Business Organization and the importance of marketing.

by trishismail (student)

University Degree Business and Administrative studies

Laksamana College of Business

Business Organization Assignment 1

Introduction to Business Organization

LCB/1311

University Foundation Course

Table of Content

Page

Question 1 2-

Question 2

Question 3

Question 4

Question 5 6

Reference list 7-8

Question 1

Dean: The dean controls overall activities that occur at the college and monitor all subordinates so, the dean must possess management skills and work experience.

Human Resource role: This specialist department handles all matters relating to the staff. They do recruitment: advertising, interviewing and employing staffs. They also keep records of personal details and performance.

Management role: This department handles all the activities that provide services. They supervise the maintenance of the facilities and provide reception and coordinates courier services.

Marketing role: All matters dealing with sales and marketing are handled by this department. They deal with customers’ complaints. They forecast sales and set targets.

Finance role: This department handles all money matters, that they keep track of debtors’ and creditors’ accounts. They also prepare budgets and financial reports and handle the payment of salary and wages.

Question 2

Advertising is one of the mass media intended to deliver the message to a group of audiences of readers, listeners, viewers and the most important people is the Customers. Advertising is to alert these audiences about the availability of brands including variety of products and services in the market (Curtis. A, 2011). Advertising is one of the most famous and important social trend in today’s market, it stimulates a number of different activities which includes consumption, lifestyle, economic activity models and a certain value orientation.

In today’s market, consumers are easily confronted through numerous doses of advertising in multiple media. Therefore with these doses of advertising daily, it is presumable that it will affect individualism and society as a whole (Studymode, 2011).

In Brunei Darussalam, advertising plays a big role to attract customers’ attention. Therefore, as one of the college which is now located in Brunei Darussalam, we have chosen to advertise through different types of media mainly Radio, Television, Cinemas, Phone Recharge Card, Billboards and Banners.

Despite using mass media to advertise a company or a product, it is important to look forward into two important aspects of a country which is the Economics Condition and Competitive Environment. Therefore through this we will be able to understand the overview aspects and features of the market Brunei Darussalam before entering the market itself.

Brunei has its own unique economy that covers a mixtures both foreign and domestic entrepreneurships, ruled by the government, measures the wellbeing of the population and has its own village tradition. Primarily, Brunei’s economy runs generated by the export of its main resources which is petroleum and natural gas. In Brunei, inflation rate is mainly low as the government does not charge any Personal income tax and Capital gains tax to its population and no tariffs establishment included (Travel Dojo, n.d).

As mentioned earlier, Economic condition in Brunei is fully supported by the export of its own ...

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As mentioned earlier, Economic condition in Brunei is fully supported by the export of its own resources, therefore this is measured using GDP per capita. Beside the export of petroleum and gas, small scale of its economic condition is supported by the manufacturing of primary production which includes agriculture, fisheries and forestry.

The economic performances of Brunei’s domestic banks are sufficiently capitalised and profitable therefore banks are highly liquid as more than half of its investment are deposited abroad. So in conclusion, Brunei’s economy stands in a stabilize position just like other country.

Besides understanding the economic condition, Competitive situation is also one of the important aspects to look forward into before entering the Brunei’s market.

Product life cycle.

One important concept in marketing is Product life cycle. This life cycle explains the stages of a product that goes from an introduction stage up to declining stage. Some product continues to grow where some just fall and being put off from the market section (Riley, 2012).

There are four main stages in product life cycle which can be illustrated below using a diagram (Riley, 2012).

Each stage in product life cycle has different criteria and features of its own. Details of each stage will be as follows;

Introduction stage.

This is the stage where a new product or service is being launched in the market. Both level of sales and usage of utility are primarily low. Unit costs of the product will be high as this is the first stage of a production. In order to make customer aware of this product or service available in the market, organization will invest more in terms of advertising and heavy promotion spending occurs. Pricing in this early stage is both skimming and incisive.

Growth.

