CBI GROUP ASSIGNMENT

1. INTRODUCTION 200 WORDS

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2. First research question (700 words approx.):

In order to succeed (or merely survive) in today`s turbulent business environment market by increasing levels of competition and ever-changing market conditions, enterprise have to change their processes to quickly and efficiently adapt to the changing needs and wants of the marketplace. (Varun, G. and M.Lynne, M., Business Process Transformation, 2008, M.E.Sharp, Inc. )

Companies are facing intense pressure in the business world today. These pressures are a combination of internal and external forces.

The external forces driving the market place include globalisation, increased competition, increased customer demands, a new eBusiness logic driving more transparent pricing, and the increased availability of information resulting from the global adoption of the digital economy. To cope with the increased demands placed on organisations by these external forces, companies must undergo a transformation if they are to remain competitive. (Volvo attitude survey over the internet. The use of technology to improve organizational effectiveness. Carl Turner. Netsurvey Europe)

?????????? However the new marketing paradigm is described and defined, and whatever the mix of

marketing approaches is to be adopted, to be competitive in today's 'high-tech', 'highspeed', and 'high-care' automotive marketplace, what is also required is a complementary agile marketing process to match the agile production possibilities that now exist. McKenna (1991) argued that the new marketing had to be flexible, to match the capabilities of the new flexible manufacturing: 'In a world of mass manufacturing, the counterpart was mass marketing. In a world of flexible manufacturing, the counterpart is flexible marketing. The technology comes first, the ability to market follows. The technology embodies adaptability, programmability, and customisability; now comes marketing that delivers on those qualities. (The new marketing. What does 'customer focus' now mean?. Victoria Little and Richard Brookes. ESOMAR. Research Methodologies, November 1996)

In 1999, the Volvo Group sold Volvo Cars to the Ford Motor Company. http://www.volvogroup.com/group/global/engb/volvo%20group/history/volvo_80years/Pages/volvo_80-years.aspx

Consumer needs

It is often said that while a consumer's need is satisfied by a product, his desires are fulfilled by a brand he (or she) chooses. Ultimately such needs and desires are formed and shaped by the values and priorities of each consumer. Without exploring the role of a consumer's value in shaping his needs and desires, we may never understand why a consumer made a product or brand choice in the market.

Let us assume a number of consumers with almost identical 'needs'. Quite often, we find consumers with the same 'needs' who choose different products and brands in the real market place. In this situation, each consumer's values, not 'needs', have a critical influence over what choice he or she makes and a purchase decision may strongly reflects core values of a consumer or, at the very least, is bounded by them.

Considerations of price and quality matter for consumers, but, at the same time, value

orientation also affects everyday choices of consumers in favor of particular products and brands. As such, it is not enough to identify 'needs' that a consumer is trying to satisfy, and both researchers and marketers have to understand 'values' that consumers take into account when they make a decision to buy or not to buy.

Applying two different approaches to the study of values, this paper will explore the different terrain of value orientation in a comparative context and measure the impact of value orientation on consumer choice such as the perception of premium price, brand preference and associated attitudes. (The push for holistic perspectives: from consumers to people. Ick-Sang Roh and Jay W. Shim. ESOMAR. Consumer Insights Conference, Milan, May 2007)

More than a decade ago, in The Marketing Imagination, Theodore Levitt (1983) wrote: 'The purpose of a business is to create and keep a customer.' It is a sentiment at the very heart of marketing, and one that is expressed by every management guru, from Tom Peters to Peter Drucker.

The dealers are trying to surprise and delight their customers with personalized attention, to ensure they mark their new car and servicing satisfaction scores closer to the perfect 10, and affirm they intend to buy another car from that organization.

What is a 'customer focus'? For several decades the following beliefs have been held as inviolate by supporters of `the marketing concept': that it is the customer who ultimately determines the destiny of companies; all organizations, whether in the private or public sectors, whether profit- or non-profit oriented, eventually will adopt the marketing concept as the fundamental philosophy underpinning their purpose; and those who don't will not survive.

