OPERATIONS MANAGEMENT
Part A
Reflection emerges as an integral part in the learning process. The process helps in understanding things in a better way. Through looking at things that have been studied at past, it is possible to understand the manner in which learning was carried out and the process that was involved. The purpose of this section is to reflect on the workshop group-work that had been carried out earlier.
How the Group Decided on the Theories to Use
In the assignment done earlier, RTD Tea was analyzed. RTD Tea is packaged ready to drink tea. In deciding the theories to use, the first decision was to apply the theories that had been learnt in class. In this case, the group did not allow the introduction of outside information. The group focused on the theories such as PESTEL analysis, Porter’s five forces, and Ansoff matrix. The use of the PESTEL and Porter’s five forces analysis helped the group in understanding the external environment concerning the product. Alternatively, the use of the Ansoff matrix was important in helping to devise strategies that can be used for future growth. Besides, the second decision concerning the theories to use involved the participation of every member. In this case, every member of the group brought in ideas, which helped in building a narrative concerning the product. The integration of ideas from each member was important in helping all individuals contribute to the analysis. Following the contributions of members, theories such as TOWS, stakeholder mapping, and 4V’s analysis were used. The use of TOWS was crucial in helping to match internal strengths with external opportunities in an effort to realize the greatest potential for success by selecting a better strategy (Kulshrestha & Puri, 2017, p. 144). On the other hand, stakeholder mapping helped in grouping the stakeholders, their interests and powers. Moreover, 4V’s analysis helped in understanding different aspects associated with the product.
Appropriateness of the Theories
The appropriateness of the theories used could be seen in the objectives realized. It can be indicated that the theories selected for the purpose of the analysis were appropriate since they helped in realizing the intended goals. For instance, one of the theories utilized in the analysis was TOWS. TOWS analysis helps in matching internal and external factors in order to identify the strategic options that can be adopted (Oxford College of Marketing, n.d). The use of this theory was appropriate to the analysis since it met the objective of connecting internal as well as external factors, which could be used in developing strategies that could assist in creating positive opportunities for the marketing of RTD Tea. The use of the TOWS analysis was an important learning opportunity as it helped in understanding how the external factors could be connected to internal aspects when marketing a product. Alternatively, the use of PESTEL and Porter’s five forces analysis was also appropriate in the assessment as it helped in understanding the external environment. From the use of the two theories, I learned how the environment can be associated with the marketing of a product in a marketplace.
Challenges Experienced in Applying the Theories
There were different challenges experienced in the application of the theories. One such challenge was picking the appropriate theory. It was difficult to select the right theory without interacting with the tutor on a face-to-face meeting. Failure to meet with the tutor on a face-to-face basis made it difficult for the group to make the right choice of the theories to choose for the analysis. Besides, none of the members of the group had experience concerning the industry that was being analyzed. Emanating from members of the group lacking expertise in the industry that was being assessed, it was difficult to apply the theories to the industry, but through the knowledge gained in class, it was possible to make the analysis. Time provided for applying the theories was also not enough. The time provided was exceedingly limited given the theories that were going to be applied to the marketing of the product. Internet has been considered to have profound effects on research as well as learning activities (Apuke & Iyendo, 2018, p. 6). In the analysis, the use of the internet was appreciated for helping in researching information. However, there was a challenge due to bad internet connections. Internet disconnections made it difficult to research the information the group was seeking. Furthermore, selection of the best tool to ensure effective communication was a challenge. Although Zoom was used by some members, the tool was not available to all.
Better Utilization of the Selected Theories
The theories chosen could have been better utilized. For instance, the relevance of the numbers used in the 4V profiles needed to be clarified. This could have been done in the speaker notes. Such a move could have helped in explaining the theory better in relation to the product being analyzed. Alternatively, in the four elements of operations strategy, detailed speaker notes could have been provided in order to explain the elements in a better way. Besides, the operations strategy matrix as well as Hayes and Wheelwright model could have been utilized to better show the tactics, which could be adopted in the marketing of the product. Furthermore, from the second decision, each of the members brought ideas for the analysis in order to build a narrative. However, this could have been made better by aligning the order winners and the market positioning strategies. This could have helped in focusing on market positioning strategies. Moreover, an augmented service should have been contextualized to the selected product for an enhanced analysis.
