Qualitative research cannot usually be expressed in numerical terms. Typically, qualitative research results in expression of opinion, and is usually therefore verbal.
Qualitative techniques include
Group Discussion or focus group
Analysis of written documents
Quantitative:- Quantitative analysis is a business or financial analysis that works on the mathematical statically models research. It is totally depended on the numerics. In simple terms it can be said that quantitative analysis works on the basis of information existing in figures.
According to investopedia quantitative is simply a way of measuring things.
A company who choose a cost leadership strategy offer relatively standardised product and service with all features that are acceptable to customer. Either we can say in other word with minimum level of differentiation at the lowest competitive price. It means that companies should offer well standardised product and service to organisation customers. A company when implement cost leadership strategy then customer receive value of that.
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Company who wish to be successful by using following cost-leadership must take care of lowering their costs and creating values for customers a company can include cost-reduction strategy.
Minimising the costs of sales , product research and development, service
Building efficient-scale facilities
Establishing tight control of production and over head costs
After implementing and successful a cost leadership strategy that company must consider its value chain of primary and secondary activities and effectively link with those activities.
Even though the five competitive forces are strong a company will still have greater return on investment on successful implementation of cost leadership.
VALUE CREATING ACTIVITIES COMMON TO A COST LEADERSHIP BUSINESS LEVEL STRATEGY
Cost effective Mis system
Simplified planning practice to reduce planning cost
Relatively few management layers to reduce ever head
Consistence policies to reduce turn over cost
Effective training programs to improve worker efficiency and effectiveness
Easy to use manufacturing technologies
Investment in technology in order to reduce costs associated with manufacture processes
Systems and procedure to find the lowest cost products to purchase raw materials
Frequent evaluation process to monitor suppliers performances
Highly efficient system to link suppliers Product with firms production process
Located in close proximity with suppliers
Efficient plant scale to minimise manufacturing costs
Timing of assets purchases
Policy choice plant technology
Delivery schedule that reduces costs
Selection low cost transport carriers
Efficient order sizes
With sister unit
As noted in figure above, that company`s focus more in primary and seco ndary value-creating activities.
Lay out of processes and procedures
Taking care of costs to suet customers
Achieving target efficiency and effectiveness
Taking care costs of activities provided by other that mingle with the company`s inbound and out bound.
CHOICES THAT INFLUENCE COSTS
Economies of scale
Order processing and distribution
Value chain linkages
Advertisement and sale
Logistics and Operations
Advantages and disadvantages of Cost ââ‚¬"Leadership strategy
Inspite of changing lower rate organisation makes gain same level of profit.
Cost leadership profit helps on winning the price war.
Company using Cost-Leadership Strategy protected from rivalry.
Companies are less effected by strong buyers and suppliers.
Due to technologies advancement the low cost advantage become out dated.
Imitation ability of Competitors.
The change in customer taste is ignored.
Investor in People
The Investor in People Standard is a mechanism that can provide a frame work to support organisations in working out for them-selves exactly what is needed, how to go about making it happen and how to evaluate the effectiveness of what has been done.
Royal Garden Hotel use some Investors in People standard
Principle One: Commitment
An I.I.P is 100% bound to improve its employee to achieve its target, aim and objectives with in time period.
Principle Two: Planning
Always on Time
Marked to Standard
An I.I.P is clear about where it wants to be with next six month or next year or we can say it can be short term long term and what its employees need to do to achieve aim and objective.
Principle Three: Action
An I.I.P develops its employee effectively in order to improve performance. So that organisation achieve easily to the target.
Principle Four: Appraise
An Investor in people understands the consequences of its investment in people on its performance.
Main Characteristic of an Investor in People
A firm can plan ahead by using IIP
A firm has clear about what it is trying to achieve and continually monitor progress towards its goals;
A firm know very well that, what skill and knowledge they need to achieve these goals and targets, and deliver the plan.
Firm know what skill and knowledge his employees already have.
Bridge the gaps between the skills and knowledge already held and by planning and taking action.
Benefit to Royal Garden Hotel after implementing IIP
According to Human Resource Manager of Royal Garden Hotel
The passport to Excellence programme was completed over a two-year period. The programme made a significant contribution to meeting the original aims of improving customer satisfaction and reducing staff turnover.
Customer satisfaction is measured in a number of ways: mystery guest report, customer monitoring and the level of complaints. Clearly a good measure of improved customer satisfaction concerns the level of repeat business and this increased significantly.
Qualitative:- Qualitative feedback from a major client also confirmed the improvement in customer service: this client commented that in 2007it only used the Royal Garden Hotel as a last hotel-now the Royal Garden Hotel is the client first choice hotel in Central London .
ILMC(International live Music company they come each year for two week and they book whole hotel)
MERCK (Medicine company)
Quantitive feedback from Human Resource Manager that staff turnover has decrease after using this strategy it came down till 30% according to 2008.
Skilled employee has increased till 90% to help to achieved aim and target of organisation.
Recent Development of Royal Garden Hotel
The Hotel has undergone number of changes since it was recognised in 1965. The hotel also went through a some programme for introduction of 5 star hotels.
NVQ-linked job description
Improved succession planning
New style induction programme.
The hotel came forward for an investor in people review in April 2000 when it was re-recognised as an IIP.
The 10 Principles of an Investor in Training.
Royal garden hotel choose to follow implement focus strategy by seeking to use their core competencies to deliver serving the needs of a specific group of clients in the hospitality industry. In simple words Royal garden hotel focus on specific and smaller division or niches of client rather than concentrating on the whole market.
Focused business level strategy contains similar approaches as the Broad Market Strategy. Even though opportunity may exist due to following reasons.
Large company`s over look Niche group where firms like Royal garden hotel get chance to focus on such Niche market.
Company`s might lack in its resources to compete with the industry wide
Helps to serve a narrow division of market effectively and efficiently then industry wide competitor.
Due to this strategy Royal garden hotel is able to direct its resources to specific value chain activities to develop its competitive advantage.
It reduces in research and development by imitating the innovator.
Focus differentiator may prosper by making a selection of smaller group which is avoided or ignore by the larger players in the game of marketing
Royal Garden hotel Choose to work with focus strategy because they are able to deliver excellent service to the niche group of the market.
Due to the
Advantage and Disadvantage of Focus strategy
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Investigation of a gap in the market such as consumer loyalty
Anticipate consumer need and respond to their wants by being innovative.
A Focused organisation is all right against the threat of generate five forces models.
Admit to attack from a broad differentiator.
Niche market would no more exist due to changes in technology in customer choice and taste.
Advantage and Disadvantage of Differentiation Strategy
It gives premium price
The company are protected from rivalryââ‚¬â„¢s E.g. Customer Loyalty, Brand Loyalty.
The companies are less affected by strong buyers suppliers.
Substitute of product can be a threat.
Difficult to retain the product in customerââ‚¬â„¢s eye for long characteristic in feature.