Marketing: Retailing and Heterogeneous Shopping Product

1. ) Dusty Moore has never owned a JVC TV, but his parents owned one and were not at all satisfied. As a result, Dusty won't even consider buying an JVC. As far as Dusty is concerned, JVC has achieved brand _____rejection_________. 2. ) Connie Seagroves is shopping for a new pair of jeans. She has had good experiences with Chic jeans in the past and is looking for Chic now. She intends to buy Chic jeans if they have something in her size. If not, she plans to keep wearing the Chic jeans she has as long as possible, planning to continue her search for a good fitting pair of Chic jeans at a later date.This is a good example of: brand insistence.3. ) Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with a full-time job, Marissa has considerably more financial resources than most college students. She feels that this car needs to provide a statement of just who she is and wear her drive and ambition are taking her! She is looking for a high quality car with the look of success!She finds very few that provide the kind of self-actualization she's looking for – and each of those has a sticker price in excess of $50,000 . Marissa's father however, although extremely wealthy and can easily afford cars in this price range, treats cars as basically the same. He doesn't care what it is as long as it gets him there. Although he visits car dealerships occasionally just to see what's available, he doesn't spend much time at it. He tells Marissa to buy two of whatever she gets (he'll call his bank to take care of the money for his).He buys a car this way whenever he wears one out. He usually drives his cars into the ground – i. e. until they totally wear out then asks whomever he knows who's going car buying to pick up one for him (of whatever they are getting – price is no object). For Marissa, this automobile is a _____heterogeneous shopping good_________ product; for her father, the car is a _____a homogeneous good_________ product.4. ) The ABC company is marketing a rental product that allows the option of self-cremation. Although sounding somewhat bizarre to the common person, the produc t is targeted to the millions of elderly bedridden patients without family or friends. The buyer simply exchanges their hospital bed for the Self-Crematory Box. The box monitors the occupants heart-beat / brain-wave activity. When both have ceased for 1 hour the box self-seals, brings the temperature inside the box to 6000 degrees and reduces the body inside to a fine white ash which is then deposited in an urn mounted on the side of the box.The box is so well-insulated you can put your hand on top of the box while the cremation process is underway without feeling any heat coming through! The box then sends a radio signal to the company which picks up the box, conducts a thorough cleaning/refueling in prepartion for rental to another customer. There is no competition since no other company has anything like it. The prototype worked so well that the company is planning to make a small number to market test it in Florida (due to the large number of potential customers there).Promotion al strategies are being developed and are in the very beginning stage of implementation (first promotions appeared in local newspapers yesterday). What product class is the Self-crematory box in to the target market? new unsought good5. ) Your firm has devised a method of transportation that will eliminate the needs for all forms of mechanical transporation. The product is a form of mental training that, when complete, allows a person to tap into previously unknown parts of his/her brain to use a teleportation talent we all have but don't know to use.Although everone's abilitites are different (just as we run/walk with different abilities) just about every person has this ability in some way or another and when trained can ‘think' themselves from place-to-place; no cars, trains, boats, plane required – just fix the coordinates in your minds-eye and PUSH yourself there instanteously. This training is a: service6. ) Your firm determines that they have a need to store exce ss inventory from their midwest operations due to highly variant changes in customer demand.They determine that due to their need to produce in such large quantities the warehouses will always be at least half full. Should they use public or private warehouses? private7. ) At what stage of the product life cycle is the firm broadening the base of their channel of distribution by shifting their focus from a pull to a push strategy?GROWTH8. ) The stage of the product life cycle in which early majority first make purchases is: GROWTH9. ) Hershey's chocolate bars have been marketed in the United States for more than 100 years, and are still a tremendous success, with a loyal following of consumers.The company began advertising several years ago to hold its market share, and it has introduced several distinctive new products. What stage of their product life cycle are Hershey's chocolate bars in? maturity10. ) What level of brand loyality do makers of SPECIALTY PRODUCTS aspire to? brand insistence11. ) A company has been making the same product for over 100 years. It is an essential element of almost every person's grooming requirements. Many other manufacturers make the same type of product. The company distributes it in every department store and grocery store in the nation.Competition is intense. Contribution margins are very thin. The company focuses it primary promotional efforts on advertising and its secondary effort on consumer sales promotions. What level of market exposure does this product have? intensive12. ) Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? Selective distribution13. ) Michelle is the marketing manager for a popular brand of oatmeal cookies.Various plans to increase market share by appealing to competitor's customers via advertising have failed. Michelle is planning another strategy not dependent on advertising. A recent surv ey shows sales are good among brand loyal customers who include the product as a regular part of their shopping list. Michelle plans to provide incentives to salespeople who call on retailers to get them to convince the stores to place additional bags of the cookies on shelf space by near/by the cash registers in the hope that non-brand loyal customers will put them in their shopping cart without hinking while waiting to check out. Michelle is positioning the cookies by the checkout stand as: an impulse product14. ) James River Paper (JRP) recently introduced Absorb, a new double-thick paper towel aimed at families with children. Primarily and industrial products manufacturer, JRP had produced paper towels for a few large grocery chains to sell as their own dealer brand. But Absorb was its first attempt at marketing a consumer product under its own brand. So far, results are not encouraging. Only a few wholesalers have taken on the line.Most are very reluctant to handle Absorb, clai ming that retail shelves are already overcrowded with paper towels. What product class is this in? staple convenience product15. ) The first mechanical dishwasher was a ____discontinuous___________ innovation.16. ) Your firm has devised a method of transportation that will eliminate the needs for all forms of mechanical transporation. The product is a form of mental training that, when complete, allows a person to tap into previously unknown parts of his/her brain to use a teleportation talent we all have but don't know to use.Although everone's abilitites are different (just as we run/walk with different abilities) just about every person has this ability in some way or another and when trained can ‘think' themselves from place-to-place; no cars, trains, boats, plane required – just fix the coordinates in your minds-eye and PUSH yourself there instanteously. This training is a: discontinuous innovation17. ) If a large furniture retailer were to purchase Drexel (a manuf acturer of sofas and chairs), this would be an example of: backward integration18. Your company must produce 1,000,000 units of your product in order to acheive sufficnet economies of scale to keep costs as low as possible. Customers only buy these pproducdts one at-a-time. This is the concept of: discrepancy of quantity19. ) Retailers have to buy from many different sources to satisfy the diverse needs of thier customers. This is the concept of: discrepancy of assortment20. ) ABC company contracted with the XYZ company to develop edible packaging material that would be used in place of the Styrofoam peanuts currently used to insure fragile contents did not shift in transit enough to break or become dysfunctional.The material is a nutritional supplement for any member of the rodent family (hamsters, Guinea Pig, rabbits, etc). From the supplied choices below, choose the three answers that best answer the three questions that follow. 1: What is the primary packaging strategy? 2: What is the secondary packaging strategy? 3: What is the tertiary packaging strategy? a. The primary packaging strategy is to protect the product. b. The secondary packaging strategy is to become a product itself. c. There is no tertiary packaging strategy.21. ) Dell Computer packages its scanner in a plastic box.The box is designed to be reusable as a storage container to hold the myriad of loose items that seem to accumulate in any household. It's durable enough to last for years. Initial tests find people using the boxes to store personal belongs that need extra protection in storage sheds, the attic, etc. Engraved on all sides of the box are the Dell logo, information about Dell's other product lines; information about the safe use of the scanner as well customer service contact information. What types(s) of packaging strategy(ies) is Dell Computer conducting? Choose all that apply. . PROTECT e. PROMOTE f. PRODUCT22. ) In an old episode of the Andy Griffith television series, two loc al farmers were shown marketing their home-grown fruits and vegetables to consumers along the roadside. The farmers weren't selling their vegetables from a retail store; they sold their produce from the back of their truck. The farmers grew the fruits and vegetables and then sold them to the local people as they drove by on the road. The farmers selling their products without wholesalers or retailers were an example of a: a direct channel of distribution.23. ) IBM has long been perceived as the leader in computer technology. As such, for many years IBM computers were available only from selected, authorized IBM retailers. Currently, IBM has changed their distribution strategy. Consumers can now purchase IBM computers at several well-known department and discount stores, including Wal-Mart and K-Mart, located throughout the country. Initially, IBM employed _____exclusive_________ distribution and made their products available only through a single retail outlet in a given competitive market.Currently, as computers have become more of a shopping good, IBM is using selective