Team Three Operations Project: Ford Motor Company

Ford Motor Company is a leading global manufacturer of automobiles with operations around the world. Ford was a leader in early automobile manufacturing processes such as the moving assembly line. This paper will describe various operations used by Ford such as inventory control and forecasting. It also includes in-depth explanations of Ford’s use of specific project management strategies as well as quality control management procedures. The research will show how Ford Motor Company operates and what strategies it uses most.

Ford Motor Company Background

History of Ford Motor Company

The international automobile manufacturer Ford Motor Company was founded in the year 1903 and then reincorporated in 1919 (The Editors of Encyclopædia Britannica, 2017). The company started with Henry Ford and eleven investors but then was taken over by the Ford family (2017). Ford went public in early 1956 selling common stock (2017). Ford was a leader in mass production for manufacturers and started its mass production processes in the early 1900s (2017). A moving assembly line for automobiles had never been used until the Ford Motor Company integrated it in manufacturing in 1913 (2017). Earnings were raised significantly to encourage workers to increase their productivity (2017). Ford Motor Company’s history is one of manufacturing and management innovation.

Figure 1. Image showing the world’s first moving assembly line for automobile manufacturing. The Editors of Encyclopædia Britannica, 2017

The Editors of Encyclopædia Britannica say that “by the end of the 1920s, Ford had more than 20 overseas assembly plants in Europe, Latin America, Canada, Asia, South Africa, and Australia” making them the most widely known name in automobiles around the globe (2017). Ford acquired Lincoln in 1922 and started making Mercury in 1938 (2017). Luxury lines such as Aston Martin, Jaguar, and Land Rover were acquired in the 20^th century. Financial difficulties occurring in the 21^st century led to the selloff of these brands (2017).

In late 2008, the US government offered financial bailouts to the “big three” automobile manufacturers (2017). Ford avoided economic failure along with growing sales the following year (2017). More recently, Ford has expanded into creating innovation to transform the way the world moves. “Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services” (Reuters, 2018). Ford is working to move forward and solve future transportation issues.

Industry classification

Ford Motor Company is placed in the North American Industry Classification System (NAICS) as Automobile Manufacturing with the code 336111 (Morningstar, 2018). The Standard Industrial Classification (SIC), United States government industry classification, states Ford belongs to the category Truck and Bus Body Industry as well as Motor Vehicles and Passenger Car Bodies with codes of 3241 and 3711 (2018). International Standard Industrial Classification (ISIC) classifies Ford as a Manufacturer of Motor Vehicles with the code 2910 (2018).

Customers served

Ford provides inventory to Ford dealerships for sale to retail customers (Reuters, 2018). Other customers served include fleet customers. Dealerships sell fleets to governments, rental car companies, and commercial fleet companies (2018). The Ford brand is sold all over the world: Asia Pacific, Europe, North America, Central America, South America, Africa, and the Middle East.

Products and Services

The warranties offered by Ford are meant to cover all of their vehicles except the F-650/750, Hybrid and Electric Vehicles. The Ford approach to a warranty program is designed to empower the network of dealerships to complete the work offered by the program. According to the Ford Warranty, the terms of coverage are “Basic Warranty of 3 years / 36,000 miles” (In Manufacturer Warranties, 2017). This is comparative to the competitors warranties, such as companies like GM and Honda that offer 3 years / 36,000 miles warranty for whichever comes first. Other terms and conditions listed are the powertrain warranty which is “5 years / 60,000 miles” (In Manufacturer Warranties, 2017). This compares equally to Honda but is less than GM and Dodge. GM is offering a “5 years / 100,000 miles” warranty (In Manufacturer Warranties, 2017).
New Vehicles, Cars, Trucks, Electric Vehicles
Ford has introduced new models of their cars and trucks over the years. According to Car and Driver, “Ford’s first F-150 Raptor hit like a meteorite when it made its debut for 2010—sudden, spectacular, and surprising” (Sutton, 2017.) “Lighter, meaner, and ready to prey on smaller, weaker trucks” (Sutton, 2017). A few of the notable features of this new vehicle include that “it’s also more thoroughly engineered as a special vehicle unto itself; Ford has given it a dedicated chassis and powertrain to go with the special bodywork” (Need Citation). This new F-Series has contributed to the 896,764 vehicles sold in 2017 which is a improvement over 2016 where only 820,799 units were sold according to Ford Authority (Ford Authority, 2018).
Performance Measurements

There are many performance measurements that can be used by Ford to better the company. “He who tries to measure everything measures nothing because it is impossible to focus effectively on ‘everything’” (Levinson, 2011). Ford went on to better explain this by stating the following:

You can waste time, you can waste labor, and you can waste material—and that is about all. You cannot waste money. You can misuse money, but you cannot waste it; it is still somewhere…. Time, energy, and material are worth more than money, because they cannot be purchased by money. Not one hour of yesterday, nor one hour of today can be bought back. Not one ounce of energy can be bought back. Material wasted, is wasted beyond recovery. (Levinson, 2011)

The listed metrics in the performance indicating or KPIs include waste of human time, waste of product time, waste of materials, and waste of energy. These were identified by Ford nearly 90 years ago. “Frontline workers can easily recognize the need to initiate corrective action or proactive improvement when they find themselves waiting” (Levinson, 2011).

Production Performance Measurements

The performance metrics for the Toyota production systems (TPS) include the seven wastes. These wastes are waiting, transportation, processing, waste motion, cost of poor quality, inventory, and overproduction (Levinson, 2011). “By 2017, Ford will increase its global flexible manufacturing to produce on average four different models at each plant around the world to allow for greater adaptability based on varying customer demand” (Corporate Ford, 2017). Also in 2017, virtually all Ford vehicles will be built off nine core platforms, boosting manufacturing efficiency, while giving customers the features, fuel efficiency and technology they want anywhere in the world (Corporate Ford, 2017). Ford’s President and CEO states “our plan for creating value going forward is simple and straightforward: continue our expansion from an auto company to an auto and a mobility company” (Corporate Ford, 2017).
Quality Management

Although the concept of Total Quality Management (TQM) began under the original

Henry Ford himself, “Quality People, Quality Products” (Scheid, 2011) became the mantra of

Ford Motor Company when they implemented a much more effective TQM in the early 1980s through the 1990s. The need for an improved TQM came after Ford posted $3 billion in losses between 1979 and 1982 (Gabor, 2001). TQM is a customer based methodology that looks for customers to tell the companies what defines quality products. Ford had struggled with declining sales, and the TQM program was put into place to help turn around the company and regain lost sales and loyal customers. There are ten steps to TQM:

1. New strategies must be investigated aggressively.
2. Research your customers. Know their needs and wants. Determine who your             customers are and gather information through surveys.
3. The customers will tell you what quality products are. Listen to them!
4. Prevent loss, don’t correct it! With preventive measures to ensure fewer quality issues, there is way less cost and more streamlined approaches.
5. Cut the waste. Lessen the amount and causes of waste. Anything that does not apply to the immediate goals of the project at hand is considered waste.
6. Keep moving. Improvement processes will continue indefinitely. Stopping after a small financial and quality improvement defeats the process of TQM.
7. Stay structured. Staying on a structured path minimizes time and man hours loss on when or how to improve the process.
8. Streamline products. Fewer models of  products will help keep the focus on quality.
9. Balance is important. All areas need equal time as they all need to work together to produce a better quality final product.
10. All moving parts of TQM need the improvement strategies implemented.

With the implementation of TQM, Ford had turned around the company in a quick amount of time and by 1986 had become the leading American car company(Gabor, 2001). Following on the success of the implementation of the ten steps of TQM, Ford kept up its run of loyal customers and profits into the early 2000s. They had indeed come back from the dead so to speak to become the essence of the American car company by having a high customer satisfaction rating. However, one of the keys to TQM is to not rest on improvements. In the mid 2000s, Ford had another crisis of events that was leading to a steep decline of customer happiness and satisfaction that lead to another mindset change on how to achieve goals and turnaround the company.
Project Management

Having turned around the company with TQM in the 1980s through the 1990s, Ford had neglected to keep on the quality line of thought and had rested on its laurels. This was now coming back to bite them. The reputation for quality had been deeply damaged in the mid-2000s with a series of events including rollovers of its Ford Explorers with Firestone tires to a vast amount of recalls on numerous models to extended delays in getting new models out to the public. Ford, according to customer satisfaction surveys done, had once again fallen behind the other American car companies in satisfaction and loyalty. Realizing that they had a major issue on their hands, Ford went back to the foundation of their resurgence last time, embracing quality and the principles of TQM. However, as time changes and so does metrics on how to measure quality, it was quickly realized that they needed to update the TQM standards in order to accomplish their goal. Ford decided to employ a new quality strategy based on the 6-Sigma process which Ford called Consumer-Driven 6-Sigma. The projects are selected on three main criteria:

1. Must relate to customer satisfaction (Paton, n.d.).
2. Must reduce defects by at least 70 percent (Paton, n.d.).
3. Each project should average $250,000 in cost savings (Paton, n.d.).

Although difficult to define exactly, the life cycle of Ford’s Consumer Driven 6-Sigma is known as the DMAIC cycle and is broken down in the following steps:

1. Define. Ford contacts customers and finds what matters to them. The size, timeframe and potential financial gains of the project are discussed agreed on.
2. Measure. Process measures are developed to evaluate the performance of the process.
3. Analyze.  Analyze the data to find the issues and pinpoint solutions to the issues be it a singular issue or multiple problems at different areas of production.
4. Improve. Discuss all solutions to the original problem and pick the one that best fixes the issue, such as,  the cost-benefit analysis and implementation plan.
5. Control. Sustain the gains that have been made and put into place procedures to ensure continued focus and implementation of the final solution.

No 6-Sigma project at Ford is considered finished until the entire DMAIC cycle is complete, and Ford can audit the results to see the effect on customers and the bottom line (Paton, n.d.).

To ensure the quality and success of the Consumer Driven 6-Sigma, Ford had developed four different levels of personnel that are responsible for the implementation and completion of the process. They are the following:

1. Green Belts. Green Belts help Black Belts get the projects done faster.  Green Belts are divided into technical, manufacturing and transactional.
2. Black Belts. Black Belts are assigned full-time to the Six Sigma process. They are in charge of define, measure, analyze, improve and control cycles.
3. Master Black Belts. They have tier-one or tier-two rankings which are the highest level of performance appraisal in Ford. They help mentor and support Black and Green Belts in whatever means needed.
4. Project Champions. This position is usually a manager that work in conjunction with Master Black Belt to pick Six Sigma projects and provide the resources to ensure the success of the projects throughout the lifecycle.

The results of Ford’s commitment to quality with the use of the Consumer Driven 6-Sigma and implementation of the DMAIC cycle have been tremendous. According to Debbie Yeager, director of Consumer Driven 6-Sigma, Ford has documented 2 billion dollars in cost-savings from the 6-Sigma initiative since 2000.

Inventory Systems

Ford Motor company’s inventory system was revamped roughly twelve years ago by Alan Mulally. Mulally really put a focus on narrowing down the supply chain from Ford plants to the dealer’s lots. The main focus was to find out what each dealership specifically sold well and how to predict what cars were going to be sold. With the implementation of the new system it saved Ford dealers about $90 per vehicle in storage fees and reduced trading amongst dealers by 30-40%.

Ford Motor Company, SageTree Inc. and Teradata, a division of NCR Corp. , today announced that they have completed the implementation of SageTree’s Supply Chain Performance(TM) Suite (SCPS) of applications to improve the flow of service repair parts through Ford’s North American distribution network, thereby improving customer service and reducing costs. This marks an important milestone in the four-year contract among the companies to deploy a world-class inventory monitoring and alerting system. (PRNewsWire, 2005)

SageTree’s system is designed to give an overview of the supply chain. The system provides the user with tons of details, including a daily analysis, historical trends, and predictive information about the process. With all of the information it allows companies to see the trends in their products, and it allows them to see where they can reduce costs in their supply chain. This is very beneficial for Ford because with this information, it will allow them see what plants they need to temporarily shut down.

Financial Analysis

According to the financial highlight reported from Ford Motor Company, operating margins, cash flow, and net incomes decreased from the year 2015 to 2016. Operating margins decreased 1 percent from 2015 to 2016. Operating cash flow was 7.3 billion in 2015 and decreased to 6.4 billion in 2016. Overall net income decreased greatly from 7.4 billion in 2015 to 4.6 billion in 2016 (Financial Highlights [image], 2016). Despite the decreasing numbers, Ford still manages to pull off their second-best year ever. According to 2016 Annual Reports, “Overall, we maintained a strong cash and liquidity profile including automotive cash of $27.5 billion and net cash of $11.6 billion” (2016 Annual Reports, 2016).