Further, it has been argued that where marketing is everything and everyone in the organization becomes a part-time marketer, with their principal duty being to 'invite customers in', not treat them as 'targets to be got', marketing as a separate function might

disappear altogether (McKenna, 1995).

The new marketing approach is designed to ensure that an individual customer's needs are determined and met, if not exceeded, and that the organization is profitable in the process. It requires that the company both seeks out and gains new customers through constant innovation, and holds onto them through customer-care programmes that tie each customer to the company, and that are constantly improved. These factors are as valid today as they were in Sloan's era. However, it is a far cry from Sloan's mass-class strategy, and it may now be more difficult to implement successfully, given the declining loyalty rates prevailing in the industry. (The new marketing. What does 'customer focus' now mean?. Victoria Little and Richard Brookes. ESOMAR. Research Methodologies, November 1996)

Many commercial firms undertake research on consumer behaviour to help them segment customers and target their marketing.

Consumer approaches to financial services are varied and complex. Attitudes and behaviours vary from individual to individual, and may change according to circumstance. Despite this, we have identified three major influences on consumers financial decision making. Our research shows that consumers recognize these as factors that are genuinely relevant to them. This consumer recognition is important, since we want to find ways to make financial services more accessible to consumers. (Consumer needs research: Informing our future work)

????????????????? Safety is the top priority at Volvo. The driver compartment is ergonomically designed for stress-free operation. The incredibly sturdy and rigid vehicle structure ensures a superior body.

If an accident should occur, our aim is to reduce the consequences as much as possible.

Comfort levels are high in a Volvo Bus. Electronically controlled air suspension with independent front suspension and a rigid frame design makes for a reassuring ride on rough terrains and smooth road handling. A low noise level and comfortable seats are other important key factors ensuring a comfortable journey. The seats are available in a choice of three comfort levels, with a range of adjustment, upholstery and equipment such as head rests, footrests and calf supports. Large tinted windows provide good visibility all round. The climate on board is always pleasant with an efficient ventilation system of extremely high capacity, good air distribution and individually adjustable air vents for each seat. (Volvo 9400 inter-city coach)

Many commercial firms undertake research on consumer behaviour to help them segment customers and target their marketing.

The above theories relate to what happen in Automotive Industry such as Volvo. In recent years, there is an argument saying that Automative Industry is considerably controlled by high-risked competition, demanding customer and shrinking margins. These characteristics have forced car makers to focus on innovative features and design offers that customers are willing to pay for, while at the same time increasing time and cost efficiency. It is becoming pivotal for all automotive companies including Volvo Cars to organize and manage highly specialized and complex processes of innovation, comprising explorative domains such as design, technological development and safety and security features of the car. (2007 The Authors Journal compilation r 2007 Blackwell Publishing Ltd). The aim eventually is to be considered by consumers (Business Strategy and the Environment Bus. Strat. Env. 16, 202213 (2007) Published online in 25 January 2006 Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/bse.479). ). Alternatives to established technological paradigms need to become socially embedded (Hrd and Jamison, 1997; Newton, 2002 in Business Strategy and the Environment Bus. Strat. Env. 16, 202213 (2007) Published online in 25 January 2006 Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/bse.479). Alternative technological offers

must have a reasonable fit to the defining power of established technologies in (1) symbolic, (2) orga- nizational and (3) behavioural structures (Hrd and Jamison, 1997 in Business Strategy and the Environment Bus. Strat. Env. 16, 202213 (2007) Published online in 25 January 2006 Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/bse.479). As we all know, Volvo Car Corporation began its massive changing in 1990s. At that time the company went through quite dramatic changes to adapt the market condition and consumer needs (Henry Stewart Publications 0967-3237 (2002) Vol. 10, 3, 249-258 Journal of Targeting, Measurement and Analysis for Marketing). In general, Volvo show clear signs of explorative assumptions and low aspiration towards new technology, while Toyota demonstrates more enacting assumptions and high aspiration towards new technology. (Business Strategy and the Environment Bus. Strat. Env. 16, 202213 (2007) Published online in 25 January 2006 Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/bse.479). Volvo has clear several actions to create a customer orientation in a traditionally engineering-driven company. In the beginning, the efforts summarised under six headings: Implementing extensive total quality management (TQM) programmes: this