Things to Do Differently
There will be a need to spend more time in digesting the theories prior to the session in order to allow for deeper understanding of the course. In doing the analysis, time was limited, which means it was not feasible to give too much time to digests the theories before starting working on the assessment. This being the case, the assessment was done in a hurry. In the future, spending more time in the digestion of the theories will create a better opportunity for understanding the theories before applying them. Another thing that would be done differently is spending more time in the evaluation of theories. In the analysis, there was no time to allow the evaluation of other theories. In case there was time to assess other theories, there could be a better opportunity for deciding the use of other theories rather than focusing only on the ones that were used.
Other Theories in Better Addressing the Task
Other theories could have been drawn in better addressing the task. For instance, pull and push inventory systems could be applied to the analysis. Push systems is where the production of a commodity is based on an expected production plan and the information tends to flow from the management towards the market. On the other hand, pull system is where production is usually based on actual daily demand and the information tends to flow from the market to the management (Sarbjit, 2017, p. 492). An example of a pull arrangement is Just in Time (JIT) inventory system. The use of pull and push systems could be used in the task to establish, which process works best.
Part B
Marketers are not supposed to underestimate the value attached to loyal customers since, as clients keep returning to a business, they tend to bring new ones (Rawal & Upadhayay, 2017, p. 1282). Thus, building customer relationships that are enduring is a critical aspect that businesses should focus on. Marketers should understand the manner in which customer relationships tend to drive businesses and help in finding people who can believe in products or services of an organization. Building relationships with people who can understand the expertise of a business and who are excited about the products and services offered by an entity is crucial in helping an organization earn greatly. Therefore, there is a need for businesses to find ways through which they can build strong relationships with their customers. Honda is one of the companies in the globe that has focused on building strong relationships with customers in an effort to generate profits and ensure sustainability. The company is involved in the production of a broad range of motorcycles (Honda, n.d). Besides, the company is also associated with the generation of cars. This report will discuss the role of operations and marketing within Honda.
Benefits of Building Long-Term Customer Relationships
There are different merits that are associated with building long-term customer relationships. One of the benefits of the relationships to businesses is that they help entities in establishing their most profitable clients. In instances where there are long-term customer relationships, it is possible for companies to earn highly emanating from returning customers. Every time a business receives a returning customer, there is a likelihood of the entity obtaining new clients who can help in adding to the customer base. The stronger the customer base, the higher the earning that an organization is likely to be associated with. Besides, building long-term customer relationships help in supporting the brand of an organization. As customers remain loyal to a given brand, there is a higher likelihood of attracting new clients, who are also going to invite others to become associated with the brand. Thus, long-term customer relationships help in building a brand.
Building long-term customer relationships not only benefit businesses, but also clients. One of the benefits to customers is that they are in a position to get recognition by businesses. In instances, where there is a strong and long-lasting customer relationships, clients are recognized by businesses and they are likely to receive prime benefits such as after-sales services and can even have the opportunity of purchasing goods on credit. In situations where businesses understand customers, it is possible to trust that they will pay for commodities once they are sold on credit. Alternatively, through long-term customer relationships, it is possible for clients to know about the products and services that are going to be offered. Thus, they are in a position to give their inputs regarding the products and services that they need before they are provided for sale by an organization.
Operations and Marketing in the Company
Operation management is usually designed with the purpose of promoting organizational approach and guaranteeing productivity, social responsibility, as well as business ethics. Operations management is interested with the performance of an organization and ensures that an entity produces its products with efficiency (Slack, N. and Brandon-Jones, 2019, p. 4). For instance, lean system focuses on ensuring that goods are produced with efficiency through the incorporation of activities such as total quality management, operation improvement, and capacity planning. Operations management tends to also employ the aspect of enterprise resource planning (ERP). ERP is considered as a software mythology that permits and monitors the utilization of company resources in ensuring that there is effective as well s quality service delivery. Besides, the company is considered to use customer relationship management (CRM) in recording the expectations and feedbacks of customers (Frow, Payne, Wilkinson & Young, 2011, p. 80). In order to keep the data flowing quickly and mitigating risk, Honda is involved in executing cross-functional decision making amid its inter-branches. Alternatively, the entity is involved in the generation of different goods such as motorcycles, power products, and cars.
The company has utilized different strategies in bringing its products to the market. The entity has used a smart marketing strategy with an emphasis of creating a reliable image as well as trust amid customers. The organization has relied on the use print as well as television advertising in letting customers know about its products. Both digital and traditional approaches of promotion have been used in advertising its products and brand. Use of advertisements has always emerged as a key element of Honda’s marketing as well as promotional strategy. The company has always considered spending heavily on promoting its bike and car models in local markets. In most cases, the advertisements have been made in magazines and newspapers.
