Crazy John's: Service the Crazy John's way
Service the Crazy John's way
The mobile phone industry has experienced incredible growth in the past decade with Australia having among the highest rates of mobile phone ownership in the world. Crazy John's, a readily recognised brand, is the largest independent retailer of mobile phones in Australia. Entrepreneurial spirit is highly valued at Crazy John's and a large investment is placed in human resource management and quality management.
As a result of reading this Case Study students should be able to:
- Understand the concepts of branding and entrepreneurship
- Illustrate methods of human resource management and evaluate this in light of business core objectives
- Demonstrate how organisational culture is developed
Introduction
Crazy? Perhaps, but certainly a business success story!
Customer-focussed
John Ilhan realises that great customer service requires great staff; without this he has no business.
Training for success
Staff are a major factor in the success of Crazy John's and therefore staff training and development is fundamental to Crazy John's human resource management.
Recruting great service providers
How do you get to work with Crazy John's?
Infrastructure to support great service, every time
In addition to having great staff, Crazy John's looks after its customers with effective systems and infrastructure.
Conclusion
Crazy John's shows us that a key plank in the success of any business venture is the relationship between the organisation and its staff.
Introduction
Customer-focussed
Training for success
Recruting great service providers
Infrastructure to support great service, every time
Conclusion
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| From: | Edition 2 |
CPA Australia: Contributing to business and ethical practice
Contributing to business and ethical practice
This Case Study examines the role of CPA Australia in developing the technical and professional knowledge of its members while ensuring members act with integrity. It explains the role CPA Australia plays in promoting accounting standards and best practice while ensuring knowledge is applied in a fair, honest and ethical manner.
As a result of reading this Case Study, students should be able to:
- Explain the role accountants play in contributing and promoting business success
- Understand the importance and necessity of abiding by accounting standards and business ethics
- Understand the requirements to becoming a CPA.
Introduction
Today's accountants need to be business professionals who combine the technical excellence and practical experience necessary to promote business success and maintain the integrity of the industry they work in.
The need for accountants to be qualified to ensure business success
Professional qualifications are essential in the accounting world. They ensure standard practice so that businesses work on a level playing field and allow companies to be confident that reliable and accurate information will be available to their stakeholders.
The role of CPA Australia
CPA Australia provides a knowledge base of timely information on the latest technical issues, changes to laws and industry developments.
The role of CPAs
The role of the accountant has changed over the years.
Promoting business ethics
The vision of CPA Australia is for its members to be the choice of employers and clients, and valued by the community and leaders in their profession.
Conclusion
CPA Australia makes a significant contribution to Australian businesses and society by providing members with critical information for business success and an ethical framework for decision making.
Introduction
The need for accountants to be qualified to ensure business success
The role of CPA Australia
The role of CPAs
Promoting business ethics
Conclusion
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| From: | Edition 3 |
Coca-Cola: Water, water everywhere...
Water, water, everywhere
This Case Study focuses on the domestic market for bottled water and investigates how Coca-Cola is continuing to develop its bottled water brands in Australia. It examines the various marketing techniques used by Coca-Cola by analysing the development and positioning of its Mount Franklin and Pump brands within a socially responsible business framework.
By reading this case study students should be able to:
- Outline the demographic characteristics of the bottled water market as well as major changes occurring within that market segment
- Describe the varied marketing and branding strategies undertaken by Coca-Cola in successfully developing its Mount Franklin and Pump brands of bottled water
- Analyse the role of Coca-Cola Amatil in meeting corporate responsibility and social objectives.
Introduction
When we hear the name Coca-Cola we might not instantly think of water. However Coca-Cola Amatil's brand Mount Franklin is the number-one brand of bottled water in Australia.
A growing market
As little as 20 years ago the market share of bottled water in Australia was almost zero.
Introducing the brands
What do we think of when we hear or see Coca-Cola, Microsoft, Google, Toyota and Disney? Well they are all instantly recognisable as some of the top brands in the world.
Developing new products
The reputation of a brand plays a key role in market positioning as it represents an organisation's investment in its products.
Ensuring sustainability
As part of its ongoing operations CCA has identified three main environmental objectives; sustainable water management, efficient energy use and a reduction in packaging and post-consumer waste.
Conclusion
One of the most consistent growth segments in the non-alcoholic beverage market is bottled water.
To download this case study as a free pdf, click the button below:
Introduction
When we hear the name Coca-Cola we might not instantly think of water. However Coca-Cola Amatil's brand Mount Franklin is the number-one brand of bottled water in Australia. In a market crowded with hundreds of competitors, Mount Franklin and the Pump range of products account for more than one-quarter of all bottled water sales in Australia.
Coca-Cola Amatil (CCA) is the local Coca-Cola licensee, manufacturer and bottler operating in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea. Coca-Cola is continually striving for growth in this Pacific region. A core objective of the company is to become the supplier of choice for carbonated and non-carbonated beverages. The company has also set a goal to expand in the health and wellbeing segment, or market category.
