High Performance Work System

High Performance Work System Exploring the Performance Impact of High Performance Work Systems in Professional Service Firms: A practices-Resources-Uses Approach ABSTRACT. In the present study, we develop a practices-resources-uses approach to systematically explain the indirect effect of high performance work systems (HPWS) on firm performance in professional service context. We argue that HPWS result in the creation of human capital, social capital and organizational capital resources. These resources in turn create value for firms when they are effectively explored and exploited. Our analysis of the indirect impact of HPWS on firm performance contributes to the understanding of how and why HPWS affect firm performance by identifying valuable resources and finding out the way to effectively use them in professional service firms (PSFs). We also provide theoretical support for the arguments of the resource-based view of firm (Barney, 1991), the knowledge-based theory of firm (Grant, 1996a, 1996b) and the dynamic capabilities (Teece, Pisano Shuen, 1997) perspectives. Key words: High Performance Work System; Professional Service Firms; Resource-Based View of Firm INTRODUCTION Researchers on strategic human resource management (SHRM) argue for a focus on the bundle of HR practices rather than individual practices, as a primary unit of analysis when examining the impact of HR systems on individual and organizational performance (Huselid, 1995; MacDuffie, 1995). For example, high performance work systems (HPWS) (Datta, Guthrie, Wright, 2005) have been found to positively relate to firms outcomes especially in manufacturing firms, such as financial performance (Guthrie, 2001; Huselid, 1995), employee turnover (Richard Johnson, 2001), firm productivity (Guthrie, 2001), efficiency and flexibility (Evans Davis, 2005), and organizational commitment (Youndt, Snell, Dean Jr, Lepak, 1996). However, the relationship between HPWS and firm performance is indirect and many scholars call for deeper and more theoretical approaches to understand how and why high performance work systems (HPWS) affect firm performance (Bowen Ostroff, 2004; Combs, Liu, Hall, Ketchen, 2006; Delery Shaw, 2001), especially in service organizations (Combs et al., 2006). Based on the existing research, we argue that HPWS results in the creation of human capital (Wright, Dunford, Snell, 2001), social capital (Leana Van Buren III, 1999) and organizational capital resources (Koch McGrath, 1996). Only when these resources are effectively managed and utilized, firms can generate superior profit above that which returns to competitors in perfectly competitive environment (Schultz, 1961), achieve sustainable competitive advantage and create value (Barney Arikan, 2001; Sirmon, Hitt, Ireland, 2007). The causal chain between resource endowment and firm performance is unclear and is in need of theoreti cal explication and empirical investigation (Leana Van Buren III, 1999). Thus, we pursue two research questions: (1) How do HPWS affect firm performance in the professional services context? (2) What are valuable resources and how are they utilized by firms? Guided by the contingency theory, the resource-based view of the firm (RBV) (Barney, 1991), the knowledge-based theory (Anand, Gardner, Morris, 2007; Grant, 1996a, 1996b; Teece, 2003; Winch Schneider, 1993) and dynamic capabilities theory (Teece et al., 1997; Eisenhardt Martin, 2000), we propose a ‘practices-resources-uses performance approach to add insight to our understanding of the value creation-exploitation process in the professional service firm (PSF). The paper is structured as follows. First, we briefly introduce the literature on PSFs and explain why we chose these organisations to conduct our research. We then propose a model that highlights how HPWS affect firm performance. We argue that HPWS affect firm performance through two steps. First, HPWS create firm resources, i.e., human capital, social capital, and organizational capital. And then these resources are exploited to improve firm performance in the short run or are explored to improve firm performance in the longer run. Within the HPWS and firm performance relationship research, our model draws on the â€Å"practices-resources-uses† perspective, and provides important theoretical foundations for understanding how and why HR practices affect firm performance. We then discuss the further implications of the study for practitioners and explore the potential areas for future research. CONTEXT Professional Service Firms (PSFs) are those whose primary assets are a highly educated (professional) workforce and whose outputs are intangible services encoded with complex knowledge (Greenwood, Li, Prakash, Deephouse, 2005). Examples of professional services include accounting, engineering consulting, management consulting and legal services (De Brentani Ragot, 1996). PSFs are knowledge-intensive (Morris, 2001; von Nordenflycht, 2007, 2010) with knowledge encoded in services as outputs (Empson, 2007; Morris Empson, 1998; von Nordenflycht, 2007, 2010). PSFs are different from traditional firms. They primarily exploit intangible assets to produce customized solution for clients (Greenwood et al., 2005; Hitt, Shimizu, Uhlenbruck, Bierman, 2006; Là ¸wendahl, 2005; von Nordenflycht, 2007, 2010). Their human resources constitute the critical asset of the PSFs because they embody expertise and create firm-specific knowledge which can be translated into client solutions. Indeed clien ts may often follow professionals if they change firms (Groysberg Lee, 2009). Because PSFs differ from other firms, to apply theories from other forms of organizations is â€Å"not only inapplicable †¦ but may be dangerously wrong† (Maister, 1993: xvi). Our analysis will represent a good site to examine SHRM because human resources constitute the critical asset and therefore a strong test of the practices-uses-resources model which is what we need to justify. THERETICAL BACKGROUND AND PROPOSITONS Strategic Human Resource Management (SHRM) Strategic human resource management (SHRM) is defined as â€Å"the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals† (Wright, McMahan, McWilliams, 1994: 298). Because firm performance stands out as a major organizational goal, many studies have been conducted that examine the linkage between human resources management practices and firm performance (Arthur, 1994; Becker Gerhart, 1996; Datta et al., 2005; Delery Doty, 1996; Guthrie, Flood, Liu, MacCurtain, 2009; Huselid, 1995; MacDuffie, 1995; Richard Johnson, 2001; Terpstra Rozell, 1993; Youndt et al., 1996). The researchers in this field argue that the bundle of HR practices rather than individual practices should be focused as a primary unit of analysis when examining the impact of HR systems on individual and organizational performance (Huselid, 