Introduction To Jit On The Basis Of Quality Management Business Essay - Free Essay Example

Sample details Pages: 11 Words: 3372 Downloads: 9 Date added: 2017/06/26 Category Management Essay Type Analytical essay Did you like this example? In todays competitive global business environment, the goal of all manufacturing systems to survive long term. Survival of manufacturing in a increasingly competitive market close will depend on its ability to produce the best quality at the lowest price possible and in a timely manner with the shortest delivery times. Moreover, these goals must be achieved by paying greater respect to mankind staff who operate the system. Don’t waste time! Our writers will create an original "Introduction To Jit On The Basis Of Quality Management Business Essay" essay for you Create order Although it is difficult to achieve is the complexity of manufacturing processes. It is not hard to build quality, but are extremely difficult to do while maintaining excellent quality and respect for the humanity of people who do the actual work of building the product. A Just-in-Time (JIT) approach proposed here is able to achieve all the objectives above. Just-in-Time (JIT) On the basis of quality management is both a philosophy and guiding principles that integrates basic management techniques, existing improvement efforts and technical tools. This approach focuses on long-term benefits due to the elimination of waste and continuous improvement of systems, programs, products and people. It has an important influence on quality control, purchasing, and work culture with a philosophy that includes the cost of meeting delivery schedules, employee empowerment and skills development, supplier relations and development new products. But this approach requires factories to keep in ventories of finished, because even a small problem in the supply chain, and small errors on defective goods can increase production to stop. Some techniques for controlling single market and the quality is developed so that the raw materials or components of high quality can reach the factory, as they needed, and the production of defective products can be reduced to near zero degrees. Conceptually, this approach combines seemingly contradictory goals of low cost, quality, manufacturing flexibility, and reliability of delivery. Its effects are important for improving the overall performance of the entire organization. However, there is no standard for implementing JIT is not steady progress towards the ultimate goal of service you want, with a continuous flow smoothly synchronized correspond to final demand, with perfect quality goods receipt. The adoption of JIT approach in the context of India can be useful for these industries are still struggling with reliability issues and long delays, low quality, low productivity, high rates of waste and defects, shortages of raw materials, and underutilization of workers and equipment. Theory of JIT production Based on quality management is the combination of JIT inventory control, quality control and management functions of production that made sincere efforts to improve the quality of two ways. First, it focuses on the philosophical aspect of improving quality through accountability for the quality of each, and then focused on the effective implementation of quality control technician. He acknowledged that the most valuable resources of an organization are the workers and employees work best when they are motivated, valued, to contribute, and allowed to make their own decisions. Under this approach, workers inspect the quality of the product after each successive operation. They are trained with the managers in the preparation and interpretation of process control charts. Managers motivate employees to think about the quality of the production rate of the first and second. Workers have the power to stop the production line or cell, if quality problems are discovered. Thus, this conc ept not only provides quality responsibilities of workers, but also reflect this responsibility with the authority to share the functions of quality control, if quality problems can be identified and resolved quickly. In addition, the JIT production system requires the purchase of parts in small series. Small batches require less space and time. Less space and requires less time to people and facilities to do the same job. In addition, small parties easy to inspect and identify gaps quickly. Thus, parties that are bought regularly in small batches with frequent deliveries contribute to improved quality and productivity through lower inventory levels and waste, reducing monitoring costs for parts used, and early detection of defects . In short, JIT approaches have the potential to improve product quality and productivity levels important, but organizations should adopt the principles in a way that meets their own organizational structure, design and processes. OBJECTIVE OF THE RESEARCH This research paper has the following two objectives: RESEARCH DESIGN AND METHODOLOGY This research has been conducted by taking SECONDARY DATA from the internet. The research is primarily based on analysis of two popular automobile manufacturers: 1. Maruti Suzuki 2. Ashok Leyland LIMITATION OF THE STUDY The current report is limited to only two companies i.e., Maruti Suzuki and Ashok Leyland. The report represents an analyses based on the data that is available online. The accuracy and reliability of the analysis is completely based on my interpretation and valuation of data. The analysis and study could not be approved by company officials as they refuse to entertain students on such matters. Automobile Industry Of India India has a large automotive sector. The country ranks ninth in Asia and the world 4thin global automotive industry. India has an annual production of approximately 2.3 million units. Today, India is the worlds largest maker of tractors, the second largest motorcycle manufacturer and the fifth largest manufacturer of commercial vehicles. The automobile industry in India has accelerated after deregulation in 1991. The industry continued to grow steadily and is increasingly relevant in the global market. In the recent past, India has experienced a resurgence in the automotive sector with its relaxed restrictions on investment policies in the sector. overall economic growth in India has also played an important role in attracting foreign investors to invest in India in the automotive sector in the country. The automobile sector in India has shown great progress in the use of new technologies and be flexible in the wake of the changing business situation. In addition, the g rowth of Indias middle class and greater purchasing power with the support of strong macroeconomic fundamentals have helped to attract leading car manufacturers in