Figure 2. Financial highlights in billions for Ford 2015 and 2016. [Image] Ford Motor Company

Ford continues to keep up with competition and keep their numbers high despite the challenges and decreasing numbers. Looking at a five-year overview of Ford Motor’s overall finances, they increased sales/revenues 9.86 percent from the year 2013 to 2017 (Ford Motor, 2018). Net incomes fell to 1.23 billion in 2014 but rose back up to 7.6 billion in 2017. While Ford is not number one in competing for the top against General Motors, their numbers are on the rise. Refer to the chart below for Ford’s overall net income year 2013 to 2017.

Figure 3. Ford’s net income in billions for 2013-2017. (Ford Motor Co, 2018).

Facilities

“The company currently builds around 6 million cars a year at 70 plants around the world, drawing on an annual volume of 35 billion parts” (Bowman, 2012). Currently Ford Motor Company has 24 plants in the United States of America. Ford invests lots of money into their operation plants. “Ford Motor Co. will invest $1.2 billion in three Michigan factories to prepare for production of the all-new Ford Ranger and Bronco, and to support the company’s expansion into mobility” (Thibodeau,2017). These investments are going to make significant improvements in the plants. Ford Motor Company continues to invest money into their plants and create new ones. Ford is aware of the trends in their vehicles; when specific models are not doing well on the dealer’s lots, Ford stops the production of those vehicles at the plants.

Ford said the Cuautitlan assembly plant that builds the Fiesta would be idled for three weeks. The Hermosillo, Mexico plant that builds the Fusion and MKZ and the Flat Rock, Michigan, factory that assembles Continentals and Mustangs will be idled for two weeks each. The Michigan Assembly plant that builds the Focus will be idled for one week and the Kansas City assembly line that builds Transit vans will be down for two weeks. Ford did not give dates for the temporary shutdowns. (White, 2017)

Forecasting

Ford Motor Company uses many different forecasting methods to help determine consumer consumption. Like many businesses, Ford relies on social media to help forecast customer trends, social impacts, and economic shocks. All of these can directly affect the future of manufacturing sales and productivity. With being able to predict sales and consumer interest from social media, Ford can help supply the dealers in adequate time for buyers.

According to an article in 2010 from EveryCarListed.com, Ford Motor Company determined the great impact of social media with forecasting models. The issue arose in 2010 with a 60-70 day supply time of the vehicle named Taurus. Ultimately the goal is a 30 day supply time for obtaining parts and inventory. Facing new obstacles, it was determined that using social media such as Facebook, Twitter, YouTube, and etc. would help better predict the incoming sales and purchases from Ford Motor Company. This helps the company prepare for the new demands of customers while avoiding misjudgments from automakers.

Not only does social media tell  how much to supply of a product but also the demands wanted by consumers. “In phase one, Ford lent European-spec Fiestas to 100 U.S. consumers who chronicled their experiences and posted their impressions of the vehicle using social media sites including YouTube, Facebook and Twitter. Ford’s group vice president of global marketing Jim Farley said, ‘We have 100 customers and they all have friends, and they told us exactly what they would buy’” (EveryCarListed, 2010). With the new methods in place, Ford can meet the needs with their new release the Ford Fiesta and accompany the customers “wants” with the use of social media forecasting and feedback.

Continuing to look for additional resources, Ford Motor Company also recalls previous sale history, purchases, and inventory control for planning methods. Advances were made to help aid the area of planning by using a global SAP program in between markets to help provide automakers with inventory supplies. This global SAP program covers “service parts planning and purchasing, a warehouse management system (WMS) and distribution to dealers” (Ludwig, 2016).

With different global markets, comes different approaches of the SAP system to help better aid customers. While in the European market, they use the program to run retail inventory management, controlling the amount of inventory placed on a dealer’s shelf. This system has been implemented in other countries besides the European markets: China and Asia. While in the United States, there is a different approach to inventory planning. There is a plan to hold 95 percent off-the-shelf parts for customer walk-ins. o determine which dealer should implement this plan, Ford does an overview of those who live in the area and what the primary vehicle is to better plan for the demands for inventory.

Having resources to change the forecasting and planning methods are always great, but in today’s market, it is ever changing. With the new technology, safety regulations, customer trends, and economic shocks, Ford Motor Company still has many obstacles to face with each new process in place to help better forecast. Social media has many strengths but also weaknesses as well when it comes to forecasting. Adding new processes or techniques to help better aid the planning of inventory come with a small price to pay: trial and error. Although it is not ideal to have an error with predicting sales, inventory supplies or customer trends, it is important to keep improvising solutions to help better planning for the changing market.

“The analytics organization has recently started to work with FCSD to improve on its more traditional forecasting methods. ‘To be frank, we are just getting going, but we think the project has great potential,’ Paul Ballew global chief data and analytics officer for Ford Motor Company” (Ludwig, 2016).  Ballew is referencing an approach utilizing the Ford Customer Service Department to help better plan and service Ford customers. In this example it shows the new perspective, Ford is receiving by using this method but also needs more provisions to help better assist the company. Planning, forecasting, and scheduling all come with great achievements but must be as diverse as the market it supplies.

Technology

Enterprise Resource Planning (ERP) used by Ford Motor Company in the manufacturing setting is Aptean’s Activplant. This program “collects and analyzes data from the plant floor, providing insight and intelligence to help drive efficiency improvements” (Aptean, 2014). Having this process and program provides insight to manufacturing performance. “The solution makes every production “event” available for immediate response from operators and supervisors, providing a first-hand understanding of the reasons for production peaks and valleys so companies can confidently plan for expected results” (Aptean, 2014). By having integrated systems such as Aptean, it helps Ford Motor Company create better quality goods and services without paying a high price.

Another big contributor to Ford Motor Company is Oracle programing systems. Just recently Ford and Oracle proposed an agreement of the Oracle HCM Cloud. The cloud is designed for team experience focusing mainly on Human Resource files and applications which include payroll, records, reviews, etc. By being able to have this flexibility it better suits the company on a global and financial level. “The cloud offers a single platform to access employee records and information while also helping HR professionals cut costs and save time so they can focus on more strategic decision-making and less on paperwork” (Kimberling, 2017).

Not only does Oracle help with Human Resources, but it has also provided an advantage on the manufacturing floor in previous years. “Oracle has been the major player when it comes to ERP systems and as studied it the report given for assignment in the mid-1999 oracle helped Ford open a joint venture Autoexchange which allowed Ford Motors to do B2B that is online” (Patel, n.d.). Unfortunately, Oracles use on the production floor “Everest” was discontinued in 2004 due to poor performance. Being a strong key component to Ford’s purchasing Oracle determine to stay loyal with working with Ford’s IT for better fit programming software.

Supply chain management for Ford Motor Company in recent years have been taking a new approach to the supply chain industry by implementing the green or environmentally friendly process. Items that are expected to be decreased are the reduction of carbon emissions, conserve water and energy, and cutting down on waste too show the significance and determination, Partnership for a Cleaner Environment (PACE) was initiated to Ford’s strategic suppliers. Ultimately giving the best practices and tools to perform a green performance. “PACE began as a pilot in 2014 with just a handful of key suppliers and has now grown to include more than 40 suppliers, which represent 1,100 manufacturing sites in 40 countries across the globe” (Lacefield, 2017). With this new process in place, Ford has seen dramatic changes through the supply chain management system providing projections such as reduce carbon emissions by 500,000 metric tons and an estimated 550 million gallons of water saved.

Focusing on the supply chain management itself, Ford helps suppliers with ensuring an open communication relationship; helping solve supplier problems and working together towards solutions. Program used to help the supply chain management process is Aligned Business Framework (ABF) used for purchasing. This ultimately helps by including phased-in upfront payment of engineering and development costs, extended sourcing and data transparency to Ford and suppliers. Providing suppliers with a “macro” management system from Ford rather than a “micro.” By doing so, suppliers must “ensure proper working conditions and environmental management systems throughout their value chain” (United Nations Global Compact, 2018). Which add to Ford’s overall goal of creating a better working environment for everyone involved in their production and contributing to environmentally friendly efforts.

Currently supply chain management statics can be found on Ford’s company website giving visual displays of “Working Conditions Training and Assessments, Total Supplier Sites Trained/Retrained in Sustainability Management, and Total Purchases From Tier 2 Suppliers” (Company, 2016/17). All providing detail descriptions of countries overall contribution, and previous years analysis.

Materials requirements planning for Ford is collaborated by Material Planning & Logistics Teams to provide flow of materials and vehicles to global customers at affordable costs. These teams use MRP II to help meet inventory demands across the global, this is a similar system to MRP I but is more sophisticated and can handle high volumes of inventory data. The MRP II can “quickly modify schedules, track production, and fix quality slippage” (Oz, 2009). Using this system helps improve quality and production on the assembly line.

Ford has been known to implement the use JIT inventory to increase inventory turnover. The JIT system is known as just-in-time inventory, adopted by many in the automotive industry. A process that requires management or purchasers, to plan and schedule inventory based off production. Although just introduced to Ford, this system still has various stages to be completed before full JIT systems is in takeover of Ford’s inventory.

Ford uses Project Execution, which combines bar-coding and wireless technology to ensure quality. Helping with control and management of the inventory assembly for a vehicle, Ford tags each car with a barcode. The barcode then checks the vehicle through each “gate” which could also be considered a check mark in the production process. This process is to ensure that no checkpoint is skipped and that each quality and productivity test was completed. By completing these steps and having a tracking system, it is easier for quality to determine problems and implement solutions in a timely manner.

Most technology through Ford that directly affect productivity and quality reside in systems. With new economic changes such as taking the innovative to face an environmentally friendly company and invest in the working conditions of suppliers, Ford Motor Company takes on many responsibilities. With each program and system comes new opportunity for growth and improvement, making Ford a technology diverse automotive company.

Conclusion

Ford has motors project management strategies and quality control management procedures are the key to its success. Ford Motor Company, implemented Total Quality Management (TQM) concept (a ten-step process) with the end result of higher customer satisfaction rating, but with time changing they must adapt new strategies. From the start (1903) to now, Ford has run into quality issues, but have found new strategies and procedures to overcome obstacles with the quality and operations of Ford Motor. As mentioned, in 1980s through 1990s, Ford ran into issues with the quality line which caused them to have a bad reputation and found a way to prove themselves high quality once again. Ford adopted a new strategy called the “Six Sigma” and the implementation of the DMAIC (Define, Measure, Analyze, Improve, Control) cycle with different levels which has proven to be successful for Ford Motor with improving their reputation of the quality and reportedly saved them 2 billion dollars in cost-savings. These factors contribute to its success which covers Ford Motors sales performance, analysis and its key operational strategies in which focuses on the products strategies and the structure of the corporation. It’s safe to say, the six-sigma played a large role in saving Ford’s major problems such as inadequate productivity, poor customer service, bad use of resources and not being eco-friendly and were able to complete almost 10,000 improvement projects.

References

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Burke, K. (2014, August 18). Ford data crunchers help dealers fine-tune inventory.

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EveryCarListed. (2010, January 4). Ford Implements New Forecasting Methods to Accurately Meet Demand across its Inventory Mix.

Ford motor company rolls out SageTree inventory monitoring and alerting system for north american parts supply and logistics operations. (2002, Mar 25). PR Newswire

Ford Motor Co. (2018). In MarketWatch.

Gabor, A. (2001, June 13) Management: Ford Embraces Six Sigma.

Kimberling, E. (2017, February 13). Ford Motor Company Chooses Oracle HCM Cloud Suite.

Lacefield, S. (2017). How Ford is collaborating with suppliers to green its supply chain.

Levinson, W. A. (n.d.). In Henry Ford’s Lean Performance Indicators.

Ludwig, C. (2016, March 29). Ford Part 3: Supply Chain Upgrades.

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Strategy and Positioning: Tesla Motors

Summary

This strategy and positioning research will identify various marketing concepts involving Tesla Motors and its products.  It will provide a description on how marketing efforts changes at various phases within the product’s life cycle, how packaging will add value to the product, and how the company will determine pricing strategies.  Finally, this paper will identify various channels of distribution to sell its products and how each partner can add value to the brand.

Product Life Cycle

            A product life cycle is a concept with various stages that a product goes through during its lifetime.  Kerin, Hartley, & Rudelius (2015) informs, “The concept of the product life cycle describes the stages a new product goes through the marketplace: introduction, growth, maturity, and decline (p. 273).  Furthermore, each stage has different characteristics in response to the different needs the product requires as it moves along each cycle.  As a result, the marketing tactics used in each stage change as well.  According to Lorette (2015), “Understanding the product life cycle can help business owners and marketing managers plan a marketing mix to address each stage fully” (para. 1).

