Organisational Planning and Control - Essay Example

?Organisational Planning and Control Table of Contents Table of Contents 2 Introduction 3 Identification and the of the s of Apple Incorporation 3 Bargaining Power of Customers With Respect To Apple 5 Evaluation of Customer Relation Management of Apple 5 Recommendations 8 Customers Profitability Analysis 8 Conclusion 10 References 11 Appendices 12 Total Number of Visitors Visiting the Apple Retail Store 12 Age Group of the Visitors Visiting the Apple Store 13 Comparison of Sales of the Mobile Handsets with Share of Industry Profits 14 Introduction Organisational planning and control forms an important part especially in the advancement and growth of any organisation. In order to accomplish desired objectives and to meet the requirements of customers, organisations belonging to this modern day context needs to adopt as well as execute effective organisational planning along with control by a greater level. Proper and advanced planning helps an organisation to frame strategies which help in the attainment of superior competitive position over its chief business market contenders. In this similar context, planning related to an organisation also helps in exploitation of the accessible resources effectually and capably. It aids an organisation to determine the set of goals assigned. Framing of strategies, policies and statements broadly depends upon the process involved within planning and control measures (Davoudi, 2009). With this concern, this report intends to select, recognise and analyse the customers having transactions with Apple Inc. This report would also entail customers’ ability influencing the company by taking into concern of examining ‘Bargaining Power of the Customers’ concerning Apple. Moreover, evaluation of the ‘Customer Relation Management’ of Apple also frames as an objective of this report. Recommendations related to customer management and generation of greater customer value would also be included within the report. Identification and the Description of the Customers of Apple Incorporation Customers frame an important part of any organisation. Apple has incorporated certain deliberate measures and strategies to attract as well as retain its existing customers for a longer period. The passing years have become quite advantageous for Apple in terms of raising greater profit margins. In this context, Apple functions differently from its peers that have given it a top priority within the competitive market scenario (Cnet, 2013). Presence of retail stores act as a benefit to acquire personal details of the customers resulting in accelerating the sales of different companies by a significant level (Cnet, 2013). Retail stores frames the best medium to interact directly with the customers comprising the potential customers also. As stated in the news report published by Cnet (2013), around 50 million potential customers visits different stores of Apple, out of which, half of them has been viewed to be the first timer with regard to the application of Apple products Apple entails prioritised strategies as a form of customer relationship. Framing of the strategies in terms of customer services, after sales customer’s feedback, making the advanced technologies easier for the non-technical people and targeting the customer’s perception helps an organisation to meet the requirements of the targeted customers at large (Cnet, 2013). In the recent years, Apple has created a brand recognition which has supported the company to survive or to sustain within the downturn market situation that entails low market share and economic crisis. In this concern, it can be affirmed from a broader perspective that the company sustained due to the presence of its strong customer base. Apple has incorporated multiple factors to derive customer’s loyalty towards accessing its broad assortment of products. Factors such as extremely advanced designs, intensive products, spontaneous user experience and effective marketing strategies have helped Apple to foster customers’ requirements (Forbes, 2013). According to Apple, its targeted customers can be mainly identified on the basis of demographic pattern. In accordance with the targeted customers, Apple includes the customer base by considering all demographic segmentations. In this context, it can be further revealed that the products of Apple are used by all age groups. Teenagers are fond of latest technologies and advanced hi-tech devices which ultimately raise the demand for Apple product by a considerable level. In accordance with the group of college goers, it has been viewed that they are fond of getting latest news and a range of advanced applications which eventually leads them towards visiting Apple store. Professionals need hi-tech products to easily handle business processes. In this regard, Apple entails a brand equity that reflects a status symbol. Therefore, it can be affirmed from a broader perspective that Apple targets at the upper level customers to sell its broad array of products (info Apple Store, 2013). Bargaining Power of Customers With Respect To Apple In order to determine customers’ bargaining power relating to Apple, it has been apparently observed that the company emphasises upon diversified product range. The company has successfully differentiated its diverse products between the business markets associated with personal computers and portable music merchandises. Apple has immensely created products that are vastly different from other products with respect to features and applications and designs. Therefore, the customers become less sensitive towards the prices with respect to the purchases of Apple products, as it is difficult to purchase a product having same advanced features and latest design. With reference to apple products, the customers’ bargaining power has been viewed to be quite low. This can be justified with reference to the fact that due to the accelerated prices or costs of Apple products, it is not possible for the customer to buy products at bulk resulting in the decrease of customers’ bargaining power at large (info Apple Store, 2013) According to the pie chart provided below, the sales and profit margin of Apple in comparison to the handsets such as Nokia, Samsung and other handsets can be better understood. With reference to the pie chart given below, sales of Apple as compared to other handsets reflect a very low margin, but reveal a higher profit margin in comparison to others. This can be justified with reference to the fact that lower sales margins reflects a higher profit return as the cost involved in purchasing an Apple product is much higher than cost of other handsets. With reference to the chart mentioned below, it can be further stated that the economies of scale is much less in case of Apple products. Thus, it can be further stated that customers’ bargaining power towards Apple products is quite low as compared to other competitors present in the business market (O’Reilly radar, 2010). Evaluation of Customer Relation Management of Apple Customers form an important part for different organisations which supports them to sustain within the competitive business market. With reference to the products of Apple, being the costliest among other products continues to foster sales in modern market. Apple products are in demand for its adoption along with execution of advanced technologies and latest