India. Several global players, including major automakers Suzuki and Honda have invested heavily in India and was able to exploit the market in India. All these factors and initiatives that the government is an indication that the Indian car industry was becoming a new industry that has unlimited potential for growth and promises to provide valuable return on investment. The automotive sector was not only satisfy the requirements of the market, but was deeply into the international market. COMPANY OVERVIEW: Maruti Suzuki India Limited Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation in Japan, is a leading Indian car market for about two decades. Marutis growth driven by the automotive industry in India, in fact, its impact on lifestyle and psyche of an entire generation of Indian middle class, it is widely recognized. Maruti tops customer satisfaction again for the seventh consecutive year, according to JD Power Asia Pacific Index 2006, India Customer Satisfaction (CSI) Study. The company also ranked highest in India Sales Satisfaction Study. TNS Automotive Maruti also ranks first corporate social responsibility. Maruti is also one of the top five car rental companies: Forbes list of the best-known companies in the world November 6 In 2001, Maruti Suzuki India Ltd has become one of the first car companies around the world to receive ISO 9001:2000 certification. AV Belgium assessed the quality systems and practices related to the automotive industry worldwide global auditors Internatio nal Organization for Standardization. Maruti has already implemented more than 6 million cars by 2006, in fact an average of two vehicles from the factory to roll every minute. In March 2007, Maruti crossed cumulative total exports of 450,000 vehicles since its first exports in 1986. Vehicles for export and manufactured in the same production facilities. Ashok Leyland Ashok Leyland Motor began assembling commercial involvement vehicles.With British Leyland in the capital, in 1954, the Company has been renamed as Ashok Leyland. Since then Ashok Leyland has been a significant presence in the Indian industry of commercial vehicles. These years were marked by a series of technological innovations that became industry standards. This tradition of technological leadership have been made through comparisons with international technology leaders and through vigorous R D. Ashok Leyland vehicles have built a reputation for reliability and susceptibility to interference. 375 000 vehicles, we have placed additional pressure on the common road of independent India. The share of road freight transport increased from 12% in 1950 to 60% in 1995. In the carriage of passengers, the jump is equally dramatic: from 25% to 80%. At 60 million passengers a day, Ashok Leyland buses carry more passengers than the entire Indian railway network. In populous metros i n India, four of the five-state transport company (STU) buses come from Ashok Leyland. Some of them like the double-decker bus and hallways are unique Ashok Leyland, tailor-made for high-density routes. In 1987, the exploitation by foreign LRLIH (Land Rover Leyland International Holdings Limited) was incorporated as a joint venture between the Hinduja Group, the Non-Resident Indian transnational group and Iveco Fiat SpA, part of Fiat Group and the manufacturer Trucks Europe leading. Global Standards, Global Markets prepared the blue print for the future reflects the Companys global ambitions, captured in four words: Global standards, global markets (liberalization and globalization still air). Encouraged by the support of two global giants, Ashok Leyland launched a significant product and process technology Upgradation the world-class standards of technology. On the way to global quality standards, Ashok Leyland reached a milestone in 1993 when he became the first in the automoti ve industry in India to win ISO 9002 certification. The most comprehensive ISO 9001 certification came in 1994. 1994 was also the year that global technology has changed the way India perceived trucks. The year of a new world-class race truck a superior technology and environmentally friendly to roll on road in India. Our factory of state-of the-art House, near Bangalore. They were called Cargo. Loading brought a new set of values ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹and a basket of unmatched performance, paving the way for a change. JUST IN TIME AT ASHOK LEYLAND Ashok Leyland, one of the largest private companies in the country, had sales of about Rs 6,000 crore in 2005-06. Ashok Leyland is part of the Hinduja Group. It is also one of the largest automakers and auto component companies in India. The company offers a range of world-class trucks, buses, special application vehicles and engines, the passage of millions of people in over 40 countries worldwide. During 2005-06, the company produced a total of 65 085 vehicles, of which it exported 4,879 units. Domestically, the company has sold a total of 56 776 units. Oscar incoming The project SCM provider partnership comprises the supply base rationalization, tiered suppliers and cluster information, the optimization of inventories through JIT and LCL, total cost management, logistics initiatives, and -sourcing and global supply. The proceeds from the Oscar entry Provider partnership includes technical support and engineering, the global market, the worldwide availability of spare p arts, testing capabilities, improved performance on the field, a provider of systems, JIT deliveries and world class technology . the profits of the partnership are Level I, vendor consolidation, continuous technological upgradation of products without any inward investment, shorter development lead time, value engineering and cost reduction, improved performance on the field, the effectiveness of JIT inventory supplies and human power to rationalize. Vendor base rationalisation Gains from price reductions include the amount, to improve the quality and reliability of the seller to improve the framework for continuous improvement, multi-layered system to facilitate the purchase, installation and reduce paperwork Supplier tierisation accompanying economies of scale, purchasing a system to rationalize the supplier base material to a cluster of compliance with the 5S-error-checking, process improvement, resulting in self Inventory levels have decreased from 23 to 18 days . Total cost management includes a number of cost management initiatives, such as management, process management, design, technology and capabilities. The total savings were 3% of total operating costs. Logistics initiative included the rationalization of transport based, drawn from Kanban satellite stores, improving truck turn around, load, mode and route optimization for the benefit of the logistics process that led Ted to save the