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Corporate venture vision

 Corporate venture vision:

To promote health and good lifestyle all over the US  and keep a healthy nation going.

CORPORATE VENTURE MISSION.

T o provide extensive support for a life change.

CORPORATE VENTURE OBJECTIVES:

The new corporate venture will work towards achieving the following objectives:

(i) To promote the health status of people:- The main objective of this corporate venture is to improve the health status of California and west coast here in America. Our customers will be given advice on the diets to take so that their health status can improve. Teachings on maintaining the required body weights shall also be offered. Our customers shall also be taught the kind of lifestyle to lead in order to keep their bodies strong and free from preventable diseases. Also our customers shall be educated on the kind of exercise to carry out regularly so as to maintain their bodies well and remain strong. Also we shall educate our customers about nutritional values of various foods.

(ii) To be efficient in offering quality service we shall ensure that any service offered by the new corporate venture is within the best standards. Health issues are very sensitive and crucial to somebody’s life. A small mistake can lead to the loss

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of life or deterioration of the health of a customer. Therefore we look forward to offering the best services to our esteemed customers.

(iii) To buy quality equipments :- our corporate venture be having basic equipments for weight to measurements, skin treatment, body massage to as to ensure a smooth running during commencement. But after establishing the new corporate venture shall buy more expensive equipments especially for body exercised for offering training.

(iv) To charge lower prices to our services as compared to our competitors:- for our new venture to have more customers it will be charging lower prices to all the services it will be offering.

(v) To build one big recreational hall for practicing at all our branches:- Our new venture shall have many professionals like nutritionists, dietitians, naturopathic doctors, dermatologist, therapist and psychiatrist. Each and everyone of this professionals requires his own room. This room should be enough and spacious to accommodate at least four people and some equipments.

(vi)To buy television sets to be entertaining customers and offering basic teachings:- Our new ventures should own televisions that will be installed at the halls to keep the customers busy as they await to be served. These television sets should also be used to offer basic teachings to customers to issues like diets, nutrition rules of food, prevention of diseases, the importance of maintaining health bodies. Therefore these TV’s will assist in offering some basic teachings to our customers.

(vii)To ensure that we increase our sales regularly:-  Our new venture will own its own retail shops. This shop will be selling equipments for homes, clothing, other supplements and nutritional valued light foods and drinks to compliment the services it offers. We will target a regular increase in our sells.

(ix)To own our own piece of land:- To efficiently offer our services, our new venture should own a piece of land.

(x) To have well trained professionals to influence people to improve their health including nutritionists, dieticians, naturopathic doctors, dermatologist, therapist and many others will be trained. These professionals are the once to ensure what our new venture is fulfilling its main mission of providing extensive support for a life change.

By ensuring that our new corporate mission is achieved then also our vision of health and good lifestyle shall also be realized.

NEW VENTURE STRATEGIES

Our business venture is under the food industry. The American people in general have grown to become more health conscious. As of late, there has been so many diets created and so much weight loss theories, many people are focusing more on their health and lifestyle. Our new venture will be involved at improving the health of our customers especially in California and the western coast.

We will provide a gym with amenities that range in a level from basic through advanced alongside a health spa with specific individuals who are personable and professional providing a hale of hearty environment. Our venture shall also run a retail store that will be selling equipment for the home, clothing supplements as well as nutritional valued light foods and drinks to compliment the services. Professionals in the health industry will come together and influence people to improve their health in the best way possible. They will not be fully employed members but they will be assisting in improving the health of the people. They will be paid according to the number of customers served.

Simple work outs like massage, skin treatments, diet advice , yoga, Pilates kick boxing, classes, athletic recovery, weight management, holistic medicine shall all be offered by our team of professionals. Consumers will be developed both mentally and physically. Our new venture aims at promoting once health and lifestyle. All services offered will be geared at satisfying the client. Our venture will get into the core of a person and nourish them according.

Our new venture will target the people of California and the western coast. Later we will spread to major cities in America.

Within California and western coast our venture will be running 3 branches with California being our headquarters.

