Company

In this case study the authors have given a detailed overview of the performance of Google and the opportunities and the challenges it faces by the prominent competitors. Google is an Internet services provider, which core competency is its superb web search engine. The company now needs an effective differentiating enterprise-wide strategy in order to survive and prosper against aggressive competition. The main source of revenue of Google is its AdWords program, which most businesses use to promote their products and services.

Google major tools include desktop search, Google browser buttons, Google in your language tool and Picasa photo organizer. The main services include Google alert, Google Answers, Google Catalogs, Google Image Search and Google News. Nevertheless the company’s main strength and competitive advantage is its superior Internet search technology. Google’s main weakness is the lack of any switching cost for users to another search engine. Microsoft has decided to take counter measures against Google success in this regard. Google’s main competitors in the Internet search business are Yahoo, MSN, and AOL.

These companies have started major efforts to develop their Internet search capabilities to outperform Google. These companies already enjoy large user base due to other services they provide via subscription, like email services. Yahoo is second to Google in its search engine popularity and the leader in other services like email and web portals. It also offers business services like domain name registration, web design and development and web hosting etc. Security and confidentiality are the major weaknesses of Yahoo.

AOL a subsidiary of Time Warner Inc. specializes in Internet services provision and has also entered in the Internet search market, where it is ranked fourth among the main competitors. AOL’s main weakness is its lack of popularity beyond the United States and Canada. MSN developed by Microsoft is offers Internet services based on emails, personals, online shopping etc. It has also linked its search engine to Encarta Encyclopedia. Microsoft has openly challenged Google and has expressed intentions to improve its search engine capabilities to a new level.

Despite its dominance in the software market it has been rapidly losing its user base to Google. Google founded in 1998 is offers highly targeted advertising solutions, global Internet search solutions, and intranet solutions. It provides ads based on keywords and interface in more than 88 languages. It is very popular outside the United States also. Most of Google’s revenue comes from advertising through its AdWords program, based on auction system. It has a powerful self-management system. Google charges the advertisers when a user clicks the ad appearing on the search page.

Some other major services include Google Images, Google Groups, Google Directory search, Google Toolbar, Google News, Google Wireless, and Google Catalog etc. Google Corporate services include Advertising, Business Solution and Case Submission links. The loyal pool of Google users who use its search engine as a primary gateway to the Internet are the most probably target customers of Advertisers via Google. Despite of its usual contextual ads Google has also started offering Flashier ads, which are more attractive to the users. Google’s primary technology includes its search engine, AdWords and AdSense program, which provides relevant ads.

It also attracts a large number of third party websites to use Google search engine. Google is extremely picky about recruiting new staff, but it is entirely based on merit. Google does not use its home page for advertising neither the television. Google also needs to expand its member-ship grabbing efforts by introducing new services. Google is though far ahead than its competitors and financially in a strong position because of a revenue growth of 117. 56% and minimum expanses, but it needs substantial innovation to keep it up.

Google’s founders have two different visions about future vision of Google. Larry Page suggests that Google should focus on Internet Search Solutions. On the other hand Sergey Brin suggests that company should Google needed to add a broad range of services and communication tools like instant messaging, news, email, website developing and hosting etc. In short Google needs to expand its business. Reference List: Teye-Kofi, Joseph, Mockler Robert J. , Gartenfeld, Mark. 2005. Google: An Internet Search Service Company. Strategic Management Research Group. New York, NY.

Pesetl analysis of apple company

Political

The political environment that Apple operates in is quite stable and has been over a long period of time. However, since Apple’s products are widely distributed and sold the world over, there is high risk of problems occurring in some countries where trading with Apple’s distributors is not feasible. Terrorism factors come into this, as because of such factors, Apple’s products would not be able to reach these markets and hence restrict the growth of the company. Some governments may interfere with different protectionism policies like in Japan and hence Apple had to adapt its policies. Governments may even enforce barriers to entry however due to the global nature of Apple’s operations, this factor doesn’t have much influence. Furthermore, since one-third of Apple’s production is outsourced, these factors may even interfere in the timely manufacturing of the products.