company more than Rs1.25 crore a year. JUST IN TIME AT MARUTI SUZUKI The Company has adopted the Japanese system, JIT to achieve greater operational efficiency and reduce inventory carrying costs. JIT improves return on investment in a business by reducing in-process inventory and transportation costs. To ensure the supply of raw JIT, the company gives preference to local vendors and suppliers to promote the function of the distance to establish the base near Maruti Suzuki `s facilities. Over 76% of 246 company suppliers are within 100 km radius. providers are strategically located in major components such as instrument panels, fuel tanks, bumpers, seats adjacent to the manufacturing facilities of the companys supplier park. JIT has evolved over the past 25 years, the companys monthly time of daily programs of parts orders and, finally, in 2003, and system-Nagare, which means the delivery systems for planning time, a practice that helps maintain a list of less than two hours in some parts of society. The e-Nagare successfully run the busine ss today and helps to maintain the population of the right material at the right time, right place and the exact amount, without the safety net of excess inventory, reducing inventory levels, cost of ownership . Maruti Suzuki driven by manufacturing excellence principles to reduce waste, inconvenience and inconsistency drank parent SMC, Japan. Maruti Suzuki, using best practices such as Just in Time (JIT), Kaizen (continuous improvement), Quick Quick, and Poka Yoke (fail-safe feature). The best practices are replicated in business processes and business partners to make its operations lean and free of blemishes. The company is actually connected via resellers Dealer Management System (DMS), the interaction dealer and annual reviews that will help retailers to cost savings and customer convenience. Storage levels are maintained to reduce the burden of holding inventory. higher inventory levels are adjusted as necessary for financial viability. The result is a multiplicity of efficiency in the value chain. LIMITATIONS OF INTERFIRM PRODUCTION Culture Differences: Organizational cultures differ from company to company. There are cultures that bind to JIT success in international business, but it is difficult for an organization to change its culture few . Time frame : The production is highly dependent on suppliers and if the unit is not delivered on time, the entire production schedule may be delayed. Crunch on delivery : Today, many Tier1, Tier2 and Tier 3 suppliers are struggling financially to meet their customer demands for lower cost, better quality and results of the time. Loss of team autonomy: This is the result of lower buffer stocks that result in less flexibility for employees to solve the problem individually. Loss of method autonomy: This means that workers must act in a way, when problems occur, it is not possible for them to have their own method to solve a problem. Responsive method : It is not the final product available to order spare unexpected, because all the product is manufactured to meet actual orders JIT, however, is highly responsive method of production. Some Important Features of JIT Based Quality Management This section describes some unique features of this concept, which plays a crucial role to achieve its goal of continuously improving quality, eliminating waste and reducing costs. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ One of the most remarkable features of JIT is that it produces a large number of proposals that employee participation in continuous improvement. Management works hard to implement these proposals. A number of proposals considered as an important criterion to assess the performance of the employee. This conclusion recognizes employee efforts to improve quality. quality circles in accordance with a proposal for a group focused on improving the system. In a nutshell, the JIT system requires an effective proposal for the production operations of employees. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ JIT emphasizes awareness and provide clues to identify problems. When a problem is detected, it must be resolved. So, this concept requires training with a variety of tools for proble m-solving. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Improve the success of any problem is solved. To consolidate a new level, the improvement is standardized. Thus JIT also requires the standardization of methods and procedures. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Often, the heterogeneous composition of the workforce and the negative relationship between the labor market, it is difficult to introduce changes to improve productivity and quality. Therefore, strong motivation, employee involvement and an open corporate culture is crucial for the effective implementation of JIT. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ JIT requires experience working with concrete data. Put more emphasis on the use and analysis of statistical data for quality control and troubleshooting. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Due to construction workers in many different machines at the same time, this system leads to a significant expansion of responsibilities of workers and skills. Therefore, effective training progr ams are the main requirements of JIT to develop multiple skills among workers. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ JIT is to encourage suppliers to make a commitment to provide excellent quality products. In order to fulfill this commitment, lasting quality software is essential to the operations of the supplier in constant communication between the buyer and supplier. Implications for Indian industries Indian manufacturing sector is one of the largest industries in the world that has never been implemented by governments and potential protectionist bureaucracy. Thus, Indian goods are now classified competitiveness fund sector effectiveness, personnel management, product quality and productivity of workers, 15 In these circumstances, the urgent need to implement JIT practices in India. But in some states in India to regulate the relations between business, labor, suppliers and financial institutions. These relationships have a major impact on the fact that the team can be deployed in India present economic, cultural and social system, attitudes and trends. With the implementation of a JIT Indian industry a huge savings to be produced and the productivity of the new ethics may arise, which can help to strengthen the Indian economy. In addition, JIT practices can help Indian firms become more competitive by improving its exports in the global market. But we find that social, cult ural and political have a significant impact on JIT practices in different parts of the world. In India, suppliers of various