Business for Transport - Essay Example

?Business for Transport Question 2: a) Explain Michael Porter's principle of 'differentiation' as a generic business strategy Introduction To begin with, Michael Porter’s principle of differentiation is based on the premise of bringing out differences between the products in varied ways to make sure that the business is competed within successfully. The differentiation strategy within the business realms focuses on the aspect of understanding that target customer segments are not price sensitive and when there is the significant discussion of market being competitive or saturated in its form. Then again, it serves the markets in a better way if the customers have peculiar needs and requirements which are not being looked after well. These are the times when the organizations have unique resources and skills which help to satisfy the needs and requirements in specific mannerisms that are difficult to emulate. Michael Porter’s principle of differentiation is therefore something that takes a great amount of understanding before it could be deciphered in the most apt way. The generic business strategy regimes play their roles well so that the differentiation factor is embedded in a proper way. What differentiation does in essence is to get the message straight to the generic business hubs that it is there for creating the vital difference which will rule the roost within business at the end of the day. The target markets would be given the best possible solution in terms of the differentiation strategy because it helps shape up the business realms from a number of different angles. The differentiation strategy is always a good undertaking because it offers the business the alternatives that are much desired and which shall bring in the sound results in the long run scheme of things. Since differentiation is entirely dependent on the intricate details of the products themselves, it would be important to make a note of the generic business realms before delving into such discussions. The differentiation strategy helps the products to compete in such a manner that success is written all over it. This is so because the differentiation aspects are focused on highlighting the exact changes that could be mustered up within the products, and how these would embody accomplishment for the specific business hubs. There are the two different variants which are termed within the differentiation strategy. These include the shareholder value model which signifies the timing of the use of the specialized knowledge which creates a differentiation advantage until the knowledge remains distinctive. Similarly, the unlimited resources model within the differentiation strategy makes use of a large base of resources which allows an organization to outwit the competitors (Porter, 1998). The differentiation strategy is applicable within the domains of the broad market scope and uniqueness competency which remain significant nonetheless. Some of the most successful examples of the differentiation strategy which have been employed within the generic business realms of present times include the Asian Paints, Apple Computer, Mercedes-Benz, Hero Honda, HLL and Nike. Conclusion Michael Porter has basically described a category which consists of three different types of strategies which are in common use, and among these, differentiation strategy remains one of the most sought after within the generic business discussions. The strategy coined by Michael Porter is a comprehensive one which encloses quite a few significant pointers – all of which suggest one determinant within the business realms or the other. b) Critically assess the concept of differentiation and its relevance to business strategy in the transport and travel sector, with reference to EITHER luxury hotel train companies (e.g. Orient Express), OR cruise shipping companies (e.g. Royal Caribbean). Introduction Differentiation within the business strategy of Royal Caribbean is such that it has 5 different brands running under its folds. One more brand is under construction at the moment. The differentiation strategy of Royal Caribbean is such that it has 5 different classes of ships which cater to the wants and desires of the customers who are on the cruise all over the world. These include the Oasis Class which has two vessels – Oasis of the Seas and Allure of the Seas. Both have a capacity of 6,360 individuals and 16 decks apiece. The Freedom Class has three vessels – Freedom of the Seas, Liberty of the Seas and Independence of the Seas. Each of these vessels has a capacity of 4,375 with 15 decks for all. The Voyager Class has differentiation in the fact that it has five vessels where the first two – Voyager of the Seas and the Explorer of the Seas can hold more than 3,840 people within them, while Adventure of the Seas, Navigator of the Seas and Mariner of the Seas have a capacity of 3,807. The Radiance Class has four vessels – Radiance of the Seas, Brilliance of the Seas, Serenade of the Seas and Jewel of the Seas, all of which have a capacity of 2,502 people. The Vision Class has six vessels – Legend of the Seas and Splendor of the Seas (with 2,074 people each), Grandeur of the Seas (2,440 people), Rhapsody of the Seas (2,416 people), Enchantment of the Seas (2,730 people) and Vision of the Seas (2,416 people). The differentiation strategy comes about in full circle with the Sovereign Class which has another two vessels – Monarch of the Seas and Majesty of the Seas with 2,766 and 2,767 people respectively as capacity within them. The different cruise ships offer business the possibilities that it requires for its own self. These cruise ships (vessels) make sure that different user facilities are on offer and hence price range for tickets are varied. The gross tonnage of the different classes within the Royal Caribbean umbrella is distinctive, where it is 225,282 for the Oasis Class, while 154,407 for the Freedom Class. Similarly, it ranges from 137,276 to 138,279 within the Voyager Class and fixed at 90,090 for the Radiance Class. Within the Vision Class, this gross tonnage ranges from 69,130 to 82,910 and in Sovereign Class, it resonates between 73,937 and 74,077. The differentiation strategy is also apparent in the case of the length of the cruise ships, the maximum beam, the cruising speeds, the number of decks and so on. The relevance with the business strategy of the Royal Caribbean is such that the transport and travel sectors are being accommodated in a manner which is reasonable with the respective settings. This helps shape up the different markets of the Royal Caribbean as well as helps it in comprehending how the business shall shape up in the long term. Since the Royal Caribbean holds nearly 26% of the world’s cruise market, it is significant to pinpoint this business within the reigns of the differentiation strategy. Conclusion The differentiation strategy works to good effect within the business realms and more so if the discussion centers on the premise of transport and travel regimes. It is important that the Royal Caribbean understands how its vessels are segmented across a number of markets and for the selected target audiences. Therefore it is a good practice to think of the people in different settings and then move ahead further with the Royal Caribbean’s business undertakings. Question 4: a) What did Gareth Morgan mean by his metaphor of a 'machine' organization? In what circumstances might this offer an appropriate