Gc_Benchmarking

Global Communication Benchmarking Introduction Every function of a Company or Organization must deliver an outcome. Problems prevent outcomes. Potential solutions to problems are best when the solutions are compatible to goals and objectives. Benchmarking is appropriate for the output of a process or function (Camp, 1989) and for determining the best practice for this process or function. Managers can use benchmarking to learn from their competitors. Benchmarking your competitor is called competitive benchmarking (Maul, 2010). Benchmarking within your own industry is called generic benchmarking Maul, 2010). Benchmarking and synopsis are valuable tools in increasing the health of any business. An analysis of the results should be determined in a synopsis of leading competitors. The Fortune 500 Companies Team A selected have potential problems that will prevent them from reaching their goals. Team A is conducting a synopsis to find the best practice of those who have faced similar problems (Maul, 2010). These companies include Target and Wal mart, Starbucks and The Coffee Bean and Tea Leaf, Microsoft and Google, and Verizon and AT&T. A synopsis provides a means of identifying gaps in employee performance, the performance of the Company, and its competitors. Companies can learn new lessons and experiences from many industries. Manager should focus on the best practice of the leading competitor. With this process, Companies can identify the root of their problem. Analysis Global Communications is facing decisions, which could make or break their company tremendously. These decisions consisted of: outsourcing job, improving profitability, and the introduction of new services. Many companies today have to make to same decisions to ensure the longevity of their company. A representative from every major stakeholder should be involved in the decision making process to ensure viewpoints are heard. Global Communications management team believed that they were making the correct decision to increase market share and revenue for the company. Global Communications benchmarked other industry leaders to implement new ideas, strategies, and innovative services. Most of the industries in today’s economy are benchmarking other companies, within and outside of the industry. This analysis was completed to show how many companies, which are facing the same issues of Global Communications, are responding. Companies are figuring out what best works for one company and trying to put into action the results that will lead to increase profits for their company. Companies also have to realize that what works for ABC may not work for XYZ. Many plans and negotiations takes place before a final decision is made toward a new idea. There must also be an alternative plan. Without an alternative plan, many companies fail. Global Communications has made a commitment to its union, employees, and consumers. Decisions will not be approved by every stakeholder in the company but stakeholders will need to make the best decision that benefits the company in the future. In an ever-changing business world, companies must make sure that they are making the necessary decisions to stay in tuned with their vision and at the same time earn a profit for the company and its shareholders. After reading the group’s synopses, there are some similarities with all the companies. Like Global Communications, each company was faced with a situation, or opportunity, to stay at their existing spot, lose ground on their position, or gain ground. This is evident with Delta Air Lines. For a long time, Delta was one of the leading airline companies around but because of the soaring fuel prices, labor disputes, and the attacks of 9/11, they were faced with a huge decision. With their decision, there were also some drastic changes needed to be made. Among those changes were cutting back of jobs, canceling large numbers of flights and changing the types of aircrafts they used. The glaring difference between Delta and Global Communications is that communication from the top to the bottom was relayed in an effective manner. The then CEO, Donald Grinstein, was able to effectively communicate to the employees that although he would be cutting salaries and stock options(including his own) there would be an opportunity for them to get that back in the future and he would repay them for their sacrifice. Like everything, you have your doubters and people who don’t believe, but obviously there were those who did believe what he said. True to his word, after they were able to show a profit and come out of bankruptcy in 2007, Grinstein was able to repay those who stayed with raises and bonuses. Also since then the company has been able to acquire another major airline and expand their international business by 20 percent. Some companies are faced with ethical decisions that may make or break the company. This was evident with the Target scenario. They were put into the hot seat because of a decision they about supporting a particular politician who had different views about subjects that affected employees of Target. Now Target has a choice to make. They also had to make sure the consumers understood that a mistake was made and they are doing everything that’s possible to rectify the situation. Is backing this politician worth the backlash that will come as a result or is it in their best interest to clarify and make sure the employees understand. Target decided that the best way was to write a letter of apology to respond to the issue. Through this process, it’s given the company the opportunity to be at the forefront by creating dialogue between companies showing that this incident was important to them and they are taken the necessary steps to better themselves. It can be a fine line when