raw materials (domestic and imported) are under government control through supply agencies, resulting in considerable uncertainty. The government controls the prices of key resources, and tax rates, to create obstacles to applying the JIT 16 Some of the reasons for the slow implementation of JIT are listed below. In addition, the workforce in India is generally ignorant, lack of motivation and more concerned about the monetary benefits and job security as the development of the carrier and develop their potential. Trade unions and their resistance is also promoted the implementation team. Therefore, the specific cultural changes necessary to successfully implement JIT. Education can play a crucial role in this direction. On this issue, some researchers have argued that the Japanese models are very successful in India. Therefore, some training programs with deadlines, should be organized in the Indian work force, after a careful examination of their behaviour, personal characteristics, attitudes and social values. Reasons for Slow Implementation of Just-in-Time (JIT) in Indian Context. 1. High cost of implementation 2. Informal and casual quality auditing 3. Lack of Communication at various levels 4. Lack of customer awareness about product quality 5. Lack of support from R D department 6. Lack of teamwork 7. Lack of top management participation in QC Programs 8. Lack of training 9. Lack of understanding about JIT Techniques 10. Negative attitude, traits beliefs of Indian work force 11. Poor and inadequate maintenance 12. Shortage of multifunctional workers 13. Traditional methods of quality control Conclusions Based on JIT quality management to make dramatic improvements in cost and quality through optimum utilization of human resources with emphasis on simplicity, elimination of waste and continuous improvement. This could be a great opportunity for Indian industry because of its relatively low investment requirements and compatibility for small businesses. This approach exploits the full capacity of workers and allows them to systematic analysis of the root causes of quality problems by making small sustainable changes in organizational arrangements. It allows workers to become involved in decision making through the trust and responsibility in their hands. Several Indian industry is leading the joint investigation team with the belief that it would be useful to counter global competition. But the effectiveness depends on the qualities, attitudes and values ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¹of Indian labor. Ultimately, it is hoped that the I ndian industry to be able to undertake the necessary changes to existing production systems for JIT Quality Management to get the maximum benefit.

The Contemporary Art of Atomic Vacation by Todd Schorr

Description Atomic Vacation is an outstanding example of contemporary art. The painting was created with acrylic paints on a 6 x 7 foot canvas. Todd Schorr (American artist) painted Atomic Vacation in 2008 but, did not release it till the art show â€Å"Designed for Extinction† where he showcased his last decade of work. This painting caused a huge controversy with religious groups from the area around the Otis College of Art and Design in L.A. Todd Schorr is known as one of the best acrylic painters of our time. The way he blends colors, yet making each one stand out shows in great detail how he has mastered the art of acrylic painting. The color template used for this work was very wide, and that only further shows how great of an artist Schorr is. He also uses thin, fat, swirly, straight, and curved lines showing his skills of using the lines in a flowing way when it comes to the family and their camper; however, he also uses jagged lines in the horseman and demons to show a little intimidation. If you look closely at the ring around the mushroom cloud, you will notice that using a great detail of shadowing, there are demons and monsters swirling in chaos. This alone shows how Todd Schorr has mastered the art of acrylic painting with great detail. II. Analysis The subject of this painting is quite obvious. The four horsemen come straight from the New Testament of the Bible when it is depicting what will happen during the apocalypse after the rapture, and the innocent

Maximizing Stockholders Investment Value †Free Samples to Students

Question: Discuss about the Maximizing Stockholders Investment Value. Answer: Introduction: Discuss how successful the company has been at maximizing stockholders value over analyzing period. The discussion should be based on appropriate metrics and benchmarks. Share holders value is the returns received by the shareholders on the investment done in the company (Theeconomictimes, 2017). The value is created in the condition when the companies return exceeds the cost of doing business. The Skycity entertainment limited has continuous increasing profit which shows the positive impact on the shareholders value. Since the profit of the company is increasing the EPS also shows the increasing trend. Data of Skycity entertainment limited Particulars 2014 2015 2016 Shareholders Equity $773885000 $816922000 $1113042000 Number of equity shares 579706028 586071258 598489211 Net Profit $98537000 $128744000 $145672000 EPS 17 times 22 times 24 times (Source: Annual Report) Free cash flow is used to measure the amount of cash generated by the company after accounting for capital expenditure. If the company has more cash it can trail new opportunitys which can increase the profits of the company. Also having excess cash boost the dividend of the share holders. Creating enough cash for operating the business is an important indicator of share holders value since the organization can increase its sales without borrowing money from the market thereby decreasing the cost and increasing the profits (Kang, Anderson, Eom Kang, 2017). EPS of the Skycity entertainment is increasing which shows the positive impact on the shareholders value. EPS is the key indicator of to show share holders value of the company (Smith, 2015). Since the increase in earnings also increases the ratio, investors find the company more valuable. References Smith, T. (2015). What exactly do we mean by shareholder value?. Accessed on 1 May from: https://www.ft.com/content/463abec2-9721-11e4-845a-00144feabdc0 The economic times. (2017). Definition of 'Shareholder Value'. Accessed on 1 May from: https://economictimes.indiatimes.com/definition/shareholder-value Kang, H. C., Anderson, R. M., Eom, K. S., Kang, S. K. (2017). Controlling shareholders' value, long-run firm value and short-term performance. Journal of Corporate Finance, 43, 340-353. Skycityentertainmentgroup.(2015).Annual Report.Retrieved on 1 Marcg 2017from: https://www.skycityentertainmentgroup.com/media/1127/2015_annual_report.pdf Skycityentertainmentgroup.(2014).Annual Report.Retrieved on 1 Marcg 2017from: https://www.skycityentertainmentgroup.com/media/1138/sc5268_2014_annual_report_70_lr.pdf Skycityentertainmentgroup.(2016).Annual Report.Retrieved on 1 Marcg 2017from: https://www.skycityentertainmentgroup.com/media/1440/2016-skycity-entertainment-group-annual-report.pdf

