netrashetty
Netra Shetty
(NYSE: COP) is an American multinational energy corporation with its headquarters located in the Energy Corridor district of Houston, Texas in the United States. It is also one of the Fortune 500 companies.[2] ConocoPhillips is the fifth largest private sector energy corporation in the world and is one of the six "supermajor" vertically integrated oil companies. It sells fuel under the Conoco, Phillips 66 and Union 76 brands in North America, and Jet in Europe. ConocoPhillips was created through the merger of Conoco Inc. and the Phillips Petroleum Company on August 30, 2002.[3]
mprove overall efficiency. Combining two units so that duplicate equipment or research and development are eliminated would improve overall efficiency. Quantity discounts through combined ordering would be another possible way to achieve operating synergy. Yet another way to improve efficiency is to diversify into an area that can use by-products from existing operations. For example, breweries have been able to convert grain, a by-product of the fermentation process, into feed for livestock.
Management synergy can be achieved when management experience and expertise is applied to different situations. Perhaps a manager's experience in working with unions in one company could be applied to labor management problems in another company. Caution must be exercised, however, in assuming that management experience is universally transferable. Situations that appear similar may require significantly different management strategies. Personality clashes and other situational differences may make management synergy difficult to achieve. Although managerial skills and experience can be transferred, individual managers may not be able to make the transfer effectively.
CONGLOMERATE DIVERSIFICATION
Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
One of the most common reasons for pursuing a conglomerate growth strategy is that opportunities in a firm's current line of business are limited. Finding an attractive investment opportunity requires the firm to consider alternatives in other types of business. Philip Morris's acquisition of Miller Brewing was a conglomerate move. Products, markets, and production technologies of the brewery were quite different from those required to produce cigarettes.
Firms may also pursue a conglomerate diversification strategy as a means of increasing the firm's growth rate. As discussed earlier, growth in sales may make the company more attractive to investors. Growth may also increase the power and prestige of the firm's executives. Conglomerate growth may be effective if the new area has growth opportunities greater than those available in the existing line of business.
Probably the biggest disadvantage of a conglomerate diversification strategy is the increase in administrative problems associated with operating unrelated businesses. Managers from different divisions may have different backgrounds and may be unable to work together effectively. Competition between strategic business units for resources may entail shifting resources away from one division to another. Such a move may create rivalry and administrative problems between the units.
Caution must also be exercised in entering businesses with seemingly promising opportunities, especially if the management team lacks experience or skill in the new line of business. Without some knowledge of the new industry, a firm may be unable to accurately evaluate the industry's potential. Even if the new business is initially successful, problems will eventually occur. Executives from the conglomerate will have to become involved in the operations of the new enterprise at some point. Without adequate experience or skills (Management Synergy) the new business may become a poor performer.
Without some form of strategic fit, the combined performance of the individual units will probably not exceed the performance of the units operating independently. In fact, combined performance may deteriorate because of controls placed on the individual units by the parent conglomerate. Decision-making may become slower due to longer review periods and complicated reporting systems.
DIVERSIFICATION: GROW OR BUY?
Diversification efforts may be either internal or external. Internal diversification occurs when a firm enters a different, but usually related, line of business by developing the new line of business itself. Internal diversification frequently involves expanding a firm's product or market base. External diversification may achieve the same result; however, the company enters a new area of business by purchasing another company or business unit. Mergers and acquisitions are common forms of external diversification.
INTERNAL DIVERSIFICATION.
One form of internal diversification is to market existing products in new markets. A firm may elect to broaden its geographic base to include new customers, either within its home country or in international markets. A business could also pursue an internal diversification strategy by finding new users for its current product. For example, Arm & Hammer marketed its baking soda as a refrigerator deodorizer. Finally, firms may attempt to change markets by increasing or decreasing the price of products to make them appeal to consumers of different income levels.
Stobo Castle is considered as one of the tourist destinations in Scotland. The health spa offers a historical site and at the same time a place for tourists to pamper themselves and to relax. A marketing audit is a comprehensive, systematic independent and periodic examination of a company’s marketing environment and activities. The intent is to determine problem areas and opportunities and to recommend an action plan to improve the company’s marketing performance. This is s thorough and objective evaluation of an organization’s marketing philosophy, goals, policies, tactics, practices and results. Such a comprehensive procedure can provide a valuable perspective on the performance of the company’s marketing plans. A periodic review of marketing plans is invaluable both in identifying the tasks that the organization does well and highlighting its failures.
The aim of conducting a marketing audit is to identify the weaknesses in the marketing strategy of Stobo Castle. Although there are some positive changes in the business environment and there is a significant increase in demand for spa services, the marketing strategy of Stobo Castle must be re-planned and re-developed in order to attract more visitors from B2B and B2C markets. A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s marketing environment, objectives, strategies, and activities to identify problem areas and opportunities and recommend a plan of action for improving the marketing performance of the company.