Economic

Economically, the industry has been in a stable shape ever since the 1990’s recession and the 1999’s bubble burst. A lot of companies went down as a result and those few years weren’t good for the technology companies. Also since a huge number of computers are purchased by the government, any political problems or economic recession activity has a negative consequence on the computer industry and thus on Apple. The recent recession has slowed down the economic growth of the company from the inside and as well as in the decrease in demand of computers. However, this decrease has been met with increase in sales of company’s other products. Also when the economy shows a sign of improvement, consumer spending and investment might increase as well thus improving the whole industry.

Legal

Being a global company Apple has to sift through different legislations area wise which can be quite different from those at home. These may cause problems to the company as discussed above. Furthermore local regulatory authorities and bodies like Copyright Arbitration Royalty Panel (CARP) and Recording Industry Association of America (RIAA) can impact the working of the company. Due to several copyright infringement cases, the Music Online Competition Act had to be tweaked to provide security. These laws and changes impact the company a lot and promote legal downloading of media and curb piracy. Also read R yanair PESTLE analysis

Social

The social trend in the case of Apple is very important because consumers know that Apple’s products are innovative, trendy and they carry a fashion statement. Having a hi-tech Apple computer or an iPod is a way to show others that a person belongs to the ‘cool’ class.

Due to the increasing usage of computers and internet in the education sector, there is more demand of computers with applications that help students to learn. Also due to better perceived efficiency and awareness, the global trend is increasing in the usage of computers which is a sign that the industry is still growing.

Environmental

With the advent of modern computing, technologies keep on evolving whole the old ones get obsolete. Organizations and consumers have to regularly changing their machines to stay in touch with the latest applications. The problem is that these old systems are of hardly any use anymore and thus computer wastage has been increasing. Computer manufacturers are now ordered to develop machines that use lesser electricity or that can be recycled and are ‘green’ in some way.

Technological

Being a technological company, Apple Co. has ever been in the limelight by developing quality and innovative products. This trend grew from the start when Apple saw that the industry giants like IBM, HP and Intel were making headway into the technological development of hardware. To match the capabilities powered by the new chips and hardware systems, companies like Microsoft and Apple competed for the best operating system. Soon this fight took a different turn when Microsoft took the lead while Apple became focused on a particular niche. Ever since then, technology has drastically improved giving the company more chance to shrink the hardware size and make it even more faster and powerful. Even more devices can be connected to the computer enabling wireless communications and development of media devices.

References

Iliev, V., Lindinger, A. and Poettler, G. (2004). Apple Computer Inc. [Internet]. Available from <http://www.andreaslindinger.net/downloads/strategicmgmts-lindingeretal.pdf> [Accessed August 13, 2010]

Porsche has been remaining a profitable company manufacturing luxury sport cars for more than 70 years. The reasons behind that success are innovation, design, and brand reputation. The brand survived perfectly in the supercar market with full of external and internal pressures. There are changes in political regulations, cash flow management problems, and economic challenges which deduct weak survivors who cannot overcome those obstacles like Lamboghini who declared its bankruptcy in 1978 before being sold to many companies later.

In the present, Porsche is the brand under Volkswagen group or VW, a large automobile manufacturer who owns Bugetti, Lamboghini, Audi, Bentley, Seat, Scoda, Scania, and Volkswagen. The VW is also a large leading automobile group globally with one-ended service; financial service, dealer service, leasing, banking, insurance and fleet management. Porsche plays an important role in strengthen group synergy by helping other brands improve their innovation, manufacturing and quality.

The vital challenge for Porsche now is a change in the US’s regulation on gas emission control in automobiles or CAFE which will set the emission of one car to be less than 39 mpg per car in 2020. In this case Porsche will not be able to sell its car in the US ever again unless the law is enforced in 2020. The US market is accounted for 26 percent of all sale revenues of Porsche. Being unable to sell its products to the US can cause Porsche to lose a lot of revenues. However, another large sale volume is now turning to china.

Although china is not the number one country for Porsche in term of sale volume now, its growing number in sales cannot be ignored. Nowadays, Porsche is using traditional way of expanding its global market, exporting, because of many uncertainties and its strong supportive of manufacturing infrastructure in German. Porsche started to leverage its sport functionality and brand equity itself to be beyond supercar boundary by introducing SUV, the Cayenne and sedan, the Panamera.