distribution, as they seek to broaden the degree of their distribution and make their computers available in several retail outlets in a given competitive market.24. ) The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is: piggyback service.25. A cheese processor having regular need for regional storage of a large quantity of cheese probably should use _____private_________ warehouses.26. ) Your brand, originally marketed as a specialty product and which sold very well to innovators, is now being marketed as a heterogeneous shopping good. What should your brand familiarity objective be? preference27. ) Laurie Owens visits the local Healthy Glow spa, but dislikes the dirty dressing area and refuses to go back. This is an example of: brand rejection28. Dell Compu ter packages its scanner in a plastic box with an airtight self-sealing lid designed to be reusable as a climate proof airtight attic storage box. What type of packaging strategy is Dell Computer conducting with this recent modification to the box? PRODUCT29. ) Dell Computer packages its scanner in a plastic box. The box is designed to be reusable as a storage container to hold the myriad of loose items that seem to accumulate in any household. It's durable enough to last for years. Initial tests find people using the boxes to store personal belongs that need extra protection in storage sheds, the attic, etc.Engraved on all sides of the box are the Dell logo, information about Dell's other product lines; information about the safe use of the scanner as well customer service contact information. What types(s) of packaging strategy(ies) is Dell Computer conducting? Choose all that apply. g. PROTECT h. PROMOTE i. PRODUCT30. ) Your firm is marketing a product to brand preferent customer s. What distribution strategy shouild they use? selective31. ) John Deere manufactures and distributes industrial and farm equipment. These types equipment are considered to be specialty products.Which type of market coverage is the company most likely to choose? Exclusive distribution32. ) A company has been making the same product for over 100 years. It is an essential element of almost every person's grooming requirements. Many other manufacturers make the same type of product. The company distributes it in every department store and grocery store in the nation. Competition is intense. Contribution margins are very thin. The company focuses it primary promotional efforts on advertising and its secondary effort on consumer sales promotions. What level of market exposure does this product have? intensive33. ) Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? intensive34. ) If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of: backward integration35. ) Kari Athens was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present.At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Kari, the coffee pot was: a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.36. ) While shopping in a local supermarket, Mime Abbott came upon an aisle display of cookies and had to have some–immediately. By the time she got to the checkout counter with the rest of her selections, all the cookies were gone. In this case, the cookies were: an impulse product37. ) Your firm determines that they have a need to store excess inventory from their midwes t operations due to highly variant changes in customer demand. They determine that due to their need to produce in such large quantities the warehouses will always be at least half full. Should they use public or private warehouses? private38. ) A merchant wholesaler is considering four physical distribution systems. Which is best for shipping his products? Cannot be determined without the target customer's needs.39. ) The ABC company sells beach wear to teenagers. It plans to solicit sales from teens at the beach by taking van loads of beach wear to all the beaches in the United States each day of summer (June 22 – September 21st). The company has the beachware made in Thailand and shipped directly to it's vendors in the 40 major beach locations its targeted. The company believes it knows its market well enough such that the goods will be produced and shipped such that each vendor will receive only enough to fill the van each week.If their estimates are right, each van vendo r will receive just enough goods to fill their van on Monday and have sufficient demand to sell all of it by the following Sunday. Then they will refill their van on Monday with the next order just arriving that day. If they are not as accurate as they hope to be, the vendors will not have sold all their inventory from the previous week and the new shipment will not fit into the van (along with the remainder of the previous weeks shipment). The vendors are then authorized to place whatever excess won't fit in the van into storage. Should the vendors plan to put their excess into rental storage or should they buy some storage space. rent storage space40. ) When Henry Ford first offered his traditionally black Fords in other colors, to the consuming public, this was a: continuous innovation41. ) Your firm has devised a method of transportation that will eliminate the needs for all forms of mechanical transporation. The product is a form of mental training that, when complete, allows a person to tap into previously unknown parts of his/her brain to use a teleportation talent we all have but don't know to use.Although everone's abilitites are different (just as we run/walk with different abilities) just about every person has this ability in some way or another and when trained can ‘think' themselves from place-to-place; no cars, trains, boats, plane required – just fix the coordinates in your minds-eye and PUSH yourself there instanteously. This training is a: discontinuous innovation42. ) Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with a full-time job, Marissa has considerably more financial resources than most college students.She feels that this car needs to provide a statement of just who she is and wear her drive and ambition are taking her! She is looking for a high quality car with the look of success! She finds very few that provide the kind of self-actualization she's looking for – and each of those has a sticker price in excess of $50,000. Marissa's father however, although extremely wealthy and can easily afford cars in this price range, treats cars as basically the same. He doesn't care what it is as long as it gets him there. Although he visits car dealerships occasionally just to see what's available, he doesn't spend much time at it.He tells Marissa to buy two of whatever she gets (he'll call his bank to take care of the money for his). He buys a car this way whenever he wears one out. He usually drives his cars into the ground – i. e. until they totally wear out then asks whomever he knows who's going car buying to pick up one for him (of whatever they are getting – price is no object). For Marissa, this automobile is a ___heterogeneous shopping good___________ product; for her father, the car is a ___a homogeneous good___________ product.43. ) A new computer company with a radically new appro ach to computing, has a laptop priced at $99. 0). This basic laptop is targeted as the late adopter. It is as simple to operate as a calculator. It has a very small hard drive, small – but full functional keyboard, basic soundcard, and no ability to expand. It has Microsoft WORD, EXCEL, PowerPoint, and Outlook built in. Thus, it's mean to basic schoolwork and email (with a built in wireless modem which requires signing up for a monthly access fee of 99 cents). The company plans to distribute its products only through three large discounters (Wal-Mart, K-Mart, and Target) in very large cities (populations of at least 1,000,000 people).It was designed to compete against the hand-helds, but it's larger and more user friendly (with a bigger screen for ease of viewing by the target market (estimated average age of 65) and much cheaper. What product class is this product in? homogeneous shopping product44. ) In the early 1900's, GrandPa purchased his first automobile. After years o f driving horse and buggies, Grandpa got in his new car and drove it into his new garage. Unfortunately, instead of using the brake to stop the new automobile, Grandpa shouted: â€Å"Whoa!! † and crashed into the wall. Grandpa's new automobile was an example of: a discontinuous innovation45. ) Your firm is offering a slotting allowance to retailers to give them an incentive to carry your product – which is targeted at the early adopter as part of a number one priority PUSH STRATEGY. What stage of the PLC is this most likely to occur in? growth46. ) Hershey's chocolate bars have been marketed in the United States for more than 100 years, and are still a tremendous success, with a loyal following of consumers. The company began advertising several years ago to hold its market share, and it has introduced several distinctive new products.What stage of their product life cycle are Hershey's chocolate bars in? maturity47. ) Wisemen Inc. has just become profitable with its 8 megapixel digital camera which produces the sharpest pictures in the industry by at least two orders of magnitude. Prints are now beginning to be almost indistisguishable from ‘traditional' film cameras, which is quite a change from previous models. Its promotional expenditures are aimed at informing its target market of enhancements while trying to persuade potential customers of the digital camera's significant advantages over competitor's products.However, even more money is being spent to develop the firm's distribution system (since other comptitors are also still trying to expand theirs) for the digital camera. Competitors at this technology level are beginning to increase. What stage of the product life cycle is the digital camera in? Growth stage48. ) A firm finds that its customers are unwilling to try their product again after being disappointed with it on their first use. They avoid any reference to their brand even to the extent of claiming to have never heard of it just so people won't know they ever used it.The firm's target market is exhibiting __brand rejection____________.49. ) A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows: why both discrepancies of quantity and assortment occur.50. ) Which of the following best illustrates â€Å"discrepancies of quantity†? Firestone made millions of tires last year–but most customers bought only one set.51. Which of the following best illustrates â€Å"discrepancies of quantity†? Firestone made millions of tires last year–but most customers bought only one set.52. ) A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows: why both discrepancies of quantity and assortment occur.53. ) XYZ Corporation manufactures and distributes tax software on site in its Houston, Texas location.It's marketing manager needs to ship large quantities of these very high-value tax software to its more than 1000 clients world-wide at the most economical cost where time is very short (3 days – it's April 12th and all tax returns are due April 15th)to meet consumer demand. The best transportation plan should include which of the following to get the company’s goods to market? electronic54. ) The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is: piggyback service.55. ) LusterWare, Inc. has seen most of its competitors drop out of its product-market due to declining industry sales and profits. But LusterWare still has much demand for its product from a small group of loyal customers. This product-market is in which product life cycle stage? Sales decline56. ) At what stage of the product life cycle is the firm broadening the base of their channel of distribution by shifting their focus from a pull to a push strategy? GROWTH57. ) The stage of the product life cycle in which late majority first make purchases is: maturity58. When the remote control for the color TV was first introduced to the consuming public, it was a: dynamically continuous innovation59. ) Determining the level of diffusion of innovation a product is contributing to the marketplace: helps determine the type of marketing mix to create for the product.60. ) Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? Selective distribution61. ) Ciao Footwear designs and manufacturers a high-quality line of fashionable shoes that are popular amoung young professional women.The line is quite expens ive–and is sold only through specialty shops which handle only this type of fashion shoe (including competing brands). Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. For stores that agree to promote the Ciao line very aggressively, Ciao agrees to cut their price to the store an additional 10%, provide significant national advertising and to distribute to no more than two or three other retailers in the specialty store's immediate trading area.Since continuing promotion seems to be necessary in this highly competitive market, advertisements for Ciao shoes appear regularly in fashion magazines targeted at professional women and on select cable TV broadcasts, including broadcasts of women's tennis tournaments. What is the â€Å"ideal† market exposure for this product? selective distribution62. ) Ciao Footwear designs and manufacturers a high-quality line of fashionable shoes that are popular amoung young profession al women. The line is quite expensive–and is sold only through specialty shops which handle only this type of fashion shoe (including competing brands).Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. For stores that agree to promote the Ciao line very aggressively, Ciao agrees to cut their price to the store an additional 10%, provide significant national advertising and to distribute to no more than two or three other retailers in the specialty store's immediate trading area. Since continuing promotion seems to be necessary in this highly competitive market, advertisements for Ciao shoes appear regularly in fashion magazines targeted at professional women and on select cable TV roadcasts, including broadcasts of women's tennis tournaments. What product class is this in? heterogeneous shopping product63. ) Michelle is the marketing manager for a popular brand of oatmeal cookies. Various plans to increase market share by appealing to competitor's customers via advertising have failed. Michelle is planning another strategy not dependent on advertising. A recent survey shows sales are good among brand loyal customers who include the product as a regular part of their shopping list.Michelle plans to provide incentives to salespeople who call on retailers to get them to convince the stores to place additional bags of the cookies on shelf space by near/by the cash registers in the hope that non-brand loyal customers will put them in their shopping cart without thinking while waiting to check out. Michelle is positioning the cookies by the checkout stand as: an impulse product.64. ) You've just introduced a new brand of a heterogeneous shopping good. What should your brand familiaryt objective be? recognition.65. ) Connie Seagroves is shopping for a new pair of jeans.She enjoys the way Chic jeans makes her look and feel. She's aways bought Chic jeans in the past so she intends to buy Chic jeans this time as well. Unfortunately, in all the stores she shopped, although they had Chic in stock, none were in her size. Finally, in the last store she shopped, she saw a pair of Jordache jeans that were very similar to the cut and style of Chic. She tried them on and they fit – beautifully. Still, she really wanted Chic. Figuring they would be good substitutes until the stores received Chic in her size, Connie bought one pair of the Jordache jeans.What level of brand loyalty does Connie have for Chic jeans? brand preference66. ) If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of: backward integration67. ) A new computer company with a radically new approach to computing, has a laptop priced at $99. 00). This basic laptop is targeted as the late adopter. It is as simple to operate as a calculator. It has a very small hard drive, small – but full functional keyboard, basic soundcard, and no ability to expand. I t has Microsoft WORD, EXCEL, PowerPoint, and Outlook built in.Thus, it's mean to basic schoolwork and email (with a built in wireless modem which requires signing up for a monthly access fee of 99 cents). The company plans to distribute its products only through three large discounters (Wal-Mart, K-Mart, and Target) in very large cities (populations of at least 1,000,000 people). It was designed to compete against the hand-helds, but it's larger and more user friendly (with a bigger screen for ease of viewing by the target market (estimated average age of 65) and much cheaper. What product class is this product in? homogeneous shopping product68. The ABC company is marketing a rental product that allows the option of self-cremation. Although sounding somewhat bizarre to the common person, the product is targeted to the millions of elderly bedridden patients without family or friends. The buyer simply exchanges their hospital bed for the Self-Crematory Box. The box monitors the occup ants heart-beat / brain-wave activity. When both have ceased for 1 hour the box self-seals, brings the temperature inside the box to 6000 degrees and reduces the body inside to a fine white ash which is then deposited in an urn mounted on the side of the box.The box is so well-insulated you can put your hand on top of the box while the cremation process is underway without feeling any heat coming through! The box then sends a radio signal to the company which picks up the box, conducts a thorough cleaning/refueling in prepartion for rental to another customer. There is no competition since no other company has anything like it. The prototype worked so well that the company is planning to make a small number to market test it in Florida (due to the large number of potential customers there).Promotional strategies are being developed and are in the very beginning stage of implementation (first promotions appeared in local newspapers yesterday). What product class is the Self-crematory box in to the target market? new unsought good69. ) Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile. As a college student with a full-time job, Marissa has considerably more financial resources than most college students. She feels that this car needs to provide a statement of just who she is and wear her drive and ambition are taking her!She is looking for a high quality car with the look of success! She finds very few that provide the kind of self-actualization she's looking for – and each of those has a sticker price in excess of $50,000. Marissa's father however, although extremely wealthy and can easily afford cars in this price range, treats cars as basically the same. He doesn't care what it is as long as it gets him there. Although he visits car dealerships occasionally just to see what's available, he doesn't spend much time at it. He tells Marissa to buy two of whatever she gets (he'll call hi s bank to take care of the money for his).He buys a car this way whenever he wears one out. He usually drives his cars into the ground – i. e. until they totally wear out then asks whomever he knows who's going car buying to pick up one for him (of whatever they are getting – price is no object). For Marissa, this automobile is a ______________ product; for her father, the car is a ______________ product. heterogeneous shopping good; a homogeneous good70. ) A firm finds itself in a situation where it is able to accurately predict consumer demand. It predicts that it will need to store material for one month two times a year due to the seasonal nature of the product.What type of warehouse should the firm use to store this inventory? public71. ) Dell Computer packages its scanner in a plastic box. The box is designed to be reusable as a storage container to hold the myriad of loose items that seem to accumulate in any household. It's durable enough to last for years. Ini tial tests find people using the boxes to store personal belongs that need extra protection in storage sheds, the attic, etc. Engraved on all sides of the box are the Dell logo, information about Dell's other product lines; information about the safe use of the scanner as well customer service contact information.What type of packaging strategy is Dell Computer conducting? PROTECT72. ) A company has developed a long pen in various colors and with interesting sayings on the side. Directions provided with the pen show how to convert the pen to a reusable straw that is dishwasher safe when the ink runs out. Since this company is the first to market such a product, customers don't yet know about it. What packaging strategy is in use here? PRODUCT73. ) Your firm manufactures products in San Francisco. You're targeting customers in Hong Kong. They need your product to be delivered on January 1st, 2116.What's the best method of transportation to use? water74. ) The Colorado Coal Company ne eds to move its coal to intermediaries on the Atlantic coast who in turn will sell it to end users. The best means of transportation for the company to employ under normal conditions is: railroads.75) A firm finds that its customers are unwilling to try their product again after being disappointed with it on their first use. They avoid any reference to their brand even to the extent of claiming to have never heard of it just so people won't know they ever used it.The firm's target market is exhibiting ______________. brand rejection76. ) Larry White won't buy any coffee except â€Å"Blue Mountain†Ã¢â‚¬â€œa relatively expensive type that few stores sell. He used to have to drive about 10 miles out of his way to buy it at a small shop–but now he has persuaded his local supermarket manager to handle this coffee. For him, this coffee is a specialty product77. ) During a heavy rainstorm, Avery Battle slipped into a drugstore and bought an umbrella–just like the one h e had at home–for $15. 