The non-alcoholic drink market consists of different product categories, the main ones being carbonated beverages (both sugared and sugar-free), water, sports drinks, energy drinks, juices and fruit drinks.
Over the past two decades the growth in the market share in Australia of diet drinks, bottled waters, sports drinks, energy and lifestyle drinks and other sugar-free, nonalcoholic drinks has been steadily increasing. In particular sales of bottled water have increased markedly over the last ten years while the proportional share of carbonated sugared drinks has been falling.
In Australia in 2006, CCA enjoyed a 58 percent market share of carbonated beverages through its key brands, Coke, Fanta and Sprite, a 27 percent market share in the water category via Mount Franklin and Pump and a 57 percent market share in the Sports category, primarily throughPowerade.
A growing market
As little as 20 years ago the market share of bottled water in Australia was almost zero. Save for a few imported high-end European brands and some sales of sparkling mineral water, Australian consumers purchased very little bottled water. This was in stark contrast to the high-consuming Europeans and even US water consumers.
However a fundamental lifestyle shift has occurred over this time which has seen this product category grow tremendously. The main reasons for this change can be summarised as:
A shift towards a healthier lifestyle including a move away from carbonated, sugared-drinks
A growing demand for kilojoule-free beverage options, especially when accompanying lighter meals such as bought lunches
The willingness of consumers to pay for the convenience of cleaner, more natural and ready-to-drink chilled water
The convenience offered by innovative packaging options such as squirt and pump-tops and bottle designs.
There is a general feeling within the community that drinking water can be a positive act both for oneself and for the community. Traditionally the carbonated, sugared, beverage market was dominated by children and teenagers. Females dominated the sugar-free or diet categories while males favoured carbonated, sugared drinks and flavoured milks. According to the Australasian Bottled Water Institute, bottled water is consumed by people across all demographics and occupations but the large majority tend to be young singles and couples, in particular females aged between 14-35 years. Generally bottled water consumers can be described as being more health conscious, contemporary and socially aware.(See note 1)
Australians now consume more than 20 litres of bottled water per person each year and the market is growing more than 10 percent a year. However local market consumption is still well below many European countries, with many consuming more than 100 litres annually per capita, such as Italy which consumed 184 litres per capita. The US consumed over 90 litres per capita.(See note 2)
Ongoing growth in health and wellbeing products has impacted on Coca-Cola's revenue sources. In 2001, CCA earned 95 percent of its revenue from carbonated beverages and only 5 percent from noncarbonated sources. By 2007, this had changed to 67 percent and 23 percent respectively, (the other 10 percent now coming from food products following the acquisition of SPC Ardmona).(See note 3)
Notes
(Source: The Australian Bottled Water Institute 2004, Bottled Water, http://www.bottledwater.org.au/scripts/cgiip.exe/WService=ASP0003/ccms.r?PageId=5002 , viewed 28/March, 2008).
(Source: Beverage Marketing Corporation, cited in John G. Rodwan, Jr., "Bottled Water 2004: U.S. and International Statistics and Developments,' Bottled Water Reporter, April/May 2005.)
(Source: Coca-Cola Amatil Fact Book, 2007).
Introducing the brands
What do we think of when we hear or see Coca-Cola, Microsoft, Google, Toyota and Disney? Well they are all instantly recognisable as some of the top brands in the world. However these worldwide brands didn't earn their reputation for quality and innovation by accident.
One of the key objectives of marketing is that of brand positioning. Organisations strive to ensure that their brand is seen as representing core values that match those of its demographics. According to Coca-Cola's market research, Mount Franklin water has a 99 percent brand awareness and 43 percent of females aged 25-39 say that Mount Franklin is their favourite brand.
There is a general feeling within the community and especially by younger females (the target demographic for bottled water) that drinking water is a positive act both for oneself and for the community at large. Coca-Cola Amatil's ongoing marketing of Mount Franklin has established brand value associated with this positive behaviour. Drinking water is a cleansing and purifying act that results in positive consequences. The purchase and consumption of Mount Franklin water promotes a sense of wellbeing. This association demonstrates how the positioning of a product, in this case Mount Franklin as Australia's number one choice for bottled water, represents the values of its consumers. In order to continue to grow the brand Coca-Cola Amatil will strive to "…build an emotional connection with our consumers, giving them a compelling reason to chooseMount Franklin above all else."
To this end Mount Franklin has established the Drink Positive, Think Positive, campaign. It's only natural that Mount Franklin has enhanced this connection through its community partnerships with the National Breast Cancer Foundation. As part of its three-year partnership, Mount Franklin bottles throughout October are redesigned to reflect the Pink Ribbon Campaign, point-of-sale material is changed to promote the campaign and an extensive print, TV, cinema and online advertising campaign is run. Mount Franklin's Drink Positive, Think Positive campaign features the Mount Franklin online well at www.wellofpositivity.com
. Each positive message left by consumers at the online well represents a monetary amount to be donated by Coca-Cola Amatil to the National Breast Cancer Foundation.