Introduction stage.  This stage refers to when Tesla Motors introduces its product to its intended market.  Typically, the sales grow slowly and the profit is minimal due to the high production costs, investments, and all the initial outlays associated with developing the product.  In this phase, the marketing strategy is to create consumer awareness and stimulate the initial purchase of a product (Kerin et al., 2015).  As a result, companies typically allocate large budgets towards various advertising and marketing techniques to gain consumer awareness.  Another concept that Tesla can take advantage of is the lack of competition at this stage.  Since there is a lack of competitors with the same product, Tesla can establish a primary demand for the product class, rather than specific models.

            Growth stage.  A company has entered the growth stage once the customers become aware of the product and sales increase.  In fact, this is partly due to new consumers trying the product, in addition to repeat purchasers.  At this phase, more competitors are established and aggressive pricing strategies are involved, therefore, profit is at its peak for companies.  For Tesla, the growth stage is vital for product differentiation and building a brand preference for its target market.  Since there are many competitors, Tesla must set itself apart by diversifying its products and services since consumers compare product benefits among the available selection.  As a response, the marketing strategy should be geared towards stimulating a selective demand for the purpose of gaining market share due to the increase in various competitive products and benefits.      

            Maturity stage.  When a company gains over its competitors, the product transitions to the maturity stage.  However, this phase is characterized by a slowing of total industry sales and revenue, profit decline, and the cost of gaining new customers increase (Kerin et al., 2015).  In fact, most products out there are currently in the maturity stage; for example, televisions, cell phones, and soda brands.  Once Tesla enters this stage, it must focus on a marketing mix that maintains its market share through either gaining new customers or further differentiating its products.  Furthermore, it must aspire to build customer brand loyalty.  This can be achieved by packaging products with incentives or creating promotions for new buyers who switch from other competitors.

            Decline stage.  Once sales drop and the product market becomes oversaturated, the product is in the decline stage of the life cycle.  However, if Tesla successfully achieved brand loyalty from its customers, then it can retain its customers despite of being in the decline stage.  Although it may not gain new customers.  Lorette (2015) asserts, “For the marketing mix that remains during the decline stage, the focus is generally on reinforcing the brand image of the product to stay in a positive light in the eyes of the product’s loyal customers” (para. 6).  Additionally, another strategy that Tesla must employ is a solution for sustainability.  As a matter of fact, products enter the decline stage mainly due to environmental factors and not failing marketing strategies.  For example, Walkman’s and CD players declined due to advanced technology such as MP3 players.  Consequently, Tesla must find solutions to respond to environmental changes.

Product Packaging, Services, and Promotion Incentives

Tesla motors promotes its product by offering excellent services, such as delivering the car closer to a buyer and unmatched incentives.  Additionally, Tesla offers annual inspection service plans beyond the original warranty.  For example, the annual inspection fee for the Model S is only $600 every year.  In addition, it offers software updates over –the-air that add new features and functionalities.  Moreover, there are some incentives offered to support and promote electric cars.  For instance, there is a $7,500 federal income tax credit for owning a Tesla Model S in serval states as rebate, which customers can claim after purchasing the car. Besides, some states such as California offer free carpool lane access and municipal parking.   Chandra, Priyono & Hakim (2015) states, “The sales promotion comprising short-term incentives to encourage the purchase or sale of a product or service.  They argue that sales promotions include a wide variety of promotions ranging from implementing and is designed to stimulate the market response in order to become stronger” (para. 3).  Another convenient packaging strategy is that Tesla cars can be delivered to a dealership close to customers that lack available Tesla dealerships close by.  Additionally, it can be delivered by truck to the customer once the payment is completed.  Furthermore, Tesla has excellent 24/7 technical support as well as offering roadside assistance. Customers can call at any time, any day, or send an email. It is always ready to assess the issue, and troubleshoot it.  If the issue was not solved through the phone, Tesla can help in transporting the vehicle by a trained network of tow providers.  For Tesla Motors, ensuring that clients receive their vehicles in pristine condition is vital to the overall customer experience, there is only one chance to make a first impression.  After a client designs his or her automobile an estimated date of delivery will be sent out, which may change pending on options chosen and availability of parts.  Once the car is ready, a delivery date will be set.  According to Tesla Motors (2016), “If you live more than 160 miles from the closest service center, your Model S can be shipped directly to your home or business.”  Using a car transportation company such as Reliable Carriers Inc., which is one of the best in the car transportation industry, guaranteeing on time delivery.

Pricing Strategy

Pricing for Tesla products will depend on a number of factors which include: demographic of the target audience as well as costs and overhead to supply the product. Also, creating a sense of value that outweighs the price of the product will also determine the penetration rate with the target market. Kerin et al., (2015) explains, “The price must be “right”—in the sense that customers must be willing to pay it; it must generate enough sales dollars to pay for the cost of developing, producing, and marketing the product; and it must earn a profit for the company” (p.324).  Having price transparency is also a major factor when targeting a market to sell to. When Tesla wants a vehicle to be promoted for a specific price, the customer will want to not only see what it is going to cost him or her in the long run over a specific term, but the value he or she gets from owning an electric sports car. Price, along with many other factors, plays a unique role within the market because it is where everyone makes their decisions on the needs and wants of the business. It is where business decisions are calculated and executed on.  Kerin et al., (2015) says, “It is the place where all other business decisions come together” (p. 324). From a marketing point of view, price needs to be viewed by the target market as less than the perceived benefits in order to instill a good value for the consumer. Given the current market for Tesla, it has to set a price the not only creates enough value to target a specific market penetration goal, creates value for the consumer when he or she purchases it, but also generates enough revenue to meet sales goals, market share goals, and revenue goals the is laid out in Tesla’s pricing objectives.

Distribution Channels

Tesla will use the selective channel of distribution. Why? Because what Tesla really sells is an experience. Today there are many cars to choose from, and most people have gasoline powered vehicles. But what the Tesla consumer gets when they buy a car is quality and prestige of being a Tesla driver. No other electric car can do what Tesla does. According to Tesla Motors the “Tesla 85D can drive up to 270 miles before needing to be charged” (2016).

Using the selective distribution channel via a mixed marketing channel allows tesla to maintain its exclusivity and prestige above the other car makers. The purchaser of the vehicle is considered the consumer and they are what keeps Tesla moving forward. Without them Tesla wouldn’t exist. Tesla is considered the producer and they will use a direct internet based marketing channel to get their car out in the market. This adds to Tesla’s value because it isn’t just a car you can test drive on a Saturday afternoon and take home that night since there are no tesla auto dealers – customers have to go to a Tesla showroom and customize a vehicle for themselves.

References

Chandra, T., Priyono, C. & Hakim, L. (2015). The influence of location, products, promotions, services with respect to consumer behavior.  Review of European Studies. Retrieved from ProQuest database. University of Phoenix online library.

Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing (12^th Ed.). McGraw-Hill Irwin. Retrieved from University of Phoenix eBook Collection.

Lorette, K. (2015). How would the marketing mix change at different stages of the product life cycle? Small Business. The Chron. Demand Media.  Retrieved from www.chron.com

Tesla Motors. (2016). How Ordering Works. Retrieved from www.teslamotors.com

Tesla Motors. (2016). Tesla Design Studio.

Teaching Technology Philosophy

As a nurse educator for students who are working toward a Bachelor Science in Nursing (BSN) degree with an emphasis on mental health, my goal is to help students build the  knowledge and skills they need for success in the program and throughout their careers. Not only is it my responsibility to introduce students to the fundamental principles of nursing practice, but I also strive to help them develop the problem-solving, communication, and critical thinking skills that mental health nurses need in today’s complex healthcare environment. I believe I can utilize technology in my teaching practice to support the achievement of these goals.

Today’s technology provides a wide range of platforms for communication, so I intend use it to facilitate thoughtful discussions among my students. Through direct engagement with each other, students can improve their conceptual understandings and grapple with complex issues in mental health nursing. Although traditional in-class discussions support this kind of student engagement, technology-based tools like online discussion boards make it possible to overcome some of the barriers associated with in-class discussions. For instance, in content-heavy courses, I often face significant time constraints. Online discussion makes it possible to promote conversation without cutting into essential lecture time (Hudson, 2014). It also meets the needs of students with diverse learning styles, such as those who avoid public speaking.

I also intend to use technology to train aspiring nurses to gather and evaluate relevant nursing information that can support evidence-based practice. Because the field of mental health nursing is highly dynamic, nurses need to have the skills to search the scholarly literature for the latest research (Majid et al., 2011). They also need to be able to evaluate the quality of sources. By integrating the use of online nursing literature databases into my curriculum, I can prepare aspiring nurses to stay abreast with the latest research throughout their careers.

References

Hudson, K.A. (2014). Teaching nursing concepts through an online discussion board. Journal of Nursing Education, 53(9), 531-6.

Majid, S., Foo, S., Luyt, B., Zhang, X., Theng, Y.L., Chang, Y.K., & Mokhtar, I.A. (2011). Adopting evidence-based practice in clinical decision making: Nurses’ perceptions, knowledge, and barriers. Journal of the Medical Library Association, 99(3), 229-36.

Suicide in the Marine Corps

Business Research Methods & Tools

Part 1: Introduction

Background Information

To augment the naval forces in the Revolutionary War, there was the establishment of the Marine Corps on November 10, 1775. Soon after the end of the war and many successful campaigns the Marine Corps was disseminated due to the stunted economical times America faced at the time. However, because there was a need for an infantry force Congress reenacted the United States Marine Corps in 1798 attaching them to the Department of the Navy. The Marines Corps heritage is deeply rooted with tradition, honor and valor. Many people believe this is due to the percentage of Americans that have served in the Corps which is only .08 percent (Chalabi, 2015).  With the honor of upholding the longstanding traditions comes great responsibility to the country as well as those that served before them. While the Marines are known as the smallest department out of all the services they have the highest suicide rate.

When looked at by human resources department in the Marine Corps there is a matter of great concern that the high suicide rate of veterans and active military personnel, which began around the time of the wars in Iraq and Afghanistan. This was a surprise, since the increase followed the launch of new suicide prevention programs by Veterans’ Affairs, and the expectation had been that the suicide rate would decrease (McCarl, 2013). The result is not easy to understand, but a constructive approach is conducting regression analysis in order to better understand the profile of veterans and active members of the military forces who commit suicide. Detailed capture of data can provide for analysis which can contribute to better screening techniques as well as more accurate evaluation of suicide prevention programs that can contribute to continuous improvement of patient outcomes.

Management Dilemma

            The HR department as well as the supervisors and leaders in the Marine Corps are responsible for the health and well-being of every member under their care. The motivation for the protection of human subjects across the services include business research (Landrum, 2013). However, with the wake of an unforeseen evil lurking in the minds of many, the problem becomes how to help those that are not readily identifiable. While there are many services available to those military members and their families there is still a stigma that is attached to those who seek assistance from family care providers or other services offered. In the military culture many thrive on the brotherhood and esprit de corps. Whenever this is taken away or no longer part of their norm they do not know how to function in society (Deutsch, Lande, & Lande, 2017).

Research Question and Hypothesis

The research question is: Do the services provided be the Marine Corps help members in their time of mental instability?

The hypothesis is: In today’s military the professional services provided for every Marine Corps member will help to reduce the number of suicides.

Part 2: Literature Review

Background Research

While suicide is nothing new to the uniform services the matter of tracking the data and making those aware of what is happening is something that Congress and the military leadership are now taking notice of and trying to prevent such empirical loss. For years mothers and fathers have been screaming for help due to the rate to which their children were committing suicide and asking the question to all that would listen, what is the military doing about it? This is done through modification in the thought process as well as the training that is provided to all service members (VanSickle, Werbel, Perera, Pak, DeYoung, & Ghahramanlou-Holloway, 2016). Before, suicide in the Marine Corps had a stigmatism attached to it. Only weak-minded individuals would succumb to the fatality rate. Such an utterance would represent a level of unparalleled ignorance and insensitivity that is no longer accepted. It was not until the research was done showing that suicide had no boundaries of race, nationality, or even rank.

The Marine Corps plays a special role in society, and the injuries and problems that can develop at work are far beyond the typical ones found in the corporate world (McCarl, 2013). The question was answered through an analysis of the history, case studies and analysis of barriers. In terms of human resources, this is a phenomenon which is rare. The help to raise the awareness and the background to the situation, providing a review of the significance of the problem and what is already known. Human resources professionals are part of a broader team that includes the health care support system for military personnel.

