79.Feldman, M. S., and J. G. 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Egalitarianism, Cultural Distance, and FDI A New Approach available at http//ssrn.com/abstract=957306