customer expectation

11:11 Make a Wish – China’s Cyber Monday

Posted on by f1224sshelhamer

Many may know and participate in the United States huge rush for online shopping after Thanksgiving, also known as Cyber Monday.  However this ranks as the second largest e-commerce event in the world.  In the recent years, an online shopping extravaganza has emerged for China.  It began in the 1990s by college students who did not have a significant other.  As a replacement for Valentines Day, young adults without partners began treating themselves to dinners and gifts.  The concept of the date arose by November 11th or 11-11 which has 4 singles (for singles).  It has now erupted into possibly the busiest online shopping day in the world.

The simple items have now evolved into jewelry, TVs, and even cars.  The event has also spurred the need for different marketing techniques and price cuts.  As the article mentioned, some retailers have promised discounts up to 70 percent off.  The deals are very hard to resist and resemble many aspects of the United States’ Cyber Monday.  Halfway through the day,  approximately $1.6 billion in sales have been accumulated by means of the largest website for online shopping in China, tmall.com.  This amount has surpassed the $1.25 billion that United States online retailers took in last year’s Cyber Monday according to the article’s source comScore, a research firm.

Companies have also had to begin planning and forecasting sales and delivery services months in advance.  Alibaba, the largest Chinese operator of e-commerce, has requested additional lounge chairs and made reservations for rooms in nearby hotels for their employees to take much need breaks and relaxation.  According to the article,  more than 800,000 delivery personal will be working Sunday with the additional 75,000 hired seasonal workers.  And one of the largest companies has even expanded their operating capacity by 50 percent.

Although the idea of a large shopping spree day online in China may be different from the United States, there are many similarities when it comes to the businesses and their preparation.  Do you see a growing trend in online shopping in American or believe that making the trip to the store is necessary?  In my opinion, I believe it matters in the nature of a product to either purchase it from a picture on the screen or physically taking the good off the shelf.

 

Article Source : http://finance.yahoo.com/news/singles-day-chinas-online-shopping-070856623.html

Quality And Innovation – The Rat Race!!!

Posted on by f1213araza

The electronics world has changed rapidly in the last few years. Some companies pioneered the changes, while others were too slow to adapt to the fast changing trends and requirements. Not long ago, Japanese companies ruled the market like lions in the jungle. Companies like sharp, Sony, Panasonic and Nintendo were the biggest and unbeatable brands in the entire industry. Now, on the contrary these market kings have lost their market share drastically.

What could be the reason behind their downfall? I have noticed a similar trend in Japanese companies and in someway have the same characteristics. However, these well known companies still follow the highest quality standards and produce highest-quality hardware devices. But the market demand now is not limited to quality only. Japanese companies were slow to catch with competitors with regards to design, operating system and software technology. For instance: Sony was the market king in 1990 when it introduced ‘The Walkman’. At one time, was the ‘must have’ gadget for everyone like the apple iPods currently.  Just in a couple of years Apple managed to shake off and challenge Sony’s position in the market with their IPhones and iPods. Sony’s fell, profits shrunk and once one of the best image in the world is battered.

I believe the major downfall of Japanese brands is due to the fact that they were slow to realize the changing demands and the need to improve software rather than only focus on quality hardware.  From a technological perspective, the explanation of how that happened is straightforward and that apple always was, is very good at software and Sony never was. Sony understood music technology but they were bad at software and they didn’t do what apple did. That is making use of computers and Internet. They created ITunes which made accessing and syncing music to apple devices easily. The Walkman was a success in their era when it did not have to interact with computers.

As discussed in class, acquiring Six Sigma, ISO or other quality certification does not guarantee profits. These methodologies are used to help businesses reduce failures in quality. Talking about Sony, they also had obtained certification under ISO 9001 for all sites manufacturing electronic products yet faced backlash from competing brands. Fast pace dynamic fulfillment of consumer market should be a big factor of management department to maintain the success of a company. Big portion of company’s budget should be allocated for R&D while maintaining the quality of their current successful products.

Do you agree that Sony was too slow to adapt to the fast changing trends?

PS: I think Apple is also slowing down its innovation pace. Watch the video and share your views. http://www.youtube.com/watch?v=RyWSEwKPo8s

Is Apple losing its mojo?