was necessary in order to achieve a higher degree of commitment from the employees. TQM programmes also help align the organisation, making it work to achieve common goals. Breaking down visions and goals into targets at a very detailed level, which is commonly called policy deployment or hoshin kanri. Volvos vision is To be the worlds most desired and successful specialty car brand. To be able to reach this, over 2,000 potential areas for improvement were identified, and quality teams were formed to focus on the 200 highest priority areas Altering Volvos view of the company, focusing on processes instead of functions, ie implementing process management. Previously, cars were sold down the chain from the plant to the marketing department, the importer, the sales company and, finally, to the dealer. This needed to be replaced by a holistic view embracing the entire chain from Volvo management in Sweden and the USA all

the way to the customer Widening the scope when viewing the customers: Volvo realised that trouble-free ownership is a function of much more than the production process A culture of openness. Employees perceived that the company must be doing quite well since they were improving year by year. The truth was rather the opposite and the employees needed to know about this. Volvo consequently abandoned its hush-hush approach to quality and customer data Measurement system for customer satisfaction, including the development of a complete measurement system covering all aspects of buying and owning a car. (Henry Stewart Publications 0967-3237 (2002) Vol. 10, 3, 249-258 Journal of Targeting, Measurement and Analysis for Marketing).

Volvo has made tremendous strides in recent years to move from being an engineering-driven Swedish company to a more customer-oriented global player. (Henry Stewart Publications 0967-3237 (2002) Vol. 10, 3, 249-258 Journal of Targeting, Measurement and Analysis for Marketing). During the two last decades, Volvo Cars has worked continuously to develop its R&D organization, transforming it from line to project to modularization to the current platform-based NPD organization. three formal processes control input to NPD: the Business evaluation process, the Technology cycle plan pro- cess and the process within the Concept phase. (2007 The Authors Journal compilation r 2007 Blackwell Publishing Ltd). In the mobile marketing, To introduce its new S40 car, Swedens AB Volvo developed a European mobile marketing campaign. Tergeted participants could view a video teaser of the car on their mobile phones, and then access the Volvo Web Site via emaillink, to see the reminder of the video. About one-third of the people downloaded the video clip onto their mobile phones, and half viewd the entire footage from the website (Fareena, S. (2005). The Coming Era of Brand In The Hand Marketing. MIT Sloan Management Review)

3. Second research question (700 words approx.):

It is helpful to have a general definition of each of the two concepts discussed in this paper. The value of descriptive customer profile and market segmentation in its definition of the salient characteristics of a target group, which are used to develop an effective marketing strategy. (Dr Bruce Ratner, 1999)

In general a customer profile consist two parts: who the customer is and what the customer does (Chi-Hong, Leung. 2009.) According to Shravan Miriyala Customer data profiling is the process of studying and analyzing data to validate it against expected data formats and values. Dr Chi-Hong Leung (2009) also think customer has two data one is factual data such as gender, age and salary, another is behavioral data such as purchased products and the amount paid.

Since the first seminal articles of market segmentation in the beginning of 1956 (ChiHong, Leung.2009), have been significant research undertaken in order to understand better market segmentation.(Sofia, Borjesson & Fredrik, Dahlsten. 2004) As a starting point, market segmentation is an important concept of marketing subject. (Smith, 1995) it based on characteristics of individual, with the advance of technology. It is common that data of customers are stored in the database for marketing purposes. (ChiHong,Leung.2009)

Reference: Chi-Hong, Leung. 2009. An Inductive learning Approach to market Segmentation based on Customers Profile Attributes, http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=d3b6d1c2-3e15-4bf1-9de8dec1e4f4aedd%40sessionmgr15&vid=2&hid=2

Sofia, Borjesson & Fredrik, Dahlsten. 2004. Management action in developing market orientation: a report from a customer knowledge project at Volvo Cars

Smith, W.R, 1995, Product differentiation and market segmentation as an alternative

marketing strategy.J.Marketing.