On the second stage the arrival of competitors begin to enter the market as this is an expanding market stage. Sales are growing primarily fast and capacity consumption increases. As product gain market acceptance, unit costs fall with the economies of scale. Relevant strategies need to be executed in this stage such as – potential buyers are mainly targeted, organization ought to go for market penetration or better price leadership and as for the product, improvement of styling, branding and packaging will take place.

Maturity.

This is the third stage before declining stage. Under this stage, competition become rather intense and fight to conquer market share occurs therefore sales growth slowly become low. Level of utilisation and profit become high especially for high market share organization. Competitors with weak strategy will start to leave the market in this stage. Last but not least, prices and profit begin to fall slowly.

Under maturity stage, improvements and product differentiation are being implemented. Price is based according to the competitor pricing. Last but not least, persuasive advertising are being use to attract new users and customers to the market, keeping the existing customers along.

Decline.

The last stage under product life cycle is Declining stage. Sales, Profit and Cash flow begins to decline and fall slowly in this stage. Number of competitor leaving the market become high and capacity utilisation needs to be find alternative product to market.

Despite declining, a business can still implement relevant strategies such as harvest the product by spending less on the marketing product, cut price to maintain competitiveness and retain loyal customers by providing numerous promotion for the product and services.

Segmentation.

As stated by (Riley, 2010) market segmentation is the process of dividing group of large number of customers according to their interest, taste and preferences. This is to specifically identify the main needs and wants of the customers. Through market segmentation, a company is able to target its customers with different categories.

Segments are mainly measured using sales volume and sales value. It is merely important for an organization to understand the importance of market segmentation as it helps an organization to produce products or services that gives benefits to their customers, the usage of right mass media to attract customers attention and lastly to provide a good place and time to deliver the product.

Four methods an organization should look forward into for market segmentation is as follows;

• Geographical

• Demographical

• Behavioural

• Psychographic

Strategy.

Advertising strategy is to gain customers’ attention at the same time to communicate the right ideas about the products and services. As quoted in (Poetofcolour, 2011) “One of the major goals of advertising must be to generate awareness of the business and its products”.

Two main key for advertising is to;

• Notify customers about the features and benefits that the products or services have got to offer to the customers. This may also help to build primary demand for the customer.

• The second key for advertising strategy is Influence customers, building brand preferences and changing their perceptions about the products and services. This technique is important in terms of building demand in competitive market.

Question 3

Pricing strategy.

There are three major approaches of pricing strategies used to setting up prices;

Customer based pricing.
Cost based pricing
And, competitor based pricing.

For this college it is best suited to use Customer based pricing as prices are determine according to what an organization believes the price meet the requirement the customers are prepared and be willing to pay and spend on (Riley, 2012).

This pricing strategy does not simply means setting price according to the price customers are willing to pay solely, it also reflects the value of products according to customer’s perspective (Investopedia, n.d).

Two method of setting price under customer based pricing which is as follows;

Penetrating price – usually used in order to increase market share of the product. This can be use to increase price after the objectives are achieved (Riley, 2012).

Skimming price – a business will skim their prices before competitors arrive into the market. Relatively, prices are set higher when new product is launch in the market (Riley, 2012).

Question 4

Lecturers will be paid on a fixed payment basis. However, different position would be paid with different amount of money according to the profession and qualification of the lecturers.

Fixed payment

It is a fixed amount of money, usually paid on a monthly basis, in exchange for services that may be set at a fixed hourly rate, but this amount does not vary from month to month on any basis

Commission is a sum of money compensated to an employee upon accomplishment of a task -typically selling a set of goods or services. Employers commonly use sales commissions as an encouragement to maximize employee’s productivity.

Twyla Dell writes of motivating employees, "The heart of motivation is to give people what they really want most from work. The more you are adequate to provide what they want, the more you should expect what you really want, namely: productivity, quality, and service." (An Honest Day's Work, 1988)

A positive motivation philosophy and practice should improve productivity, quality, and service.

Motivation helps people:

accomplish goals;
achieve a positive mindset;
develop the ability to change;
improve confidence and skills,
handle individual progress and guide others with theirs.