Posted on by f1213nshah

Apple has been at the top of its game for over ten years now. Apple has had great success with its invention and especially with the Iphone. The Iphone was the top selling phone each year that it came out.  Even though it’s been the top selling phone for years, Google’s Android platform is starting to make its way up. According to recent polls and editorials, the Iphone is starting to slip away and more people are starting to prefer Google’s Android platform.

  • The Android platform now accounts for 75% of the smartphone market, which is up from its last quarter’s 68%. Apple’s Iphone dropped from being 17% of the market to 15%. This shows us that people are slowly starting to make the switch from an Iphone to phones with an Android operating system.
  • Apple is known for having loyal customers. Each year there newly innovative Iphone hits the top of consumers’ wish list. It seems like that is starting to change. According to Strategy Analytics 88% of U.S Iphone users said they would stay with the IOS for their next smartphone. That number has dropped from 93% from the previous year. In Europe the numbers dropped from 88% to 75%. This shows that people all around the world are starting to switch from IOS to another operating system.

There must be a reason why Apple fans are starting to slowly switch to Android phones. A big problem that Apple ran into was with the quality of its newest Iphone the Iphone 5. There were many complaints by consumers that there new Iphone 5 came out of the box with scratches or dents. Apple is known for making top quality products, and to produce thousands of Iphone 5 with quality defects is unacceptable. There were reports that this was due to the high demand and that they could not be made in time. It seems like Apple was choosing quantity over quality.

Is Apple starting to lose its touch? Do you think that Apple will be able to recover from the bad rep it got for the quality issues with the Iphone 5?

http://news.yahoo.com/4-signs-iphone-no-longer-smartphone-king-103200005.html

 

 

 

Keeping up With Quality

Posted on by f1212mgarcia

As we discussed in our previous classes, we have discussed that an organization must always continually collect data in order to keep control of their processes. However, how exactly does an organization take control of a process that may need improvement or otherwise a routine check-up? Keeping up with a process that your organization has may be a daunting task due to the fact that the organization already has so many tasks and duties to keep up with. As the article explains, one must “look closely as to how you’re collecting data”. Machine, Part and Shift data are all very important aspects as far as collecting data goes but what exactly do these mean and how are they relevant to your organization?

Machine Data

  • As the article explains, there may be a machine that will be ultimately responsible for quality criteria. Being able to identify where exactly the data came from by identifying the machine is an excellent way of identifying quality errors and could help to finding the problem of quality criteria failures. Instead of giving the whole overall process such as “Line 1”, you can specifically assign the work line from “Line 1” to “Machine 1” and could help to easily identify where exactly a certain product may have come from or where the problem may have came from.

Part Data

  • Part data refers to the manner in which you may collect data. Most people may collect data in “parts” and therefore may not have the biggest organizational picture. As the article explains, one must go in to great detail and must expand their data collection when collecting their “samples” and “parts” of data to more closely represent the organization. A good source of collected data, can be better use for the organization and can help to provide a clearer picture.

Shift Data

  • A human component is always present as the article explains and a manager must be able to take account for the human aspect of any part of their aspect. One manner in which a manager can collect data is by looking at the different shifts and comparing to see how they are doing. Is the earlier shift producing more quality accepted products than the late night shift? If so, what can be done to fix it? etc. A good manager will always make sure to look at the organization at every part and not just as a whole

As we have explained in class, collecting data and being able to use data to better reflect and improve the organization can help to better overall total quality management. It may not be the employees or process that may need a check-up, but rather what is it that the manager can do to fix their process or better yet, what is it that they can do to improve it? How do you feel about having constant quality improvement even when the organization may not need it? Is it necessary to always “fix something that’s not broken”? How can one go in to more detail when collecting data?

http://www.qualitydigest.com/inside/quality-insider-article/comparing-quality-levels-between-machines-parts-or-shifts.html

First Time for Everything: NYC Marathon Cancelled

Posted on by f1233bnikolova

Due to the horrific damage that Hurricane Sandy has done to New York this past week, ING, the marathon’s leading sponsor since 2003, has been forced by the city of New York to cancel the long-awaited marathon that has held over 40,000 runners and 500 sponsors every year since it began. This will be the first time that the marathon has been canceled in over 70 years and has caused outrage among sponsors and consumers alike.

