International Business Management Plan: Whole Foods Market

Whole Foods Market is comprised of a chain of food-based supermarkets whose base is in Texas at Austin City. The main emphasis of the Whole Food Market is on the usage of organic and natural products. It has been prompted to be classified under one of the most responsible businesses socially. It has risen to be graded among the top 25 companies in the Green Power Partners.

1.      Company Background

a.      History

The Whole Foods Market began from a very humble beginning. It started as a single shop in a three-story building before becoming a multibillion entrepreneur. The company’s history could be traced back to 1975 when John Mackey was 25 years old. Mackey dropped out of college and borrowed a sum of $45,000 together with his 21-year-old girlfriend from friends and family in order to allow them set up a small food store. The store, then, was referred to as Safeway and has been dealt with natural foods only. The couple later, was evicted from their store because of using it for food storage purposes. They later moved in to live there. John Mackey subsequently entered into a partnership deal with Mike Skiles and Craig Weller. At this point, the Clarksville Natural Grocery was merged with Mackey’s Safeway to give birth to Whole Foods Market which now operates through many subsidiaries which are wholly owned.  (Petusevsky 31)

                    At the end of the company’s financial year in September 2011, it recorded $10107.8 million revenue. This was over 12.2% increase from the 2010 revenue, with its profit being $547.6 million forming an increase of over 25%.

Products

The products being offered by Whole Food are usually natural. The store should emphasize the fact that its products meet the standard level of foods that are free from additives, colors, artificial flavors, and preservatives among other food ingredients that are normally regarded as unsuitable for human consumption. (Petusevsky 23).

Whole foods announced in early 2007 that it would explore the acquisition of Wild Oats Market, which was by then the company’s closest and largest competitor in the market. This was to cost the company around $te.565 million and further an assumed debt of approximately $106 million. This has been the Whole Foods most expensive acquisition to date. It had yearly sales of above one billion in close to 100 stores and an employee base of over 8,500 people. (Paul 27)

b.      Sale Levels

The store offers online advertisement to the products that they offer. Its products can be acquired and ordered online. Furthermore, the products are sold in a variety of countries. Whole Foods grew, and by 2008, the month of September, the store has grown to have 264 stores situated in the United States and it also had 5 stores in the United Kingdom and among other various countries. This ensures that it has a large base of sales for its products. The store offers both retail and wholesale services in areas where they carry out their sales.

c.       Organization Structure: Strategy and Goals

The Whole Foods Market has an organizational structure which is sub-divided into twelve geographic segments. Each of these divisions is headed by a president which uses a market network known as Whole Foods Market in order to be effective in marketing strategies. There is a hierarchy of 4-phased employment from the Global Headquarters, Regional Offices, Facilities Employment, and down to the Stores Employment. Employees within the system are always encouraged to apply for jobs at the Whole Foods Markets. They focus on developing the employees’ skills and encourage working under no or minimal supervision (Paul54).

2.      Country Entry Product & Marketing

The Whole Foods Market is yet to set base in the United Arab Emirates. The UAE has been ranked as a rich country enjoying a GDP per capita that exceeds 2000 US dollars. Business in the UAE was ranked among the top 15 countries worldwide. It has a business environment that is conducive and its economy was strengthened. The economy in the United Arab Emirates is an open one, thus, allowing free business and investments without boundaries. With its GDP being the third (3^rd) in the world and places second in the Middle East, the United Arab Emirates offers a fertile ground for businesses. (Hodgetts,Luthans 98)

a.      Marketing Need

Whole Foods aims at expanding its businesses into the United Arab Emirates which is vastly becoming a business herb. Whole Foods, having recorded extreme success at home now, is greatly obligated to succeed overseas. The best choice for this expansion is in the United Arab Emirates. The store’s success was basically built upon extensive market research that is meticulous and planning well before venturing into the United Arab Emirates for the purposes of business. This market research ensures that the business venture is not an act of futility and that losses are not to be incurred later on. (Terterov 56). There is no room for underestimating the market temperament. In such ventures, surety and confidence does not overshadow the important aspects of market research. The new customers in the United Arab Emirates need to understand the patterns and impulses that shape their choices, preferences, and characteristics. Eventually, before expanding into the United Arab Emirates, there is the need to set up a business plan comprehensively which the Whole Foods have always done (Ireland,Hitt, Hoskisson & Hitt 132).

Existing Competition, Substitutes

Expansion into the United Arab Emirates needs adequate preparation and well-structured business plans which must be executed in a very rational manner. There is a lot of competition in the business field of UAE as a result of the open market environment in the region. This has seen established companies to continue dominating the markets while weaker companies disappear. In the UAE, it is fundamental that the products from a store should be of exceptional quality and unique in its own way. The products should also be of demand and effective if they are to stand the test of marketing. In other cases, there is a need to offer substitute products that serve the same purpose as the one in the market or more efficiently. These substitute products need to be better in terms of health matters, environmental concerns, and ultimately, of quality. The Whole Foods can withstand this market requirement given the fact that it deals mainly with organic products that are environmental friendly and good for health (Terterov 45).

Marketing Potential and Support

In order to survive and thrive in business in the United Arab Emirates, it is important for the market potential and support to be exploited. Whole Foods has to set a blueprint for all services and goods for marketing. It is also vital to be enfranchised by the competition and target customers. Marketing potential in UAE calls for a store to produce equally competitive goods and services at competitive prices. The products should be in an angle in which the rest of the competitors do not offer. Identification of locations, customers, and sale channels need to be hastened. This could be achieved if there is a laid down support system that supplements the functions and marketing in the store. Whole Foods has to implement these aspects if success in UAE has to be met.

