CRM lessons from Ikea

We restricted ourselves to two potential furniture suppliers: a UK-based company,Habitat, with what appears to be a fairly conventional business model, which provides fairly stylish, relatively expensive furniture, and ‘kea, a Swedish furniture retailer with a less conventional business model, with much less expensive furniture, perhaps less stylish. I thought that we would probably end up buying nearly all our furniture from Habitat, whereas actually Kea was our main supplier.Whilst buying this furniture, a number of interesting points about Kike's business model became apparent: o Most of Kike's products are delivered as â€Å"flat-pack† self-assembly kits. Habitat also supply goods in that format, primarily it seems, to ease shipment (and reduce associated costs). However, Kike's products had been designed not only to reduce shipment costs, but also to minimize production assembly costs. Clever design had been used to produce goods which can be assembled by the purcha ser with minimal skill (use of a screwdriver and spanner only), from parts manufactured by machine with little human effort in the production plant.The design also ensured a robust, stylish piece of furniture despite the limited skills of the assembler. Much of the work involved in manufacturing the piece of furniture had been moved from the factory, to the customer. The reduction in cost had also been passed onto the customer. For at least this customer, there was also a significant feeling of achievement in assembling the table or chair. The result – a high quality piece of furniture at low-cost, but with a lot more work for the customer, but tit a resulting sense of achievement. There are differences in the retail outlet model as well. Habitat provides a conventional Main Street retail outlet, with room to display the goods, and attentive sales staff to discuss the furniture. Kike's out-of- town, large-scale outlet had the space to attempt something different. The products were displayed in a number of room mock-ups so that pieces could be seen in relation to other products, with ‘design stations' to help the customer to build their own design. Kea staff were on hand, but not as sales assistants, more to advise on sign, check whether stock was available, etc.This approach helps with the interior design aspects of selecting furniture, again for this customer at least, a difficult aspect of buying furniture. O Distribution: It is here that the most obvious differences with a conventional retail store occur: – You have to pick the goods from the warehouse yourself deliver (though there is a 3rd-party delivery service at a cost). All this may appear to be poor customer service, but again, it takes out a lot of cost from the distribution process, and this is passed on to the customer. Customer Direct Transactions: If you think about it for a minute, because Kea wont take orders, it is key that customers can find out if Kea has a particular it em in stock. (You don't want to go to an out-of-town store, to be told that what you've come for isn't in stock and the store doesn't take orders. ) Kea have recognized this and so provide an automated phone service to allow you to check whether the item you want is in stock. That item is number 1 in the automated service menu – first plus mark.There are a large number of stores I use which I wish provided a similar service. Next, I'd like you to think what ATA you'd ask a customer for if you were designing a ‘check-in-stock' transaction. Well, it's obvious isn't it – you ask for the stock code. Well Kea don't think it's obvious to a customer and when you use their service you recognize that they're right. Instead, they ask you for a catalogue page number, and then the price of the item you're interested in. They then tell you the items on that page at that price and you confirm which one you want.A pretty weird transaction by IT standards, but customer-friendly. If you're a customer interested in stock levels, you're very likely to have the catalogue open. The page number is meaningful to you, is short and easy to enter on a phone keypad (all digits). The price is also meaningful, again short and easy to enter (all numeric). No company I've ever worked for has simple stock-codes. Someone has designed this transaction with the end-user (the customer) in mind. What, if anything has this to do with CRMIn my view, a lot: o Kea have chosen to change from a conventional business model to reduce prices significantly, by placing a lot of burden onto the customer. CRM is not necessarily about better customer service, but about giving the customer a better value reposition, or ‘increased value for money'. O Their change in business model leads to a need for a new transaction for the customer. That transaction is designed to be simple and fast for the customer to use. In Ken's words (nearly) in this week' newsletter – they've listened to their customers.