dealing with ethical issues as Wal-Mart found out. It’s a little interesting that two companies that are in direct competition have similar issues when it comes to ethics. Like Target, Wal-Mart was forced to make some changes in how they handled specific situations within their organization. A large number of complaints were submitted about the wrongful treatment of a segment of their employee base and that unwanted coverage caused a lot of media attention. Because of this, Wal-Mart decided to change the way they dealt with this by creating an organization for the affected party. They saw that there was an opportunity to not only mend the gap between both parties, but also show the public that they made a mistake and they are making attempts to communicate more effectively with their employees. Conclusion In conclusion, we have researched many different companies which, have been affected by ethical issues as well as some global communications situations that occurred through the benchmarking aspect. The analysis described in detail the key concepts that team A has identified through each company and is related to the course throughout the class. The synopses gives more detail as to the issues that each company has faced over a period of time and how the companies are dealing with the issues. The Outcome of the company’s response that each team member has chosen has affected each company in a negative or positive aspect. We have learned that the Global Communication Benchmarking is a very important part of analyzing a company’s overall performance. The marketing and increase sometimes there can be a decrease in companies revenues. There is always going to be some type of competition while being in business. The outlook of the generic and competitor benchmarking skills is what make a difference in the company and their overall performance. By knowing this companies can learn from the mistakes which, will often occur when being in business. Synopsis Target Target has been around for many years now. Target has many corporate milestones that have arisen within the company and have continued in the growth and increase in the expansion of the company and their revenue. Target always has been successful in their corporate milestone there have been many stores that has been open over the years and how they have expanded in, developing the Super Target Stores and opening the food section in the stores. In 2009 Target has opened up the first stores in Hawaii on the islands of Oahu and the Big Island. Before the opening day Target presented the Hawaiian culture with a native Hawaiian ceremony to bless the land and congratulating opening the new stores (Target, 2010). In August 2009 Targets CEO, Chris Morran wrote a letter apologizing for how Target Corporation chose to deal with the support of Anti-Gay Politician to their employees. This put Target in the hot seat because the company had just donated $150,000 to Minnesota campaign of the gubernatorial candidate is does not approve of gay marriages and knowing how this affected the company, and some of their employees. In the letter Chris expressed the concerns and sympathy of how sorry he was, in donating the money to Minnesota in supporting the fight against gay marriages. He also expressed that the he wants to support his team members and not offend them in any way. Chris wants to continue to receive the support from team leaders and his customers. This issue should not affect the revenue milestone of the company but this has been a long going issue with the company. The employees continue to speak negatively about this issue. The writing of the apology letter was the best way for the company to respond to this issue because the letter was addressed and presented to the world and especially to the team leaders of the company. The outcome of the company’s response to the issue was to begin a strategic review and analysis of their decision-making process for financial contributions in the public policy arena. Later this year Target will take the initiative to take on the leadership role in conducting a group of people of companies and organizations for a dialogue focused on diversity and inclusion in the workplace, including GLBT issues (Consumerist, 2010). Wal Mart Wal Mart has been known to be the lowest price leader and has committed to give customers the lowest prices ever. The customer satisfaction has been a very important aspect of the company as well. They take pride in trying to please their customers and give them what they want. Wal Mart is also one of Target‘s competitors in which these two stores continue to advise a plan to bring the customers to the stores. The company has also increased in their sales and the price has changed and makes everything affordable for the customers all over the United States. Wal Mart also has a few of the Super Stores which belong to the corporate milestone. The company has encountered some issues over the years and has caused for groups of people to create a National Organization for Women. The board of directors and its members has received many complaints regarding workplace environment and employment practices at Wal Mart stores, distribution centers, regional, and corporate offices (Wal Mart, 2009) For many years now, so many cases filed and public allegations. Wal Mart found the allegations to be very disturbing and has taken a different route in how to handle this issue by creating an organization for Women. Researchers have shown the sex discrimination in pay, promotion, and compensation, wage abuse, and exclusion of contraceptive coverage in insurance plans. Violations of labor laws and the American Disabilities Act can be a problem as well (Wal Mart, 2009). The issues have also made Wal Mart wiser in the choices they make and how to