Marketing Audit: Internal Marketing Environment
In line with the expansion and development program of Stobo Castle, the spa needs to upgrade its Five M’s (Men, Money, Machinery, Minutes and Materials). In terms of Men (Labor) the spa needs to employ more staff. The management has expressed its desire to recruit more beauticians. In terms of money, the spa has allocated budget for the business makeover strategy. The facilities at Stobo Castle are of high quality. The product portfolio of Stobo Castle is profitable. Last year, the spa had a total of £5m. However, in terms of price, the spa needs to offer more affordable packages in order to attract a wider range of consumers. In terms of marketing communication, the management aims at informing the consumers that the packages at Stobo Castle will become affordable. The spa needs to communicate to the consumers and to let them know that luxury spa treatment does not cost the earth. The spa needs to better reach the consumers and to make them aware of the different packages that will suite their budgets. In terms of people, the spa employs trained staff. The opening of 12 bedrooms necessitates the recruitment of more staff that will serve the guests.
Marketing Audit: External Marketing Environment
The competition is becoming more intense. New entrants are increasing in number and the existing competitors are becoming more aggressive. There are also some indirect competitors that are now offering the same spa services. All of these add to the intensity of competition. The current niche market of Stobo Castle are “big spenders” meaning wealthy people that spends large sum of money for treatments and therapies. The spa needs to attract more price conscious guests. The primary communication tool that the spa uses is its website and brochure.
Marketing Audit: Current Marketing Plan
Marketing Strategies
The current marketing strategies of Stobo Castle is geared towards the wealthy market. Stobo Castle is positioned as an exclusive wellness spa with state of the art facilities and services that are fit for royalties. Also the current marketing strategies aim to position Stobo Castle as a premiere destination for guests that are health conscious and at the same time willing to spend for relaxation and pampering.
n recent years the evolution of marketing research has been dramatic with marketers getting access to a wide variety of tools and techniques to improve their hunt for information. For instance, in its role as the foundation of marketing, marketing research is arguably marketing’s most important task. Today marketers not only view research as a key ingredient in making marketing decisions they also consider information to be a critical factor in gaining advantage over competitors.
Because organizations recognize the power information has in helping create and maintain products that offer value, there is an insatiable appetite to gain even more insight into customers and markets. Marketers in nearly all industries are expected to direct more resources to gathering and analyzing information especially in highly competitive markets. Many of the trends discussed below are directly related to marketers’ quest to acquire large amounts of customer, competitive and market information.
mprove overall efficiency. Combining two units so that duplicate equipment or research and development are eliminated would improve overall efficiency. Quantity discounts through combined ordering would be another possible way to achieve operating synergy. Yet another way to improve efficiency is to diversify into an area that can use by-products from existing operations. For example, breweries have been able to convert grain, a by-product of the fermentation process, into feed for livestock.
Management synergy can be achieved when management experience and expertise is applied to different situations. Perhaps a manager's experience in working with unions in one company could be applied to labor management problems in another company. Caution must be exercised, however, in assuming that management experience is universally transferable. Situations that appear similar may require significantly different management strategies. Personality clashes and other situational differences may make management synergy difficult to achieve. Although managerial skills and experience can be transferred, individual managers may not be able to make the transfer effectively.
CONGLOMERATE DIVERSIFICATION
Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
One of the most common reasons for pursuing a conglomerate growth strategy is that opportunities in a firm's current line of business are limited. Finding an attractive investment opportunity requires the firm to consider alternatives in other types of business. Philip Morris's acquisition of Miller Brewing was a conglomerate move. Products, markets, and production technologies of the brewery were quite different from those required to produce cigarettes.
Firms may also pursue a conglomerate diversification strategy as a means of increasing the firm's growth rate. As discussed earlier, growth in sales may make the company more attractive to investors. Growth may also increase the power and prestige of the firm's executives. Conglomerate growth may be effective if the new area has growth opportunities greater than those available in the existing line of business.
Probably the biggest disadvantage of a conglomerate diversification strategy is the increase in administrative problems associated with operating unrelated businesses. Managers from different divisions may have different backgrounds and may be unable to work together effectively. Competition between strategic business units for resources may entail shifting resources away from one division to another. Such a move may create rivalry and administrative problems between the units.
Caution must also be exercised in entering businesses with seemingly promising opportunities, especially if the management team lacks experience or skill in the new line of business. Without some knowledge of the new industry, a firm may be unable to accurately evaluate the industry's potential. Even if the new business is initially successful, problems will eventually occur. Executives from the conglomerate will have to become involved in the operations of the new enterprise at some point. Without adequate experience or skills (Management Synergy) the new business may become a poor performer.
