Smith_Systems_Consulting_Problem_Solution

Running head: PROBLEM SOLUTION: SMITH SYSTEMS CONSULTING Problem Solution: Smith Systems Consulting Deborah Mast University of Phoenix Problem Solution: Smith Systems Consulting Smith Systems was founded in 1984 by Blair Smith. Under his guidance Smith Systems Consulting has steadily grown into a major consulting firm. They have branched out into several states along with the corporate office located in Boise, Idaho. Mr. Smith is planning on retiring in the near future and the company will be facing many issues with such a change in leadership, branding, records management, and marketing. Marketing also needs to include understanding the current trends of consumers buying behaviors. Strategy is an integral part of the success of a company and is key to achieving the short and long term goals of the organization. How to define strategy and the reason that strategy is necessary is critical. A stagey can be defined as a long term action plan for achieving a goal (InvestorWords.com,n.d.,n.p.). A clear and defined strategy is needed at Smith Systems Consultant if they want to remain a completive force to be reckoned with. Using the 9-Step Decision Making Model will be used within this paper to shoe problem solving techniques for the company Situation Analysis Issue and Opportunity Identification In lacking a solid strategy Smith Systems Consulting is unable to retain the customers they do have and also to acquire new business. They need to be able to not only maintain and acquire the clients but to understand and be able to accurately address those client’s needs. Customer retention is an intangible asset and when your customers are satisfied you will be rewarded by being and strong and financially sound company. Smith Systems Consulting must also define their customers and create a marketing mix which will satisfy them as well. Smith Systems Consulting has seen great success under the leadership of Mr. Smith, but they have failed to keep records of profitability as the success of their products and services. Accurate and appropriate record keeping allow a company to make changes to their products and services which are not as successful as some of the company’s other areas. It also aids in the development of new services and products. With accurate records which are available to each department as well as the leadership team they will be able to identify ideas that will help to improve the company’s profitability. Smith Systems Consulting has come to realize the rise in the competition form some of its large competitors, but they should be able to rise above that by setting themselves apart by being more in tune with the needs and the wants of their customers. They must do this through branding, a competitive marketing strategies which would include relations and referral building and marketing communication. They must be able to maintain completive prices in order to retain the current clients and to lure new clients in. Certainly another critical issue is that of the change in leadership with the upcoming retirement of their CEO. Many companies find this can be a very crucial time within an organization internally and externally, but having a highly developed strategy will help make the transitions smoother. There does seem to be a lack on the part of the leadership team to have a succession plan in place for that transition to have the least amount of disruption throughout the company which will ultimately be felt by the clients. Stakeholder Perspectives/Ethical Dilemmas There are a number of stakeholders that are affected by the choices and leadership of Smith Systems Consulting and each one of them have different needs, values and expectations. A firm’s stakeholders are the individual, groups or other organization that are affect by and also affect the firm’s decision and actions”( Advameg, Inc.,2010 n.p.).The CEO Mr. Smith has an interest in his company and its success, but he feel that all customers are not entitled to be treated equally. With his retirement drawing closer he may not have the needs or the best interests of the clients or perspective clients as a top priority. He must be willing to see through to the end of his tenure to help with the strategic planning of the future of the company or the transition may be very rocky and result in loss of revenue for the company. The executive leaders and managers are coming at this from a different aspect of thinking but value their own position within the organization. Both segments of these leaders have a great deal of interest in the success of the company. The Director of Marketing believes they need to evaluate the marketplace, trends of the industry, and their competitors while the Finance and Accounting Mangers feels the company needs to continue solely on the profitability from long term clients. The Customer Service Manages from the sales and service departments have competing values and interests in the success of the company also. One group want to continue to focus on retaining existing clients while other wants to focus on generating new accounts. While these aspects are important for the success of the company them must be willing to work together to accomplish this