Business Development Plan and CRM: Thomas Cook Group

Business Development Plan and CRM: Thomas Cook Group 1.0 ABSTRACT Customer relationship management(CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM in its broadest sense simply means managing all customer interactions. In practice, this requires using information about ones customers and prospects to more effectively interact with its customers in all stages of its relationship with them. We refer to these stages as the customer life cycle. The customer life cycle has three stages: Acquiring customers Increasing the value of customer retaining good customer BUSINESS DEVELOPMENT The specialist area o fbusiness development comprises a number of techniques and responsibilities which aim at gaining new customers and at penetrating existing markets. Techniques used include: assessment of marketing opportunities and target markets intelligence gathering on customers and competitors generating leadsfor possible sales advising on, drafting and enforcing sales policies and processes follow-up sales activity. Project work: Learning of the major products and services of Thomas Cook (India) Ltd. Major Clients Major Competitors Acquiring a larger market share Learning about Customer Relationship Management Objectives Acquiring new customers. Retaining existing customers To have larger market share Limitations: Sometimes it is very hard to get an appointment with a corporate client as they have tough schedules. Meeting the right person in the organization is not an easy task who has the decision making power. Lack of transparency by companies in providing their data. Time period constraint was there for carrying out analysis. 2. INTRODUCTION 2.1 Company Profile Thomas Cook Group plc is a leading international leisure travel group, created by the merger of MyTravel Group plc and Thomas Cook AG in June 2007. Thomas Cook Group plc is a fully listed company on the London Stock Exchange. Thomas Cook (India) Limited is a part of Thomas Cook Group. It remains as a subsidiary of TCIM Limited, an unlisted private company, incorporated under the laws of England and Wales having its Registered Office at Peterborough, England, U.K. and holding 55.87% of the post Rights Issue paid-up equity share capital of the Company. Thomas Cook UK Limited (TCUK) apart from holding 21.45% of the post Rights Issue paid-up equity share capital of the Company, also holds 100% holding in TCIM Limited. Thus, TCUK indirectly holds 77.31% of the present paid-up equity share capital of the Company. 2.2 Thomas Cook (India) Limited During the year 2008, the Company successfully consolidated various businesses across Thomas Cook (India) Limited and its subsidiaries. The Company derived the synergy benefits in 2008 arising out of various initiatives like network harmonization, closure of non-core and loss making units, manpower realignment, and contributions from tourism boards for marketing spends, re-negotiation with vendors due to increased bargaining power. The one-time cost of integration amounted to Rs. 69.8 million. Thomas Cook organized a 19 city Summer Holiday Sale, a pan-India Holiday road-show offering the best Holiday deals. The roadshows were very successful giving a boost to the Domestic Business. The year 2008 was focused on Domestic Tourism with its launch through the brand name: My India, My Way. During the year, packages catering to the needs of different segments of customers were created. the Company was the first Travel Company to offer Indian Rail Bookings online in partnership with IRCTC on its portal. Further, the Company also integrated with Hotels4u real time on www.thomascook.in giving its online customers first hand access to over 30,000 hotels in the Hotels4u inventory. The Company also tied-up with Axis Bank for pre-paid forex card which offers exchange upto 7 currencies. Thomas Cook (India) Ltd. is the largest integrated Travel and Travel related Financial Services Company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, Leisure Travel, and Insurance. The Company launched its Indian operations in 1881 and is celebrating its 127 years of world-class service in India. Thomas Cook (India) operates in the following areas of business, namely:Leisure Travel, Corporate Travel Management, MICE, Foreign Exchange, SWIFT Network, Travel Insurance, Credit Cards, Pre-Paid Cards, Life Insurance and E-Business. Post March 31st 2008, Thomas Cook (India) Limited (TCIL) is a part of Thomas Cook Group plc UK (TCG). On March 7th 2008, TCG announced its decision to acquire TCIL from Dubai Investment Group. Thomas Cook Group plc is one of the largest travel groups in the world with a market capitalization of approximately US$6 Billion. In June 2006, Thomas Cook (India) acquired LKP Forex Limited and Travel Corporation (India) Pvt. Ltd. (TCI).TCIL presently operates in over 61 cities across almost 166 locations in the country. The company has overseas operations in Sri Lanka which is a branch of TCIL and Mauritius which is a subsidiary of Thomas Cook (India). The Company employs over 2,500 resources and is listed on both the Bombay Stock Exchange as well as the National Stock Exchange. Thomas Cook (India), over the years has received several prestigious awards such as the Golden Peacock Award for excellence in Corporate Governance and the Pacific Asia Travel Association (PATA) Golden Award for Best Travel. Recently, the Company won the Best Tour Operator at the CNBC Awaaz Travel Awards 2008 and was also accredited the P1 rating which is the highest financial rating given by Crisil. 