The influence of marketing relationship implementation on a building Dissertation

The influence of marketing relationship implementation on a building long-term relationship with the customers - Dissertation Example Marketing relationship is a form of marketing derived from express response marketing campaigns and is found to concentrate on retaining and fulfilling customers as opposed to focusing on sales transactions for an organization’s growth. Research has shown that profit-making organizations are in a constant competition with one another for new customers while still aiming to keep their current clientele. They are additionally reported to be competing with one another for market leadership with a constant aim of increasing earnings through customer satisfaction. For the foregoing reasons, organizations alike need to build long-term customer relationships for their sustenance. This calls for a need to develop an effective implementation strategy for establishing enduring relationships. This can be achieved through maintaining a functional customer relationship management (CRM), which aims at building strong long-term relationships between the supplier and customer (Gordon, 1999). This research paper therefore attempts to study any influence that marketing relationship has in building a long-term customer relationship. The first chapter of this paper introduces the research problem while the second chapter presents a review of the related literature followed by the methodology chapter. While chapter four presents the results of the study, chapter five subsequently discusses these results. Finally, chapter six highlights the conclusions and recommendations to the research findings. Table of Contents Page Running Head 1 Abstract 2 Table of contents 3 CHAPTER 1: Introduction 5 1.1. Overview 5 1.2. Background Information 5 1.3. Significance of the Study 6 1.4. Problem Statement and Research questions 6 1.5. Objectives of the study 7 1.6. Research design 7 1.7. Chapter Summary 8 CHAPTER 2: Literature review 9 2.1. Introduction 9 2.2. Historical Overview and Current Findings 9 2.3. Developing a long-term customer Relationship 12 2.4. Marketing Relationship Implemen tation 14 2.5. Importance of Building Relationship with Customer 15 2.6. Chapter Summary 16 CHAPTER 3: Research methodologies 18 3.1. Introduction 18 3.2. Area of study 18 3.3. Research design 19 3.4. Target population 19 3.5. Sampling technique 20 3.6. Data collection 20 3.7. Data analysis 20 3.8. Reliability of the research 21 3.9. Ethical considerations 21 4.0. Chapter Summary 21 CHAPTER 4: Results 22 4.1. Introduction 22 4.2. Characteristics of Participants 22 4. 3. Analysis of the four themes 23 4.3.1. Theme one 23 4.3.2. Theme two 24 4.3.3. Theme three 24 4.3.4. Theme four 25 4.4. Chapter Summary 26 CHAPTER 5: Discussions 28 5.1. Introduction 28 5.2. Discussion of the results 28 5.3. Practical implications of this study 30 5.4. Chapter Summary 32 CHAPTER 6: Conclusions and Recommendations 33 6.1. Introduction 33 6.2. Implications for Policy 33 6.3. Limitations of the Study 34 6.4. Recommendations for future research 34 6.5. Concluding remarks 35 6.6. Chapter summary 36 REFEREN CES 37 APPENDICES 38 CHAPTER ONE INTRODUCTION 1.1. Overview Marketing relationship is a form of marketing derived from express response marketing campaigns and is found to concentrate on retaining and fulfilling customers as opposed to focusing on sales transactions for an organization’s growth. In practice, marketing relationship is different from other forms of marketing because it recognizes long-term effects and/or importance of customer relationship (Buchanan & Gilles, 1990). Additionally, Gale & Chapman (1994) argue that marketing relationship goes beyond customer-supplier communication and encompasses invasive sales promotional messages to establishing long-lasting benefits for the entrepreneur and the customer. In the present age of globalization and information superhighway, marketing relationship is experiencing rapid evolution as witnessed by Kotler et al (1999). It is shown to be utilizing technology in opening more and more collaborative and social communication channels that create a more collaborative atmosphere. The current trend leans towards the use Information and Communications

Income Statement Case Study Example | Topics and Well Written Essays - 750 words