00 plus tax. In this case, the umbrella is: an emergency product78. Lake Wobegon Mills, a manufacturer of textile products, bought out the wholesaler that had been handling its distribution in Canada. This is an example of: vertical integration79. ) What level of brand loyality do makers of SPECIALTY PRODUCTS aspire to? brand insistence80. ) Your firm determines that they have a need to store excess inventory from their midwest operations due to highly variant and unpredictable changes in customer demand. Should they use public or private warehouses? Public81. ) The stage of the product life cycle in which late majority first make purchases is: maturity82. ) The stage of the product life cycle in which early adopters first make purchases is: introduction83. ) Your product has been suffering from steadily eroding sales and profits. You have tried a number of options to revitalize the product's sales and profits, but after seven changes in your strategy, you have yet to find success. Which of the following actions would be the least appropriate next step: try to stimulate primary demand.84. ) Retailers have to buy from many different sources to satisfy the diverse needs of thier customers. This is the concept of: discrepancy of assortment85. ) Your company must produce 1,000,000 units of your product in order to acheive sufficnet economies of scale to keep costs as low as possible. Customers only buy these pproducdts one at-a-time. This is the concept of: discrepancy of quantity86. ) Dell Computer packages its scanner in a plastic box with an airtight self-sealing lid designed to be reusable as a climate proof airtight attic storage box. What type of packaging strategy is Dell Computer conducting with this recent modification to the box? PRODUCT87.ABC company contracted with the XYZ company to develop edible packaging material that would be used in place of the Styrofoam peanuts currently used to insure fragile contents did not shif t in transit enough to break or become dysfunctional. The material is a nutritional supplement for any member of the rodent family (hamsters, Guinea Pig, rabbits, etc). From the supplied choices below, choose the three answers that best answer the three questions that follow. 1: What is the primary packaging strategy? 2: What is the secondary packaging strategy? 3: What is the tertiary packaging strategy?The primary packaging strategy is to protect the product. The secondary packaging strategy is to become a product itself. There is no tertiary packaging strategy88. The first electric typewriter was a _______________ innovation. dynamically continuous89. When the remote control for the color TV was first introduced to the consuming public, it was a: dynamically continuous innovation90. Nonrecognition of the brand name of a firm's product is likely to be LEAST important for: Coal91. Connie Seagroves is shopping for a new pair of jeans. She enjoys the way Chic jeans makes her look and feel.She's aways bought Chic jeans in the past so she intends to buy Chic jeans this time as well. Unfortunately, in all the stores she shopped, although they had Chic in stock, none were in her size. Finally, in the last store she shopped, she saw a pair of Jordache jeans that were very similar to the cut and style of Chic. She tried them on and they fit – beautifully. Still, she really wanted Chic. Figuring they would be good substitutes until the stores received Chic in her size, Connie bought one pair of the Jordache jeans. What level of brand loyalty does Connie have for Chic jeans? brand preference92. Products which the consumer does not know about, or knows about but does not initially want, are called: unsought goods93. In the early 1900's, GrandPa purchased his first automobile. After years of driving horse and buggies, Grandpa got in his new car and drove it into his new garage. Unfortunately, instead of using the brake to stop the new automobile, Grandpa shouted: â€Å"Whoa!! † and crashed into the wall. Grandpa's new automobile was an example of: a discontinuous innovation94. A new computer company with a radically new approach to computing, has a laptop priced at $99. 00).This basic laptop is targeted as the late adopter. It is as simple to operate as a calculator. It has a very small hard drive, small – but full functional keyboard, basic soundcard, and no ability to expand. It has Microsoft WORD, EXCEL, PowerPoint, and Outlook built in. Thus, it's mean to basic schoolwork and email (with a built in wireless modem which requires signing up for a monthly access fee of 99 cents). The company plans to distribute its products only through three large discounters (Wal-Mart, K-Mart, and Target) in very large cities (populations of at least 1,000,000 people).It was designed to compete against the hand-helds, but it's larger and more user friendly (with a bigger screen for ease of viewing by the target market (estimated average age of 65) and much cheaper. What product class is this product in? homogeneous shopping product 95. Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? Selective distribution96. A company has been making the same product for over 100 years. It is an essential element of almost every person's grooming requirements.Many other manufacturers make the same type of product. The company distributes it in every department store and grocery store in the nation. Competition is intense. Contribution margins are very thin. The company focuses it primary promotional efforts on advertising and its secondary effort on consumer sales promotions. What level of market exposure does this product have? intensive97. A new computer company with a radically new approach to computing, has a laptop priced at $99. 00). This basic laptop is targeted at the late adopter. It is as simple to operate as a c alculator.It has a very small hard drive, small – but full functional keyboard, basic soundcard, and no ability to expand. It has Microsoft WORD, EXCEL, PowerPoint, and Outlook built in. Thus, it's meant for basic schoolwork and email (with a built in wireless modem which requires signing up for a monthly access fee of 99 cents). The company plans to distribute its products through all large discounters such as Wal-Mart, K-Mart, and Target as well as through all outlets that currently sell inexpensive laptops. What distribution strategy is being conducted? Intensive |98.There are several modes of transportation available to assist marketers in facilitating the transfer of goods from producer to the ultimate consumer. For example, logistics managers can use railroads, trucks/motor carriers, airplanes, pipelines, or ships to transport products. Each mode of transportation has inherent advantages and disadvantages. For instance, ______________ offer the advantages of door to doo r service for pick-up and delivery, relatively fast delivery, and extensive routes. The disadvantages of this mode of transportation include size and weight restrictions, higher rates, and some sensitivity to weather. rucks/motor carriers99. The railroad service which picks up truck trailers at a producer's location, loads them onto rail flatcars, hauls them close to the customer, and then delivers them to the buyer's door is: piggyback service.100. The ABC company sells beach wear to teenagers. It plans to solicit sales from teens at the beach by taking van loads of beach wear to all the beaches in the United States each day of summer (June 22 – September 21st). The company has the beachware made in Thailand and shipped directly to it's vendors in the 40 major beach locations its targeted.The company believes it knows its market well enough such that the goods will be produced and shipped such that each vendor will receive only enough to fill the van each week. If their esti mates are right, each van vendor will receive just enough goods to fill their van on Monday and have sufficient demand to sell all of it by the following Sunday. Then they will refill their van on Monday with the next order just arriving that day. If they are not as accurate as they hope to be, the vendors will not have sold all their inventory from the previous week and the new shipment will not fit into the van (along with the emainder of the previous weeks shipment). The vendors are then authorized to place whatever excess won't fit in the van into storage. Should the vendors plan to put their excess into rental storage or should they buy some storage space. rent storage space101. Which degree of market exposure would probably be most suitable for a heterogeneous shopping product which has achieved brand preference and sells for about $300? Selective distribution102. Ciao Footwear designs and manufacturers a high-quality line of fashionable shoes that are popular amoung young pro fessional women.The line is quite expensive–and is sold only through specialty shops which handle only this type of fashion shoe (including competing brands). Ciao will only work with retailers who agree to stock a large variety of sizes and colors of Ciao shoes. For stores that agree to promote the Ciao line very aggressively, Ciao agrees to cut their price to the store an additional 10%, provide significant national advertising and to distribute to no more than two or three other retailers in the specialty store's immediate trading area.Since continuing promotion seems to be necessary in this highly competitive market, advertisements for Ciao shoes appear regularly in fashion magazines targeted at professional women and on select cable TV broadcasts, including broadcasts of women's tennis tournaments. What is the â€Å"ideal† market exposure for this product? selective distribution103. Your firm has devised a method of transportation that will eliminate the needs for all forms of mechanical transporation.The product is a form of mental training that, when complete, allows a person to tap into previously unknown parts of his/her brain to use a teleportation talent we all have but don't know to use. Although everone's abilitites are different (just as we run/walk with different abilities) just about every person has this ability in some way or another and when trained can ‘think' themselves from place-to-place; no cars, trains, boats, plane required – just fix the coordinates in your minds-eye and PUSH yourself there instanteously. This training is a: discontinuous innovation104.The first car to change from the traditional black to blue was a _______________ innovation. Continuous105. Kaye Dimmig usually buys Prell shampoo because she likes its smell. But this morning her local drugstore was out of Prell, so she decided to buy another highly advertised brand that was on sale because she really needed to wash her hair that night. For Kaye, Prell has probably achieved brand: preference.106. Nonrecognition of the brand name of a firm's product is likely to be LEAST important for: Coal107. Assume that a new automobile fuel additive is developed that increases a car's miles-per-gallon by 60%.Unlike other fuel additives that claim enhanced performance but only seem to work in certain cars under