Although ING was originally planning on continuing to have the marathon even with the unbelievable damage that New York has experienced, public outcry about the unethical issues that ING as well as other sponsors are getting themselves into by ignoring the hurricane’s damage and continuing the marathon has been abundant. Because of this, ING has been forced to cancel the marathon and has put itself in a sticky situation when it comes to the revenue and promotion they and other sponsors will be losing because of it.

As we learned in class, the project triangle consists of time, cost, and performance. The time it took to plan a New York City Marathon is over a full year. The cost to get the over 500 sponsors to sponsor the event is over 1 million dollars, and performance is based on how smoothly the marathon runs. With these three contributing factors as well as many others, I understand why ING was hesitant to cancel the NYC marathon, but understand why the public was outraged as well. The amount of money and planning that went into making the NYC marathon what it is every year means that a lot of people are counting on it, and I believe this is why ING was reluctant to cancel it right away.

Furthermore, in a desperate final effort to save themselves from looking unethical, ING decided to donate $500,000 dollars to aid victims of the hurricane, and donate the generators that were going to be set up around the marathon for the runners, to the millions of people who need help in New York. While this was the right decision, thousands of runners, both from the U.S. and internationally, who have been training for this marathon for over a year, are devestated and feel disrepected that they were told about the cancellation last minute. As customers of the marathon for a number of years, the customer expectation for most of the runners is that they would be running no mater what.

Overall, I believe that this was the right decision to make and while people are still so angry at ING for not canceling it right away, I understand why ING didn’t.

How do you think this will affect ING’s future revenue? Do you think ING made the ethical choice to cancel the marathon? What would you do as president of ING to please both the runners and the people of New york that were affected by the storm?

 

http://www.businessweek.com/articles/2012-11-02/as-sponsor-of-new-york-city-marathon-ing-comes-under-fire#r=hpt-ls

Are you ready for Disney Star Wars ?!?

Posted on by f1233tngamboon

Walt Disney was first introduced on October 16, 1923 by brothers Walt and Roy Disney as an animation studio. It later has developed to one of the major Hollywood studios, and owner of eleven theme parks and several televisions. Recently, the Company had agreed to purchase Lucas film from its founder, George Lucas, for $4.05 billion in stock and cash. Yes, we will be seeing more “Star Wars” movie soon. Disney plans to release new “Star Wars” movies every two or three years beginning in 2015 with “Star Wars Episode 7,” Disney Chief Executive Bob Iger said. If you can remember, Disney already purchased Pixar Animation Studios for $7.4 billion in 2006 and Marvel Entertainment for $4 billion in 2009. As such, Disney owns all the Disney characters, all the Pixar characters, all the Marvel characters, and now all the Star Wars characters? Disney is now owns almost every famous characters.

Why is this company so successful? As we know, customers expect certain things when they walk into a business, and every company should know how to identify those expectations in order to meet them to the customer’s satisfaction. Disney obviously uses these strategies as a foundation of the business. As one of their principal: “make the dream come true.” In order to make the dream come true, they should know what people dream about when they think about Disney. First thing came up to my mind when I think about Disney is that it is a place where kids can be kids, and adults can feel like kids again. Disney Themes Park and Resorts, for instance, are designed to bring pleasure by providing the finest in entertainment for people of all ages, everywhere. Each theme park creates different atmosphere. Disney continuously creates goods and services that are valued by customers and society.  Disney did everything they can to make sure that their customers have a positive experience and leave happy. Clearly, Disney is one of the worlds’ leading producers and providers of entertainment, using it portfolio of brands to differentiate its content, services and consumer products.

All in all, the Disney management principles have over time proven themselves true to the success of the organization. I believe that Disney has a huge potential to make a Star Wars movies. They will surely make “Star Wars” live on and flourish for many generations.

 

What do you think of Disney’s acquisition of Star War? Do you think that the new movie will come out the same as it’s used to be?