1995; MacDuffie, 1995). Following the above argument, researchers have been encouraged to take a system perspective in examining the performance impact of HRM on relevant organizational outcomes (Wright Boswell, 2002). For example, the study by Youndt et al. (1996) demonstrated that human capital-enhancing HR system was directly related to multiple dimensions of operational performance, i.e., employee productivity, machine efficiency, and customer alignment; the results of Collins and Clark (2003) indicates that the network-building HR practices positively related to the organizational performance, i.e., growth in sales and stock return; the research by Huselid (1995) illustrates a positive relationship between high performance work practices and organizational turnover, productivity and financial performance; the research on high performance work systems (HPWS) conducted by Datta et al. (2005), Guthrie et al. (2009) and Combs et al. (2006) finds that HPWS positively affected firms labour productivity, employee absenteeism and turnover. HPWS include HR practices that are designed to enhance employees skills, commitment, and productivity (Datta et al., 2005). Most previous literature on the relationship between HRM practices and firm performance has looked at the direct relationship. However, many scholars agree that there are probably mediating variables through which HRM practices affect firm performance. As Wright and Gardner (2000:4) write, â€Å"One of the first issues that must be settled in the effort to understand how HR practices impact performance is to theorize the means through which this relationship occurs, in essence specifying the intervening variables between the measure of HR practices and the measure of firm performance.† In the existing research, some scholars found human capital as one of mediators between SHRM and firm performance. Human capital refers to the stock of skills and knowledge embodied in individuals (Becker, 1964; OSullivan Sheffrin, 1998). Guest (1997) argues that SHRM improve employees quality, i.e., skills and abilities. Snell and Dean (1992) also argue that HRM should ideally work to enhance the firms competitive position by creating superior human capital skills, experience and knowledge that contribute to firm economic value. Wright et al. (2001) assert that HPWS might have resulted in the creation of a high quality human capital pool that cannot be easily imitated because of time compression diseconomies (e.g., Mercks RD capability). Becker and Huselid (1996) state that human resource activities are thought to lead to the development of a skilled workforce and one that engages in functional behavior for the firm, thus forming a source of competitive advantage. This results in h igher operating performance, which translates into increased profitability, and consequently results in higher stock prices (or market values). There are also some scholars found that many human resource management practices have a significant role to play in creating social capital. Social capital is a resource which is embedded in the relationship among individuals (Loury, 1977; Coleman, 1988, 1990; Bourdieu; 1985; Burt, 1992; Putnam, 1993; Nahapiet Ghoshal, 1998; Lin, 2001). For example, Wright et al. (2001) argue that HPWS may promote and maintain socially complex relationships characterized by trust, knowledge sharing, and teamwork (e.g., Southwest Airlines unique culture). Youndt, Subramaniam and Snell (2004) state that thoughtful selection of people who ‘fit with the organizations culture, or intensive training programmes that not only socialize incoming employees but also indoctrinate common values among existing employees, may have a strong impact on the social capital of organizations. Leana and van Buren III (1999) introduce the construct of organizational social capital and develop a model that describes i ts components and consequences. They suggest that employment practices strongly affect the level of organizational social capital within a firm. They also describe the potential benefits and costs of organizational social capital for the firm and noted the contingent nature of organizational social capitals relationship with performance. In other words, organizational social capital mediates the HR practices and organizational performance relationship. Evans and Davis (2005) provide a theoretical framework illustrating how the internal social structure of the organization can mediate the relationship between HPWS and organizational performance. The third mediator between SHRM and firm performance is found as organizational capital. Subramaniam and Youndt (2005) and Youndt et al. (2004) define organizational capital as the institutionalized knowledge and codified experience residing within and utilized through databases, patents, manuals, structures, systems, and processes. Wright et al. (2001) argue that HPWS might play a role in creating cultures or mindsets that enable the maintenance of unique competencies. They mention that HR is not limited to its direct effects on employee skills and behavior. HRs effects are more encompassing in that they help weave those skills and behaviors within the broader fabric of organizational processes, systems and, ultimately, competencies. Other strategists who embrace the RBV point out that competitive advantage (vis core competence) comes from aligning skills, motives, and so forth with organizational systems, structures, and processes that achieve capabilities at the organizational lev el (Hamel Prahalad, 1994; Peteraf, 1993; Teece et al., 1997). Koch and McGrath (1996) take a similar logic in their study of the relationship between HR planning, recruitment, and staffing practices and labor productivity. They argue that â€Å"†¦ a highly productive workforce is likely to have attributes that make it a particularly valuable strategic asset,† (p. 335). They suggest firms that develop effective routines for acquiring human assets develop a stock of talent that cannot be easily imitated. The human capital, social capital and organizational capital are defined as three components of intellectual capital. One systematic research conducted by Youndt et al. (2004) find that a relatively small group of superior performing organizations exhibit high levels of human, social, and organizational capital. Most firms, however, tend to focus primarily on only one form of intellectual capital, and a small group of underperforming organizations have very low levels of all three types of intellectual capital. Another research by Subramaniam and Youndt (2005) suggest that an organizations efforts at hiring, training, work design, and other human resource management activities may need to focus not only on shoring up their employees functional or specific technological skills/expertise, but also on developing their abilities to network, collaborate, and