Effect of Loyalty Cards on Customer Loyalty

Effect of Loyalty Cards on Customer Loyalty Background of the topic: The purpose of this dissertation is to analyze and investigate the effect of the loyalty cards on customer loyalty and how does it helps large organizations to achieve its goals. When shopping in supermarkets there is one experience that everyone has, when customers finish with their shopping and get to a checkout, the assistant will ask the customers, whether they have a clubcard. This will continue every time whenever those customers without a clubcard shops in the future, the assistant will keep on asking them for a clubcard unless they get one for themselves. Now there is a question that will come across every customers mind, what is a clubcard and why does every company insist them and every customer to be a part of the clubcard family? Now people become curious and they want to get a clubcard too. The assistant says to fill up a form with the customers general details like name, address and contact details and the day customer fills the form, next day they will receive a clubca rd. Impressive, now why companies offer clubcards to their customers, how do companies benefit from these schemes they provide for their customers? Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Loyalty cards can significantly boost business profits whilst simultaneously building customer loyalty. Studies show that loyalty cards are one of the most cost effective ways to build brand loyalty and improve customer retention. Loy alty cards are used by all the major retail and supermarket chains as a vital tool to improve profitability, but one does not need to be a national high street store in order to run a profitable reward card scheme. One of the reasons the supermarkets are taking business away from independent retailers are the incentives offered in their loyalty card schemes. The loyalty cards market in the UK is one of the most significant in the world and forms the backbone of marketing and customer retention planning. With over 85% of UK Households possessing loyalty cards it is really a case where companies can afford not to offer a loyalty card service to their customers. There are different companies who offer loyalty schemes for their customer and give customers shopping vouchers after they spend certain amount of money through those loyalty cards. Main objective behind loyalty cards is to keep customer loyal with the company by offering them discounts and gifts on their shopping so they spend more money in their shops and markets. Most common example of loyalty card is Tesco club card, Sainsbury nectar card and other such cards offered by different companies in the country. But most of the people wont understand the idea behind those loyalty cards that how they work. The success of the Tesco Clubcard has been well documented, in 2002 a Market and Opinion Research Poll found that Tescos Clubcard had been more successful than the programmers offered by rival supermarkets (Smith, 2004). Rationale: Why is this study being done Tesco got a huge amount of success with its loyalty schemes unlike its competitors. The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Companies offer such countless schemes for their customers to retain and maintain customer loyalty for their store. There are many other factors behind these loyalty schemes where companies benefit. Loyalty card schemes are not only beneficial for the customers, but are equally beneficial for the companies as well. Significance: How does the study contribute The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. This will contribute to contrast customer perceptions of the Clubcard, staff and â€Å"feeling valued† to identify which factor has the greater impact on customer loyalty to store. The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards. Tesco has succeeded with the strategy of loyalty cards, but its competitors did not. Retailers like Sainsburys and ASDAs who are the competitors of Tesco, did not manage to promote their business using their loyalty cards as Tesco did. Tesco got a huge amount of success with its loyalty schemes unlike its competitors. Tesco has been known for their best customer service where as its competitor, Asda have been known for their best value and low competitive prices. Now why has Tesco chosen such a marketi ng strategy to attract customers and increase revenue? The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Tesco has chosen a marketing strategy where they need to gain customers faith and trust to maintain a good relationship with them. Hence they need to know everything about their customers individually. How will they keep a track of each and every customer they have? There are many strategies to know your customers and Tesco uses such strategies to have a good track of their customers. The best way to do this is by the method of loyalty cards. Companies can know much more about their customers through loyalty cards. This study will show how Tesco collects data of t heir customers and use that data to improve their customer service in order to gain customer satisfaction. Aims Objectives: The aim of the research is to investigate the influence of the Tesco Clubcard on customer store loyalty. In 1995, Tesco introduced the loyalty Clubcard that was to offer, â€Å"Benefits to regular shoppers whilst helping the company discover more about its Customer needs†. The main aim of this research will be to compare the Loyalty schemes of Tesco Clubcards with its competitors like Sainsburys and ASDA, and find out why Tescos Clubcards were a huge success unlike Sainsburys Nectar and Asda loyalty cards did not succeed in promoting their business. The study also focuses on the need of customer loyalty and what steps were taken by Tesco to retain and maintain its customer loyalty. (www.tescocorporate.com) Sign Posting: A glance at the major and successful organizations around the globe shows that their success is partly due to their ability to apply the theory of relationship marketing. In the contemporary business arena, all organizations, large or small improve their effectiveness and efficiency by applying this theory, thus improving their customer service and customer relations which play a very important role for any business organization. This study shows the brief idea of the Relationship Marketing and how it has been used by the retail giant, Tesco to gain their customers loyalty and retain it for a long time. Tesco is the company on which this whole study has been based on. At the first there is some information and idea has been explained about Relationship Marketing and how is plays a vital role in companys marketing strategies. It also discusses about the benefits of the relationship marketing and how it is used by the company to achieve its aims and objectives. This will later on conti nue with the main topic, that is, the success of Tescos loyalty cards other than its competitors. It will discuss the concept of the loyalty cards and the different strategies used by Tesco and even its competitors to get a competitive edge in the surviving market. The later part of the study also shows how Clubcards are beneficial for the customers as well as the company. Then research methodology is identified that how the research will be conducted, it includes that how the research will designed means the ways through effective data can be find out. Literature Review In this discussion outcomes from the previous