model for organizing commercial businesses in the transport and travel sector? Introduction Gareth Morgan suggests that an organization works like a machine. The different processes and activities within it work like inputs and outputs, and there are elements related with maximizing production and bringing in efficiency so that it remains the driving force within the processes run in an organization. He suggested that when things go along well in an organization, it seems like running in clockwork and as a well-oiled engine and even an assembly line. This machine organization is essentially driven by efficiency regimes, which have little wastage as such realms, cannot be afforded at any cost. Maintenance needs to be the key as Gareth Morgan puts it because it helps in having an order which is systematic and all the cogs in a wheel are working along fine. Gareth Morgan’s machine organization suggests that it is so difficult to break the chain of the machine organization within the everyday lives of the people that organizing it in some other way seems impossible. In his understanding, there could be three different ways to continue with the same. These include the basis of showing many traditional ideas and beliefs about organization and management which are based on a smaller number of images and varied metaphors. Also this could be done through an exploration of a number of different metaphors so that new ways are created towards thinking about organizations. In addition, according to Gareth Morgan, this could be done through demonstrating how metaphor can be employed to diagnose and analyze as well as to enhance and improve the management and design domains of the organization. When it comes to commercial businesses in the transport and travel sector, the machine label for the organizations could be understood in the most apt sense. This is because processes are bound to be completed one after the other, and hence success can only be attained when there is a synergy within such efforts and endeavors. This has been depicted through the understanding that has been reached upon by Gareth Morgan (Morgan, 1997). The different metaphors that he has used with regards to organizations include the machines, the organisms, the brains, cultures, political systems, psychic prisons, flux and transformation, and lastly the instruments of domination. These are studied in-depth within the transport and travel sector as work is allotted to be done in a synchronous way. There are fixed patterns of organizational analysis, as penned down by Gareth Morgan. Any commercial business in the transport and travel sector would dearly appreciate if the organization is being run in a machine-like fashion, and if its processes are receiving respect by all concerned. Conclusion The metaphor of machine organization is such that it helps the organization from fast-tracking its own activities and processes. These are important because these outline the need for remaining proactive and head-on with the processes which are rampant in an organization. The transport and travel sector therefore receives the brunt of the machine organization ideology when the processes are not being carried out in an ideal way, and when there are serious and gross mishaps happening every now and then. b) With reference to ONE mode (road, rail, sea or air), critically assess the shortcomings of machine-like organizations in the transport sector from a business strategy perspective. Introduction Within the sea mode of transport, the business strategy perspective comes about in full circle when the machine-like organizations are doing their works in unison with the varied processes and actions. The sea mode of transport is being run in such a manner that there are more automated works than the human interventions which can be possibly studied. This is because under the influence of the transport and travel sector, having a machine-like organization will do the trick for the long term success. The business strategy perspective is given importance because the machine ideology makes the entire process look automated, without any human intervention at any end. The shortcomings of machine-like organizations within these sectors are all the more significant to understand because often times it has been seen that these lack the required skills that the human intervention domains could bring in essence. Within the shortcomings of the machine-like organizations under the realms of the transport and travel sector, one can see that the future of transportation is indeed exciting as it encompasses a number of different undertakings, all coming under the technological heading (Gopal & Cline, 2007). This means that transportation will change so much so that it will be fully dependent on the use of technology and the human angle will either be missing or the same is going to be minimal at the best of times, a fact that has been addressed time and again by the incorporation of the machine-like organizations. This is both a point of advantage as well as a drawback since humans must not let go of anything under their control. Technology should always be under the guidance and control of the humans and there must not be any compromise on this issue, which could easily be compared with the understanding of the machine-like organizations. The point of disadvantage comes out in the open since the machine-like organization discussion is very central to the premise of bringing about a change in the vision and strategy of the organizations in the time and age of today. However, these shall touch upon the salient points more and more because there is a lot of learning at stake here. It will make things shape up properly and allow the transport and travel sector to develop in a manner that is in line with the requirements of the relevant industrial settings. The transport and travel sector has a lot of covering up here because the machine-like organization philosophy might not always be true for them (Lakoff & Johnson, 1980). There are bound to be serious shortcomings which are in terms of the fiscal results, the economic problems and so on and so forth. In essence, the discussion that raises the point of the machine-like organizations doing their bit seems like a flawed one, and this should be handled in a proper way by the top management gurus present in an organization, all said and done, and more specifically within the areas of sea transport where much learning must be carried out and that too in a quick enough way. Conclusion Sea mode of transport is an important one as it touches upon quite a few significant areas. It is important to understand that sea mode of transport undertakes the business strategy realms in a way that the business operations are run smoothly. The role of the technology is an important one because it ensures that the sea mode of transport is handled in a proper and adequate way. References Gopal, G. & Cline, S., 2007. Driving towards sustainable profitability: transportation service providers and customer relationship management. Supply Chain Management: An International Journal, 12(2) Harrison, J. S., 2009. Foundations in Strategic Management. South-Western College Pub Lakoff, G. & Johnson, M., 1980. Metaphors we live by. University of Chicago Press McNamee, P., 1998. Strategic Market Planning: A Blueprint for Success. John Wiley & Sons Morgan, G., 1997. Images of Organization, Sage Porter, M., 1998. Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press Read More