share information and knowledge. To summarize, although the relationship between SHRM and firm performance has been found positive, it is indirect. Efficient SHRM could improve employees knowledge, skills, strength the relationships between employees, and also create superior databases, processes and then help firms achieve higher performance. In the following section, we analyse how HPWS create firm resources in PSFs. HPWS and Firm Resources There is a positive relationship between HPWS and firm performance. But how HPWS affect firm performance remains to be understood. The resource-based view of firm (RBV) argues that a firms competitive advantages lie primarily on the application of valuable resources, skills and capabilities that the firm already control (Barney, 1991; Penrose, 1959; Wernerfelt, 1984). The knowledge based theory of firm (Grant, 1996a, 1996b) considers knowledge as the most strategically significant resource of the firm. This knowledge is embedded and carried through multiple entities including individuals, relationships and organizational culture, identity, routines, documents, systems. Guided by the resource-based view of firm (Barney, 1991) and the knowledge-based theory of firm (Grant, 1996a, 1996b), we argue that HPWS affect firm performance by creating valuable, rare, imperfectly imitable, and non-substitutable resources (Barney, 1991), i.e., human capital, social capital, and organizational capital. And these resources can also be understood as the places where knowledge is embedded. Human capital. In PSFs, the human capital is defined as the knowledge and skills of their professionals that can be used to produce high quality professional services (Hitt, Bierman, Shimizu, Kochhar, 2001; Hitt et al., 2006; Pennings, Lee, Van Witteloostuijn, 1998). Human capital plays a strong role as the PSFs key resource in solving client problems (Morris Snell, 2008). Professionals possessing large amounts of experience, education, and training should be able to effectively create ideas on their own in response to the complexities of unique client needs. Their localized experience helps them to understand the needs of local clients and markets, which allows them to develop solutions that are unique to each contextual environment and hence heterogeneous across the firm. Professionals who draw the most upon human capital tend to rely on the experimentation, inspiration, and experience of individuals to solve a problem (Morris Snell, 2008). To build high human capital, PSFs nee d to identify, attract and retain superior professionals, which can be achieved through HR practices such as selection, recruitment and training. HRM should ideally work to enhance the firms competitive position by creating superior human capital skills, experience and knowledge that contribute to firm economic value (Guest, 1997). Thus we propose that HPWS result in the creation of a high quality human capital pool that cannot be easily imitated because of time compression diseconomies, e.g., Mercks RD capability (Wright et al., 2001). For example, the professionals in PSFs gain explicit knowledge through their formal education and tacit knowledge through learning on the job. HR practices are thought to lead to the development of a skilled workforce and one that results in functional behavior for the firm, thus potentially forming a source of competitive advantage (Becker Huselid, 1998). These arguments lead to the following proposition. Proposition 1a: The PSFs human capital mediates the relationship between HPWS and firm performance. Although human capital has many positive benefits, it represents costs to firms as well. For example, PSFs usually try to recruit the best graduates from top institutions. To attract them, firms need to provide compensation which is more than their marginal productivity early in their careers (Hitt et al., 2001). Furthermore, professionals new skills must be developed since they gain tacit knowledge through learning on the job (Bierman Gely, 1994). Although they are learning new skills, they may be less effective at the beginning. The cost for them may exceed their capital (Hitt et al., 2001). These arguments lead to the following proposition. Proposition 1b: There is a curvilinear relationship between the PSFs human capital and firm performance. The relationship is negative early in the professionals tenure but becomes positive. Social capital. Social capital is a resource which is embedded in the relationships among individuals (Loury, 1977; Coleman, 1988; Bourdieu; 1985; Burt, 1992; Putnam, 1993; Nahapiet Ghoshal, 1998; Lin, 2001). It is different from human capital. Social capital is embedded within, available through, and derived from the network of relationships possessed by an individual or social unit (Nahapiet Ghoshal, 1998) while human capital is embedded in individuals head (Becker, 1964; OSullivan Sheffrin, 2003). Social capital plays an important role in PSFs. The firms ability to attract and retain clients depends not only on its competence to provide high quality services produced by the professionals human capital but also on their connections to potential clients (Maister, 1993; Smigel, 1969). Pennings et al. (1998) analysed firm-level and individual-level social capital in PSFs. The firm-level social capital can help PSFs attract potential clients because the potential clients will choose a firm as a service provider on the basis of previous interpersonal relationship with the firms professionals when other things are equal. Within PSFs, the fact is that a set of clients are handled or looked after by an individual professional who is the key person. Their results show that social capital of owners (partners) contributed more to firm survival than those of employees (associates). Pennings et al. (1998)s study produced major evidence for the contention that a firms human and social capital have important implications for performance. The service delivered by PSFs suffers from an â€Å"opaque quality† because of PSFs knowledge intensity (von Nordenflycht, 2010). This refers to situations where the quality of an experts output is hard for non-experts (i.e., customers) to evaluate, even after the output is produced and delivered (Broschak, 2004; Empson, 2001; Levin Tadelis, 2005; Là ¸wendahl, 2000; cited in von Nordenflycht, 2010). In this situation, personal relationships and ambiguity reduction through personal contact take on extra significance. As clients and customers often have problems estimating the value of the product/service offered, establishing close social links between the PSFs and the customer/ client becomes vital (Alvesson, 2001). Other things equal, the potential clients will choose a firm as a service provider on the basis of previous interpersonal relationship with the firms professionals (Pennings et al., 1998). In addition, PSFs typically make