research will be demonstrate to provide the clear understanding to the topic. In this chapter views of different authors and researches will be quoted to support the research. It will include the work of researchers who have worked on this matter and have reached to some conclusion. As a literature review chapter it will consist of basic definitions of customer loyalty, customer relationship, loyalty cards and the most important one relationship marketing. This chapter will also explain these theories and how are they applicable for the strategies used by the companies to achieve their goals and success. Customer Relationship: What does it mean for an organisation and its customer to have a relationship with each other? What kind of a relationship would they have with each other? Do customers have relationships with enterprises that do not know them? Is it necessary that the companies know their customers or the other way around? What kind of a relationship would that be if both the parties are unaware of the relationship they have? Can the enterprise be said to have a relationship with a customer it does not know? Is it possible for a customer to have a relationship with a brand? It can be said that customers would know the products but not the company. Experts have studied the nature of relationships in business for many years, and there are many different perspectives on the fundamental purpose of relationships in business strategies. It can be said that the only aim of the company is not only to gain maximum profits out of their customers or having the greatest market share or the rank the company is. Instead, to be successful in the era of interactivity, when it is possible to deal individually with separate customers, the business objective must include establishing meaningful and profitable relationships at least with the most valuable customers, and making the overall customer base more valuable. Technology plays a very crucial role in maintaining this relationship between companies and customers. In short, the company strives to get a customer, keep that customer for a lifetime, and grow the value of the customer to the organisation. Relationships are the crux of the customer-strategy enterprise. Relationships between customers and enterprises provide the framework for everything else connected to the customer-value business model. This is the same model used by Tesco in order to gain a competitive advantage in the most competitive markets in the world. The exchange between a customer and the enterprise becomes mutually beneficial, as customers give information in return for personalized service that meets their individual needs. Because we are talking about relationships between businesses and their customers, it is important that we agree on a few of the elements that make up a genuine relationship. And while dictionary definitions are not bad as starting points, the most important issue for us to consider is how well our own definition of relationship helps companies succeed in the â€Å"customer dimension† of competition. Lets list some of the distinct qualities that should characterize a relationship between an enterprise and a customer. First, a relationship implies mutuality. In order for anyone to consider a relationship, both the company and its customer have to participate in and be aware of the existence of the relationship. This is the most common factor which is needed to be realized by both the parties. This means that relationships must inherently be two-way in nature. Second, relationships are driven by interaction. When the company and the customer interact, they exchange information, and this information exchange is a best tool for building the relationship. This, of course, also implies mutuality. But interactions dont have to take place by phone or in person or on the Web. An interaction takes place when a customer buys a product from the company that sells it. This is where the customer and the company are in face to face for a reason which builds up this relationship. Every interaction adds to the total information content possible in the relationship. This leads to the third characteristic of a relationship: It is iterative in nature. That is, since both the customer and the company are interacting mutually, the interactions themselves build up a history, over time—a context. This context gives a relationships future interactions greater and greater efficiency, because every successive interaction represents that the company and the customer is growing into a healthy relationship than before by communication and a benefit for both the parties. The mo re that company communicates with its customer, the less they need to say the next time around to get their point across. Another characteristic of a customer relationship is that it will be driven by an ongoing benefit to the customer and the company. The customers convenience is one type of benefit, for the customer, but not the only one. Participating in a relationship will involve a cost in money, time, or effort, and no customer will engage for long in any relationship the company wont be more beneficial for that customer, of it that customer is not getting more benefits that before. However, precisely because of the context of the relationship and its continuing benefit for the customer and the company, each party in a relationship has an incentive to recover from mistakes. Relationships also require a change in behavior on the part of both, the customer as well as the company, in order to continue. After all, what drives the ongoing benefit of a relationship is not only its c ontext, its history of interactions, developed over time, but also the fact that the customers and the companys current and future actions reflect that previous context. This is an important characteristic, because companies sometimes mistakenly believe that interactions with a customer need is always the same, the communication from the companys side, cannot deliver same behavior pattern to every customer. In other words companies need to have relationships with their customer individually because the behavior of every customer is not always the same, which can result in different kind of relationship pattern with the company. But unless the companys actions toward a particular customer are somehow different, there is a possibility of miscommunication and can ruin the relation between that customer and the company, which will be no ongoing benefit for the customer, and as a result the customer might not continue the relationship. Every relationship is different. Relationships are c onstituted with individuals, not with populations. This means relationships are with the individual customer and not the whole segment of the customer population of the company. As a result, a company who wants to engage its customers in relationships must be prepared to participate in different interactions, remember different customers and their behavior or spending habits, and engage in different behaviors toward different customers.