Sexual Practices of the Mangaia essays

Sexual Practices of the Mangaia essays Mangaia is an island in the South Pacific where sexual practices are much different than in the United States. In Mangaia girls are raised and encouraged and sleep with multiple partners. The usual expectation is for a girl to have 3 or 4 boyfriends from the time she is 13 until she is 20. Every woman is taught at a young age how to achieve an orgasm. Males on the other hand are taught at a young age how to bring a female to an orgasm through oral sex. At 13 when a boy has had his training and been told how to do things he is then given a sexual partner that is an older and experienced woman. This woman teaches the boy various sexual positions and techniques slow down the arrival of his orgasm until the woman is able to reach her orgasm first. This practice is very foreign to me. It does not really disgust me or anything like that but I could not imagine having someone sit down and explain how to do many of these things. When I was 13 I probably would have thought that it would be pretty cool to be given a girl and told to have sex with her. I think problems would arise however in deciding who the father of a child was if a girl with multiple partners had a baby. In the United States, most people would view this as unhealthy or unethical. Many people would claim this to be morally wrong. Pre-marital sex is seen by lots of people here as a disturbing practice. Encouraging your daughter to have sex and being proud of her for having multiple partners would be very uncommon in the US. Most Americans would see this practice as being gross or irresponsible on the parts of adults in the Mangaia society. ...

drugs and alcohol in college essays

drugs and alcohol in college essays Drugs and Alcohol are a major problem on college campuses all over the world. Many college students participate in drugs and alcohol on a weekly basis and even daily basis. What goes through their heads when they participate in these substances? Why do they choose to take part in substance abuse? Is it because they want to get away from reality or is it just because it is the thing to do? Could it have to do with the way a person is brought up? Students have high levels of stress and anxiety dealing with class work, daily struggles, and social stress. It maybe that a major cause in the consumption of alcohol and drugs is because of the major stress factors. But on the other hand it could be a result of psychological problems. In my personal opinion, there are a lot of different reasons for drug and alcohol use and it depends on the individuals situation. Alcohol and drug use is increasing among young adults in the US. With this more and more university students engage in drugs and alcohol. A survey was taken from random students from ten universities. The survey method was used. The questionnaire was based on alcohol, marijuana, and other drug consumption. They included questions on smoking, drinking alcohol, and use of other drugs. The hospital anxiety depression (had) scale was used to measure anxiety and depression. Its main finding was that many university students are drinking above sensible limits and taking marijuana and experimenting with other illegal drugs. The same trend has been observed among young people in the United States. The survey also found that their sample of university students also had high levels of anxiety, which did not relate to drinking or drug taking. When asked why they drank alcohol, the commonly reported reasons were pleasure, habit, to increase confidence, anxiety/stress, and social pleasu re. It shows that it really depends on the person for which the reason to drink was. Whe...

What can the government do to reduce the level of unemployment Essay

What can the government do to reduce the level of unemployment permanently - Essay Example This percentage was equivalent to 197 million individuals (International Labor Office, 2012). Economists propose various theories and approaches towards reduction of the level of unemployment in various countries. The Philips curve, non-accelerating inflation rate of unemployment (NAIRU), natural rate of unemployment and general supply-side economics will be discussed in relation to a reduction of the unemployment rate. The concepts of supply-side economics developed and spread in the 1970s. These were a response to the Keynesian economic policy, particularly the failure of demand management in the stabilisation of the western economies during periods of stagflation at the time. The distinguishing factor of supply-side economics as a modern phenomenon is the argument on a favour of low tax rates for the working class (Wessels, 2006). Classical liberals at the time opposed taxes and government. Their claim was that every individual had a right to their own self and their property, and thus taxation was immoral (Wessels, 2006). Supply-side economists, on the other hand, argued that the collective benefit of jobs provided individuals an impetus for cuts in tax. In supply-side economics, macro-economists argue that economic growth can be achieved in a country by the government reducing the barriers of production and enabling people to produce and supply goods and services, and also invest in capital (W essels, 2006). According to supply-side economics concepts, consumers benefit from a high supply of goods and services at low prices (Atkinson, 2008). Furthermore, through investment and expansion of businesses, a country experiences an increase in the demand of employees (labour). Some of the typical policy recommendations for the concept are; less regulation, and low marginal tax rates to stimulate the production of goods and services (Atkinson, 2008). In supply-side economics, tax is viewed as a

Case study on Wilson Construction Essay Example | Topics and Well Written Essays - 1000 words