This innovative example demonstrates how a marketing program extends well beyond simple advertising to include community partnerships, packaging, distribution and multi-modal communication to build brand value in its core demographic. Partnerships based on social investment such as these create a win-win situation. CCA committed $250,000 of donations in 2007 alone. CCA believe that their actions will build loyalty to the Mount Franklin brand well beyond the campaign period. A similar campaign and partnership has also been forged with Landcare Australia.
Developing new products
The reputation of a brand plays a key role in market positioning as it represents an organisation's investment in its products. Organisations aim to leverage (or capitalise on) the strength of their brands by undertaking product line extension. For example Diet Coke (launched in Australia in 1983) was a natural extension of Coke and extended the Coke product line and brand.
Data collection and analysis is essential in new product development. Quantitative market research focuses on numerical information and key performance indicators (KPIs) and data such as market share, demographic targeting (Pump is primarily consumed by 20-30 year-olds) and sales growth (sales of Pump waters grew 35 percent in the first quarter of 2007). Qualitative market research relies on feedback through focus groups, new product testing and trials and web-based feedback.
Research and development in the bottled water market has seen the emergence of enhanced waters, which are based on adding natural flavours and/or vitamins and minerals to still water to enhance hydration. Enhanced waters are positioned somewhere between sports-drinks (which are primarily male-orientated) and still waters. It's only natural that an organisation such as Coca-Cola has tapped into the needs of this growing wellbeing market, with water that has enhanced flavour. Coca-Cola's Pump is positioned for the modern, active consumer. Its convenient squeezy bottle makes it an ideal choice for on-the-go hydration.
Ensuring sustainability
As part of its ongoing operations CCA has identified three main environmental objectives; sustainable water management, efficient energy use and a reduction in packaging and post-consumer waste.
Sustainable water management
There is ongoing concern at the environmental costs arising from the packaging and distribution of bottled water. Critics argue that the unnecessary transport of water leads to increased carbon emissions. The water used in CCA's bottled water products is sourced locally - from within around two hours' drive of their production plants. The bulk of their water is purchased at market rates from small businesses or farmers. Sourcing water locally means minimal environmental negatives, such as carbon emissions that come from unnecessary transportation of water.
Efficient energy use
Measures such as increased efficiencies in water use, less waste in plant operations and harvesting rain water (at Northmead and Eastern Creek) have helped CCA to maintain world's-best practice in the global Coca-Cola system, with just 1.55 litres of water used per litre of product in Australia.
CCA has installed a range of energy saving devices, resulting in electricity consumption for lighting declining by 30 to 40 percent. CCA expects energy saving programs to reduce greenhouse gas emissions by more than 2,000 tonnes of carbon dioxide a year. CCA is also a significant user of Green Power.(See note 4)
Reduction in post-consumer waste
CCA are partnering with key customers as part of the Refresh, Recycle, Renew program to implement public place recycling at venues such as theme parks, shopping centres and public events. Through further research and development, Coca-Cola is also working to ensure that packaging requires less glass and PET plastic. In 2007, over 25 million kilograms of plastic will be eliminated through packaging redesigns.(See note 5)
Notes
The Coca-Cola Company Climate-Energy Fact Sheet.
The Coca-Cola Company and Bottled water Fact Sheet 4.22.
Conclusion
One of the most consistent growth segments in the non-alcoholic beverage market is bottled water. This growth is particularly evident among women under 40 and with younger, 'urban' consumers. The potential for further growth in the market has extended to enhanced waters and other health and wellbeing products. Australia lags behind most of the developed world in the consumption of bottled waters, but organisations such as Coca-Cola have extended their product lines to create opportunities for increased sales.
CCA and Coca-Cola have embarked on a multi-varied marketing campaign that extends well beyond traditional advertising and distribution channels. The successful ongoing marketing of Mount Franklin and Pump incorporates media advertising, community partnerships, innovative packaging design and interactive digital engagement through the Internet and new media channels.
As the Australian market leader in bottled water, Coca-Cola has striven to be a responsible corporate citizen, balancing triple-bottom line objectives of market success, environmental sustainability and social enterprise.
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| From: | Edition 4 |
Coca-Cola: Make every drop matter
Make every drop matter
This Case Study examines how a global business, The Coca-Cola Company, works to support the effective management and use of a precious resource - water. It focuses on initiatives used both here in Australia and across the world that aim to achieve efficient water use and management both inside the company's production systems and, externally, in the broader community.
As a result of carefully reading this Case Study, students should be able to:
- Recognise the significance of water to individuals, business and the community
- Identify the use of water in a major production system and strategies developed to effectively manage its use
- Describe partnership approaches to encourage better water management and use in a range of communities.