2.3 Financial Facts of the Company Revenues as on December 31, 2010 as declared in the annual report was Rs 2588 million crore. A dividend of 37.5% on the equity share capital had also been the proposed dividend on the equity capital and preference Capital absorbs Rs. 93 million for dividend and Rs. 16 million for Dividend Tax. 2.4 Listing of Shares THOMAS COOK INDIA LIMITED is listed on two Stock Exchanges in India viz. Bombay Stock Exchange Limited, Mumbai and National Stock Exchange of India Limited, Mumbai. 2.5 Principal Bankers: State Bank of India ICICI Bank Limited HDFC Bank Limited IDBI Bank Limited Deutsche Bank Standard Chartered Bank The Hong Kong and Shanghai Banking Corporation Apart from this Thomas Cook has won the following awards: Best Travel Agency Award2004 given by TTG Asia Part of Pacific Asia Travel Association (PATA) for the 5th year in succession. The Golden Peacock Award for Corporate Governance, for the second time in a row. The Criteria for this award are transparency, excellence in conducting business, various levels of management, social and environmental responsibility, ethical business practice and Consistent creation of value for all the stakeholders. The National Tourism Awardfor 2001-2002 2002-2003, winning the second rank in category 1 for the company that achieved the highest foreign exchange earnings from Ministry of Tourism. National Tourism Award Best MICE Operator2006-07 National Tourism Award 3rd prize Inbound Operator2006-07 The Association of Business Communications of India(ABCI) where the company won the first prize for its website www.thomascook.co.in Awarded The Best Outbound Inbound Tour Operator of the Year award at the Hospitality India Awards 2006 hosted by Hospitality India. Recipient of the prestigious Government of India Ministry of Tourism award for Excellence in Conference Tourism Best Travel Agency India for the year 2008by TTG Asia Part of Pacific Asia Travel Association (PATA) Best Tour Operator by CNBC Awaaz in 2008 Best Outbound Tour Operatorin the 4th Hospitality India Explore the world Annual International Awards 2008 2.7 SWOT ANALYSIS Strengths Image Overall presence Customized services Efficient sales staff High focus on customer satisfaction Handling last minute transactions Weakness Inability to fully cover each market Not aggressive in advertising Opportunities Unexplored Market Hotels in Manesar Threats Other players in foreign exchange market. 3.0 INDUSTRY ANALYSIS 3.1 About Foreign Exchange Market In todays world no economy is self sufficient, so there is need for exchange of goods and services amongst the different countries. So, unlike in the primitive age the exchange of goods and services is no longer carried out on barter basis. Every country in the world has a currency that is legal tender in its territory and this currency does not act as money outside its boundaries. So whenever a country buys or sells goods and services from or to another country, the residents of the two countries have to exchange currencies. Foreign exchange market is described as an OTC (over the counter) market as there is no physical place where the participants meet to execute the deals. The largest foreign exchange market is in London, followed by the New York, Tokyo, Zurich and Frankfurt. The market are situated throughout the different time zone of the globe in such a way that one market is closing the other is beginning its operations. Therefore, it is stated that foreign exchange market is functioning throughout 24 hours a day. 3.2 Need for Foreign Exchange If an Indian company exports cotton fabrics to USA and invoices the goods in the US dollar. The American importer will pay the amount in US dollar, as the same is his home currency. However the Indian exporter requires rupees i.e. his home currency for procuring raw materials and for payment to the labour charges, etc. Thus, he would need to exchange US dollar for rupee. If the Indian exporter invoices their goods in rupee, then the importer in USA will get his dollar converted in rupee and pay the exporter. From this we can infer that in case goods are bought or sold outside the country, exchange of currency is necessary. 3.3 Following are the major bifurcations: Full fledge moneychangers these are the firms and individuals who have been authorized to take both, purchade and sale transaction with the public. Restricted moneychanger these are shops, hotels, etc that have been authorizes only to purchase foreign currency towards cost of goods supplied or services rendered by them or for conversion into rupees. Authorized dealers these are the ones who can undertake all types of foreign exchange transaction. Banks are the only authorized dealers. The only exceptions are Thomas Cook, Western Union. 3.4 Participants in foreign exchange market The main players in foreign exchange market are as follows: Customers: The customers who are engaged in foreign trade participate in foreign exchange market by availing the services of banks. Commercial Banks: They are the most active players in the foreign exchange market. Commercial banks dealing with international transaction offer services for conversion of one currency into another. They have a wide network of branches. Central Bank: In all countries Central Bank have been charged with the responsibility of maintaining the external value of the domestic currency.. Generally this is achieved by the intervention of the bank. Exchange Brokers: Forex brokers play a very important role in the foreign exchange market. However the extent to which the services of foreign brokers are utilized depends on the tradition and practice prevailing at a particular Forex market centre. Overseas Forex market Speculators 3.5 Major Competitors The major players in the foreign exchange market VKC FRR WEIZMANN FCM TT FOREX CENTRUM RR SEN MERCURY 4.0 SERVICES 4.1 Holidays Inbound Inbound Tourist refers to tourists/ travelers coming to India. Inbound tour operators promote India as a tourist destination. TCIL organizes tours for foreign tourist visiting India. TCIL organizes