Reasons For A Change In An Organisations Product Or Service

Reasons For A Change In An Organisations Product Or Service

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Organizations will change the goods or services they provide, more often than others. This can be for many reasons such as social trends, competition, advances in technology and occasionally from accusations from pressure groups. Social trends give a broad indication of the society in that particular country, by analyzing previous economic data. Social trends will have an effect on the services or products that organizations provide, for example as technology advances in the car industry, and the public require a vehicle that is friendlier towards the environment. This will result in the organization needing to make the factory and the car itself more fuel efficient, and release less harmful gasses. All of these things lead to customer satisfaction, which in turn will lead to the customer expecting a better service. Eastgate Ford in Canada, for example, have included in their mission statement that their tradition of customer satisfaction has brought their customers back year after year. However having a high standard of service and product will spark a reaction from rival companies. Competition can also be good for the consumer as it can cause certain companies to begin lowering prices, in order to attract customers. It is important that the companies do not get into a price war, because the automobile market is somewhat an oligopoly, containing a few large competitors who can afford to lower prices more than smaller companies, due to larger profit margins. Therefore if the smaller companies cannot lower prices they will need to find a new product or service to meet consumer needs. If they can find this particular service then the small company could use heavy marketing to promote the USP (unique selling point). In order to find a USP the organization will need to partake in research and development, this can also be used to find more efficient ways to create goods and provide services, and from here it will create new ideas, innovation and give a competitive advantage to them.

Pressure groups are also a cause for the change of a product or service. Pressure groups can exert pressure onto an organization by seeking publicity, creating petitions, holding protests, and in extreme cases criminal activity, if they feel strongly against the actions of the organization. For example on 6th October last year, animal rights extremists dug up the grave of a relative of an employee of a medical research farm.

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Eventually the pressure group won by causing the closure of the farm and complete removal of any services and goods that the farm created, by using illegal direct action. However there are more peaceful pressure groups such as trade unions, which are created to influence policies for workers, such as pensions, equal opportunities, discrimination. Trade unions and any pressure groups need to be careful as to how they try to influence organizations. The main aim of any group is to raise awareness to the public; however certain actions could turn the public against them, such as the removal of a body from a grave. Pressure groups are no longer restricted to the mediums of pen and paper, with the creation of the internet and other high tech equipment, pressure groups can spread their story much faster and to more areas of the world. Pressure groups can also have a negative effect on the organization, by creating a negative image. Organizations, however, can also use advances in technology to combat pressure groups, as it can be the quickest and most effective. The organizations will generally have better access to better resources, due to higher revenue. Organizations also have the ability to use technology to create new goods and services because the technology helps with innovation of these items. A lot of innovation is voluntary because organizations want to have the best product on the market, as it will set a benchmark for all other competitors in that particular market, and will force them to complete more research and development for a better product. As mentioned before the organization already has a competitive advantage over their competition. A lot of organizations may use the theory of Kaizen. Kaizen is the process of continuous improvement via small and gradual developments, which can be achieved by discussion and reviewing positive and negative points from the previous product. As mentioned before, the car industry heavily relies on kaizen. Once the main body of the car has been created, only small improvements need to be made, such as fuel efficiency, and how green the car is towards the environment. Kaizen can also result in rapid reduction of costs. By using kaizen in the car industry essential, small changes can be made over a brief period and improve the quality of the product for the consumer and also the reputation of the company. Occasionally updating the technology in an organization is compulsory, for example if a competitor has found a new way to create better products at a lower cost, due to better technology, then organizations will not want to be left behind so they update their methods of production. Computer numerically controlled machines are a very effective way of getting an accurate shaping, cuts and producing products, they are also more consistent than a human. Using these machines means that there is a better standard of work produced at a higher rate, which in turn will mean the customer will receive an equally good product wit every purchase.

Organizations will generally change any goods or services, to keep a high level of customer satisfaction, a high standard of reputation, but will also try to do this at a minimal cost. Research has shown me that kaizen is a very effective way of performing these things however there are a lot of other aspects in the business that need to be regulated, such as the workforce an external influences like pressure groups. If an organization can constantly meet customer satisfaction at a minimal cost with small improvements, this will create customer loyalty which in return brings a higher profit.
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