Income Statement - Case Study Example Revenue recognition is a significant issue because it is among the principles outlined under the GAAP that are to be followed when recording financial statements. In the field of accounting, the preparation of financial statements is guided by a number of principles. One of the main principles of accounting is the Generally Accepted Accounting Principles (GAAP). GAAP outlines a series of principles including the principle of revenue recognition. It outlines that entities should record and recognize revenue when a product has been delivered or there is the completion of a service. This includes the entity not having any regard to the timing of cash flow from the operations of the organization. For instance, if a business makes an order of one hundred compact discs from their supplier during the month of January, receives them in February and make payments in March. The wholesaler should record revenue in the month of February when he made the delivery rather than in January when a bus iness deal was established or in March when payment for delivery was received (Porter and Norton, 2009). The matching principle requires that business entities match their expenses with related revenues during the same financial period. The principle is majorly applicable in the determination of income for a specific time period. This is because the measurement of income involves the matching of revenues earned and the expenses incurred in the process of earning revenues (Norton, Diamond and Pagach, 2006). The first step in recording income for a business involves the determination of revenue which is later on followed by the deduction of the expenses incurred in earning that revenue figure. This eventually results in the determination of the net income figure. The idea behind the concept of the matching principle is that there is a cause and effect relationship between revenues and expenses. For instance, sales are as a result of the cost of goods sold expense and sales commissions . Part II Apple Inc is a US based company that specializes in the design and marketing of consumer electronics, software and personal computers. The company is one of the best performing companies in the global business market. Philips on the other hand is a Dutch company that specializes in the manufacturing of electronics. The company has emerged to be one of the strongest electronic brands in the global market. I have two financial periods for the companies including 2010 and 2009. The financial statements for Apple Inc and Philips are located under the following links: Apple Inc. http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=AAPL http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Balance&stmtView=Qtr&symbol=US%3aAAPL http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=CashFlow&stmtView=Ann&symbol=US%3aAAPL Philips http://www.philips.com/shared/assets/Downloadablefile/Investor/Annual_Report_Full_Eng lish_2009.pdf http://www.philips.com/shared/assets/Investor_relations/pdf/Annual_Report_English_2010.pdf Apple Inc and Philips follow the Generally Accepted Accounting Principles convention (GAAP) under their respective countries. Apple Inc prepares its financial statements on a basis that is consistent with the US GAAP whereas Philips prepares its fina

Texas Lottery and Education Funding Essay Example for Free

Texas Lottery and Education Funding Essay Texans believe that participating in the Texas Lottery helps the Texas Education Foundation but little do they know; how much money actually goes to the Texas Education Foundation. The effect of the Texas Lottery is causing more of a negative impact on Texans than the Education Foundation is benefiting. The Texas Lottery negatively impacts the people that play the lottery and the programs that are supposed to benefit from the proceeds. Because of the big dream of winning, the lottery has taken a toll on Texans. â€Å"People believe that the Texas Lottery is their only chance to strike it rich† (Buckland, 2010). There is not near enough money going towards the Texas Education Foundation. When the lottery first started, the Texas Education Foundation was promised to benefit much more than they are now. Since 1996, the money raised for the Texas Education Foundation paid for two weeks of schooling but today it has plummeted greatly to only paying close to three days of schooling (Dexheimer, 2010). The outcome of the lottery is not what was projected. The current cash flow does not match the projections for the education fund as when the lottery was first initiated. â€Å"Last year, the lottery sold nearly $700 million more tickets than in 1998 – and gave schools $160 million