Three Typical Customers Needs and Service Expectations - Assignment Example

Portfolio Management control system Question one A. Three typical customers’ needs and service expectations Explicit Expectation The Customer expectation are the mental target for the service/predict standards. This will entail the appraisal of accessibility, standardization, reliability, timelines, and correctness and user friendly interface. Dynamic Performance Expectations Dynamic performance expectation concerns the manner to which the product or service is anticipated to change over time. Dynamic anticipation might concern the change in support, product or service required to meet future business or make use of the environment. This might aid in producing static performance anticipation as new customers or system needs develops and become more static (Dagwell, 2011). Technological Expectations The technological expectations centers on the changing situation of the product category. The product constantly change which leads to high expectation of the new features. The company puts more efforts to restrict the capacity of the consumer to switch to a new product, have marketed rates plans with high cancellations, penalty for switching the companies. Built with open minded upgrade plans for the product they provide. The presence of low profile product will change the technology anticipation and also the static and dynamic performance anticipation of the product. These highly engaging products are not merely features based but raise anticipation that improves insight of status, ego and self-image and might even suggest feeling of separations and doubt when the product is not accessible (Drischel, 2003). B. some specific actions the company can take to retain its goal of "focus on the customer The best option of how the company can retain its customer has it grows is to control the experience of the customers. The communication cannot stop when the sales is made to the customer. It is important that organization centers on dispatching the communication team throughout the lifecycle of the customers since, in the current business world, it is hard to place reliance on the service or repair in order to hold on to the customers. The technology permits adoption of customer lifecycle management methodology in a very efficient manner. Individual customers develop URL that is effective for automation of this kind of communication. With the use of business polices, you may develop appropriate association by tailoring the content foe every customer. Organization that learns how to mix the power of the online globe and their client’s data to own the clients association depicts a very high customer retention rate s the business expands (Fabozzi, 2014). Furthermore, there is needed to show loyalty to their workers as the business expands. Companies that treat their workers with respect provide them with appropriate tools for doing their work and constantly demonstrate that they are recognized which in turn will lead to improved and sufficient workforce that will go miles for the customers they provide services to. Not contented, frustrated employees depict small justification to put in the effort. Where workers are not appreciated in the, work tend to drug and customers are depicted to be just part of the daily crush. Question two Participative budgeting is the kind of budget process where individual that are impacted by the budget are aggressively engaged in the budget process. This is boot upward methodology to budget creation that are more attainable unlike the top down budget process which is imposed by the top level executives of the company, with least workers involvement. Participative budget process is ideal for moral and leads to improved efforts by workers to attain what they anticipated in the budget; nevertheless, a wholly participative budget does not assume a high level plans in the budget creations and the manner to which their individual divisions fit into the directions (Drischel, 2003). When participative budget process is employed in the company, the primary budget starts from bottom to top, being appraised and changed by middle level managers in the process of budget creations. Once integrated into one master budget, it might turn to be evident that the submitted budgeted will not work in harmony, in which case, they will be submitted back to the lower level managers for some iteration, normally with guideline taking note of what the top level management what the budget to look like. Since there is large number of workers engaged in the participatory budget process, budgeting depict the tendency of taking much longer time in creation of the budget unlike the case with the top down budget that might be developed by much small number of personnel. The labor cost linked with creation like the budget is as well high. Benefits of participative budgeting to Duena Group Participative budget engage the entire department within an organization in providing valuable inputs whilst setting the budget procedures. The budgeting process assumes bottom top method and entire managers are actively involved in budget process. Many managers in participative budget process are encouraged to assume the budget control system and normally stick to the budget measures. The budget process is therefore very precise and of high standard in terms of forecast. This is the significant feature of participative budget. The anticipated figures for every function in the company are very correct since they are prepared with the support of and recommendation of functional heads. High motivations amongst the workers since they feel that are involved in the budget process and in making management verdicts. They