goal. Problem Statement Smith Systems consulting will attain the highest degree of customer retention and acquisition of new customers by developing and implementing a strategy that has s strong foundation of marketing principles. End-State Vision Smith Systems Consulting will attain a smooth and flawless transition of leadership by gain a mutually beneficial relationship with current customers and bringing in new customers by offering a highly recognized brand of product and service which will lead to the overall success of the organization. Alternative Solutions Smith Systems Consulting Firm needs to look at generic and competitive benchmarking to help shed some light on different approaches that will help them to become a greater success in the finical consulting market place. Being able to see the different strategies that have worked for other companies and being able to adapt them to their own needs is half the battle. “Differentiation strategy is used where the company sees its key product competencies as a more profitable advantage and customers react to this strategy by paying more for a perceived greater reliability or quality or by returning to a trusted brand” (London Management Centre, 2008, p. 3). Examples include McDonald’s, which differentiates through a strong image and Southwest Airlines, which differentiates on quality “friendly” service and reliable departure and arrival time. Both companies operate in highly competitive industries. Relying heavily on differentiation has allowed McDonald’s and Southwest Airlines continued growth of the consumer market share, and provided the competitive edge required to succeed in the fast food and airline industries. What can Smith Systems Consulting Firm do that will set them apart from other firms in the industry' They need to find a unique way of selling themselves as with a service that is unsurpassable with great rates or add a unique product to their line. Wegmans certainly understands how to keep on top of marketing trends that help them to be one of the most successful grocery retail stores. By forging an alliance with Frito Lay they can benchmark the type of demographics they are in the area they are looking to expand. In essence Frito Lay has done a fair amount of the leg work and Wegmans can stay competitive with the ever-changing landscape of the retail grocery store trends. Smith Systems can gain a better perspective of on the existing marketing trends by evaluating the environments that are operating in as well as the customers they are marketing to. Mars has used alliances also to help them forge into the globalization of brand strategy. By acquiring different household brand products and putting them under their company umbrella they are not only an American icon but also international. Smith Systems Consulting would be wise to look at branding several unique products and services under the name of the company to help insure a completive future. Segmentation is another area that Smith Systems Consulting should consider. The first step of segmentation is mass marketing (Kotler & Keller, 2006). Ethical consideration in mass marketing is very important. When considering a market segment the company must take into consideration societal cultures, norms, business culture and industry practices, and corporate culture, and expectations. Both segmentation and ethical considerations in marketing must consider their target interests, the two concepts differ in that not all market segmentation is ethically in conduct. With the former CEO stepping down the new CEO must be willing to continue in marinating a high ethical standard. Analysis of Alternative Solutions Smith Systems Consulting only alternative that would allow them to attain all of their end-state goals or at least be able to work towards them would be to create a branding strategy. By creating brand awareness the company will not only help to work with a valued marketing strategy but will also create the face of the next generation at Smith Systems Consulting. This alternative carries the highest weight because it will either help to attract new clients and can still continue to cater to the existing clients. This will also allow them to be able to create a strategy that blankest the brand awareness and will allow the organization to continue to grow and change. For any organization to be successful the development of brand awareness is crucial to its success. Branding creates a trademark so that the company is fresh in the minds of both their current customer and prospective ones. Through the development of brand awareness the company should have no problem in be able to retain their existing customer base while acquiring new clients. Once the brand is designed a strategy can be developed and implemented that can forge new relationships. Risk Assessment and Mitigation Techniques Three categories of risk are described by Billington (1997) which include risk as hazard, risk as uncertainly and risk as opportunity. The first two categories look at the negative side of the risk factors whereas the third risk is talking about the positive side of risk which helps to stress approaches which are innovative. Billington (1997) says, “Taking too little risk can be as