less† (Dexheimer, 2010). The Texas Lottery is negatively impacting the poor and uneducated population. The Texas Lottery demographic studies provide contradictory information concerning the games and the profits benefiting the Texas Education Foundation, and prey on the poor (Turner, 2012). Statistics show the difference in average money gambled between the educated and uneducated population. â€Å"College graduates spent a median ten dollars a month; those without high school diplomas, $25† (Turner, 2012). This research proves the negative social impact of the Texas Lottery. â€Å"In one of the most depressing, ever perpetuating social economic trends, new research from the Journal of Risk and Uncertainty shows that poor people continue to spend about nine percent of their annual income on lottery tickets† (Buckland, 2010). Texans believe that the Lottery is benefiting the Education Foundation but in reality the Texas Education Foundation is not receiving their fair share of proceeds. Therefore, the Texas Lottery advertisement has been misleading to the public. In a nut shell, the Texas Lottery is not delivering the benefits that were promised for Texans. According to the Texas Lottery in 1992, approximately 27 cents of every dollar the organization earned went to support Texas Education, but then in 1997, the Texas Legislature stepped in and made a difference by dedicating Texas Lottery Funds to the Texas Foundation School Fund and the Texas Lottery funded 13 billion dollars just within that year of change. (Hood,2011). History In 1991, before the lottery was approved by Governor Ann Richards in a televised address, she told voters that they had to choose between a huge tax bill or the lottery, if they wanted good schools. Then The Robin Hood Plan was proposed in 1993. This plan was endorsed by the State to offer court mandated fair school funding for the schools in district. Similar to the tale of Robin Hood, the law collected property tax money from wealthy schools and redistributed the funding to poor schools attempting to balance all school districts in Texas. This plan ended up falling through because the Texas Supreme Court found that the majority of school districts were being taxed the maximum rate, which the Texas Constitution prohibits.(Heines and Tinsley, 1997). In 1997, the lottery funds were placed in a general fund that was distributed to public education, health, public safety and human services. â€Å"There is no question that the Texas Lottery is the most successful state lottery in the co untry and is contributing more than a billion dollars a year to state coffers† (Heines Tinsley 1997). This was the year where the State Representative Richard Raymond and D Benavides law makers believed that the lottery funds should be dedicated to education. Texans voted for a constitutional amendment that allowed funds of the lottery to be dedicated to education funding. But the Texas Legislature examined Lottery funds of other states including California and Florida who had dedicated lottery money to the education and discovered that these states had less money for education. Critics from this era believed that states without lotteries collected fewer taxes than the states with lotteries. (Heines Tinsley 1997). In 2009, a great amount of the stimulus funds were designated for education spending. The 91 billion dollars that was supported by this fund did not cover the total federal spending on education of the years 2008 to 2009 which summed up to be 667 billion dollars. An estimation of 570 billion dollars was not supported by the total education bill of federal spending. It costs an estimated 35 billion dollars to cover kindergarten through twelfth grade on a yearly basis. (Voice,2011). â€Å"Texas law says lottery proceeds are supposed to go toward education† (Oberg 2011). The lottery has only given one billion dollars every year to Texas Schools since 1998, but since lottery sales have become greater, the lottery has not been giving more money to the Texas schools. Even with the lottery earnings increasing the amount of money applied towards the Education Fund has not shown the difference of cash increase. One of the reasons why education is not benefiting is because the Lottery Managers are making the jackpots too large. So much so it is more than they can manage to afford. Sixty-two percent of money raised by the Lottery pays for the winners’ prizes. They also have to use ten percent of the money to run the lottery’s game and use more expenses to maintain the lottery program. After