Introduction
The Coca-Cola Company hardly needs an introduction!
The need for socially responsible business
In recent times, companies such as Coca-Cola have had a heightened awareness of their social responsibility.
Improving operational efficiency
Water is fundamental to the production operations of Coca-Cola.
Maintaining sustainability
Coca-Cola has a direct business interest in sustaining the world's supply of water.
Partnerships
The solutions to Australia's and indeed the world's environmental problems lie very much in the development of partnerships.
Conclusion
Sustainability of water resources is a serious environmental challenge for the global community.
Introduction
The need for socially responsible business
Improving operational efficiency
Maintaining sustainability
Partnerships
Conclusion
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| From: | Edition 3 |
Coates: Strategic human resources to achieve company goals
Strategic human resources to achieve company goals
This Case Study highlights the significance of strategic and carefully developed approaches to HR to the achievement of a company's long-term goals.
As a result of reading this Case Study, the student should be able to:
- Understand the inter-relationship between company goals and effective HR
- Analyse fundamental factors in the development of employees
- Identify specific programs that engage and develop employees
Introduction
Imagine trying to plan a big event such as the Commonwealth Games.
The Coates Way
How does Coates go about achieving this vision?
The HR function at Coates
The HR function at Coates operates at both corporate and business unit level.
HR strategy at Coates
Coates has developed the Performance Development Plan (PDP) for employees.
Engagement: happy to stay
Employee engagement measures the commitment employees have towards the business.
Develop our people: employee development at Coates
The Coates Way provides a firm direction for the business.
Conclusion
Coates, through the implementation of the Coates Way, is a company clearly focused on the future.
To download this case study as a free pdf, click the button below:
Introduction
Coates has 120 years experience, uses a comprehensive branch network (180 in all) and employs over 2000 people. The business supplies a wide variety of markets including engineering, building construction and maintenance, mining and resources, manufacturing, government, and events.
Coates aims to build a better future for all. Like all successful public companies it has in place a vision that it strives to achieve through its business plans, policies and practices. By 2010, Coates aims to be the $1 billion hire company of first choice for customers, employees, shareholders and suppliers.
In order to achieve this goal, Coates needs to engage its people and deliver a positive employee experience. Put simply, people who work for the business need to enjoy working with Coates, understand why they are there and what they are working towards.
The Coates Way
The Coates Way, which was developed in 2004, provides the strategic direction for the company. It is designed to ensure that all employees, whether they work in head office or at a regional branch, understand how the company's vision, purpose and values apply to them on a day-to-day basis. Explaining the company's overarching goals creates a strong focus for employees.
The aspects of the Coates Way
- Why we exist as a business - The Purpose
- Where the business is heading - Our Vision
- How we will get there - Our Critical Success Factors
- What behaviours are expected - Our Values
The company has developed four critical success factors to measure achievements and determine the success of the company and of individuals. These are the things Coates and its employees must focus on in order to turn the company vision into reality. The critical success factors are:
- Commit to our customers
- Develop our people
- Manage our fleet
- Grow our company.
The HR function at Coates
The goal of the HR team is to implement and improve HR systems that support the purpose of the business and its vision and values, by developing and delivering a range of HR initiatives that support the critical success factors.
Within the context of the Coates Way, the second factor, 'Develop our people', is clearly supported by the HR function. Coates has committed considerable energy, resources and time to developing its human resources managementprocesses in this area. Developing employees is one of the ways in which the
HR department assists the business to achieve its vision.
HR strategy at Coates
This intent sees the many and varied activities of the HR department clearly aligned to the company's overall goal and purpose.
A set of expected and concrete outcomes has been developed from the strategic intent. These set out what the HR department must achieve. These are to:
-
Positively influence employee engagement with more employees striving
for Coates - Develop and leverage the capability of our people (at all levels)
- Improve workforce flexibility and organisational effectiveness
- Enable employees to experience a working environment reflective of the Coates Way and a culture of safety, which will attract and retain the best performers.
The aim of the outcomes is to create a company culture where employees are committed to fostering the company vision. Coates aims to do this by providing the necessary training and support in order to develop employees' careers and skill sets in a safe environment. Excellent training and clear and measurable goals will improve how effectively people do their jobs. Essentially, Coates wants people to understand exactly what is required of them, enjoy their jobs and be good at them!
Coates aims to build a performance culture and there is a range of ways in which its HR function implements and reinforces the Coates Way to work towards achieving its vision of being the hire company of choice.
Implementing the Coates Way
Coates has developed the Performance Development Plan (PDP) for employees. This is not merely a meeting between managers and employees. It is designed to encourage staff to incorporate the aspects of the Coates Way in their daily work practices. The PDP reaffirms the Coates Way, provides the opportunity for feedback and assesses employees' behaviour against acceptable standards of performance. Performance criteria are designed to be easily measured, relevant and related to aspects of objectives that the employee can directly influence in their roles.
