Talk about the aims and objectives, ownership, location of the company and the activities of 2 companies. And I chose Chrissie D's and Richer Sounds.
Introduction:
For this piece of coursework, I need to talk about the aims and objectives, ownership, location of the company and the activities of 2 companies. And I chose Chrissie D's and Richer Sounds.
Richer Sounds
Aims:
Long - term goals of a business. Keeps the business moving forward.
Aims of Richer Sounds:
There are many aims of Richer Sounds that are to:
* Provide fantastic service and value for money.
* Reward staffs depend on their work done, so they have many colleague benefits and bonus scheme on offer.
* Be fair to every staff and customers.
* Make profits- a business can't survive without making profits, and this is the main aim.
Objectives:
Objectives are the targets that help firms to achieve their aims
Objectives of Richer Sounds:
* Open four to six stores in the coming year- more stores they have, more people know about the company.
* To sell as much products as they can.
* Keep the business fun, so the customers will always come back.
* Keep the level of the excellence of customer service over 90%, so they won't get complains at all.
* Control the price of their products, they can reach their budget level and make the customers that's a fair price.
Ownership of Richer Sounds:
Richer Sounds started off as a limited company, but it changed to an unlisted public company since 1990.
They became a limited company in the first place because the company will be protecting by limited liability.
(Limited liability restricts the financial responsibility of owners of the business to the amount of the money that they invested.)
Richer Sounds requirements or liability for a public limited company are stricter than those for a private limited company.
To be an unlisted public company, they have to:
* File full accounts.
* Have their accounts audited.
* Hold an annual general meeting.
* Have at least two directors and one secretary.
* Have a minimum issued share capital.
* Abide by all the legal requirements under the various Companies Acts and the Finance act.
Advantages of being an unlisted public company:
* The owners of the company are protected by limited liability.
* Public limited company can sell their shares, and that can help raise the capital for the company, they can also use the capital to develop new products.
* Company benefit from continuity. If one of the shareholders quit or died, they can sell his/her shares to other people, so the company can carry on.
Disadvantages of being an unlisted public company:
* The company needs to write some reports every year. For example: an Annual Report with the financial information about the business.
* Most of the public companies have their affairs on newspaper and television. As soon as they can get good publicity, they also get bad publicity.
* Owners of the company will need to give out more money than starting their own business of being a sole trader.
Location:
Richer Sounds' first store was at London Bridge Walk, and in December 2002, Richer Sounds had totally opened up 48 stores in UK and 2 stores in Ireland. The locations are as follow:
* 44 in England.
* 2 in Scotland- Glasgow and Edinburgh.
* 1 in Wales- Cardiff.
* 1 In North Ireland- Belfast.
* 2 in Republic of Ireland- Dublin and Cork.
They use two principles to choose the new locations for their stores:
* There must be sufficient potential customers.
* The store must not be too near another Richer Sounds store.
How they choose their properties:
* It doesn't include having large, fancy and expensive stores.
* Their stores are small.
* It won't be found in expensive shopping centres.
* They are nearby parking.
* The sites are easily visible.
The aim is to find a site in an inexpensive area, on an easily found route and preferable in a student area too. They also prefer to buy freehold sites, because this saves money, too.
How staffs contribute to their location:
Staffs are encouraged to suggest a new location for Richer Sounds' new store, if any of them found a suitable place that fits the demands; they will receive £250 for reward.
Two factors influenced their choice of location for their warehouse:
* The cost - a warehouse should be big enough to save a lot of ware, and a big place will be so expensive to rent or buy. Therefore the cost of the location is a problem.
* Accessibility to motorway networks - because warehouse contains all the wares, and to deliver them quick, they will need the warehouse to be near the motorways.
The business activity of Richer Sounds:
Richer Sounds is in the retail business. Their stores sell hi - fi separates, home cinema equipment, TVs, DVD players, etc. Details of all the products that they sell will be shown on the web site of Richer Sounds.
They sell their products in three different ways:
* Direct from their stores.
* By mail order.
* Through the Internet.