all of the money already mentioned is paid out, the little bit of money that is left is given to the Education Fund. (Work, 2011). In the years that the Texas Lottery has been contributing to the Education Fund, studies now show the truth on really how much is actually funding the schools. People can now be more informed on how the lottery distributes their funds and have an understanding of how much taxes public schools are being funded. With the Texas Lottery being in affect for many years it will never catch up to the economic growth of school finances. With each year school finances increases; the lottery should consider matching the percentage rate of education funding distributed from the lottery. If they cannot match the financial increases then the Texas Lottery should not be supported by Texans. As a result, The Texas Lottery has become a negative impact on the poor and uneducated and has not provided the dividends that were expected for all Texans. References Buckland, Jason. â€Å"How Lottery Tickets Ravage Low Income Families,† MSN MONEY, May 28, 2010. http://www.everydaymoney.ca/2010/05/how-lottery-tickets-ravage-lowincome-families.html Dexheimer, Eric. â€Å"A Different Game than State was Sold Two Decades Ago,† AMERICAN STATESMAN-STAFF, September 7, 2010. http://www.statesman.com/news/news/state-regional-govt-politics/texas-lottery-a-different-game-than-state-was-so-1/nRxZd/\ Heines, Vivienne and Tinsley, Anna M. â€Å" Most Texans think lottery is good way for state to raise money† Harte-Hanks Communications, February 24, 1997. http://www.texnews.com/texas97/texpoll022497.html Hood, Rebecca. â€Å"I Wonder: Texas Lottery and Education,† KVUE.COM, April 4, 2011. http://www.kvue.com/news/local/I-Wonder-Texas-Lottery-and-education-119036764.html Oberg, Ted. â€Å"How Much of your Lottery ticket is helping education† ABC 13 News, May 18, 2011. http://abclocal.go.com/ktrk/story?section=news/in_focusid=8136388 Turner, Allan. â€Å"Texas Lottery Proved Popular Last Year,† HOUSTON CHRONICLE, January 18, 2012. http://www.chron.com/news/texas-lottery/article/Texas-Lottery-proved-popular-last-year-2591258.php Voice â€Å"Getting Educated† The Daily Hurricane, March 28,2011. http://dailyhurricane.com/2011/03/gambling-with-our-chidrens-education-and-our-future.html Work, Ann. â€Å"Schools get $1 billion from lottery† Times Record News, April 28,2011 http://www.timesrecordnews.com/news/2011/apr/28/schools-get-1-billion-from-lottery/?print=1. Bibliography BUCKLAND, JASON. â€Å"How Lottery Tickets Ravage Low Income Families,† MSN MONEY, May 28, 2010. http://www.everydaymoney.ca. (11/19/2012). DEXHEIMER, ERIC. â€Å"A Different Game than State was Sold Two Decades Ago,† AMERICAN STATESMAN-STAFF, September 7, 2010. http//www.statesman.com. (11/19/2012). HEINES, VIVIENNE and TINSLEY M. ANNA. â€Å"Most Texans Think Lottery is Good Way for State to Raise Money† HARTE-HANKS COMMUNICATIONS, February 24,1997. http://www.texnews.com. (11/19/2012) HOOD, REBECCA. â€Å"I Wonder: Texas Lottery and Education,† KVUE.COM, April 4, 2011. http://www.kvue.com. (11/19/2012). OBERG,TED. â€Å"How Much of Your Lottery Ticket is Helping Education,† ABC 13 NEWS, May, 18, 2011. http://abclocal.go.com. (11/19/2012). TURNER, ALLAN. â€Å"Texas Lottery Proved Popular Last Year,† HOUSTON CHRONICLE, January 18, 2012. http://www.chron.com.(11/19/2012). VOICE. â€Å"Getting Educated,† THE DAILY HURRICANE, March 28,2011. http://dailyhurricane.com. (11/19/2012). WORK, ANN. â€Å"Schools Get $1 Billion from Lottery,† TIMES RECORD NEWS, April 28, 2011. http://www.timesrecordnews.com. (11/19/2012) Work Cited 1.Jason Buckland. â€Å"How Lottery Tickets Ravage Low Income Families,† MSN MONEY, May 28, 2010. 2. Eric Dexheimer. â€Å"A Different Game than State was Sold Two Decades Ago,† AMERICAN STATESMAN-STAFF, September 7, 2010. 3.Eric Dexheimer, Pg. 1. 4.Allan Turner. â€Å"Texas Lottery Proved Popular Last Year,† HOUSTON CHRONICLE, January 18, 2012. 5. Allan Turner, Pg. 1. 6. Jason Buckland. Pg.1. 7.Rebecca Hood. â€Å"I Wonder: Texas Lottery and Education,† KVUE.COM, April 4, 2011. 8. Vivienne Heines and Anna M. Tinsley â€Å" Most Texans Think Lottery is Good Way for State to Raise Money† HARTE-HANKS COMMUNICATIONS, February 24, 1997. 9. Voice â€Å"Getting Educated† THE DAILY HURRICANE, March 28,2011. 10. Vivienne Heines and Anna M. Tinsley, Pg. 1. 11. Voice, Pg. 1. 12. Ted Oberg â€Å"How Much of your Lottery ticket is helping education† ABC 13 News, May 18, 2011. 13. Ann Work â€Å"Schools get $1 billion from lottery† Times Record News, April 28,2011.