The PDP is about knowing the company and what is expected, to what standards and with what behaviours. It is about committing to performance objectives and being accountable, identifying opportunities for continuous improvement and formalising assessments at least once a year. PDPs also recognise staff achievements and invests in those employees who can make a difference.
Coates has also developed a Person to Position Profile (PPP) which considers the extent an employee demonstrates behaviours supportive of theCoates Way, outlines the expected standards of performance in their role, allows for self and manager assessment (which can be incorporated in to the PDP), and identifies the areas of expertise essential for an employee to perform at the required standard within the role. This PPP can be used as a tool for employee career development and recruitment.
To reinforce the Coates Way, Coates has conducted 2 follow-up sessions - Commit to our Customers and Valuing Safety. The Commit to our Customers session reinforced the importance of our critical success factor of Commit to our Customers and involved a 1 hour 'toolbox style' session. The Valuing Safety sessions focus on reinforcing our Coates Way values and aligning them with building a culture of safety. This session will involve a 2 hour interactive session with employees across each business unit.
Engagement: happy to stay
The concept of engagement is central to the management of human resources at Coates. Essentially it involves having employees that, while having the option to leave, actually choose to stay. The company does not want employees who only stay because they feel they have nowhere else to go. Engagement at Coates is illustrated below.
The benefits of having engaged employees are clear: they will 'go the extra mile' for customers which will contribute to over all business success.
How does Coates rate itself in relation to levels of engagement? It benchmarks itself against other, similar businesses, including the best performers. This benchmarking process involves using a set of measures, applying them internally through its own 'Climate Survey' and then using them to compare performance with other companies. Diagram 1 shows the results of this benchmarking process.
The results show that Coates has achieved a solid level of engagement. In particular, the survey showed that Coates has performed better than other businesses in areas such as career opportunities, quality of work locations and work tasks. Some areas for improvement included work/life balance, recognition related activities and the physical work environment. The process of engagement at Coates is an ongoing journey as part of the Coates Way.
Let us briefly examine the drivers that will further improve engagement levels at the company.
Drivers of engagement
Coates, through its benchmarking, has identified the four biggest opportunities to further develop engagement. They are:
- Recognition activities - employees are positively acknowledged for their efforts and performance
- Brand alignment - the image that the company presents to customers should be reflected in the company culture (sometimes called the brand environment). Therefore if Coates is presenting itself to customers as a progressive and growing company that is committed to its customers, the atmosphere when working within the organisation should reflect this
- Valuing people - showing people that their individual efforts are important and are recognised
- Career opportunities - employees can move either horizontally or vertically within Coates.
The surveys also allowed Coates to measure the biggest threats to employee engagement. The management used these results to develop a SWOT (strengths, weaknesses, opportunities and threats) analysis. This helps a company decide how to use the strengths and opportunities to offset the weaknesses and threats.
It is possible for the same factors to work for a business as both an opportunity and a threat. Coates identified that the business would be able to increase employee engagement by improving the ability to recognise and reward good performances by employees; however, this opportunity would become a threat to employee engagement if, having promised this, the business failed to deliver. The Coates Way is designed as a progressive and continuing approach to ensure that opportunities are not missed.
Develop our people: employee development at Coates
To achieve this, the HR department developed the following guiding principles:
- Intentional design where every program links back to the Coates Way, which is the decision-maker in whether projects go ahead
- Set expectations (e.g. performance standards, Person to Position profiles, position descriptions) where employees are clear about the outcomes expected
- Progressively build people capabilities from an individual level through training and development programs
- Targeting and focusing efforts on development and performance management opportunities where high performers are rewarded and any skills gap is closed
- That enhances Coates's capacity to deliver against our Critical Success Factors(all decisions, recruitment, employee goal setting etc should be taken with regards to helping the business achieving these successes).
Developing employees therefore concentrates on two areas - talent management and performance development. Coates has developed various training programs to aid this, such as Leadership Development Programs and Management Development programs, instructing employees in, for example, decision-making strategy and project management.
Conclusion
Coates, through the implementation of the Coates Way, is a company clearly focused on the future. In order to achieve its goal of becoming the $1 billion hire company it needs to fully develop and engage the potential of its employees. The Coates Way helps employees and management focus on what the business needs in order to achieve its vision and fulfil its purpose, whilst ensuring that employees have a challenging, meaningful and enjoyable experience at Coates. All strategies support the critical success factors that will lead it to the realisation of its vision for the business.
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| From: | Edition 7 |
Coates: Building a culture of safety
Building a culture of safety
This case study investigates and highlights Coates' commitment to safety as an integrated part of its people and business strategies. Promoting a safe workplace has major benefits to all stakeholders of a business. Implementing a safety strategy requires the engagement of employees to be effective. For change to be effective at Coates, the safety strategy also needed to be embedded within the company culture and aligned closely with the company goals and values.