Individual tours, group tours and Conferences. Various services offered in inbound business are accommodation, ticketing, roundtrip, excursion, land arrangements, airport transfer etc. These services are procured from providers of these services like hotels, airlines, transporters, guides etc. within India. Customers are typically individuals and are sourced by overseas principals, tour operators or travel agents. TCI, one of the subsidiaries is among the leaders in inbound tourism and works closely with tour operators worldwide. TCI has a widely distributed network of travel agents and tour operators worldwide. It has around 20 offices in India and a total of 11 offices in USA, Canada, UK, France, Germany, Spain, China, Korea, Japan and Australia. TCIL also acts as a ground handling agent domestically for Charter flights coming from international destinations. TCIL also offers customized individual holidays, group escorted holidays, MICE (Meeting, Incentive, Conference and Exhibition) arrangements and emergency medical assistance. Inbound travelers handled by our Company are primarily from Europe and USA.TCIL enters into business arrangements with the foreign tour operators for servicing their customers when they arrive in India. 4.2 International Holidays Outbound tourist refers to Indian Nationals traveling out of India. TCIL offers outbound tour packages across approximately 50 Countries. Outbound packages include various services like air tickets, visa, travel insurance, airport transfer, hotel accommodation, sight seeing, etc. International Holidays is further classified into following categories: Group Escorted Holidays: These are ready made packages where a group of travelers is escorted by a Tour Manger. Customised Individual Holidays: Tailor made packages based on individual requirements MICE: Dealers/Employees are sent on tour by Corporates. Sales agency amongst others for Star Cruise, Rail Europe, Globus, Cosmos Tours, Greyhound, Amtrak, Rocky Mountaineer Vacations, Japan Rail and Costa Cruises 4.3 Domestic Holidays Domestic Travel refers to Indian Nationals (Tourists, Business Travelers, Students, Leisure travelers) traveling within India. Various services offered are accommodation, ticketing, roundtrip, excursions, land arrangements, airport transfer, etc. These services are procured from service providers like hotels, airlines, transporters, guides, etc. TCI, one of our subsidiaries specializes in special interest and incentive tours, conferences and air charter / cruise ship ground operations. It operates its own Taj Mahal Tour and Delhi City Tour and is a General Sales Agent (GSA) for the Palace on Wheels and the Deccan Odyssey. TCIL is an active member of various industry and professional organizations. 4.4 Air Tickets Book your Air Tickets for your travel with TCIL either offline or online through the sitewww.thomascook.in.   Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   TCIL offers a complete range for flights, right from Low Cost to Full service Airlines, to choose from. 4.5 Rail Tickets Book your Rail Tickets for your travel with Thomas Cook either offline or online through the sitewww.thomascook.in. You can choose either Indian Rail Tickets that are available via IRCTC or International Rail Tickets via Rail Europe. TCIL offers a complete range for Rail Bookings, International or Domestic. 4.6 Corporate Travel Corporate Travel forms a dominant share of overall travel business of our Company. TCIL manages the travel budgets of several large national and multinational companies. The large scale of operations enables it to effectively manage travel budgets of several Multi National Companies, Blue-Chip companies and Multinational banks to their advantage. The Company provides Integrated Travel Management / Advisory Services to more than 300 Corporates. TCIL provides customers a complete basket of products for all their travel needs: Air Reservations Hotel Reservations Land arrangements which includes sight seeing, car rental, transfers etc. Passport / Visa Service Conference / Incentive tour arrangements Foreign Exchange Insurance The branches specialize in offering tailor-made Travel Policies for each corporate, thereby bringing savings on spend. Based on requirements and volumes of business, corporate are serviced either by having a dedicated relationship team visits clients office regularly or having a dedicated expert travel consultant with Centralised Reservation System located at the clients site as an implant. 4.7 Meetings, Incentives, Exhibitions Conferences Experience:This refers to the experience of the travelers right from the time they board the airline to the foreign destination till the time they come back. The travel here is a REWARD for the dealers/employees of the company who have done well over a period of time. The company (as well as the employees) expects the trip to be an enjoyable, hassle free and fun filled experience. Thomas Cook understands their concern and provide them this experience through our:- Experienced, dependable and extensively traveled Tour Managers, who are available with the group 24 X 7, provide their personalized services to the group and at times, act as crisis managers. In contrast, the other tour companies often send their ticketing person as the tour manager. The requests for special Dietary requirements are taken care of completely. The Indians are very particular about the food they eat (e.g.) Jain food. It is made sure that the clients get the same, irrespective of the location they are traveling to. The sightseeings that are offered are often exotic and different from the rest of the tour operators. Customer Focus/Customer Centric/Exceptional Service:This primarily refers to the experience of the corporate with the sales representatives. There is a huge extent of customization