much a management failure as taking too much,” (p.4). Companies can begin to rely on too many sophisticated checklists and tools which can actually lead to a greater amount of exposure to negative risks. This is due to the fact that these tools are designed and programmed from past experiences which may or may not include that one very important risk area especially for a company (Billington, 1997). Given the above research an alternate risk assess strategy is need to focuses on risk as an opportunity. There are several risks that are associated with all three alterative which are ranked the highest in attainment of a company’s goals. All have medium to low level of risk. Smith Systems Consulting is risking company time and resources if they design a brand which if not properly developed may fail. They may also be risking a loss of the market share to their competitors if the brand awareness strategy does not work out. There may also be the possibility of a lack of commitment or even agreement by stakeholders. In gain a continual commitment from all stakeholders, an appropriate plan which is clearly defined will help to mitigate the potential risks and conflicts which could arise. Optimal Solution The optimal solution for this problem statement is creating customer value and loyalty. When selling any product or service the customer is the most important aspect of your business, without them you will not be in business for long. Their satisfaction and approval needs to be of utmost priority to remain competitive within your market. By gaining the customers trust, value and needs you will be able to gauge how well the products and services are being used. Companies can also gain valuable information which is necessary in anticipating what the needs and wants will be of the customer and to develop those product and services which target those needs. Through the creation of the customer values a marketing strategy can more accurately target the needs of those customers and help to attain the goals and vision of the company. Implementation Plan Several steps are needed to ensure the success for the implementation of the plan within a year’s time. The first deliverable should be held within 30 days and be an informative briefing the CEO, Mr. Smith who would lay out the changes and plans for the coming year. The second deliverable would be the development of a team which would be formed to create a marketing brand strategy. This team would be responsible for creating brand awareness, a logo for the Smith Consulting firm and perhaps a catch phrase or slogan that would help them to stand apart from the competition. The third deliverable would be to distribute the marketing and promotional material. These promotion materials would be giving to businesses that have used the Smith Systems Consulting product and services in the past, and also to ones they have never been a customer of the company. The marketing and sales department would follow through periodically at different times to form a relation with the decision makers of those businesses in hopes of gaining their business. The forth deliverable would be of the executive team to have a meeting to cover the strategic marketing plans of the organization and implement marketing communication. Additional steps would then be decided on for marketing and branding as deemed necessary. These executive meetings should occur monthly to ensure everyone is on the same page and work toward the same goal. Each of the steps contributes to the attainment of new clients and also the retention of current customers who have been loyal through the years. Through the use of these executive meetings, marketing materials and relationship building the company can continue to form bonds. Evaluation of Results Smith Systems Consulting cannot fall into the trap with the use of evaluation as a last resort rather than placing it into the strategic plan of the company. “Because meaningful and practical measures are built in SMART objectives also enable feedback and learning that can keep you on track for success,” (Berry & Thomas, 2008, p.3). Smith Consulting Systems will due periodic customer satisfaction surveys which will help them to understand the current trends and needs of their customers and to attract new customers. The SMART goals established by the company will measure the success in being able to achieve the end state vision. Measurement is only as effective as the metrics that are used. A best practice is to have the metric recorded by an outside party in order to remain unbiased and to be able to provide management with the most unfiltered and reliable results. Each member of the Smith Systems Consulting will have the opportunity to review the results of the implementation and to provide their own feedback for future reference. As the marketing plan takes shape and is implemented an early evaluation of the result is possible. Smith Systems Consulting has multiple goals in which they are striving for to become a more recognizable force within the industry. Quarterly meetings of shareholders should be implementing to evaluate the effectiveness of the marketing materials and over the success and growth of the company. There should also be yearly reviews