Without some form of strategic fit, the combined performance of the individual units will probably not exceed the performance of the units operating independently. In fact, combined performance may deteriorate because of controls placed on the individual units by the parent conglomerate. Decision-making may become slower due to longer review periods and complicated reporting systems.
DIVERSIFICATION: GROW OR BUY?
Diversification efforts may be either internal or external. Internal diversification occurs when a firm enters a different, but usually related, line of business by developing the new line of business itself. Internal diversification frequently involves expanding a firm's product or market base. External diversification may achieve the same result; however, the company enters a new area of business by purchasing another company or business unit. Mergers and acquisitions are common forms of external diversification.
INTERNAL DIVERSIFICATION.
One form of internal diversification is to market existing products in new markets. A firm may elect to broaden its geographic base to include new customers, either within its home country or in international markets. A business could also pursue an internal diversification strategy by finding new users for its current product. For example, Arm & Hammer marketed its baking soda as a refrigerator deodorizer. Finally, firms may attempt to change markets by increasing or decreasing the price of products to make them appeal to consumers of different income levels.
Stobo Castle is considered as one of the tourist destinations in Scotland. The health spa offers a historical site and at the same time a place for tourists to pamper themselves and to relax. A marketing audit is a comprehensive, systematic independent and periodic examination of a company’s marketing environment and activities. The intent is to determine problem areas and opportunities and to recommend an action plan to improve the company’s marketing performance. This is s thorough and objective evaluation of an organization’s marketing philosophy, goals, policies, tactics, practices and results. Such a comprehensive procedure can provide a valuable perspective on the performance of the company’s marketing plans. A periodic review of marketing plans is invaluable both in identifying the tasks that the organization does well and highlighting its failures.
The aim of conducting a marketing audit is to identify the weaknesses in the marketing strategy of Stobo Castle. Although there are some positive changes in the business environment and there is a significant increase in demand for spa services, the marketing strategy of Stobo Castle must be re-planned and re-developed in order to attract more visitors from B2B and B2C markets. A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company’s marketing environment, objectives, strategies, and activities to identify problem areas and opportunities and recommend a plan of action for improving the marketing performance of the company.
Marketing Audit: Internal Marketing Environment
In line with the expansion and development program of Stobo Castle, the spa needs to upgrade its Five M’s (Men, Money, Machinery, Minutes and Materials). In terms of Men (Labor) the spa needs to employ more staff. The management has expressed its desire to recruit more beauticians. In terms of money, the spa has allocated budget for the business makeover strategy. The facilities at Stobo Castle are of high quality. The product portfolio of Stobo Castle is profitable. Last year, the spa had a total of £5m. However, in terms of price, the spa needs to offer more affordable packages in order to attract a wider range of consumers. In terms of marketing communication, the management aims at informing the consumers that the packages at Stobo Castle will become affordable. The spa needs to communicate to the consumers and to let them know that luxury spa treatment does not cost the earth. The spa needs to better reach the consumers and to make them aware of the different packages that will suite their budgets. In terms of people, the spa employs trained staff. The opening of 12 bedrooms necessitates the recruitment of more staff that will serve the guests.
Marketing Audit: External Marketing Environment
The competition is becoming more intense. New entrants are increasing in number and the existing competitors are becoming more aggressive. There are also some indirect competitors that are now offering the same spa services. All of these add to the intensity of competition. The current niche market of Stobo Castle are “big spenders” meaning wealthy people that spends large sum of money for treatments and therapies. The spa needs to attract more price conscious guests. The primary communication tool that the spa uses is its website and brochure.
Marketing Audit: Current Marketing Plan
Marketing Strategies
The current marketing strategies of Stobo Castle is geared towards the wealthy market. Stobo Castle is positioned as an exclusive wellness spa with state of the art facilities and services that are fit for royalties. Also the current marketing strategies aim to position Stobo Castle as a premiere destination for guests that are health conscious and at the same time willing to spend for relaxation and pampering.
n recent years the evolution of marketing research has been dramatic with marketers getting access to a wide variety of tools and techniques to improve their hunt for information. For instance, in its role as the foundation of marketing, marketing research is arguably marketing’s most important task. Today marketers not only view research as a key ingredient in making marketing decisions they also consider information to be a critical factor in gaining advantage over competitors.
Because organizations recognize the power information has in helping create and maintain products that offer value, there is an insatiable appetite to gain even more insight into customers and markets. Marketers in nearly all industries are expected to direct more resources to gathering and analyzing information especially in highly competitive markets. Many of the trends discussed below are directly related to marketers’ quest to acquire large amounts of customer, competitive and market information.
Last edited: