Customer Centric Business Design the Term Paper
Excerpt from Term Paper :
Domination of the high-profit vending segment.
2. Low-cost distribution system.
3. Revamping of its organization system.
Through consolidation of control over the network of bottlers the low-cost distribution system became a reality. The skills that were vital to management of the bottling end of the business were addressed through plants operations, regional marketing and distribution. Wise (2001) According to the AMR Research Supply Chain Top 25: "The basis of competition for winning companies in today's economy is supply chain superiority." The AMR report further states that Demand-driven supply networks (DDSN) have replaced the traditional push model that worked so well in the 20th century. The customer-centric model is what is termed a "pull-model" that, according to the AMR report does the following:
Embeds product innovation
Manages demand proactively
Utilizes stochastic optimization methods to deal with variability.
The result is: "A nimbler business that leverages intellectual assets and more quickly seizes fleeting business opportunity." AMR Research Report (2004)
IV. Value Proposition and Core Competencies: The Difference
Core competencies can be defined as those things which the company focuses upon in development and achieves performance of better than any of its' competitors. Value proposition is when the company asks of itself the question: Where is the greatest market opportunity in terms of profit through long-term growth
V. Customer Satisfaction - Customer Loyalty:
customer may be satisfied without necessarily holding loyalty toward the product of a company. For example, when someone enters a store to purchase a soft drink and that individual prefers Coca Cola to Pepsi but the store is out of the Coca-Cola product the individual who then purchases a Pepsi instead of going to another store to procure a Coca Cola product is satisfied with the Coca Cola product but not loyal in purchasing habits. The loyal customer will go to
another store to procure the desired and loyally chosen Coca Cola product. The loyal customer is the higher valued customer by the company.
Summary & Conclusion:
The challenge faced by companies today is the demand for redesign on a basis of every five to seven years in order to achieve sustainable profit and shareholder value growth. Wise (1998) Organizational benefits are a benefit of Business Design along with the more important factor of value creation yielding increases that are significant in shareholder value. Finally the utilization and implementation of Business Design creates a culture of endless self-evaluation for the company. Coca Cola Company's model is a holistic model with focus toward three areas. Those are:
Level Indicators (TLI's)
Process Management Control Systems and Process Improvement
Through these key elements the company is able to learn in an expedient manner what the customer holds as being critical and vital as well as financially aligning the company in a culture of process improvement in the implementation of the Customer-Centric Business Design.
Wise, Rick (2001) A Blueprint for Shareholder Value Growth: Winning Through Strategic Business Design (2001) Questia Library Online
Slywotqky, Adrian J. et al. (1997) From the Profit Zone: How Strategic Business Design Will Lead You to Tomorrow Profits 1997. [Online] available at http://www.google.com/search?q=Centric+Business+Design:=Coca+Cola+Company&hl=en&1r=&ie=UTF-8&start=10&sa=N
Traditional Growth Moves: The Old Approaches are Losing Steam 2002 Mercer Management Consulting, Inc.
A i2 Business Optimization Services: The Road Map to Business Excellence (2004) i2 Technologies [Online] available at http://www.i2.com/assets/pdf/services/BRO_i2_BOX_bro7139_FINAL.pdf
Wise, Rick (1998) A Blueprint for Shareholder Value Growth: Winning Through Strategic Business Design. Mercer Management Journal 1998. Friscia, Tony et al. (2004) The AMR Research Supply Chain Top 25 and the New Trillion-Dollar Opportunity. AMR Research Report 2004 Nov.
AMR Research Report "DDSN 21 Century Supply on Demand" 2004 August AMR Research, Inc.
Customer-Centric Business Design: The Coca Cola Company
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