Case study on Wilson Construction - Essay Example The best option for the company is trying to increase its revenue base in order to improve the situation. Just having two or three projects supporting such a large purchase is not feasible and hence the company should market more often to attract more customers. In case these are two exhaustive options, the company should clearly select the option b because it is yielding a lower negative number and hence if the company wants to save its position it should try to adopt the option b. Money rates of returns do not reflect the time value of money. All economies face the phenomenon that the purchasing power of money constantly falls with the passage of time. Hence, inflation is needed to be taken into account in order to arrive at the real rate of return or rate of returns that are adjusted against inflation. The discounting factor of 23 percent has been adjust by multiplying it by 104 in order to arrive at the inflation adjusted discount rate to give better idea regarding the position o f the company and how much it should earn in order to safeguard its position against falling value of a dollar due to inflation and alternative projects that are available to a company. This way the money return has been adjusted to real return and provides a better picture of how much return the company needs to earn on its projects to safeguard the value of its wealth in real terms and to make sure that it is not losing money. If a company does not pay heed to the time value of money it cannot tell whether it has made or lost money and hence it is considered one of the fundamental concepts of finance and needs to be taken into account every time the company needs to make an important decision. This will make sure that the company’s resources are being used for earning proper returns and not just money returns that are not adjusted against inflation. Given the scenario it can be said that there are several factors that should affect the viability of ALII. These include how m uch saving using a faster crane would be made. All the company’s processes would become more efficient and it would save some money, but the question does not speak about it and if all of this is taken into account, the project’s NPV would very well be positive. Other than that, there will be other factors like financing options, providing the financer with a collateral, impact of this purchase on the taxes for example, the company can use diminishing balance method and charge high depreciation rates to its balance sheet in order to get a saving in taxes. All of this should be taken into account and the company should also hire some good finance managers and should not rely on amateur finance people who do not know about the jack of the problem and their discussion is nothing but layman’s observation of the issue. Hence, the best thing for the company is to hire some specialist finance people who have better information than the current participants of the meeti ng who do not

Multicultural Education Research Paper Example | Topics and Well Written Essays - 1000 words

Multicultural Education - Research Paper Example The paper analyses the migration of Filipinos to the US. Many Filipino-Americans have absorbed the dominant US culture, which prevents them from understanding the realities behind their own migration experience, decolonizing their thinking, and developing their unity with all poor people of color. Just before the end of the 19th century, America declared war on Spain. This was its first armed bid to make its presence felt in the Asia-Pacific Region. In reality, the Spanish-American war was not so much a war as the scripted transfer of the Philippines and Cuba to the US, without loss of American or Spanish lives. The â€Å"war† ended with the signing of the Treaty of Paris, in which the Philippines was sold by Spain to the US for the grand total of $20 million, or $2 per head for 10 million Filipinos. After defeating the Spanish colonial government, Filipinos were forced to wage another war, this time against the US invading forces. This time it was a vicious racist war that resulted in the death of â€Å"at least 1.4 million Filipinos† from the actual fighting and from war-related starvation and disease (San Juan). From the end of WWII to the early 60s, most of the Filipino migrants were Filipinos in the US armed forces and their families. There are now 1.2 million Filipino Americans in the US. Studying history is an important step, and I have started to fully appreciate my Filipino heritage. Understanding myself and the Filipino-American experience, I am starting to understand the reality of the experience of all the excluded in American society.