Ethical Concerns

For six years the Marine Corps tracked the loss of service members from their casualty records which determined the manner of death. These records had factors such as race, sex, age, and rank. From there, the population of the Corps were given to the data collectors to assess the percentages of suicides versus other manners of death (Laurel, Anthony, & Coben, 1999). Along with this data the entire United States Marine Corps was ordered to take a survey detailing their mental stability at any given time. While the surveys were deemed to be anonymous, the survey posed questions about rank, race, location of service, sex and so forth. The concern that many Marines had was who was collecting this information and what repercussions would be had when given an honest assessment? Where was this information going and could the surveys pinpoint the individual so that their anonymity is no longer kept? In that, the protection of this data was close-hold to those individuals with a certain credentials which were not outside sources rather Department of Defense employees. None of the information was to be sold or utilized in an improper fashion. The data was kept under lock and key and only certain factors such as sex, age, rank and race were disclosed to the Marine Corps leadership and Congress.

References

Chalabi, M. (2015, May 25). What Percentage Of Americans Have Served In The Military?

Deutsch, A., Lande, G., & Lande, R. G. (2017). The Reasons for Living Scale-Military Version:          Assessing Protective Factors Against Suicide in a Military Sample. Military         Medicine, 182(7), e1681-e1686. doi:10.7205/MILMED-D-16-00382

Landrum, R. E. (2014).

Laurel, L. H., Anthony, G. W., & Coben, P. A. (1999). Suicide in the U.S. marine corps, 1990 to 1996. Military Medicine, 164(8), 551-5.

McCarl, L.I. (2013). To Have No Yesterday”: The Rise Of Suicide Rates In The Military And   Among Veterans. Creighton Law Review, 46(3), 393-432.

VanSickle, M., Werbel, A., Perera, K., Pak, K., DeYoung, K., & Ghahramanlou-Holloway, M. (2016). Principal Component Analysis of the Suicide Opinion Questionnaire in a U.S. Military Sample of Marine Corps Non-Commissioned Officers. Military Medicine, 181(7), 672-679. doi:10.7205/MILMED-D-15-00062

Culture and Social Change in “The Joys of Motherhood” by Buchi Emecheta

“The Joys of Motherhood” by Buchi Emecheta presents the audience with the cultural and social history of the third world women and their struggles through Nnu Ego, a hardworking and optimistic woman. Emecheta manages to blend the intricacies of colonization together with the patriarchal society and how they affected the role and place of women.  Nnu Ego was determined to save her children from the erosion of village life, and the breakdown of conventional norms and traditions, the infiltration of urban life, and the devastations of the Second World War under colonial rule. This paper will evaluate this story in the context of culture and social change that characterized Emecheta’s “The Joys of Motherhood.”

Traditionally, Igbo women were tasked with giving birth and accomplishing home chores. The aspect of submissiveness clearly indicates that the African woman was ready to obey the conventions of her society. Nnu Ego admits that being pregnant was the greatest joy of her life (Emecheta 50). Unlike the rural life where communal living was approved, the urban setting presents a broken life that does not support the sense of togetherness. As colonialism takes over, high levels of poverty set in. Nnu Ego’s participation in social events was hampered by poverty, until she cannot even attend mass on Sunday.

Emecheta presents women as remaining submissive to their husbands, but a new cultural change is evidenced. Although women were supposed to submit to men, some of Nnu Ego’s actions clearly portray the breakdown of conventional norms and traditions. The fact that she viewed her second husband as lazy makes her superior than him. She categorically tells him that his brothers could have thrown him out had he dared to come to his father’s compound (49). Traditionally, Nnaife is viewed as the head of the house, the husband, and the father to Nnu’s children, but due to the capitalistic and colonial atmosphere surrounding Nigeria, he is forced to compromise. Due to cultural and social changes, he is merely viewed as the head of the house but the family is held and supported through Nnu Ego’s efforts.

Although Nnu Ego lives in the urban setting, she fails to embrace the change that comes with the colonial rule. She constantly reminds her twin daughters that they should not misbehave because a girl’s misdemeanor might taint the reputation of the whole family. As a mother, she was supposed to make sure that her girls remain upright until marriage. The change from rural life to urban settings does little to ameliorate girl child’s plight for education. While advising her daughters, Nne tells them, “But you are girls! They are boys. You will have to sell to put them in good position in life” (176). In the traditional Ibo setting, girls were never considered for education but they were supposed to help their mothers in household and petty business activities.

As much as Nnu Ego tries her level best to curb her children against the infiltrations of the urban life, her son Oshia becomes the symbol of the new order. Although he does not break away from the traditional glue, he does wish to enroll for studies. Oshia and his brother are forced to attend to the family’s business in the marketplace instead of going to school. However, his intelligence and ambition supersedes his traditional obligatory roles. He becomes a true representation of the generation that is shifting away from the traditional fabric. By choosing to make his own decisions individually rather than collectively, Oshia is viewed as a disappointment and failure. Although he even works hard to earn a scholarship to the U.S., his achievement does not take away the disappointment felt of failing to stay in Lags and support his relations.

A woman’s role as a mother does not change even when the setting change from rural to urban. When Nnu Ego becomes pregnant after losing their first child, he expects his husband to be happy but instead, he only accentuates his manly status by stating that there was no need to be happy for fulfilling his role-making a woman pregnant (50). There seems to be no much change in terms of the gender of the child born. A boy child was always received with much joy than a girl child. When Nnu Ego gives birth to twin girls, Nnaife blasts her, asking her why she could not have done any better (127).

Nnu Ego is also forced to face the devastations of the Second World War under colonial rule. In Lagos, her path, on several occasions crosses with the white man. First of all, Nnu is evacuated from her compound by British soldiers. Afterwards, her husband is forced to join the army to go and fight in the Second World War in Burma. Nnu Ego shifts his family to Ibuza where she struggles to keep her family going. The gap left by men during the Second World War elevates women to the heads of houses position. Due to colonialism, the Nigerians are compelled to adopt foreign ways, which threaten their traditional fabric. Christianity, European education, and capitalism play a big role in eroding the conventions and traditions of the Ibo people.

The effects of colonialism undermine Nnu Ego’s happiness as a mother because it threatens the interdependence and cohesiveness of her family. Although her children later on adopt change, Nnu Ego fails to embrace and recognize the new ways. As a result, the forces that tied the family together are broken. Throughout the whole book, Emecheta depicts the family as a united entity whereby individuals must contribute to the wellbeing of the whole unit.  Nnu Ego fails to save her children from the breakdown of conventional norms and traditions and the infiltration of urban life, as each of them pursues his/her on interests. While her daughter disobeys societal taboos by choosing her own partner, her sons decide to pursue education rather than tend to the family business. As a result of failure to accept change, Nnu Ego suffers emotional and psychological distress thereby making her die alone by the roadside.

In conclusion, Emecheta manages to blend the intricacies of colonization together with the patriarchal society and how they affected the role and place of women.  Through the main character, Nnu Ego, Emecheta has succeeded in penning down how she was determined to save her children from the erosion of village life, and the breakdown of conventional norms and traditions, the infiltration of urban life, and the devastations of the Second World War under colonial rule. However, she fails to do so as her children adopts change and choose their own paths.

Work Cited

Emecheta, Buchi. The Joys of Motherhood. NY: Norton & Company, 2011, print.

Literature Review: Tourism Destination

Abstract

Tourism is the mainstay of most national economies across the world.  On one hand, the most exotic locations are the priciest and on the other hand, regions which cater for a diverse tourist base attract the most customers. People wishing to visit a foreign place often consider a number of factors. Some of these issues include the security of the destination, infrastructural accessibility to that destination, and the people of around the place. Studies indicate that a number of factors support tourism which include small and medium enterprises (SMEs), innovation, good transport network, working relationship among stakeholders, and architectural planning. The aim of this paper is to present the findings of various scholars on the above factors, which are highly dependent on the need to enhance tourism in any given economy. The paper will focus on different case studies where these factors have been applied successfully to bring about growth and development in the sector. Without these factors, tourism cannot contribute to the growth of an economy.   

Literature Review: Tourism Destination

Introduction

The use of competitiveness concept in tourism is adopted from other closely related disciplines, marketing and management. Crouch and Ritchie (2003) concluded that many paradigms for the basis of a number of tourism books, but management forms fundamental unit that all other dimensions of tourism are based. In order to understand the forces that shape competitiveness, continuous process of knowledge development is required. Strategies and models that enhance competitiveness in the tourism sector are still open give the fact that they are not definite. According to Hajer and Wagenaar (2003, pages 40-47), tourism destination competitiveness is explained as a broad idea that incorporates price differentials together with exchange rate activities, production levels of several modules of tourist industry, and qualitative aspects that affect the attractiveness of destinations. Whereas, comparative advantage is related to the climate, scenery, flora, fauna and many more whereas competitive advantage pertains to issues such substructure (events, attraction sites, transport networks), excellent management, expertise of workers, government policy and many more. In this paper, the focus would be on the five strategies for building competitive advantage; these include the role of small-scale entrepreneurs in creating unique tourist experiences, infrastructure, innovation, collaboration and partnership development for sustainable tourism, and spatial planning.

The Role of Small-Scale Entrepreneurs in Creating Unique Tourist Experiences

Small-scale and medium-size entrepreneurs are responsible for the growth of tourism sectors in a number of countries. A recent World Bank report indicates that small and medium enterprises (SMEs) account for close to half of the formal jobs globally, more so in the tourism sector (World Bank Report, 2010). They are known for providing effective solutions to some of the development issues considered critical in the sector, such as clean energies, water, health services, and education to stakeholders. In the 2016, Global Entrepreneurship Summit organized by World Bank, the role of SMEs in the development of tourism sector globally was supported (World Bank Report, 2017).  The World Bank Group aims at ending extreme poverty and strengthening shared prosperity and this will be achieved through investing in SMEs including those operating in the tourism industry. It is noted that startups and SMEs play a critical role in creating jobs and initiating economic growth in any given economy. However, in the low-income states, most established companies rarely invest in the tourism industry because of the political uncertainties and instabilities (Onah, 2004). However, SMEs have been quick to take up the risks in the service and tourism industries. While on the official visit to Kenya, the former US president Obama observed that small-scale entrepreneurship crates jobs and new businesses, as well as developing new ways of delivering basic services. The president expressed that these companies introduce new ways of seeing the world hence they are seen as the spark of prosperity (World Bank, 2017).

SMEs have been able to drive the tourism industry because they are often willing to take the risks, generate jobs; they share a flexible and have closer relationships with the customers. The possible factor hindering their growth is lack of finance for innovation and technology. SMEs are known for enhancing competition, something that gives them an external benefit on economy-wide efficiency. According to Jones and Haven-Tang (2005), the tourism industry, being the largest in the world, depends heavily on SMEs, concluding that they are the main contributors of the growth of tourism in East Asian countries give the fact that they are the main sources of employment, apart from creating export opportunities.

In countries such as India, Thailand, Hong Kong, Japan, and South Korea, over 90% of companies operating in the tourism industry are SMEs. In Australia, the situation is the same because the companies in the sector are mainly SMEs with the capacity to employ only twenty staff (Ghosh, Siddique, & Gabbay, 2003)). Ghosh, Siddique and Gabbay, (2003) underscore the fact that SMEs, together with the government, are the major players in the tourism industry, especially in the development of a tourism destination’s image and improvement of service quality. Through SMEs, sustainable livelihood is made possible in the tourism industry. Those operating in the tourism industry have played a critical role in alleviating poverty levels among the locals hence enabling a better linkage with the local economy.  Since these SMEs are always focused on achieving their desired goal of profit making, they have been able to introduce new managerial, marketing, technological, human resource, investment, and competitive strategies in the tourism sector. SMEs place more emphasis on management in solving some of the problems associated with training of staff, capital cost, and leadership (Ghosh, Siddique and Gabbay, 2003)).

Role of Infrastructure

Each economy across the globe is interested in attracting tourists because of the benefits associated with their visit. The cities and governments are struggling to create parks, gardens and museums to capture the attention of tourists. However, they are unable to enjoy the ambience of their destinations without proper roads, water systems, quality public toilets, signage and many other things. A country or a city could be having a wonderful destination site, but tourists would be reluctant to visit because of poor connectivity and lack of basic amenities, such as hospitals. For some cities, they do not have proper waste management strategies, which prevent flourishing of tourism. Access to basic facilities plays an important role among tourists in making a decision about a destination. As Ghosh, Siddique and Gabbay, (2003) put it,  success or failure of any tourism programs is greatly linked to infrastructural development. They went on to argue that the people living in a tourist destination have a role to play in ensuring their attraction sites are easily accessible. Additionally, they advise that, since some sites are seasonal, the governments together with other industry players must invest heavily on transport, healthcare, and public utility facilities to make the event successful.

