Question

A. Compare and contrast the tradition organization chart for an organization against the modern customer-oriented organization Chart   

B. Using a Japanese automobile TOYOTA, how the company create its value proposition explain your answer based on what you have learned in chapter five

C. Explain how does a company build customer value, satisfaction and loyalty give examples to support your

Answer 1

A.Organisation chart

Generally the meaning of organization is an entity comprising multiple people, such as an institution or an association that has a collective goal and is linked to an external environment.

Traditional organization represent the organizational structure in a business is hierarchical, meaning power flows vertically and upward, and employees are departmentalized. All employees follow a chain of command. Such as a manager is the chief coordinator of all department. Each department has a head who report to the manager. Like the military system-very hierarchical, organized, disciplined. Every department has its own rules and regulations as well as and every employee has own job description and accountability to his superior. There’s strictly follow their own business strategy that’s set in annual economic year. All the goal achievement plan are set before and difficult to change. Always traditional organization is fixed and rigid.

Modern Organization means a boundaryless organization which are networking together and collaborating more than ever before. They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. Modern style of management largely depends on soft skills – consensus building, relationships, listening, and understanding, taking the team along with you willingly than dragging them along with you.

The main points of disagreement:

Stability: People believe that traditional organizations are stable in their activities and progress. On the other hand modern one is more dynamic with its multiple business strategy. They need multiple progress and constant changes.

Flexibility: Modern Organizations are always flexible to change their workflow, focuses as well as connectivity. There the organization is need to update their competitive advantages and the employees are required to upgrade their knowledge and skills. Traditional Organizations are fixed, inflexible and planned.

Hierarchy: Modern Organizations flow “Flat Hierarchy” and Traditional flow “Tall Hierarchy”

Teamwork: Team work is the main concept of modern organization. The organization who build more effective team can gain more. On the other hand a traditional one follows a chain of command where every employee should be obeyed to his superior.

Employee Morale: As an employee of a modern organization get more freedom and flexibility to exchange his or her assessment. Consequently in this type of organization you find high employee morale. Traditional is a job oriented organization so you are not sure about the matter of employee morale.

Risk Management: Traditional organization maintain a specific policy to protect any kind of risk that would be hampered for the organization or its employees. So employees are more educated about the matter thus can take any step. Modern organization are slightly brave in this matter. Though they are always ready to take new challenges so everyone here prepared to face any risk instantly.

Diversification: Moreover the main contradiction between the modern and traditional organization is their business policies. Traditional organizations are slightly conservative and they try to follow traditional rules and regulation. They always flow a static business strategy and make a workflow model maintaining a traditional marketing policy and employee management system. A modern organization is doing modification, rescheduling, flexible entity management and dynamic business strategy.

Technology: Modern Organization is more technology based and boundaryless. So the number of employee or the office compartment doesn’t matter. But traditional organizations are centralized and backward to accept advanced technology.

B.Toyota's value proposition

It was important for Toyota when developing their value proposition that it was clear and concise. Toyota may have started by brainstorming and focusing on the needs their target demographic group had in common. They would have done some market research.

Toyota's value proposition to prospective buyers of its Prius was "A car that sometimes runs on gas power and sometimes on electric power, from a company that always runs on brain "power". Their ads after introduction went further by stressing tag lines such as "When it sees red, it charges"

The company's value proposition does all to differentiate the Prius and Toyota as "environmentally friendly", also appealing to those consumers who complain about gasoline prices. The value proposition does much to stress on the technology aspect of the car, reaching out to the "techies". Toyota has determined that the common denominating of an un-met need here, which is, that North Americans love their cars and readily accept change especially if it is based on material comfort and their physical well-being. The company has therefore based that value proposition around that need. Toyota's value proposition creates a strong differential between the company and its competitors.

C.Creating customer value,satisfaction and loyalty

What is Customer Perceived Value? Customer perceived value is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. • Total customer benefit is the perceived value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering because of the product, service, people, and image. • Total customer cost is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using and disposing of the given market offering, including monetary, time, energy, and psychological costs.

Customer Satisfaction Satisfaction is a person’s feelings of pleasure or disappointment that result from comparing a product’s perceived performance(or outcome) to expectations . If the performance falls short of expectations, the customer is dissatisfied. If it matches expectations ,the customer is satisfied. If it exceeds expectations, the customer is highly satisfied or delighted.

What is Loyalty? Loyalty is a deeply held commitment to re-buy or re- patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

Four important types of marketing activities that build customer loyalty and retention: 1. Interacting with customers 2. Developing loyalty programs 3. Personalizing marketing 4. Creating institutional ties