very controlled conditions, this additive has been so well proven that customers are offered a free sample with a coupon to receive a 10% discount on whatever quantity they want to buy later. The response has been dramatic. Many consumers use the free sample and return to purchase upwards of 100 treatments (one per fillup) even though the product adds 20 cents to the cost of a gallon of gas. What stage of the product life cycle is this additive in? GROWTH108.ABC company sells camel hair paint brushes only to the wealthiest and most well-known artists. These artists claim that only with the extremely high quality camel hair bru shes made by this company, are they able to produce paintings of such high quality that the average price per painting sold to the general public (albeit the wealthiest of the general public) is well over one million dollars. ABC's camel hair brushes are ____________ products. BUSINESS109. Products which the consumer does not know about, or knows about but does not initially want, are called: unsought goods.110. If a large furniture retailer were to purchase Drexel (a manufacturer of sofas and chairs), this would be an example of: backward integration111. Michelle is the marketing manager for a popular brand of oatmeal cookies. Various plans to increase market share by appealing to competitor's customers via advertising have failed. Michelle is planning another strategy not dependent on advertising. A recent survey shows sales are good among brand loyal customers who include the product as a regular part of their shopping list.Michelle plans to provide incentives to salespeople who call on retailers to get them to convince the stores to place additional bags of the cookies on shelf space by near/by the cash registers in the hope that non-brand loyal customers will put them in their shopping cart without thinking while waiting to check out. Michelle is positioning the cookies by the checkout stand as: an impulse product.112. Kari Athens was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest.She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Kari, the coffee pot was a homogeneous shopping product, but the cassette player was a heterogeneous shopping product.113. A publisher of photography books finds that it is cost-effective to print 10,000 or more at a time. But a bookstore orders only a few copies of each book since its customers want to select from a wide variety. This example shows why both discrepancies of quantity and assortment occur.114.Retailers have to buy from many different sources to satisfy the diverse needs of thier customers. This is the concept of: discrepancy of assortment115. A firm finds that its customers are unwilling to try their product again after being disappointed with it on their first use. They avoid any reference to their brand even to the extent of claiming to have never heard of it just so people won't know they ever used it. The firm's target market is exhibiting ______________. brand rejection116. A firm finds itself in a situation where it is able to accurately predict consumer demand.It predicts that it will need to store material for one month two times a year due to the seasonal nature of the product. What type of warehouse should the firm use to store this inventory? Public117. A new computer company with a radically new approach to computing, has a laptop priced at $99. 00). This basic laptop is targeted at the late adopter. It is as simple to operate as a calculator. It has a very small hard drive, small – but full functional keyboard, basic soundcard, and no ability to expand. It has Microsoft WORD, EXCEL, PowerPoint, and Outlook built in.Thus, it's meant for basic schoolwork and email (with a built in wireless modem which requires signing up for a monthly access fee of 99 cents). The company plans to distribute its products through all large discounters such as Wal-Mart, K-Mart, and Target as well as through all outlets that currently sell inexpensive laptops. What distribution strategy is being conducted? Intensive118. The Colorado Coal Company needs to move its coal to intermediaries on the Atlantic coast who in turn will sell it to end users. The best means of transportation for the company to employ under normal conditions is: railroads119. Dell Computer packages its scanner in a plastic box with an airtight self-sealing lid designed to be reusable as a climate proof airtight attic storage box. What type of packaging strategy is Dell Computer conducting with this recent modification to the box? PRODUCT120. Dell Computer recently added a picture of the recommended brand of printer best designed to print the output of a given type of scanner on the outside of the box the scanners are mailed in to consumers. What type of packaging strategy is Dell Computer conducting with this recent addition to the box? PROMOTE121. National Power Tool Co. does not own its own transport facilities, but it regularly ships small orders to the wholesalers that handle its products. Tools that are going across the country are usually shipped by rail. Regional shipments usually go by truck. National should use _______________ in practicing the Total Cost concept. a freight forwarder.122. The ABC company sells beach wear to teenagers. It plans to solicit sales from teens at the beach by taking van loads of beach wear to all the beaches in the United States each day of summer (June 22 – September 21st).The company has the beachware made in Thailand and shipped directly to it's vendors in the 40 major beach locations its targeted. The company believes it knows its market well enough such that the goods will be produced and shipped such that each vendor will receive only enough to fill the van each week. If their estimates are right, each van vendor will receive just enough goods to fill their van on Monday and have sufficient demand to sell all of it by the following Sunday. Then they will refill their van on Monday with the next order just arriving that day. If they are not as accurate as they hope to be, the vendors will not have sold all their inventory from the previous week and the new shipment will not fit into the van (along with the remainder of the previous weeks shipment). The vendors are then authorized to place whatever excess won't fit in the van into storage. Should the vendors plan to put their excess into rental storage or should they buy some storage space. rent storage space123. The ABC company's ability to stay ahead of the competition depends on its ability to differentiate its product from those of its rivals.The problem is: most consumers see the product as essentially no different than its competitors. ABC company uses an advertising strategy that positions the product as high on brand prestige and competitive on price. ABC distributes the product through every discount outlet that would normally carry it so as to insure consumers will have it to choose from when they shop. ABC's product strategy is to cut costs by making no changes to the product at all. The product's color, design, functionality, etc. hasn't changed in years.Yet, survey's show consumers perceive the product to be superior in quality to all of its competition. This is due to the intense advertising emphasis on product/brand quality! The company feels this type of product is unlikely to be replaced anyti me soon, so counts on it as an integral part of its product line in its long-term planning. Based on this information alone: What stage of the Product Life Cycle is this product in? maturity124. At what stage of the product life cycle is the firm broadening the base of their channel of distribution by shifting their focus from a pull to a push strategy?GROWTH125. During what stage of the PLC is the primary focus of the firm's promotional strategy on informing early adopters and early majority of the benefits of their product and persuading them that their product is better than the competition's? GROWTH126. A company has developed a long pen in various colors and with interesting sayings on the side. Directions provided with the pen show to to convert the pen to a reusable straw that is dishwasher safe when the ink runs out. What packaging strategy is in use here? PRODUCT127.In order to raise money to go to college, two high school senior entrepreneurs are marketing home-grown fruit s and vegetables to consumers along the roadside. The entrepreneurs know that home gardens often produce more than the families can consume. Knowing that the home gardner's appreciate earning a little cash for their excess, the entrepreneurs visit local home gardens to buy any excess they are producing. They collect a good assortment of freshly picked produce which they then sell by the side of the road from the back of their truckThus, the home gardner grew the fruits and vegetables, sold them to these entrepreneurs, who then sold them to the local people as they drove by on the road. The home gardners are using a(n) ________ method of distribution for their excess produce. an indirect channel of distribution128. Handy Tools Company has recently introduced a newly designed socket wrench with a form fitting no-slip grip. The firm is spending a lot of money to make potential consumers aware of the existence of the new product. Sales have been slow to rise over the past year and profi t has yet to be achieved.What stage of the product life cycle is Handy Tool's product in? Maturity stage129. A manufacturer of a consumer product is trying to establish brand recognition and preference in monopolistic competition. The firm places considerable emphasis on channel development and is becoming somewhat less selective in its choice of middlemen. Promotion is both informative and persuasive–as the firm is seeking to increase both primary and selective demand. Prices in the industry are competitive–but there has been little price-cutting to date. What stage of the product life cycle is this firm's situtation characteristic of: GROWTH130. A firm finds itself in a situation where it is unable to accurately predict consumer demand. Rather than risk stock-outs that might drive consumers to competitors, the firm decides to stockpile inventory close to market centers. This enables the firm to quickly replenish any store as necessary. What type of warehouse should t he firm use to store this inventory? PRIVATE131. An industry's sales have leveled off and profits are declining in oligopolistic competition. Consumers see competing products as â€Å"homogeneous. † Several firms have dropped out of the industry, but a new one entered recently.Firms in the industry are trying to avoid price-cutting by spending on persuasive advertising. These firms are competing in which stage of the product life cycle? MARKET MATURITY132. James River Paper (JRP) recently introduced Absorb, a new double-thick paper towel aimed at families with children. Primarily and industrial products manufacturer, JRP had produced paper towels for a few large grocery chains to sell as their own dealer brand. But Absorb was its first attempt