investments in relationships with clients and make efforts to generate social attachment (Fichman Levinthal, 1991). Some research also demonstrates that social capital mediates the HR practices and firm performance relationship. For example, Youndt et al. (2004) state that thoughtful selection of people who ‘fit with the organizations culture, or intensive training programmes that not only socialize incoming employees but also indoctrinate common values among existing employees, may have a strong impact on the social capital of organizations. Collins and Smith (2006)s found that commitment-based HR practices were indirectly related to firm financial performance through their effects on organizational social climate and knowledge exchange and combination; Thus, HPWS improve the internal social structure within organizations, that facilitates communication and cooperation among employees (Evans Davis, 2005) which in turn has been found to be linked to organizational performance. These arguments lead to the following proposition. Proposition 1c: The PSFs social capital mediates the relationship between HPWS and firm performance. Organizational capital. Organizational capital is defined as the institutionalized knowledge and codified experience residing within an organization and utilized through databases, patents, manuals, structures, systems, and processes (Youndt et al., 2004; Subramaniam Youndt 2005). The organizational routines and processes which embody organizational knowledge are a source of organizational competitive advantage (Teece, 2000) In PSFs, organizational process of the typical professional service firm (PSF) is highly institutionalized because of the knowledge-based nature of the work and ultimately, in the historical evolution of relatively autonomous professions (Freidson, 1986; Greenwood, Hinings, Brown, 1990; cited in Morris, Gardner, Anand, 2007). The organizational routine of PSF is informal work understandings and practices built up by colleagues as they collaborate over time, like an accumulated short hand of work (Morris, 2000: 822). Morris and Snell (2008) emphasize the importance of organizational capital for PSFs. They state that organizations tend to draw on organizational capital for many aspects of learning, including knowledge creation, sharing, and integration, but this resource may provide more value for specific types of learning. Based on the basis of previous literature and their own experience with PSFs, organizational capital is most likely to create more value when individuals in the organization are trying to integrate knowledge. In terms of integration, then, organizational capital helps to create value through the implementation and reuse of knowledge across affiliates, which allows professionals to deliver solutions more efficiently to clients. Besides facilitating knowledge integration, organizational capital also shapes professionals image and identity (Empson, 2001) which plays an important role in attracting new clients. Many scholars have found that SHRM improve organizational capital. For example, Wright et al. (2001) argued that HPWS might play a role in creating cultures or mindsets that enable the maintenance of unique competencies (e.g., the safety record of DuPont). The HR is not limited to its direct effects on employee skills and behavior. HRs effects are more encompassing in that they help weave those skills and behaviors within the broader fabric of organizational processes, systems and, ultimately, competencies. Other strategists who embrace the RBV point out that competitive advantage (vis core competence) comes from aligning skills, motives, and so forth with organizational systems, structures, and processes that achieve capabilities at the organizational level (Hamel Prahalad, 1994; Peteraf, 1993; Teece et al., 1997). Koch and McGrath (1996) took a similar logic in their study of the relationship between HR planning, recruitment, and staffing practices and labor productivity. They arg ued that â€Å"†¦ a highly productive workforce is likely to have attributes that make it a particularly valuable strategic asset,† (p. 335). They suggested that firms which developed effective routines for acquiring human assets develop a stock of talent that cannot be easily imitated. They also found that these HR practices were related to labor productivity in a sample of business units, and that this relationship was stronger in capital intensive organizations. These arguments lead to the following proposition. Proposition 1d: The PSFs organizational capital mediates the relationship between HPWS and firm performance. The Uses of Firm Resources The resource-based view of firm (RBV) and knowledge-based theory of firm contribute to identifying the existing resources that have the potential to constitute a source of sustainable competitive advantage (Hitt et al., 2006). However, merely possessing such resources does not guarantee the development of competitive advantages or the creation of value (Barney Arikan, 2001; Priem Butler, 2001; cited in Sirmon et al., 2007). These valuable resources must be effectively managed and utilized to achieve superior profit (Schultz, 1961) and a competitive advantage (Barney Arikan, 2001; Sirmon et al., 2007). The emphasis on the use of resources is consistent with the dynamic capabilities perspective (Teece et al., 1997) which includes considerations such as how resources are developed, how they are integrated within the firm and how they are released. Using these resources is the same as using the knowledge which is embedded in the individuals, the relationships and the organizational processes, routines, databases, and systems. There are two streams or approaches of research on using these knowledge or resources (Hargadon Fanelli, 2002). One focuses on how to reuse or replicate existing knowledge, i.e., exploitation (Levitt March, 1988). The other one focuses on how to generate new knowledge, i.e., exploration (March, 1991; Kogut Zander, 1992). The effective use of resources may help a PSF balance the effective exploitation of existing resources with exploration of knowledge to create new capabilities. The following matrix shows how PSFs create value by exploiting and exploring existing resources. The matrix shows that the exploration of resources in PSFs is to deliver new products or service to new clients and to deliver new products or service to old clients. It also shows that the exploitation of resources in PSFs is to deliver existing services or products to the existing clients or new clients as there is no new knowledge/capability required. The exploration process needs to explore the human capital to invent new products or services and the social capital to attract new clients and new business and the organic organizational capital (Kang Snell, 2009) that facilitate this delivery. The exploitation process needs