(Peppers .D, Rogers. M 2004) During the last few years there has been a growing interest in studying the economics and markets of long-lasting customer relationships where customer relationships play a vital role for every company. This kind of relationship can help to increase revenue for the company which can be a long term process and a continuous growth of the relationship between the organization and the customer. Heskett introduced the concept of market economies, which means achieving results by understanding the customers behavior instead of by concentrating on developing scale economies. (Heskett, J.L., 1987) A mutually satisfactory relationship between the company and its customers makes it possible for customers to avoid significant transaction costs involved in shifting from one company or a service provider which can be beneficial for both, the customer and the company. However, customer retention is not enough. Some long-lasting customer relationships, where the customers are obviously satisfied with what they get, are not profitable even in the long run, as Storbacka says. There is clear evidence that from a profitability point of view intelligent relationship building where company can be beneficial to the customer as well as themselves in the long run, then only such a management make sense. (Storbacka, K., 1993) Customer Loyalty: The whole point of a relationship is to keep your customers, and simultaneously grow new customers. So what is customer loyalty? Those whove tried to answer that question have approached it from two different directions: attitudinal (what Barnes calls â€Å"emotional†) and behavioral (what Barnes calls â€Å"functional†). Although each of these two definitions of loyalty is valid, they have different implications and lead to very different prescriptions for businesses. The attitudinal definition of loyalty implies that loyalty is a state of mind. Customers are loyal to a brand or a company if they have a positive, preferential attitude toward it. They like the company, its products, or its brands, and they therefore prefer to buy from it, rather than from the companys competitors. In purely commercial terms, the attitudinal definition of customer loyalty would mean that someone who is willing to pay a premium for Brand A over Brand B, even when the products they represe nt are virtually equivalent, is loyal to Brand A. But the emphasis is on willingness, rather than on actual behavior, per se. In terms of attitudes, then, increasing a customers loyalty is virtually equivalent to increasing the customers preference for the brand. It is closely tied to product quality and customer satisfaction. Any company wanting to increase loyalty, in attitudinal terms, will concentrate on improving its product, its image, or other elements of the customer experience, relative to its competitors. The behavioral definition of loyalty would mean that someone is willing to pay a premium for Brand A over Brand B, even without respect to the attitudes or preferences that underlie that conduct. By this definition, customers are loyal to a company if they buy from it and then continue to buy from it. Loyalty is concerned with repurchase activity, regardless of any internally held attitudes or preferences. In the behavioral definition, loyalty is not the cause, but the re sult of brand preference. A company wanting to increase customer loyalty will focus on whatever tactics will in fact increase the amount of repurchase behavior— tactics that can easily include, without being limited to, raising consumers general preference for the brand or their level of satisfaction with it. (Peppers .D, Rogers. M 2004) Customer loyalty could be termed a â€Å"customers commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates†. It is a term which is neither easy to gain nor maintain, rather it is vulnerable, where â€Å"even if its customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere†. (McIlroy, A. and Barnett, S. (2000) In order to investigate the concept of loyalty, we see the framework of Sopanen (1996) to reveal six different types of loyalty: (1) Monopoly loyalty, where there are no available choices. (2) Inertia loyalty, where customers do not actively seek substitutes. (3) Convenience loyalty, where loyalty is solely defined by location. (4) Price loyalty: where customers are influenced by the lowest price. (5) Incentivized loyalty, where loyalty relates to the benefits gained from reward cards and programmers. (6) Emotional loyalty, where customers are influenced by factors such as brand. From this we can observe that loyalty programs such as Tesco Clubcard can be considered an incentivized type of loyalty, which can be exhibited by customers, but the strength of this loyalty is often questioned. â€Å"As organizations become increasingly customer focused and driven by customer demands, the need to meet the customers expectations and retain their loyalty becomes more critical† (Disney, 1999, p. 491). Customer loyalty is one of the fundamental goals of marketing (Selnes, 1993). Not only does it guarantee repeat customers, but it also decreases the need for companies to spend large portions of their budgets on advertising and promotion in order to attract new customers. Mittal and Lassar (1998) identified that customer loyalty is very often thought of as an outcome of customer satisfaction. This explains why customer satisfaction has become an essential concept in marketing and its quest is one of the most important goals for businesses (Webster, 1994) Relationship Marketing: Relationship marketing is very much interlinked with the notion and practice of customer care. There is no doubt that the development of relationship marketing has had and will continue to have major implications for the marketing managers. Comprehensive accounts of the development, meaning and implications of relationship marketing for the contemporary marketer are given by Lancaster and Massingham. As so often, there are many different views as to the precise nature and hence definition of relationship marketing. So, for example, Groonroos stressed the element of mutual exchange ad trust in relationship marketing as follows. â€Å"Relationship marketing is a process including several parties or actors, the objective of which has to be met. This is done by mutual exchange and fulfillment of promises, a fact that makes trust an important aspect of marketing†. Stone and Woodcock on the other hand put more emphasis on the traditional tool of sales, communication and customer care techniques. Again we see overlap between these two areas. â€Å"Relationship marketing involves the use of a wide range of marketing, sales, communications and customer care techniques and processes to: identify named individual customers, create a relationship between the company and these customers, and manage that relationship to the benefit of both the customer and the company†. Perhaps one of the simplest and yet the most powerful summaries of what relationship marketing is however, is that provided by Buttle. â€Å"At its best, RM (relationship management) is characterized by a genuine concern to meet or exceed the expectations of the customers and to provide excellent service in an environment of trust and commitment to the relationship†. Buttle goes on to indicate what is involved in successful relationship marketing and the commitment of the company required to generate this success. â€Å"To be successful relationship marketers, companies must develop a supportive organizational culture, market the RM idea internally, intimately understand customers expectations, create and maintain a detailed customer database, and organize and reward employees in such a way that the objective of RM, customer retention, is achieved†. This illustrates that relationship marketing has major implications for both how we think about marketing and our approach to the practice of marketing. It affects and includes the