in case of a MICE trip in terms of destinations, hotel requirements, conference needs, sightseeings to be covered, gala dinner venue, team building activities etc. The prime focus is always to cater to our customers specific needs and the intent is to delight the customer by always delivering more than promised by us/expected by them. Dependable:This comes out of the reputation of the company (TCIL) and the vast experience of handling a large number of MICE movements in the past. The fact that TCIL has trusted business partners (suppliers) for every destination and that there is always an experienced tour manager with the group ensures that the clients feel secure when they travel with us. Moreover, the reputation of the company ensures that there will be no let up in the service quality and there wont be any trivial financial issues. Reservoir of Knowledge:The experienced employees of the MICE business make sure that they function as a travel consultant to the client rather than being a travel agent to them. It is believed that with the expertise, TCIL is in a position to provide multiple options to our customers. This is especially true in case of clients who have a budget constraint. Once the client is provided with multiple options along with the pros and cons for the same, they are in a much better position to take a decision regarding the destination as well as the services that they expect us to provide them. Value for Money/Cost Effective: TCIL is committed to provide quality service to its clients and they do not believe in any compromise on the same (0% Compromise). It is made sure that the experience that our clients get is of a greater value than the cost that they pay for it. If TCILs cost is more than the competition, then there is ALWAYS a very strong reason for the same (which could be better quality of hotels, better airlines, EXTRA inclusions etc.). Product Innovation:Over the last decade or so, the MICE industry has been booming. Since then, some of the companies have been traveling each year (with multiple incentives/conference tours). They are always looking out for new destinations for the incentive trips. TCILs endeavour is to be ahead of the competition at all times and product innovation is one way of doing that. TCIL has promoted new destinations at different points of times which have traditionally never been thought of for a MICE trip. E.g. Jordan, Japan, Macau, Canada. Moreover, within the same destinations, TCIL has managed to change the product mix by changing the venues for Gala Dinner (at cruise, Desert Safari etc.) or including some exotic sight seeings or providing some out of the box team building activities or in any other way. Wide Reach:TCIL is confident of providing our customers with the best of the services at any destination that they wish to visit. This is due to the vast resources of the company and due to the number of trusted business partners that we have all over the world. One Stop Shop for MICE needs/Integrated travel services:Its the firm belief that once the customer enters one of our offices, all his travel needs will be catered to. TCIL provides the customer with the forex services, insurance cover and a travel card. Moreover, TCIL can service their visa requirements better than any other tour operator because of our goodwill and the relationships that we have with the various embassies/consulates. We have the ability to provide the customer with a 360 degree experience on a consistent basis. Work with Play:This is particularly true in case of the corporates who have an offsite for a conference/meeting. TCIL ensures that after a hard days work, they have a relaxed and fun filled evening. This can be done by sending them on a night cruise or by treating them to a Gala Dinner with free flow of liquor and a Live DJ. In one of the cases, we had sent a couple of VJs and RJs (RJ Taraana) from India who made sure that everyone from the group was involved in the fun activities. 4.8 Thomas Cook Credit Card Salient Features: Thomas Cook Titanium MasterCard features in brief: The card has been specially designed for frequent travelers. Attractive 6 reward points for each spend of Rs.100 on the card on Thomas Cook products Free Delivery of Foreign Exchange within city limits Rs. 5,000 discount on any Thomas Cook GIT product 1 Free Air ticket to a domestic destination on the issuance of new card Complimentary travel inconvenience insurance policy Access to MasterCard travel lounges at Airports across the world Redemption of reward points for Thomas Cook holiday packages, hotel stays, air tickets, airline upgrades, etc Conversion of Thomas Cook reward points to frequent flyer miles convert the reward points earned on card to frequent flyer miles on select domestic airlines. Positioned as a comprehensive travel card Assured gifts for the joining fees free air ticket / discount voucher Higher reward points for card swipes at Our Companys outlets Redemption of reward points against Thomas Cook products encouraged 4. 9 Travel Insurance Insurance business of being carried out through our 100% subsidiary Thomas Cook Insurance Services (I) Ltd. (TCISL). TCISL is a corporate agent of Tata AIG General Insurance Company Limited. TCISL entered insurance distribution in 2001 and offers the following products and services: TravelCare (Overseas Travel Insurance)- Travel Care offers security for travelers which covers travel insurance, hospitalization, loss of documents, Repatriation of Remains, emergency Cash Advance or any other crises which requires assistance. FamilyCare- An Overseas travel Insurance cover for entire family of 4-5 persons with single overall sum insured. ScholarCare (Overseas Student Insurance)- A customized product for all students studying abroad which ensures timely assistance in case of unexpected surprises in a foreign land. CorporateCare (Overseas Corporate Travel Insurance)- For Companies where employees travel abroad frequently on work, we have customized group policies. All foreign trips undertaken by employees in a year are covered under a single policy. TCISL provides all insurance products at all our outlets, leveraging on ability to cross sell insurance products to our Travel and Forex customers. 