to reuse or refine the existing products or services and existing clients, which requires the standardized organizational capital (Kang Snell, 2009) to facilitate this delivery. To illustrate exploration and exploitation more detail, four capabilities of PSFs are identified to effectively exploit existing resources with exploration of knowledge to create new capabilities. They are managing teams, leveraging knowledge, combining and exchanging knowledge, and sensing the changes in the external environment capabilities. Managing teams. In professional service firms, most of work is project or program-oriented, serving the needs of the external customers. It requires several professionals work together, and frequently involves client contact, often through co-location at a clients place of business. Then team forms the basic unit of work in the professional service firm. Generally, a team consists of partners and associates. The dynamic global economic environment accelerates PSFs work speed. Usually the customers assignments are much more compressed in term of time (Morris, Gardner, Anand, 2007). Therefore, to successful serving clients, the team management is vital. Teece (2003) provides a lot emphasis on the coordinating tasks, managing conflict, communicating and cooperating within the team in team management. As with the traditional firm, coordination must be achieved, and conflict must be managed. In the professional services context, raw conflict can lead to mass defections and the destruction of enterprise value, even more assuredly than in an industrial company setting. So conflict management is likely to be especially significant with an expert services context because experts are likely to not only have strong preferences, but are also likely to be self-confident, possibly egotistical, and possibly lacking in good business sense while already having some degree of established financial success (Teece, 2003: 897). The most critical communication in a professional service context is frequently peer-to-peer. Partners (senior talent) frequently need to access other senior talent in order to meet client needs (Teece, 2003: 903). Leveraging knowledge. Leveraging knowledge, that is the transfer of know-how from seniors to juniors in client assignments, sustains the basic division of labor in the professional firm and also underpins its profitability (Hitt et al., 2001; Malos Campion, 2000). All professional firms compete by leveraging knowledge and partners reputation (Greenwood et al., 2005). In PSFs, partners own the most human capital and social capital in a firm. To meet clients demands, partners need to select other professionals to form a team to possess the appropriate skills, experience and training. In this way, the partners knowledge and capabilities are leveraged. Meanwhile, the junior professionals, or associates also acquire intangible knowledge during the long apprenticeship they serve with their senior colleagues before being assessed for a partnership position. Leverage ratios are measured by total number of associates divided by the total number of partners (Hitt, et al., 2001; Phillips, 2001). High leverage ratios are commensurate with highly codified knowledge packages and standardized tools and methodologies which can routinely be applied by junior associates. Lower leverage is associated with experience or expertise models in which knowledge is less routinized and the firm seeks more complex projects in which there is a premium on the experience or special expertise of more senior staff (Maister 1993; Hansen, Nohria, Tierney, 1999). Effective leveraging creates dynamic capabilities whereby the firm is able to renew, augment, and adapt its current capabilities to serve continuously changing and new client needs (Teece et al.. 1997; Tripsas, 1997; cited in Hitt et al., 2001). Hitt et al. (2001) also find the empirical support for the positive relationship between leveraging and firm performance in professional service context. Combining and exchanging knowledge capability

Segmentation of Mercedes

Table of Contents 1. 0 Situation Analysis/Current Marketing Mix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 1. 1 Current Product†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 1. 2 Current Pricing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 1. 3 Current Distribution†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 1. 4 Current Promotion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 5 2. 0 Segmentation Theory†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 2. 1 Defining and Explaining Segmentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 2. 2 Explaining Three Benefits of Mercedes-Benz Brand from using Segmentation †¦Ã¢â‚¬ ¦7 3. Target Market Identification†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 3. 1 Geographic Segmentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 3. 2 Demographic Segmentation†¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 3. 3 Psychographic Segmentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 3. 4 Behavioral Segmentation†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 4. 0 Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20 Surname 3 1. 0 Situation Analysis/Current Marketing Mix 1. 1 Current Product Being a highly reputable brand globally, Mercedes-Benz has successfully penetrated in Singapore market.Presently, Mercedes-Benz C class has swiftly penetrated in the Singaporean luxury car market due to the prestige associated with the brand. Being a consumer product, Mercedes Class C has been characterized by high performance that accurately meets personal needs for active individuals through the superior brand name. Over the years, Mercedes Benz brand name has won global recognition, contributing to its popularity in Singaporean market. The various sub-models of Mercedes Benz Class C including C230, C240, C320 and C350 among others offer consumers with various luxurious services, besides mere travelling.It is important to note that, the ability of a core product to offer credible and other beneficial characteristics besides the core product utility enhances its propensity to acquire popularity among consumers1. In this regard, Mercedes Class C has been considered as of high quality level, having sophisticated features to enhance driving experiences, stylish in nature and having strong brand name. In Singapore luxury car market, it has been rep orted that 70% of customers enquiring about car are much interested in Mercedes Benz Class C. This is an indication that, much of their time is spent looking on the stylish nature of the product2.It has been observed that, most of these consumers looking for Mercedes Benz Class C don’t easily opt for other brands until they get it some other times when it is available. This is evidenced by the selling slogan of the product â€Å"Drive and Seek,† which aims at assuring the consumers ultimate performance of the product. More so, the prestigious nature of Mercedes Class C can be considered as a unique feature that has contributed to its popularity in Singapore. It has been observed that, Mercedes Benz Class C is multi-purpose, since it is still used in sports as well as for private outdoor traveling.It is vital to note that, the ability of a product to offer consumers with additional benefits besides the basic uses contributes to its popularity among consumers. By having more additional benefits than its 1 Richard, Semenik and Gary, Bamossy, Principles of Marketing: A Global Perspective (New York: Prentice Hall, 2005), 68. 