Tourism development across the globe depends heavily on the development of appropriate infrastructure because it offers important services to tourists apart from enhancing investment in the sector. The role of developing infrastructural units, such as accommodations, restaurants, and tours are a necessity of the private sector, but construction of roads falls in the hands of the government. Without high-class airports, railway lines, and ports, the private sector would be unwilling to venture into tourism because they would not receive any visitor. The government must play its critical role of providing an enabling environment to facilitate individual fulfillment. To this extent, Ghosh, Siddique and Gabbay, (2003) observe that the governments need to provide basic services, such as electricity, water, sewer lines, and telecommunications since they make tourism investment economically viable. In Kenya, for instance, the government made infrastructural development a priority towards achieving vision 2030, which is the country’s economic blueprint. The idea was intended to transform the country into a mid-income state, with the major beneficiary being tourism (World Bank, 2010).

Investing in tourism is a challenge if visitors cannot get to their destinations in time and enjoy their stay without facing any problem. With modern developments in transport, a person can get to the North Pole within two days, but it would be disheartening for a tourist to spend an entire week trying to access a destination that is only a hundred kilometers away. Therefore, it is highly suggested that governments and other concerned stakeholders should work hand in hand to improve transport systems and telecommunication networks. Road construction should take into consideration other important issues, such as putting up effective road signage, setting aside places for roadside rest, providing maps to visitors, and helping industry players in marketing the destinations. In a number of countries, such as Brazil, South Africa, South Korea and Kenya, governments fail to maintain the roads after the major events are over. A World Bank report of 2010 indicates that such public goods should be well maintained by repairing the potholes to prolong their usage. Governments that invest heavily on infrastructure are likely to receive higher number of tourists in their destinations.

Role of Innovation

As already noted in the previous sections, most of the companies operating in the tourism sector are SMEs. They do not enjoy the economies of scale implying that they are always at risk of winding up their businesses because of cutthroat competition amongst themselves and from large organizations that have the advantage of advance technologies. Therefore, these companies must rely on innovation and creativity to be able to cope with competition and challenges that the sector presents. In the modern business environment, a company that fails to innovate is unlikely to survive. In the tourism economy, creativity and innovation are an integral and important part because of the constant changes taking place in this sector (OECD, 2006). Tourism sector is believed to have an inventive world-making role due to its ability to empower the disadvantaged in the sector. Creativity and innovation pertains to the daily activities and actions performed by individuals and professionals as they carry out their duties. Employers and industry players should work together to establish an educational system that supports innovation and creativity rather than depending on the one that teaches students theoretical models only. Through this, employees interested in working in the sector would be able to adjust to the ever-changing environment and be able to apply the new strategies in solving problems.

Innovation is simply defined as a process through which a new idea or practice is made valuable. They are the new ways applied to achieve certain objectives (Hall, 2011). Innovations are made mainly to address a need and convene a human want. The aim of any creativity is to increase the quality of the serve being offered as well as improvement of delivery. In the tourism industry, at least four types of innovations have been identified, which include co-terminality of a service production and making use of the information, intensifying information and application of technology, enhancement of quality and diversification of human resources, and finally working on the organizational factors (OECD, 2006.). The same report indicates that innovation in tourism is made possible only if sector players work together to improve their welfare. Innovation in tourism is being hampered by factors that include the process undertaken in innovating, the driving forces, barriers failure to apply it in economic performance, and diffusion. Furthermore, scholars agree that there is a higher intensity of innovation in tourism because knowledge is constantly renewed (OECD, 2006). The development of the internet has presented some opportunities, as well as challenges to the sector given the fact that it has revolutionized market conditions for a number of organizations operating in the sector (OECD, 2006). The internet offer newer tools for businesses, apart from being used to enhance knowledge and skills in the sector.

The levels of creativity among employees are highly dependent on a number of factors that include availability of skilled labor in the market and creativity of the talented employees. For employees to be able to engage in creativity, motivation systems must be activated. Based on this, employers should be at the frontline to provide a favorable environment that allows their human resources to participate in innovation (OECD, 2006). Without continuous development of employees, innovation cannot be realized as required. Therefore, it has to start with educational institutions mainly schools and colleges before employers can pick it at an advanced stage.  Employers cannot expect to recruit highly creative workers if the education system does not support the entire process. This implies that stakeholders should spend considerable time trying to look at the tourism curriculum in colleges to ensure it supports creativity and innovation.

Collaboration and partnership development for sustainable tourism

Tourism has suffered a lot because various stakeholders fail to converge to deliberate on the way forward. A recent summit held in Kenya on Global development outlined the importance of collaboration among stakeholders operating in small and medium size enterprises, but nothing has been done so far to actualize this strategy (World Bank, 2017). Even before the Kenyan summit, there have been calls from different quarters urging stakeholders to work together to enhance their efficiency and effectiveness in the sector (World Bank, 2017). While a number of organizations venture into the sector, they fail to sustain their operations because of poor strategy among other factors. As most of these destinations gravitate towards sustainability, they are unable to do so because of poor collaboration, which does not support their agenda (Halme, 2001). Multi-stakeholder partnerships are seen as a solution to many problems facing the sector, especially in terms of marketing and development. Gray’s theory of collaboration has been cited variously, as well as Selin and Chavez’s partnership model to try to convince stakeholders to work join hands in realizing the main agenda (Gray, 1989)).

Stakeholders need to be involved at every stage of decision-making and development in the industry in order to achieve sustainability. Right from the policy making to the implementation stage, every concerned partner has to take part. Several scholars confirm that the industry is going to achieve sustainability, but only if collaborative action is taken (Halme, 2001). In the current industry, only stakeholders with massive influence in terms of resources are involved in the process of decision-making, but this must change if the sector is to realize its ambitions, as Bramwell and Lane (2000), advice. They further support the idea that top-down approach needs to be taken where decisions made at the summit must be communicated to every one working in the sector. In the United Kingdom, for instance, stakeholders must always be involved in every step undertaken in the industry irrespective of their influence (Bramwell, & Lane, 2000). They observe that this has seen the sector develop to an extent of sustaining its operations, especially in Wales where tourism is thriving. According to these scholars, (Bramwel and Lane) stakeholders play a critical role as far as partnerships are concerned because they engage in network connections through establishment of a number of coordination structures. To them, the national coordination boards should play a strategic role of formulating the policy whereas the local levels ought to take an active role in the implementation of these policies. The suggest that collaboration should come in the form of organizational management, planning, and development since this is likely to yield significant results apart from realizing sustainable development goals in the sector. Finally, they appraise the United Kingdom for appreciating the role that the private sector plays in the sector and the government made it mandatory for the regulator to consult it before making any decision.

It should be understood that sustainability is not an easy thing because it entails taking difficult management decisions. However, the problem arises when it comes to who makes them and how are they formulated. Those with the power to decide should employ a certain criteria and adopt particular principles that help in resolving the problem. Once an entity sees every one as a stakeholder, sharing of responsibilities is made easier. This would further make it easier to make decisions at any level (Huxham, 2000). Sustainability calls on the concerned authorities to adjust or adopt a new approach altogether. Therefore, realization of sustainability would require collaboration among various stakeholders.

Role of Spatial Planning in sustainable tourism

Planning for cities and municipalities is an important concept that helps in the sustainability of tourism. This word means making decisions at the national level, which are strategic, to application of unique designs at the local levels. Spatial planning, on the other hand, is a special form of planning that pertains to physical planning in a number of sectors, which influence tourism activities (Morpeth, & Hongliang, 2015)). With the drafting of the word sustainability, planning significance has increased (Morpeth, & Hongliang, 2015)). The 1970s saw the coining of the word sustainability because the current generation was expected to consider the interests and the desires of the future generations while they use the available resources (Hardy, & Beeton, 2001). At the time, Hardy and Beeton confirm that no one was interested with the future because organizations wanted to accumulate profits and outsmart their competitors in the market. In Turkey, spatial planning is initiated specifically to facilitate sustainable development. The government passed a legislation that makes it mandatory for the sector players to plan effectively for the future events, including the usage of public resources. Studies seeking to understand some of the ways through which spatial planning could be integrated into sustainable development is ongoing (Morpeth, & Hongliang, 2015)).

Conclusion

From the literature, it is noted that tourism relies on several factors to flourish. SMEs play a critical role in providing employment opportunities and supplying important services to tourism in their respective countries. On the other hand, tourism cannot thrive without proper roads, airports, railways, and other basic facilities. About innovation, companies in the sector are unlikely to survive without it implying employees need to be creative to drive the agenda of their companies forward. This calls on them to collaborate in developing spatial plans.

References

Bramwell, B., & Lane, B. (2000). Tourism, collaboration, and partnerships: Politics, practice, and sustainability. Clevedon: Channel View Publications.

Crouch, J. & Ritchie, B. (2003). The competitive destination-a sustainable tourism perspective. Cambridge: Cabi Publishing.

Ghosh, R. N., Siddique, M. A. B., & Gabbay, R. (2003). Tourism and Economic Development: Case Studies from the Indian Ocean Region. Florence: Taylor and Francis.

Gray, B. (1989). Collaborating: Finding common ground for multiparty problems. San Francisco: Jossey-Bass.

Hajer, M.A. & Wagenaar, H (2003). Deliberative Policy Analysis: Understanding Governance in the Network Society. New York: Cambridge University Press

Hall, C. M. (2011). Publish and perish? Bibliometric analysis, journal ranking and the assessment of research quality in tourism. Tourism Management, 32, 16-27

Halme, N. (2001). Learning For Sustainable Development in Tourism Networks. Business Strategy and the Environment, 10(2), 100—114.

Hardy, A.L. & Beeton, R.J.S. (2001). Sustainable Tourism or Maintainable Tourism: Managing Resources for More Than Average Outcomes. Journal of Sustainable Tourism, 9(3) 168—192.

Huxham, C. (2000). The Challenge of Collaborative Governance, Public Management, 2(3), 337-357.

Jones, E. E., & Haven-Tang, C. (2005). Tourism SMEs, service quality, and destination competitiveness. Wallingford, UK: CABI Pub.

Morpeth, N. D., & Hongliang, Y. (2015). Planning for tourism: Towards a sustainable future.

Onah, F.E (2004). The Impact of Economic Globalization on Nigeria’s Industrial Sector. Nigerian Journal of Social Sciences 4:1.

Organisation for Economic Co-operation and Development. (2006). Innovation and Growth in Tourism. Paris: OECD Publishing.

World Bank Report (2017). World Bank Supports tourism in the eastern Caribbean. Washington, DC: World Bank.

World Bank. (2010). Kenya’s Tourism: Polishing the Jewel. Washington, DC: World Bank. 

Social Marketing

The issue of obesity has been one that has affected a huge majority of America’s population. America’s population is known as one of the highly obese population in the world. As usual, some of the lifestyles adopted by the America population highly contribute to their health status. For long, obesity has been an epidemic and has also been a high health risk factors for other diseases such as high blood pressure, diabetes among others (Walker et al., 2016). Various states in America face different levels of obesity in their population. In response, there have been many social marketing campaigns designed to deal with this issue (Scarapicchia et al., 2015). This paper purposes to consider two campaigns, one conducted in Michigan and the other was a nationwide social marketing campaign concerning the issue of obesity in the American population.

According to CDC, Michigan is listed as one of the states that have the highest number of obese people in the whole of America. In specific estimates, Michigan ranks at number five as the heaviest state in the United States. In view of this, the Michigan Department of Health and Human Services saw it necessary to respond appropriately to the growing epidemic which was costing people significant health bills due to their unhealthy condition of obesity (Brogan & Partners, 2018). The result of Michigan is one of the heaviest states is that is costs the state billions of dollars in medical care annually. Therefore, a social marketing campaign was designed to help make people more aware of the effects of obesity and the different ways one can prevent becoming obese.

The health campaign was dubbed MI Healthier tomorrow. The social marketing campaign was focused on engaging with various brands which were well known by the target population. The brand integration was implemented through various channels. In addition to that, the social marketing campaign was promoted through various media channels such as radio, television as well as Internet-based media such as a microsite that was designed for interaction with the target population (Brogan & Partners, 2018). There were many things which were included in the social marketing campaign which are perceived to have cost a good amount of money. These things include shopping guides, coupons, helpful kits and fee gifts. All these items were bought and given to the population in Michigan which pledged to follow certain lifestyle rules to enable them to lead better and healthier lives.