Foundations of Behavior Essay Example for Free

Foundations of Behavior Essay The field of psychology is expanding and credit is due to the numerous research studies being conducted. These research studies utilize different methods and each method has its own advantages and disadvantages. In this paper, five popular research methods will be compared based on their characteristics, objectives, strengths and weaknesses, research techniques, validity, and reliability. These research methods are case study, naturalistic observation, survey research, correlational research, and the experimental method. The case study is a focused study on a person or a specific group or a particular situation. Its research design involves five components, which are the study questions, the propositions, the units of analysis, the logic linking the data to the propositions, and the criteria for interpreting the findings (Tellis, 1997). Case studies have varying purposes. Some case studies are conducted to either confirm or challenge an existing theory, while others are carried out to describe either a special or an extreme case. A case study obtains information from documents (letters and newspapers), archival records (service records, survey data), interviews, direct observation (done when field visits are needed), participant-observation, and physical artifacts (instruments and tools). One of the most established techniques in case studies is called pattern-matching, in which the data is linked to propositions. The reliability of case studies is relatively high, especially when protocols are established. However, validity, especially construct validity, sometimes becomes questionable because the researcher might be subjective in his decisions and interpretations. This can be minimized by utilizing multiple sources, by setting up a chain of evidence, and by asking major informants to review a draft of the case study. The common criticism against case studies is that its results cannot be used to arrive at generalizations. But the greatest strength of case studies is that it can present an in-depth and holistic knowledge about a particular situation, group, or person. The naturalistic observation is unique from all other types of observation in that the researcher does not hinder, interrupt or influence the environment being studied. One of the vital things to consider in conducting naturalistic observation is to record as much detail as possible, which includes smell, sound, taste, time, place, number of participants, and feelings. This is why journals and a variety of writing materials are utilized. But the use of any recording device, such as video cameras, is not allowed because it violates the privacy of the observed individual. The reliability of this research method relies on the accuracy of observation. One technique of increasing reliability is to have several observers (Hesse, 2003). The greatest advantage of naturalistic observation is that it is considerably less expensive than other methods. But, the subjects being studied may act differently because of their awareness of the presence of the observer. This will significantly reduce the validity of the results (Piercy, 2007). The survey research is characterized by its major means of collecting information. The researcher usually goes out and asks questions. The questions can be oral or in written form. And the respondents can be chosen in many ways. Some respondents are chosen at random while others must possess certain characteristics. For example, if a survey research is about elementary teachers, then a high school teacher will not be asked to answer the questionnaire. The techniques involved in survey research lie in the analysis of the collected data. The reliability and validity of survey research are affected by several factors, such as the quality of the sets of questions or the questionnaire, the amount of data collected, and the accuracy in using measures of central tendencies and variability. Ideally, the questionnaire must be standardized. Greater reliability and validity is achieved if the sample represents a greater part of the total population. One advantage of the survey method is that it is relatively cheap and easy. Unfortunately, it is also subject to human error and biases (Government of Saskatchewan, 2002). The correlational research is essentially the discovery of a relationship between two variables. Unlike the previously described methods, correlational research is quantitative in nature. The different techniques used in a correlational research are regression and prediction, multiple regression, factor analysis, and systems analysis (Davis, 2004). The greatest advantage of using this method is that its results can be used to formulate predictions and generalizations. This is due to the nature of the research techniques. But the greatest danger of this method is to over-generalize. It must be remembered that an established relationship between two variables does not mean a cause-effect relationship between them. If a researcher wanted to establish a cause-effect relationship, then the research method to use is the experimental method. Similar to the correlational research, it is concerned with variables, which can be either independent or dependent variables. The independent variables are usually manipulated so that there will be two groups being studied, the experimental group and the control group. These two groups have the same characteristics except for that one variable which is being tested. The difference between these two groups can be found in the dependent variable. The reliability of this method is increased by conducting the same experiment for several times. Its validity lies in the accuracy of the procedures and the careful handling and analysis of results. The greatest advantage of the experimental method is that it can present an explanation to a certain phenomenon. But it takes great skill and experience on the part of the researcher in order to conduct a good research experiment. One problem of experimental method is the issue of ethics in conducting experiments using human subjects. Any of these research methods can be utilized to examine an issue or phenomenon in psychology. The basis of choice usually depends on the goal of the research. The task of the researcher is to maximize the advantages and minimize the disadvantages of the chosen method. Bibliography Davis, J. (2004). Correlational research methods. Retrieved October 12, 2007 at http://clem. mscd. edu/~davisj/prm2/correl1. html Government of Saskatchewan. (2002). Psychology 20: Social Psychology: A Curriculum Guide for the Secondary Level. Retrieved October 12, 2007 at http://www. sasked. gov. sk. ca/docs/social/psych20/support_materials/faqnaturalistic_observation. htm Hesse, B. E. (2003). Issues in naturalistic observation. Retrieved October 12, 2007 at http://psyc. csustan. edu/bhesse/psy2020/Lectures/Fall03/p2020U2L5. pdf Piercy, J. (2007). Research methods. Retrieved October 12, 2007 at http://courses. cvcc. vccs. edu/Psychology_Piercy/research_methods1. htm Tellis, W. (1997). Introduction to case study. The Qualitative Report. 3(2). Retrieved October 12, 2007 at http://www. nova. edu/ssss/QR/QR3-2/tellis1. html