provision of marketing information, organizational systems and procedures, and the elements of marketing strategy. Relationship Marketing refers to Promotional and needs and maintain the relationship. This proposal is concerned with Relationship management and marketing at how it is been used by companies to maintain existing customers, retain lost customers and attract new customers. (http://www.businessdictionary.com/definition/relationship-marketing.html) Relationship marketing is systems-oriented, yet it includes managerial aspects. A systems approach is well suited as a basis for a general theory of marketing, because it makes it possible to include all relevant actors, environmental influence, and even the process nature of marketing. (Kuhn, T.S. (1957) The concept of relationship marketing has emerged within the fields of service marketing and industrial marketing. The phenomenon described by this concept is strongly supported by ongoing trends in modern business. Grà ¶nroos defines relationship marketing in the following way: Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. Such relationships are usually but not necessarily always long-term. Establishing a relationship, for example with a customer, can be divided into two parts: to attract the customer and to build the relationship with that customer so that the economic goals of that relationship are achieved. (Grà ¶nroos, C. (1990) More businesses are moving toward relationship marketing in dealing with their customers as more customers expect a personalized experience. Considering relationship marketing vs. transactional marketing for http://searchcrm.techtarget.com/generic/0,295582,sid11_gci1253633_mem1,00.html) Relationship marketing is a marketing strategy that emphasizes customer loyalty, customer retention and long-term customer engagement. Using the relationship marketing approach, an organization aims to develop strong, long-term connections with customers by providing them with information directly suited to their needs and interests. This approach often results in increased word-of-mouth activity, long-term purchasing behavior and a willingness to provide information. The goal of every enterprise, once you strip away all the activities that keep everybody busy every day, is simply to get, keep, and grow customers. Whether a business focuses its efforts on product innovation, operational efficiency and low price, or customer intimacy, for that firm must have customers or the enterprise isnt a business—its a hobby. This is true for nonprofits (where the â€Å"customers† may be donors or volunteers) as well as for-profits, for firms large and small, for public as well as private enterprise. What does it mean for an enterprise to focus on its customers as the key to competitive advantage? Obviously, it does not mean giving up the product edge, or the operational efficiencies, that have been successful in the past. It does mean using new strategies, nearly always requiring new technologies, to focus on growing the value of the company by deliberately and strategically growing the value of the customer base. Companies needed to build compr ehensive customer databases. Companies had been maintaining product databases, sales force databases, and dealer databases. Now they needed to build, maintain, mine, and manage a customer database that could be used by company personnel in sales, marketing, credit, accounting, and other company functions. As customer database marketing grew, several different names came to describe it, including individualized marketing, customer intimacy, technology enabled marketing, dialogue marketing, interactive marketing, permission marketing, and one-to-one marketing. Modern technology makes it possible for enterprises to learn more about individual customers, remember those needs, and shape the companys offerings, services, messages and interactions to each valued customer. The new technologies make mass-customization (otherwise an oxymoron) possible. At the same time, technology is only a partial factor in helping companies do genuine one-to-one marketing. The following quotes about custome r relationship management (CRM) make this point vividly: â€Å"CRM is not a software package. Its not a database. Its not a call center or a Web site. Its not a loyalty program, a customer service program, a customer acquisition program or a win-back program. CRM is an entire philosophy.† (Steve Silver) â€Å"A CRM program is typically 45 percent dependent on the right executive leadership, 40 percent on project management implementation and 15 percent on technology.† (Edmund Thompson, Gartner Group) (Peppers .D, Rogers. M 2004) Loyalty Card: Any retailer running a loyalty card scheme could call up customer details and purchase history from incoming phone numbers. In many firms, loyalty cards are used for direct marketing and not much else. Using them to dramatically improve customer service seems a fitting reward for loyalty. Marketing program designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related purchases on that brand. Most loyalty programs offer perks for membership in a club or program and reward purchases. Rewards may be based on the dollar value of purchases made or on the frequency of purchases. The most well-known loyalty programs are airline frequent-flyer programs that offer discounts against future travel called award miles. Most large supermarket chains now have frequent-buyer clubs that offer no-coupon discounts as well as newsletters and http://www.answers.com/topic/loyalty-program) A loyalty card program is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card program is to build repeat business by offering participating customers something that isnt available to non-participating customers. Loyalty cards often resemble plastic credit cards but they can also be keychain fobs or stickers. Typically a loyalty card has a barcode or magnetic stripe thats scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers buying habits. According to research carried out by Boston Universitys College of Communication, eighty-six percent of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy. Loyalty schemes are necessary for the retailers because it helps them in attracting the customers and when they came to them they try to retain them by offering their services on discounted rates and by offering them further discounts and services. Smith states the importance of loyalty cards and schemes in the following sta tement â€Å"if Effect of Loyalty Cards on Customer Loyalty Effect of Loyalty Cards on Customer Loyalty Background of the topic: The purpose of this dissertation is to analyze and investigate the effect of the loyalty cards on customer loyalty and how does it helps large organizations to achieve its goals. When shopping in supermarkets there is one experience that everyone has, when customers finish with their shopping and get to a checkout, the assistant will ask the customers, whether they have a clubcard. This will continue every time whenever those customers without a clubcard shops in the future, the assistant will keep on asking them for a clubcard unless they get one for themselves. Now there is a question that will come across every customers mind, what is a clubcard and why does every company insist them and every customer to be a part of the clubcard family? Now people become curious and they want to get a clubcard too. The assistant says to fill up a form with the customers general details like name, address and contact details and the day customer fills the form, next day they will receive a clubca rd. Impressive, now why companies offer clubcards to their customers, how do companies benefit from these schemes they provide for their customers? Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Loyalty cards can significantly boost business profits whilst simultaneously building customer loyalty. Studies show that loyalty cards are one of the most cost effective ways to build brand loyalty and improve customer retention. Loy alty cards are used by all the major retail and supermarket chains as a vital tool to improve profitability, but one does not need to be a national high street store in order to run a profitable reward card scheme. One of the reasons the supermarkets are taking business away from independent retailers are the incentives offered in their loyalty card schemes. The loyalty cards market in the UK is one of the most significant in the world and forms the backbone of marketing and customer retention planning. With over 85% of UK Households possessing loyalty cards it is really a case where companies can afford not to offer a loyalty card service to their customers. There are different companies who offer loyalty schemes for their customer and give customers shopping vouchers after they spend certain amount of money through those loyalty cards. Main objective behind loyalty cards is to keep customer loyal with the company by offering them discounts and gifts on their shopping so they spend more money in their shops and markets. Most common example of loyalty card is Tesco club card, Sainsbury nectar card and other such cards offered by different companies in the country. But most of the people wont understand the idea behind those loyalty cards that how they work. The success of the Tesco Clubcard has been well documented, in 2002 a Market and Opinion Research Poll found that Tescos Clubcard had been more successful than the programmers offered by rival supermarkets (Smith, 2004). Rationale: Why is this study being done Tesco got a huge amount of success with its loyalty schemes unlike its competitors. The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Background of this research title is concerned with the highly competitive market where retail giants have to survive and maintain their competitive edge to always stay ahead in the race or even to survive the downfall whenever necessary. Unlimited majors are taken and a huge amount of time and money is spent to attract customers who bring revenue to the company. Having a large number of competitors around, it is very difficult to have a competitive advantage. Basic mean for this subject matter is to identify the purpose and importance of relationship marketing, and its benefits to make strategic decisions. Companies offer such countless schemes for their customers to retain and maintain customer loyalty for their store. There are many other factors behind these loyalty schemes where companies benefit. Loyalty card schemes are not only beneficial for the customers, but are equally beneficial for the companies as well. Significance: How does the study contribute The aim of the research is to identify the impact of the Tesco Clubcard on customer loyalty. This will contribute to contrast customer perceptions of the Clubcard, staff and â€Å"feeling valued† to identify which factor has the greater impact on customer loyalty to store. The paper is useful to both practitioners and academics in the fields of relationship marketing and loyalty. The research provides some initial insight into consumer perspectives in the value of loyalty cards. Tesco has succeeded with the strategy of loyalty cards, but its competitors did not. Retailers like Sainsburys and ASDAs who are the competitors of Tesco, did not manage to promote their business using their loyalty cards as Tesco did. Tesco got a huge amount of success with its loyalty schemes unlike its competitors. Tesco has been known for their best customer service where as its competitor, Asda have been known for their best value and low competitive prices. Now why has Tesco chosen such a marketi ng strategy to attract customers and increase revenue? The reason behind this study is to find out why Tesco was so successful with their Loyalty cards, Tesco Club cards, as they are named, and how it played a very important role in maintaining their customers loyalty, which is very important for any business today. The theory behind this concept is Relationship Marketing, and how it was used by Tesco to grow its business. Tesco has chosen a marketing strategy where they need to gain customers faith and trust to maintain a good relationship with them. Hence they need to know everything about their customers individually. How will they keep a track of each and every customer they have? There are many strategies to know your customers and Tesco uses such strategies to have a good track of their customers. The best way to do this is by the method of loyalty cards. Companies can know much more about their customers through loyalty cards. This study will show how Tesco collects data of t heir customers and use that data to improve their customer service in order to gain customer satisfaction. Aims Objectives: The aim of the research is to investigate the influence of the Tesco Clubcard on customer store loyalty. In 1995, Tesco introduced the loyalty Clubcard that was to offer, â€Å"Benefits to regular shoppers whilst helping the company discover more about its Customer needs†. The main aim of this research will be to compare the Loyalty schemes of Tesco Clubcards with its competitors like Sainsburys and ASDA, and find out why Tescos Clubcards were a huge success unlike Sainsburys Nectar and Asda loyalty cards did not succeed in promoting their business. The study also focuses on the need of customer loyalty and what steps were taken by Tesco to retain and maintain its customer loyalty. (www.tescocorporate.com) Sign Posting: A glance at the major and successful organizations around the globe shows that their success is partly due to their ability to apply the theory of relationship marketing. In the contemporary business arena, all organizations, large or small improve their effectiveness and efficiency by applying this theory, thus improving their customer service and customer relations which play a very important role for any business organization. This study shows the brief idea of the Relationship Marketing and how it has been used by the retail giant, Tesco to gain their customers loyalty and retain it for a long time. Tesco is the company on which this whole study has been based on. At the first there is some information and idea has been explained about Relationship Marketing and how is plays a vital role in companys marketing strategies. It also discusses about the benefits of the relationship marketing and how it is used by the company to achieve its aims and objectives. This will later on conti nue with the main topic, that is, the success of Tescos loyalty cards other than its competitors. It will discuss the concept of the loyalty cards and the different strategies used by Tesco and even its competitors to get a competitive edge in the surviving market. The later part of the study also shows how Clubcards are beneficial for the customers as well as the company. Then research methodology is identified that how the research will be conducted, it includes that how the research will designed means the ways