Organizational culture is the norms, values, beliefs and behaviors that contribute to the unique social and psychological environment of an organization. The aim of this essay Is to evaluate whether or not a strong organizational culture must have customer service at its heart.
One point which suggest a strong organizational culture perhaps must have customer service at its heart because, customer service can help a business differentiate (porter) from competitors in a very intense (porter) climate. As with Southwest, who are known for their culture of ‘goofiness’ and putting heir employee and customers first, allows their staff to feel empowered so are able to create a customer service experience that Is unique.
For example, some staff rap, others tell Jokes In attempt to entertain customers, this helps create a unique culture which helps Southwest achieve high levels of customer service, which is a critical success factor in the airline industry as Southwest deliver a service, so it is vital for Southwest to deliver good customer service as it could lead to repeat sales which would positively result in their performance, but Southwest’s culture allows them to liver outstanding customer service.
As the culture of Southwest has Influenced staff to effectively execute stage 4 of the marketing plan, Implementing the strategy, as staff are motivated to achieve the target of being the lowest cost carrier in the market, which has resulted in Southwest being profitable since they started trading in 1971, never made a loss.
Which highlights that a strong organizational culture must have customer service at its heart, as Southwest are the only airline making a profit, yet they operate in the same 1* market as their competitors but why they are refutable Is mainly due to their culture which Is unique and cannot be copied, so allows Southwest to differentiate from competitors. As a business can duplicate the strategy of another business, but they key issue that cannot be copied is the culture, as no two businesses have the same norms, beliefs, values and behaviors (Johnson and schools).
Southwest not only have customer service at its heart, but have customer service which runs throughout the company, each staff shares the same DNA of culture which allows Southwest to deliver a unique customer service. Capos ND John Lewis adopt similar approaches to Southwest. Capos are stakeholder driven where they look to take care of their staff first, so that the way they are treated spills over onto the customers. John Lewis adopt a share scheme where employees are given shares based on customer service levels, which helps to ensure staff are motivated and feel part of the business.
Both approaches by Capos and John Lewis highlight that a strong organizational culture must have customer service at its heart, as they look to put staff flirts In attempt that the treatment staff receive Is reflected by customer service, which has resulted In Capos being profitable since 2006 and John Lewis achieving a 15. 8% increase in profits. Royal Mail will perhaps have to adopt a similar approach to Southwest of being stakeholder driven, as before Royal Mail operated in a monopoly market, so did not need to place emphasis on customer service as they were the only player in a very favorable 5* market.
However due to new entrants In the market (porter) such as Faded and ups, the market became oligopolies, as competition Intensified and now Royal Mall perhaps must have wherefore the way to be successful in this market is to offer outstanding customer service which Royal Mail do not currently offer. So there is a possibility of Royal Mail losing their market share, as the bargaining power for customers is high, so if customers are not satisfied with the customer service of Royal Mail, then they will simply move to competitors, which could further damage their position in the market.
Royal Mail also face threat of substitutes (porter) with mail declining and email rising, therefore this forces Royal Mail to have customer service at its heart, as no longer can hey maintain this laid back approach, but since becoming privatized have to stand on their own two legs. However, a strong organizational culture does not need to have customer service at its heart, but depending on the industry, an organization does not need to have customer service at its heart.
As with the gas industry where the market is so attractive, can be graded as a 4* industry (porter) as gas is a necessity product so demand for gas will always be high, which allows gas companies not to place emphasis on customer service in order to be successful with their treated, since their product will always be in demand. Whereas Southwest operate in the 1* airline market, with the bargaining power of customers being high, since they are many competitors making the airline industry a very intense market (porter).
Therefore, unlike gas companies, Southwest cannot boast about offering a necessity product, since they are other alternatives to traveling by air, so Southwest must have customer service at its heart since they the airline market is service orientated but the gas market is product orientated. Barclay have a strong organizational culture of reed and cheat, where the directors were receiving bonuses which were, in some cases, three times more than dividend payments, highlighted with Body Diamond, who left with a bonus of El mm.
This created a culture of dishonesty between the shareholder and management team, as shareholders were not receiving a fair return for their investment, but were perhaps being cheated by the senior management team of their hyena culture, only acting with the view of bonus, not in the interest of shareholders. In regards to stakeholders, the miss-selling of PIP has destroyed the rust customers have, and does not portray their formal culture (iceberg) of trust and client focus’, but only reinforces their informal culture of dishonesty and cheating.
As Barclay were selling PIP to people who did not want, need, or were not even aware they were paying it, therefore, Barclay created within their workforce this hyena culture of every man for himself, every worker competing which each other in order to achieve greater sales so that workers could receive higher bonuses for the more they sell, without considering the customer. Not taking into account that selling this PIP could result in that customer going into debt, but simply with a view to increase their bonus.
Therefore, Barclay had customer service at its heart for their formal culture, but with the informal culture of the scandals, Barclay never had customer service at its heart, by cheating both their customers the shareholder and stakeholder, but the informal culture and scandals led to mega profits. So in this type of industry, where customers need the banks, but the banks do not need customers, Barclay do not need to have customer service at its heart. As customers are not a radical success factor to Barclay achieving profits, so do not need to be stakeholder driven.
In comparison to ORBS, who were bailed out by the state and now 84% of ORBS since they are owned by the state, but Barclay are privatized and profit is their motive, so do not need to have customer service at its heart, but ORBS should be stakeholder driven. A strong organizational culture does not need customer service at its heart; a weak organizational culture like Jaguar Land Rover does not have customer service at its heart yet reported an 80% rise in sales following a move to China.
Therefore, an organization does not need to have customer service at its heart, but success can depend on the economy. Like China, who achieved a GAP of 7. 9%, therefore Jaguar took advantage of this rapid economic growth, where consumers have greater disposable income, so demand for luxury vehicles has increased allowing Jaguar to achieve higher profits without focusing on customer service, but simply by expanding to China. Whether an organization must have customer service at its heart also depends on they industry