Richer Sounds have many competitors who also sell the same products. However, most of them are large chain stores, for examples: Comet and Dixon, who also sell other products. The difference is that the products that Richer Sounds sells are different to normal shops; they employ people who are knee on hi - fi equipments and also train them, so that they are very knowledgeable on their products. That's meant the products that Richer Sounds sells are higher quality than the others.
Change to their activities
Richer Sounds are proud of themselves of being creative, but they still want to improve themselves, and they make some changes from outside the company (external changes), and others from inside (internal changes).
External changes that affect them and what they do
The main changes and what they do are listed below:
* Technological changes and developments.
* Customer tastes and fashions change.
* Investigation problems.
* Methods of selling.
Internal changes and what they do
They never stop trying to improve the business in all sorts of ways.
* Ideas from staffs.
* Suggestion evening - they always encourage their staffs to give suggestions about the shops, that's why they decided to have a meeting group in the evening, everyone who attend the meeting will be paid £6.
* Consulting colleagues.
Chrissie D's
Aims:
There are few aims for Chrissie D's that are to make as much profit as possible, provide the best quality, improve the quality of their shoes, provide the best service and try to get the best supplier which sells the shoes for less and good quality.
Objectives:
The main objectives for the businesses to sell more different type of shoes than their competitors provide more different services than the previous year Produce as much new goods or new service as possible.
Ownership:
Own by: Mr Steven Yong and Mrs Ro Ro Yong
Type of business: Shoe shop (services sector)
How long have the company had been open: About 18 years
Ownership: Partnership then change to Private Limited Company (A company with protection of limited liability)
Chrissie D's started off as a Partnership company, but after Mr. Steven Yong and Mrs. Ro Ro Yong married, they changed it into a private limited company. Only family members can join the company.
Benefit of being private limited company:
* The company will be safer- most of the private limited companies are family firms, so that only family members can be shareholders.
* Even only one person can easily manage the company- there is no fixed amount of profit that has to be invests.
* Protection of limited liability- if the company owns other companies' money; they only lose the amount of money that they invested.
* Bank will be more willing to lend money- the company is protecting by limited liability.
* Share cannot be transfer to anyone, unless all of the shareholders agree.
Disadvantages of being private limited company:
* Limited company has to comply with more regulations than any others- they have to register with the Registrar of Companies; large companies must have their account audited by the accounted.
* Owner is not allowed to choose a name that is the same as other company- suppliers or customers might get confuse.
* The proportions of the shares need to be carefully thought out.
Location of Chrissie D's:
Address: 42Whalebone Lane South Dagenham Essex
Benefits of the location:
* It is a residential area.
* That is the only shoe shop in that area.
* People can reach the shop easily.
Disadvantages of the location:
* The shop won't be too popular- people will only know about the shop if they leave around that area.
* Hard to find other new providers for the shoes.
The business activity of Chrissie D's:
Chrissie D's is also in the retail business. Chrissie D's mainly sells shoes, shoe polish and socks, but for earning more money, they also sells bags that suits some of the shoes.
To improve the shop, Chrissie D's did some changes in the shop:
* Sell more different type of goods.
* Improve the design of the shop.
* Ask for suggestions from customers and friends.
* Look for more suppliers.
Although Chrissie D's ...
This is a preview of the whole essay
* Hard to find other new providers for the shoes.
The business activity of Chrissie D's:
Chrissie D's is also in the retail business. Chrissie D's mainly sells shoes, shoe polish and socks, but for earning more money, they also sells bags that suits some of the shoes.
To improve the shop, Chrissie D's did some changes in the shop:
* Sell more different type of goods.
* Improve the design of the shop.
* Ask for suggestions from customers and friends.
* Look for more suppliers.
Although Chrissie D's try to improve their quality and earn more money, but they still keep their principle of not selling trainers.
As soon as there is not much shoe shop around Whalebone Lane, Chrissie D's won't have too much competitors; till now, the only competitor of Chrissie D's are from Ilford, 'Linzi'.
They Compete on:
* Price of the shoes.
* Type of shoes.
Although Linzi got more different type of shoes and the decorations of the shop are better, but Chrissie D's still get more customers, because the price of their shoes are lot cheaper than Linzi.