b.      Marketing Mix

Marketing is very important in business success. Marketing mix refers to a tool in business that is always applied while marketing products and services. Marketing mix comes handy in the determination of brands being offered and determination of products. Every business entity has to build on the pricing, their products, promotion, and the place where the products and services are being offered. In contemplation to succeed in business in the United Arab Emirates, marketing mix must be observed. In service delivery, the consumer, cost, convenience, and communication to the consumers are vital. Due to the fact that in United Arab Emirates there is a free market, any business entity wishing to succeed must have an idea on what the rival companies offer. This will help to identify the reasons that lead to cheaper services and product sales by the other business rivals.  In UAE, market mix is important especially for stores and entities offering food products. Whole Foods, therefore, has to lay down a comprehensive marketing mix so as to evaluate their product and prices. This will go a long way in ensuring that the store offers products that are in line with the market environment and the needs of the citizens in the United Arab Emirates. There are 2 forms of marketing mix which include the producer and the consumer oriented model. In order to expand in the United Arab Emirates, Whole Foods has to embrace the producer model. This is in line with the food products that the Whole Food Market produces. Through the producer oriented model, the store would be able to match the free and open business economy of the United Arab Emirates. (Terterov & Shoult 55)

 

Four Ps: The Producer-Oriented Model

The four Ps is a producer-oriented model that was mainly based on the price, product, place, and promotion. The wants or needs of a consumer had to be satisfied. The item which satisfies the consumer’s wants or needs is referred to as a product. In business, the item can either be a service which is intangible, or a good that is tangible. Every business entity has to ensure that it produces products that are above reproach and of the desire quality in order to succeed in the United Arab Emirates. The products must have a specific life cycle and different levels of sales. There are times when the sale is always high, other times medium, while at times the sales are always low. For the sake of weathering all these stages, it is inevitable that the products produced should be in a position to meet the demand level. Product mix is also very important. An increase in the respective product line increases a product’s line depth. Whole Foods needs to consider the position of its products, know how to exploit the store’s brands, and know the position of its products in the United Arab Emirates if it wants to succeed in its expansion in the country. It is also important to note how the various products complement one another. . (Terterov & Shoult 73)

            The amount that was always paid by the customers in order to get a product or service is called the price. In order for any company to survive and make profits, it is very important that it takes a keen interest in its price. In the UAE, it is very sensitive when it comes to dealing with prices because adjusting the prices in the country has great impacts on the strategies of marketing, the sales, and demands of a product. It is important to identify the value of the customers so as to set prices.

Promotion of the products is also important in the marketing mix. This includes the necessary methods of communication as employed by the marketers in providing relevant information about the products. In promotion, advertising, personal selling, public relations, and promotion of sales are incorporated.

Lastly, the pricing is very important in expanding a business especially in another country. Place refers to the situation of a product which it is easily accessible. It also refers to the distribution of the products.

3. International Management

A. Strategy and Goals (Government Relations, Joint Venture)

Whole Foods needs to have a joint venture with other business entities in the United Arab Emirates in order to explore the country’s market. A joint venture is an agreement in business wherein two (2) or more parties came to an agreement of developing new entities and assets over a specific time span. In this agreement, the parties agree to contribute equitably and both are entitled to exercise control over the business and eventually sharing the expenses, revenues, and all the assets.  In joint undertaking, it is easier for Whole Foods Market to establish a base in the United Arab Emirates. The joint venture will assist the store to achieve a specific project in liaison with another business firm.  The joint venture could be aimed at achieving a specific project or in building a lasting business relationship. Such ventures can be entered through contracts, agreements in a rental way, or agreement contracts. In joint venturing, Whole Foods Market would be able to engage in other activities that will diversify the products which they will be offering in the United Arab Emirates. . (Terterov & Shoult 154)

There is also a dire need for having strain less and frictionless relation with the government in a foreign country if a business entity is to succeed. This applies to Whole Foods stores which look forward to expanding its productions to the United Arab Emirates. In this relation build up, the store will operate along the legal frame work and there will be a smooth relationship with the UAE’s government which is vital to succeeding in the country.

b.     International Structure (Where is the Power, Centralized or Decentralized?)

Whole Foods Market, being a multinational store, needs to set up international structures that are viable and have positive impacts to the business. International structures are vital in shaping the business field. In order to succeed in the business and marketing sector, it is important that a business entity understands the international structure and sets up a structure that will improve the business and maximize the profits. In these structures, the powers may either be centralized or decentralized. (Luthans 85)

In centralization of power, the decision making process and role was confined to a few people. The cohort of people makes all the decisions that are important and are tasked with approving all the decisions that are made at lower levels in the organization. The decision making process is always reserved in the top brass of the organization. It may take a structure, whereby, there are middle level managers who also make decision, but are subject to the top organ. Those in the lower area do take directions as issued from the top management which makes key decisions and pass them to the other levels to work on the implementation process. The Whole Foods could apply this centralized system in managing their international structures.

Decentralization of powers involves delegation of authority across various levels of management in the respective organization. The middle and lower levels of management are given authority to formulate minor policies. The top management is always tasked with making key decision and policies that affect the organization at large. Decentralization is always different from delegation. In decentralization, the lower authorities have some stake in formulating policies and are always given space and time. This decentralization formula could assist the Whole Foods in succeeding with managing its international stores.

c.      Staffing (Source of Managers and Source of Lower Level Employees)

In any business, managers and other employees play a major part in the development of a business entity. This ultimately leads to the success of business. Whole Foods needs to have competent, experienced, and qualified managers. This is difficult to achieve unless a comprehensive recruitment process is to be undertaken. It is also important to note that the fact that Whole Foods Market aims at expanding its stores to other parts like the United Arab Emirates, calls for a proper managerial and employees recruitment process. It is more effective to appoint a manager who is well acquainted with the business environment. In this case, if the Whole Foods is to effectively succeed in the United Arab Emirates, then, it must go on an outsourcing mission in the same country. This will improve the quality of products that will be produced due to the fact that the managers will be aware of the marketing scenario in the country. To further enhance the strength and efficiency of product provision, there is a need for the Whole Foods to employ local residents as low level employees. This will ensure that the productivity rate is high in the stores and will create a good rapport with the locals in the country. By having most of the staff members of an organization to take from the respective country, it is easier to create a concussive business environment that will play greater advantage of the store in a foreign country.(Luthans 112)

Nevertheless, there is no harm in outsourcing for managers from a different country especially in the event that quality and experience is needed. In fact, having few managers from a different country having a different business environment will eventually add to the new or different ideas in the business that may be implemented to aid more quality.

d.     Hours of Operation

Opening and closing times of a business is always important. This is for a fact that there are always some trustworthy customers who are usually loyal to a specific business entity. In order to get a grip on such customers, it is vital that a business stays up to as late as possible and ensure that whenever a customer needs an item, it will be available. There is also the need to avoid a scenario where a customer needs something from a store, but has to pick it from another store because the favorite store is closed.