4.10 Foreign Exchange Thomas Cook India is the largest non banking authorized Dealer in India providing an array of foreign exchange products and services to various customer segments in India, Srilanka and Mauritius It has the largest network of branches with 144 locations across 53 cities in India including 28 airport counters in major cities working 24 x7x 365 days. It also has a vast presence in Mauritius with 12 locations including international airport and also in Sri Lanka at 3 major locations. It has been awarded the best foreign exchange company by CNBC Awaaz for the year 2008 and 2009. 4.11 Service Strategy of Thomas Cook To deliver exceptional service to all internal and external customers By Being  Ã‚  Ã‚   By Providing  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   By Ensuring Proactive   Professional Service  Ã‚  Ã‚  Ã‚  Ã‚   Personal Care Speedy Flexible Transparent Reliable Creative 5.0 FOREIGN EXCHANGE Thomas Cook has been granted an authorized dealers license (category II) by RBI to deal in foreign exchange through its designated branches. Under this license, we have been, inter-alia, granted permission to undertake the following activities: 1. Retail purchases of foreign currencies and travelers cheques. 2. Bulk purchases/sales of foreign currencies from/to authorized dealers, money changers and franchisees. 3. Release / remittance of foreign exchange for the following activities: a. Private Visits b. Remittance by tour operators/travel agents to overseas agents/principals/hotels c. Business Travel (including for Central and State Government officials) d. Fee for participation in global conferences and specialized training e. Payment of crew wages f. Film Shooting g. Medical Treatment abroad h. Overseas Education i. Remittance under educational tie up arrangements with universities abroad j. Maintenance of close relatives abroad k. Stall rentals and participation fees in connection with participation in overseas exhibitions / fairs 4. Import and export of foreign currency and export of encashed Travelers Cheques 5. Maintenance of foreign currency accounts with banks abroad and undertaking forex cover operations in India and abroad. The activities permitted by RBI are carried out only at the specific locations permitted by RBI. As an Authorized Dealer, we are a member of the Foreign Exchange Dealers Association of India. Our Company provides the foreign exchange and payment solutions for: Individual travelers Foreign exchange for leisure outbound travelers Foreign Exchange for migration, employment, medical treatment Remittances for students studying abroad, gift remittances etc Encashment services inward remittances for inbound tourists visiting India, Non Resident / Resident Indians. Corporates Travel money and remittances for business travelers. On site support for inbound tour conferences. Film production houses traveling for shoots abroad. Remittances of tour proceeds for tour operators. Institutions Bulk purchases and sales of foreign currencies from Banks, Non Bank Retailers and Money Changers. Our business model revolves around leveraging its position as an Authorized Dealer with systems, ability and experience of handling large volumes of forex transactions for both wholesale and retail customers in a highly cost-efficient manner. 5.1. Network The strong network enables TCIL to attract large wholesale clients such as public and private sector banks, FFMCs and RMCs to use our services. TCIL has a strong network of approximately 160 offices in 55 cities and 100 RMCs Hotel Franchisee. The Company has foreign exchange counters at the international airports of Mumbai, New Delhi, Kolkata, Chennai, Cochin and Trivandrum which are open 24 hours and 365 days a year to cater to the needs of the international travelers. It also has a round-the clock Foreign Exchange counter at the New Delhi Railway Statio

nixon Essay -- essays research papers

Richard Milhous Nixon, (1913-1994), nik's[sch ]n, 37th PRESIDENT OF THE UNITED STATES. Nixon is remembered for his achievements in foreign policy and for the WATERGATE affair and related scandals, in which he became so involved that he was forced to resign his office. Nixon was a skilled negotiator with a broad understanding of world affairs. He and his adviser Henry Kissinger ended direct U.S. involvement in the Vietnam War. They improved relations with China and the Soviet Union. They helped end a war between Israel and its Arab neighbors and worked toward a lasting peace in the Middle East. But the restrictive oil policies of Middle Eastern countries further weakened an American economy that slipped into a recession during Nixon's last year in office. The president's career was shattered when evidence established that he had joined members of his staff in trying to cover up the Watergate break-in. Nixon's decline and fall spanned two years as the truth slowly unfolded before an incredulous nation. Dozens of government officials, campaign aides, and financial contributors were implicated in the scandal. In his later years Nixon sought to rehabilitate his image, lecturing frequently, traveling abroad, advising presidents, and publishing several books on U.S. foreign policy. Before becoming president, Nixon served in the U.S. House and the U.S. Senate and as vice president. An articulate spokesman for the REPUBLICAN PARTY, he was named to the GOP national ticket a recor...