This time, it clearly showed that Porsche’s brand equity can be leveraged since the Cayenne and Panamera can still be competitive in multimarket competition and looked more luxurious than its competitors like BMW and Mercedes Benz.

Problems of Porsche

Brand dilution challenging to overcome as it broke the boundary of a sport car brand and jump into SUVs and Sedans market and should it ceases its product line expansion and come back to focus only on its core competitiveness, sport car .

Market reaction to multiple sport cars offers by Audi, Lamboghini and Porsche 5 forces analysis. Rivalry in this type of market is moderate because first, each brand tries to differentiate itself from other competitors. For example, In SUV market, Mercedez Benz ML63 focuses on luxurious look and low price than Cayenne whereas Audi Q7 offers great interior design and BMW X6 acquires the faster SUV of all four brands. However, the competition between existing brands are still high, each brand tries to offer best quality and features as possible to offset with their luxurious prices.

Threat of substitute products is also low because of the innovation and technology of Porsche is so unique such as PDK system and PTV system that were invented by Porsche helping to increase driving performance. Therefore, other substitute brands can only offer other things such as interior design and acceleration performance which will never be 100 percent substitute Porsche.  Bargaining power of supplier is high because Porsche offers such a premium luxurious supercar. The brand reputation and equity allow the company to charge more expensive price and also support its bargaining power since its product is hard to imitate.

Bargaining power of buyers is low as customers are becoming less price sensitive. For customers, when they purchase supercars, it is not about only price. It’d rather be performance, brand reputation, quality, and design. When Porsche can meet all of those requirements, they can charge higher price.  Threat of new entrance is low because of high capital requirement. The cost of setting up automobile factory is high and the innovation cost is also high and require a lot of accumulated experience to do so.

There are difficulties to imitate such innovation those invented by Porsche due to law protection and unique knowhow. Internal analysis Porsche is in focus-differentiation where it chooses to compete within small niche market with the ability to bring out its own uniqueness. Porsche differentiate itself from other competitors in term of unique design and technology. It becomes one of the leaders in supercar market in the world. Its own innovation, technology and design allow it to enjoy high profit rate from ability to response to customers who want a supercar with reasonable price and give them high performance.

One of the most critical objectives in marketing is developing insights regarding customers. Often, perspective for this concern has only highlighted how consumers can be attracted or how to extend customer base. However, Lal and Weber (2000) also point out the need to evaluate the characteristics of consumers and how they influence and impact sales and marketing models. They used the example of Freeport Studios, the catalogue sales program targeting to service women’s clothing of outdoor equipment retail and catalogue leader L. L.

Bean launched in the late 1990’s. Segmentation and Freeport Studios Segmentation implies the division of whole into a separate and distinct unit. In the context business, particularly marketing, there is implication that segmentation creates a distinction but should not be considered as equitable to independence. Thus, there is a need to identify the characteristics of the segment targeted or being evaluated. There are also suggestions that segmentation should be able to determination of the value and function of the segment on the whole.

The name of the new catalogues reflects these objectives, “Freeport” is a nod to their parent company’s flagship store and “Studios” was to signify the stylishness and flair of the products in the catalogue. The catalogue in itself was distinct to L. L. Beans in that there was a greater recognition of the psychographics of the target market, drifting from the traditional emphasis on function and value. In the case of Freeport Studios, the catalogue was designed to address a specific demographic of L. L. Bean: women in their twenties and thirties who had active lifestyles who have a history or consciousness of L. L.

Bean who has an appreciation for fashion and design were the main target market. This market segment is to be addressed specifically by Freeport Studios catalogue without excluding them from other L. L. Bean catalogues. At the same time, it was aimed to strengthen the core products of L. L. Bean catalogues wherein sales for the target had since hit a plateau. Customer Lifetime Value and Company Lifep Also referred to as Lifetime Value (LTV), Customer Lifetime Value (CLV), is a marketing concept developed from customer life cycle management perspectives.