2 Beng, Chua. Life is not Complete without Shopping: Consumption Culture in Singapore, (Singapore: Singapore University Press, 2003), 72. Surname 4 core competitors like BMW, Mercedes Benz Class C has penetrated well in Singaporean markets. 1. 2 Current PricingThe luxury car market in Singapore is an oligopoly competitive market, since there are few luxury car brands in the market. Being a superior brand in the market, Mercedes-Benz C-Class has efficiently penetrated in the Singapore market. This has been observed in the way this brand highly demanded, despite its high prices. Particularly, Mercedes Benz Class C pricing strategy is valuebased, considering the way consumers of this product have not been sensitive to the high prices for this product. It has also been observed that, increase in prices for Mercedes Benz Class C does n ot affect consumer demand.This is evidenced when prices for Mercedes Benz Class C 350 increased from ? 32580 in the year 2006 to ? 33130 in the year 2007, the total demand for the product remained undisturbed, constituting of about 30% of luxury demand in Singapore3. This shows how the superiority of the brand is not affected by price changes, since consumers have are highly loyal to the brand, despite competitors using various tactics to market their products. Customer loyalty for Mercedes Benz Class C is demonstrated in the way consumers in Singapore maintain the demand for the brand, despite its competitors lowering their prices.For instance, BMW is one of the core rivals of Mercedes Benz, whose tendency of reducing prices has not affected the demand for Mercedes Benz Class C. Particularly, the year 2007 saw BMW lower the prices of its luxury car models in Singapore in order to win more customers, a strategy which did not affect the demand for Mercedes Benz Class C4. This is an i ndication that, consumers tend to perceive the value of Mercedes Benz as being far much higher than the money they pay for.As a result, high level of customer loyalty has been prevalent for Mercedes Benz Class C in Singapore as a result of the outstanding features and prestigious nature of the luxury car brand. Considering that Mercedes Benz Class C is sophistically manufactured using highly costly resources, the strategy adopted by the brand in pricing the product is effective. Though Mercedes-Benz C-Class is an expensive car, its value among the consumers has made it acquire loyalty among the customers. 1. 3 Current Distribution 3 Leslie, Butterfield, Enduring Passion: Story of the Mercedes Benz Brand, (New York: Wiley Publishers, 2005), 36. Dennis, Adler, Mercedes Benz: First Gear, (London: Motorbooks, 2008), 46. Surname 5 Mercedes C-Class has been distributed using a variety of channels in Singapore. With some buyers opting for online orders, there are various selling points of the luxury car in Singapore. Among the various destination points for Mercedes Benz Class C includes the major attraction points in the island like Ion Sky, and Marina Bay Sand among others. More so, Mercedes Benz Class C has been distributed in Singapore through major exhibitions in the island like the Singapore Showroom, Titanic exhibition, MBS Countdown, and Elephant Parade among others.This has facilitated the distribution of the luxury cars to the people where they can view it and make purchases5. By having various points of sale for this product, high volume of sales has been experienced in this brand, since consumers find it easier to contact the sellers directly. Since customers are able to visit the show rooms and explore the vehicles directly, direct interactions between the brand’s representatives have facilitated brand popularity among the people of Singapore.Since Mercedes Benz Class C products are produced in Singapore, most of the sellers are company’s r epresentatives who act as sales agents. This makes the customers lack the opportunity of interacting directly with the manufacturers of the brand. With the advancement of e-commerce, many customers in Singapore have adopted online purchasing strategy for the Mercedes Benz Class C cars. Through online stores, Mercedes Company has been able to substantial customer base in Singapore6. Being a well developed country, many people use computers, making it easier for them to make most of their purchases online.Through the adoption of web video with interactive agent thriller as well as the company’s website, consumers have been able to know the products. After making online purchases the cars are shipped to the customers through the port of Singapore which handles various products from Europe and other parts of the world. Through the use of a blend of physical selling points and online marketing strategy, Mercedes Company has been able to distribute Mercedes Benz Class C cars to man y consumers in Singapore. 1. 4 Current PromotionCurrently, Mercedes Company adopts a variety of promotional platforms for Mercedes Benz Class C in Singapore. These platforms include internet portfolio, traditional print and cinema, which are 5 Paul, Leppert, Doing Business with Singapore: Global Business Series, (Washington, DC: Jain Pub Co. , 2000), 21. 6 Dennis, Adler, Mercedes Benz: First Gear, (London: Motorbooks, 2008), 41. Surname 6 reinforced with corporate social responsibility through integrated marketing communications. There various messages displayed on the promotional platforms for Mercedes Benz Class C which includes â€Å"Drive and Seek†, and â€Å"More Style per Hour†.All these promotional messages are available at the Mercedes Company’s website as core messages of persuading the customers to purchase the product. The message â€Å"Drive & Seek† has been passed on through this media, thus helping in marketing Mercedes Benz Class C. By adop ting this message, the company is guaranteeing its customers about the performance of the product. Online advertisement has been considered as key promotional platform adopted by the Mercedes Company in the sale of Mercedes Benz Class C in Singapore.With about 80 percent of Singapore’s society being able to access the internet at least daily, the use of web video advertisement by Mercedes-Benz has been found quite efficient7. Further, â€Å"More style per hour† is another promotional message adopted in the marketing of Mercedes Benz Class C in Singapore. This message has been widely available in the company’s marketing pamphlets, television ads and company’s websites. This message seeks to convince buyers that they will definitely experience outstanding prestige and stylish drive every time they use the product.With most of the consumers in Singapore being luxurious and prestigious in nature, this message has been found quite useful and accurate in meetin g the psychological needs of Singaporeans. The combination of these promotional messages has enhanced successful penetration of Mercedes Benz Class C in Singapore consumer market, while many consumers who have the product remaining very loyal to it8. 