A Character Sketch Of Joe Gargery :: essays research papers

A Character Sketch of Joe Gargery Joe Gargery might not be the smartest or wisest of Dickens' characters, but he is definitely one of the kindest and most humane. Although Miss Havisham gets much attention for being different, I think that you will soon be convinced that Joe, however simple he may be, is definitely a unique character. It is my opinion that Dickens made an effort to raise the readers respect for Joe by the sharp contrast between him and his wife. Three qualities belonging to Joe are his affectionate nature, pride, and his perseverance. When Joe asks Mrs. Gargery to marry him, he especially insists that she bring her young orphaned brother, Pip, to live with them. Joe never reminds Pip of this fact, except when telling Pip how much he thinks of him. Mrs. Gargery, on the other hand, is constantly reminding Pip to be thankful of her "raising him by hand". At one point, Pip decides he will teach Joe to read. Although Joe has no real aspiration for this, he humors Pip and lets the boy instruct him. As mentioned before, Mrs. Gargery is a very cruel person. One would think living with her would drive even a saint to kill. Even so, Joe never says a harsh word about his wife and treats her with the utmost respect. Pip's decision to go to London has a greater impact than most readers think. Not only was Joe losing a set of hands around the forge, but he was also saying farewell to a boy who must have been like a son to him. Joe knew that once Pip left they would never have the same relationship. It was clear to Joe that this was Pip's dream, so not once did he question the decision Pip had made. When Pip is asked to come to Miss Havisham's and "play", Mrs. Gargery and Pumblechook are driven crazy wondering what gift she will give Pip for his service. Joe, on the other hand, pays no attention to their high hopes. His pride is also evident when he turns down the money Jaggers offers him for Pip's indentures. It is not that Joe couldn't use the money, after all he is losing Pip's help in the forge and his wife is bedridden. Joe proves to be a man of great perseverance. He manages to run a smithy, be married to a wife with a temper that makes a rabid dog seem tame, and

Redevelopment of Salford Quays

In the 19th century the city of Manchester was at the heart of the industrial revolution; it was a thriving port and the centre of Lancashire's textile industry. Yet, by 1950 business had declined to an all-time low. The canal journey had become too slow and therefore uneconomical for factories and companies. The port could no longer respond to the pressures placed on it by the changes in technology. The docks lay neglected and derelict. Vandalism and crime rates were high, as was unemployment (the city had depended on the docks for jobs). However, with the help of government funding, grants and publicity the city began to address its social, economic and physical problems resulting from past industrial decline. In 1985 Salford began its huge re-development scheme, construction continued up until 1993 and now is a perfect example of successful inner-city redevelopment. All the decisions that were made were complex and had to consider what land uses were to be located where and how much land to devote to each competing demand or problem. The construction work alone provided around four hundred jobs, and the area now provides employment for over 6,000 people, leading to the fastest drop in unemployment ever within the Greater Manchester area. Community Schemes have been aimed at improving the quality of schools has kept the youth unemployment rates low. The new Heritage Centre also provides an educational service to schools, colleges and the public. Primary school pupils through to university students use Salford Quays for learning purposes. Salford Quays has addressed other problems too such as vandalism, crime rates, poverty and the lack of investment and funding in Greater Manchester. Organizations such as the New Deal for Communities programme and other funding (over i100 million in lottery funding has been invested) based in Salford Quays have worked at putting money back into the Greater Manchester community. The Salford Partnership also launched a community plan; all of which demonstrates a commitment to working to achieve change. Plans such as these have improved living conditions and lead to a drop in poverty rates. To keep investment into the area high, over 300,000 feet of office space was built attracting companies into the area. Well known companies such as Kellogg's, Rank Hovis, Ford Trucks and Konica all have offices in Salford Quays. Facilities at such buildings as the MGM Cannon cinema and Copthorne Hotel, because of their location, car parking and accessibility attract people from the local area as well as other parts of Greater Manchester. In addition, a high of local pride has been generated that, together with higher income (due to greater employment) and places to go, has lead to a reduction in vandalism and crime. Easy access to Salford Quays via a Metro link, as well as entrances to the region's motorways, railways and the city centre of Manchester has resulted in a rise of tourism. Places such as the Lowry Museum, the Imperial War Museum North, as well as the overall design of the area attract large numbers of visitors every year. This has increased the amount of money that has been invested into the area. The redevelopment has made Salford Quays an attractive place to visit, work and live; it has also been a model for other cities to follow. The social and economic benefits have been felt throughout Greater Manchester and the North West.