Our professionals will be involved at serving our customers to their satisfaction. Our new venture shall be running a retail shop. We look forward that after accessing our venture during its first five years if it will be performing well we shall open on a hospital or even extend our retail shop to be a big supermarket. Our final decision will depend on how new venture shall pick up.

At first in order for our new venture to penetrate to the market we shall be charging lower prices. We will also offer some free teachings like on diet. This will enable our business to get new customers. We shall also study the marketing programmes of our competitors and act on there area of weaknesses. For example we will ensure that our retail shop is well stocked and we have more professional than our competitors.

Our new venture shall have 3 branches and the head quarter in California. These branches will be located where there is a high population in need of our services.. before setting up the venture we will identify areas within California where people are most affected by health issues. After ensuring that people of California and western coast have been well served. Our venture shall target major cities within America.

After a through assessment of the market our venture will also review of the services it is offering. F there is high demand more professionals will be included and more others ,will be introduced.

OPPORTUNITIES AND THREATS

Opportunities

1.      Growth by increasing market share through mergers and acquisitions

2.      Develop new products which link to changing peoples lifestyles of the people

3.      Incorporate new technologies to stay ahead of the competition

4.      Enter overseas markets.

5.      Launch other products not available in supermarkets and stores

6.      Sign celebrities to market our products

Our competitors are new to the game as well.   As presented, stores have really stretched the services they offer – who would even think about pairing grocery shopping with massage therapy?  The American values and objectives of comfort and convenience prevail and these outfits have attempted to cash in on the perks of all-in-one shopping without necessarily offering everything, but specializing and individualizing the experience.

      Threats

1.      Keeping control in family – Lack of knowledge, Investors unhappy

2.      Economy – Expensive borrowing caused inflations

3.      Expansion, Mergers and Acquisitions – could lead to failure

4.      Competition – other major companies entering the  market could affect their revenue

5.      Rules and Regulations of different states

6. Our main threat is direct competition with other national health food retailers.  We may beat them in service, but they will beat us with the numbers.  The large chains already have the leverage to purchase at discount for the most popular brands.

Strategies to reduce weakness

We should tailor our stores by picking up local brand items in addition to selling national health favorites. It will be important to develop the parameters of our operations.  How far are we willing to go for our customers?  Home delivery?  Online shopping? Community development projects?  Where is the store going to stop in the chain of consumption?  Do we get thrown out with the bag or are we the subject of conversation at the dinner table over a meal made with our products?

STRENGTHS AND WEAKNESS

Strengths

The venture  is a viable concept in an industry that has seen growth in all sectors. Consumers want and are actively engaging in the natural, organic, and fair trade market of goods.

First to launch of a new product in the area therefore customer confidence high
Low product costs – integration between some branches
Highly experienced management and staff
Growth by increasing market share through mergers
Able to promote several products in one place
High operation margin, no risks relating to profitability

Weaknesses

Barriers to enter Foreign Markets
Licensing problems in some states.
Highly competitive market
Inflation in the market

The venture faces a difficult entry. The industry is dominated by these giants.  However, because the industry is new and the organic movement hasn’t touched every household in America, as indicated by the number of stores and states our competitors reach, there is a great portion of the consumer base that we can tap into that has no prior exposure to mainstream health foods.  Even in areas and hot spots where saturation is high, it’s still relatively low compared to the supermarket backbone.  It appears that consumers are making a conscious effort away from mass commercialization and inexpensive albeit unhealthy products. The weakness is that we don’t have the learned experience of the giants, but rather than walk in blind, we have research resulting from the actions of our competitors to support our actions.

STRATEGIES

These strategies will be used to reduce the effects of weakness;

Diversify its products to meet the needs of peoples in all the market it operates.
Expand its products base to include other products that are liked by kids.
Reduce their cost by outsourcing business activities stay competitive
Joint venture or acquire rights to sell other consumable products to increase market share and reduce competition.
Investment in technology.
ANALYSIS IN IDENTIFYING THE NEW VENTURE STRENGTH AND WEAKNESS.