approach their employees and conduct business within the company. They are very consistent with the goals of Women’s friendly Work Campaign and is consistently working toward improving their image publicly as well as inside while interacting with the corporate team members. Wal Mart has taken the extra step in creating many different organizations for women in overcoming their situations with dealing with cases of discrimination in every aspect possible. Microsoft Microsoft is facing some serious issues with attackers; however, an emergency patch is critical for Window phone seven. A vicious bug has gained control of infected machines via program shortcuts. Patches are issue only once a month to fix any flaws, but forcedness of this bug has caused immediate attention outside of normal schedule (CIOL, 2010). Currently, this issue has been resolve with EMET (Enhanced Migration Experience Toolkit), this is a new security mitigations blocking target attacks (Enterprise, 2010). Another issue that Microsoft has is their innovative ideas with Smartphone Window Phone seven; they are procrastinators. Their chances of competing effectively, is not good. Microsoft has been dragging their innovation for a while and not releasing it. The software has been available for a long time according to chief executive officer, Steve Ballmer acknowledging that it is true how the company is holding the idea (Enterprise, 2010). Microsoft is having some type of fear syndrome to the fact; they are afraid to release their product. For example, looking at the scenario on US Auto, Henderson the executive vice president was protective with the company’s trade secret. Her concern was to keep their intellectual property relating to the hybrid engine disclosed as part of the patent process. She also wanted them to secure agreement for AutoMex to produce non-engine parts of the auto, and retain engine assembly in the United States, and do not reveal anything to AutoMex about their secret, but protect their idea. At the end, US Auto was unsuccessful because of their selfish unethical behavior. Obviously, Microsoft did not understand their consumers; they have no idea what the consumers were looking for, if they knew, Microsoft new idea, Windows Phone seven would be release with a clear vision (Enterprise, 2010). However, as a solution, Microsoft has decided to release their new idea with a new approach to explore by launching Window Phone seven, Blackberry Torch 9800 on the platform as its savior, globally sometime in the near end of 2010 with additional feature and a new approach. A major attractant for the enterprise, Microsoft hopes that features such as streamlined access to SharePoint and documents are effective. Google Economy has taken its toll on the society today, many businesses are failing, and technology innovative ideas are running full speed ahead by nationwide competitors. The race is so precipitous; some competitors it is difficult to keep up. Although Google stock is going down, the company remains to be the most popular online destination in 2010; yet they are somewhat sickly, facing a middle crisis wondering about the search for the future, which is an issue with Google (Jenkins, 2010). Eric Schmidt, chief executive officer of Google critically thinks about how to make sure Google’s franchise last in web advertising when “search” is no longer fashionable (Jenkins, 2010). Google hypothetically thinks that the people do not want Google to answer questions for them nowadays; he believes that they want technology to dictate by telling them what they should be doing next. Eric gives an imaginable example on how people seem to want technology to dictate their lives to a certain extent that Google remind them to receive milk, or tell them the location to the nearest store (Jenkins, 2010). Recall during the sixties, the cartoon name “The Jetson” was a foresight for the future. Eric’s thoughts of the future is quite clear, his pending innovative idea seems to be leading to total technology way of life. Uniqueness is a key to success, Google will prevail. Currently, Google decided to join forces with Verizon for solidification and innovation. Comparatively with the marketing simulation, when Shout and Daze join partnership, they were profitable with strength and fame for a season. Unfortunately, a whistle blower defamed their business too soon. Google is aware of combativeness with global competitors in the future. For sure, the first opposing opponent will be Microsoft (Jenkins, 2010).Therefore, Google believes the company is facing ever-growing legal, political and regulatory obstacles; as a result, their decision to join was pertinent because of the new foreseeable future when the company promotes their Google’s Android software (Jenkins, 2010). This device is a human looking robot that looks and behaves like a human being. Morally, Google’s main objective is to make sure it’s every move is “good” for customers and “fair” to the competitors (Jenkins, 2010). Verizon Wireless One of the two companies I have chosen to present is Verizon Wireless. According to Verizon Wireless (2010), “Verizon Communications Inc (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wire line communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 92 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon last year generated consolidated revenues of more than $107 billion” (Facts at a glance, para. 2). Verizon wireless has evolved over the years. It values its company with customer loyalty It has the lowest number of customers turnovers among the nation’s largest wireless carriers. For 21 of the last 23 quarters, Verizon Wireless has led the wireless industry in customer loyalty, reporting the lowest churn rates among the four major United States carriers (Pica, 2010). Verizon