Comparison
Aims
Between the two contrasting businesses there is similarities and differences in the aims such as the similarities are that both businesses wants to provide excellent service than their rival and also to make profit as what most businesses would expect to make. The difference is that Richer Sounds like to reward their staffs for a good work whereas Chrissie D's don't have any staffs because the owner is capable of handling the business by himself
Objectives
It is mainly similar has both business want to sell better quality products and cheaper than their rivals.
Ownership
The ownership of the two companies is totally different as Chrissie D's ownership is private limited company and Richer Sounds' is unlisted public company and I personally prefer to have private limited company because there is no boss of your own and you are in charge of everything
Activity
Entirely different to each other because Richer Sounds' sells products like all electronical items whereas Chrissie D's only sells shoes
Location
Richer Sounds' location can be know better than Chrissie D's location as Richer Sounds is located in the main road where people passing through can look at it whereas Chrissie D's is in a residential area where the people living their will only know about it
Improvements to both businesses
Richer Sounds
Aims and objectives
For their aims and objectives I think that Richer Sounds should try to be know by customers by using many techniques such as advertising on the bill boards
Ownership
It is good to be unlisted in the public company because shares are not sold and the owner stays the same.
Location
It would be better for Richer Sounds' if they continue to purchase commercial properties on the main road and turn it into their shop, which will attract more customers.
Activity
I think all the items that Richer Sounds' sell is ok but if they can try they should sell all types of parts for electrical items
Chrissie D's
Aims and Objectives
I think Chrissie D's aims and objectives are alright for a retailer but they should also should aim to be helpful to all customers and try to meet all the needs of their customers
Ownership
It is good to be private limited company because the owner is the boss and also that it may not need any staff and 1 person can run the business which makes all the profits go to him/her
Activity
As Chrissie D's has recently started selling school bags they should also sell school clothes because as it is a residential area every children will need to buy their school clothes and so they can just go the Chrissie D's
Introduction:
In part b of this coursework, I need to talk about three functions from one of the company that I chose for part a, and I chose the company Richer Sounds to talk about. I have chose marketing, administration and customer services
Marketing
Richer Sounds' marketing director is Claudia Vernon. She works with her colleagues to look at a wide range if activities which can be grouped into four main areas.
The main activities for Richer Sounds' Marketing department are:
- Marketing
- Design
- Point-of-sale
Marketing
Marketing is about analysing all the feedbacks from the customers which helps the company to decide on what products to introduce and what promotions to give.
Design
In this section the colleagues design in-store catalogues and all their advertisements, which are press on local newspapers and specialist magazines. There are about 11 in-store catalogues produce each and every year
Point-of-sale
POS looks after all the shops of Richer Sounds to make them look very interesting and lively, this also includes all the fixture and fittings plus the lighting and flooring.
It is also responsible to keep every shop clean and tidy to meet the needs of all the customers.
Richer Sounds' website
This is another responsibility for marketing which covers every area of the website such as:
- The design
- Checking the navigation
- Sending out e-mails to various customers who have signed in to the Richer
Sounds newsletter
- Analysing the use of the site
Richer Sounds' key customers
Before when Richer Sounds started they only sold audio separates and so at that time the key customers were identified as only male aged 16 - 30. Today it has so much improved in technology wise and so they now sell many different items, which are brought by a range of customers - both male and female of all ages.
The needs of Richer Sounds' key customers
The key customers want:
- Better quality products for cheaper price
- Real information on the products
- Better looking stores
- Nice and friendly customer service
How the company knows the needs of their customers
Company constantly takes market research, which helps them to know the needs of their customers. There are many ways in which the company does a market research such as customer questionnaires which are given out when a customer purchases a product, they also obtain information by their newly upgraded computerise system and they also ask specific customers how they found out about their business
How they meet their customer needs
Richer Sounds aim to do this in the following ways:
- Producing the informative, fun and friendly in-store catalogues
- Encouraging the feedback from the customers and all the colleagues
- Always trying to find out the mistakes and what improvement could be
made with it
The use of I.T. in Marketing
- To produce all the documents needed such as newsletters
- So they will be able to read customers' data
- To contact colleagues quickly by using email and other internal software
- To design the catalogues using special software's
Customer Service
Customer service is very important to Richer Sounds because they have built their reputation on offering value for money on products and superb customer service.
Everyone at Richer Sounds is involved in customer service - at every level. To them customers are the most important people
COLLEAGUES INVOLVED IN CUSTOMER SERVICE
John Clayton is the director in charge of the customer service department. Customer service support colleagues and the call centre both report to John. John is also in close contact with Jez Avens who is the director of all stores. They keep in contact all the time because they think that customer service is so important.
Perry Sillett is their Service Director. He is in charge of their entire service and repairs department. Perry and his colleagues (engineers) are very important as they enable them to offer excellent after-sales service to all their customers.
All their support colleagues are trained to provide excellent customer service to both of their external and internal customers.
SUMMARY OF RICHER SOUNDS CUSTOMER SERVICE
- Richer Sounds allow customers to buy large amount of their goods as wholesale. They will also provide credit account facilities.
- Provide order line for free in store catalogues to customers, but phone calls are charged at local rate.
- They guarantee they will have the lowest prices.
- A call centre to answer general enquiries from customers - if customers have any problem or questions, they can phone the call centre and colleagues of Richer Sound will help them by giving out technical information.
- If customers are not happy with the product, they are allowed to refund within 14 days, but it should be in its original cover and works the same as before.
- All of the old display, mail order returns or old-service products will be clearly labelled as GRADED products. All new products will be labelled as new guarantee.
- Every time they receive customers' questionnaires, which were returned, they will pick 50customers and give them £20 vouches.
- Reputable, brand new products by known manufacturers, all sold with the manufacturer's warranty in addition to that provided by Richer Sounds.
- Demonstration rooms are set in most stores. Richer Sounds always advice customers to book in before they go to the store, because if they did the booking, special colleagues will be available to give ideas and better advice as a assistance. They also allow customers to bring their own tapes, VCDs, DVDs or hi-fi systems for comparison.
- To make sure the products work finely, customers are allowed to try their products before they buy them.
- Special services like giving out free things are available in Richer Sound. For example: giving out free umbrella when it is raining.
- Free delivery will be provided to disabled customers.
- Employ mystery shopper to check the quality of their service in our stores and over the telephone. Except that, mystery shopper will also visit Richer Sounds competitors, so they will be able to compare themselves to others; also to learn how to improve their services.
- They have colleagues in store that give customers services and ideas, and they named themselves as a 'listening card' that they will listen and help every customer.
- All friendly and knowledgeable colleagues are trained specially to help customers to solve problems quickly.
- All repairs will be cover within 3 months; if the repairs aren't finish within 5 days, colleagues of the store will contact customers by phone or mail, and they will be offered a free loan unit.
Use of I.T. in Customer Services
Customer Services uses I.T. to increase the follow:
- Customers of Richer Sounds will be able to find out details about their product on Richer Sounds' web site. Customers can order the goods through the web site as well.
- Customers can contact Richer Sounds' Customer Services department if they have any problems by sending them e-mail.
- Colleagues can check stocks on computer. If there's any product run out of stock they will notice it by checking on the computer, and also immediately they will know is that product going to be deliver soon.
In year 2002 Richer Sounds upgraded their web site, which enables them to:
- Improved the web site can help customers to order goods, look through easier.
- Have more and better information of their products, which assist customers to choose something that they want.
- Available colleagues to look through the web site or contact other stores.
PURCHASING DEPARTMENT
Purchasing department of Richer Sounds is responsible of buying stocks from the suppliers and sells in shops. Customers will be able to know more about their products by reading the in-store catalogues or read through the Richer Sounds' web site.
Nick Halliday is in charge of the Purchasing Department in Richer Sounds. He works with all the colleagues that are in his department to help the company to reach their aims. He also works closely with Steven Parker, the director of Sales Department.
There are quite a few hard jobs in Purchasing Department:
- To forecast which products will must of the customers buy coming this 2 to 6 months
- To set good prices for their products. That price must be able to cover their costs with profits, customers should be happy with that price which brings them to the shop, etc.
To do things like above, colleagues in Purchasing Department have to do a lot of research, and it is a very hard job as well.
Responsibility of Purchasing Department in Richer Sounds
The main responsibilities of Purchasing Department are:
- To check the delivery booking form. Every time suppliers deliver some stocks, colleagues must check the delivery booking form to make sure that they received the right amount of stocks.
- Liaising with Marketing Department about adding pictures of their products on to the in store catalogues.
- Chasing up late deliveries from their suppliers.
- To update the stock database. Every time there are new stocks in, colleagues must renew the data of the stock database.
- If there are any stocks that are not up to standard, they have to return them to the suppliers and ask for replacement stocks.
- Make sure that there are enough stocks in store. Some of the products might sell faster then the company receive new stocks, so colleagues have to replace them as soon as possible.
- Order stocks from suppliers.
- To check the prices of their competitors. If their competitors are selling the same kind of goods but cheaper prices, colleagues have to change their price as well.
- Contact the Services and Repair department when there are some goods that are returned by customers to repair.
- To keep good relationship with their suppliers, colleagues will have to travel long distance to different suppliers to do that, because suppliers of Richer Sounds are all over U.K. and Europe.
Warehouse and Distributions in Richer Sounds
Solomon Essah Essel is the director of Distribution Department. Solomon and colleagues in his department are responsible of the storage of the warehouse and distributing stocks to different stores.
What will they do after receiving stocks?
After Purchasing Department order stocks from supplier, the Distribution department will receive a phone call from the supplier asking when they should delivery the goods. After noting down all the details, colleagues will make a booking form, which includes:
- Name of supplier
- When will the delivery be (date and time)
- What kind of products
- The quantity of products that shall be delivered
The booking form will then be faxed to the Purchasing department; colleagues of the Purchasing department will then read through the form, and if they agree with the delivery date and time, they will make a copy of the booking form and send it to a company called Two Way, they are responsible for all the deliveries of Richer Sounds.
Once the delivery has arrived, colleagues will then check it against the delivery note, which comes with the goods. After every thing is finished, and the goods are up to standard, colleagues that are responsible will sign a note, also the driver that delivered the goods will countersign. Two Way will then make a GRN (Goods receipt note), after it is done, they will then fax it to Richer Sounds' Stocks Control department; and the Stocks Control Department will contact the Purchasing department and tell them if there are any deliveries not up to standard. Two Way will then enter the details of the goods on to the computer system, which is linked to Richer Sounds' system as well.
How do they store their goods?
Richer Sounds' warehouse was located at the distribution park in the North West with good motorway links. There are security guards with dog everyday, protecting the warehouse from robbing by people. Also all conveyances have to show a permission note before they are allowed to enter the warehouse.
CCTV secures the whole place with 24-hour recording, BT Red care, 24-hour ADT security monitoring and 24-hour fire sprinkler system monitored by the national fire services. The warehouse is open 24 hours, Sunday to Thursday; but on Friday to Saturday, the warehouse won't be open at night.
The warehouse is 7,500 sq metres, which 75% were covered by racks. The rest, 25% are floor with out racks. Normally 99% of racks are full of stocks, because of the large amount of stocks that they ordered every time. For help to save travel time of warehouse colleagues, Richer Sounds normally store products, which will sell faster at the front racks of the warehouse. Every time they need to move the stocks, they will use the electric forklift trucks, so it won't waste a lot of time on moving stocks as well; electric forklift also create less pollutions. There is a large wheeler bin that use to place unwanted packaging. Every time it was filled up, it will be taken to a place where it was connected to a lift, and through the lift it will move to a hopper.
The hopper was compressed into a large skip, which are use to put the unwanted things, and they will be used for landfill, except cardboard and boxes are put to recycle.
How do they distribute their goods into different stores?
Every Friday, every store will send out a list of what do they need to the Store Operation. Then colleagues will check through the list and distribute the stocks according to the list. Except that, they have to renew the information given out by the stock database as well, and this is a very important job.
To deliver goods to each store, they will have to send a 'store pick list' which says what stocks does each store want to the Two Way. Then the next Tuesday and Friday, Two Way will start their delivery to each store. Each store has their own specific time of when will the goods arrive, that means colleagues from the stores will know when to ready to collect stocks every week and keep them safely. Except that, stores can also require for 'emergency deliveries', which means they will received the stocks within 1 to 2 days.
If there are any changes on the deliveries, stores' colleagues will notice it by receiving an electronic internal invoice from the Distribution department before the day that the goods arrive. After receiving the stocks, colleagues will once again check did they receive the right amount of goods and is there any of them not up to standard, if there is, they will send a notice to the Distribution department to get a replacement.
Uses of I.T. in Purchasing, Distribution departments and Warehouse
I realise that checking stocks, sending notices are repeated a lot of time and they are very important, so I think I.T. must help Richer Sounds a lot. Below are how they use I.T. to solve a lot of problems:
- The main use is to renew the data on the stock database. Although every shop can read through the stock database, but only stock control and distribution departments can change the data.
- Purchasing department uses I.T. to send order to their suppliers. That wills save a lot of time.
- Contact other department. Since Purchasing, Distribution departments and the Warehouse need to contact each other all the time to exchange information, so they will normally send e-mail, which will once again save a lot of time.
How do Marketing, Customer Services and Purchasing Department work together and help the company to achieve their aims?
- Marketing informs the purchasing department when they find out that there is any local competitor that is cheaper, and the purchasing department will lower their prices to the lowest they can. Through this way marketing works with purchasing.
- The questionnaires, which are returned to marketing by customers, are also sent to the purchasing department. If the customer specified his/her needs, then purchasing department can order it.
- Customer services contact with purchasing if there are damaged products so that the purchasing can ask their suppler for replacement.
- After marketing department set the questionnaires for their customers, they will send them to customer service, and customer service will give them out to customers.
- Marketing department will ask for pictures of Richer Sounds' good from purchasing department, and insert them in to the in-store catalogues.
How do they reach their aims?
By working together, these are how they help Richer Sounds to reach its aims and objective:
- To make their customers happy, purchasing and customer service make sure that they repaired the damaged products and order products that their customer requested, on time.
- Purchasing and marketing make sure that they got the cheapest price in their stores, so that there will be more customers.
- Marketing make sure that they make a best in-store catalogues that customers can get use of
- Marketing make the Richer Sounds web site as good as they can, so that customers can get details or information that they want from it.
- Purchasing finds the best contacts from their supplier list, to purchase all the audiovisual home cinema products, which can be cheaper than their competitors.
Introduction
For this piece of coursework, I need to talk about the communication within a business, and I chose the company Richer Sounds to write about.
What is Business Communications?
Firstly, communication means the process of exchanging information or ideas between two or more individuals or group. By reading that sentence, we know that business communication means exchanging information within the business or outside the business.
Ways of Communications:
There are a lot of different kind of communications, oral communication, video communication, written communication and graphics communication.
Oral communication:
Oral communication means communicate by talking to each other, there are few different methods to use oral communication.
* Telephone conversation-talking to each other through the telephone.
* Meeting- meet up the person that you want to communicate with and talk face to face.
Benefit of oral communication:
Communicate by talking can easily get each other meanings, so that won't mix up things easily.
Disadvantage of oral communication:
Usually oral communication with waste people a lot of time, because if people start chatting, they will non stop talking other things until someone stop them, that's why it waste a lot of time.
Written communication:
Although most of the people are using telephones now, but written communication is still used in all types of business, despite the widespread use of information technology. It can take several forms.
Type of written communication:
* Letter- people can write letter than post I to each other, this is the most original written communication, but the disadvantage is it takes long time to arrive.
* Fax- for some important information, we can fax them out to each other, but the problem is you need to have a fax machine and your partner should have one too, and the words won't be so clearly.
* E-mail- on my opinion, I think e-mail is the best in written communication, because after you send the information out, it won't be like fax that the words were massed up, it will stay how you type, but the thing is you and your partner should have a computer and a e-mail address, but for now a days, having a computer is not that expensive.
Business Communication at Richer sounds:
At Richer Sounds they use a lot of different communication methods to keep in touch with people outside the company (suppliers, customers) and inside the company.
They also believe that communicate in a good way is so important.
- They don't use the term 'head office' - they are afraid that they will confuse the people by using the term 'head office', that's why they prefer to use 'central office' and 'support department'.
- They don't use the word 'part - time' - to describe people that don't work in Richer Sounds fully, they use the term 'career key timer'; because they think that using the word ' part - time' will imply them that they are only 'partly' committed to working for Richer Sounds.
- They never approach customers by saying 'Can I help you'.
Above are only four of the example how they use communication in Richer Sounds.
Internal Communications
In Richer Sounds, communication may be sent:
a) From directors or senior manager to colleague.
b) From one department to another.
c) From colleague to directors, senior manager, etc.
Example of communication from directors or senior managers includes the following:
* Financial documents.
* The monthly video.
* The weekly reports.
Example of communication between departments:
* Finance communication with all departments by sending out budget statements.
* Purchasing, stock control and the warehouse.
* Service and repairs liase with Purchasing.
* The stores communicate with central office.
* The stores request from Marketing.
* There are regular communications between the stores, Store Operations and Purchasing.
* There are very close links between Operations and Customer Service in relation to customer service feedback.
* Stores Operations are in regular contact with IT department.
* Marketing are in regular contact with Purchasing.
* Marketing are also in contact with Stores Operations.
Example of communications from colleagues to managers:
* Their suggestion scheme.
* Their training seminars.
* Each level of the business has a Colleagues' Representative.
* Store visits.
* Their career-counselling scheme.
* The Richer Way magazine.
* Their Colleague Attitude Survey.
* Out-of -Hour's meetings and group holidays.
* Home telephone number.
External Communication
The shop obviously needs to keep in touch with their supplier and customers, and that's external communications.
Communication with suppliers
The Purchasing Department and Warehouse colleague from Richer Sounds are mainly involved with the suppliers, and they will use either phone fax or e-mail (Oral and written communications) to communicate them.
Communication with customers
* The main communication is face - to - face, when customers visit their stores. (Oral communication)
* They communicate information about their products - through the catalogues or customers can also phone the call centre. (Written, oral and graphical communications)
* All customers who make a purchase in their stores are given a till receipt customer questionnaire. (Written communication)
* Customers with complaint are encourage to write in. (Written communication)
* Sales assistants and engineers receive a financial bonus. (Written communication)
* Customers can complete their 'We are listening' cards.
* Customers can obtain details about Richer Sounds. (Written, graphical communications)
* Customers can telephone their free phone number. (Oral communication)
* Customers can obtain details about Richer Sounds. (Written, graphical communications)
* Their Service and Repairs department offers all customers after - sales support.
* Customers can look for what they want through Internet.
After doing this part of my coursework, I found out that Richer Sounds mainly uses written and oral communications.
How to improve Richer Sounds business communication:
* They can ask customers for their home addresses, so if there is any new product out, they can send the information to them; they can also send catalogues to customers. But some methods of communication are faster than others. Electronic communications such as fax or e-mail will always be better.
* They can make a 'fast post box' which can let customers drop their ideas or complains through that.
* Richer Sounds is a big company, so communications inside company and between company and the customers will be quite confusing and difficult. I suggest them to have a responsible colleague in every department to respond the communication, for example: answering the phone. Of course they have to find out the right information before they respond, and this is quite a hard work as well, but doing that can make the company run better without confusion.
* They can have more advertisement on televisions and making posters as well. Customers won't look for the information themselves if they don't know there is any profit of buying Richer Sounds products.
Introduction
All business might fail to reach their aims, and one of the reasons is they were affecting by external influences. For this part of the coursework, I need to talk about the external influences and how they affect Richer Sounds and Chrissie D's.
Richer Sounds
The main two external influences that affect Richer Sounds are:
- Action by business competitors.
- Changes in economic conditions.
Environmental constraints also effect them - but not as much problems cause by industries.
Richer Sounds business competitors
To offer the best value possible and the best customer service, Richer Sounds monitor their competitors in three ways:
- Each store has to check the prices of competitors.
- From time to time, they carry out official 'benchmarking' exercises - check the
prices that advertised by their competitors and compare with themselves.
- Their mystery shoppers also visit their competitor's stores - to check their
customer service and compare to themselves, then improve.
- They also offer 'price beats' in there in - store catalogue.
Since Richer Sounds is a U.K. based company, so it won't have other international competitor, but it has a lot of different national competitors in U.K. such as:
- Dixons
- Comet
- Curry
- PC World
Economic changes that affect Richer Sounds
Richer Sounds prefer interest rate as low as possible because:
- The bank charges are cheaper.
- Customers usually have more money to send.
- Customers may be prepared to spend more.
That mean the increase of the interest rate will cause problem for the company. To solve the problem, they have to sell more goods.
Some more external problems that affect Richer Sounds
- Changing prices - if the supplier's prices increase, Richer Sounds will need to
increase their prices too.
- Changes in exchange rate - Richer Sound buy large amount of stocks from other
countries, so if pound is weak, they will need to pay more.
Environmental constraints
Although the business of Richer Sounds doesn't cause any air pollution or water pollution, but they still cause problem.
However, they try to be environmental friendly; to be environmental friendly, they do the following:
- They are aware that their customers, colleagues and passers-by could be affected
by noise pollution.
- If a customer wishes to listen to a system, they use their special demonstration
room.
- They give the old Midi systems they receive to charity.
- They try to keep waste to a minimum.
- At their warehouse, they use electric forklift trunks (to prevent pollution).
Chrissie D's
There are a number of influences that will affect Chrissie D's business
Business Competitors
Chrissie C's is a shop which mainly sells children shoes, the reason is the boss of the shop realises that the shop was located in a residential area, and in this kind of area children shoes are more important than adults'. Also in Whalebone lane there is not much shoe shop that sells children shoes, that's why the only competitor of Chrissie D's is Linzi, but Linzi doesn't sell a lot of children shoes; although Linzi mainly sell ladies' shoes, but it still effect the business of Chrissie D's
How does Linzi affect Chrissie D's:
Linzi may bring out more different shoes with cheaper prices. That's mean if Linzi lower their prices: Chrissie D's also need to lower their prices to attract customers. To know more about how Chrissie D's over come its competitor Linzi, I did some research on their customers:
- Chrissie D's have wider range of children shoes.
- Their shoes are cheaper than Linzi
- Chrissie D's have been in Whalebone lane for more than 18 years, so customers trust the shop a lot.
Chrissie D's is a local company in Essex. Since Chrissie D's is a small company, and there is no other shops, so only local shoe shops will effect Chrissie D's business; that's the reason why Chrissie D's competitor were stated as local competitors.
Economic conditions
Interest rate from bank can also affect the price of the shoes. If the interest rate is high, people will rather save their money in the bank than spend them, that's the time when shops were forced to lower the price of their goods; in other words, if the interest rate is low, people will have more cash with them, and they will spend more, so at that time, shops can higher the prices of the goods.
Although interest rate will effect Chrissie D's business, but it doesn't effect as much as it effects Richer Sounds; since Chrissie D's is a small company and shoes are part of peoples' daily need, once one pair was worn out, they must buy another pair to replace. So Chrissie D's will always have customers, though they need to have fair prices. To over come problems cause by interest rate, Chrissie D's will lower or increase their prices.
Environmental constraints
Chrissie D's is a company that provide services to people (Selling shoes), that's why it doesn't cause as much pollution as other primary and secondary sector, but for the goods of the area, Chrissie D's did the following:
- Advice their customers to take bus rather then drive.
- Ask their consumers not to park at the side of the road, which is not allowed.
- Ask their supplier to post most of the goods rather then deliver them by driver
up to the shop.
- Put a litterbin in front of the shop.
By doing that, it will cause less air pollutions; that will also make the area cleaner.
Other effects
- If the suppliers increase the price of the shoes, Chrissie D's will need to increase
their prices as well. (That happens every season)
- If their competitors lower their price, Chrissie D's had to lower their price as well.
Kelvin Wong
G.G.S.K.C.