of all current clients and prospective clients’ files for progress and sales made which will be measured as to the overall attainment of new directions and the goals of the organization. Finally they would be satisfaction surveys distributed yearly to all current clients. These surveys would measure not only their satisfaction but also they needs for additional or special serviced they may be provided by Smith Systems Consulting. The company will evaluate each of their customers and target at least five of the most profitable clients and establish and deeper and continuing relationship with them. Conclusion Smith Systems Consulting has been hand the greatest opportunity to attain the highest stand of customer acquisition and retention by developing and them implementing a stagey which will be built around a strong marketing set of principles. Working through this solution has led to some very interesting finding. A single problem may have many right answer to help to fix it and by working through the issue with the approach a diversifying their marketing practices, by keeping better record and developing a stronger relationship with business owners. In continuing to work towards goals the company has the ability to meet or exceed the expectation they set as well as the expectation of the customers The 9 Step Model has shown us the gains by being knowledgeable in the marketing, branding, marketing communications, marketing trends, customer values, risk mitigation, conflict management and discerning between systems and problems. Although quite complex it can be managed with a structured approach to problem solving which in itself will serve to alleviate the risks from each phase. As long as Smith Systems Consulting uses this model they will be able to sustain and once again become a force to be reckoned with in their industry even under new leadership. References References Advameg, Inc. (2010). Stakeholders. Retrieved May 28, 2010 from, http://www.referenceforbusiness.com/management/Sc-Str/Stakeholders.html Berry, S., & Thomas, R. (2008). Use SMART objectives to focus goals, plans and performance. Retrieved May 28, 2010 from: http://www.projectsmart.co.uk/use-smart-objectives-to-focus-goals-plans-and- performance.html Billington, J. (1997). A few things every manager ought to know about risk. Harvard Business Review. New York: McGraw-Hill. University of Phoenix. Boyle, Matthew Fortune Magazine, January 24, 2005 The Wegmans Way. Retrieved May 20,2010 http://money.cnn.com/magazines/fortune/fortune_archive/2005/01/24/8234048/index.htm Brand. (2003). In Capstone Encyclopedia of Business. Retrieved from on May 29, 2010 http://www.credoreference.com/entry/capstonebus/brand BusinessDictionary.com. (2010). Microenvironment. Retrieved May 29, 2010 from, http://www.businessdictionary.com/definition/macro-environment.html . Great Place to Work, Retrieved May 22, 2010 http://www.greatplacetowork.com/education/innovate/honoree-2004-wegmans.php Investopedia.com. (2010). Brand Awareness. Retrieved May 29, 2010 from, http://www.investopedia.com/terms/b/brandawareness.asp InvestorWords.com. (n.d.). Strategy. Retrieved on May 29, 2010 from, http://www.investorwords.com/4775/strategy.html Kerin, R.A., Hartley, S.W., Berkowitz, E.N., & Rudelius, W., (2006). Marketing. (8th ed). The McGraw-Hill Companies. Retrieved from University of Phoenix eBook Collection database. Kotler & Keller. (2006). Marketing Management. (12th ed). Upper Saddle River: Prentice Hall, Inc. Retrieved from University of Phoenix eBook Collection database. Knol, J. (2009). Southwest airlines from an organizational perspective. Airlines Magazine, 26, 1-2. Retrieved May 28, 2010. Retrieved from http://www.aerlines.nl/issue _ 26/ Knol _ SWA.pdf LogoDesigns (2008). McDonalds logo. Retrieved May 28, 2010, from http://www.logoblog.org/ mcdonalds-logo.php London Management Centre (2008). Management tools: generic competitive strategies. Retrieved May 29, 2010, from http://www.lmcuk.com/management-tool/generic-competitive-strategies Mars Corporate 2010, Retrieved May 29, 2010, from Rowe, A. (2006, January 13). The Importance of Corporate Strategy. Retrieved May 29, 2010, from http://ezinearticles.com/'The-Importance-of-Corporate-Strategy&id=127898 University of Phoenix. (2010). Smith Systems Consulting Scenario. Retrieved May 27, 2010 from University of Phoenix, rEsource, MMPBL580—Marketing Management Web site.] Wegmans.com Retrieved from website May 28, 2010 Table 1 Issue and Opportunity Identification |Issue |Opportunity |Reference to Specific |Concept | | | |Course Concept | | | | |(Include citation) | | |SCC is losing their founder who is planning on retiring |SCC can provide a |The Associative network memory|Memory which | |and the fear that the executive and sales team is that the|seamless transition of |model is consistent with |Influences Consumer | |brand service is associated with Mr. Smith name and they |leadership through |consumer brand knowledge |Behavior | |may lose some of their long time accountants |proper strategic |memory. This memory is the | | | |planning. |association of working with | | | | |the CEO and the company will | | | | |need to find ways to keep them| | | | |on board once Sam retires. | | | | |Marketing