As a result of reading this case study, students should be able to:
- Outline how the Coates' safety strategy has been aligned with the Coates' values
- Understand how a culture of safety is being integrated throughout the business
- Explain the importance of employee engagement to the implementation of a culture of safety
- Identify different modes of communication used to deliver the safety message at Coates.
Introduction
Established in 1885, Coates Hire Limited is Australia's largest hire equipment company, employing over 2,000 staff across Australia and operating in more than 200 branches and satellite locations.
Safety and the Coates Way
The Coates Way came about in 200It provides the strategic direction for the company.
The safety journey - implementing a safety strategy
The management team at Coates sees the new safety strategy as a journey.
Engaging the workforce
Implementing a culture of safety at Coates required effective employee engagement to be successful.
Use of communication and technology
The management of Coates understands and recognises the importance of providing a safe environment.
Conclusion
Coates has taken a proactive approach to occupational health and safety.
Introduction
Safety and the Coates Way
The safety journey - implementing a safety strategy
Engaging the workforce
Use of communication and technology
Conclusion
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| From: | Edition 3 |
carsales.com.au: Effective business strategy for online success
carsales.com.au: Effective business strategy for online success
This Case Study examines the growth and development of carsales.com, given the increasing trend of consumers using online businesses to source products and services.
As a result of reading this Case Study, students should be able to:
- Describe the business structure of carsales.com
- Identify factors that are significant to the business model
- Outline key features of that business model
- Assess the current and future success of carsales.com
Introduction
For many Australians, gone are the days of trawling through newspaper classifieds in search of a bargain. Instead, they are carrying out their shopping online – from the weekly supermarket shop to big ticket items such as a cars, bikes and boats.
Filling a market need
carsales.com’s continued success and growth in the market is largely due to theentrepreneurship that commenced with Greg Roebuck, which has continued with the incubation of creative ideas within the business.
Standing out from the competition
Marketing researchers and authors of Blue Ocean Strategy, W Chan Kim and Renee Mauborgne, contend that in order for a business to be successful they must create ‘blue oceans’ of uncontested market space ripe for growth.
Creating a culture of innovation
A culture of innovation means creativity and new ideas become central to the internal environment of the business.
Expanding the business
Just consider this simple question for a moment. If you want to get the best result in an exam – what will determine that?
Developing new products
New product development is a vital expansion strategy.
Planning continual business growth
The following quote by the CEO, Greg Roebuck, gives us some insight into the future of carsales.com.
Conclusion
Consumer behaviour is increasingly moving into the online environment, particularly for automotive related products.
To download this case study as a free pdf, click the button below:
Introduction
For many Australians, gone are the days of trawling through newspaper classifieds in search of a bargain. Instead, they are carrying out their shopping online – from the weekly supermarket shop to big ticket items such as a cars, bikes and boats.
carsales.com Ltd, Australia’s number one online automotive classifieds business, is at the forefront of this significant change in consumer behaviour.
The business model is focused on helping people sell things, plain and simple, and there are three key factors contributing to the business’s success. Firstly carsales.com is committed to continued innovation, especially in its use of online technology architecture to deliver the best possible quality solutions for all customers. Secondly the business is a youthful, fast-paced business environment reflected in the ongoing development of new digital and advertising channels such as mobile and social media. Thirdly carsales.com is driven by a customer-focused strategy,the belief that if you win the customer,everything else will follow. These three factors will be the focus of the material that follows.
Before looking at various aspects of the carsales.com business model, let us examine the company background and structure. Founded in 1997, and led by CEO Greg Roebuck for the past eight years, there are four major divisions under the carsales network umbrella:
- Private (for individuals who wish to buy or sell auto, bike, marine, homes, general classifieds and industry products)
- Dealer (for businesses that trade in auto, bike, marine, homes, general classifieds and industry products)
- Dealer and Data Services (support and research products for Dealers and Manufacturers)
- Display Adverting (for businesses that wish to advertise their products to the carsales customer base, i.e. Banner Advertising).
There are 26 brands, as indicated in Figure 1 below, where buyers and sellers can trade goods such as cars, bikes, boats (the focus of this case study) caravans, industry equipment and most recently homes.
This structure provides a range of revenue streams for the business. In relation to the automotive section of the business, carsales.com receives a significant proportion of its revenue from display advertisers, and motor vehicle dealers who pay for each enquiry they get from the website. In addition private sellers pay a fee for advertising their products on these sites.
Filling a market need
carsales.com’s continued success and growth in the market is largely due to theentrepreneurship that commenced with Greg Roebuck, which has continued with the incubation of creative ideas within the business. Greg was shocked by the inconsistency of information provided in traditional classified advertisements. As an entrepreneur, he recognised an opportunity and did something about it!He launched a business that immediately raised the quality and quantity of information available to buyers and sellers to achieve a sale. The continued diversification of the business from automotive products into a range of aligned channels, markets and geographies such as the sale of industry equipment further typifies entrepreneurship – looking for new ideas, managing the risks involved, but achieving commercial success. Underpinning this is innovation, which will be covered in detail later in this case study.
