Combining Industry and Social Responsibility - Case Study Example

First Sur Four Case Studies International Paper: Combining Industry and Social Responsibility Q The common social criticism in marketing includes some harmful practices that a firm may undertake to ensure that it increases its sales or profits. The International Paper defies common social criticism in marketing in several ways. The cost of distribution of the products of IP is high because it engages the existent of many intermediaries in the chain of distribution. The middlemen are many, and this makes the paper products more expensive to the consumers. The company also indulges in intensive product promotion and advertising. Therefore, it invests more on aspects that increase the psychological value of the product at the expense of the improving the functional value of the goods. The firm may also indulge in deceptive pricing. They set their costs in a way that they appear cheaper to the customer than they are in reality. In addition, International Paper uses promotional tactics that are ambiguous to the client. This deception in the line of promotional may feature in the advertisement of their stationaries where they may include price cuts that do not exist to lure the customer into purchasing a product. Lastly, the packaging of their paper product may also appear deceptive to the consumer. Planned obsolescence also exists among the common social criticism in marketing as the products manufactured get outdated over time forcing the customers to keep buying the latest brands. Q. 2 International paper has been successful in the applications of sustainability concepts due to several reasons. The company participates in the improvement of the quality of the environment, and the world considers it as one of the most socially responsible manufacturers. Additionally, IP succeeds in the application of sustainability concepts as it participates actively in the management of natural resources through conservation, planting of trees, and clean water production among others. It also minimizes the use of fossil fuels and recycles energy in the form of steam. The company also aims at the reduction of environmental footprint, and this depicts its commitment to transparency and accountability in reporting its activities to the public domain. IP also embraces the building of partnerships with customer, environmental, academic and governmental organizations. These bodies guide the company in making objectives that enhance their sustainability. Case Study: Abou Shakra Restaurant: Creating Customer Value the Old-Fashioned Way Q. 1 Abou Shakra values service delivery to customers alongside the provision of the desired traditional dishes. For this reason, they train their employees to be in a position of delivering exceptional customer service. The trainers teach the employees continuously; hence ensuring consistency in service delivery. The restaurant is also open to audit of its processes to ensure that they achieve the right quality. Through signing of a contract with SGS of Egypt, the restaurant shows that it values service delivery to its consumers and has nothing to hide. The management of Abou Shakra restaurant gives priority to the provision of high valued quality traditional dishes to their customers. Their commitment to this course affects their strategy of expansion. Abou Shakra would rather maintain its small nature while retaining the quality of the dishes that it prepares to its customers. Its commitment to training of employees and carrying out market research depict their commitment in identifying the explicit needs of clients that they can match to the expected value of their dishes. Based on Abou Shakra’s initiatives and modes of operation, one can easily conclude that the restaurant shows commitment to the maintenance of product and service standards of value. Q. 4 Abou Shakra’s legacy will continue despite the changing consumer tastes from non-traditional dishes to cuisine. Abou Shakra started small in 1947 with its simple strategy that it still practices. The maintenance of its dishes with a few alteration in some of its policies supports the idea that it will succeed in the future. It has modernized its operations, and this has contributed to the delivery of specialized services to its customers. Customers like quality products, and this is what Abou Shakra is ready to provide. The continual improvement of the quality of dishes makes Abou Shakra retain and expand its market base. Additionally, it has managed to keep off competitors in the market through the provision of top quality traditional dishes to its customers, exceptional customer service, and low cost of production. While keeping the business small, it increases chances of having good management and the delivery of quality services to its consumers. With the change of consumers’ taste from traditional dishes to non-traditional cuisine, Abou Shakra legacy will still continue. Customers who desire top quality meals will still be loyal to them as they have done in the past without coercion. Porsche Q. 1 The buyer decision process involves five stages including, need recognition, information search, and evaluation of alternatives, purchase decision, and post purchase behavior. A customer of a traditional Porsche followed this process. First, the need of a customer of traditional Porsche was the desire to attain the high class of entrepreneurs. They had the aim of changing status in the society as Porsche was a vehicle of the class during that time. The process of seeking information about the product was not intensive. Those searching for information on the right choice of cars received the message that Porsche was more than a utility car that people could use in accomplishing daily tasks. However, it was a car that was meant for enjoyment, and that triggered feelings. It was the exact feeling that the buyers wanted. At the time, there was no other car associated with the feelings tied to Porsche brands. People associated the available vehicles with the utility function. A serious buyer with the need for prestige would make up his mind to purchase it. After the vigorous evaluation process, the state of making a purchase decision commences. Therefore, they decided to buy the model of Porsche. The purchase decision had an unusual post-purchase behavior. It is because the owners of the respected cars felt demeaned with the introduction of a newer and cheaper model of Porsche that made common individuals own it. The image of the car was tarnished further by the emergence of high-end sports cars by BMW, Toyota, and Nissan. Q. 3 Porsche applied the concept of market penetration, mass marketing, and product differentiation. The concept explains why Porsche sold so many lower-priced models in the year 1970s and 1980s. First, the lowered prices were not only affordable to the wealthy class but were also suitable for the folks in average economic classes in the society. Therefore, the company quickly penetrated the new market where its prestigious cars had not penetrated. Price reduction on the model 914 also marketed the product further, and this led to mass increment in sales. The innovation on the model also made other people who had initially hated the original model like it. Customers who hated the 911 brand could use the chance to obtain a desired model at a subsidized price. Case study: Google New Product Development at the Speed of Light Q. 1 There are similarities and differences between the product development process at Google and the development process in other firms. The similarities in the product development process are scarce as the two systems present in the two scenarios are very diverse. In both firms, the innovation process may result in a new product. In addition, there are people or departments responsible for product innovation in every firm. The product development process at Google differs from the development process in other companies as it is relatively quicker. In other companies, the development process may take over a year to unfold. The process of developing a product at Google accommodates failure than other processes in other firms. In addition, standard operating procedures that encourage speed in innovation, guides the process of development of the product as opposed to the operating systems in other companies that do not insist on speed of innovation. The other difference is that Google accepts innovative ideas from any source. In most firms, the innovation ideas emanate from the research and development department only. Lastly, Google considers the product development process as a cultural practice rather than a task assigned to employees. It was what its management meant when they said that innovation is part of the Google’s DNA. Q. 3 With the increasing pace at which Google does its innovation, it faces challenges at the at the stages of the life-cycle of its products. At the growth phase, it may face the challenge of competitors coming up with similar products. It may hinder the process of distribution and promotion of the Google products. It may not enjoy profits as expected. At the maturity stage, Google may emphasize on product differentiation, but other competitors shall have exhausted all options for incorporating additional features on the product. The decline stage sharply falls with the decrease in the value of the returns on the product. After investing heavily in the innovation and product development process, Google shall now discontinue the production of the product as it is no longer profitable. At the decline stage, Google can barely add new features or find new users of their products. If they do so, they may run at a loss as their rivals shall have already saturated the market. Read More