In the event that the Whole Foods Market opens up in the United Arab Emirates, it will have to adjust its operating hours. This is basically because in the Unites States of America, shops and businesses close up earlier than those in the UAE. For instance, in the United Arab Emirates, shops and businesses open up at around 7 o’clock in the morning and close at around 10pm to 12 midnight. Such hours are longer as compared to those in the US. This, therefore, means that if the store is to succeed in making maximum profits in the United Arab Emirates, then, it is obliged to adjust its working hours.

e.      Reward and Punishment System

Rewarding of outstanding employees in a business contributes to the development of a business entity. When employees perform well in any business, rewarding them will lead to replication of the same good work and propel the business to have higher profits. At Whole Foods, there is a fundamental value of striving towards achieving excellence and happiness among its members. (Luthans,Doh 287). This has been done through rewarding those who do well in carrying out their duties as a means of showing that they are being appreciated for their good work in the store. Rewarding could take different shapes. There is the thing that we call an intrinsic and extrinsic reward. Intrinsic reward is an appreciation that is given by word of mouth. Such rewards do make workers feel appreciated in an organization. Extrinsic rewards include physical handing of rewards and prizes. This is always done mostly during companies’ meetings. Those who excel in their lines of duty are rewarded for their good efforts. Whole Foods Market applies different forms of rewarding their employees. Similarly, the employees are always given medical cover and insurance that highly motivates them and made them feel appreciated in their stores. Whole Foods Market’s stores further set aside funds from their budget to be used in evaluating and developing the employees among other incentives and benefits as a form of reward.

Despite the fact that there are rewards for those who excel, there are also punishments for those who contravene the principles; policies and ethics of the stores. There is always the need to have a committee which is bestowed with the responsibility of ensuring that discipline is maintained among the employees. Functioning as in case an employee is involved in graft cases, that measures could be taken like suspension or termination of contract. This ensures that there is discipline in the organization (Luthans,Doh 325).

f.        Control System

Control system is important in managing, commanding, regulating, or directing the functioning of other systems or devices. Control system is necessary in the success of any business. Whole Foods has a control system that is used to monitor and have a data base of all the aspects in the stores. In order to make more profits and succeed in expanding its business, there should be a more sophisticated and amalgamated control system that will come handy in easy management of the workers and all the employees in the stores.

Whole Foods Market has a setup of 17 companies. The different companies specialize in dealing with different types of products. There has been a horizontal integration and there were new stores opened to integrate the other stores. With the increase of demand for natural food products produced by the Whole Foods Market, there was an expansion program. There is a company culture at the Whole Foods Market; the stores highly regard its members.

g.      Social Image and Ethics

There have been mixed projections in terms of image and ethics at the Whole Food Market. In the recent past, Whole Foods has been subjected to a lot of boycotts and resistance in terms of locations of stores. There have been further criticisms on its policy that it uses to promote its brands. The policy has been termed as an aggressive one. It has also faced a lot of fructuous relations as a result of their issues on labor, business practices, and product selection.  (Luthans,& Doh 97)

On the other side, Whole Foods has experienced a series of positive image building and ethics. John Mackey, the company’s CEO was awarded the best CEO in the world. The company was later awarded a top honor by the Environmental Protection Agency in 2006 and was also awarded with a Green Power Leadership Award and Green Power Partner in the years 2004, 2005, and 2006. The store also became the 55^th largest revenue contributor in 2005 in the United States of America. The social image of the store was also boosted in 2003 when its CEO was named the Overall National Ernst and Young Entrepreneur of the Year. The Whole Foods has also won a number of retailers’ awards. Such awards have boosted the social and ethical face of the store. In the international front, the Whole Foods store is fast gaining prominence worldwide. Its quest of expanding its stores to the United Arab Emirates will be achieved only if the above factors will be taken into consideration. (Terterov & Shoult 134)

Works cited

Hodgetts,Luthans. International Management: Culture, Strategy, and Behavior.  London: Irwin/McGraw-Hill. 2000. Print.

 Ireland,Duane, Hitt, Michael, Hoskisson, Robert &. Hitt, Michael. Understanding Business Strategy: Concepts and Cases. Cengage Learning. 2008. Print.

 Luthans,Doh. International Management: Culture, Strategy, and Behavior.

            McGraw-Hill Companies, Incorporated. 2011. Print.

 Paul, JM. Whole Foods Market---A Communication Plan to Engage the German Market. California: University of Southern California Press. 2009. Print.

Petusevsky, Steve. The Whole Foods Market Cookbook: A Guide to Natural Foods with 350 Recipes. London: Crown Publishing Group. 2010. Print.

Terterov, Anthony Shoult. Doing Business with the United Arab Emirates. London: GMB Publishing. 2006. Print.

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Ford motors on its new Ford Fusion

Introduction

                    Ford is an automaker that has a multinational setup and is based in the United States of America. The Ford Motor Company is set in Detroit, a suburb in Dearborn in the state of Michigan. Henry Ford found the company and in the 16th of June 1903, it was fully incorporated. Ford Company deals majorly in commercial vehicles and the sale of automobiles, with these under the brand name of Ford, while the company produces luxury cars under the brand name of Lincoln. The company had been producing tractors, heavy trucks and varied components of automotive in the past. The company further have stake in the United Kingdom’s Aston Martin and Japan’s Mazda. The Ford Company is listed among those businesses in the New York Stock Exchange despite having minority ownership, controlled by family of Ford. (Batchelor, 1994)

                    The company introduced the manufacturing of cars in large scale and its workforce is managed in a large scale sequence of manufacturing crafted as the assembly lines which was later to be largely known as Fordism by 1914. In the United States of America, Ford Company is listed among the leading automobile manufacturing, taking the fifth position in terms of size of production in Europe and worldwide in terms of its vehicle sales as at the year 2010. In 2009, Ford Company was ranked the fifth in Europe by the Fortune 500 list in terms of revenue. Its employee base of worked adding up to approximately 213000 people and a production of 5.5 million automobiles adds to its market strength.