through effective data can be find out. Literature Review In this discussion outcomes from the previous research will be demonstrate to provide the clear understanding to the topic. In this chapter views of different authors and researches will be quoted to support the research. It will include the work of researchers who have worked on this matter and have reached to some conclusion. As a literature review chapter it will consist of basic definitions of customer loyalty, customer relationship, loyalty cards and the most important one relationship marketing. This chapter will also explain these theories and how are they applicable for the strategies used by the companies to achieve their goals and success. Customer Relationship: What does it mean for an organisation and its customer to have a relationship with each other? What kind of a relationship would they have with each other? Do customers have relationships with enterprises that do not know them? Is it necessary that the companies know their customers or the other way around? What kind of a relationship would that be if both the parties are unaware of the relationship they have? Can the enterprise be said to have a relationship with a customer it does not know? Is it possible for a customer to have a relationship with a brand? It can be said that customers would know the products but not the company. Experts have studied the nature of relationships in business for many years, and there are many different perspectives on the fundamental purpose of relationships in business strategies. It can be said that the only aim of the company is not only to gain maximum profits out of their customers or having the greatest market share or the rank the company is. Instead, to be successful in the era of interactivity, when it is possible to deal individually with separate customers, the business objective must include establishing meaningful and profitable relationships at least with the most valuable customers, and making the overall customer base more valuable. Technology plays a very crucial role in maintaining this relationship between companies and customers. In short, the company strives to get a customer, keep that customer for a lifetime, and grow the value of the customer to the organisation. Relationships are the crux of the customer-strategy enterprise. Relationships between customers and enterprises provide the framework for everything else connected to the customer-value business model. This is the same model used by Tesco in order to gain a competitive advantage in the most competitive markets in the world. The exchange between a customer and the enterprise becomes mutually beneficial, as customers give information in return for personalized service that meets their individual needs. Because we are talking about relationships between businesses and their customers, it is important that we agree on a few of the elements that make up a genuine relationship. And while dictionary definitions are not bad as starting points, the most important issue for us to consider is how well our own definition of relationship helps companies succeed in the â€Å"customer dimension† of competition. Lets list some of the distinct qualities that should characterize a relationship between an enterprise and a customer. First, a relationship implies mutuality. In order for anyone to consider a relationship, both the company and its customer have to participate in and be aware of the existence of the relationship. This is the most common factor which is needed to be realized by both the parties. This means that relationships must inherently be two-way in nature. Second, relationships are driven by interaction. When the company and the customer interact, they exchange information, and this information exchange is a best tool for building the relationship. This, of course, also implies mutuality. But interactions dont have to take place by phone or in person or on the Web. An interaction takes place when a customer buys a product from the company that sells it. This is where the customer and the company are in face to face for a reason which builds up this relationship. Every interaction adds to the total information content possible in the relationship. This leads to the third characteristic of a relationship: It is iterative in nature. That is, since both the customer and the company are interacting mutually, the interactions themselves build up a history, over time—a context. This context gives a relationships future interactions greater and greater efficiency, because every successive interaction represents that the company and the customer is growing into a healthy relationship than before by communication and a benefit for both the parties. The mo re that company communicates with its customer, the less they need to say the next time around to get their point across. Another characteristic of a customer relationship is that it will be driven by an ongoing benefit to the customer and the company. The customers convenience is one type of benefit, for the customer, but not the only one. Participating in a relationship will involve a cost in money, time, or effort, and no customer will engage for long in any relationship the company wont be more beneficial for that customer, of it that customer is not getting more benefits that before. However, precisely because of the context of the relationship and its continuing benefit for the customer and the company, each party in a relationship has an incentive to recover from mistakes. Relationships also require a change in behavior on the part of both, the customer as well as the company, in order to continue. After all, what drives the ongoing benefit of a relationship is not only its c ontext, its history of interactions, developed over time, but also the fact that the customers and the companys current and future actions reflect that previous context. This is an important characteristic, because companies sometimes mistakenly believe that interactions with a customer need is always the same, the communication from the companys side, cannot deliver same behavior pattern to every customer. In other words companies need to have relationships with their customer individually because the behavior of every customer is not always the same, which can result in different kind of relationship pattern with the company. But unless the companys actions toward a particular customer are somehow different, there is a possibility of miscommunication and can ruin the relation between that customer and the company, which will be no ongoing benefit for the customer, and as a result the customer might not continue the relationship. Every relationship is different. Relationships are c onstituted with individuals, not with populations. This means relationships are with the individual customer and not the whole segment of the customer population of the company. As a result, a company who wants to engage its customers in relationships must be prepared to participate in different interactions, remember different customers and their behavior or spending habits, and engage in different behaviors toward different customers.