A Framework Of Duties And Responsibilities Business Essay - Free Essay Example

Sample details Pages: 8 Words: 2355 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Narrative essay Did you like this example? An organization structure is a set of planned relationships between groups of related functions and between physical factors and personnel required for the performance of the functions. The organization structure is generally shown on an organization chart. It shows authority and responsibility relationships between various positions in the enterprise by showing who reports to whom. Don’t waste time! Our writers will create an original "A Framework Of Duties And Responsibilities Business Essay" essay for you Create order Organization structure lays down the pattern of communication and coordination in the enterprise. Though organization structure is very important, it is not an end in itself. According to Peter.F.Drucker, Organization is not an end in itself, but means to the end of business performance and business results. Organization structure is an indispensable means; and the wrong structure will seriously impair business performance and may even destroy it. Organization structure must be designed so as to make possible the attainment of the objectives of the business for five, ten, fifteen years hence Importance of organization structure: Sound organization structure can contribute greatly to the survival continuity and stability of the enterprise. The need and the importance of organizing and the organistaional structure can be understood more precisely on the basis if the following points: Facilitates Administration Sound organization helps in the performance of management functions like planning, staffing, directing and controlling. Inadequate organization may result in duplication of work and efforts and some of the important operations may be left out. Sound organization facilitates the performance of various managerial functions by division of labor, consistent delegation or job definition and clarity of authority and responsibility relationship. Promoters Growth and diversification Sound organization designed in scientific principles can create conditions conducive to planned expansion and diversification of the activities of the enterprise. It can help in keeping the various activities under control and increase the capacity of the enterprise to undertake more activities. Coordination Organization is an important means of bringing coordination among the various departments of the enterprise. It creates clear-cut relationship between the departments and helps in laying down balanced emphasis in various activities. It also provides for the channels of communication for the coordination of the activities of different departments. Optimum use of technological innovation A sound organization structure is flexible to give adequate scope for the improvement in technology. It facilitates introducing changes in the enterprise by modifying the authority and responsibility relationship in the wake of new developments. Optimum use of Human Resources Sound organization matches the jobs with the individuals and vive-versa. It ensures that every individual is placed on the job for which he is best suited. This helps in the better use of individuals working in the enterprise. Stimulates Creative Thinking An organizational structure based on clear-cut demarcation of authority, higher range of responsibility, discretionary freedom granted to personnel, incentives offered for specialized work, etc. will certainly foster the spirit of constructive and creative thinking. Such an atmosphere will give an opportunity for the staff to display their hidden creative talents which in turn will lift enterprise to achieve higher goals of business. Training and Development An effective organization facilitates delegation of authority which is an important device for training and developing the personnel. Delegation of authority is also an important means of directing the subordinates. It prepares them to take more responsibilities whenever need arises. Determinants of organizational structure Organization structure provides a basis or framework within which managers and non-managerial employees perform the joins assigned to them. In other words, organization structure may be considered as the core element around which various functions are performed and several processes operate. The stricture of organization is consciously designed by the management. However, in designing the structure the following factors are to be considered: Objectives and Strategy Design of structure begins with the identification of organizational objectives. There is a way of designing what the main structure of the organization should be, without an understanding of what the organization is for and what it is trying to achieve. Environment Organization is a system and every system has its boundaries. Beyond the boundaries there exists external environment which affects not only the foundation and functioning of the organization but also is structure. Technology An organization is a socio technical system. Technological aspect which refers to the manner in which various activities will be performed is an important part of organizational structure. People Organizations are formed by and operated through people. Large number of people are employed for both managerial and non managerial jobs and various activities are assigned to them