The Ford Fusion

                    The Ford Company introduces the Ford Fusion model in the year 2003. This was a model that was aimed at thrilling the automobile industry and adding up to the efficiency and comfort of the consumers. The Ford Fusion was defined as being hot as it was good looking and had a mid-sized four door. The model was had its windshield raked steeply, it has a tail that was nearly fastback and had a touch of greenhouse which was sleek. The model was greatly pioneered by the Hyundai Sonata and the Mercedes Benz among other models. The Ford Fusion car was at least more detailed and was more efficient and luxurious. The introduction of the Fusion was widely accepted in the United States of America and spread beyond borders to European countries among other global markets. The introduction of the Fusion was a great step towards market dominance and productivity increase for the Ford Company. Many consumer could get the new touch thus offering a wide range of variety of sleek automobiles to chose from.

Marketing mix

                    Marketing mix stimuli includes advertisements, products, packaging, brands and the ultimate purchase points. The marketing mix stimuli involve the management and design that goes a long way in influencing the responses by the consumers. The consumers are always moved by the brands which do inform on the customers’ choice. The marketing mix stimuli do influence the affective, cognitive and the behavioural responses to various products. (Pride & Ferrell, 2011)
Consumer behaviour

                    The marketers of all the companies need to study groups, organisations and individuals. This is referred to as the consumer behaviour. Consumer behaviour evaluates the various processes that are used in securing, selecting and the disposal of products, experiences, ideas or services with an aim or satisfying the wants and needs of the society and the consumers, having an impact on the whole processes. Consumer behaviour deals with the study of how the customers are informed psychologically, sociologically, socially anthropologically and economically.

                   This aspect has been greatly applied by the Ford Company in an attempt to try and get to understand the processes of decision making of its customers. This has been vital in identifying the facts that do inform the decisions made by groups and individuals concerning the various products from the Ford Company. The company has been involved in behavioural and demographic variables. This has been in its verge to identify the wants of the customers. This has enabled the company to assess the different influences that are on customers alongside other groups such as friends, family, reference type of groups and the entire society generally. This was the factor that initiated the introduction of the Fusion into the market.

                    Ford Company acknowledges that the customers play various roles that include payer, buyer and user. The behaviour of the customers is always based on the buying behaviour of the consumers. Though the consumer behaviour is usually difficult to accurately predict, the Ford Company has been professionally studying the consumer behaviours. Emphases are always laid on the management of customer relationship, consumer retention, marketing done one to one, customisation and personalisation.
Consumer cognitive response

                    Cognitive response is always developed as a result of communication which is always done persuasively thus triggering the change attitude. Cognitive response does affect the customers’ attitude as concerns making choices on the various products. This is always fast tracked by the persuasive communication which always goes a long way to the customer’s interpretation, elaboration, integration and manipulation of the information that a customer has received. In this case, customers are always exposed to various information concerning the products that are always offered by different companies which have been done through advertisements in the internet, print media, and billboards among others. The persuasion is always successful when a marketer uses some information which had earlier been viewed as optimistic and viable. In relation to marketing of products, consumers are always easily and fast persuaded.

                    The Ford Company has done this persuasion in reference to their earlier products; this has seen most of their newly introduced products become acceptable and easily bought by the consumer. The Ford Company has seen its products well received and measured in the level of their previous products. The cognitive kind of response usually involves a connectivity developed in relation to the response that had initially been fronted by the customers and the resultant attitude that followed.

Consumer affective response

                    The affective response is always based on the opinion or thought that one makes based on the images, symbolic and perceptual representation. The images are always marked and have an either positive or negative formed feeling that is in most cases always linked to the somatic status indirectly or directly. Positive marking to the images do become an incentive signal and do go a long way in increasing the accuracy of the decisions taken by individuals or groups of consumers. This trickles down basically to the advertisement and the images that are always presented by produces.
                    The Ford Company has applied the affective aspect of consumers in succeeding to effectively inform them on the decisions of trusting in the Ford products. This has been done through extensive marketing visually. The visual representation of the Ford Company’s products had been intentionally done in a magnificent way, constantly depicting the company’s products to be among the best of the bests in the market. This has created an informed decision on the consumer field and there has been a largely informed perception that all the automobiles and products from the Ford Company are of quality and meet the pricing that is always attached to them. This has led to an increased sale of the company’s products thus leading to huge profits realized by the Ford Company.

                    When a positive marker is linked to an image, it becomes a signal of incentive. He hypothesized that somatic markers increase the accuracy of the decision process and the absence of these markers, mostly seen in people with certain type’s brain damage, degrades the ability to make good decisions. This hypothesis arose when observing patients with damage to their prefrontal cortex who had severe impairments in personal and social decision making despite their other abilities.
The Four P’s
                    Marketing mix is always used as a tool in marketing by various businesses and professionals in marketing. Marketing mix is always a very crucial aspect as it always determines the brand and product’s offering. The marketing mix always goes a long way in applying the price, the product, promotion and the place, usually referred to famously as the four P’s of marketing. There has since been an expansion of the four P’s to eight P’s in order to address the emerging service provision nature. Concurrent to the application of four P’s, the four C’s has also been applied. This includes the cost, consumer, convenience and communication. (Hoffmann, 2008. a)

                    The Ford Company has managed to stay at the top in terms of production and sales. This has been majorly because of its exhaustion in terms of the market stimuli. This was further informed by the introduction of the Ford Fusion model. The company’s employment of marketing mix stimuli has kept the company’s a major stake in the automobile industry. Ford has explored various products, prices, promotion and place.
Product
                    In the view of the four P’s, the product refers to the items which do meet the customers’ expectations thus satisfying a customer’s wants or needs. This is always a good that is tangible or can be a service that is not tangible like the services offered in hotel industry, tourism, financial industry, etc. the tangible products do have existence which is physical and independent. Most of the manufacturing, processing and assembling industries do offer tangible products. Among them is the Ford Company which deals in automobiles production. Other industries that produce tangible products include the disposable razor producing industries. (Hoffmann, 2008. b)