at marketing a consumer product under its own brand. So far, results are not encouraging.Only a few wholesalers have taken on the line. Most are very reluctant to handle Absorb, claiming that retail shelves are already overcrowded with paper towels. What is the â€Å"ideal† market exposure for this product? INTENSIVE DISTRIBUTION133. A large food retailer acquiring a cheese factory is an example of: BACKWARD INTEGRATION134. Laurie Owens visits the local Healthy Glow spa, but dislikes the dirty dressing area and refuses to go back. This is an example of BRAND REJECTION135. What should your firm's brand loyaity objective be when it launches its newest (unknown) brand of bicycle next month? rand recognition136. Your firm sells automobiles. Each car comes with a 5-year – 50,000 mile warranty. These warranties are None of the above137. There are big shifts in demand from season to season for the lawn mowers produced by Grow Green Co. –and its need for storage facilities also varies. Grow Green should use: public warehousing facilities138. A marketing manager in Denver, Colorado who wants to ship small quantities (1,500 pounds) of relatively high-value products short distances at an economical cost where time is not a factor should use: trucks139.The Xyz company has developed a new hairdryer that fits more comfortably in the users hand through its using a rubber handle instead of the plastic used by other competitors. The marketing manager for this product needs to design a marketing mix to market it to its target market. The marketing manager should use which stage of the Product Life Cycle as the basis for developing this marketing mix? maturity140. Your product is packaged such that it is the package may be consumed by the buyer as if it were candy. Once the product is removed frm the package, the customer can eat it.What packaging objective is being sought here? PRODUCT141. Publishers of photography books find it is more cost-effective to publish specialty books targeted to just a few niche markets and print large quantities at a time than to print off just a few to meet on-going demand. Bookstores, knowing that their customers represent the broadest range of all niche-mar kets, order only a few copies of each book for each market to enable its customers to select from a wide variety. This example shows: (choose all that apply) j. Discrepancies of quantity . Discrepancies of assortment142. Zoecon Corporation sells its insect control chemicals to homeowners through an 800 number in which customers can order online and have delivered via UPS. A modified compound is sold to distributors who supply brands of aerosol bug spray to such companies as the Boyle-Midway Division of American Home Products for use in its Black-Flag Roach Ender brand. This is an example of: dual distribution143. Marissa, a college student and her father, a wealthy businessman, were each considering the purchase of a new automobile.As a college student with limited financial resources, Marissa feels that economy cars are all have essentially the same quality and only have minor differences in the features. She decided that the new mega dealership (over 1,000 cars on the lot (most in the economy class) provided the best place to start. With luck, she could drive one off that lot today. Marissa's father however, treats cars as a basic necessity. He doesn't care what he drives. He tells Merissa to buy two of whatever she gets (he'll call his bank to take care of the money for his).He buys a car like this every year (asking whomever he knows who's going car buying to pick up one for him (of whatever they are getting – price is no object) since he refuses to drive a ‘used' car. For Marissa, this automobile is a __homogeneous shopping____ product; for her father, the car is a ___a convenience good___________ product144. A new company introduces a new brand of a specialty product that's in the mature stage of the PLC. The product has a slow start as it competes head-on with its competition, but has such strong appeal after a short time hat it catches up fast then passes all other competitors. Eventually, discontinuous innovations take it out of vogue and its sales begin to fall. More and more competition erodes its market share. Soon, its hard for most people to remember if the product is still available. Later, most folks wouldn't know what kind of product you were talking about if you mentioned the brand to them. The most likely path this company experienced with respect to brand loyalty for this product from the moment the company's brand first appears on the market to its eventual demise is:? Assume the company makes no changes to the product from its i

“Is Reengineering and Strategy Implementation Just Another Management Fad or Does It Offer Something of Lasting Value?”

1. 0 Introduction Implementation is the challenge that comes at the end of all new (and old) methods for improving organizations. Strategic planning, architecture development, change management, total quality management, new information systems technologies, and re-engineering, are some of the concepts that are being advocated to effect a radical improvement organizational performance. Advocates of each concept, however, struggle when questioned about successful implementation (Deshpande and Parasuraman, 1986). Strategic planning literature abounds on how to develop a plan, but there is comparatively little said about how to implement a strategic plan once it is developed. Reengineering is a radical rethinking of an organization and its cross-functional, end-to-end processes (Hammer, 1993). After it’s introduction reengineering had taken corporations by storm. In a survey of over 500 chief information officers (CIOs), the average CIO is involved in 4. 4 re-engineering projects (Moad, 1993). Walmart (example 1) is seen as one of the successful executers of reengineering. Despite the excitement over reengineering, however, the rate of failure for re-engineered projects is over 50 per cent (Stewart, 1993). Hammer and Champy (1993) estimate as much as a 70 per cent failure rate. Luthfansa AG (example 2) is one such company. Such is the position that reengineering is labelled as a â€Å"management fad†. This paper looks to explore the facets of strategy implementation, reegineering that and analyze the label of â€Å"fad† is a worthy one or does the two offer a lasting value. 2. 0 Literature Review 2. The evolution of reengineering The concept of reengineering was first presented in two articles published simultaneously by Hammer (1990) and Davenport and Short (1990). Reengineering is a totally new approach with regard to the ideas and models used for improving business Hammer and Champy (1993). The reengineering approach is a result of the combination of concepts from different schools, including strategic IT systems, quality, systems thin king, industrial engineering, and technological innovation. The increasing power of ustomers, competitors and today’s constantly changing business environment, forced many organisations to recognise the need to move away from focusing on individual tasks and functions to focusing on more communicated, integrated and co-ordinated ways of work by looking at operations in terms of business processes (Davenport, 1993). 2. 2 Defining reengineering Several researchers and practitioners have defined reengineering in different ways with different emphases. The following are some of those definitions: the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed (Hammer and Champy, 1993, p. 32). †¦ a methodical process that uses information technology to radically overhaul business process and thereby attain major business goals (Alter, 1990, p. 32) . The fundamental rethinking and redesign of operating processes and organisational structure, focused on the organisation’s core competencies, to achieve dramatic improvements in organisational performance (Lowenthal, 1994, p. 2). During the last decade, many authors have produced ideas regarding what reengineering really is. And thus, to conclude that there is only a single theoretical proposition underpinning reengineering remains debatable. The following table shows that there are three recognisable perspectives to reengineering as suggested by Tinnila (1995), i. e. strategic, operational and organisational perspectives. [pic] Figure 1: Summary of definition of reengineering (Khong and Richardson, 2003) Despite the differences in definitions, and terminology, the emphasis in all hese definitions and in the reengineering -related literature, is on redesigning business processes using a radical IT-enabled approach to organisational change. 2. 3 The need for reengineering Re engineering is motivated by external drivers, internal drivers, or both. External drivers are related mainly to the increased level of competition, the changes in customers’ needs, IT changes, and changes in regulations (Grover etal. , 1993). Internal drivers are mainly related to changes in both organisational strategies and structures. External drivers The increasing level of competition in the global market has emphasised the need for organisational innovation to cope with global standards of products and services. reengineering is approached as a tool to improve dramatically business performance and provide competitive position (Schnitt, 1993). First National Bank of Chicago (example 3), reengineered in order to keep up with the stiff global competition Davenport (1993a), also believe that re-engineering is driven by the never-ending needs of customers to look for better services and products. IBM Credit Corp (example 4) reengineered primarily for satisfying the customer or providing superior customer service. Owing to the unsettled changes in the global business environment, social life, technological and organisational practices, and economical situations, new rules and regulations are introduced to reflect these changes (Plowman, 1995). Yellow Freight (example 5) decided to reengineer because of external factors related to governmental or political pressure. Internal drivers Many organisational strategic and structural changes are centred on IT-enabled reengineering (Venkatraman, 1993). Parcel Service (example 6), found that they had to improve their technology in order to survive in the competitive shipping business. Changes in organisational strategy may involve some reengineering efforts to bring about the new business desires (Keen, 1991). The desire to reduce cost was one major reason that led First National Bank of Chicago (example 7) to reengineer. Changes of capability in terms of processes, methods, skills competencies, attitudes and behaviours can also be considered as internal drivers (Plowman, 1995). Arco Chemical (example 8) is one such company who reengineered to achieve dramatic company-wide improvements, increase organizational efficiencies, and reduce throughput time. Plowman (1995) views business transformation as a journey driven by a strategy that links short-term changes to capability in terms of processes, skills and style, with long-term changes to position the business among its competitors and customers. Ryder System Inc (example 9). reengineering efforts began with a rethink of its view of the market and a readjustment of the company‘s strategic focus. The following is a figure showing the result of survey (example 10) on the factors that trigger reengineering in the UK [pic] Figure 2: Factors driving reengineering (Tennant and Yi-Chieh, 2005) The following is a figure showing the result of survey (example 11) on the goal and objectives meant to be achieved through reengineering in the UK [pic] Figure 3: Goals and objectives of reengineering (Tennant and Yi-Chieh, 2005) 2. 