and finally they put in authority relationships. Size There are several criteria to determine size of an organsiation such as number of persons employed, amount of capital invested, volume of turnover, and physical capacity. Forms of organization on authority relationships are: Line organization Line and Staff organization Functional organization Forms of organizational structure Functional structure In a functional structure activities are grouped and departments are creates on the basis of specified functions to be performed. Activities related to a function are grouped in a single unit with a view to give a well defined direction to the whole group. For instance, in an industrial enterprise, the major functions like production, finance, marketing, personnel may be grouped into different departments as shown in the figure. Managing Director Personnel manager Marketing manager Production manager Finance manager Advertising Customer service Sales Marketing researchThis type of structure is highly suitable for an enterprise engaged in production and distribution of a single product or a small number of products. It is very useful where it is desired to introduce specialization in the performance of various functions like production, finance, marketing, etc. But where it is required to handle multiple products, functional organization may prove to be insufficient. Divisional structure It is formed by crating a set of autonomous units or divisions which are coordinated by the central headquarters. For example, a company may have three divisions to manage textiles, cement and shipping. But to coordinate their functioning, certain essential services such as Corporate Planning, Finance, Legal and Research and Development are organized at the headquarters as shown in the figure. This structure is popular with giant firms dealing in multiple products and operating in different geographical regions. The products are often unrelated and require different emphasis on different functions. And the territories served by the firm have their unique problems Company Headquarters Research and Development Legal Finance Corporate planning Textiles division Cement Division Shipping Division Finance Marketing Finance Marketing Production Production Customer Based Structure Departmentation by customers may be followed in enterprises engaged in providing specialized services to different classes of customers. Under this, customers are guide for grouping the activities. The management groups the activities on t he basis to cater to the requirements of clearly defined customer groups. For instance, a big automobile servicing enterprise may organize its departments as follows: heavy vehicle servicing division, car servicing division, and scooter servicing division. Many educational institutions follow this type of deparmentation. They offer day courses, evening courses and correspondence coursed to meet the requirements of different types of students. Similarly, a commercial organization may be divided into wholesale, retail and export departments as shown in the figure. Company headquarters Research and development Corporate planning Finance Retail division Marketing Wholesale division Export division Example of Coca-Cola: Coca-ColaÂÂ  is aÂÂ  carbonatedÂÂ   drink sold in stores, restaurants, andÂÂ  vending machinesÂÂ  in more than 200 countries. It is produced byÂÂ  The Coca-Cola CompanyÂÂ  ofÂÂ  Atlanta,ÂÂ  Georgia, and is often referred to simply asÂÂ  CokeÂÂ  (a registered trademark of The Coca-Cola Company in the United States since March 27, 1944). Originally intended as aÂÂ  patent medicineÂÂ  when it was invented in the late 19th century , Coca-Cola was bought out by businessmanÂÂ  Asa Griggs Candler, whose marketing tactics led Coke to its dominance of the world soft-drink market throughout the 20th century. The company producesÂÂ  concentrate, which is then sold to licensed Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts with the company, produce finished product in cans and bottles from the concentrate in combination with filtered water and sweeteners. The bottler s then sell, distribute and merchandise Coca-Cola to retail stores and vending machines. Such bottlers includeÂÂ  Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company also sells concentrate forÂÂ  soda fountainsÂÂ  to major restaurants andÂÂ  food serviceÂÂ  distributors. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke brand name. The most common of these isÂÂ  Diet Coke, with others includingÂÂ  Caffeine-Free Coca-Cola, Diet Coke Caffeine-Free,ÂÂ  Coca-Cola Cherry,ÂÂ  Coca-Cola Zero,ÂÂ  Coca-Cola Vanilla, and special versions with lemon, lime or coffee. Since Coca-Cola is the leading soft drink brand it has to serve a large market. Coke was previously using a simple functional structure which wa not so effective to meet the increasing demand. Like any other company it started off on a small scale and then became the m asters of the beverage industry. It has long chains spread all over the world. The Coca-Cola realizes that it needs to be able to meet the ever changing demands of its customers. This is why the company pushed towards decentralization in the nineties, and even more so recently. The organization has two operating groups called Bottling Investments and Corporate. There are also operating groups divided by different regions such as: Africa, Eurasia, European Union, Latin America, North America and Pacific. Each of