                    In order for an industry to succeed, it must ensure that its products are of desirable qualities to the consumers. All the products do have a life cycle which does include the phase of growth, the phase of maturity and finally the period where eventually sales do go down. This research is very inevitable for all those in the production market because it will go a long way in assisting the producers to plan and know how to tackle the market as far as the different stages of their goods are concerned. This goes hand in hand with the product mix which involves the increase of various product mix vis-à-vis having an increase on the product lines number. Moreover, the exploitation of the brand is always vital by the marketers alongside the exploitation of the resources on the various companies. This is always done but with a close relation to configuring the product mix and eventually complementing all the products. The strategies to develop the product are always explored by the marketers. (Hoffmann, 2008. c)

                    The Ford Company has applies the market mix and the product overview as concerns the four P’s. This is because the various products that the company produces have been having the desirable characteristics. Such products like the automobiles, trucks. Buses, tractors and many more have reached a thresh hold of customer satisfaction. For instance, the company’s automobiles are of a wide range in which the customers can easily choose from. This ranges from luxury automobiles which are produced under the Lincoln marquees and are spread all over the globe. The introduction of the mercury brand, edsel brand and the merkur brand saw an increase in sales as a result of customer preference to them. Further introduction of the jaguar and the Land rover models was received well in the marker for their convenience and quality. The company has also diversified in its production. This has trickled down to production of buses which have been used by schools and trucks for the purposes of building and constructions. The tractors from the company have been marketed as the best in terms of their performance and the company has also explored production of sports cars for racing.
Price
                    Price refers to the amount that a customer always pays in order to get a product. Pricing is always an important aspect in business as it is by prices that a company establishes the losses and profits thus enhancing and playing a pivotal role in its survival. Prices are always changed depending on the demand of the products, the sales or the product’s price elasticity in the market. Eventually, the change of prices does have a great impact on a company’s marketing strategy. It is always wise in setting prices that complement the elements that are in the market mix. Setting a price does require a marketer to have the knowledge of the perceived product value by the customers. This is always determine through market penetration pricing, neutral pricing and the market scheming. (Hoffmann, 2008. d)

                    There must be consideration for the differential value which includes the customers’ views with regards to the attributes of the product versus those attributes of the customer alongside the reference value including the customer’s view on the competitive view of the customer as concerns the price of the product. The Ford Company has had a professional touch in its pricing, a factor that has contributed to it being a leading company in the transformation of the current business world. The company has created an automobile company which has been contemporary. The company has ensured a price level that matches the customer expectations and the quality of the products. The company has intensely marketed its products and the different brands in deferent price indexes which have remained emotionally and culturally relevant, being in match with the other companies’ products. The company is committed in the delivery of products whose qualities match the prices. The products by the company have been of efficiency such as the hybrid and electric vehicles, which have greatly matched their prices.
Promotion
                    Promotion is always vital in the marketing and growth of a company. Promotion is the communication methods that are always employed by a company’s marketer in order to provide the relevant information to the various customers concerning the products by the company. Promotion is an amalgamation of various processes like public relations, sales promotion, personal selling and advertising.

                    The Ford Company has intensified its promotions and advertisements of its varied products. The company has engaged in internet and radio advertisements, cinema commercials, billboards and through print media that is paid for. Public relations has been a vital aspect and brought a lot of influences in the company’s growth and realization of profits. The company has been involved in indirect paid for sponsorship deals, events, trade fairs, seminars, conferences, exhibitions and press releases. This has greatly impacted on the realization of more profits for the company. The For Company has also been engaging in word of mouth communication which is a form of informal communication. This has been done to customers who have been satisfied and other specific people to maintain the momentum of the market. This has increased the popularity of the products alongside the sales. (Hoffmann, 2008. e)
Place
                    The provision of products in places where they are conveniently needed is always important for every business. Distribution is also an integral aspect of the place. There are strategies that are always employed in the distribution of products. These do include distributing the products exclusively, selective distribution, franchising and intensive distribution. This is always used by the marketers in order to complement the marketing mix aspect. The Ford Company has established various distribution companies all over the globe. The company has had distribution in various parts of the world including the North American countries. The company has established supplementary companies in European nations including Britain and Germany. Other places include the Japan, Brazil and Argentina in South America, New Zealand and Australia in the Asian Pacific among other parts of the world. This wide distribution of the Ford Company’s products has contributed to the immense sales and increase of the profits of the company.
Conclusion
                    The Ford Company has managed to be a key market player in the automobile industry. This has resulted from the fact that the company’s management and marketers have effectively and extensively exploited the four P’s in marketing alongside the various customer responses. This has been vital in the realization of high levels of sales an ultimately making the company a preferred choice in terms of the products that it offers to the market. The Ford Company has ensured that it leaves nothing at stakes as in the sense of keeping its advertisements and consumer packed information as concerning their products that they offer. This has gone a long way in ultimately informing on the decisions that the consumers have taken as to their choice. For instance, the company has had classy and flashy pictures in billboards that have greatly influenced the consumer perception to their products. The media adverts have been designed in a manner in which the consumer is convinced that the products from the Ford Company are the best to have. Exceptionally, the Ford Company has ensured that its products are spread across the entire globe thus making it accessibly easier for the customers to buy their desired products. The costs have been outlined and the qualities of the products do match up the coats.