Source:

http://mediadecoder.blogs.nytimes.com/2012/10/30/disney-buying-lucas-films-for-4-billion/#postComment

http://money.cnn.com/2012/10/30/technology/disney-buys-lucasfilm/index.html

 

It’s not an uphill battle that Microsoft is losing, it’s a mobile one

Posted on by f1223aperry

Microsoft recently revealed a revamped version of its Windows Phone software, appropriately deemed ‘Windows Phone 8.’  According to the company, which grabs slightly more than 3% of the international mobile market, the app store has been greatly augmented, though some of the applications will not be available until next quarter.  The article notes that Microsoft presenters mentioned their competitors several times during the unveiling.  It is apparent that Apple and Google-powered phones dominate this space and are setting the benchmark for competitors.  Realistically, however, is there anything to compete against?

Microsoft is, in general, good at what they do; they have a solid product, market awareness, and substantial resources.  This does not necessarily mean they are meant to operate in the mobile phone market, alone at least.  It’s becoming clear that they cannot compete with Apple or Google; consider the app stores: Microsoft now has 120,000 compared to Apple’s 700,000.  While Microsoft has stepped up its game and market share, they are nowhere near the size of the competition.  It is difficult to gain much traction with companies of that size working against Microsoft’s advances.  There is an alternative to the constant, losing battle: if you can’t beat them, join them.  It seems like Microsoft could benefit greatly from a partnership with a large competitor and they should consider exploring the possibility.  To do this, the larger player would have to get something out of the agreement – which might be Apple in this case.  Compatibility, as well as ease of use, between Microsoft and Apple software continues to be an issue, but a partnership could be a game changer in the mobile market.

There are a number of functions that I’m sure many Apple customers wish they had on their iPhones, namely the Microsoft Office product suite.  Business is partial to PowerPoint, Excel, and Word, not Pages or Keynote.  This is problematic for iPhone users when sending these types of documents.  Word becomes a pdf, Excel has limited functionality, and it appears that an independent app is necessary to view a PowerPoint presentation.  Consumers would likely agree with the added value if Apple and Microsoft could work together to solve this issue.

Link to article: http://online.wsj.com/article/SB10001424052970204789304578087062149274482.html?mod=googlenews_wsj

The Downward Spiral of American Beer

Posted on by f1233pmazurek

 

As many people know Annheuser-Busch merged with a Brazilian company named In-BEV, now known as AB InBev and people are starting to question the beer industry. AB InBev now controls 48% of the beer market and 68% in Brazil alone. So what is the issue? The distinct taste of American beer is now being produced with many foreign beers. Since the merger Ab InBev has moved production of many beer plants to right here in the U.S. That is good for workers here in the states but not necessarily for the avid Budweiser drinkers. Many people have complained that the beers are becoming more bland and not as tasty. In the article a Beck drinker for 25 years went and bought a 12 pack and said the beer just didn’t taste the same. After further inspection the German beer “Becks” was now manufactured in St. Louis, Mo. AB InBev has seen beer sales drop for many of their beers but they are still profiting as a company. The new manager of the firm, Brito, is making all sorts of cut backs in the company and as well as in the production of Budweiser. Budweiser has always boasted about using whole grains of rice in their beer and now the quality in the rice is the most important part and it doesn’t matter if it is whole or broken grains. He is also cutting off suppliers which have been used for over 25 years. These cutbacks are shutting down businesses and changing the beer industry as well as the beer itself. I understand making cuts to make a profit but is it truly ok to modify the beer which has been loved by the public for decades?

I do not believe it is ok, unless the public is made aware of the changes taking place in many of these breweries. If the customers continue to buy Ab InBev’s products and taste a difference should they not be informed?  These modifications may not be noticeable to the once in awhile drinker… but it definitely will be to the loyal consumers of Budweiser. Modifications to this beer will also mean modifications to other American beers will occur as well, eventually altering the American beer market forever. Brito, the managing director of the company, will not comment on any of the changes and refuses to give any interviews.

To add insult to injury Brito has also raised the price of Budweiser and Bud Light, seeing how they are the most popular American beers right now. The price increase has slowed sales in 2011 by 3% and Bud slipped by 13%. Many researchers said it is not unconstitutional to make a profit in any company and Brito has done a great job of doing that, but it maybe un-american to modify a beer that has been iconic in the American culture for years now.