CLV is calculated by determining the prevent value of cash generated from the patronage of the client based on the customer life cycle, providing an cash or quantifiable value of the relationship that is to exist between the client and the company . The evaluation is often used to determine whether short loss from operations or transactions can be justified by long-term values. As seen in the computation for CLV, the values calculated from sales is below the targets determined by the company, particularly in the case of total revenue expectations.

American Express Company is one of the leading global travel and payment Companies.  The company was incorporated in 1965 and is headquartered in New York. They have offices in France, Australia, Germany, India, China, Argentina, Thailand, Egypt, United Kingdom, Italy, Canada, Brazil, Japan, Spain, Mexico and the United States of America. The company’s principal business is charge and credit card payment products and travel-related services offered to consumers around the world.

The two major groups of business are Global Consumer Group comprising of credit and charge card services, travel services, travelers cheques and secondly Global Business to Business Group comprising of  merchant services and commercial services. All these products are sold to retail consumers, small and medium enterprises, large corporations, banking and financial institutions.

The different channels of product distribution are internet, direct mail distribution, employee and third party distribution teams and direct response advertising. The values of the company are “trust, security, integrity, and quality and customer service.” The brand of the company has been awarded as one of most valuable brand in most of the published studies. The company is the third largest general-purpose charge and credit card network based on charge volume, behind Visa and MasterCard.

“American Express operates in over 130 countries around the globe.” (Website www.americanexpess.com) The company’s various products are sold globally to all the consumers. The company issues both general charge and credit card internationally. These cards are issued either as proprietary cards or under licensing agreements together with another company. Merchant servicing i.e. signing of new merchants, processing and settling card transaction is also done globally. Two major businesses are Global Network Service(GNS)and Global Merchant Service(GMS).

GNS business ensures cards bearing American Express are issued by international subsidiaries, affiliates, third party institutions. Some of the examples of international cards are British Airways American Express card, Westpac in New Zealand, GE Money American Express Card in Japan, Iberia Sendo American Express Card in Spain and many others. GMS business signs new merchants across the globe and processing and payment of transactions. The company’s main aim is to ensure acceptance of American Express cards in all the locations of the world. Some of major merchants are RBS Insurance Group of the United Kingdom, McDonald’s restaurants across Australia, Unicoop Firenze SC hypermarkets in Italy, Christie’s auctions in Hong Kong.

The company also sells it proprietary cards internationally and aims at selling co branded cards in global market. Some of the co-branded cards are David Jones (Department Stores) in Australia, Cathay Pacific in Hong Kong and Taiwan, and Centurion Charge Cards in Argentina and Canada. The Global Travel Network provides travel and foreign exchange services to consumers in various locations. “American Express operates one of the world’s largest travel networks, which caters to both consumer and corporate customers’ travel needs with $25.4 billion of travel spend globally in 2008 (through proprietary operations and consolidated joint ventures).”

Global Commercial Service provides expense management service to more than 100,000 companies across the globe. Some of American Express Business Travel clients internationally are Ford, Sun Microsystems, Unisys, Fluor, Commonwealth Bank and Tyco International. The company chooses from any of the market entry mode like exporting, licensing, joint venture and direct investment depending on the kind of product. Like for example all the charge and credit card products are sold through subsidiaries and affiliates. In some countries there are licenses granted to partially-owned affiliates and unaffiliated entities to offer some of the products and services.

The company focuses on partnering with qualified third-party banks and other financial institutions that choose to issue Cards accepted on global network. Cards are sold internationally under distribution agreements with banks. Example of distribution partnerships is affinity cards in Australia. Under Global Network Service international arrangements fall into the following three main categories: Independent Operator Arrangements, Network Card License Arrangements and Joint Venture Arrangements.