wireless has made tremendous efforts of improving their customer satisfaction ratings. This has contributed to the increase of revenue. Verizon wireless continues to benchmark its competitors to stay ahead of them. They make efforts that include: different innovative services available, increasing product lines, and competitive rates. Verizon wireless wants to continue to expand globally. They continue to invest in its leading global network, which underpins the essential network computing platform for the company's integrated solutions. They have expanded significantly globally that includes adding a second data center in Hong Kong. Verizon wireless has completed this task by installing 18 additional Private IP edge routers for a total of 781 edge routers in 221 sites throughout 60 countries and the private IP as of the present time reaches 130 countries (Lucht, 2010). Verizon enables their customers and business relationships to increase productivity and efficiency and help preserve the environment. Verizon wireless competitors are just as competitive as Verizon. Each company tries to mimic the others in their own unique way. Some have shown commercials that stated how their network is superior to Verizon wireless and how it covers the entire nation. I am sure as the “wireless war” continues there will be more competition that comes and goes. The wireless providers that continue to stay around will have to satisfy their customers’ needs. AT&T The other company I chose to present is AT&T. AT&T can bring things together for its customers, from the revolutionary iPhone 4 to next-generation TV services and sophisticated solutions for multi-national businesses. AT&T's portfolio of services delivers choice, value, and convenience across a range of options. Millions of consumers have chosen AT&T’s comprehensive service bundles because of their competitive pricing and the convenience of a single bill for wired and wireless voice and data, broadband Internet, TV, and messaging services (AT&T, 2010). They are making huge advances in entertainment and communications industry. AT&T is recognized as one of the leading worldwide providers of IP-based communications services to businesses. According to AT&T (2010), “AT&T also has the nation's fastest mobile broadband network and the largest international coverage of any U.S. wireless carrier, offering the most phones that work in the most countries; the largest Wi-Fi network in the United States; and the largest number of high speed Internet access subscribers in the United States” (Corporate Profile, para. 3). AT&T has a new slogan for the innovation of the company is now taking into another direction, rethink possible. Its innovation plans includes new locations in the United States and one international facility. AT&T believes that wireless connectivity will drive consumer demand. AT&T wants to extend beyond the traditional wireless networks. They are committed to using innovative ideas and develop new technologies that meet the needs of the consumer. AT&T maintains one of the communications industry’s largest and most productive research organizations at AT&T Labs. AT&T understands that here are several other competitors as resilient as they are. They try to come out with a new app along with its competitors and release it during the same time. This helps to continue the innovation to the consumers such as the U-verse Mobile, which was launched for the Apple iPhone and the new BlackBerry Torch. While AT&T continues to benchmark the competition, it genuinely depends on who continues to develop new, meaningful capabilities for the customers to increase revenue. AT&T continues to try to stead ahead of the competition by continuing to increase services and products for the consumers worldwide. A synopsis of Starbucks and the Coffee Bean and Tea Leaf indicated a slowing in consumer spending in 2007. In 2008, the global financial crisis affected the specialty coffee business. To maintain their markets, Starbucks and the Coffee Bean and Tea Leaf had to increase their revenues and expand their markets. The Coffee Bean and Tea Leaf The Hyman family founded the Coffee Bean and Tea Leaf in 1963. Los Angeles is the headquarters for the Coffee Bean and Tea Leaf. “The Coffee Bean and Tea Leaf is recognized as the largest family- owned coffee and tea business in the world” (2008, p1). In addition to coffee and tea, the Coffee Bean and Tea Leaf products include the Ice Blended brand of drinks and drink-making kits. “The Coffee Bean and Tea Leaf bake their pastries in the United States and Singapore. These high quality fresh baked goods, sandwiches and salads, are produced from their own recipes” (2008, p1) The Coffee Bean and Tea Leaf commitment to quality and tradition kept their sales steady. Their success is attributed to more than 3,000 team members’ worldwide, loyal clientele, and strong repeat business. This includes numerous “entertainment stars as regular customers from Hollywood to Taipei, San Francisco to Brunei, Phoenix to Kuala Lumpur and Singapore to Israel” (Coffee Bean and Tea Leaf, 2010, pg 1). The Coffee Bean and Tea Leaf are good neighbors in their communities. Their support to local and national charities includes schools and troops in the armed forces. The outcomes of the Coffee Bean and Tea Leaf response to the declining market were successful. In 2008, the Executive Chairperson, Sassoon, focused on the development of the company’s strategic business plan. Their sales in were 130.1 million dollars. They launched bottled coffee and drinks in 2008. The Coffee Bean and Tea Leaf success in maintaining their markets and increasing their revenues is known around the world. “The Coffee Bean and Tea Leaf kosher food selection marked record sales in the Israeli coffee chain market. They have