Strategic Management at Mitsubishi Motor Sales of America Inc - Assignment Example

Case Study Introduction In any organization strategic management plays one of the pivotal roles in making the company grow and rake up revenues in terms of its product line. Central to everything that a company does is efficient customer management, quick handling of the customer grievances and proper inventory management. This is mostly done by having foolproof customer relationship management systems in place. This paper talks of one such company, Mitsubishi Motor Sales of America Inc, and tries to delve deep into how effective they have been putting the system in practice. Summary This paper essentially looks at four different aspects of customer relationship management. One is key applications of the company’s CRM, various components and their purpose. Second is the benefits the organization has derived from the system; the third being how effective has the CRM been. And the fourth being how effective the system has been in mitigating both employee and customer issues originating, apart from many other quarters, in the customer service centres too. . Question 1 The strategy that has been adopted by the company of Mitsubishi Motor Sales of America Inc has helped ensure that the company is able to address the needs of its customers in a well managed and cost effective manner. There were a number of changes that were made in the system of CRM, that is, Customer Interactive Management to ensure that an effective system was established, which helps the company serve the needs of the customers in a more effective manner. The changes that have been bought about in the CRM have been carried out to ensure that the overall services that are provided are more technologically advanced, and can meet the needs of the customers effectively (Bernays E, 1945). There have been two main changes bought about in the system of CRM in the company over the years. The most significant change that has been bought about in the CRM is the rearrangement of the call centre system and greater training of the HR in the various fields to ensure that the entire process can become more flexible and effective (Williams, Jacqueline & Anderson, Helen, 2005). It has been observed that the role of the system is such that the management ensured that there was outsourcing of the calls greater segregation and categorization of the options from which the customers could choose from, and training of the employees in multiple areas so that greater flexibility could be adopted within the system (Birkin, M, 1994). This led to ensuring that there was increased understanding of the needs of the people and a more integrated and efficient system was established. There was carried out the recording of the calls of the customers to the executives (Williams, Jacqueline & Anderson, Helen, 2005) so that there could be established a greater understanding of the needs of the customers (Gilmore, James & Pine11, Joseph, 2002). The reviews were carried out by the managers and then the training of the executives was carried out on the basis of this, allowing for greater training and development possibilities for the employees in the long run (Dekel, Prince and Beaver, 2000). The second change that has been bought about the system in CRM is that there has been a greater amount of technological changes bought about in the functioning. Marketing studies the market and the changes that are occurring and changes according to them. Modern and post modernistic marketing has evolved with the development of the economy and social structure. Technological changes also have to be taken into account. (Rouse Jonathan 1999). As rapid changes are occurring in the world market in terms of knowledge and technologies, it has become very important to for organizations to constantly perform Training and Development at various levels such as; Organizational Level, Occupational Level and Individual Level. Mitsubishi has ensured that it is able to incorporate this into their system, and increase their commitment to integration of new technologies into their system of functioning so that the functioning becomes more effective and economic (Boles, James et al, 2000). Training the HR in this allows them to ensure that the performance also increases with the increased implementation of advanced technology. Question 2 It has been observed that the role of the CRM that has been adopted by the company of Mitsubishi Motor Sales of America INC, is one which has benefitted the company to a large extent and has allowed the management to gain a greater amount of control of the system of CRM in the company, where there has been space provided for integration of new technologies (Gummesson, E, 2002) and also for critical analysis of the working of the executives and the process of integration and communication with the customers of the organization. This has helped the management realize the basic need of communicative marketing as the system of marketing is today demanding that there is lack of effective marketing strategy (Gray, James G., Jr, 1986). It is only with the changes in the management theories that more attention was paid to the human resources, and new theories in relation were evolved. There has been observed that in the recent times, the strategic human resource management has become exceedingly important in all organizations (Heig M, 2003). Yet there has been observed that there have with time experienced changes in the relationship those companies’ shares with the customers. This has been clearly specified by Gilmore and Pine in their paper where