2. 0 Segmentation Theory 2. 1 Defining and Explaining Segmentation Segmentation is basically the identification and establishment of buyer/consumer subsets within a market.Notably, these groups of buyers demonstrate similar behaviors and needs. Despite the extensive and diverse nature of the global market, it should be noted that buyers have different behaviors and needs. With this in mind, marketers or businesses have to match groups of customers who have similar needs and behaviors. A point worthy of consideration is that each segment has 7 Leslie, Butterfield, Enduring Passion: Story of the Mercedes Benz Brand, (New York: Wiley Publishers, 2005), 33. 8 Philip Kotler, Marketing Places, (New York: McGraw Hill Press, 2001), 231. Surname 7 distinct needs and homogeneous characteristics.With this in mind, market stimulus and market intervention are used to address each segment9. Through segmentation, marketers are able to meet the specific needs of the particular customer base, by tailoring the products to meet the needs of such customers. 2. 2 Segmentation in Singapore for Mercedes-Benz Class C The market segmentation in the Singapore consumer market for Mercedes Benz Class C has been very useful in the way the company has been able to position the product more appropriately. The market segment aimed by this product is the middle age-group working class people who are educated.Particularly, Mercedes Benz Class C is meant for individuals who have achieved success in their early live and are having many ambitions in their endeavors. This is evidenced in their marketing messages which seem to concern active and well-up people seeking success in their various endeavors. For instance, ‘Drive & Seek’ is mean t to persuade active and successful individuals to seek more success through driving Mercedes Benz Class C10. With about 80% of the population aging between 18-49 years working, this segment has the potential to offer substantial market opportunity for Mercedes Benz Class C.More so, Mercedes Company targets young and well-up families. This is shown in the way Mercedes Benz Class C is specially tailored to accommodate a family while at various luxurious trips or excursions. As evidenced in the promotional message ‘more style per hour’ it is explicit that the company aims at meeting the needs of a family while traveling. Quite importantly, this segment comprises of large proportion in Singapore with about 48% of the population married, while the rest are children and youths11. As a result, there seems a potential market for this product in Singapore market. . 0 Target Market Identification 3. 1 Geographic Segmentation Singapore is a highly strategic and potential country for luxurious products like Mercedes- Benz C-Class. Precisely, Singapore is a small country which is highly urbanized. Since Mercedes Benz Class C requires flat and smooth terrain for outstanding performance, Singapore can be 9 Johan Arndt, Market Segmentation: Theoretical and Empirical Dimensions (New York: London, 2001), 38. 10 Dennis Adler, Mercedes Benz: First Gear, (London: Motorbooks, 2008), 38. 1 Paul Leppert, Doing Business with Singapore: Global Business Series, (Washington, DC: Jain Pub Co. , 2000), 43. Surname 8 considered as an ultimate geographical region for this product. Precisely, the urbanized nature of Singapore positions it adequately in terms of market for the Mercedes C-Class. Majority of the population being urban dwellers, they have found Mercedes-Benz C-Class very useful in meeting their needs12. It is also important to note that, Singapore is experiences tropical climate; rainy, humid and hot, which makes the country to remain ever green and agriculturally p otential.Though commercial farming is not commonly practiced, the people in Singapore have food security. These are key aspects with reference to the economic stability of the region, makes the region to offer potential purchasing power for luxury products like Mercedes Benz Class C. Besides the ability to buy, the physical environment has made the people of Singapore to associate themselves with superior products like Mercedes Benz Class C to match their conducive geographical features.The gently undulating and lowland terrain of Singapore enhances the need for Mercedes-Benz C-Class which has a high sense of comfort. 3. 2 Demographic Segmentation The demographics of Singapore can be considered as having the potential to offer potential market for luxury products like Mercedes Benz Class C. The population structure constituting many middle-aged people whom most of them are working offers potential market for luxurious cars like Mercedes Benz Class C. More so, about 40% of people liv ing in Singapore city are foreigners who have come to do business and white collar jobs.With about 76% of the people living in Singaporeans aging between 15-64 years, it is evident that most of the population is active, making it efficient for Mercedes Benz Class C which aims at active individuals and young families. Many of these people engage in economic activities which are industrial in nature like financial services provision, chemicals, electronics, construction and entrepot trade. With the population growth rate being estimated to be 1. 56 percent, there seems to be potential market for luxury products like Mercedes Benz Class C in Singapore throughout.It has also been observed that, high level of literacy in the country, which is about 90%, has played significant role in boosting the purchasing power of many Singaporeans. On this basis, it is evident that there is potential market for various segments aimed by Mercedes-Benz C-Class13 in Singapore. 12 Richard Vasil, Governing Singapore: Democracy and National Development (New York: Allen & Unwin, 2000), 96. 