Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing CVM across 25 select customers. This has enabled it to successfully come out of the commodity trap that it found itself some four years ago. The paper begins with an overview of existing research in the area of CVM covering the important aspects of customer loyalty, customer relationships, trust as an antecedent for relationships, value as a cornerstone of business markets, and importance of the supplier firm focusing on the efficacy of the value chain of which it is a part. While one part of the challenge for a supplier firm is to find avenues to create and deliver unique value to its customer firms, an equally formidable challenge is to obtain equitable return for value delivered. This is where value sharing through integrative negotiations between the supplier and customer firms becomes central. The authors conclude that current understanding on value creation and value sharing is at a preliminary stage. This is the gap that the paper seeks to address based on the actual experience of the company in implementing CVM. This paper presents a framework for mapping the various ideas generated in the CVM implementation process and attempts to build a value sharing methodology based on the CVM journey of the company. It concludes with several challenges that the company has to grapple with for continued progress on its CVM journey. One of the important challenges is addressing value drains and discovering new value creation avenues along all the interfaces between the various firms constituting the value chain all the way until the end customer. The key learnings can be summarized as follows: Success of CVM has to start from the top management of both supplier and customer firms. The focal responsibility cannot be delegated. Firms planning to embark on the CVM journey must adapt the CVM process to their own specific situations while general lessons can be drawn from Tata Steel�s CVM implementation experience. Meaningful roles must be found for all key managers in both supplier and customer firms for success of CVM implementation. It is necessary to take stretch targets for the process to be attractive and worth the while for both the firms. At the same time, it is essential to manage the expectations of both firms: CVM is not a panacea or a magic bullet to solve all the problems of both the firms. The overall philosophy of both firms must be to seek to expand the ‘value pie,’ thus coming up with integrative decisions based on aligned data where both the firms ‘read off the same page’ of data.
I n a competitive world, the companies that rediscover their vision and mission and innovate continuously achieve sustainability. Long-term sustenance has to be built and fuelled constantly by innovation and well-designed strategic intent. Many companies like General Electric, General Motors, Ford Motor, Bharat Heavy Electricals Ltd., and Tata Motors have devised ways to stay ahead of the competition and build a case for their continued relevance to customers and other stakeholders. All of them have one thing in common-they have used the Balanced Score Card (BSC) methodology as well as continuous improvement to constantly learn from their past efforts and move ahead to greater heights of performance. Tata Steel is a company which is now over 105 years old and continues to be a force to reckon with in the world steel industry. This continued profitable presence in a highly technology-and manpower-driven, capital-intensive industry is not a mere chance event; it has been an outcome of continued innovation in the way the company's leaders have rediscovered and restated the purpose for its existence-which derives from the Tata Group philosophy of "leadership with trust". During the years 1990-2010, the company went through a large scale transformation when the leaders reinvented the way in which the daily management as well as strategic management activities were carried out. The successful turnaround of the company from a manpower-intensive, low-technology player to the world's lowest cost steel plant and more was made possible due to the several initiatives taken up in these years. This paper describes the crucial role played by the BSC methodology implementation which led to the acquisition of Corus, an unparalleled action which has catapulted Tata Steel and the Tata Group into the league of companies that straddle the world business scenario and influence customer comforts. ORIGIN OF THE BSC The search for an integrated management method for large companies has been on since Drucker (1993) proposed the MBO-Management by Objectives. One of the authors was a witness and a participant in a live effort in Mukand Iron and Steel Company, India to introduce MBO for managing the company in 1975. MBO was followed by the methodology of managing by annual themes practised by Japanese
Purpose: Higher education institutions assume an effective role in enriching the education quality of a nation. The curriculum developed or approved by the ministry, which is an apex body in the country, has a direct impact on the outcomes of the educational system. This paper has made an attempt to critically evaluate the entrepreneurial initiatives developed by the students who pursue their MBA programme.Methodology: This research work is based on both primary and secondary sources of data and the primary data required for the study were collected through a structured questionnaire from rightly designed sample size while for the secondary data, the researchers have relied on previous research works in the same field, apart from other sources like, magazines, e-library resources, text books and websites. The data were analysed by Percentage Analysis and Henry Garrett Ranking Technique to attain the objectives of the study.Findings: The results of the study indicate that most of the students who pursue MBA programme are willing to initiate own business to make a career.Practical Implications: This research work implies that if MBA programmes offered by HEIs incorporate more of practical sessions involving the students in real world problem analysis and decision making mechanism, the students would be able to become successful entrepreneurs.Social Implications: The results of the study indicate that when more of entrepreneurial oriented master programmes are offered, the country will be able to ensure sustainable growth in the business field focusing on SME.Result Limitations/Implications: The present research study has focused on only the MBA students whereas there are other master degree programmes having courses in entrepreneurship, creativity and innovation, which are not covered by the study.Originality/Value: The result outcomes and suggestions would be of valuable basis for any authority who is involved in reviving the curriculum of academic programmes in entrepreneurship.
