Essay: Three well known companies

1.1 INTRODUCTION: –

This task contains the research of three well known companies which have recently changed their marketing strategy to come out from current economic climate. The three companies are AMAZON, EAT and TFL (Transport for London). I am going to research about the changes which they made to run their business.

1.2 OBJECTIVES

• Investigate the nature of the companies and their position in the current economic climate,
• Carried out a research about the changes they took place in last five years,
• Show the positive or negative outcome of the changes.

1.3 Individual report of three chosen companies 1.3.1 AMAZON

BACKGROUND

The world’s leading online retailer Amazon.com had done international expansion, on 15th Oct. 1998. The new internet bookstore service presenting broad range and small prices. The site operated by the Book pages Ltd, previously was replaced by the new site which was acquired by Amazon.com. The new Amazon.co.uk site had over 1.4 million titles and more than 200,000 bestselling US published titles. The good part of this site is anyone can order any book 24/7 and then they deliver the products within 3-4 working days at the address which is recommended by the customers. The leading online retailer is based in US and it has achieved $116 million in just over 3 years from start up in second quarter of 1998. Among 160 countries it has served over 3.1 million customers.

COMPETITORS: As we know that Amazon is doing a virtual business and there are other companies in UK market which are offering a same service, like EBAY, Play.com, e-buyers and price runners.

CHANGES

On 21st January 2010, Amazon.co.uk has launched the Amazon MP3 music store Application for AndroidTM, which is its latest mobile application. With Android-based mobile phones, customers can now search, download, buy, and play more than ten million songs from the Amazon MP3 music store whenever they want and wherever they go. In October 2009 Amazon has launched Car & Motorbike store, which featuring more than 10,000 products from tools to spare parts, tuning products to GPS system and car care to protective clothing. The aim of Amazon was to create a one-stop shop for all car and motorbike enthusiasts. Amazon had cuts its free shipping threshold from £15 to just £5 on 16th October 2008. The reduction means that the UK customers can get over 90% of products which are selling by Amazon will be delivered free. Amazon offers customers a choice of delivery option with the Prime membership programme, offering unlimited free One-Day delivery for an annual fee of £49.

Outcome of Changes

As we know the Amazon has introduced something new to its business every year to attract more customers. From October 2008 to October 2009, the number of customers is increased by 9% just because of the free shipping on order of only £5.

BACKGROUND

EAT, THE REAL FOOD COMPANY was founded fourteen years ago by Niall MacArthur and Faith MacArthur with the ambition of providing the best food, soup and coffee in London at low prices. On 12th October 1996, the first shop was opened on Villiers Street, London WC2 and we stood in uniform awaiting our first customer at 7 am without any industry experience. Now you can find EAT on every street of Central London with over 100 branches. The kitchen is the secret of its success because they don’t buy a single mass-produced sandwich, soup or salad from any factory. They make them all themselves by hand in their own kitchen, with a ONE-DAY self life for maximum freshness and quality.

COMPETITORS: There are four main competitors in UK market, which are Pret a Manager, Costa, Star Bucks and Cafe Nero.

CHANGES

With the intention of attract more customers EAT has introduced a weekly menu for soup last year with two variety, like Simple Soup which is for vegetarians and Bold Soup for non-vegetarians. After some time they have launched a new shop with new lay-out, new uniform of the staff, very high standard of customer service and some new products, which is named as X-FACTOR Shop. They made some changes to their site as well to get quick feedback from the customers so they can improve their customer service and finally you can find EAT on your IPHONE as well with new EAT application.

Outcome of Changes

Each and every customer has different choice. Just because of weekly menu for soup, customers can find the favourite soup will be served on which day and gradually the company will come to know that which soup is more favourite and which one is less among the customers, so they can prepare as much as require and decrease the waste and not only that but it helps them to increase the numbers of customers especially for soup. As we all know that Iphone is revolutionary product of Apple and EAT has now on Iphone so it will help to get more customers.