13 Leslie Butterfield, Enduring Passion: Story of the Mercedes Benz Brand, (New York: Wiley Publishers, 2005), 41 Surname 9 3. Psychographic Segmentation One of the target segment markets for Mercedes Benz Class C is highly ambitious middleaged working class. The luxurious lifestyle upheld by this group has been found effective when coupled with Mercedes-Benz C-Class as one of their luxury products. With most Singaporeans being active in their lives, they have been found quite suitable for being targeted as ultimate consumers for Mercedes-Benz C-Class. With this group being working, its purchasing power for luxury products like Mercedes-Benz C-Class has been guaranteed.It is also important to note that, the socio-economic status of the target market for Mercedes-Benz C-Class is high income earners who seek performance as their core values. As a result, such individuals would go for outstandingly perf orming products like Mercedes-Benz C-Class in their lives. In Singapore, the largest population consists of middle-aged people with modal age of 37 years. In this regard, it is evident that there is potential market for Mercedes-Benz C-Class for this market segment. The urban lifestyles of the population of Singapore also demonstrate the socioeconomic potential of the Singapore market14.As a result, it has been evident that Singapore population has potential market for the market segment with the psychographics associated with Mercedes Benz Class C luxury cars. 3. 4 Behavioral Segmentation The consumer behavior in Singapore has been demonstrated to be very admirable for the marketing processes of Mercedes-Benz C-Class. Since the brand name itself is globally acknowledged, it has been difficult for individuals who are used to the brand to switch to other luxury cars. Majority of the population are urban dwellers who are characterized with high sense of purchasing foreign and sophisti cated products15.Statistics have shown that, about 80% of Mercedes Benz Class C consumers are loyal to the brand in Singapore. This is evidenced in the way many golf playgrounds, which are associated with high class people, are associated with Mercedes Brand Name. This has been due to the sophistication and prestige associated with the product. Since the target market for this brand are also prestigious and luxuries, it has been hard for them to give up products which seems to embrace their core values like Mercedes Benz Class C16. This has 14 Paul Leppert, Doing Business with Singapore: Global Business Series, (Washington, DC: Jain Pub Co. 2000), 52 15 Richard Vasil, Governing Singapore: Democracy and National Development (New York: Allen & Unwin, 2000), 97. 16 Leslie Butterfield, Enduring Passion: Story of the Mercedes Benz Brand, (New York: Wiley Publishers, 2005), 55 Surname 10 adequately enhanced the potential of the population in purchasing the Mercedes-Benz C-Class. Generally , the high purchasing power of the target market for Mercedes Benz Class C in Singapore has facilitated high degree of loyalty to the product, since this product has been observed to embrace their personal and lifestyle needs.

Are Standardization from Enterprise Architecture

Are standardization and innovation in conflict? I have no doubt standardization and innovation are in conflict, at least to some extent, because standardization (almost by definition) reduces the amount of variation of processes or systems simultaneously used in a company. That is the whole point of standardization. If you reduce the variation allowed in the company, then necessarily you would lose some innovation â€Å"that could have happened†.I think if innovation is viewed in an evolutionary way, mass variation would be created by the local units focused on their individual needs and only the best innovations would e retained and scaled to the rest of the company. If all the companies departments are allowed to develop locally optimal solutions to their problems, certainly some of these variations will be better (at least for the unit) than by using a standardized software or technologies company-wide.To continue with the evolutionary theme, using any centrally dictated st andardized process would reduce the possible variation in which could be selected from the environment of each business unit. Think the better to view standardization vs.. Innovation as an inescapable trade-off. Does an enterprise architecture that allows a company to increase operational efficiency, ease of integration, reduce development costs, duplication of systems, simplify the acquisition of new modules, and sometimes vastly reduced maintenance costs worth some drop in the rate of innovation?I would argue that is absolutely worth it in in most instances. The key is to view this as an optimal trade-off where you can retain almost all of the innovation while also increasing standardization. An Enterprise Architecture that standardizes the types of technologies used across the many (PH/Dot. Net or Unix/Microsoft) is in the best interest of the company.When you intentionally limit the available options of each individual business units options (such as when Timber]jack decided to use Unix and that immediately removed many otherwise eligible companies) you are going to reduce the chance of finding the â€Å"perfect solution† for every possible module. Fortunately, most companies can settle on a â€Å"very good but not perfect† solution with any of the market leading platforms without getting a major drop in innovation.Agreeing on a standardized portfolio of technologies and processes, a company can then focus its resources on bringing new functionality to their users without wasting so many resources trying to hold together a Frankincense combination of dozens of systems, technologies and processes together that work â€Å"perfect† in isolation. Ultimately, using more resources on bringing new functionality will increase the total value of the IT department and the rate the department can innovate. Are Standardization from Enterprise Architecture and Innovation in Conflict? By Seasonableness

Self Communication And Conscious Communication - 1478 Words

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Self esteem or self worth is defined as, â€Å"Your assessment of your worth or value reflected in your perception of such things as your skills, abilities, talents, and appearance† (Beebe, 40). Communication enhances self-esteem because effectively conveying a message in the adequate intended manner can help boost self worth. When one can effectively communicate, one then can reach a conscious decision that they have made a positive impact by reflecting on how their communication was perceived andRead MoreCommunication Is An Important Part Of Lives862 Words   |  4 PagesCommunication Challenges Communication is an important part of lives. Unfortunately, not all of us are blessed with good communication skills. Poor communication can cause conflicts in our personal and professional lives. However, good communication will strengthen relationships and lead to success both personally and professionally. A little over a year ago, I went to the eye doctor for my yearly exam; I told him that I was having trouble reading things up close. Much to my surprise my vision