References
Ray Batchelor (1994). Henry Ford: Mass Production, Modernism and Design. NY: Manchester University Press ND
Stefanie Hoffmann (2008). Are the 4 P's of International Marketing of Equal Importance to All Firms? What Factors Might Cause Some to More Or Less Important Than Others?: A Short Article. Norderstedt: GRIN Verlag.
William M. Pride, O. C. Ferrell (2011). Marketing 2012. London: Cengage Learning.
www.guardian.co.uk/...business/video/ford-barb. Barb Samardzich on the future at Ford's blueprint for the company.
www.youtube.com/v=kzRnZjY82xE.  The Ford Motor Company: Moving America Proudly Since 1903

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Research Paper: Pay Grade/Pay Scale

 

Pay Grade/Pay Scale

Name
Institution
Date

0.0.Table of contents

1.0.Abstract……………………………………………………………………………………….3

2.0. Introduction………………………………………………………………………………….3

3.0. Pay grade…………………….………………………………………………………………4

3.1. Achieving a good pay grade…………………………………………………………….5

3.2.Qualification…………………………………………………………………...…………5

3.3.Impress the company……………………………………………………...……………..6

4.0.Using pay scale…………..………………………………………………………....…….7

5.0. Purpose of using pay grade…………………………………………………….……….8

5.1. Basics of pay grade………………………………………………………………….……9

5.2. The general schedule in hospitality industry………………………………………….10

5.3. Equity in payment………………………………………………………………...…….10

5.4. How a pay grade works in the tourism industry…………………………………..….11

5.4.a.       Setting pay scales………………………………………………………………..…..13

5.4.b.       Consider the pay grade………………………………………………………….….13

5.4.c.       Establish the rate range………………………………………………………..……13

5.4.d.      Job pricing……………………………………………………………………………13

5.4.e.       Midpoint………..…………………………………………………………………….14

5.5.Summary……………………..…………………………………………………………..14

5.6.Conclusion…………………………………………………………………………….….14

5.7.References………………………………………………………………………………..15

5.8. 

1.0.Abstract

Working is every human being’s duty and job is what defines what a human being is, being part and parcel of a human’s life. The assignment and allocation of job is always done on the level of skills and qualification that one has. Commonly, positions occupied by people in various jobs are always based on their degree qualifications though there are rare instances where there are those holding the higher positions without having adequate educational qualification. In this case, the individuals do have some skills or special attributes that lead them to be entrusted with the responsibilities that come with the job. The current situation in the job market is one of high competition where every individual has skills and is striving to land high profile jobs with higher pay.

2.0. Introduction

In the hospitality industry and especially the tourism industry, moving up in the employment scales without educational qualification is always difficult. The pay grade scale is usually determined by the post held by and individual. In this respect, the post that one rises to is squarely dependant on the level of academic qualification. There have been incidents where promotions have been blocked on the basis of inadequacy in academic qualifications.  Learning as much as possible should be an individual’s main aim. This is especially because the tourism industry is a very sensitive industry to handle as it entails even handling of strangers and foreigners. These foreigners always have an impression to them depending on the services that are accorded to them. Reaching a high pay grade scale in this industry needs one to have extensive knowledge which can only be measured in terms of the academic achievements and qualifications. Getting the opportunity to study and reach a level that earns one a higher pay grade scale is a rare opportunity that most people lack in the current society. Most people in the globe wish to achieve the high pay grade scale but fall short of the golden opportunity of attaining the high academic qualification that is required. Everyone in the job market aspires to reach the highest pay grade scale but is always held back by certain factors ranging from responsibilities to other personal incapability. This has most often than not led to the cancellation of a lot of promotions. Recruitment of people with high pay grade scale in the tourism industry is always based on qualifications as well as their performance records, just as it is in all the other industries. This is because high levels and grade mead an individual is to be in charge of the team in aspiring to reaching the goals of the industry. (Bohlander& Snell, 2009)

3.0. Pay grade

Pay grade refers to a scale that is used in controlling the pay grade system. It is a unit that is applied in the public service both in the military and the civil servants. Pay grade is also used in the private sector and in the companies. Through the pay grade, the employment is often facilitated through the provision of a framework that indicates the ranges of the salaries instead of the negotiation that is open. Pay grade is basically comprised of two different dimensions. There is a vertical range in the pay grade. This is a dimension whereby the levels correspond to the academic requirements and responsibilities that are attributed to the specific level. There is a horizontal scale dimension. This scale contains the compensations that are monetary based and depends on the length of service and the performance quality of the employees in question. In both the horizontal and the vertical dimensions, the employees progress based on the appraisals that are regular and constant. For one to move to higher pay grade within the tourism industry, there must be evaluations that are usually carried out by the concerned parties. These evaluations are usually done using more than one method. This is so because a rise in the pay grade means that one has more responsibilities bestowed upon them. It is always the desire of all the employees to reach a high pay grade scale in their jobs. This is always a very important issue for all those that are in the employment market, including those in the tourism industry. (Baum, 2006)

3.1. Achieving a good pay grade

As earlier stated, it is always the desire of every employee to attain a high pay grade. There are various ways that can be used to achieve this. The obvious fact is that all the humans have to continue doing their jobs throughout their entire lives. This is because it is the only way in which food can be got and be guaranteed. This has been the reason behind the desire for every employee to increase the income that he or she gets and the thought of how to get the increase in pay grade is everyone’s issue.

3.2. Qualification

Through qualification, an employee not only gets to increase on the knowledge that he or she has, but also gets to improve the pay grade that is usually much desired. With the current competition in the job market, and in a time when everyone is striving to attain the highest possible qualifications needed in the hospitality industry, employees are raising the bar much more higher for those seeking an increase in their pay grade. Companies are finding it more challenging to identify and recruit candidates as a result of nearly equal educational qualifications held by all the candidates. This therefore means that the company will always settle on the individual who is beast qualified above the rest seeking the same job. This qualification goes beyond just academic work. It also encompasses the experience and managerial aspect. Bohlander& Snell(2009) state that throughout the working period, an individual has to prove that he has a lot to offer for the company’s growth and development. One must show that one has a lot to offer in terms of quality service to the company so that the company can move to increase the rate of benefit of working with him or her as an employee. The sole way of attaining a high pay grade is therefore having adequate qualification that surpasses any doubt and limit. One must have qualification that is credible and that rises above the rest of the employees contesting for the job. Higher qualifications do invite high pay grade as it is the only way to measure someone’s worth for the high pay grade. (Barrows& Powers, 2008)

3.3.Impress the company

The employee must strive to impress the company is there is going to be a transition to a high pay grade. Through impressing the company, the employee gets to have an increase in the pay grade, thus, improving the amount of salary that he or she gets. This is yet another great way of improving the pay grade scale. Impressing the company can be done in various ways. Basically, the employee must show the boss of the company that he or she is a hard worker. The love for the company must be portrayed throughout the work of the employee and the must show the ability to work under various situations, be it strenuous or unfavorable. This is the concept that is usually employed in the private sector. Usually, the pay in private sector is higher than that in the government sector. This is basically because in the private sector, the analysis is always done on the worker’s abilities. This is always the base for payment setting. In this case, impressing the boss at the work place can greatly increase the pay grade scale of an employee. The achievement of a better scale of pay grade is what employees yearn to achieve as through that high pay grade, particular life’s goals are achieved.