Our new business venture will be evaluating its strengths and weaknesses periodically. Our management will be regularly reviewing the businesses marketing, financial, and organizational competencies. Each factor will be rated as to whether it is a major strength, minor strength, neutral factor, minor weakness, or major weakness.

1. Marketing strengths: It will be a major strength for our venture in terms geographical advantage. Our business venture is located in the centre of California town. Here at the centre we will be enjoying the population of the people within the town. Unlike our competitor who are located towards the outskirts of the town. Our business venture is also surrounded by institutions. Learning institutions and hospitals are close to our venture. Therefore will be serving people of these institutions.

 Our new venture shall also enjoy from its effective sales force we shall employee qualified sales men in our retail shops. Our professionals like our fitness instructor, personal trainers, therapists, dietitians and nutritionists will be; people with a wide experience and they will be rated high. Our new venture will be in very good position of competing with our competitors.

Our business shall also have a major strength in good reputation for service. Our new venture will be working towards achieving mission of promoting health and good lifestyle. We will be working hard to ensure that health status of the people is improved. We shall ensure that our services are perfect so that we attract more customers to our business. Therefore we shall have a very good reputation for services.

Our company will be well known and high regarded. Our new venture shall involve all professionals within the health industry. Advice and teaching conserving health issuaes will be properly administered. We will be preparing our customers both mentally and physically to make them improve their health status.

Our company shall have a strong relative market share. Our business will have a major strength with its strong relative market share. Since companies to our competitor our business will be offering more services it will be commending a bigger market than that of our competitors. Thus our business will benefit from its strong relative market share. Therefore our new venture shall sell more earning higher profit than our competitors.

A good reputation for quality will be or major strength. Our new venture will be having competent professionals who have a wide period experience. Through offering quality services our venture shall enjoy a good reputation for quality.

2. Financial strength: A  low cost of capital will be required at the start of our new venture. This is one of the major strength of the business. Before our business builds its own building and buys its own land for expansion we shall be using hired buildings. To start our new venture we need enough money to stock our retail shop and for paying our employees.

Another major strength that the business shall enjoy is its high profitability. Since our new venture will be offering more services and at reduced prices, more sales will be made and thus more profits will also be realized.

Due to the high profitability of our new venture our business will become financially stable. Due to the financial stability of our business we shall diversify our business activities to other parts of America.

The high availability of enough stock in our retail shop shall also benefit our venture. Our customers will find it convenient for them to get drinks, clothing, food supplements and nutritional valued .light foods within our retail shop.

Our new venture will be enjoying from technical skills. Our venture will be having well educated and experienced team that will offer the necessary assistance towards improving the health status and lifestyle of our customers.

It will be our major strength for the business because it has an able and dedicated workforce. Our professionals are not only competent but also dedicated to their work. They will work hard to ensure that the needs of our customers are our number one priority.

Our customers will be able to deliver on time. Each and every activity will be done according to the needs of our customers. Every service will be offered at the required time so as to ensure good customer satisfaction. Time is the most important factor and our new venture shall ensure that time is well maintained.

3. Organization strength:- The business venture will employ well trained and capable business manager. This will be the major strength because our manager will ensure that the business is well run and all the required professionals are employed. Our business manager shall also ensure that our retail shop is well stocked.

Our dedicated works shall also promote the smooth running of the business. All our professionals will be dedicated serving the customers. Our team of dedicated professionals will offer their services efficiently in ensuring that the health status of our customers is improved.

Our new venture shall have an enlightened, visionary leadership. All our professionals are well trained and informed in handling various issues affecting the business stands at a better chance of achieving its main objectives.

Our new business venture shall be flexible and adaptable to any changes in the business. We shall enjoy by being flexible towards change. We will be responding towards changes in demand from our customers as if its expansion our business shall lay down measures that will facilitate quick business expansion when need arises. Our professionals shall also be quick in getting used and adopting to any new change in our business set up.

Our business venture shall have a speedy response to changing conditions. Being efficient in the heath food industry requires a high degree of response to the changing conditions. Due to regular changes in technology some situations requires a speedy response to the changing conditions which will be our area of strength. Our professionals shall quickly respond to changing conditions.