they have elaborated that “Marketing flounders at many companies today, as people have become relatively immune to messages broadcast at them (Ittner, C.D. and D.F. Larcker, 1998). The way to reach customers is to create an experience they can participate in and enjoy the new offering frontier”. In the case of the Mitsubishi Motor Sales of America Inc, it was observed that the strategy that was adopted by managers is one which is effective. It has helped ensure that there is an ongoing process of interaction in place for the customers, and has helped the company ensure that the customers can easily avail of the services and the assistance of the company as and when required. The idea behind this particular form of allocation is the fact that tools of CRM are no longer just used for promotion but are now allocated to the overall process of brand building (Kaplan, R.S. and Norton, D.P, 1992). It also helps the customers have a direct link which is important, as personalization of the customer relationship with efficient and time saving services is a necessity of the global competitive market in the long run (Reinartz, W.J. and V. Kumar, 2000). Question 3 The case study that has been adopted is one which is effective and helps the company reach the international field. The role of the strategy of that has been adopted in the company is one which is reflective of the working of the managerial team in keeping with the market trends of the economy. It has helped ensure that there is greater integration of the customer care executive training and working (Richardson P S, Dick A S, Jain A, 2003). The implementation of technology has helped the company to ensure that it can adopt the most effective system which is faster (Ryals, L. and S. Knox, 2001). The system that has been evolved by the company is one which has helped ensure that the company is well equipped to meet the needs of the customers. The modern day marketing management has to ensure that it is able to focus on the products, and that it is able to relay the utility and advantages of the product to the consumers. It has to be able to carve out a place and identity for the product in the market, and help the consumers in relating to the product at a more personal basis, while continuing to emphasize on the expediency and value of the product. The need for marketing is one of the most significant changes that have been characteristics of the modern global era of economic consumption where there is a high philosophy of competitive tensions in the market. In fact McKenna (1993) has specified that the development of customer relationship management is highly significant in the market in the recent decades for companies to develop competitive advantage over each other. In fact in the paper that he developed he defined that with the coming of new technologies such as the information technologies has only added to the growth of the popularity of the CRM (Shaw, R. and L. Mazur, 1997). The system that has been adopted in the organization is such that it makes avail of the various resources at its disposal allowing for greater evolution of the entire system of functioning as a whole. Here the main focus is on the fact that things change with time, and the needs of the consumers have undergone a change with time. Finally it has to be realized that the focus is not only on the change in the customer relations, but it also allows for greater evolution of the HR through the managerial analysis of the calls and then training the HR, ensuring that the entire process of interaction with the customers becomes more promising and fruitful, increasing the overall production capacity of the employees also.   Question 4 It can be observed that the process that has been developed by the managers in Mitsubishi Motor Sales of America Inc has helped ensure that the several pitfalls of CRM can be avoided. The first is that it has allowed for greater flexibility that allows for the employees to be trained in various areas, so that the departments can be flexible, and they can answer the queries of the customers in a satisfactory manner. Also allowing for the distribution of the calls on the basis of the call code allows for greater study of the market, and an effective and wide ranged options so that there can be a more receptive understanding of the needs of the customer. This has helped ensure that the company allows the customer to specify their needs and ensure that the problem of complexities in the call services are avoided, leading to better assistance and a more efficient system of CRM being established. Also it has been observed that the managers carried out training programs in keeping with the analysis of the calls recorded, and this helps integrate the needs into the system without making it difficult for the executives in the communication process, eliminating the need of interference from the management in the working of the executives of the company. These are usually adopted as rational methods to ensure that the company is able to address the various needs of the consumers and the entire process through which the personnel are trained is an organized process. Also the image that the company portrays can be controlled through this method. It is more practical and rational as they take into account the various market trends and also the target of the organization is accommodated. This is a more economic approach as such planning methods allow for the various needs of the company to be considered and the resources of the organization are utilized to the maximum. 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