ensure that the real cost is within the budget forecast since they might never like top prove incorrect to their own judgment (Kinney, 2012). There is enhanced standard of the forecast to employ as the basis for the budget. The managers who undertake the daily budget analysis and forecast have a better notion of what is attainable, what will probable happen in the next financial period, the local trade situation and many more. Also, enhanced encouragement will be experienced since; budget holders are susceptible to require work to attain a budget that they have been engaged in creating, instead of the one that has been inflicted on them from the top managers. The participative budget will therefore lead to transparent outcome since, being the doer of the budget; the applicant might manage the expense more effective unlike any other manager (Fabozzi, 2014). Question three The following are some of the management problem in decentralization of the business. The decentralization might lead to poor coordination at the level of an enterprise since the verdict making power is not centralized. There is inconsistence such as lack of standardization at the organization level. The standardization policy or plans might not be followed for the similar kind of work in diverse departments. The decentralization is expensive since, it increases the management cost on account of needs of trained workers to assume control at the lower level management. The service of the expensive personnel employed in the company might not be used fully, specifically in small business. The introduction of decentralization might be hard or impractical in a small concern in which the production line is not wide for the development of independent units for management reasons. Also, the decentralization leads to emergence of some problems specifically when the business if experiencing many uncertainties. The verdict making procedure is hold up and even the right Verdicts according to changing circumstance might not be likely. In this regards, the problem of poor coordination and management. As every divisional and department managers are autonomous in their job, verdict making and planning their job plan close direction and control will be unlikely in the organization hence making coordination hard since every division is working independently (Jakki J. Mohr, 2009). Furthermore, decentralization is not ideal for specialized services such s accounting, individual and technical since, they should be managed at the centre. At the time of emergencies, faster decision making is key hence decentralization hardly provide faster verdict making process. In this regards, at the time of emergency decentralization might not be appropriate. There is also lack of managerial capability since, to practice control, managers should be capable in skilful but in many companies, there is deficiency of managerial capability to practice control thus decentralization might be inefficient. The managerial needs and doubts are the problem to centralization since, managers will not be willing to delegate some authority or they may not be willing to assume responsibilities since they are in doubt that they will not be in a position to practice the responsibility which makes decentralization ineffective. A likely problem with decentralization structure is that one should abandon an attitude of control and put the faith in others to progress the business’s vision and mission. For the business shareholders who strive to ensure that business grows and succeeds will be hard for them to let it go and hence there is risk that once trusted linked might be mishandled or abusing their new found independence and authority. Another serious threat to decentralization is that the business might turn to be fragmented. Units that worked well in the centralized business operations might lose the sense of teamwork and coordination. Decentralization u nits might put their individual interest first rather than those of the company in entirety. IN areas like the productivity and customer services, it might suffer as a result. Inventive ideas that once spread faster in the business might turn to be within individual units (Wilson, 2012). Where the business decentralizes, it should hire speculated administration for every individual department. This motivates improved production but it might cause conflict within the business. Is simpler for a decentralized business to diversify its product and enhanced its services. Nevertheless, it runs the threat of product or service worsening as divisional department might not comply with the policy of the business and procedure of doing business. Despite decentralization improving the ownerships capacity to centre on and resolve problems that might existing within the business, thought they depict less control over the occurrence of internal matters. Coordination is as well a challenge within the decentralized business (Jakki J. Mohr, 2009). Bibliography Dagwell, R. (2011) Corporate Accounting in Australia - Page 10, Sydney: Springer. Drischel, J. (2003) Participative Budgeting and its Effects on Employee Motivation, New York. Ernst & Young (2011) International GAAP 2012: Generally Accepted Accounting Practice., London: Springer. Fabozzi, P.P.&.‎. (2014) Capital Budgeting: Theory and Practice, London: Springer. Jakki J. Mohr, ‎.S.‎.F.S. (2009) Marketing of High-technology Products and Innovations. Kinney, M. (2012) Cost Accounting - Page 747, London. Otley, D. (2013) Accounting for Management Control - Page 493, London: Cingage Learning. Tommie, S. (2006) Fraud Auditing and Forensic Accounting, London: Springer. Wilson, R.M.S. (2012) Strategic Marketing Management - Page 534, New York. Read More