Customer Value Management (CVM) has emerged as an important vehicle for customer retention in business markets. Supplier firms under increasing pressure from relentless competitive forces are seeking to retain and grow the share of business from profitable existing customers as a means of finding a way out of downward spiralling price pressures. While a lot has been written in academics about the importance of CVM, several gaps remain on understanding how a large company actually undertakes this journey. Crafting competitive value chains and focusing on streams of competition are also emerging as important agenda for supplier firms since, increasingly, the end customer is no longer willing to pay for inefficiencies in the value chains. In this context, the challenge for a supplier firm in business markets is no longer restricted to getting its own operations in order, but, additionally, it must ensure that multiple interfaces that exist across the entire value chain all the way until the end customer are streamlined so that the value chain is free of value drains and every meaningful opportunity to create value is exploited. In this paper, the authors present the experiences of the India-based Tata Steel in implementing CVM across 25 select customers. This has enabled it to successfully come out of the commodity trap that it found itself some four years ago. The paper begins with an overview of existing research in the area of CVM covering the important aspects of customer loyalty, customer relationships, trust as an antecedent for relationships, value as a cornerstone of business markets, and importance of the supplier firm focusing on the efficacy of the value chain of which it is a part. While one part of the challenge for a supplier firm is to find avenues to create and deliver unique value to its customer firms, an equally formidable challenge is to obtain equitable return for value delivered. This is where value sharing through integrative negotiations between the supplier and customer firms becomes central. The authors conclude that current understanding on value creation and value sharing is at a preliminary stage. This is the gap that the paper seeks to address based on the actual experience of the company in implementing CVM. This paper presents a framework for mapping the various ideas generated in the CVM implementation process and attempts to build a value sharing methodology based on the CVM journey of the company. It concludes with several challenges that the company has to grapple with for continued progress on its CVM journey. One of the important challenges is addressing value drains and discovering new value creation avenues along all the interfaces between the various firms constituting the value chain all the way until the end customer. The key learnings can be summarized as follows: Success of CVM has to start from the top management of both supplier and customer firms. The focal responsibility cannot be delegated. Firms planning to embark on the CVM journey must adapt the CVM process to the...
The study mainly focuses on the aviation sector which is one of the fast-growing sectors that highly contributes to the global economy. In the introductory section, the nature of industry and its evolution are discussed in detail. Oman air is chosen for the study, the internal and external analyses are conducted with the aid of SWOT and PESTLE analysis. Through the environmental analysis, Oman air can obtain a clear picture that is relevant to the industry. The study provides crystal clear information relevant to the competitors in the market and meanwhile the performances of the Oman air in the competitive environment are also analysed through this report. Based on the analysis corporate level as well as business level strategies are formulated by the organization that have been discussed in detail. In the following section recommendations and conclusion have been postulated. Additionally the current challenges and the future trends in the market environment are also touched up through the study.
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