Mission and Vision Statements Essay

It often reflects the values and beliefs of top managers in an organization. A mission statement is the broad definition of the organizational mission. It is sometimes referred to as a creed, purpose, or statement of corporate philosophy and values. A good mission statement inspires employees and provides a focus and direction for setting lower level objectives. It should guide employees in making decisions and establish what the organization does. Mission statements are crucial for organizations to prosper and grow. While studies suggest that they have a positive impact on profitability and can increase shareholder equity, they also support that almost 40 percent of employees do not know or understand their company’s mission. Not only large corporations benefit from creating mission statements but small businesses as Photo by: sellingpix http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 1 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM well. Entrepreneurial businesses are driven by vision and high aspirations. Developing a mission statement will help the small business realize their vision. Its primary purpose is to guide the entrepreneur and assist in refining the planning process. By developing a strategic plan that incorporates the mission statement, entrepreneurs are more likely to be successful and stay focused on what is important. The mission statement encourages managers and small business owners alike to consider the nature and scope of the business. Business Week attributes 30 percent higher return on several key financial measure for companies with well-crafted mission statements. COMMON ELEMENTS While mission statements vary from organization to organization and represent the distinctness of each one, they all share similar components. Most statements include descriptions of the organization’s target market, the geographic domain, their concern for survival, growth and profitability, the company philosophy, and the organization’s desired public image. For example: Our mission is to become the favorite family dining restaurant in every neighborhood in which we operate. This will be accomplished by serving a variety of delicious tasting and generously portioned foods at moderate prices. Our restaurants will be clean, fun, and casual. Our guests will be served by friendly, knowledgeable people that are dedicated to providing excellent customer service. This mission statement describes the target market, which are families and the geographic domain of neighborhoods. It clearly states how it expects to be profitable by offering excellent customer service by friendly, knowledgeable people. When defining the mission statement it is important to take into account external influences such as the competition, labor conditions, economic conditions, and possible government regulation. It is important to remember however, that mission statements that try to be everything to everybody end up being nothing to anybody. http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 2 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM Companies should have mission statements that clearly define expected shareholder returns and they should regularly measure performance in terms of those expected returns. If the major reason for a business’s existence is to make a profit then it stands to reason that expectations of profit should be included in the organization’s mission. This means that management should reach a consensus about which aspects of the company’s profit performance should be measured. These might include margin growth, product quality, market share changes, competitive cost position, and capital structure efficiency. A mission statement sets the boundaries for how resources should be allocated and what strategic and operational goals should be set. The mission statement should acknowledge the company’s strengths and then inform employees where to direct their efforts in order to take advantage of those strengths. Before writing a mission statement organizations should take a look at how they are different from the competition, whether it is in technology, image and name brand, or employees. It can often be thought of as a recipe for success because it not only defines the organization’s accomplishments but it also provides employees with directions to help them develop plans and look for opportunities for improvement. The organization defines what is acceptable behavior through the mission statement. Values and beliefs are the core of a strong mission statement. For example: Quality and values will secure our success. We will live by our values, have fun, and take pride in what we do. Our values are to maintain a work environment where people enjoy coming to work, to serve our guests and exceed their expectations, and to be profitable and result oriented. This mission statement is simple and straightforward. It does not, however, specify the products or target market. The mission statement also provides meaning to the organization by stating not only what goals the company wants to achieve but also why it wants to achieve these goals. It is not effective unless it is challenging and forces workers to establish goals and means to measure the achievement of those goals. A mission statement should inspire employees and get them involved in the organization. It has been called the glue that holds the organization together through shared values and standards of behavior. A mission statement should be relevant to the history, culture, and values of the company. Many statements refer to the social responsibility of the organization. For example, a company can show their concern for the community in the following: http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 3 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM To be involved as good corporate citizens wherever we are around the world. We will treat customers and distributors with honesty, courtesy, and respect. We will respect and preserve the environment. Through all of this we will prove to be the worldwide leader in industry trade. One important issue in organizations today is the concern with diversity. While it is not a traditional point included in mission statements, more and more companies are including it because of the globalization of the economy and the increased diversity of the workforce. Before writing a mission statement, leaders in the organization must have an idea of what is in store for the future. This vision is the foundation for the mission statement. The vision provides a strategic direction, which is the springboard for the mission and its related goals. A vision statement differs from a mission statement. Vision statements are a view of what an organization is striving to become. For example: To bring back to neighborhoods all over America the importance of family unity. We will view ourselves as a family so these attributes will be carried over into our service. They guide an organization into the future while mission statements are a reflection of the present. Because vision statements are a glimpse into the future, they are often not realized for several years. Organizations go through many changes and can face times of confusion and uncertainty. Changes are not always expected or easy, so a well thought out vision statement will help everyone stay focused and meet the organization’s goals. Some examples of well-known companies’ mission statements: Wal-Mart: â€Å"To give ordinary folk the chance to buy the same thing as rich people. † 3M: â€Å"To solve unsolved problems innovatively. † Walt Disney: â€Å"To make people happy. † Historically, these may have seemed arrogant. But consider the outcome of the following mission statements from each company’s early days: Ford Motor Company: â€Å"Ford will democratize the automobile. † Sony: â€Å"Become