Unit 9 Sales Essay Example

Unit 9 Sales Essay In this coursework I have look at car and the product that I have chosen for my sales coursework is BMW 7 series car because I think that, this car is in demand at the moment and I hope to sell it to my customers. My target audience are male and female between 25 to 50 with good job and income of à ¯Ã‚ ¿Ã‚ ½40,000 to à ¯Ã‚ ¿Ã‚ ½100,000 a year who is married or with a partner. Sale process This is the process, which the consumer follows when entering the car deal ship right up to when they leave, I hope that consumer will leave the car deal ship with the satisfaction of knowing that they used/purchased a product/service that is value for they money. We will write a custom essay sample on Unit 9 Sales specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Unit 9 Sales specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Unit 9 Sales specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Sale process 1. customer enter the car yard sale and looks around 2. I observe the customer and wait for them to approach me with help on the car they are looking for. 3. I will listen carefully to the question that they have and I will give answers to all the questions that they ask me. 4. I will show them to the car that they are specific looking for and ask them what they think of it. 5. If they dont like the car I have shown to them than I will give another options and ask them what they think of it and if they like any of the options that I have give them. 6. I will ask them if they like any of the options that I have give and if they like to pay one of the cars that I have shown them. 7. If they do than I will take them to my office and take their detail like name, address and telephone. 8. After one week I will ring for them to make-up his mind and if they still is interest paying the car. 9. I will update them with telephone Tell them what is the situation with his car and where is it now and when we can deliver his car 10. delivering the car and thanking them for using our services and they are welcome to use it again Sales process what is going to happen when the customers enters the deal ship to the future arrangements so which that the customer has already brought the car but you have to deliver the car to them and that is the last step in the sales process. Understanding of the general influence on the market and buyer One of basic of principle of marketing understands customers needs. An organisation maybe selling a variety of products and services to businesses or customers in a variety of market. In order to understand the needs of business customers, it is important to have knowledge of market in which they are operating. An understanding of customers needs helps the business to determine how to price, promote and place a product. Marketing is any set of arrangement that allow buyer s and sellers to exchange goods and services. BMW operate in a market where there are 3 or 4 other competitors in the market but BMW are leading in the market, which mean that they are selling more cars then other competitor so they have to watch out what other competitor are doing because the competitor will try to steal customers from BMW, this will try to do by reducing their price and hoping that they will attach by doing this so BMW have to watch out their competitor price and if their competitor reduce their price than they have to do the something so losing potential BMW are aiming at everyone with good job and high income because the cars are expensive. There two ways that people can BMW cars, the vehicle can be purchased outright and this mean that you will pay all the money straight way and the other way is on a instalment scheme and this mean that you dont have to pay all the money in one go and you can pay on period of time but you have pay 20% of the car as a deposit and you have pay à ¯Ã‚ ¿Ã‚ ½600 per for 60 months BMWs cars are seen as luxury cars because they have good standard for their cars and good reparation but this also mean that not a lot of people can afford BMWs cars during the rescission economy because low interest rate and there is very high unemployment and people are scared of losing their jobs so I dont think that people are going to buy a very expensive product during the rescission economy so I find out that if the dealership want to attract customer during the rescission period than they have to do instalment scheme and reduce the amount of money the customer pay every month until the rescission period is over. I find out that people are willing to buy expensive product such as house and cars during the Boom economy, during the Boom period there is very high interest and low unemployment and people have secured jobs and they are not scared of losing their Job and they are more likely to buy expensive product during the boom period despite interest cost and people are likely to pay the bank back the money they own during the Boom period. BMWs cars are expensive so this means that not everyone can afford their cars, only people up the ladder in social class can afford because they have good job and high income and the people up the ladder are people like doctors, managers, journalists and lawyers. People believe that BMWs cars are the best cars because they have good standard and reparation among the customers so if you have BMW car then you must be rich, with good job and well educated so this set good standard for the competitor to aim. BMWs competitors are Audi, Mercedes-Benz and Lexus but their cars nothing compare to BMW, so BMW have nothing to worry about its competitor Role of a salesperson It is important to dealership for salesperson to represent the company well so this means that the salespeople have to dress well and they have to be polite. it is important for the sales personnel carry out a lot of administration relating to sales but some tasks carried out more efficiently and in a more cost effective by support staff. The role of sales person is important because the sales person is communicating with the customers and if the sales person is rude to the customers than the customer will think that company is poor and this will damage public relations so that mean your customers will leave you and go to your competitor so the image is important and the sales person must not be too pushy and must be persuasive and they have to listen what the customers have to say because they will know what the customers needs and want are