Apart from the use of print and television adverts, the company has also focused on the use of digital advertisements as part of its marketing strategy. Digital advertising has been considered an important aspect for every vehicle brand since it is possible to find a vast number of customers on the online platforms. Nevertheless, the company’s marketing strategy is not limited to the use of advertisements and promotions, but also utilizes sponsorship of key sporting events as well as social initiatives. The entity sponsors a broad range of initiatives across the globe in order to support communities and charities as well as personalities.
Alternatively, as part of its operations, the company is involved in corporate social responsibility. Through the company investing in corporate social responsibility and charity initiatives, it is in a position to build trust as well as a reliable image to its customers. The corporate social responsibility initiatives help in depicting Honda as a responsible brand. The company shows respect to its customers through social initiatives such as engagement in trash collection and supporting philanthropic calls. Such an operational move is critical in creating a strong relationship with customers.
Improvements That Should Be Made to the Strategies
From the above operations and marketing strategies used by Honda, there are some improvements that’s should be made in order to enhance customer relationships. One are is in the advertisements made. In an effort to maintain strong relationships with customers, there is a need to engage in the production of the products that are in line with the preferences of clients. In order to understand the preferences and desires associated with customers, there is a need for the organization to engage in surveys during its advertisements. For instance, on its website, the company should consider engaging with customers in order to understand their take concerning a given brand. Another place where the company can interact freely with its customers is in the social media platforms. According to Voorveld, van Noort, Muntinga & Bronner (2018, p. 38), advertisers are now turning to social media in their advert programs in order to drive digital engagement. Honda should also consider doing their advertisement campaigns on the social media platforms in order to drive digital engagement. It is through the engagement that the company will be in a position to establish strong relationship with customers as they share different aspects.
Besides, in the current world, most of customers are in a position to identify with the environmental concerns. This emanates from an increase in the knowledge base concerning how they can alleviate the dangerous effects of climate change. Thus, customers are now leaning towards companies that have the ability to engage in activities that protect the environment. Although the company is involved in philanthropic activities and contributing to the society through its social programs, there is a need to turn to the environment and get involved in activities that are considered green by customers. Through engaging in green initiatives, the company will appeal to different customers who love caring for the environment. This would help in maintaining strong connections with customers. Therefore, the company should consider seeking and integrating green initiatives as part of its corporate social responsibility.
Extent to Which Operations and Marketing Work Together to Build/Manage Customer Relationships
Operations and marketing should work together in a way that can help in building customer relationships. In the digital media, as the company markets its brands, it should also use strategies that are likely to build customer relationships. For instance, the company should use the digital platforms to get views of customers regarding the products that they would like having or the ones that are likely to match with their needs. Through such interactions, the company can be in a position to understand the products that relate with different groups and can use such information in ensuring that customers get the products that they prefer. Alternatively, when using sponsorship events in marketing its products, the company should consider that the occasions that they sponsor are the things that customers like having. In case the events sponsored are in line with the things that customers cherish, there would be a high likelihood of building long-term relationships with the clients. However, not all cases of the company’s operations and marketing are likely to result in building of customer relationships.
Challenges That Occur Between the Two Functions
One of the challenges that occur amid the two functions is lack of one task supporting the other. Not all operation and marketing activities will go along in building or maintaining customer relationships. Thus, there is a need to assess whether the functions are compatible in supporting customer relationship. For instance, when advertising, there is a need to establish the media, which is likely to foster good relationship with the company. When the digital media is used, there is a likelihood of engaging a large number of customers which means the company must be prepared to understand the likes and dislikes of the clients. Alternatively, another challenge amid the two functions is their incompatibility. Operating functions are very distinct from those of marketing. Their incompatibility may make it difficult to build or maintain customer relationships.
Disadvantages of Building Long-Term Customer Relationships
Long-term customer relationships are likely to make companies manage details of their clients in an effort to serve them better. Thus, businesses would be forced to use customer relationship management (CRM) in their operations. However, CRM is costly and would require an entity to use a lot of resources in order to uphold the records of customers (Kotler & Keller, 2016, p. 168). Therefore, a business will need to undergo an extra cost in maintaining the records associated with customers as a result of long-term relationship with clients. Besides, long-term customer relationships may be expensive since they require time and tactics to cultivate the connections. The relationships usually take time before results emerge. Alternatively, long-term customer relationships can make new clients to be overlooked or ignored at times. Hence, the relationships may work at the detriment of other clients in case they are not well-managed.
Reference List
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