Seeing a market need is one thing but the capacity to meet that need relies on sound business planning. Figure 2 provides the application of some of the key elements of a business plan that would have applied to carsales.com when the business was first conceived back in the mid 1990s.
Figure 2:
Standing out from the competition
Marketing researchers and authors of Blue Ocean Strategy, W Chan Kim and Renee Mauborgne, contend that in order for a business to be successful they must create ‘blue oceans’ of uncontested market space ripe for growth. Such strategic moves, termed ‘value innovation’, create powerful leaps in value for both the business and its buyers, rendering rivals obsolete and unleashing new demand. Creating a blue ocean will largely come about through the development ofunique selling points (USPs). This is very much the story of carsales.com. The first unique selling point has emerged from the philosophy of the business-which is, to achieve a sale, not simply focus on creating another classified advertising avenue. This has led to the application of sophisticated, robust and efficient technologies that clearly help people sell things. carsales.com’s heritage is derived from automotive software, ensuring they have a specialised understandingof the business and future opportunities. The specific characteristics of this technology-based USP include:
- A range of robust online platforms
- Intuitive and accurate search functionality
- Quick and effective online ad creation
- Detailed data and information to enhance the buying and selling experience
- Immediate connectivity between buyers and sellers.
This USP has greatly contributed to carsales.com’s market leading position. The company holds the number one position by the key metrics (measures) in relation to traffic and revenue as shown inFigure 3 below.
Figure 3:
Creating a culture of innovation
A culture of innovation means creativity and new ideas become central to the internal environment of the business. It is a part of day to day decision making through to medium and longer term planning. A culture of innovation is very much reflected in the application of software technology that underpins the carsales.com web-based buying and selling experience, but is evident in many other areas of the business. Some of these are as follows:
- As the use of mobile phones continues to grow beyond just a facility to make calls and send messages, carsales.com has developed mobile websites to optimise viewing on customer mobiles and making it more convenient.The company made use of satisfied customers who had contacted the company by engaging them in the development of a new advertising campaign titled ‘Real people. Real results.’ (see example below).
- In late 2009 carsales.com established an innovative social media strategy for the business. This included establishing a ‘Social School’ – an initiative to recruit and train internal staff to become ‘Community Members’ responsible for updating and managing the company’s Facebook and Twitter portals in the correct tone of voice. A related policy was developed that established rules and regulations about using social media in a business form to help ensure that responses to posts were handled in a professional and dignified tone and that no confidential information was posted in these areas. carsales.com use their social media outlets to update followers with the latest company and auto industry news and respond to any customer service queries.
Expanding the business
Just consider this simple question for a moment. If you want to get the best result in an exam – what will determine that? Obviously the more marks you get on the paper compared to your classmates will determine your success.
The same applies to carsales.com – the more cars it sells the better its results. That is why the business is always looking to increase its number of listings through a range of related expansion strategies. Let us briefly examine four key strategies.
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carsales.com operates a portfolio of automotive and related website based businesses, some of which have been the result of acquisitions. For example in October 2005 carsales.com acquired Trader Online Assets which included the CarPoint.com.au, BoatPoint.com.au andBikePoint.com.au websites. This gave carsales.com control of another leading specialist automotive website publisher, CarPoint.com.au, extending its market leading position in the online automotive classifieds industry.
- In 2009 the business was listed on the Australian Securities Exchange (ASX). The most obvious benefit of this development is the access to capital markets to support future growth of the company.
- A broad range of partnerships have been established, including with portals such as Ninemsn and Yahoo!7 By promoting carsales.com on these sites, these partnerships increase brand recognition and generate more traffic to the site. In addition carsales.com power a number of search engines on manufacturer websites, including HSV, VW, Mitsubushi, Mazda, FPV, Saab, Holden, Chrysler and Dodge.
- carsales.com continues to develop new products which are attractive to car buyers, sellers and advertisers. These include developing further niche websites to take advantage of industry trends, providing car buyers with access to greater inventory by combining inventory across carsales’ various sites, improving searching and matching technologies, enhanced car listings and dealer specials, and developing enhanced advertising delivery capability (e.g. mobile, video).
Developing new products
New product development is a vital expansion strategy. A typical process is highlighted in Figure 4below.
For carsales.com new products are developed which are attractive to car buyers, sellers and advertisers. These could relate to new niche websites or improved search and match technologies.
Underpinning effective new product development is the need for market research. This can occur in a number of different ways. Firstly carsales.com looks at their peers in other related industries, both in Australia and overseas. These provide a benchmark of technology applications for carsales.com to measure themselves against. Secondly, they keep a close watch on emerging technologies and consider their application to the business. Thirdly, carsales.com might commission independent, third party research to support its own internal research. And finally they tap into the thoughts, ideas and comments expressed within social media.