and they can direct them in the place and they should dress smartly and most be polite all the time. If the customers dont like the car that the salesperson has shown them different car. It is important for deal ship that salesperson can sell new and used cars. They may also sell other types of vehicles It is also important for the company that the salesperson can often work longs hours including some evening and weekend. The skills and interest that a salesperson needs to have are: * be self confident and have an outgoing personality * be of smart appearance, with a polite, pleasant personality and professional * be persuasive and enthusiastic without being overbearing * have genuine interest in and knowledge of cars * be able to work out costs * have good business sense * be able to work without supervision If a person has all this quality I believe that this person can become a successful salesperson and they can move up the careers ladders and maybe he/she can one day be sales manager. The influence on customers The sale person exerts one of three important forces to influence the customer these are: * The sale force * Advertising * Experience of the customer The sale force The sale force, by it skill in display and presentation, will effectively introduce the product to would be customers and will also create new customer by marketing new sales Advertising Advertising is very important because it will inform the customer of the existence of the company and its product and service and then motivate them to want them. Experience of the customer Experience of the customer will stem from the satisfactory service; enabling satisfied customer to influence other would be purchasers. There are other factors that effect consumer when purchasing a car, such as what the press or experts say about the car. This has a great effect on the buyers decision. Sales force and sales support/administration The Sales force are the people who are selling the cars and they include sales promote and sales people. Sales forces are very important because they are the ones who are communicating with customer and dealing with them face-to-face. If the sales forces are not smartly dress and they are not polite then this will give the company bad image to the customers and the customers will not buy anything from them. The Sales forces also communicate from the customer to the deal ship to find out what the customers needs are. It is important for the company to choose the sales force with different specialist in different area. An effective sales person first seeks to understand the needs, then concern and the situation of the customer. There are several important factors of the sales persons job relating to satisfying the customers: * To ultimately discover the customer needs * To interpret them into clear needs for his or her companys products * To ensure that good delivered provide continuing satisfaction The sale force has an important role in the identifying product/market opportunities. If the product is sold correctly and is specifically intended for the consumers problem. Dissatisfaction could still arise if the sale person neglects to make sure that the customer uses it correctly. What is customer service? Customer service give 100% total customer satisfaction and excellence in providing the consumers needs and wants. It deals with customer complaints and on how they respond to problems quickly. Making sure that the needs of customers are met by the product or service offered. Customers have needs when buying BMW products Customer needs vary from disabilities or with children so they give easy access inside their cart for disabilities. This includes disabled equipment so it is easy for them to access the car Providing information BMW use advertisements and other promotional activities in order to enhance their image and entice their target market. BMWS spend highly on time and money (which they have) in their advertisements (e.g. television, radio) in order to promote their products and inform the consumers to make them more aware. Giving advice Car deal ship gives the right advice; in order to make the customer is satisfied. They give their customers time to ensure that they have been given advice by having a customer service centre that provides customers with specific information. Taking and relaying messages The car deal ships customer services are to be alert and to listen very carefully to what the customer needs in order to give complete customer satisfaction. They make sure that they get the entire message right. Keeping records The car deal ship use Data Protection Legislation. Data protection is concerned with protecting the collection, storage, processing and distribution of personal information, which relates to their customers and their staff. A database is used to protect personal details. The other main method is Electronic Document Management Systems (EDMS). In this system documents are scanned into a computer and stored via a special computer program onto optical disks. Providing assistance The car deal ship may need to provide assistance for their disable customers Dealing with problems The car deal ships customer services focus on problems as a whole and give immediate solutions to each problem encountered. They also listen carefully and empathize with customer complaints, and then give immediate solutions to the problem. Staffs are trained to deal with problems and control the situation if there is a problem. Handling complaints The car deal ship listens to their customers describing their problem and the car deal ship then apologises to the customer for being inconvenienced. They always give a sensible explanation for the problem. They record all the complaints in the complaints log and that information is used to monitor complaints in an effort to continually improve their services and supplies and reduce further complaints. However, they record the customer complaints to monitor and reduce complaints. They respond to the complaints quickly Sale support/administration Sale people are help by everyone because the goal for everyone is to sale the car to the customers and it is necessary for everyone helps each other and an example of this is that the customer service department deal with the customer after sale service. This is hierarchy showing the organisational structure of BMW The sales representatives pass the information onto the sales managers, which is then passed onto the sale department. Instructions in the organisation are passed along line in the hierarchy. BMW offer after sales service for all them customers because the product the customers are buying from BMW are expensive and the customer want to make sure that there is not problems with the product. Always put customers requirement first, before other operation, so