these divisions is again divided in geographical regions. By allowing decisions to be made on a more local level, the organization can quickly respond to the changing market demands, and the higher level management can focus more on long term planning. Certain divisions of the company like Finance, human resource, marketing, innovation and strategy and planning are centrally located within the corporate division of the company. Some of these functions takes place at lower levels in each of the regions of the company; however most of the decisions are made at the top of the hierarchy. For example in 2002 the decision to sponsor the world cup was done at the corporate level. Corporate headquarters, however, allowed the local divisions to make the advertising decisions. The Coca-Cola Company currently employs approximately 94,800 employees. According to aÂÂ  general organizational chart obtained from theÂÂ  companys website, there areÂÂ  more than 5hierarchical levels at the corporate level. For example: the head of the Canadian division reports to the president and COO of the North American Group. That president reports to the CFO, who reports to the Office of the General Counsel. The General Counsel then reports to the CEO. It is fair to assume that there are at least a few more steps in the hierarchy at the local level. Due toÂÂ  its tallÂÂ  structure, theÂÂ  organization hasÂÂ  experienced communication probl ems.ÂÂ  One ofÂÂ  the problems discovered through a survey, was that the people and the company lacked clear goals. Tall hierarchies also cause motivation problems, which is why the organization is attempting to get employees more engaged. The increased usefulness of the companys intranet will greatly increase the communication between every level of employees, and allow upper management to effectively communicate to the front line employees The Coca-Cola Company realizes that a divisional structure gives the organization the best opportunity to react to the changes in its uncertain environment, but also allow it to maintain a level of stability. The multidivisional structure is beneficial for the organization for a variety of reasons. The division basedÂÂ  on geographic region allows certain aspects ofÂÂ  the companys operations to beÂÂ  tailoredÂÂ  toÂÂ  theÂÂ  individualÂÂ  market.ÂÂ  One advertisingÂÂ  campaignÂÂ  orÂÂ  sloganÂÂ  may notÂÂ  be appropriate for another market, so decisions about specific ads are made closer to the individual markets.ÂÂ  Multidivisional structures allowÂÂ  divisional managersÂÂ  toÂÂ  handleÂÂ  daily operations while corporate managers are free to focus on long-term planning There are also problems associated with this type of structure. If the company creates divisional competition, coordination may decrease because each division wants to have an advantage over everyone else. Communication problems may also exist because information can become distorted when it has to travel up and down tall hierarchies. A Multidivisional matrix structure may be better suited for Coca-Cola Company. This would increase coordination between corporate and divisional levels, and managers at each level would work together to create solution to problems. While such a structure may be too complex for a global organization, the company may wa nt to look into it. The following steps can be adopted to make better organizational structure for the company : Identify business conditions that cause operational problems due to your current organizational structure by distributing an employee survey to gather input and suggestions from the people experiencing challenges. Identify current roles and responsibilities to assess your organizations ability to deliver on commitments and set expectations accordingly. For example, if you determine your development team is also responsible for providing customer support, you must prioritize activities so that project milestones and customer service level agreements are both met. Analyze employee feedback to identify gaps in the organizational structure that prevent effective work flow. For example, employees may lack training on the use of new equipment, software or procedures. Poor organizational structure can prevent employees from describing their operational needs effectiv ely. Once you have identified these gaps, you can respond by proposing possible alternatives to your executive management team. Focus your organization on a common vision and strategic goals. Implement business processes that support these goals to compensate for the poor organizational structure. Align all work to your companys strategic goals, rather than the organizational structure. When tasks align to your companys goals, increased productivity and reduced waste leads to better financial performance for the company as a whole. Ensure employees have clear performance goals and development plans in place. When people understand their responsibilities, they are more likely to express commitment and loyalty to the company mission. Monitor your new processes and improve them as directed by employee (and customer) input. Adjust your organizational structure to reflect the best way to achieve business goals. Establishing a flat hierarchy (one without too many levels), d ecentralized reporting, shared responsibilities and open communication that enables employees to respond rapidly to situations tends to yield the best results.

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