the company most know for changing the world-wide poor-quality image of Japanese products. † Wal-Mart: â€Å"Become a $125 billion company by the year 2000. † http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 4 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM WRITING A MISSION STATEMENT When creating a mission statement there are a few simple guidelines that can be followed. It is important to remember the basics so the mission statement stays simple and straight to the point. Some researchers agree that it should be kept to between 30 and 60 words, while others believe it does not necessarily have to be that brief. Some organizations have mission statements that are only one sentence, while others are a paragraph. An example of a mission statement that is limited to one sentence is â€Å"Our business is selling houses and our mission is total customer satisfaction. At a minimum, each mission statement should answer the following three questions: (1) What are the opportunities or needs the organization addresses? (2) What does the organization do to address those needs? and (3) What principles and values guide the organization? In other words, defining the organization’s purpose, business and values. Avoiding jargon and buzzwords will keep the mission statement clear and easy to understand. It should be universal and simple to comprehend for all employees in the organization. It should be unique and identify the organization. A mission statement is often what sets one company apart from the competition. It should outline the organization’s competitive advantages and differentiate it from everyone else. Specific products/services offered as well as markets or customers should be included. Also a general business definition, behavioral standards, and desired competitive position can be added to a strong mission statement. EMPLOYEE INVOLVEMENT It is often helpful to allow company-wide input when creating a mission statement. This â€Å"bottom up† approach results in greater commitment to the organization and a better understanding of the organization. Employees from throughout the organization can help identify the core values of the company. In order to encourage employee participation, many companies have created competitions inviting employees to submit suggestions. Cash prizes are sometimes provided as an incentive for creative and inspirational statements. Some companies find it useful to invite customers to assist in writing a mission statement because they can provide an honest perspective. Another option is to review mission statements from other companies. This can help provide ideas as the writing process begins. It is important to keep in mind that there will be a draft process involved in creating the mission statement. Employees can often provide invaluable insight on how to improve on each draft. In the end, the mission statement should reflect the personality of the organization. Thus, each company should be creative and unique in developing its own statement. Creating a mission http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 5 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM  committee that consists of members of management, frontline employees, and customers is another way to begin writing a mission statement. The major benefit of this strategy is the inclusion of all areas of the organization to ensure that everyone is represented. Another benefit is that employees will be more willing to work toward accomplishing the mission if they know they had a vo ice in its creation. A â€Å"top down† approach can be effective in smaller organizations or even sole proprietorships. There is less time involved in creating a mission statement when it comes from the top. Also, many times frontline employees and lower level managers lack the insight necessary to see the big picture. They may not be able to conceptualize the entire organization and therefore miss important aspects of the business. Participation may not always be a good option for small businesses. In small businesses that are started by entrepreneurs the mission statement is generally a vision of an individual and therefore may not be negotiable. When the mission statement comes from upper management, employees are more assured of the organization’s commitment to the statement. A word of caution should be noted when deciding whether to adopt a â€Å"top down† approach or a â€Å"bottom up† approach. If the mission statement is to be created with a wide variety of input from both employees and customers then it will take longer than a â€Å"top down† approach. There must be a sharing of views and ideas with compromises made. A consensus should be developed without the problems associated with groupthink. There is always the possibility that too much compromise will distort the mission statement and the end result is something different from the original intent. The â€Å"top down† approach is not always effective because it rarely consults employees when making important decisions. Therefore, although it is the fastest route to take it isn’t always the most effective. While the mission statement should be able to change with the times it is also understood to have a certain degree of permanence. As new businesses begin to grow and hire more employees the mission statement should provide a strong sense of stability and a clear definition of the culture. A mission statement is worthless unless it has the support of the employees in the organization. It will only be successful if each employee commits to its success and internalizes it. Once the statement is completed it is extremely important that the organization not put it on the shelf to collect dust. It should be shared with the entire company. The introduction of the mission statement should come directly from top management in order to set the example. Organizations should be creative in making employees aware of the mission statement. Placing it strategically in locations where employees gather will increase awareness and remind them of the goals of the http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 6 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM organization. Videos outlining the details of the new mission statement are often useful; however, it is critical that employees have the opportunity to discuss the statement with members of management. Setting up meetings with members of management and frontline employees can often help uncover areas where the company does not meet the standards set by the mission statement. Communicating the mission statement to customers will make them feel valued and important. It can be sent to customers in a mass mailing or posted on signs in areas those customers frequent. It sets forth the goals of the organization so customers know what to expect when doing business with the company. SWOT ANALYSIS SWOT is an acronym for strengths, weaknesses, opportunities, and threats. SWOT analysis is a strategic planning tool that helps an organization match its internal strengths and weaknesses with external opportunities and threats. SWOT analysis is important and useful in creating and executing the organization’s mission statement. Often the best strategies for accomplishing the organization’s mission are revealed through the SWOT analysis. The best strategies are those that take advantage of strengths and opportunities, offset threats, and improve weaknesses. Organizations should first begin by reviewing internal strengths and weaknesses. When analyzing an organization’s strengths it is important to identify distinctive competencies or strengths possessed by only a few competing firms. These distinctive competencies often become the competitive advantages that are included in the mission statement. Distinctive competencies can be found in financial resources, quality products and services, proprietary