those customers buyer BMW product in the future. Knowing that they will get good after sale services. Planning to sell BMW operate in very competitive market therefore it is important for the sale force to offer more features on the car than its competitors so that buyers feel like they are getting value for their money. Successful selling must depend on the Knowledge of the product. A first step in all selling processes is to get into face-to-face relationship with the customers. Effective selling requires planning and preparation. The sales representative needs to identify the need of their potential customers. The sale person need to have a good knowledge of the products, they should be aware of the advantages and disadvantages. They should know what competitors are offering even if it is better than their products in the same way. The important thing is to be informed about competitions. A customer who is clearly dont want to buy BMWs product should not be pressure into buying a product that they dont want to buy it without any embarrassment, at least this person may come back to the company in the future when they are feeling comfortable about buying BMWs products if the shop has being polite and friendly toward this person. Selling is helping the customer see what BMW has to offer and it meet their needs, in order to be in control of their success, its necessary to ask questions. However the sale person has to be polite and sales person have to listen careful to the answer of the customer to find out, the customer need and direct them for the right product. BMW can never satisfy every concern a customer has. There will always be competitors who are offering better product which has more feature than BMW. To overcome this BMW can look at their competitors and see what they are offering to their consumers. The internal and external influence on the market and buyer The major external influence on the market and buyer are: * Boom economy * Recession economy * Competition * Tax * Government * Congestion charge The boom economy period will influence the market and buyers because there is low unemployment and everyone has secured Job and people are willing are buying expensive product such as car this period despite the very high interest from the bank of England. The recession economy period will influence the market and buyer because there is very high unemployment and people are scared of losing their job so they are not willing to buy very expensive such as cars. The competition will influence the market and the buyers because they are competing for potential customers so you will do anything to do get these potential customers from your competitor even if this means that you have to reduce the price of the car and be down on profit and way that a competitor can attach potential customers from you is by advertising to give extra factor on the car e.g. word globe system and the world globe system will tell you where you are and the direction of where you need to go to if you type the name of the place and it will show you a map and you will not get lost if you have the world globe system installed on your car. Another factor that they may offer you will be CD players with 10 CD change Tax will influence both the market and the buyer because if the government increase the tax on the cars then this means that the amount of people of buying new car will be reduce because buying new cars will be expensive to buying so this mean that only people up the social class ladder can afford e.g. doctor, managers and lawyer Government will have influence on the market and buyers because the government can increase tax on the petrol and this will reduce the demand for cars which mean all the cars that use petrol so I believe that the government has the strongest influence on the market and buyer. The government also put tax on the import cars so that mean if a car is made outside of the EU then that car will be more expensive than a car made in the EU. Congestion charge will influence the buyer and market because it means more money for the government and it will be expensive to maintain a car around central London If interest rate and inflation rises, then price will rise and fewer will buy a 7 series car, as it a luxury car. So BMW may need to redundant staff will decrease in the company. The market can be represented by a demand and supply curve, which maps out the market plan or intended market behaviours of companies. The strength and weakness of the organisation of sales force/administration of meeting customers need The hierarchy in a business is the order or level of management in a firm, from the lowest to the highest ranks. It shows the Chain of command within the organisation, the way authority is organised. Orders pass down the levels and information passes up. Business must consider the number of links or levels in the chain of command. Looking BMWs hierarchy. It shows that the director managing is in control of the business. There strengths of BMWs sales force are: * Everyone knows his or her role and position. Make makes it clear who is responsible for what * Every staff has individual tasks and duties, which reduce conflicts * Decision making can be easier Weaknesses of BMWs sales force are: * Their managing director is supervising too many people * Message from the director managing to the staff takes long and it going different filter which dont come the exact message from the managing director to the member of staff * Incorrect information may be passed on; this can affect the company objectives A first step in all selling processes is to get into a face-to-face relationship with the customer. Every sales person need to have good selling skills in order to complete a sales transaction efficiently. A sale is not complete until the goods are in the hand of the user and are giving satisfactory service. An effective sales first seeks to understand the needs, the concern and the situation of the customer. There are several important factors of the sales person job relating to satisfying the customer: * To ultimately discover the customer needs. * To interpret them into clear needs for his or her companys products. * To ensure that goods delivered provide continuing satisfaction. The sales force has an important role in the identifying product/market opportunities. If the product is sold correctly and is specifically intended for the consumers problems, dissatisfaction could still arise if the sales person neglects t makes sure that the customer uses it correctly. In order to meet needs of customers. BMW need to be organised effectively. The sales person for BMW needs to have good knowledge of the product that they are selling. This is important because: * It makes the customer trust the sales staff because the sales staffs have good