The company’s major international strategy is to encourage and invite all international banks to issue cards on the American Express network. This is done by leveraging on huge global infrastructure that the company has and the brand of American Express. These deals are customized according to market type and the requirements of the partners. The Global Network Service (GNS) arrangements with the international partners ensure that products are developed to encourage highest spending on the card by the consumers and also ensure acceptance of cards by the merchants. The structure and details of each GNS deals are different. In most of the deals the partners have to bear most of the operating costs and credit risk. Due to such strategy the company’s total cost of international business on partnering is lower than its own proprietary business. This business strategy requires lowest capital support thus making the company’s return on equity on GNS business higher than proprietary card issuing business. The company chooses its GNS partners who have same values as the company, can deliver highest level of services, and have strong market knowledge and experience. Also read: 

These partners form one of most important model for the company’s business. GNS partners benefit from the brand, attractive revenue, and scope to expand and differentiate their products offerings with innovative marketing programs. The company has 930 different card products deals with different international partners. Three types of GNS deals are Independent Operator Arrangements (IO), Network Card License Arrangements (NCL) and Joint Venture Arrangements (JV).

Under the IO arrangements, partners issue cards on local currency in their market as Classic, Green, Gold and Platinum American Express Cards. These partners are also merchant processor for the local merchants in their country. With multinational merchants relationship is maintained by American Express. The company generates revenue from card licensing fee, royalties, foreign exchange conversions, royalties on merchant charge and others. “Examples of countries where we have entered into IO arrangements include Brazil, Russia, China, Ecuador, Greece, South Korea, Pakistan, Croatia, Peru, Portugal and Vietnam.” (Form 10K, 2008)

Under NCL arrangement, third party financial institutions are allowed to issue American Express branded card. These deals ensure increase in brand presence and market share. The issuer owns the customer relationships, manages billing, services customers, bears credit risk, markets and designs the product.” Examples of NCL arrangements include our relationships with Citibank (South Dakota), N.A. and Bank of America in the United States, Lloyds TSB Bank in the United Kingdom and Westpac Banking Corporation in Australia. “(Form 10K, 2008) Under JV deals, a third party is asked to establish a separate business in which the company has significant ownership stake. The JV signs new merchants, issues local currency cards carrying American Express logo. The management of the JV is done by the company. Currently this arrangement is in Switzerland, Belgium and in other countries.

Global Merchant service strategy is to ensure maximum merchants are signed across the globe to enable acceptance of card wherever consumers reach. An IO and JV arrangement helps in acquiring such merchants. The company’s adds new merchants to through a number of sales channels: a proprietary sales force, third-party sales and service agents, strategic alliances with banks and processors, the Internet, telemarketing and inbound “Want to Honor” calls (i.e., merchants desiring to accept the Card contacting us directly).

To attract the merchants different strategies are used for example ‘American Express One point’ for small and medium merchants. The company focuses on acquiring merchants in retail and everyday spending categories that accept the Card, such as quick-serve restaurants, mass transit, healthcare and recurring billing merchants. American Express tries to sign up the merchants for acceptance of cards in industries where cash and credit are major payment modes for example are pharmaceuticals, whole sale foods, construction, industry supply. Fees from merchants form major part of the business.

The website www.americanexpress.com provides brief description of the human resource strategies applicable to employees in international subsidiaries of the company. “American Express is an equal opportunity employer.”(Website www.americanexpess.com). The company has a vast geographical presence and employees are from various cultures, strong educational background, and wide range of skills. Some of the key features of human resource management are as follows:

Selection

Candidates can apply for the positions either online, directly, through employee referral program or through recruitment agency. Each of the department or business unit head decides whether the candidate is eligible for the position.

Feedback Process

Employees are given feedback in number of ways. Firstly, the employees have to establish the business and personal development goals for the year with their supervisor. At the end of year, employees are provided feedback through Performance Management System called ‘annual review’. On successful evaluation employees are eligible for pay rise and bonus. Secondly employees participate in annual leadership feedback process. Leaders receive anonymous feedback from direct reports, colleagues and customers. Lastly all leader need to acknowledge and participate in development of their employee through on the job feedback, coaching, and information support.

Compensation

The Company has a total compensation program that includes cash pay, long-term incentives (if eligible), benefits, retirement security, and work/life support. At the time of joining compensation is based on experience and qualification of the job. After that the compensation is based on ‘annual review’. In each of the geographies, to keep the pay competitive, the company regularly evaluates the pay package of the competitors in similar jobs through confidential surveys.

