Introduction
The world is constantly changing which affects consumers’ demand for goods and services. Companies have to deal with heterogeneous trends not to lose clients as well as to acquire new ones (Bai et al, 2019). As a part of my business and economics course, I have researched a paper on changing customer demands and methods of coping with it by Smith from Aeronautical University. The purpose of this paper is to understand what measures can be taken by companies to adapt their products to customers’ demand and to define the application areas, methodologies, and planning levels of the work.
Knowledge/Application Area 1: Customer Relationship Management
The research paper under analysis fits within the knowledge application area of customer relationship management because, according to the author, customers are who encourage enterprises to adapt to trends. To make the right decision on a change in products and services and subsequently implement innovations, a business should first research customers’ demands (Fornell et al., 2020). This refers to the sphere of customer relationship management that includes interacting with current by collecting data on customer’s history with the company analyzed with a special focus on cases of retention.
Knowledge/Application Area 2: Production, Planning, Scheduling, and Control
The other knowledge application area that suits the report analyzed is production, planning, scheduling, and control. The ground for my assigning it to this category is that Smith’s objective was to analyze the methods for companies’ staying popular at the market and review examples of successful enterprises. According to upcoming trends, appropriate changes should be planned and implemented by company management in the production of goods. At this stage, scheduling and controlling the whole process are also necessary for the alternations of the business to have a positive effect.
Methodology 1: Other Descriptive Models
The paper emulates the methodology of descriptive models because in his work, Smith reviews and describes measures taken by companies to cope with the changing consumer demand. The author cites Prajogo who regards the innovative approach as the key component for monitoring clients’ preferences and providing them with the goods and services desired (Smith, 2017). Besides, according to Smith, letting clients choose the level of service is also effective. In addition, Smith writes about the steps of businesses that have stayed successful at the market for a long time (Smith, 2017). The examples of such companies described by Smith are Samsung and McDonald’s. Samsung utilizes its resources effectively and partners with other businesses while McDonald’s creates new products often and offers its customers discounts and bonuses (Smith, 2017). Hence, it might be concluded that one of the methods used by Smith in the paper under analysis belongs to descriptive models.
Methodology 2: Optimization Modeling and Solution Techniques
Methodology of optimization modeling and solution techniques also fits the work on changing clients’ demand and appropriate measures to cope with it. This type of methodology suggests finding better variants for business processes and improving them in accordance with the needs of a company (Tsadikovich et al., 2016). Smith’s findings in this paper and the results of his work might be used by an enterprise that wants to stay attractive to customers.
Planning Level 1: Strategic
The planning level of strategy is demonstrated in the work on the heterogeneous demand by Smith. A part of strategic planning is analyzing businesses and selecting realistic goals which Smith does in his paper. As mentioned above, the author has reviewed and analyzed the ways that an enterprise can incorporate for dealing with the altering demand of consumers. Staying successful in the market is a realistic objective for a business that can be achieved by implementing the methods described.
Planning Level 2: Operational
In the paper under analysis, the planning level of operational is also represented. In fact, at this level, the key actions are identified. It also demonstrates what the conditions for achieving the goal set are (Achahchah, 2018). The marketing strategies reviewed by the author include implementing an innovative approach, cooperating with other companies, using current resources in a smart way, and offering customers new products and discounts regularly. Under favorable business conditions, acting according to the strategies can help a company to achieve the goal of adapting to changing customers’ demands.
Case 3-1: eBay’s Outsourcing Strategy
Due to an increasing number of business tasks, outsourcing has become a common practice among large companies. As a part of my business and economics course, I have researched a work that analyzes the case of eBay and the company’s outsourcing strategies. The purpose of this paper is to understand eBay’s approach and to define the application areas, methodologies, and planning levels of the case study.
Knowledge/Application Area 1: Procurement, Sourcing, and Outsourcing
The research paper under analysis fits within the knowledge application area of procurement, sourcing, and outsourcing because the paper reviews eBay’s practice of hiring a party outside the company to accomplish its business tasks. Even though the strategy of outsourcing has its advantages and disadvantages, eBay only benefits from using it because it is not a physical merchant (Smith, 2017). This allows the business to transfer tasks like dealing with e-mails effectively (Smith, 2017). Nevertheless, eBay should be particularly cautious with the use of its customers’ data by third parties and hire only reliable companies.
Knowledge/Application Area 2: Customer Relationship Management
The other knowledge application area that suits the report analyzed is customer relationship management. The reason for my assigning the case study to this category is that eBay uses outsourcing mainly for transferring customer support tasks to other companies. Despite the scheme being effective, the enterprise should be particularly cautious with making its clients’ data available to third parties not to violate customers’ rights.
Methodology 1: Other Descriptive Models
The paper emulates the methodology of descriptive models because, in the work under analysis, Smith reviews the ways of using outsourcing implemented by eBay. According to the author, the strategy plays a significant role in the enterprise because it provides personnel of the company. The author describes the advantages of outsourcing for eBay and concludes that the business should not follow other companies’ examples by decreasing outsourcing.
Methodology 2: Optimization Modeling and Solution Techniques
Methodology of optimization modeling and solution techniques also applies to the paper on eBay’s outsourcing. Methodology of this type suggests analyzing the business processes of a company and finding ways to improve them (McIvor, 2016). In his work, Smith does so by analyzing the current situation with eBay and subsequently suggesting its implementing Build, Operate, Transfer (BOT) strategy proposed by Dalton.
Planning Level 1: Strategic
In the work reviewed, the planning level of strategy is demonstrated. Within strategic planning, a company’s activities are analyzed and described. In his paper, Smith explores the strategy of outsourcing incorporated by eBay. As mentioned above, he points out the pluses and minuses of the enterprises hiring third parties mainly for providing customer support. Therefore, it might be stated that the steps were taken by the author fall under the planning level of strategic.
Planning Level 2: Operational
The other planning level that suits the paper by Smith is operational. Within operational planning, the most important steps for the improvement of the business processes are usually identified (Liu et al., 2017). The author describes Dalton’s BOT strategy that eBay may use to optimize its performance. It is a hybrid of two strategies that allows eBay to decrease risks and control all the work done by third parties (Smith, 2017). Although there are no successful examples of the implementation of the strategy yet, eBay might become the first one because it differs from other businesses by its organization.
References
- Achahchah, M. (2018). Lean transportation management: Using logistics as a strategic differentiator. CRC Press.
- Bai, J., So, K. C., Tang, C. S., Chen, X., & Wang, H. (2019). Coordinating supply and demand on an on-demand service platform with impatient customers. Manufacturing & Service Operations Management, 21(3), 556-570.
- Fornell, C., Morgeson, F. V., Hult, G. T. M., & VanAmburg, D. (2020). Customer Expectations: What Do Your Customers Demand?. In The Reign of the Customer (pp. 25-39). Palgrave Macmillan, Cham.
- Liu, S., Wang, L., & Huang, W. W. (2017). Effects of process and outcome controls on business process outsourcing performance: Moderating roles of vendor and client capability risks. European Journal of Operational Research, 260(3), 1115-1128.
- McIvor, R. (2016). An analysis of the application of process improvement techniques in business process outsourcing. International Journal of Quality & Reliability Management.
- Smith, X. (2017). Case 3-1: eBay’s outsourcing strategy. Embry-Riddle Aeronautical University.
- Smith, X. (2017). Written assignment 3 (PLG1). Embry-Riddle Aeronautical University.
- Tsadikovich, D., Levner, E., Tell, H., & Werner, F. (2016). Integrated demand-responsive scheduling of maintenance and transportation operations in military supply chains. International Journal of Production Research, 54(19), 5798-5810.