4.0.Using pay scale

The use of pay scale is not usually applied by all companies to establish the amount of wages that the employees deserve to be given. In some companies, there is always an arbitrary agreement on the amount of wage to be given to an employee before the employee begins working for the company. There is always a determination of subsequent increments by the company. Companies that lack a pay scale that is standard do determine the payment of employees using their performance at work. In some instances, the companies do improve the pay grade in considerations to the general performance of the company in the previous financial years. In the tourism industry, the main pay grade determinant is the experience and qualification. In most cases, the companies dealing in tourism do not always want to gamble with those they employ. This is basically because the prosperity of the tourism industry is based on the type of services produced and the quality of these services. There is stiff competition in the hospitality industry and better still in the tourism industry. In this aspect, the tourism and other hospitality management companies do source for the best suited individuals to work in the companies. In other companies, there is lack of a pay scale that is formal on the rationale of payment to the employees. However, these companies do have a pay scale that is loosely created in order to help them determine the amount of wage to be given to employees on their employment into the companies. The same informal scale is usually used by the companies in the determination of the amount of pay increase to be given to the employees.

In the hospitality management field, pay scales are usually used. For instance, most tourism industries use a pay scale that is usually presented in the format of a table. There are positions in the company that do require that the employee have some special education or has undergone some special training. In such a position, there is always the experienced lined against the pay scale and there is always an indication of the level of education reached or the amount of training that the individual has underwent.

The employees do find the meeting point of the two factors to aid the decision on the amount of payment that the employee needs for a year. In the event that the job does not need any special training or education, there is always an indication of just how much the employee shall be paid based on the specific number of years of experience. Just like in other hospitality fields, the tourism industry has its union organization. The representatives from the union do meet with the employers from the company so as to determine the worthiness of the salary that has been presented on the pay scale. The union and the company usually develop a contract in with the pay scale is part of. The purpose of doing this is always to ensure that the employees at the industry are employed on fair basis, paid the amount that they deserve and that is in equal proportion to their experiences and academic qualifications. Through this manner, there is the elimination of favoritism in as much as salary payment scales are involved and fairness is overtly achieved across the employment field. Despite the fact that pay scale is commonly associated with businesses and companies that are unionized, those companies that d not belong to unions do apply the same as well.

5.0. Purpose of using pay grade

The prominence of the pay scale has since increased in the twenty first century. This was initiated into the federal government’s payment scheduled in what is referred to as General Schedule which is in turn in place for all the federal jobs. There are several employees in the private sector that have also adopted similar payment scale. The use of pay schedules that are structured is preferred by most human resource professionals and institutions as opposed to the pay that is market based. This is in order to ensure that there is equity and to achieve a reduction of the discrimination and potential lawsuits on payments that are market based. Most of the hospitality companies like the tourism industry apply the pay grade largely. This is because the industry basically demands an above reproach ability and experience in handling and managing the industry.

5.1. Basics of pay grade

According to Mathis and Jackson (2010), the pay grade has a basic structure with different levels of pay grade levels vis-à-vis various ranges of steps and placements which are at all the levels. The most basic pay grade structure is usually composed of three main levels namely the high placement, the moderate and the minimum level. These are always placed within all the pay grades. Through this, there is always a provision for a high pay for those employees that have more experience in the job specification. This same basic structure is applied in the tourism industry, which is among the hospitality management sectors. In the tourism companies, there are always various job levels with different specification. These levels do vary in terms of job specifications and academic requirements. There are certain posts that do not always need advanced levels of education while in others, there is always need for extensive experience and higher educational qualification. Such posts do come with responsibility that is larger and it is right that those employees in those positions receive their payments on affair scale in proportion to their experience and educational qualifications. This is where the pay grade structure does become effective and relevant.

 

 

5.2. The general schedule in hospitality industry

The General schedule is mostly used by the federal government. The pay grade system is very prominent and has also been applied in the hospitality industry. Most of the companies dealing with tourism pay the employees at various levels that are based on the schedule just as it are in the federal government. The payment schedule is also known as GC and contains fifteen different steps of payment with a variance in the job level. The tourism industry does have employees taking various levels of job. There are those in the clerical department and those providing unskilled labor. Such employees are not required to have high academic credentials and they are at lower levels. There is a point GS-5, which is a level whereby the employees are expected to be holders of degree certificates in order to get appointed or promoted to those positions. In the tourism industry, higher movement should be attained in equal proportions to the advancement of degrees. For an employee to reach the highest level in the industry there is need to have a legal and research degrees. Those holding managerial positions in the tourism industry are the ones who fall under this category.

5.3. Equity in payment

The pay grade schedules are always supposed to be used so as to achieve equitable and fair compensation in the tourism industry. Having equity internally in the tourism industry means that the companies involved should pay all the employees that are within the organization fairly and equitably. This has further prevents situations whereby there is discrimination in terms of pay. The background aligns the mode and structure of payment in the companies. The tourism companies also engage in comparisons in the pay schedules with other institutions and industries in order to achieve external equity. The competitive nature of the tourism industry has set precedence to the companies in the industry to establish payment schedules that will attract the top performers and talent in the field. This will avoid regular routine turn over in an attempt of remaining competitive in the industry. (Arboretum, 1989)

5.4. How a pay grade works in the tourism industry

A pay grade is often used in defining the amount that each and every employee is to be given in a company. In the tourism industry the pay grade is basically determined by the length of time that an employee has stayed in a particular post doing his job and also on the level of responsibility that the individual is subjected to at work. In the tourism industry, there is always a relationship between the horizontal axis and the length of time in which the employee has offered his services to the industry. The vertical dimension I the pay grade is always applied while dealing with the pay in terms of the academic qualification and the job requirements. Through the use of pay grade, tourism companies are able to determine the level of compensation that is needed and that is appropriate in every step that is undertaken in the process of employment. In the public sector, pay grades do take place in salary negotiations where contribution and fairness is always sought. The application of pay grades is also done in positions that are representative of the unions. (WorldatWork, 2007)

In the hospitality sector, new employees usually start in the first step of the pay grade range under their specific job. In the event that the employee stays on the same job title, the pay grade range starts to rise. This is usually after a span of every five years of working in the same job’s pay grade. Despite the fact that this compensation system that involves pay grades is always applicable in the employment in the public sector, military, universities and the federal government, the tourism industry also used the same model.