technology, or cost advantages. Organizational weaknesses are skills and capabilities that prevent an organization from implementing strategies that achieve its mission. They can be problems with facilities, lack of a clear strategic direction, internal operating problems, too narrow a product line, weak market image, or the inability to finance changes. The next step is to identify external opportunities and threats. Organizational opportunities are circumstances in an organization’s environment that if capitalized on will result in above normal increases in economic performance. Examples of opportunities are related to the possibility of adding a new product line, increasing market growth, or diversifying into related products. Threats are viewed as circumstances that give rise to normal or below normal economic performance. They can be found in the ease of entry of competitors, increased sales of substituted products, demographic changes, slowed market growth, or increased competition. EVALUATION http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-State ments. html Page 7 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM Evaluation of the mission statement is necessary to ensure the organization is meeting its goals. If needed, new goals may have to be created in order to accommodate changes in the organization. It may be time to reevaluate what the organization is doing or where it is headed. This is a good time to think about entering into new areas or to begin doing things differently by rewriting part or all of the mission and vision statements. In evaluating an organization’s performance, management must look at several different aspects of the organization. First, managers need to determine if the organization’s plans are clearly linked to its mission statement and related goals. Plans should be developed for both the short run and long run. Secondly, assigning jobs that are directly related to the achievement of organizational goals will help ensure they are attained. The goals should be communicated clearly so employees understand what tasks need to be carried out and what the rewards will be. Finally, when evaluating individual performance, the information gathered should be recent and compared to established standards. Mission statements are often difficult to evaluate because they are written in a somewhat abstract form. They are, many times, not directly measurable and vaguely worded. Figure 1 presents an example of how mission statements can be measured from the top of the organization to the bottom. Strategic goals are directly tied to the organization’s mission statement and apply to the organization as a whole. Tactical goals are departmental goals that support the strategic goals. Finally, operational goals are written at the individual level. Each one of these makes it possible to measure the organization’s mission statements. An organization’s likelihood of accomplishing its mission is increased as it creates strong and measurable goals at each level. It is not necessary that the mission statement be measured in quantifiable terms. It may also be measured qualitatively. For example, â€Å"We will answer all of our customers’ questions and if we don’t know the answer, we will find out. † While this is not a quantitative statement it can be measured by monitoring customer service calls and setting operational goals for employees that revolve around follow up and thoroughness. Mission and vision statements give organizations a focus and a strategy for the future. According to Bart and Tabone, they have become the cornerstones of organizations. They contribute to organizations’ success and can lead to increases in productivity and performance. They do not have to be reserved for the entire organization—each department or division can benefit from developing a mission statement, as long as they are not in contradiction to the company’s overall mission. Preferably, an individual department’s mission links it to the fulfillment of the overall http://www. referenceforbusiness. com/management/Mar-No/Mission-and-Vision-Statements. html Page 8 of 12 Mission and Vision Statements – strategy, organization, examples, advantages, definition, company, disadvantages, business 5/19/13 2:42 PM company mission. Mission statements for functional Figure 1 departments provide the same benefits as they do for the entire organization. In conclusion, mission statements provide a sense of direction and purpose. In times of change and growth they can be an anchor and a guide in decision making. The benefits far outweigh the disadvantages and challenges when looking at the potential for increases in profitability and returns. Defining an organization by what it produces and who it satisfies are major steps towards creating a sound and stable mission statement. Setting a company apart from the competition is probably one of the biggest advantages. SEE ALSO: Strategic Planning Failure ; Strategic Planning Tools ; Strategy Formulation ; Strategy Implementation ; SWOT Analysis Amy McMillan Revised by Deborah Hausler FURTHER READING: Bart, C. K. , and J. C. Tabone.

The Impact of Emotional Intelligence on Sales and Business

The Impact of Emotional Intelligence on Sales and Business Charles M. Boliko EXECUTIVE SUMMARY This paper explores the impact of emotional intelligence in the business world. In a world that continues to innovate technologically, businesses are constantly looking for new ways to try to remain ahead of the competition, and it is clarified with this paper that one way to do this is by understanding how to use emotional intelligence to establish customer loyalty and good brand appeal. The interaction between a salesman and a potential client was analyzed and discussed to develop an understanding of how a salesman can use emotional intelligence to maximize the chances of making a deal with the client. Customer service in businesses was†¦show more content†¦A good salesman would have various strategies to respond to given signs, increasing the probability of a successful sale. Failing to respond to the customer appropriately can almost guarantee the salesperson has failed to make a sale. Goman (2012) posted an article on Forbes titled â€Å"Knowing When to Back Off† describing an interaction she was observing between a salesman and a potential client in a bar. In a short paragraph she talks about how the salesman appeared to be doing well verbally, but he was putting the client in an uncomfortable position by sitting too close to him. The client began to inch away very slowly, and the salesman did not notice any of this. The client eventually ended up leaving the bar after excusing himself to make a phone call. The salesman failed to understand the client’s basic need of personal space, which cost him the sale. Had the salesman recognized the non-verbal message being sent by the client, the client may have stayed. So it can be seen that developing this social awareness with emotional intelligence and understanding the needs of the customer become very important for the success of a salesman. The salesman would have to know about how to react to the emotion and message being conveyed with body language and control thes e emotions in order to lead the dialogue in the direction which hopefully leads to a sale. Companies with good customer service are considered more successful because ofShow MoreRelatedFostering Emotional and Social Intelligence in Organizations1410 Words   |  6 PagesFostering Emotional and Social Intelligence in Organizations The concept Emotional and Social intelligence or ESI is no new term; it is the outcome of a research almost 35 years old. Being the product of a multidisciplinary research approach, it is considered a significant tool to examine behavioural competencies and their impact on performance. 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