The employees are rewarded through merit increase, lump sum salary award and other salary adjustments like promotional increase, Lateral Move Increase, Within-Band Growth in Current Position Increase, and Internal Equity Adjustment. The employees also have opportunities to avail discounts and promotions through travel store. Eligible employees can participate in Legal Assistance Plan, Adoption Assistance Program, Educational Assistance and the Employee Assistance Program.

Reward and Recognition

In addition to pay, employees are recognized through a variety of company and business unit recognition programs. The various awards are ‘The Chairman’s Award for Quality’, ‘The Great Performers Program’, Long-term incentive awards for Manager-level and above employees ,Incentives and Special Awards for Associates and Professionals, Annual Incentive Award (AIA) for Manager-level and Above Employees.

Promotion

The Company does not have any routine career paths. Regularly jobs are posted for open position called ‘job posting’ and eligible employees are encouraged to apply for opportunities in same or other business or locations. Open posting process encourages employees to work in different department and locations during their career.

Time Off and Parental Leave

Depending on job, each employee is entitled to take time off from work as holidays or vacations with pay. Employees are entitled to take paid leave following birth or adoption of child after completing one year of continuous service

Training

The Company promotes on the job learning. Employees are expected to deliver from day one. At the beginning of the year, employees together with their supervisor set out personal development goals. Some of the training programs that are regularly conducted are Leadership Training, Management 101, Diversity Training, Change Management, and other types of business and skills training available to employees as classroom activities or self-paced courses.

References

1. American Express Company, Form 10-K for fiscal year ended Dec 31, 2008, filed with U.S Security Exchange Commission
2. Website www.americanexpress.com

Abstract

Construction companies generally have a variety of objectives designed to maintain and succeed in their business. They will also do a lot of effort to maximize profits for their companies but with minimum capital. Some companies are concerned about how management including budget management because from there they can manage their company’s financial success and further profit. This paper will be discussed about the key factor for a construction company in Malaysia. The purpose of this discussion is to find out the key factors that should be considered in budget management by construction companies throughout Malaysia.

Keyword: Construction Company, key budget factor, Malaysia

Introduction

Budget is very comprehensive; it is a formal plan that estimates the likely revenues and expenses for a company in a particular period. Budget preparation explains the whole process and use the budget more effectively. Budget management is very important especially for construction companies to ensure that projects run smoothly implemented in line with the company’s capital. According to Chan and Chan (2004), the construction industry is dynamic in nature and its environment has become more dynamic due to increasing uncertainties in technology, budgets and development process.

Besides that, according to Churchill (1997) accentuates the fact that businesses must understand the pressure to grow so that they can plan and prepare for it, choose the right timing for expected major changes in size and control the speed of growth. 2. Key Budget Factor for a Construction company throughout Malaysia The budget is used in construction work to determine the amount of liquid cash that will be required over the various periods of a contract, as a measurement against which actual progress can be measured.

The budget is a financial forecast and important tool of management, in as much as trading position of a construction company can be establish by having budgets for all of the work on hand. According to FOA Corporate (1997), key budget factor also known as principal budget factor or limiting budget factor and is the factor which will limit the activities of an undertaking. This limits output such as sales, material or labour. Among the key factors for the company’s construction budget is as follows: i. Sales budget

This involves a realistic sales forecast. This is prepared in units of each product and also in sales value. Methods of sales forecasting include sales force opinions, market research, and statistical methods (correlation analysis and examination of trends) mathematical models. Sales budget includes company’s pricing policy, general economic and political conditions, changes in the population, competition, consumers’ income and tastes, advertising and other sales promotion techniques, after sales service, and credit terms offered. i. Production budget Expressed in quantitative terms only and is geared to the sales budget. The production manager’s duties include two things which are analysis of plant utilization and work-in-progress budgets. If requirements exceed capacity the production manager may subcontract, plan for overtime, introduce shift work, hire or buy additional machinery and the materials purchases budget’s both quantitative and financial. iii. Raw materials and purchasing budget

This factor includes the materials usage budget is in quantities and the materials purchases budget is both quantitative and financial. Factors influencing included production requirements, planning stock levels, storage space, and trends of material prices. iv. Labour budget: Labour budget is both quantitative and financial. This is influenced by production requirements, man-hours available, grades of labour required, wage rates (union agreements), and the need for incentives. v. Cash budget A cash plan is to defined period of time.