Strategies to build the new venture strength and correct the weakness and correct the weakness and create a structure and control to prevent entrance for rivals.

Selecting strategies to build the new venture will be aimed at defining the broad principles by which the business venture expects to achieve its marketing objectives in a target market which will involve basic decision on:

(i)  Total marketing expenditure

(ii) Marketing allocation

(iii) Marketing mix.

Total marketing expenditure:- The new venture business manager must decide the level of marketing expenditures that will be necessary so as to achieve  its marketing objectives. Our new venture shall establish its marketing budget at some conventional percentages of the sales goals. Our new venture shall quickly learn what the marketing budget – to – sale ratio is for our main competitors. Our new venture shall analyze the marketing work needed in attaining the required sales volume then coast this work hence the result will be the required marketing budget.

Our manager must decide the level of marketing  expenditure that will be necessary so that our new venture will be in a position of offering quality service. Our new ventures should employ a qualified team of professionals. Our manager should know how much will be spent at pay and professionals he should also know the profit margin that will remain after paying employed from the monthly sales.

 Marketing mix:- Our manager will be deciding how to divide the total marketing budget among the many tools in the marketing mix. Marketing mix is the set of marketing tools that he firm uses to pursue it marketing objectives in the target market. There are many types of marketing – mix tools. But our new venture shall be employed four of them. Namely:

(i)        product

(ii)       price

(iii)      place

(iv)      promotion.

The new venture shall arrive at marketing – mix decision for both the channel and the final consumer. Its not all marketing mix variables that a new venture will be changing its prices, sales force, size and advertising expenditure.

The price of our services and commodities will be adjusted in the short run. For our new venture to achieve its marketing objectives in the target market we shall list prices of the services we will be offering, and offer discount to small services the goods in our retail shops.

Promotion: our new venture shall create its awareness to the public through advertising and public relations.

4. Marketing allowances:-Markets must decide on the allocation of the market dollars to be allocated to the various products, sale areas, channels and promotion media.

Our new venture shall be changing its marketing strategy always so that final best strategy is arrived at.

PORTER’S FIVE FORCES

Porter, the Father of Competitive strategies identified five forces that drive competition within an industry (Porter M, 1986). He listed them and explained how they are applied in the industry. These strategies include (1) the threat of entry by new competitors into the industry: this is main problem of the competition. A new competitors comes in there chances that he will go with some of the buyers. Another related problem is entering new market either through geographical or vertical expansion. (2) The intensity of rivalry among existing competitors that the change of strategies: the current competitors and the task of staying competitive in current market were identified by Porter as another problem that needed strategies. (3)  Pressure from substitute products. (4)The bargaining power of buyers. (5)  The bargaining power of suppliers.

No matter which competitive force is to use the most important thing to keep in mind is the relationship between profit margins or returns and the intensity of competition. The higher the intensity of competition, the low is profits (Varadarajan p and Cunningham H, 1995),

Porter’s Five Forces Analysis

             Buyer Power:- The companies face the threat of buyers shifting their loyalty to other rival companies’ products while operating in a certain market. This phenomenon according to porter is referred to as backward integration. To curb this threat, the companies operating in the market have to come up with three generic strategies to counter this threat.

Cost leadership: – It the companies have to reduce the price of there products. Cost leadership provides the best method of companies and remaining competitive in the market.

Differentiation strategy: – The Companies in a specific industry have to come up with alternative products that are differentiation of products  from the rival firms. These products should be economic and are environmental friendly in terms of pollution and acceptance in the market in question.

The customers should be analyzed to know there likings and disliking and the product sold in the market should be able to give the customer a value for there money.  This is the major reason why the pricing of a product is done.  The consumer’s decision to purchase a particular product is usually the total value of the sum of utility value and replacement value brought by the transaction.  The utility value represents the quantity that is needed by the consumer to satisfaction.  While utility value is the customers expectation of the product which is measured by the potential need satisfaction as per perceived by the customer.  The influence of price on the customer is extremely important and it is up to the company’s management to determine the price that will attract the consumer.  If the product does not have a good utility value then we expect such a product to loose the purchasing customers, therefore the purchasing power of the customer is important.

