Executive summary
The paper relates to Windex Supermarket a firm located in Sydney, Australia and deals with a variety of consumer products. The objective of the paper is to analyze the how the firm can attain a high competitive advantage in the operation of the firm. To achieve this, there is need for the management to implement change in the organization. A market research is conducted with specific reference to the consumers and the competitors. The findings of the research reveal an increment in consumer’s disposable income resulting from Australia’s economic growth over the past few decades. On the other hand, there is an increment in the intensity of competition in the market due to an increase in the number of domestic and foreign investors venturing the industry. This has resulted into an increment in the degree of rivalry within the industry. These environmental changes have stimulated management’s of various firms to formulate strategies aimed at attaining a higher competitive advantage in the market. One of the strategies that the management of Windex Supermarket should consider is implementing a Customer Relationship Management (CRM) in the organization. The organization does not have an effective customer relationship management in its operation. Through CRM, the firm will be able to attract new customers and retain the existing customer. This will enable the firm to attain a high competitive advantage.
Various ways in which this can be attained has been considered. These include integration of information technology specifically the CRM software. The importance of creating awareness to various stakeholders in implementing the CRM is analyzed. Ensuring awareness in the process of implementing the change will reduce the probability of resistance amongst the stakeholders. The paper also analyzes the various strategies that should be used in ensuring effective awareness.
The stakeholders considered are categorized as internal and external parties. The internal parties include employees and the shareholders. On the other hand, the external parties considered include the customers. Implementing CRM in the company will enable the firm to serve the customers satisfactorily. This is due to the fact that CRM will integrate the concept of customer focus. This means that employees of the firm in various departments will focus at the consumer in their activities. Through customer focus, the firm will be able to attain a competitive advantage. This is due to the fact that the firm will be able to develop a high level of customer satisfaction and hence customer loyalty. Communicating to the employees will ensure that they understand how the CRM software works and hence utilize it to the maximum. This will ensure the entire departments are able to interpret the consumers’ requirement s. Creating awareness to the employees should be conducted during the formulation of the change. The objective is to reduce employee resistance during the implementation phase.
Communication to the shareholders is also analyzed. Considering the fact that management team acts as shareholders agents, their decision should result into maximization of shareholder’s wealth. The management should ensure that the shareholders understand how the CRM will result into an increment in the value of the firm. For instance the management can explain to the shareholders on how CRM will enable the management team to effectively forecast the possible changes in consumption behavior. Forecasting will enable the management to be proactive in decision making. This is due to the fact that the management will be able to effectively incorporate the consumers’ demands in its products and services. This will culminate into maximization of the shareholders wealth since the firm will be able to enhance its profitability level. An improvement in the firm’s level of profit will culminate into an increase value received by the shareholders of the firm. This is due to the fact that the firm will be able to issue higher dividends to the shareholders. In addition, increment in the firm’s value will enable the firm to attain its goal as a going concern entity. The management should ensure that communication to the shareholders is conducted during the strategy formulation phase. This will ensure that they approve and support the management decision.
Importance of creating awareness to the customers is also analyzed. Communicating to the customers will ensure that the consumers understand how to use the CRM software. The CRM software will be available to the consumers through the internet. This will enable the CRM software to be effective as an interactive and informative communication tool between the management and the customers. Creating awareness to the customers will enable them to utilize the CRM software.
The paper also includes an action plan that should be used by the management. The plan entails the various tasks to be undertaken, time duration involved, communication strategy and the party to undertake the task. The change will be communicated to employees of various departments through internal memo and the intranet. The management will ensure that employee training is cost effective by conducting it through the intranet. The training will take two months. Professional firms will be outsourced to train the employees. Prospectus will be used in communicating to the shareholders. Considering that all the shareholders receive the prospectus, one month is set since they are dispersed. The prospectus will be developed by the executive management to increase the credibility of the information. The action plan also entails communicating to the customers through public relation and various mediums such as online, television, radio and print media. The communication will be continuous and will be undertaken by the firm’s marketing department.
The various costs to be incurred in the process of creating awareness and implementing the change are also stipulated. The cost items considered include cost of communicating to the various parties, training cost, cost of purchasing and implementing the CRM software.
The paper also considers a team which will act as a guiding coalition thus ensuring that the change is effectively implemented. The coalition will consist of employees from marketing and information technology department. Team members from the marketing department will ensure that all the relevant marketing variables are considered in implementing the change. This is due to the fact that they have superior market and consumer knowledge and will be able to evaluate the software based on market feedback. This will culminate into an increment in the software’s efficiency of operation. Members from information communication department will ensure that all the technicalities of the software are considered. These members will also ensure that the CRM software operates efficiently through effective maintenance and incorporation of the market changes into the software.