hundreds of locations around the world. Starbucks Coffee Company Starbucks Coffee Company opened in 1971 (2010) in Seattle’s Pike Place Market. Starbucks Coffee Company has stores around the globe and is the premier roaster and retailer of specialty coffee in the world (2010). In addition to coffee and non-coffee blended beverages, “Starbucks products include more smoothies and teas; home espresso machines, coffee brewers and grinders, coffee mugs and accessories; packaged goods music, books and gift items; baked pastries, sandwiches, salads, oatmeal, yogurt parfaits, and fruit cups, and bottled brewed coffees” (Starbucks, 2008, p1). In the years to come, every airport, concourse, and street corner had a Starbucks. As customer traffic increased, Starbucks food offerings included espresso machines. Good times vanished for Starbucks in early 2009. Because of the economic crisis, Starbucks elected to close 300 stores and lay off thousands of employees (2009). The economic crisis was a painful period for Starbucks. The outcomes of Starbucks response to the declining market were successful. In 2008, Howard D. Schultz returned to lead Starbucks out of their economic crisis. He focused on the customer and opening stores overseas. In 2010, Starbucks paid its first cash to investors. The company’s profit rose more than eightfold as more customers visited their stores. Delta Air Lines The early 2000’s were some tough times for Delta Airlines. After being able to weather the storm in the late 80’s and early 90’s and being able to make some big acquisitions of smaller carriers, Delta was faced with a huge issue-Bankruptcy. Some of the major factors that caused this were the labor disputes with the pilots in 2000, the attacks on 9/11, as well as rising fuel costs. The labor disputes got to a point where the pilots refused voluntary overtime during one of the busiest times of the year. This move forced Delta to cancel 3,500 flights over the course of that month (Answers.com). Delta was also forced to cut about 13,000 jobs and had to change the type of planes they operated from three-engine planes to two-engine planes, yet debt still mounted. With all of this piling up as well as more and more complaints because of the lack of employees and constant late arrivals and departures, Delta filed for bankruptcy in September of 2005. To keep its severely damaged image reputable in eye of the public, Delta received a $2 billion package from its creditors to be able to continue to operate. The newly appointed CEO of the company, Donald Grinstein, also cut the workforce from 70,000 to 47,000 and cut all salaries including his own (Answers.com). They also noticed that on some domestic routes, particularly the Atlanta-South Florida routes, that a lot of seats were going empty. The company decided to take the planes used for those routes and incorporate them into their international routes. This move created a huge increase in their international business, increasing it to about 40 percent of their business. That’s about a 20 percent increase from before the company filed bankruptcy. Throughout this process, a number on other airlines threw out figures trying to capitalize on the opportunity to grow and expand. Delta stood firm by refusing the offers. Thus, during that year, Delta showed a profit for the first time since 2000. Finally, in May of 2007, Delta came out of bankruptcy. They were their own company again. Air Tran Air Tran Airways started off with humble beginnings. Based out of Orlando Florida, Airtran started off with a fleet of two planes. They found a niche in a major airline driven industry and that niche was providing service to the regional areas and a low cost. In the beginning, Air Tran kept in simple running one fight a day on most of their routes. This was done to keep from having a fare ware with the major airlines. A tragic accident involving an explosion on a TWA flight in 1996 caused a tremendous setback for Air Tran and other regional start-up airlines. This incident scared customers even more because a couple of years earlier another accident happened involving another airline in its market. Needless to say, it was a bad time to be in this business. Despite all of this going on, Air Tran was determined to continue on with its progression. Air Tran was able to merge with Value Jet, the other airline mentioned earlier, in July of 1997. Now this merger allowed Air Tran to not only take over routes previously flown by Value Jet but it also allows them to merge their tourist base with Value Jet’s business traveler base. This seemed to be a great merger. In order to improve its stance with the public, Air Tran was given go ahead to “order 50 state-of-the-art MD-95 aircraft from McDonnell Douglas for $1 billion (Answers.com)”. They also introduced an affordable business class service, pre-assigned seating. More changes came along that made Air Tran a viable airline to contend with. One thing that they did was paint the letter “a” on the tail of their aircrafts. This letter was two serve two reasons. One was to start branding their business and the other was to make that letter synonymous with being affordable. This decision seemed to work in their favor because in 1996, Value Jet made $219 million in revenues and Air Ways, Inc, the company that owns Air Tran, made $102 million in revenues. Reference About the Coffee Bean and Tea Leaf Company. 2008. Retrieved August 21, 2010 from www.chikymiky.com Coffee Bean and Tea Leaf Company. 2007. Retrieved August 21, 2010 from www.coffee-health.com Delta Air Lines. (n.d.). International Directory of Company Histories. Retrieved August 21, 2010 from Answers.com Web site: http://www.answers.com/topic/delta-air-lines-inc Air Tran Holdings. (n.d.). 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