Supplier Power:- Companies is faced with the threats of the suppliers being able to control the price of some of the materials they supply. Some may form curtails and come up with stringent price control measures that will affect the performance of the industry. The labor laws are also stringent and the workers are so unionized that treating of employees in a fair and equitable manner is inevitable. To counter this force, the companies extend its supplier chain making the prices of materials.

The generic strategies adopted by the companies against supplier power are by increasing the price of their products. In essence, the extra prices charged for the raw materials are borne by the customers. This is the differentiation strategy. Another strategy to insulate itself from this force is that of focus. Because of the higher material prices, companies have taken on the differentiation-focused strategy. In this strategy, the methodology has been improving the quality of their products. By so doing, the prices can be increased without harm being made to the customers.

Barriers to Entry: The other force challenging the businesses is entry of new companies with similar products or even more products. This would pose the threat of neutralizing the company’s profits as well as its market share. The generic positions that the companies have taken has been cost leadership. Through lowering their production costs and increasing operational efficiencies, companies have been able to lower its products prices while maintaining its profitability. This has deterred potential investors/ entrants into the market (Staw, B., Sandelands, L. & Dutton, J. , 1983).

Rivalry:- This force emanates from other companies within the same industry. The threat here is that these companies capturing the market. However, the company’s framework/ strategy should be to reduce prices whenever faced with such a threat. Prices are then reverted to normal after the exit of that company the specific market segment.

Lastly, the companies are faced with the threat of rival companies accessing their premises and imitating their production methods. However, the companies should have their headquarters, inaccessible to foreigners in order to safeguard their patents and copyrights. In addition, their employees are well compensated therefore; they do not have thoughts of leaving for rival companies.

Threat of Substitutes:-From the economist point of view, threat of substitutes arises when the demand of that good is likely to be affected when the price of the substitute changes.  This elasticity of price has formed a real force that the companies have to fight if they have to be sustained in the near future.

To reduce the strength and danger of this force, the companies strengthen their differentiation generic strategy as their frameworks. Customers would then be loyal to the uniqueness of their products.

MACRO AND MICRO ENVIRONMENT

The main mission of this new corporate venture is to provide extensive support for a lifer change. Our mission will help us to define our environmental scanning needs. The manager of our new venture will be informed. The parts of the environment to monitor and understand if the business is to achieve it are laid down objectives.

Our venture shall monitor key macro environment forces like demographic/ economic. Social/culture, political/legal, and technological that affect the day operation of the business.

Microenvironment actors like customers, competitors, distribution channels and suppliers that will affect our ability to earn profit in the marketplace.

MICROENVIRONMENT FORWCES:

Competitors, customers, marketing intermediaries, suppliers and public will all be operating in a large macro environment of forces and megatrends  that giver direction of the opportunities and pose ,threats to the company. This are uncontrollable which our new venture must monitor and respond to. There are six major forces namely, demographic, social – cultural, political /legal, technological, physical and economic.

Our new venture will greatly benefit from the high population of California. Most people will be coming to out gym from California. Customers from California will be purchasing their home equipments, cloths, drinks and light foods from our retail shop.

Our customers are located all over California town. Our products will be used by all; age groups. The young and old will be coming for advice about nutrition, diet, physical fitness, massage and skin treatment.

The diets consumed by specific ethnic communities and the lifestyle they lewd will be greatly considered. Some religious beliefs like the seventh days who do not take some foods will be taken care of.

A decline of population within California will affect its operation because will have a few people to serve.

Our business venture shall serve its customers to the gym and retail shop perfectly. Our professionals will also give customers the necessary assistance depending on the case.

As the income of residents of California increases their purchasing power will also improve. More customers will be coming to our gym if they earn a good salary. If the company will charge very low prices it will perform at a loss. Therefore  our new venture will charge prices that are moderate. A price where a customer does not complain and for the company to get some profit.