can be seen as | | | | |making sure that consumers | | | | |have the right types of | | | | |product and service experience| | | | |such that the right brand | | | | |knowledge structure are | | | | |created and maintained in | | | | |memory (Kotler & Keifer, 2006,| | | | |p. 15). | | |SCC has no solid strategy in place enabling them to move | |Evaluation of Alternatives |Building your | |forward and being able to stay a competitive viable force | | |marketing plan they | |within the consulting industry. | | |should be able to set | | | | |up a table which would| | | | |include three trends | | | | |that are related to | | | | |the five forces, which| | | | |include; social, | | | | |economic, | | | | |technological, | | | | |competitive and | | | | |regulatory, that will | | | | |relate to the | | | | |consulting business | | | | |for Smith Systems | | | | |(Kevin & Hartley, | | | | |2008, p. 19). | |SCC has areas of concern in not only retention of existing|SCC will begin to focus|Mental Accounting |Mental accounting is | |clients but attracting a new cliental |on new marketing trend | |based on a set of key | | |to increase revenue | |core principles: | | | | |consumers tend to | | | | |segregate gain, so | | | | |when a seller has a | | | | |product with more than| | | | |on positive dimension,| | | | |it is desirable to | | | | |have each dimension | | | | |evaluated separately. | | | | |This could help in | | | | |deciding what services| | | | |are more valued by | | | | |their customers ( | | | | |Kotler & Keller, 2008,| | | | |p. 31) | |Accurate and proper record keeping of all cliental |SCC will add new | | | |information which needs is not accessible to all |software which will | | | |departments and at the same time lacks the security of |upgrade their record | | | |outside hackers |keeping so that is | | | | |secure and at the same | | | | |time remains accessible| | | | |to all departments | | | | |within SCC | | | | | | | | Table 2 Stakeholder Perspectives |Stakeholder Perspectives | | | | |Stakeholder Groups |The Interests, Rights, and | | |Values of Each Group | |CEO and Executive Team |CEO although still concerned with the success of the company as a whole | | |is beginning to focus on his personal needs as he moves closer to | | |retirement. | | |Executive is feeling like the pressure to keep the company moving forward | | |without the CEO in the near future. Both want to have SCC stay | | |competitive within the consulting industry. | |Consumers |Want a product and service that they can feel good about, and know that | | |even though the CEO who was the founder is leaving the company will still | | |be run with integrity. They also want to have the assurance that they | | |information is secure within the confines of the company. | |Sales and Marketing Teams |Each team first and foremost wants to be able to be successful and have | | |the tools that will enable them to access the clients accounts. Marketing| | |wants to know that they are other form of advertisement to bring in new | | |clients. Sales department is worried about the loss of existing clients | | |and seems to be more focused in that area. | Table 3 Analysis of Alternative Solutions [Click twice on table to change, see instructions on next page. The alternatives and their ratings as well as the goals and their weightings shown below are for illustrative purposes, you should enter your own. Delete this paragraph when done.] [pic] Table 4 Risk Assessment and Mitigation Techniques |Risk Assessment and Mitigation Techniques | |Alternative Solution |Risks and Probability |Consequence and Severity |Mitigation Techniques | |Mass Marketing |Need to only use for short periods| |Focus on new venue for advertising | | |of time |Low |Referral bonuses-Give them a short | | |Could be costly upfront | |life span | | | | | | |New Software Program for |medium |Costly in time and money |Proper training by vendor of software| |record keeping of accounts | |Could have negative impact if not|program for all employees | | | |handle with strictness of | | | | |security | | | | | | | |Brand Development |medium |costly |3rd Party brought in to help with | | | |loss of critical time and effort |development | | | | |Proper Employee training to handle | | | | |new services and products | | | | | | Table 5 Optimal Solution Implementation Plan |Deliverable |Timeline |Who is Responsible | |Informative briefing of the changes within the |Within 30 days |CEO | |company for the next 12 months | | | |Development of Branding Strategy Team |30-60 days |CEO/Executive Team/ Managers | |Distribution of marketing and promotional material |6-9 months |Sales Team and Marketing Team | |Strategic Marketing Plan |30-60 days |Executive Team | |Smooth Transition from founder CEO Mr. Smith to new|9-12 months |CEO and Executive Team | |CEO | | | | | | | | | | | Table 6 Evaluation of Results |End-State Goals |Metrics |Target | |SCC will remain a viable force within the |Increase revenue by 40$% |With 6-9 months | |consulting industry | | | |Will have new products through the brand |Two to three products a year |annually | |awareness plan | | | |Acquisition of new customers |30% within the first six months |30-35% each year | | | | | | | | |