designs. In this modern day context, it has been viewed that Apple has opened many retail stores that directly interact with the customers. Thus, this strategy helps the Apple team to understand the requirements of customers by a certain degree. The approach concerning customer relation management (CRM) which prevails in Apple generally involves ‘Customer Empathy Sales’ representing that the company ensures adopting considerable measures to convince the customers. Apple team takes into consideration various aspects, strategies and the policies to satisfy its huge base of customers. In order to assess the CRM approach of Apple, it has been apparently observed that the company tends to involve new customers rather than focusing upon existing customers (O’Reilly radar, 2010). It is obvious that customer’s time is valuable and need to be prioritised by any company. In this similar concern, Apple’s service centre has formed a service appointment criteria which allows the customers to resolve their problems related to Apple products on the spot. Thus, in this way, Apple is giving prime importance to the valuable time of customers that fosters an effective CRM approach (info Apple Store, 2013). With reference to considerable effective sales, it greatly depends upon the sales person. In this regard, Apple has employed trained sales persons within the retail stores to foster effective and efficient sales. Sales persons act as the first interacting agent who can ensure sales by targeting at the potential customers visiting the stores (info Apple Store, 2013). It has been viewed that Apple leads ahead with respect to its development of CRM approach. This is owing to the reason of its attractive as well as dynamic product design, effective customer service, implementation of bold strategies and attractive store design. Designs and latest applications that provides by Apple eventually made the company to build an effectual CRM. Apple still holds the business market even with higher cost attached to its different products only because of introducing innovative designs and executing latest applications (info Apple Store, 2013). Recommendations Sales strategies form an important part in supporting different organisations to enhance as well as to gain greater profitability along with profitability by a greater level. Moreover, sales strategies can help an organisation to generate greater value to the customers. On the basis of the above discussion, it has been revealed that being costliest with respect to the product; still the company accelerates greater profit margins in terms of selling quality designed products to the customers. This particular sales strategy of Apple ultimately made the company to generate greater value to the customers by a considerable level. Apple has ensured advanced measures related to CRM approach. It can increase greater value related to customers by implementing activities such as offering free newsletter. The objective of the newsletter is to provide information about the company to the potential customers. Effective measures and processes must be involved by Apples’ management team to ensure proper segmentation and identification of potential customers. The strategies related to minimization of costs can also be regarded as one of the effective strategies for apple to generate greater customer value. It is worth mentioning that Apple must adopt as well as execute certain significant measures to increase the value derived by using the products that will ultimately drive the customers to pay more for the products. Inclusion of higher technologies to attain potential customers can also be prioritised by the company for generating superior customers’ value. Thus, these recommendations can help Apple to create more value for customers (Laforge & et. al., 2009). Customers Profitability Analysis In relation to the theoretical concepts, the analysis of customers’ profitability comprises various aspects. In this similar context, the procedure of supply chain focuses upon enhancing customer’s profitability with respect to the products (Smith & et. al., n.d.). Moreover, the distribution channels also foster customers’ profitability at large. Effective distribution channels help the companies in retaining customers resulting in enhancing the analysis concerning customers’ profitability. Distribution channels incorporate certain effective practices in order to deliver the products at suitable place in appropriate time in a particular location (Smith & et. al., n.d.). In accordance with the strategies linked with CRM approach, it has been apparently observed that Apple invests substantially upon developing the tactics concerning CRM. It is obvious that strategies related to the retention of customers prove to be much useful for raising profitability at large. In this similar concern, Apple has adopted advanced and latest measures in order to retain its existing customers by focusing much upon its product design and newest applications. These particular strategies can support the company to manage its existing customers along with sustaining in this competitive landscape (Smith & et. al., n.d.). Conclusion From the above discussion, it can be stated from a broader perspective that organisation planning and control frames an important part within any organisation. In this context, effective an efficient planning helps an organisation to sustain within the competitive market scenario. Apple reflects well-planned and framed strategies that helped it to accelerate its profit margins at large. Implementation of latest applications and hi-tech technologies has supported the company to create a better brand image within the competitive business market. Sales related to the products of Apple have been viewed to generate lower margins as compared to others because of high cost It can be further concluded that the implementation of hi-tech applications and latest advanced designs have provided Apple a dynamic brand image resulting in generating greater customer value to the customers. In order to increase superior customer value, Apple needs to fulfil the requirements of the customers by delivering the products in accordance with their preferences. References Brand Index, 2012. Article From: US. Apple Genius Ads. [Online] Available at: http://www.brandindex.com/article/apple-genius-ads. [Accessed May 14, 2013] Cnet, 2013. Secrets of Apple's Customer Success. News. Davoudi, S., 2009. Framing the Role of Spatial Planning in Climate Change. The Challenge of Climate Change, pp. 1-34. Forbes, 2013. Build Loyalty Like Apple: Define Your Enemy. News Posts. info Apple Store, 2001. Retail Segment's Performance since 2013. Quarterly Results. Laforge & et. al., 2009. Sales Management: Analysis and Decision Making. M.E. Sharpe. O’Reilly radar, 2010. Apple's Segmentation Strategy, And the Folly of Conventional Wisdom. Radar: News and Commentary. [Online] Available at: http://radar.oreilly.com/2010/09/apple-segmentation-strategy-an.html. [Accessed May 14, 2013] Smith, L. & et. al., No Date. Managing Supplies and Customers. Organisational Planning and Control Lecture 5, pp. 684-711. Appendices Total Number of Visitors Visiting the Apple Retail Store Source: (info Apple Store, 2013) Age Group of the Visitors Visiting the Apple Store Source: (Brand Index, 2012) Comparison of Sales of the Mobile Handsets with Share of Industry Profits Source: (O’Reilly radar, 2010) Read More