The changing consumer expenditure patterns in America will benefit our venture. Expenditure on Medicare has been increasing and this will favor our business. As family income rises the percentage spent on clothing and health increases.

Our new venture shall ensure that to improve the heath and lifestyle of customers the correct medical prescription and advice are given out.

MACRO ENVIRONMENT

Political factors:-The control of prices will adversely affect the running of our venture. High, prices should not be charged that will discourage our customers from coming to health checkups. Our venture will charge moderate prices.

Economic – Interest and Exchange have impact on consumer spending and could affect their profitability of the venture. Interest rates and exchange rates have an impact on consumer spending and can affect the profitability of the firm. There are many economic indicators which determine the environment of the business. This include;- effects of affluence, depression, inflation, shortages of product in the market, effects of research expenditure, research costs, buying power index, consumer ability and willingness, price elasticity, and cost of distribution affects the business. Other economical factors that affects business environment include;- the long term focused by the government, macro economic projections of the government and the financial stability of the state.

Cultural factors:- A consumer is influenced by the society he lives in, if a person is of a particular religion, nation, tribe or population grouping he will adopt the culture of that grouping, and the culture of a grouping is as a result of the influence of the language of the people, beliefs, knowledge, values, habits, and laws of those people.  This means this affects the consumer in question in terms of his lifestyle to the extend of what he consumes.  At times it is difficult to a person to consume some products even if he as a large disposable income because of his culture.  It is important for managers of various companies to look into the influence of culture before introducing a product into the market

Technological factors: – Our return shall be offering simple workouts like body massage, skin treatment, advice on diet, weight management. Our new venture shall ensure that a regular improvement on the quality of services offered is maintained. The company shall buy all the required equipments to be able to offer advanced health care services.

Technological environment is one of the best environments which have influence on the lives of a product. It is common in the world today where there are technological changes for managers to know technological innovations taking place in market in product development.  The technological environment is responsible for drastic changes in product development. The introduction of computers and other machines as made marketing and production of a product to be easier

MICROENVIROPNMENT ACTORS.

1.Customers: our venture shall offer quality services to it customers so as to have a good reputation. The venture shall make its prices affordable to most customers. The prices of our services will be slightly lower than those of our competitors.

Our venture will employ qualified professionals who will offer quality services than those of our competitors.

In our retail shop we will employ competent salesmen who will attract more customers to our enterprise from our competitors.

Customers will have different choices on the types of services to be offered to them. The young male generation will be coming to our gym for doing body exercise. While most young women will prefer coming for body massage and skin treatment. Those people who are overweight will be coming for exercise and weight management. The young men will be coming for advice on athletic recovery and general body exercise. Both other services will be common to both the young and the aged. Such a common services include advice on diet, nutrition  and weight management.

Both the young and old will be prepared mentally and physically on how to lead good and health lifestyles.

2. Competitor:- Our new venture shall face competition from two competitors namely California, high-tech gym and California central gym. Our main advantage of .our venture is that they have specialize on gym ignoring other important sections that we will be offering.

Their major objectives include offering good gym services to customers’ satisfaction. They have greatly narrowed their business operations.

Another common objective to the two is improving the health status of the people. Our competitors have been doing well on the gym business. They have not had many customers because of limiting their business to only offering gym.

Our Competitors future performance is greatly going to be affected will they will not diversify to other related areas.

3.  Distribution channels:- Our new venture will be offering its services directly to the customers. Our professionals will interrelate wit our customers. Our customers will explain their health problem to professional and the required assistant will be given. Our dietitians will educate our customers on the required diet one should take in order to remain health.

Nutritionists will give more information about the various food nutrients to enable our customers take balanced meals. Our professionals are efficient on offering their services and this will help our business to grow very fast and diversify to major towns in America.

4. Supply:-  We will always be employing a well trained team of professionals. Also in our retail shops we will be selling to homes items like cloths, drinks and nutritional valued light foods.