The pay steps of the pay grades differ in various organizations. There may be a difference of up to ten to fifteen steps that an employee needs to undergo before reaching the top position that warranty the payment of a high pay grade. Getting a pay rise once an employee attains the top most pay grade is dependent on the cost of living at the particular time, the increases or the allowances that the employee is entitled to. In the tourism industry, an employee always has an opportunity to be promoted or to be moved to another job that comes with different or more responsibilities. The employee therefore starts to move up the pay steps and to move into the next level of pay grade. In each step of the pay grade, there are always some over laps in the amount of salaries paid to the employees. For instance, a starter employee at the first grade of a job in the tourism industry that has 1 to 10 steps may be earning from 16000 dollars to 22000 dollars. When the employee moves to the second pay grade, the rates assigned to this grade may be from a minimum of 24000 dollars to a maximum of 23000 dollars. (Damp, 2008)

The tourism industry is composed of both government and private sectors. The pay grades are also used in the private sector in the tourism industry. The growth of a company is always characterized by the need for improving the pay scales so as to be fair and ensure that there is a similarity and uniformity in the payment across all the various positions of different job units and functions in the company. The retaining and attracting of good employees to various work units is mooted by similar responsibilities and job requirements. The tourism sector’s pay grades are often reached at through salary negotiations and the application of the discretion of the managers.

 

 

5.4.a.       Setting pay scales

The main use of pay scales is always to help the employers to determine the salaries and wages of the employees. The pay scales are usually listed in table form in which experience, education and other factors are always included. The pay scales help to maintain the consistency in pay and come handy in eliminating discrimination and favoritism. The compensation and human resource professionals in the tourism industries need to understand how to set the pay scales. In order to understand well, the following must be taken into consideration: (Sims, 2002)

5.4.b.       Consider the pay grade

There should be a comparison between the different ranks in the job. This is done through pay grades. The employers are supposed to use the nine factors of the BLR for analysis. The job then is evaluated and ranked on the basis of the duties assigned to the employee, experience, educational level and the skills. After considering these factors, it is then easy to assign the pay grade correctly in correlation to the salary range of the position that an employee holds.

5.4.c.       Establish the rate range.

The rate range is the spread out of the salaries. It is the examination of the various points comprising of the minimum point, the midpoint and the maximum point. The rate range is used in the establishment of how the payments are done.

5.4.d.      Job pricing

This is a process of the establishment of the three job ranges in relation to the grade of the labor. The study of salary and range survey helps the employers to make a comparison of wages that they offer their employees in their organization to those that are offered in the market. This is important as there is a lot of competition in the tourism industry. The knowledge of the wage scales can therefore help the employers to stay competitive in the labor market while ensuring that those who are of higher worth in the organization are paid more than those who are of lower worth. This thus strikes a balance between the external equity and the internal equity as well. (Armstrong & Baron, 1995)

5.4.e.       Mid point

The midpoint refers to a rate that is standard and tat all the employees who are performing and are qualified for the job remain at payment level which is acceptable and fair. Setting a rate range for any job requires the knowledge of the minimum point, midpoint and the maximum point.

5.5.Summary

Pay grade forms an integral aspect of the hospitality industry in general. In order to achieve equality and fairness in terms of payment, and to keep hold of the employees that one has, the employees need to apply the pay scales so as to satisfy their employees. This ranges from the laborers and unskilled employees to the highly qualified employees in the organizations. There can never be a better way of equally dealing with payments for employees apart from the use of a well structured pay grade.

5.6.Conclusion

The hospitality industry and the tourism industry specifically need a comprehensive pay grade. This is important if the companies involved in the sector are to maintain and keep up with the competition in the labor market. There is good labor that is always hard to come by. Once a company gets that good labor, it is often upon them to see that the labor is maintained. This can only be done through a fair and acceptable payment scheme. This can only be achieved through the application and use of the pay grade. (Walker& Miller, 2009).

  

  

5.7.References

Arboretum, D. (1989). How to Develop a Job Grade/pay Scale System. New York.

Armstrong, M.,  Baron, A. (1995). The Job Evaluation Handbook. London: CIPD Publishing.

Barrows, C,. Powers, T. (2008). Introduction to Management in the Hospitality Industry, Study Guide. New Jersey: John Wiley & Sons.

Baum, T. (2006). Human Resource Management for the Tourism, Hospitality And Leisure Industries: An International Perspective. NY: Cengage Learning EMEA.

Bohlander, G., Snell, S. (2009). Managing Human Resources. Mason: Cengage Learning.

Bohlander, G., Snell, S. (2009). Managing Human Resources. Mason: Cengage Learning.

Damp, D. (2008). The Book of U.S. Government Jobs - 10th ed. Bookhaven Press LLC.

Mathis, R. Jackson, J. (2010). Human Resource Management. New York: Cengage Learning.

Sims, R. (2002). Organizational Success Through Effective Human Resources Management. Westport: Greenwood Publishing Group.

Walker, J., Miller, J. (2009). Supervision in the Hospitality Industry: Leading Human Resources.New Jersey: John Wiley and Sons.

WorldatWork (2007). The WorldatWork Handbook of Compensation, Benefits & Total Rewards: A Comprehensive Guide for HR Professionals. New Jersey: John Wiley & Sons. 

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