It cans summaries monthly receipts and payments. Besides that, it highlights monthly surpluses and deficits of actual cash. Its main uses are to maintain control over a firm’s cash requirements such as stock and debtors, to enable a firm to take precautionary measures and arrange in advance for investment and loan facilities whenever cash surpluses or deficits arises, to show the feasibility of management’s plans in cash terms, to illustrate the financial impact of changes in management policy, e. . change of credit terms offered to customers.

References

1. Agriculture and consumer Protection by FAO CORPORATE DOCUMENT REPOSITORY
2. Chan APC, Chan APL (2004). Key performance indicators for measuring construction success, Benchmark. Int. J. , 11(2): 203-221.
3. Churchill CF (1997). Managing Growth: The Organizational Architecture of Microfinance Institutions. ACCI on International. http://www. ebook-search-engine. com/organization-growth-ebook-all. html.

Today an organization has its foremost goal which is to make its business grow and survive. The ongoing current situations depict that nothing is sure to happen and future cannot be foreseen or predicted. Therefore it is needed to always think about different strategies and techniques that go a long way in improving and flourishing the business. There are a lot of opportunities and vendors to offer a number of services like Customer relationship management, Business Re engineering, or Total Quality Management. Some organizations select any of the diverse opportunities while others are scared if they have made correct decision or not.

If any organization does not apply any technique or select any opportunity to handle their business, the organization would hardly produce any profits (Chaudron, 2008). The experiences by organizations share that an organization got started with Total Quality Management which excited some of the employees and discouraged others, delay in follow through made things vague for employees. This indicates that organizations should always be in process of change. The actions by these organizations will help them to flourish and advance. There should be a design of framework which helps in organizational change.

They also should change by choosing any technique, strategy, plan (Chaudron, 2008). Porsche has been a brand with novelty and modernism, and is known as a legend for its innovation. They started off with the production of motors and engines in 1900, but the actual start was in 1931 and produced an automobile with brand name Porsche in 1948. Before that in 1931 Porsche, as a contract engineer in his design firm, designed the Volkswagen named as Beetles. The best thing about the Porsche’s name on the nameplate of an automobile was that this name was emerging to be the symbolic of firmness, appropriate production, and best ever feat.

Some of the features of Porsche’s automobile were a grip of driver to the controls, and wash-and-wear character lacked prissy attitude of the car. This idiosyncrasy in Porsche’s product lacked roughness. This was supposed to be the first sports car and since then Porsche topped the world for decades. The efforts and attitude behind the established and dynamic company were more than expected. It became the perfect definition of sports car for the companies to come (Vettraino, 2008).

Even in those days other car manufacturing companies were taking measures for their growth and survival by merging with other companies. Porsche made sure that it would maintain its integrity and independence as long as possible in future. Obviously there is never any surety in this business, it is always unpredictable. Just like that Porsche had claimed for this on very practical grounds, there was certain logic behind that. The logic was to keep the firm in the running state with the steps for present and future and the flexibility to accommodate any changes in plan (Porsche AG, 2008).

Hence the very famous business strategy in organizations failed in front of Porsche’s independent, small size volume-producer automobile manufacturer. The strategy was that the small organizations can only survive if they have an upper hand of any bigger corporate organization. Porsche disproved this claim in its early days (Porsche AG, 2008). Evolution of Porsche includes the success story of all the sports car it produced. Porsche sport automobiles gave evidences of maximum triumphs in the history of 24-hour Daytona series of races and 24-hour LeMans races.

In the early days of Porsche, Dr. Ferdinand Porsche got in touch with Adolf Hitler for discussions about the Volkswagen design, and a sports car design to take part in 1939 Auto-Union Grand Prix. The idea was to produce an automobile with expanded utilities as compared to Volkswagen. Applying different valves and cylinders to the same Volkswagen engine and included a new system of fuel injection, enlarged base in wheels, and with a body design in accordance with aerodynamic rules, which lead to the production of a specialized racing car (Porsche AG, 2008).