(Peppers .D, Rogers. M 2004) During the last few years there has been a growing interest in studying the economics and markets of long-lasting customer relationships where customer relationships play a vital role for every company. This kind of relationship can help to increase revenue for the company which can be a long term process and a continuous growth of the relationship between the organization and the customer. Heskett introduced the concept of market economies, which means achieving results by understanding the customers behavior instead of by concentrating on developing scale economies. (Heskett, J.L., 1987) A mutually satisfactory relationship between the company and its customers makes it possible for customers to avoid significant transaction costs involved in shifting from one company or a service provider which can be beneficial for both, the customer and the company. However, customer retention is not enough. Some long-lasting customer relationships, where the customers are obviously satisfied with what they get, are not profitable even in the long run, as Storbacka says. There is clear evidence that from a profitability point of view intelligent relationship building where company can be beneficial to the customer as well as themselves in the long run, then only such a management make sense. (Storbacka, K., 1993) Customer Loyalty: The whole point of a relationship is to keep your customers, and simultaneously grow new customers. So what is customer loyalty? Those whove tried to answer that question have approached it from two different directions: attitudinal (what Barnes calls â€Å"emotional†) and behavioral (what Barnes calls â€Å"functional†). Although each of these two definitions of loyalty is valid, they have different implications and lead to very different prescriptions for businesses. The attitudinal definition of loyalty implies that loyalty is a state of mind. Customers are loyal to a brand or a company if they have a positive, preferential attitude toward it. They like the company, its products, or its brands, and they therefore prefer to buy from it, rather than from the companys competitors. In purely commercial terms, the attitudinal definition of customer loyalty would mean that someone who is willing to pay a premium for Brand A over Brand B, even when the products they represe nt are virtually equivalent, is loyal to Brand A. But the emphasis is on willingness, rather than on actual behavior, per se. In terms of attitudes, then, increasing a customers loyalty is virtually equivalent to increasing the customers preference for the brand. It is closely tied to product quality and customer satisfaction. Any company wanting to increase loyalty, in attitudinal terms, will concentrate on improving its product, its image, or other elements of the customer experience, relative to its competitors. The behavioral definition of loyalty would mean that someone is willing to pay a premium for Brand A over Brand B, even without respect to the attitudes or preferences that underlie that conduct. By this definition, customers are loyal to a company if they buy from it and then continue to buy from it. Loyalty is concerned with repurchase activity, regardless of any internally held attitudes or preferences. In the behavioral definition, loyalty is not the cause, but the re sult of brand preference. A company wanting to increase customer loyalty will focus on whatever tactics will in fact increase the amount of repurchase behavior— tactics that can easily include, without being limited to, raising consumers general preference for the brand or their level of satisfaction with it. (Peppers .D, Rogers. M 2004) Customer loyalty could be termed a â€Å"customers commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates†. It is a term which is neither easy to gain nor maintain, rather it is vulnerable, where â€Å"even if its customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere†. (McIlroy, A. and Barnett, S. (2000) In order to investigate the concept of loyalty, we see the framework of Sopanen (1996) to reveal six different types of loyalty: (1) Monopoly loyalty, where there are no available choices. (2) Inertia loyalty, where customers do not actively seek substitutes. (3) Convenience loyalty, where loyalty is solely defined by location. (4) Price loyalty: where customers are influenced by the lowest price. (5) Incentivized loyalty, where loyalty relates to the benefits gained from reward cards and programmers. (6) Emotional loyalty, where customers are influenced by factors such as brand. From this we can observe that loyalty programs such as Tesco Clubcard can be considered an incentivized type of loyalty, which can be exhibited by customers, but the strength of this loyalty is often questioned. â€Å"As organizations become increasingly customer focused and driven by customer demands, the need to meet the customers expectations and retain their loyalty becomes more critical† (Disney, 1999, p. 491). Customer loyalty is one of the fundamental goals of marketing (Selnes, 1993). Not only does it guarantee repeat customers, but it also decreases the need for companies to spend large portions of their budgets on advertising and promotion in order to attract new customers. Mittal and Lassar (1998) identified that customer loyalty is very often thought of as an outcome of customer satisfaction. This explains why customer satisfaction has become an essential concept in marketing and its quest is one of the most important goals for businesses (Webster, 1994) Relationship Marketing: Relationship marketing is very much interlinked with the notion and practice of customer care. There is no doubt that the development of relationship marketing has had and will continue to have major implications for the marketing managers. Comprehensive accounts of the development, meaning and implications of relationship marketing for the contemporary marketer are given by Lancaster and Massingham. As so often, there are many different views as to the precise nature and hence definition of relationship marketing. So, for example, Groonroos stressed the element of mutual exchange ad trust in relationship marketing as follows. â€Å"Relationship marketing is a process including several parties or actors, the objective of which has to be met. This is done by mutual exchange and fulfillment of promises, a fact that makes trust an important aspect of marketing†. Stone and Woodcock on the other hand put more emphasis on the traditional tool of sales, communication and customer care techniques. Again we see overlap between these two areas. â€Å"Relationship marketing involves the use of a wide range of marketing, sales, communications and customer care techniques and processes to: identify named individual customers, create a relationship between the company and these customers, and manage that relationship to the benefit of both the customer and the company†. Perhaps one of the simplest and yet the most powerful summaries of what relationship marketing is however, is that provided by Buttle. â€Å"At its best, RM (relationship management) is characterized by a genuine concern to meet or exceed the expectations of the customers and to provide excellent service in an environment of trust and commitment to the relationship†. Buttle goes on to indicate what is involved in successful relationship marketing and the commitment of the company required to generate this success. â€Å"To be successful relationship marketers, companies must develop a supportive organizational culture, market the RM idea internally, intimately understand customers expectations, create and maintain a detailed customer database, and organize and reward employees in such a way that the objective of RM, customer retention, is achieved†. This illustrates that relationship marketing has major implications for both