Question 5

A leader is the person who leads workers (Samson & Daft, 2009). A leader is someone who has a vision, knows what to achieve, has a commitment to achieve something and has the skills to make it happen (Reh,n.d). The main vision of a leader is to successfully achieve its company’s goals and fix anything that ought to be fixed (Reh, n.d).

Leadership is commonly determined by the qualities, traits and behaviours of a leader. What traits indicate quality leadership and which leadership theories are similarly parallel to it. (Puffer and McCarthy, 1996, p109)

Summary of management styles

http://www.tutor2u.net/business/gcse/people_management_styles.htm

Deans are required to possess the appropriate knowledge base, skills and abilities to perform adequately in this demanding role. The skills needed to adequately perform the various duties assigned to a college dean are not exhaustive and remain changing as the academic environment evolves. One commonality and requirement among all deans is the capability to be a leader. Lack of academic preparation and motivation among students and strained budgetary resources are main concerns of deans across institutions. Deans must be able to deal with these situations in the future, as well as the changes that will constantly arise across campuses both within the institutional structure, as well as with the faculty, staff, and students. Bragg (2000) states that deans should "have finely tuned human relation skills, creative management and democratic leadership” (p. 75).

Reference list

Question 2

Dr. Anthony Curtis, Mass Communication Dept., 2011, Viewed: 3th December, http://www.uncp.edu/home/acurtis/Courses/ResourcesForCourses/Advertising/AdvertisingWhatIsIt.html

Studymode, Apr 2001, Viewed: 3th December, http://www.studymode.com/essays/Advertising-Affects-Our-Society-31637.html

By: EconomyWatch, Date: 14 October 2010, Viewed: 3th December, http://www.economywatch.com/economic-conditions/

Investopedia, Viewed: 3th December, http://www.investopedia.com/terms/e/economic-conditions.asp#axzz2DvBpdwXP

IndexMundi, July 26, 2012, Viewed: 3th December, http://www.indexmundi.com/brunei/

Viewed: 3th December, http://www.traveldojo.com/brunei/economy/

Jim Riley, Wednesday 24 October 2012, Product - the Product Life Cycle, Viewed: 3th December, http://www.tutor2u.net/business/gcse/marketing_product_life_cycle.htm

Viewed: 3th December, http://www.investopedia.com/terms/m/marketsegmentation.asp#axzz2DvBpdwXP

Viewed: 3th December, http://www.marketsegmentation.co.uk/segmentation_tmsc.htm

Viewed: 3th December, http://www.buzzle.com/articles/successful-advertising-strategies.html

Poetofcolour, 01/31/2011, Viewed: 3th December, http://www.scribd.com/doc/47843805/Advertising-Planning-strategy

Rizwan Amjed, March 9, 2010, Viewed: 3th December, http://rizwanamjed.hubpages.com/hub/Objectives-of-Advertising

Viewed: 3th December, http://www.dfat.gov.au/geo/brunei/brunei_brief.html

Viewed: 3th December, http://www.bruneidirecthys.net/about_brunei/industry.html

Viewed: 3th December, http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-is-market-segmentation

Question 3

Pricing - Pricing Strategies, Jim Riley, Wednesday 24 October, 2012, Viewed: 3th December, http://www.tutor2u.net/business/gcse/marketing_pricing_strategies.htm

Viewed: 3th December, http://www.wisegeek.com/what-is-a-bank-giro-credit.htm

Question 4

Viewed: 3th December, http://law.yourdictionary.com/salary-fixed

Viewed: 3th December, http://jobsearch.about.com/od/jobsearchglossary/g/comsission.htm

Question 5

Leadership qualities best suited for a dean, Viewed: 3th December, http://www.newfoundations.com/OrgTheory/DiFronzo721b.html

Viewed: 3th December, http://www.texas-quality.org/SiteImages/125/Body%20of%20Knowledge%20(BOK)/Quality%20Leadership.pdf