In 1948 the Porsche design firm changed its location in Karnten in Austria. There it first made its survival secure by not introducing its own range of vehicles, rather they used to repair and service diverse range of existing automobiles then they began to start working on their racing line of vehicles and other sports vehicles as well (Porsche AG, 2008). Son of Dr. Ferdinand Porsche, Ferry Porsche strategically found out the interest, necessity and willingness of people about an idea of buying an innovative and attractive sports car.

Ultimately he found sponsors to finance his production which lead to the production of lightweight sports cars. This promoted a design firm to an automobile factory having Gmund plants for monthly production. Until 1951, Porsche experienced its achievements to the top. They moved from small factory in Gmund to Stuttgart, where there was a spacious and furnished factory waiting for Porsche designers to work. They achieved milestone of producing the 1000th sports car making all that a reality which Dr. Ferdinand Porsche had envisioned. Dr. Porsche died (Porsche AG, 2008).

The year 1956 was the time when 10,000th production took place. This proceeded with the export orders of customers from abroad. This era was the one when the highest number of victories in racing took place by the Porsche cars. Porsche introduced its 356 models like 356A and 356B. The expansion of factory, its staff and workers occurred. This organizational change required having prediction and idea of future as well; therefore Porsche defended its integrity by maintaining the consistency and feat giving special attention to the quality control.

The symbolic of style and consistent quality Porsche cars were awarded with four quality control certificates for each of their produced car. These certificates commended on transmission, locomotives, vehicle assessment, and dimensions. Hence Porsche achieved its growth and survival both plus revenue of DM 108 million for a year (Porsche AG, 2008). The successful decade of 60s ended with the introduction of many new models and technical expansions. It had strategically started its joint venture with Piech families. Its revenues expanded to 900 millions.

The other steps it took are the research and development works initiated by the organization in order to grow. The boom continued in 70s and 80s as well which were marked by the growing export markets. Japan and USA imported a greater part of its production; hence making a big market. The profit went on to billions (Porsche AG, 2008). In the decade of 90’s market showed a breakdown. The biggest market of Porsche was made by USA and due to the collapse, the average of 30471 sale orders reduced to 4400 in 1991. This continued and company’s sales reduced to 23,060 units with USA making only 4133 sale orders.

The reasons suggested for this collapse might be loss of USA imports, or the growing process of Porsche cars, or the very firm market competitors like Mazda. This leads to the deterioration of business in the decade of 90s (Porsche AG, 2008). The mid of 90s brought with it some revivals and renewals for improvement in efficiency. Hiring of experts in engineering and manufacturing took place from Wendelin Wiedeking. They took steps like reduction of work hours, streamlining of operations and parts procurement with ‘just in time’, analyzed and worked on all the weaknesses that had been overlooked before.

The production of new models started as an updated version of 911; also the production of two-seater sports car took place named as Boxster. There recovery period of 1995 and 1996 were tough enough, did not make profits, and stopped producing frontline engines. In 1998, on the event of golden anniversary, it underwent another merger with Volkswagen to manufacture SUVs i. e. Suburban utility vehicles. This brought Porsche back in the US market and worldwide. Its sales went again to billions (Porsche AG, 2008).

Porsche is one of those organizations that have sustained themselves in the market somehow and tried to keep them in running. Porsche designed almost everything from engines, repair works, tractors, to survival gear. This management is sufficient to keep the position in the market and takeover of Volkswagen was to survive as an automaker belonging to Germany with autonomy. Wiedeking said very well at the press conference on the launch of Boxster “For most of the others, the sports car is a marketing strategy, for us, it is survival.

The customer knows the real one” (Vettraino, 2008). References Chaudron, D. (2008). Begin at the beginning in organizational change. Retrieved March 12, 2009, from Organized Change Consultancy: http://www. organizedchange. com/decide. htm Porsche AG. (2008). Retrieved March 12, 2009, from Funding Universe: http://www. fundinguniverse. com/company-histories/Porsche-AG-Company-History. html Vettraino, J. (2008, December 23). Porsche at 60: The little sports-car company that could. Retrieved March 12, 2009, from AutoWeek: http://www. autoweek. com/article/20081222/FREE/812229989