4 What characterises reengineering Focus on business processes Reengineering focuses on the core concept of business process rather than on function, product or service. As business processes are the manner in which work gets done within an organisation, they are a distinguishing characteristic among organisations (Venkatraman, 1994), and thus a significant factor leading to competitive edge (Hinterhuber, 1995). In addition, the elimination of functional bias can only be best done by adopting process orientation to gain substantial business improvement (Andreu etal. , 1997). By focusing on core activities, Singapore Airlines (example 12) reengineered efforts are expected to help Singapore grow 8-10 er cent per year until the end of the decade. Notion of radicalness Reengineering involves radical and fundamental changes, and it evolves from the need to recognise that long-established ways emphasising on control and cost cutting are being replaced by organisational focus towards improving quality, the customer, and innovation, rather than (Hammer, 1990). Honeywell Inc (example 13) in order to keep up with the global competition reenginerined their proc ess from being focused on efficiency to being focued on quality Use of IT Hammer (1990) considers IT as a major tool and a fundamental enabler of reengineering efforts and emphasises the need to use modern IT to support for its implementation. IT reshapes and creates new effective business processes in that it has the potential to facilitate the flow of information between globally-distributed processes, and ensures the availability of instantaneous and consistent information across the business (Tapscott and Caston, 1993). Western Provident (example 14) is a company which is spotted for extensive of technology. Need for organisational change Reengineering results in change, and successful reengineering implementation requires fundamental organisational change in terms of organisational structure, culture and management processes (Davenport, 1993a). CIGNA Technology (example 15) Services went through a cultural change, from a focus on technology to one on processes and business performance. Change management is a tool used to manage such a change. 2. 5 Reengineering approaches, methodologies, techniques and tools Reengineering approaches Reengineering approaches can be viewed based on the different focuses that reengineering efforts may emphasise: IT, strategy, quality management, operations, and human resources (Edwards and Peppard, 1994a). According to Klein (1994), Reengineering is contextual and believes that having a structured approach to it is impossible. Reengineering methodologies Caterpillar (example 16) tied much of its cost saving success to its reengineering methodology (Paper and Dickinson, 1997). Its methodology is systematic as it provides a disciplined problem-solving approach and acts as a rallying point for everyone involved along the process path. Many structure-based methodologies have been proposed for reengineering implementation. However, most have common elements and view reengineering efforts as a top-down implementation project (Earl and Khan, 1994). Figure 4 summarises the major stages of eight representative reengineering methodologies. Figure 4: Reengineering methodologies [pic] (Kettinger et al. , 1997) Despite the differences among these methodologies, they all confirm that some essential components must exist, such as: †¢ strategies and goals setting; feasibility analysis of a reengineering project; †¢ process analysis and visioning; †¢ top management commitment and sponsorship; †¢ understanding of customer requirements and performance measurement; †¢ integration with TQM and benchmarking; †¢ recognition of IT capabilities; †¢ cross-functional teams and communication; †¢ prototyping and process mapping techniques; and †¢ organisational change to re-engineer management s ystems and organisation. Reengineering techniques Kettinger etal. (1997) show that at least 72 techniques are used to carry out ctivities related to reengineering projects. These techniques were almost all developed in other contexts and imported to the reengineering field. Each technique is mapped to their associated stages in the reengineering framework. and describe some as representative of each stage in the framework. [pic] Figure 5: Framework for Reengineering (Kettinger et al. , 1997) Kettinger etal. (1997) also suggest an approach of selecting techniques for a specific reengineering project. This approach, however, presumes that a customised methodology has been developed in advance. Based on the objective of their application, he identify 11 groups under which a number of techniques are identified. [pic] Figure 6: Groups of reengineering technique (Kettinger et al. , 1997) 2. 6 Strategy implementation Bartlett and Ghoshal (1987, p. 12) noted that in all the companies they studied â€Å"the issue was not a poor understanding of environmental forces or inappropriate strategic intent. Without exception, they knew what they had to do; their difficulties lay in how to achieve the necessary changes†. Supporting this, Miller (2002) reports that organizations fail to implement more than 70 percent of their new strategic initiatives. Given the significance of this area, the focus in the field of strategic management has now shifted from the formulation of strategy to its implementation (Hussey, 1998). There is no agreed-upon and dominant framework in strategy implementation. Concerning this, Alexander (1991, p. 74) has stated that: One key reason why implementation fails is that practicing executives, managers and supervisors do not have practical, yet theoretically sound, models to guide their actions during implementation. Without adequate models, they try to implement strategies without a good understanding of the multiple factors that must be addressed, often simultaneously, to make implementation work. Warid Telecom (example 17) precisely fail to their process for this reason when they started operation in Bangladesh According to Alexander (1985), the ten most frequently occurring strategy implementation problems include underestimating the time needed for implementation and major problems surfacing that had not been anticipated, in addition uncontrollable factors in the external environment had an adverse impact. Beer and Eisenstat, (2000) states that top-down/laissez-faire senior management style; unclear strategic intentions and conflicting priorities; an ineffective senior management team; poor vertical communication; weak co-ordination across functions, businesses or borders; and inadequate down-the-line leadership skills development are also important reasons for implementation failure . It is recognised that such change requires a shared vision and consensus and â€Å"failures of strategy implementation are inevitable† if competence, coordination and commitment are lacking (Eisenstat, 1993). Biman Bangladesh Airlines (example 18) has been in totters for the last decade due to its poor strategy implementation which can be credited to the above reasons. Noble (1999b, p. 132) has further noted that: There is a significant need for detailed and comprehensive conceptual models related to strategy implementation. To date, implementation research has been fairly fragmented due to a lack of clear models on which to build. There are important similarities between the previous frameworks in terms of the key factors forwarded and the assumptions made. Similarities between frameworks that previous researchers have grouped the implementation factors into a number of categories as follows: †¢ context, process and outcomes (Bryson and Bromiley, 1993); †¢ planning and design (Hrebiniak and Joyce, 1984); †¢ realizers and enablers (Miller, 1997); †¢ content, context and operation (Dawson, 1994); †¢ content, context, process and outcome (Pettigrew, 1987; Okumus, 2001); †¢ framework and process components (Skivington and Daft, 1991); †¢ context and process (Schmelzer and Olsen, 1994); †¢ contextual, system and action levers (Miller and Dess, 1996). Four areas of groupings emerge from an analysis of the above categories. Considering the role and characteristics of each implementation factor, those 11 implementation factors identified earlier can further be grouped into four categories: strategic content, strategic context, process and outcome. †¢ Strategic content includes the development of strategy. †¢ Strategic context is further divided into external and internal context. The former includes environmental uncertainty and the internal context includes organizational structure, culture and leadership. Operational process includes operational planning, resource allocation, people, communication and control. †¢ Outcome includes results of the implementation process. [pic] Figure 7: Framework for strategy implementation (Okumus, 2001) 2. 