1.3.3 TRANSPORT FOR LONDON (TFL)

BACKGROUND

TFL was designed by the Greater London Authority Act 1999 as part of the Greater London Authority in 2000. TFL got most of its functions from its ancestor which was London Regional Transport in 2000 but TFL did not take over duty for the London Underground until 2003. TFL is organised in three main directorates and corporate services, each with responsibility for different aspects and modes of transport. The three main directorates are:

1) London Underground, commonly known as the tube. It is responsible for running London’s underground rail network.

2) London Rail, liable for

• Synchronization with the operators that offer National Rail service within London.
• London Overground.
• Docklands Light Railway: in general shortened DLR, which is the automatic driven light rail network in East London.
• London Trams, accountable for managing London’s tram network, by contracting to private sector operators, which is only, operates in South London.

3) Surface Transport, consisting of:

• London Buses: – the red bus network in whole London managing by London Buses.
• Par transit service is providing throughout London by London Dial-a-Ride.
• London River Service
• London Congestion Charge
• London Street
• Public Carriage Office, which is responsible for licensing the famous black cabs and other private hire vehicles.
• Victoria Coach Station.

CHANGES

On 23rd February 2010 TFL had expand its service on DLR with three carriage train to provide 50% more space for the passengers on train. London’s first two cycle superhighways works started on 16th February 2010. TFL has also launched cycle hire programme last year to promote cycling in the capital. The Mayor of London said the New Year will see the start of a new age of travel in London – The Oyster Age, on 2nd January, because TFL has introduced oyster pay-as-you go in all rail services in London. It means the oyster is the ticket for Londoners.

OUTCOME

The passengers are really happy to travel by DLR because it is running from South-East London to Central London and now they get more space and pleasant journey during the peak hours as well. Cyclist are now more safe because TFL has started the work for cycle superhighways and they don’t need to buy a cycle because they can hire a cycle for one week, one month or one year at very low price, which is just for security when they return the cycle they will get their money back so basically it is deposit. The passengers who are living in South and North-East London can use the national rail and they don’t need to buy a special ticket for the journey because they can use their oyster pay-as-you go.

2.1 INTRODUCTION

In this task I am going to select two organisations which are classified as bureaucratic. I will also do detailed analysis about their strength and weakness and also their position against their competitors and customers.

2.2 OBJECTIVES

• Explain about the efficiency through which the organisations are run,
• Explain about the impact of the bureaucratic organisations on their environment,
• How the organisations react to change.

2.3 Individual reports for two chosen organisations about their efficiency.

2.3.1 PUNJAB NATIONAL BANK (PNB)

BACKGROUND: PNB had started in 1895 and it has continued to retain its leadership position among the national banks, with more than 38 million satisfied customers and 4668 offices. PNB has remained fully committed to its guiding principles of sound and prudent banking. PNB has also entered the credit card and debit card business; bullion business; life and non-life insurance; and gold coins and asset management business. PNB has achieved significant growth in business which at the end of March 2009 amounted to INR 364,463 crore. Today, the bank has asset of more than INR 246,900 crore. PNB is ranked as 3rd largest bank in the country.

Competitors: Now-a-days baking sector is booming and there are so many competitors of PNB in India, like State Bank of India, ICICI, HSBC, HDFC and AXIS Bank.

CHANGES:

• PNB has started branches in small villages of India to provide basic financial service to hand-cart pullers, vegetables vendors, women and other sectors;
• It has tied up with NGOs to enlarge microfinance in North-Eastern States of India;
• It has launched PNB global credit card;
• PNB is associated with SMC Global Securities and NSBL to provide Demat and Trading account;
• PNB has started subsidiary in UK with four branches;
• It has upgrade its infrastructure and hardware which can handle a business of 6000 branches and 0.1 million terminals;
• It has recently launched Prepaid World Travel Card in three currencies (USD, Euro, and GBP).

Outcome of the changes:

• The branches of PNB are now more customers centric so the customers have easy access to the bank and they are getting better service and the bank is doing more profit.
• The bank is providing a global credit card with 60 days interest free shopping and because of that customers prefer to shop with PNB credit card.
• The customers who travel around the world prefer to use the PNB Prepaid World Travel Card instead of carrying a cash currency.
• The below table shows growth of PNB;