4. Third research question (700 words approx.):

The main reason for firms facing challenges is Globalization.

Globalization is the main problem that all firms face, large or small. Firms that want to survive in the 21st century must globally introduce themselves and should give tough competition to their competitors. In a wide range of industries from automobiles to food and clothing, firms face the pressures of global competition at home as well as in international markets. Choosing not to participate in global markets is no longer an option. All firms, regardless of their size, have to introduce different strategies in the broader context of world markets to anticipate, respond and adapt to the changing environment.

With respect to volvo, have to build its position in the international markets, establishing a strong local presence by developing new products and adapting to local tastes and preferences. Like other companies volvo also want to be recognised as one of the finest in its sector so they have to move away from country strategies and improve integration and coordination across national markets, and create core competencies and skills to develop a leadership position.

Increased competition in global markets is a challenge faced by Volvo at all stages of involvement in international markets. As markets open up, and become more integrated, the pace of change accelerates, technology shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition emerge, and competitive pressures mount at all levels of the organization.

The challenges of global markets imply that managers need to radically transform the organization and rethink the ways in which they respond to the new competitive landscape.

SHRM Strategic management is a process, concerned with strategy formulation and implementation of strategies. It is a field of study involving the design, selection, or evolution and management of organizational strategy. Decision making Action taking process Its aim is the survival and growth of those organizations that through their outputs have distinctive competencies, compared to other competing organizations, to produce outputs that serve society (Summer et al., 1990).

Staffing: Staffing is concerned with the recruitment, selection, placement, classification, evaluation, and promotion of individuals in an organization. Staffing is also concerned with appraisal and promotion of employees.

Objectives: Hiring individuals who are best qualified(based on knowledge, skills and abilities).

Performance: Performance of an employee is really important for a organisation. Every organisation evaluates the performance of an employee. They do so to know how good the employee is doing the task assigned to him.

Change management: Change is a continuous process, every firm has to undergo change to remain competitive.

Objectives: The main objective of the firm engaging change is to present their companies evolving

identity. This highlights that the company is looking forward to fulfil their customers or future customers needs and wants.

Open innovation and control: A case from Volvo In this case it is said that Volvo Group adopted the concept of open innovation and control. They took help from a telecommunication operator for providing innovation of vehicle services. In this case Volvo used its IT concepts to be innovative and have high level of control. So it is clear that Volvo do uses different strategy to remain competative.

Volvo R&D and HR department to improve communication Volvo has always been one of the finest automobile company. Volvo has always been dependent on its R&D activities. When Volvo cars was acquired by Ford in 1999, Volvo increased its R&D and introduced various different product lines. Volvo also restructured its HR department. They have formed HR departments at each unit and which further have smaller HR departments at each line department. They work in line specifc HR issues. Thus in Volvo HR unit is line oriented and a decentralised one. The reason behind this was to reduce the gap between line managers and co-workers. Hence to remain competitive Volvo main strategy was to organise its HR department in a way which will make communications easy.

Volvo change strategy (Focusing: Kalmar plant) Volvo understood that they have to employ change in their work and develop new strategies. The strategy used by volvo was scan the environment, by this company detected the importance of shifting trends and patterns thereby developing approaches both creative and future oriented. In Volvo's Kalmar plant people refused to work if there was no opportunity for personal growth and development. People here were not

asking for financial reward but for quality of working life. So Volvo used human centred approach for social and economic environment. But when the results were not up-to mark, management decided to refine the system and took more control on internal change.

Acknowledging, as Schon (1983) suggests, that resistance must be managed and controlled if productive learning and change are to be achieved clearly demonstrates that double-loop learning was occurring. In this Volvo used change management strategy.

5. CONCLUSION : 200 words

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