7 Factors related to implementing reengineering The following analyses the reengineering implementation process by reviewing the relevant literature on reengineering efforts. They are categorised into a number of subgroups representing various dimensions of change related to reengineering implementation. These dimensions are: Factors relating to change management systems and culture Change management, which involves all human- and social-related changes and cultural adjustment techniques needed by management to facilitate the insertion of newly-designed processes and structures into working practice and to deal effectively with resistance, is considered by many researchers to be a crucial component of any reengineering efforts (Carr, 1993). Effective communication throughout the change process at all levels and for all audiences, is considered a major key to successful reengineering -related change efforts (Davenport, 1993). Discontinues in leadership, and lack of communication contributed the reengineering failure at Teleco (Example 19) As reengineering results in decisions being pushed down to lower levels, empowerment of staff and teams to establish a culture in which staff at all levels feel more responsible and accountable and it promotes a self-management and collaborative teamwork culture is critical for successful reengineering (Mumford, 1995). Empowerment was at the heart of reengineering Honeywell (example 20) when they reengineered. Training and education in reengineering -related concept, skills, and techniques as well as interpersonal and IT skills, are an important component of successful reengineering implementation (Zairi and Sinclair, 1995). FixCo (example 21) carried out a number of workshops for training the staff about their reengineering process. Factors relating to management competence Sound management processes ensure that reengineering efforts will be implemented in the most effective manner (Bashein et al. , 1994). The most oticeable managerial practices that directly influence the success of reengineering implementation are top management support and commitment, championship and sponsorship, and effective management of risks. Organisational culture influences the organisation’s ability to adapt to change (Hammer and Champy, 1993). It helps in understanding and conforming to the new values, management processes, and the communication styles (Bruss and Roos, 1993).. Corporation ABC (example 22) needed to create an organizational culture ready to change as they had to redesign their quality systems. Commitment and leadership in the upper echelons of management are often cited as the most important factors of a successful reengineering project (Rastogi, 1994). Sufficient authority and knowledge, and proper communication with all parts in the change process, are important in dealing with organisational resistance during reengineering implementation (Hammer and Champy, 1993). Top level commitment was the key for successful implementation of reengineering in Blue Shield California (example 23) Factors relating to organisational structure As reengineering creates new processes that define jobs and responsibilities across the existing organisational functions (Davenport and Short, 1990), there is a clear need to create a new organisational structure which determines how reengineering teams are going to look, how human resources are integrated, and how the new jobs and responsibilities are going to be formalised. Mobil Oil (example 24) had a rethink of there organizational structure in their reengineering. Cross-functional reengineering teams are a critical component of successful reengineering implementation (Johansson et al. , 1993). Teams should be adequately composed (Hagel, 1993). Team members should be experienced in variety of techniques (Carr and Johansson, 1995). Teams should be made up of people from both inside and outside the organisation (Hammer and Champy, 1993). Liberty Mutual (Example 25) used cross-functional teams and loss prevention expert to implement the reengineering process Factors related to reengineering project management Successful reengineering implementation is highly dependent on an effective reengineering programme management which includes adequate strategic alignment, effective planning and project management techniques, identification of performance measures, adequate resources, appropriate use of methodology, external orientation and learning, effective use of consultants, building process vision, effective process redesign, integrating reengineering with other improvement techniques (Zairi and Sinclair, 1995), and adequate identification of the reengineering value (Guha et al. 1993). Honeywell (example 26) would be a prime example in their execution of redesigning their quality measures. As corporate strategy determines objectives and guidance on how organisational capabilities can be best utilised to gain competitive position, reengineering strategy (Hammer, 1990). Therefore, a consideration of the strategic context of growth and expansion (Bashein et al. 1994), creating a top-level strateg y to guide change (Carr, 1993), and careful alignment of corporate strategy with reengineering strategy (Jackson, 1997) are crucial to the success of reengineering efforts. Mitsibushi Electric Corp (example 27) took immense heed in this factor. Factors related to IT infrastructure Factors related to IT infrastructure have been increasingly considered by many researchers and practitioners as a vital component of successful reengineering efforts (Brancheau et al. 1996). Effective alignment of IT infrastructure and reengineering strategy, building an effective IT infrastructure, adequate IT infrastructure investment decision, adequate measurement of IT infrastructure effectiveness, proper IS integration, effective re-engineering of legacy IS, increasing IT function competency, and effective use of software tools are the most important factors that contribute to the success of reengineering projects. Connecticut Mutual Life (example 28), reengineered their complete IT infrastructure in order to increase productivity. Figure 8: Factors related to the implementation of reengineering (Al-Mashari and Mohamed, 1999) 2. 8 Definition of fad Management fads are defined as â€Å"managerial interventions which appear to be innovative, rational, and functional and are aimed at encouraging better organizational performance. † 2. 9 Characteristics of fads Cost/benefit analysis: One moderator of fad evolution is the cost/benefit of the intervention, although these two variables may significantly differ depending upon whether the organization adopts a short-term or a long-term perspective (Laverty, 1996) as with a long-term perspective may be more likely to sustain and give a fad sufficient time to reap positive benefits, propelling it to trend or collective wisdom status. But short-term gains should also be evident to encourage the resilience needed for long-term rewards to be realized (Chaudron, 1996). Degree of difficulty in implementation: Differences between expected ease of implementation and actual ease of implementation will contribute to an organization’s desire to persist in the courses of action required by the fad. If a fad’s implementation process is no more difficult than expected, it is more likely to evolve into a trend. Effectiveness of the fad: Effectiveness is measured in terms of realized improvement in operational performance. Following adoption of a fad, firms may find themselves â€Å"incapable†, â€Å"effective†, â€Å"efficient†, â€Å"best-in-class†, or â€Å"world class†. Fads which assist organizations in moving upward on this continuum will likely become institutionalized and mature into a trend or collective wisdom. 2. 10 Life cycle of a fad A significant predictor of whether firms will likely adopt fads is the stage at which the intervention is located in the life-cycle of fads. Fads typically progress through an established life-cycle (Ettorre, 1997), although the length of time required for progression to each of these stages varies (Crainer, 1996). offers significant benefits, in terms of both number and strength; †¢ is adaptable to the specific needs of an organization; †¢ addresses the underlying cause of a problem rather than a symptom; †¢ fits with other common interventions and programs in place (for example 29, TQM and MBO programs are antithetical in that their basic tenets are contradictory); and †¢ is supported by key users and proponents, as well as by objective assessments of effectiveness 3. 0 Strategy implementa tion and reengineering in practice The case of Honeywell’s TotalPlantTM paradigm† 3. 1 TotalPlantTM at Honeywell The Honeywell industrial automation and control (IAC) plant designs world-class systems that enable process-control capability. In 1999, senior management decided to implement a solid ISO 9000-certified quality program in order to unify business and control information to enable global customer satisfaction. This program was named TotalPlantTM. Four critical principles The TotalPlantTM paradigm is based on four critical principles of success: (1) Process mapping. Process mapping is crucial for employees to see the â€Å"big picture† as opposed to focusing solely on their role within the procedure. It also creates a common language for dealing with changes to business processes. (2) Fail-safing. While process mapping diagrams the entire flow of a business process, fail-safing is done to diagnose a defect within the process. (3) Teamwork. Teamwork does not occur naturally. Honeywell encouraged teaming through special workshops, by creating a manufacturing vision that fostered teamwork and by endorsing cross-training. 4) Effective communication skills. Communication of the TotalPlantTM vision is paramount to success. Honeywell provided conflict resolution training to teams to help them deal with conflict in a positive way. (Paper et. al, 2001) 3. 2 Application of literature Honeywell learned a number of lessons as a result of their TotalPlantTM program, all of which have implications for any future initiatives. They discovered that: †¢ people are the key enablers of change; †¢ you must question everything; †¢ people need a systematic methodology to map processes; †¢ creating eam ownership and a culture of dissatisfaction ensures more employee involvement; †¢ management attitude and behavior can squash projects; †¢ bottom-up or empowered implementation is most effective; †¢ reengineering must be business-driven and continuous; †¢ setting stretch goals can facilitate greater employee effort; †¢ implementation is the real difference between success and failure. Change is a fundamental aspect of reengineering. Top management needs to communicate to its people why the change is necessary and how it will impact everyone’s current job and future with the company. Sufficient time and resources is dedicated to ensuring that the organization as a whole understood, wanted and supported change. 4. 0 Conclusion and recommendation Implying the term â€Å"fad† with reengineering is apparently a disputable issue. If taken into context of the definition and characteristics a fad has, reengineering does hold a number of features that creates an aura which surrounds a fad. Its pledge of being strategy which improves performance by improving productivity and efficiency and its disguised nature of the ease of implementation does engender staggering semblance to that of a fad. Moreover, there are issues where reengineering would probably fall short when it comes to its exploitation as a trend. Reengineering normally wouldn’t fit into an organization culture, in contrary the management is forced to create new culture where in order to adopt reengineering. Conversely, reengineering does also contain features that are a requisite for being a trend or wisdom. If implemented aptly, reengineering does provide significant benefits that simply can’t be ignored. Its association with improvement in efficiency, productivity, and quality of product or service, is an asset that any company would desire to attain. Furthermore, reengineering does address the underlying cause of the problem and with the support and commitment of top management in its implementation process it can provide a lasting value to a business. Hallmarks, Hewlett-Packard (example 30) are to name a couple of companies who have benefited from reengineering. What really made the difference is proper implementation. 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