The social marketing campaign also involved the use of social media platforms such as Facebook. This enabled the population in Michigan to log on to Facebook and interact with the campaign online through their mobile and computing devices. There was a specific Facebook page that was set up for the purposes of the social marketing campaign in Michigan. The purpose of the social media page was to provide the population with a platform where they can easily access information of how to go about changing their lifestyles for a better tomorrow (Brogan & Partners, 2018). This also enabled them access contact information to speak to various individuals who were involved in the campaign to ask any pressing questions concerning the health promotion campaign.

The social marketing campaign was further promoted by various commercial brands including McDonald’s, Compuware, the Michigan Association of Broadcasters, Quicken Loans, William Beaumont Hospital and Huntington Bank (Brogan & Partners, 2018). All these commercial brands supported the campaign in one way or another either through financial support or brand integration which increased the promotion of the campaign to the Michigan population to a whole new level.

The second social marketing campaign was the Adult Obesity Prevention Campaign. The U.S. Department of Health and Human Services was concerned with the abundance of materials, messages, and initiatives that address the issue of obesity in that they would often leave the consumers of such information overwhelmed and fail to tackle the issue of obesity in the proper manner (Ogilvy Washington, 2018). As such, there was a need for a whole new approach which would portray the effects of obesity practically and get people moving towards adopting healthier lifestyles. The U.S. Department of Health and Human Services hired Ogilvy Washington Studio to design a campaign that would properly address the issue of obesity by making people more aware of the risks of obesity and the benefits of preventing it (Ogilvy Washington, 2018). As such, the designed social marketing campaign was simple and straight to the point. The campaign, known as Adult Obesity prevention campaign, had a slogan that stated; “Obesity happens one pound at a time” (Ogilvy Washington, 2018). The basic purpose of this new approach was to cover new territory that had never before been envisioned in social marketing campaigns that focused on public health.

The approach used was practical in nature and was targeted at specific people that would often be located around parks. The campaign personnel would ask people to wear sacks filled with sand and walk in them to feel the effect of the additional pounds on their body. As such, most people, felt the effects of extra weight such as the pain in their joints and how tired they felt just after a few minutes of walking in the sandbags (Ogilvy Washington, 2018). This became a powerful wake-up call to most people. The campaign was majorly promoted through appearances of significant campaign personnel on radio and television interviews talking about the risks of weight gain (Ogilvy Washington, 2018). The approach of the campaign was majorly aimed at depicting the personal risk of being overweight.

Comparing the two campaign will regard the 4 Ps of marketing which includes, Price, Place, Promotion and Product (Truong, 2014). The product is considered in this case to be the materials used in creating different materials used in facilitating the social marketing campaigns. The campaign conducted in Michigan was more focused on passing on of information through posters, banners, billboards, Facebook posts among other things. The difference with the nationwide campaign was that the latter did not use many materials in facilitating awareness as it was done practically and demonstrated for the people to see in leisure parks. Location was different is size as MI healthier tomorrow was focused on the population in the state of Michigan while the Adult Obesity Prevention campaign was focused on the whole of the United States. In both cases, promotion included various media channels.

However, MI Healthier Tomorrow campaign focused more on promotion through brand integration with commercial brands such as McDonald and Huntington Bank. The latter did not focus on such brand integration for the purposes of the campaign. Price is well differentiated in both cases as one was based on statewide awareness while the other on countrywide. However, the MI Healthier Tomorrow gave away some of the aiding material such as help kits, coupons, shopping guides among other information providing materials. Nonetheless, the Adult Obesity Prevention campaign still spent a staggering amount of money with the value of the Ad coming close to $12.6 million spent in the whole country (Ogilvy Washington, 2018). Some of the outcomes include the high number of ad placements with the number standing at 75,000 and over 437.9 million impressions all over America (Ogilvy Washington, 2018). There are no specific estimates of how much the Michigan campaign cost but some of the outcomes include 32,000 individuals taking the pledge to led better lifestyles and have gained access to help kits provided during the campaign. Furthermore, due to the camping, Michigan has drooped for the fifth to the eleventh heaviest state in the United States (Brogan & Partners, 2018).

The comparison of the two social marketing campaigns stands to prove that the nationwide campaign had more coverage and was more effective due to two main reasons. First, the amount of money used, ad placements and location coverage was highly extensive. Secondly, the campaign made use of new approach targeting personal risk of being overweight which would give individuals a wakeup call and start leading better healthier lifestyles to Prevent Obesity.

In summary, the different aspects of social marketing when perceived in the two campaigns evaluated for this paper portray the significance of the 4 Ps of marketing. Every single component of the social marketing structure is well defined on its own to ensure a comprehensive outlook on the given health issue from the perspective of public health. As such, both social marketing campaigns proved to include different but nonetheless significant perspectives which worked well according to the scope of their social marketing campaign.

References

Brogan & Partners. (2018) How we gave Michigan the skinny on getting healthier. Brogan & Partners Convergence Marketing.

Ogilvy Washington. (2018) Adult Obesity Prevention Campaign. Creativestudiodc.ogilvy.com.

Scarapicchia, T. M., Sabiston, C. M., Brownrigg, M., Blackburn-Evans, A., Cressy, J., Robb, J., & Faulkner, G. E. (2015). MoveU? Assessing a social marketing campaign to promote physical activity. Journal of American College Health, 63(5), 299-306.

Truong, V. D. (2014). Social marketing: A systematic review of research 1998–2012. Social Marketing Quarterly, 20(1), 15-34.

Walker, B., Wolford, B., Sasser, D., Verbois, C., & Bell, L. (2016). Launching a comprehensive SNAP-Ed social marketing campaign utilizing the cooperative extension model. Journal of Nutrition Education and Behavior, 48(7), S84.

Should texting while driving be illegalized?

Mobile phones are ubiquitous technology with a fascinating history. There are now as many mobile phones in the world as there are people[1]. Modern cellphones are diminutive, light, compact and simple to use and have become an important part of life for a large number of people.

Mobile phones play an important role in bridging the gap between people through its general communication benefits globally and especially in the transport industry. Access to mobile phones provide safety benefits by allowing people to notify breakdown or emergency services when inevitable[2]. Mobile phones have revolutionized communication and access to various important services in the transport industry such as the recent launch of uber services. This has made it easier for travelers to access transport services simply by ordering for services via mobile phones.

Despite the general communication benefits of mobile phones, some driving habits such as texting while behind the wheel has become a disastrous behavior due to its physical and cognitive distraction. According to Carnegie Mellon, bad driving habits such as usage of cell phones minimizes the amount of brain activity when driving to 63 percent. Holding a mobile phone with one hand when texting and steering with the other hand leads to diversion of attention from the road and minimizes maneuverability exposing the driver and passengers to a possible threat of collision due to mental distraction.

Drivers who use mobile phones while behind the wheel are more likely to cause fatal accidents by roving out of their lane, more likely to hit a pedestrian and more likely to overturn their vehicle. This report also stated that using a cell phone while behind the wheel raises the chance of a fatal accident three times more than being drunk[3]. This is because when a driver is texting, he or she must allocate part of their attention to texting and maintaining the cell phone conversation and the other part to operating the vehicle and responding to constant changing road and traffic conditions. Therefore, the demand of cellphone texting must compete with the demands of driving safely.

In conclusion, due to the dangers accompanied by concurrent texting and driving, police should have sufficient power to deal with drivers using cell phones while driving by arresting and prosecuting them[4]. This will greatly reduce the number of deaths and injuries resulting from fatal accidents caused by physical and cognitive distractions of texting while driving.

Reference

1. Jon Agar. (Feb 7, 2013). Constant Touch, publisher: Icon books, USA.
2. David Jamieson MP, Minister for Road Safety. (9^th January 2001) Parliamentary answer, Hansard, 9^th January 2001, UK.
3. Cher et al. (31^st may 1999). Cellular Telephone use and fatal traffic collision: a commentary, accident analysis and prevention, UK.
4. Davis Jamieson MP, Minister for Road Safety. (23^rd October 2001) Parliamentary answer, Hansard, UK.

[1] Jon agar. (Feb 7, 2013) constant touch, publisher: icon books, 2013. Pg. 7

[2] Parliamentary Answer, David Jamieson MP, Minister for road safety, Hasard, 9 January 2001, UK.

[3] Cher et al. (31 may 1999) cellular telephone Use and fatal traffic collision: a commentary, Accident Analysis and Prevention, 1999. Pg.31

[4] D Jamieson MP, Minister for Road Safety, Parliamentary answer, Hansard, column 195W, 23^rd October 2001, UK.

ABSTRACT

Budgeting in a management accounting organisation is not merely a practice to allocate resources into different departments under a specified limit to save cost; it is rather the practice that would shape the whole organisation’s overall performance and profit. From a management accounting’s viewpoint, budgets are essential to be used in an organisation as it affects the organisation greatly. Thus, this paper will analyse the important points of a budgeting system which includes, the various roles and objectives a budget has within an organisation, and the criticism and assumptions of budgeting – that is, the benefits and drawbacks of using budgets such as behavioural and environmental issues, in which are linked towards the conflicting issues of planning and evaluation of a budget. The article, Using Negotiated Budgets for Planning and Performance Evaluation: An Experimental Study by Markus C. Arnold and Robert M. Gillenkirch accentuates how budgets can be used single handily or separately for different purposes or tasks which is yet another conflict arising between planning and evaluation performance.

INTRODUCTION

In the last decade, it was founded by Briers and Chua (2001, p. 238) that organisations have developed a substantial amount of management accounting tools, which includes balanced scorecards, target costing, activity-based costing (ABC), and enterprise resource planning systems. These technologies however, require the use of budgets, which is broadly used by companies since the beginning of the 19^th century (Cazaux 1965). In other words, organisations have been using budgets for hundreds of years now and budgets have become a standard accounting tool used by numerous companies.  Raghunandan et al. (2012, p. 110) emphasised that no matter how large or complex the business is; it requires the need of budgetary systems to accomplish its goals, in which it may garner substantial rewards once it is implemented and used properly. Henceforward, budgets are regarded as one of the most valuable and effective management accounting tool in an organisation. Horngren et al. (2014, p. 12) defines budgets as a proposal made by the management based on quantitative factors. In a management accounting standpoint, budgets can be projected by a variety of methods and each contains unique purposes that is used in an organisation. The three main budgets used by an organisation include operational budgeting, financial budgeting, and capital budgeting. This paper will analyse on the objectives of a budget, which influences the development and implementation of a budget. Next, the critique of budgeting will be examined by looking though the benefits and challenges of using a budgeting system within an organisation as well as the conflicting issues between planning and evaluation.

ROLES & OBJECTIVES OF A BUDGET

Budgets are often described as operational planning and coordination, motivation and performance evaluation, and goal communication and strategy formulation (Atkinson et al. 2011). It assists organisations to make decisions on how much money to spend by forecasting income and expenditure, and how to control plus monitor its performances under the influence of management accounting information. As stated by Gorshkova et al. (2015, p. 413), developing a budgeting system in an organisation may generate an assurance of financial growth in its business. Thus, budgets contain four important objectives that would influence the development and implementation of a budget.

Planning

Primarily, a company’s budget needs to have a strategic plan. It does not matter whether it is a small not-for-profit organisation or a big profit organisation, all organisations needs to have a budget plan set out. This plan is linked to the organisations budget and would assist the organisation to achieve its goals. Rouse (n.d.) indicates that with a strategic plan in hand; it will outline the company’s financial direction and expectations throughout the next three to five years. The purpose of planning aims to observe the ongoing decisions in the management and intervene whenever the activities are out of scope. For instance, if the company seems to be working towards a different objective, the management will intervene indicating that objectives made are not in line with the company’s plan. This interference delivers a chance for the managers to revise the budgets plan and go over its procedures made by the workforce (Simons 1990, p. 136). With planning, it enables the company to forecast future business conditions as well as avoiding unexpected problems that may occur out of the blue. The company will have to stick to its plan and follow the strategies set out. Such activity is closely linked to the Principle of Efficient Body of manoeuvre whereby it involves an individual’s body such as managers or employees to link with the company’s plans to carryout the activity. This is similar to the case of Wedgwood where Etruria implemented potter’s instruction’s book, which serves as a manoeuvre by clearly identifying how each task should be performed in the production (Macintosh 2002, p. 94).

Controlling

Subsequently, control will be able to measure the performance that is set out in the company’s plan. In order to take control and make adjustments in its performances, the company will need to compare against the actual and budgeted results to seek the corrective actions that needs to be taken into account. Such evaluation is significant as it is able to identity the budgets variances which will then be analysed and investigated in the company (Raghunandan et al. 2012, p. 111). From there, the company will make appropriate actions such as increasing the labour hours or decreasing raw materials to achieve the targets in the budgeting plan. Efficient resources will also be allocated across the company into different departments and it will be controlled as to how much should be given in each department and how much should be kept in the case of unpredicted issues such as natural disasters. If such an event occurs, the company would have a ‘backup’ to purchase more inventory.

Communication

Besides that, budgets have a role in emboldening communication between managers and employees in different departments. A manager will have to communicate to its employees regarding its work process so that it will be in line with the company’s budget. Not only will this enhance manager and employee relationship, but it also assists in coordination with the company’s activities. It is necessary for managers to inform its employees of the rationales underlying the budgeting process and the organisational roles they are to serve (Samuelson 1986, p. 36). Without communication, employees could be under- or over-budgeting the company’s expense and this in turn would impact the company’s goals. Ueno and Sekaran (1992, p. 659) accentuates that communication and coordination play a big role in a company’s budget. Hence, communication is vital to ensure that the coordination of the company’s activities is in the right place. It is also important to communicate budgets through a quantitative and qualitative approach. Most of the time, organisations tend to focus on quantitative factors. As an example, a budget might state that 2,000 units should be made during a specific period, however it does not state what kind of quality should it be made. Same goes to labour, a budget might state the amount to be paid for every labour rate per hour, nonetheless it does not specify the skills that employees should have (ACCA Global 2010). Parker (2012, pp. 54 – 55) claims that most organisations tend to focus more on its quantitative factors, whilst ignoring its qualitative factors and thus, risking a failure to comprehend that important elements do not always lie in measurable values and in fact it could be in a more subjective approach.

Motivation

Ultimately, a budget represents a target, and an aim towards a target can be a power motivator for the management and employees. However, it is important to understand that whether a targeted budget will actually motivate the managers and employees depends on how difficult the targeted budget is perceived to be (ACCA Global 2010). An imperative aspect of motivation is its direction and commitment. When a budget plan is set and approved, it provides the management a specific direction to work towards the company’s objectives. With a direction, it would motivate the managers to work hard as opposed to a budget without a direction in which would provide no pathway for managers to work on. Mia (1988, p. 465) intensifies that there is a striking improved performance in a company’s budget whenever managers possess a more positive and motivational attitude. As for commitment, when a manager’s performance is linked towards the company’s incentive system, the managers are more likely committed to their work. For example, a manager would receive a 20% bonus salary if the manager manages to achieve the targeted sales budget that is set out by the company’s financial plan. Such incentives will motivate the manager to work hard and commit to the job. This incentive system is closely interconnected to normalizing sanctions under the Principle of Discipline Mind whereby individuals would receive a reward for outstanding performances (Macintosh 2002, p. 87).

BENEFITS & DRAWBACKS OF A BUDGET

There are benefits as well as drawbacks in operating budgets within the organisation. According to Vitez (n.d.), most organisations regularly use budgets to construct a financial road map to plan its future business expenditures. With a planned budget in hand, companies will be able to estimate and allocate costs appropriately. As cash used to invest on fixed assets and working capital are limited, the budgeting system will be able to assist in managements decisions regarding which assets are worth to invest in and in turn, this would reserve additional cash for the company’s future business. For instance, with a budgeting system, the manager will be able to identify to spend less than $200,000 on marketing cost for the next two months, as the company would need the additional cash for future purposes such as expansion, endorsement, etc. plus the company does not need to spend much on its marketing as the budget has projected its strong marketing plan from the previous months. Besides that, a budgeting system also allows companies to uncover bottleneck issues. Bottlenecks may occur at different phases of a process and it may concern issues such as limited capacity and interference or prioritization that does not follow the standard procedure of the company (Gargasson et al. 2014, p. 1037). Thus, with a budgeting system, companies will be able to identify what can be performed to expand the capacity of the bottleneck issue or possibly workaround to shift the bottleneck. For example, companies may identity valued and non-valued activities, and they could eliminate the non-valued activities to relieve bottleneck issues.

In contrast, there are some drawbacks in using a budgeting system. An important downside of budgets is its timing. Budgeting process requires heaps amounts of time to establish. It usually takes up a few months to strategize a budget and it will require the management to take part of it as well and thus, taking up the management’s time (Australian National Audit Office 2008, p. 30). This can be further illustrated when companies have to first gather a good amount of information followed by constructing its budgeting process. Once that is done, the budgets have to be sent to the top management for approval. This whole process takes up a lot of time. In addition, Hope and Fraser (2003) suggests that companies should eliminate the use of a budgeting system. This is because companies tend to focus mainly on its budgets to achieve its goals whilst investing huge sums in IT networks, process engineering and a range of management accounting tools such as Economic Value Added (EVA), balanced scorecards, etc. However, these tools are unable to establish new orders due to the constant emphasis on budgeting processes.

CHALLENGES & CONFLICTING PLANNING AND EVALUATION ISSUES

As reported by Barrett and Fraser (1977), a budgeting system comprises of three major conflicting roles, which includes planning and motivation, motivation and evaluation, and planning and evaluation. Planning and evaluation, however, is merely a minor conflict, which often occurs through the challenges of behavioural and environmental issues.

Behavioural implications of managers and employees may affect the planning and evaluation of a budget system. For managers, an unrealistic budgeting plan could conceivably lead managers to make decisions and evaluations that are prejudicial to the company. A manager will do whatever it takes to keep the company within the planned budget but this could in turn harm the company indirectly. As a case in point, if the company has exceeded its planned capital budget in the previous month, the manager might make evaluations to cut down on raw materials and packaging to reduce its budget. Although the company could possibly keep its costs within the budget, the product might not be sufficient and it could lead to customer unsatisfactory. In addition, a budget plan may as well have an impact on employee behaviour. At times, budgets are evaluated at high levels or unrealistic budgeting figures. When this happens, employees will be de-motivated to work, as it will be hard to achieve such high expectations. The employees will eventually give up and company performance will be reduced. Besides that, Riley (2014) specifies that setting a budget at a level too low would result in employee slacking. This is because with such a low target, both the managers and employees are not inspired to work hard to achieve organisational goals. Hence, the aim is to plan and evaluate budgets that are perceived as being possible to accomplish, but at the same time will entice the employees to work harder (ACCA Global 2010).

Other than that, environmental issues within the company is yet another conflict that arises between planning and evaluation. Juozapavičiūė and Stončiuvienė (2008) found that the main problem with budgeting is due to the difficulty to adapt to the ever-changing business environment. At times there will be unexpected circumstances, which would cause the company to make additional plans and alter its budgeting processes. Flexible budget may be deemed as an appropriate budget that organisations should use. This is because a flexible budget is variable; a change in sales volume would change the company’s budget to suit the markets needs and thus, less environmental issues within the company. Holtzman (n.d.) provides a great example of a flexible budget; an organisation produced 3,200 units although its master budget indicated that it was only supposed to produce 3,000 units. Due to such unpredicted change in the business environment, the flexible budget will rearrange its master budget by making appropriate amendments in its sales and expenses to reflect the new figure. A flexible budget also provides a greater level of control because it allows companies to rearrange its allocation of costs and funds based on the changing events in the market. Unfortunately, according to Vaznonienė and Stončiuvienė (2012, p. 159), it was found most organisations turn down flexible budgeting, as it is time-consuming to constantly plan and make adjustments of the budget. Ultimately, it will be difficult for companies with fixed budgets to familiarise itself with the ever-changing business environment and hence, this would cause companies to evaluate its performances based on unrealistic information. Jehle (1999, p. 55) highlights that as the market environment is continuously moving, the companies are shifting as well and thus, managements have to constantly alter its budgeting plans. Consequently, it is critical for companies to frequently alter its budgets as the business environment fluctuates. To resolve such an issue, organisations should undertake a flexible budget as opposed to a static budget even though it may be time consuming to continuously plan and adjust the budget, however it will be easier to evaluate the company’s budget. Nonetheless, such actions could ease the conflict between planning and evaluation.

Furthermore, another conflicting issue involves how Arnold and Gillenkirch (2015, p. 2) stresses that planning and evaluation are often in conflict with one another due to the need to provide managers with adequate financial incentives in which will strife with the accurate planning of the budgeting system. Due to this, budgets have to be set at different levels. Conventionally, Merchant and Manzoni (1989, p. 541) affirmed that companies hardly use different budgets for different purposes. Instead they would use a single budget for multiple purposes. However, Churchill (1984, p. 152) emphasised that a single budget may not be recommended for the use of multiple task and managers are better off using separate budgets for multiple task in its place.

CONCLUSION

Nowadays, with modern companies and the growing demands in the market, the use of management accounting tools such as ABC, target costing, benchmarking, and total quality management (TQM) are seen as tools that are not sufficient enough to meet the today’s demands (Newing 1994, p. 1). This goes to show how organisations have been using budgets to the point where there is a need to create a more enhanced and superior budgeting system. Budgets are taken seriously in a management accounting standard and it proves how budgets are effective in saving organisational costs. The objectives of a budgeting system are important as it outlines the various roles a budget plays in the company which is a crucial aspect to develop and implement a budget. Although there may be several benefits in using a budget, a benefit is not a benefit without its drawbacks. Hence, there are disadvantages as well as challenges in operating a budgeting system along with its conflicting planning and evaluation issues. Nevertheless, budgets have been long considered as a necessary universal tool in managing a company (Jensen 2003, p. 380).

REFERENCES

Arnold, MC & Gillenkirch, RM 2015, ‘Using Negotiated Budgets for Planning and

Performance Evaluation: An Experimental Study’, Accounting Organizations and Society, vol. 43, pp. 1 – 16.

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Self-Service Technology Adoption’s Effect on Customer Experience

Part 1: Introduction

Background Information

ADTRAN is a leading manufacturer and provider of telecommunications equipment for distribution of data services and communications globally.  However, the empowerment of consumers and businesses in the age of digital technology has commoditized manufacturing strength, distribution power, and information distribution and largely dissolved competitive boundaries, leading to consumer choice as the main differentiator and necessitating an enterprise shift to customer experience management (du Plessis & de Vries, 2016).  Companies seeking to maximize customer lifetime value are dependent on customer retention and look to self-service technologies (SST) to reduce operational cost, structure the customer experience, and quantify every interaction of the customer lifecycle, with SST as the critical factor in controlling costs and improving customer experience (Considine & Cormican, 2016).  ADTRAN’s lack of SST adoption is common in the telecommunications industry, but as they shift to an “as-a-service” business model, the number of customer interactions will grow, making customer experience a critical factor for revenue growth and customer retention.

Management Dilemma

The management of ADTRAN are responsible for the customer success, retention, controlling operational costs, and meeting revenue growth targets.  Rapidly changing customer expectations, greater information parity, and the ability to quickly change providers introduce new risks to the business; thus, improving customer experience is critical to business sustainability (du Plessis & de Vries, 2016).  While reducing the volume of customer issues are important to managing costs and profitability, “as-a-service” or subscription-based business models rely on customer retention for the majority of revenue, making customer retention and lifetime value critical.  An objective approach to evaluating SST would allow ADTRAN’s management to minimize bias and organizational belief that may be reluctant to change (Landrum, 2014).  Therefore, it is imperative ADTRAN understand the impact of SST in revitalizing its customer experience to ensure customer retention.

Ethical Concerns

This study analyzes secondary data which must be handled in accordance with ethical practices.  Ethical decisions may be swayed by human nature but following basic fundamental principles about how participants and their data are treated may reduce the likelihood of unethical practices (Landrum, 2014).  According to Tripathy (2013), “the fundamental ethical issues related to secondary use of research data remain”, but “they have become more pressing with the advent of new technologies” as “data sharing, compiling and storage have become much faster and easier” (p. 1478).  The primary concerns with using secondary data include potential exposure or harm to the original participants and issues surrounding consent (Tripathy, 2013).

Tripathy (2013) recommends selecting secondary data that lacks identifying information and is anonymized.

Open access data, available online through various mediums, can be used freely and analyzed, with acknowledgement given to the original data owner (Tripathy, 2013).  Appropriate data collection should be sufficient and necessary without exceeding the parameters of the stated research and should be reviewed to ensure it meets the standard for relevance, including “the methodology of data collection, accuracy, period of data collection, purpose for which it was collected, and the content of the data” (Tripathy, 2013, p. 1479). Additionally, all reasonable measures to protect the data must be taken while in the care of ADTRAN, and upon completion of its use, properly disposed (Tripathy, 2013).

Research Question and Hypothesis

The research question is: Does access to SST improve ADTRAN’s customer experience?  The hypothesis is: SST will improve ADTRAN’s customer experience, thereby improving customer retention and lifetime value, which will reduce operational costs and improving overall profitability.

Part 2: Literature Review

Background Research

Consumer access to SST is a relatively new phenomenon, and Considine and Cormican (2016) define it as “technological interfaces that enable customers to produce a service independent of direct service employee involvement” (p. 104).  However, for successful implementation and adoption, quality must be measured multi-dimensionally, including functionality, enjoyment, security, assurance, design, customization, and convenience (Considine & Cormican, 2016).  Considine and Cormican (2016) collected data on functionality, security, design, and customization from 182 knowledge workers in a financial services organization and found positive feedback on the use of STT to get work done more efficiently and improve their work experience, but a lack of personalization and user centered design received the lowest scores, indicating improvements in these areas can positively impact user experience and perception of SST.

Timing SST adoption within the customer lifecycle is important, because establishing the initial customer relationship is important.  Scherer, Wunderlich, and von Wangenheim (2015) analyzed longitudinal customer data to compare the ratio of SST to personal service use over time and its impact on value creation.  The findings in this research suggest a combination of SST and personal service within the initial three months significantly decrease the likelihood of customer defection and access to SST is most important at the beginning of the customer-firm relationship, as the customer becomes acquainted with the firm (Scherer, Wunderlich, & von Wangenheim, 2015).  This research suggests that while customers may need more personal interaction at the beginning of the relationship, SST availability is an important factor in deciding to remain with a provider and possibly in the initial selection of the provider.

Adopting capabilities to improve customer experience are highly complex and require executive sponsorship to be successful, because they span a “complex mix of strategy, integration of technology, orchestrating business models, and brand management” which must converge on a common goal (du Plessis & de Vries, 2016, p. 24).  Du Plessis and de Vries (2016) surveyed multiple telecommunications providers to understand the intricacies aligning people, process, and technology to improve customer experience, and they found that while many providers espouse customer experience management as a strategic priority, “efforts are still distributed across the enterprise” and lack a “single, holistic approach” (p. 24).  Impeding a holistic approach were operational goals not aligned to customer experience, a lack of customer-centric culture, minimal comprehension of customer experience, and lack of expertise to execute a customer-centric operational model aligned to business drivers (du Plessis & de Vries, 2016).  Improving customer experience via SST must encompass executive led, organizational change to existing operating models, championing a customer-centric culture, and alignment with clear business goals.

Successful SST programs will inevitably experience some type of malfunction as part of the lifecycle, so anticipating customer response is vital, since many customers may have already experienced subpar performance in the past.  Early SSTs were prone to error, such as 25% of online shoppers encountering issues, voice technology accuracy reaching only 18%, and thousands of self-service U.S. Postal Service kiosks not in-use (Zhu, Nakata, Sivakumar, & Grewal, 2013).  Understanding customer-recovery expectancy (CRE) can aid the design of SST to improve the likelihood of re-engagement when SST failures occur (Zhu, Nakata, Sivakumar, & Grewal, 2013).  CRE was improved by “greater internal attribution, perceived control, and SST interactivity;” therefore, identifying methods for customers to engage in self-diagnostic and self-help reduce the risk of customers disengaging from SST when encountering difficulty (Zhu, Nakata, Sivakumar, & Grewal, 2013, p. 25).  Co-creating customer communities and public knowledge bases alongside SST could introduce collaborative methods to resolving issues without any direct provider intervention.

Part 3: Data

Types of Secondary Data

Internal and external sources of data will be reviewed.  Internal sources include “customer data, information about competitors, and industry-wide data,” such as customer surveys and financial statements (Landrum, 2014, 11.1, para. 5).  This data will be valuable in quantifying the financial performance predicted by customer loyalty, and feedback from existing customers will indicate gaps in the current customer experience that can be addressed through greater access to SST.

External sources will include existing research, analyst reports, and professional publications.  As this is a new strategy for ADTRAN, external perspectives are important for understanding the pitfalls, limitations, strategies, and successes of others.  The combined analysis of internal and external data will allow for acceptance or rejection of the null hypothesis, or the assertion the results of this research will not significantly alter the existing state (Landrum, 2014).

Scales and Benchmarks

The impact of SST on customer experience can be measured along an ordinal scale.  With ordinal scales, the numbers directly relate to significance, allowing the data to be ranked (Landrum, 2014).  Common internal and industry scales used to measure overall customer experience include customer satisfaction (CSAT) and Net Promoter Score (NPS) which measure customer satisfaction and loyalty along an ordinal scale.  For example, a CSAT score of 8 indicates higher customer satisfaction than a CSAT score of 6, and a NPS score of 9 indicated higher customer loyalty than a NPS score of 5.  Additionally, while ordinal scale measure along a continuum, the intervals between each number are not necessarily equal, so the difference between CSAT scores of 10 and 9 cannot be assumed equal to the difference between scores of 6 and 5 (Landrum, 2014).

ADTRAN’s current CSAT and NPS surveys will be used as benchmarks, which can be compared to new CSAT and NPS surveys to identify any impact to overall customer experience.  NPS benchmarks can also be obtained from third party firms, which collate measures across industries.  Using internal and external benchmarks allow ADTRAN to measure improvement against its own past performance, as well as its competitors.

Likert-type scales are a type of ordinal measures, with statements ranked by respondents “on a scale such as 1 = strongly disagree, 2 = disagree, 3 = neutral,” and so forth (Landrum, 2014, 4.4, “Scales of Measurement and Statistics,” para. 13).  With these types of ordinal measures, the numbers exist on a continuum and imply varying perspectives, without adjacent numbers having exact intervals (Landrum, 2014).  CSAT scores are used to understand current customer satisfaction and the scales vary between organizations, as they seek to understand their particular customers.  NPS was introduced as a standardized metric in 2003 as a predictor of growth, based on customer loyalty, and a predictor of whether a respondent is a “promoter” or “detractor” based on their responses with the score calculated as the proportion of promoters minus detractors (Keiningham, Cooil, Andreassen, & Aksoy, 2007).  These data are available from ADTRAN’s internal sources and customer surveys and can be analyzed to understand trends separating highly satisfied, loyal customers from those who are not.

Considine and Cormican (2016) employed Likert scale measurements to “examine participant’s perception of SST in terms of the technologies’ functionality, security, design and customization features” (p. 105).  Maduku (2017) measured “performance expectancy,” “effort expectancy,” and “structural assurance” on “a 5-point Likert-type scale with anchors ranging from 1 (strongly disagree) to 5 (strongly agree)” to measure self-efficacy (p. 896).  This trend is common with the existing literature, and Likert scale measurements allow for granular analysis while adhering to common disagree-agree response scale patterns, which will reduce the complexity of coding data for this research.

Plans for using observations, focus groups, interviews or surveys

This research is based on secondary data; therefore, primary data collection methods such as observations, focus groups, interviews, or surveys will not be used.  Secondary data are found in existing research, so these primary methods are not necessary for sampling and analysis in this study.  Internal sources will be collected from ADTRAN’s existing CSAT and NPS surveys, financial statements, and sales performance data, since this data most accurately reflects current and past performance.  Internal data are preferred because they are proprietary and exclusive to the business (Landrum, 2014).  External sources will be gathered from public databases, such as EbscoHost and ProQuest, in addition to analyst reports, third-party industry benchmarks, and government data.  These sources will include relevant studies of SST adoption and customer satisfaction across industries and a framework for building a customer experience strategy.

Plans for analyzing data

Content analysis is one statistical method that may be used to quantify verbal or qualitative data, such as the feedback collected during customer satisfaction surveys, and this method analyzes the content of feedback to identify patters or trends based on the frequency of specific words or concepts present in secondary data sources (Landrum, 2014).  ADTRAN’s existing customer surveys include written feedback which lends itself to this method, and external sources include similar, industry-wide language patterns.  Quantitative CSAT scores and financial data require another technique.  Multiple regression is employed to make relevant predictions from the data by describing the relationship between variables, forming a prediction about the relative effect between predictor and criterion variables, and framing a theory of the relationship between variables (Landrum, 2014).  The t-test is useful when comparing two groups, such as those with access to SST and those without, against a dependent variable, such as CSAT or NPS, and will help determine whether or not the null hypothesis can be rejected (Landrum, 2014).  Because the secondary data are qualitative and quantitative, these statistical methods will help determine the relationship between SST and customer experience to assist management’s forecast of potential revenue growth.

Part 4: Results

Plans for presenting results

Results of the analysis will be presented in graphical and table formats.  Selecting an efficient, relevant method to display data is vital to communicating its importance and implications without obfuscation or misleading the audience (Landrum, 2014).  Graphical representations, such as scatter plots, can be used to represent the relationship between measurements and allow for recognizable systematic or causal relationships between the data in a regression analysis (Presenting numerical data, 2012).  Underlying the graphical representation, tables provide a structured format for quantified data which allow finer analysis and organization, though the interpretation may be obscured (Presenting numerical data, 2012).  Data residing within a table also lends itself to additional analysis, since it can be sorted and manipulated within numerous tools.

Reject or fail to reject the Null Hypothesis

The null hypothesis presumes there is no statistically significant effect observed during the research and is “used for the assumption that nothing will change from the status quo as a result of the research effort” (Landrum, 2014, 5.1, para. 2).  The goal of this research is to ascertain whether or not there is enough statistically significant evidence to reject the null hypothesis in favor of the alternative hypothesis, also known as the research hypothesis (Landrum, 2014).  To determine whether or not the results are statistically significant, a confidence level, or p value, is chosen to test the null hypothesis, and the “standard accepted p value is 0.05,” representing 95% confidence the results are not due to chance (Landrum, 2014, 5.2, para. 6).  This study will use a p value, or alpha, of 0.05.  Therefore, if the resulting p values from the statistical tests are above 0.05, the null hypothesis will fail to be rejected, meaning there is no statistically significant relationship between SST and customer experience.  However, if the resulting p values are below 0.05, the null hypothesis will be rejected.

Part 5: Conclusion

Take Home Message

Consumer expectations have changed, with access to limitless services on-demand via smartphones and web-enabled apps, and consumer-grade self-service experiences are influencing the expectations of B2B transactions and engagements.  As ADTRAN repositions itself from a hardware manufacturer to a service provider, customer engagement and experience will play a more significant role in the vendor-customer relationship.  As millennials and digital natives mature into upper and executive management roles, their buying experiences will have been shaped by SST in their personal lives, so their expectations of vendors will be heavily influenced.  SST will become table-stakes for attracting new customers, and while service-oriented products are more profitable, they also carry more risk as customers are empowered to more easily change vendors at the end of the contract term.  Service-oriented business models rely on recurring revenue, so the company’s continued success and growth will be highly dependent on customer satisfaction and retention.

Understanding the complex relationship between SST, customer experience, and revenue is vital for management to guide ADTRAN’s continued growth and competitiveness.  Analyzing existing SST frameworks, optimal adoption patterns, and customer feedback will provide a predictive analytical model for initial investments in SST and establishing criteria for success.  While SST can improve the customer experience from initial purchase through the operational lifecycle, it also acts as a real-time feedback mechanism for the company to understand how the customer consumes the purchased services.  Ongoing, this framework can be adapted to include direct, real-time data points from the SST tool, customer feedback, and lifetime value, so management has the relevant metrics to make more informed decisions.

Strengths and Weaknesses and Suggestions for Future Research

This research will provide ADTRAN with a deeper understanding of how SST can be utilized to maximize customer satisfaction and experience, thus improving customer loyalty, retention, and lifetime value.  Because of rapidly growing SST adoption in B2B markets, there is a plethora of data available for analysis across industries.  Additionally, ADTRAN’s own CSAT data provides a wealth of information to parse and glean a better understanding of its own customers.  Combined, these external and internal data sources will provide new insights into the pulse of customer needs and guidance on successfully implementing SST to maximize customer adoption.  The conclusions from this research will significantly improve management’s understanding of the broader SST ecosystem and shifting expectations of B2B clients.

Due to time and budget constraints, there is no direct collection of data in this research, there may be unaccounted for variables and the predictions are not a certainty they will be successful if implemented.  ADTRAN’s lack of SST precludes the collection of primary data and lacking standardized industry terminology increases the risk of misinterpreting qualitative feedback from customers, since there is no direct surveying or participation in focus groups.  Because of the proprietary nature of SST, direct analysis of comparable services is unlikely; therefore, recommendations will be theoretical rather than empirical.

Future research should include direct customer involvement and feedback specific to the nature of SST, expectations of B2B SST, and perceived customer experience.  Furthermore, pilot programs or A/B testing with select customer segments would provide primary data points to help establish a minimal viable product to bring to market.  Due to the complex nature of customer experience, focus groups would provide greater comprehensive feedback and nuance in the data collection, thus improving management’s ability to adapt to shifting customer demands.

References

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