STRATEGIES IN ACTION FOR NEW VENTURE

Production v Efficiency

Production /operation. Production /operation have responsibility to ensure that processes yield products and services that conform to design specifications. Monitoring processes and finding and correcting root causes of problems are important aspects of this responsibility. The product produced will conform to needs of the customer.

Marketing and efficiency

Marketing will involve;

Positioning – the venture would like to create a niche in offering a wider array of organic foods. Most organic food health shops offer organic tomatoes, lettuce and other common vegetables. The venture will go a mile higher by offering organic tropical fruits to California. The venture will wish to be known as a store that offers hard-to-find organic foodstuffs, so that people will just come through word-of-mouth of past customers.

Promotion – Since the venture is still a small business, we will just put posters made out of recycled paper in malls and offices nearby our store so that people will take notice of our product offerings. Later on, a website about the venture will be set up to keep our customers informed about our new products.

Place – At first, we will only have one shop that will sell our products in solely inside our stores. Deliveries will also soon be instigated as our store will progress. When we have finally established our links with our suppliers, we will seek to supply organic tropical fruits inside malls. This will surely increase the scope of our reach to our customers than just maintaining one store.

Pricing – the venture will make all the prices of their goods to match the prices of their competitors. Since we are still starting, it is essential to offer better quality organic foods with the same price as our competitors.

Material management v efficiency

Material management will involve just in time method to make sure that materials are used efficiently.

FACTORS OF COMPETIVE ADVANTAGES

EFFICIENCY

Efficiency means pushing to improve, which is referred to as continuous improvement; the second is the involvement of everyone in the organization; and the third is a goal of customer satisfaction, which means looking only at the quality of final product services – to looking at the quality of every aspect of the process that produces the product or services.  total quality management should be implanted and they should  are intended to prevent poor quality from occurring. We can describe TQM qualities as follows:

1.         Find out what customers want. This might involve the use of surveys, focus groups, interviews, or some other techniques that integrates the customer’s voice in the decision- making process. Be sure to include the internal customer (the next person in the process) as well as the external customer (the final customer).

2.         Design a product or service that will meet (or exceed) what customers want. Make it easy to use and easy to produce.

3.         Design processes that facilitate doing the job right the first time. Determine where mistakes are likely to occur and trey to prevent them. When mistakes do occur, find out why so that they are less likely to occur again. Strive to make the process “mistake proof”.

4.         Keep track of results, and use them to guide improvement in the system. Never stop trying to improve.

5.         Extend these concepts to suppliers and distributors.

            Many companies have successfully implemented TQM programs. Successful TQM programs are built through the dedication and combined efforts of everyone in the organization. Top management must be committed and involved.

Quality

Top management has the ultimate responsibility for quality. While establishing strategies, for quality, top management must institute programs to improve quality; guide, direct, and motivate managers and workers; and set an example by being involved in quality initiatives. Examples include taking training in quality, issuing periodic reports on quality, and attending meetings on quality.

Innovations

The technology required to be used must be evaluated so that the venture objectives are attained. This includes not only features of the product or services; it also includes attention to the processes that will be required to produce the products and/or the services that will be required to deliver the service to customers.

Response to customers

One way to think about quality is the degrees to which performance of a product or service meets or exceeds customer expectations. The difference between these two, that is performance–Expectations, is of great interest having been met. If these two measures are equal, the difference is zero and the expectations have been met. If the difference is negative, expectations have not been met., whereas if the difference is positive, performance has exceeded customer expectations.

Customers expectations can been broken down into a number of categories, or dimensions, the customers use to judge the quality of a product or service. Understanding this helps the organizations in their efforts to meet or exceed customer expectations. The dimension used for goods are somewhat different form those used for services.

To ensure the above is made the customers complains are attended to by the customer relations manager.

References

Amar B.(1992); Analyzing New Ventures. Harvard Business School.
Drucker, P.(1998);  The Discipline of Innovation. Harvard Business Review.

Hofer, C. W. & Schendel, D. (1978). Strategy Formulation: Analytical Concepts. St. Paul, MN: West.

 Michael R. and Howard S; (2002); New Venture Financing; Harvard Business School.

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