GNC and Vitamin Shoppe: Controversy of Bodybuilding drugs

Posted on by f1232ggmitrovic

http://online.wsj.com/article/SB10001424052702303644004577525201570340094.html

As we all know, GNC (General Nutrition Center) and Vitamin Shoppe are two of the largest over the counter supplemental manufacturers and carriers; but some of us may not know that they are being targeted by the FDA (Food and Drug Administration) since they began carrying something called DMAA (DMAA is found in Geranium oil, which is found in flowers). (Lahart) The bodybuilding world is always looking for new and improved products to create high adrenaline, intensity, and energy. Most people that come to GNC are searching for something to either get them bigger with muscle mass or smaller to look more chiseled and defined. The DMAA ingredient can do both of those, its that type of uniqueness that will separate it from other drugs by spiking up the energy and adrenaline through the roof whilst narrowing your blood vessels and increasing the blood flow to the muscles. And it has helped GNC and Vitamin Shoppes stocks skyrocket.

The issue comes in the fact of natural occurrence. GNC and Vitamin Shoppe are claiming that DMAA  (1,3-Dimethylamylamine- also meaning Geranamine) is a naturally occurring substance that is found in a Geranium oil in a flower base. (Lahart) The FDA is cracking down on GNC and Vitamin Shoppe for carrying the suppliers (such as USPlabs, Muscletech, Cellucor, and etc.) that have no evidence that it is a safe product and that it is actually found in flowers. (Lahart) USPlabs went out of there way to create a website saying that DMAA is safe and naturally made (the website can be found at http://usplabsdirect.com/dmaa-research) I know that it might not sound like a big deal, but you need to understand that if a dietary supplemental is not found to be created naturally, the FDA can say that it needs their approval since it is a ‘pre-market product’ and not a dietary ingredient. Once that takes place they can take over that product and recall it from all shelves in the nation since it is a ‘pre-market product.’

The FDA did research in four different labs (3- domestic and 1-international) and found no traces of DMAA in multiple samples of Geranium oil. (Lahart) A lot of the suppliers that GNC and Vitamin Shoppe are carrying have rebelled against the FDA by providing their own research taken from their labs.  But for now, the FDA is just frowning on the product (which I have to say to most of my customers at GNC if there hesitant on getting one of the awesome products that carry DMAA).  Unfortunately, I feel that most products that still carry DMAA at GNC or Vitamin Shoppe (Especially at my GNC store) are in the decline period of of the product life cycle. I don’t believe that it’s in its decline because it can’t offer the organization anything anymore, but the FDA is pressing down so hard on any DMAA products that it’s getting harder to carry them with all the rules and regulations.(Operation’s Management textbook, CH. 5 Figure 2.5) (PPT Ch.5 Slide 11)

Do you think the FDA is doing right by pressing down on an active ingredient just because they suppliers cant claim that it is naturally made? Would you take a product that wasn’t naturally made? Even if it is not naturally made, do you think it should still be on the market and not taken off like ephedrine and steroids were? Do you agree with the fact that it should be kept on the market and that it should be left up to the people to take it or not? Is GNC, Vitamin Shoppe and the FDA being ethical and moral about this issue?

Should we forecast?

Posted on by f1224jwu

hoiliday

The importance of forecasting is really significant in improving the business. From our recent classes, I have learned how forecasting functions in business. It plays a critical role in meeting the needs in the consumers. Forecasting helps focus on what the consumer needs in the product or service, which is important for making product decisions and future planning. It also predicts the quantity needed to prepare beforehand to satisfy the consumers’ demands.

I read an article called “Holiday sales forecast to rise 4.1 percent this year”. This article is about the forecasting and statistics for the holiday months, November through December of 2012. The forecasting shows that people are less likely to splurge this year due the recovery of economic recession. Shoppers are worried about the rise of prices of goods and being unable to afford it, thus the decrease of splurging. By forecasting, retailers understand the needs of their consumers. Retailers made a lot of discounts during these months to encourage their consumers to shop. Forecasting also provides information how many consumers there will be. This information is provided with the prediction of the growth trend. It shows that it is significantly lower compared to the previous years. This information provides the retailers how much products they need in order to meet the demand.

How important do you think forecasting is in business?
Do you think it is necessary?

Sources
Article: Holiday sales forecast to rise 4.1 percent this year