Planning continual business growth
The following quote by the CEO, Greg Roebuck, gives us some insight into the future of carsales.com.
The long term business strategy is to continue to protect and grow the core business (automotive related products and services), while extending and enhancing carsales.com’s capability within aligned channels, markets and geographies. It expects to experience growth as the demand for online services across a broad range of products increases compared to print media. As an innovative business new products will be developed such as the previously highlighted mobile phone site that enhances advertising delivery capability. In addition the increasing quantity of data and pricing information will allow carsales.com to leverage into numerous growth opportunities. The future looks bright to say the least!
Conclusion
Consumer behaviour is increasingly moving into the online environment, particularly for automotive related products. carsales.com has seen this trend, developed an innovative business model that has led to considerable growth and recognition. This business model includes cutting edge online technologies, new product development and strong future growth potential.
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| From: | Edition 6 |
BOC: Promoting Gas & Gear through effective change management
Promoting Gas & Gear through effective change management
Throughout the world, many people come into contact with BOC every day, most likely without even being aware of it. BOC is a leading supplier of gases and related products, services and solutions in the South Pacific and its services and products touch almost every area of business, industrial and domestic life.
BOC recently undertook a significant change management process to revolutionalise its Gas & Gear retail outlets. The impact of the change affected staff, consumers and the BOC brand. BOC needed to manage the change very carefully through a well thought out strategy.
By reading this Case Study, students should be able to:
- Understand the concept of change management
- Outline the key steps in preparing to undertake a change management process
- Explain the importance of managing change
- Understand the role that people and their development play in managing change
- Understand the importance of engaging people affected by the change
- Gain support and sponsorship for the change from key stakeholders
Introduction
Almost every day, a great number of Australians come into contact with BOC without ever knowing it.
What is change management?
Change in any progressive organisation is inevitable. Any business that wants to thrive in an ever-changing world needs to adapt to the environment.
Changing the face of retail
BOC has spent $20 million revamping its Gas & Gear stores nationwide to create a pleasant retail shopping experience as opposed to the industrial supplies store of the past.
Managing the transition
BOC focussed on ensuring the best possible change management process by deciding upon the following course of action:
Communicating with staff
Changes to Gas & Gear were communicated to staff through a series of company meetings at which the changes were explained to staff.
Maintaining a brand
BOC needed to move away from the traditional builders' merchant arrangements in the original Gas & Gear stores.
Conclusion
BOC has effectively achieved a significant change to its business through its change management strategy in the retail chain.
Introduction
What is change management?
Changing the face of retail
Managing the transition
Communicating with staff
Maintaining the brand
Conclusion
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BOC: You're in great company
You're in great company
This Case Study examines the growth of a global business and the significance of effective HR strategies and processes to business success. As a result of reading this Case Study, the student should be able to:
- Understand the significance of HR to the success of a large global business
- Analyse a range of HR processes
- Identify specific strategies and programs used in a best practice HR environment
Introduction
Safety - the top priority
Human Resource Managment at BOC: enabling business success
Key HR processes: delivering success
Conclusion
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| From: | Edition 2 |
BHP Billiton: Sustainability and addressing climate change
Sustainability and addressing climate change
This Case Study profiles how BHP Billiton has developed and implemented its Sustainable Development Policy and dealt with climate change issues.
As a result of reading this Case Study, students should be able to:
- Outline the concepts of sustainability, climate change, change management, holistic business approach, and emission/carbon credit trading
- Identify why BHP Billiton developed its Sustainable Development Policy and addressed climate change issues
- Describe BHP Billiton's business case for and approach to sustainable development
- Explain the importance to BHP Billiton of addressing climate change issues.
Introduction
Imagine that the world is like a business.
BHP Billiton's holistic approach
BHP Billiton's purpose is to create long-term value through discovery, development and conversion of natural resources, and the provision of innovative customer and market-focussed solutions.
BHP Billiton's sustainable development strategy
A business will only survive if it is profitable and sustainable in the long term.
Responding to climate change
Climate change is a global issue that has caused serious concern over the past two decades.
Creating a climate change policy
BHP Billiton operates within a dynamic business environment.
Effective operational management - EKATI Diamond Mine
The EKATI Diamond Mine, located in Lac de Gras region, Northwest Territories, Canada, is an example of what can be achieved when climate change policies are implemented.
Conclusion
BHP Billiton takes its ethical and social responsibilities seriously and invests time, money and resources in numerous sustainable development programs.
Introduction
BHP Billiton's holistic approach
BHP Billiton's sustainable development strategy
Responding to climate change
Creating a climate change policy
Effective operational management - EKATI Diamond Mine
Conclusion
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| From: | Edition 3 |
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