knowledge of the product. * It allows the sales staff to advice customer on the suitable product for them. The sales person for BMW has to be ready to respond to customer questions quickly and honestly. The BMW sales forces have to task of introducing the product to customers and ensuring completion of the cycle from knowledge to satisfaction. A sales person-customer relationship is very important to accomplish the sale. The impression the customer receives from sales Person will usually form opinion held of the company. BMW has a company website, which enable people to book Test driving or even buy cars online, however due to advanced technology there have been a few job looses in the sale force. Recommendations for improvement at BMW I recommend that BMW should reduce the organisational structure layer because I feel like that information is taking longer to get from managing director to staff and when it member of staff then the message it is not exactly the same message that come from the managing director, so the advantaging of reduce the layer in organisational structure are: * Information from the managing director to the members of staff is received quicker and it is received as the exacted message that sends by the managing director. * The managers have less to cover themselves; they can focus on the most important jobs. * People at lower down organisation are giving more responsible and they feel like that they are part of a big family. * The BMW should give employees more responsibility so that they would feel more involved in the company which helps to keeps motivated. * The Managers should have fewer tasks so that they have more time to correct any mistake made by the employees. * The communication between the managers director and employees would be improve as there is less layers of the organisational structure which makes it easier for communication to flow easily. I believe that if the sales team are motivate then this mean that they will sell more car and this mean that BMW will increase market share. A way that BMW could improve their sales is that by having a theme day which will attract consumer to look around BMWs new cars and even test drive the new range of BMWs cars. This will give consumers a chance to drive a car of their chose without being pressure into buying this car. On this day they could have surveys being carried out for consumers to find out what customers think of the new range of BMW cars and services so that they can improve their cars and services in the future. Offering various and incentives and reward schemes can motivate staff and increase their performance. If a salesperson works hard, managers should recognise this and reward them for their excellent performance be it sales or just other employees. If all these are recommendation are carried out this could lead to sales levels increasing if staff are motivated, this will hopefully increase BMWs market shares. If they do crease decentralised structure then improvement may be implemented after a couple of weeks. Level of performance should start to increase after a few months. Penetration Evaluation Appearance /Preparation- when a consumer is purchasing a product, in this case a car; they want to make sure that they are dress smartly and they are talking to who knows what they are talking bout. I feel like that my appearance and preparation was preparation was good because I was dress smartly and looked confident. I think that my preparation was good because good knowledge and I knew what I was going to say but I didnt had a very good knowledge about BMWs 7 series cars because I had good knowledge about every car in the dealership and I was specialist in BMW 7 series cars. Opening- I feel like that my opening few words was good because my few words make the customer comfortable and welcome and made sure that I didnt put the customer under pressure to purchase something even though that was the intention When I made the customer comfortable and welcome than I ask the customer open-end question, and I ask the customer if he want to look around the shop and come to me if he need any help Establishing, Customer Needs: Questioning, listening- when the customer approached, I ask he question to establishing the Customer and I direct customer in the right direction, which I though was the BMW 7 series car, from the information I got by asking question and listening to the customer carefully and mostly of the question I ask was open-ended; this allowed the customer to answer freely. I kept my questions to minimum because I felt it might drive the customer away. Presenting Features and Benefits: Professionalism, Knowledge and Image- to make sure the customer feels comfortable throughout the sales process, I had to stay Professional. This will make the consumer feel that they are getting value for money due to the mine confident and knowledge on the product. If a sales person is not confident and dont have good knowledge of the product than I dont think that a customer want to buy something from this sale person. Handling Objections: Answering questions and Remaining Positive-it is important that when a customer wants to know different things to do with a product they purchase, it is important that a sale person know what they are talking about and if theta dont they should remain positive because I believe that remaining positive is vital in completing a sales because if the sale person is unsure or negative about the product then so will the customer. This is because they rely and trust the sales person and feel that they know the product better than anyone does. When I was doing my presentation I think that was answering all questions the customer and I answered best to my knowledge and I remain positive during the presentation and there was any question that the customer asked me which didnt give an answer to it Closing the Sale Confirming the Order and Future Arrangements- I believe that this is the last but most important part of the sale process because this is the part where all the hard work and the knowledge pays off. I think that my closing sales was good due fact that I made an offer the customer liked the car I show to him and I also offered a lot of benefit as such GPS and CD player to the customer. This was good for the customer because they think that they getting value for money but this are very costly for the company and I also offer the customer after sales after which was a guaranty and I offered the customer a warranty which was for 5 year and the customer accept but it cost the customer more money. As the future arrangements I delivered the car to the car which the customer really likes it because he felt more comfortable with me delivering the car to him and he said that he tell his family and friend about how good my services was