how we think about marketing and our approach to the practice of marketing. It affects and includes the provision of marketing information, organizational systems and procedures, and the elements of marketing strategy. Relationship Marketing refers to Promotional and needs and maintain the relationship. This proposal is concerned with Relationship management and marketing at how it is been used by companies to maintain existing customers, retain lost customers and attract new customers. (http://www.businessdictionary.com/definition/relationship-marketing.html) Relationship marketing is systems-oriented, yet it includes managerial aspects. A systems approach is well suited as a basis for a general theory of marketing, because it makes it possible to include all relevant actors, environmental influence, and even the process nature of marketing. (Kuhn, T.S. (1957) The concept of relationship marketing has emerged within the fields of service marketing and industrial marketing. The phenomenon described by this concept is strongly supported by ongoing trends in modern business. Grà ¶nroos defines relationship marketing in the following way: Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises. Such relationships are usually but not necessarily always long-term. Establishing a relationship, for example with a customer, can be divided into two parts: to attract the customer and to build the relationship with that customer so that the economic goals of that relationship are achieved. (Grà ¶nroos, C. (1990) More businesses are moving toward relationship marketing in dealing with their customers as more customers expect a personalized experience. Considering relationship marketing vs. transactional marketing for http://searchcrm.techtarget.com/generic/0,295582,sid11_gci1253633_mem1,00.html) Relationship marketing is a marketing strategy that emphasizes customer loyalty, customer retention and long-term customer engagement. Using the relationship marketing approach, an organization aims to develop strong, long-term connections with customers by providing them with information directly suited to their needs and interests. This approach often results in increased word-of-mouth activity, long-term purchasing behavior and a willingness to provide information. The goal of every enterprise, once you strip away all the activities that keep everybody busy every day, is simply to get, keep, and grow customers. Whether a business focuses its efforts on product innovation, operational efficiency and low price, or customer intimacy, for that firm must have customers or the enterprise isnt a business—its a hobby. This is true for nonprofits (where the â€Å"customers† may be donors or volunteers) as well as for-profits, for firms large and small, for public as well as private enterprise. What does it mean for an enterprise to focus on its customers as the key to competitive advantage? Obviously, it does not mean giving up the product edge, or the operational efficiencies, that have been successful in the past. It does mean using new strategies, nearly always requiring new technologies, to focus on growing the value of the company by deliberately and strategically growing the value of the customer base. Companies needed to build compr ehensive customer databases. Companies had been maintaining product databases, sales force databases, and dealer databases. Now they needed to build, maintain, mine, and manage a customer database that could be used by company personnel in sales, marketing, credit, accounting, and other company functions. As customer database marketing grew, several different names came to describe it, including individualized marketing, customer intimacy, technology enabled marketing, dialogue marketing, interactive marketing, permission marketing, and one-to-one marketing. Modern technology makes it possible for enterprises to learn more about individual customers, remember those needs, and shape the companys offerings, services, messages and interactions to each valued customer. The new technologies make mass-customization (otherwise an oxymoron) possible. At the same time, technology is only a partial factor in helping companies do genuine one-to-one marketing. The following quotes about custome r relationship management (CRM) make this point vividly: â€Å"CRM is not a software package. Its not a database. Its not a call center or a Web site. Its not a loyalty program, a customer service program, a customer acquisition program or a win-back program. CRM is an entire philosophy.† (Steve Silver) â€Å"A CRM program is typically 45 percent dependent on the right executive leadership, 40 percent on project management implementation and 15 percent on technology.† (Edmund Thompson, Gartner Group) (Peppers .D, Rogers. M 2004) Loyalty Card: Any retailer running a loyalty card scheme could call up customer details and purchase history from incoming phone numbers. In many firms, loyalty cards are used for direct marketing and not much else. Using them to dramatically improve customer service seems a fitting reward for loyalty. Marketing program designed to enhance brand loyalty by cultivating an ongoing relationship between a marketer and his customer. Successful loyalty programs encourage the consumer to buy frequently, to increase the amount spent each time, and to concentrate all or most of their related purchases on that brand. Most loyalty programs offer perks for membership in a club or program and reward purchases. Rewards may be based on the dollar value of purchases made or on the frequency of purchases. The most well-known loyalty programs are airline frequent-flyer programs that offer discounts against future travel called award miles. Most large supermarket chains now have frequent-buyer clubs that offer no-coupon discounts as well as newsletters and http://www.answers.com/topic/loyalty-program) A loyalty card program is an incentive plan that allows a retail business to gather data about its customers. Customers are offered product discounts, coupons, points toward merchandise or some other reward in exchange for their voluntary participation in the program. A secondary goal of a loyalty card program is to build repeat business by offering participating customers something that isnt available to non-participating customers. Loyalty cards often resemble plastic credit cards but they can also be keychain fobs or stickers. Typically a loyalty card has a barcode or magnetic stripe thats scanned at the point of sale (POS). The card identifies the customer and sends information about what the customer bought to a database. The information in the database is used to help the retailer understand and influence his customers buying habits. According to research carried out by Boston Universitys College of Communication, eighty-six percent of American shoppers are listed in a loyalty database; a majority of survey respondents said receiving the card was worth giving up some measure of privacy. Loyalty schemes are necessary for the retailers because it helps them in attracting the customers and when they came to them they try to retain them by offering their services on discounted rates and by offering them further discounts and services. Smith states the importance of loyalty cards and schemes in the following sta tement â€Å"if

Effect of Military Takeover on Thailands Businesses

Effect of Military Takeover on Thailands Businesses HOW MILITARY TAKE OVER IN THAILAND WILL AFFECT DOING BUSINESS IN THE COUNTRY RISHI RAJ [DM15141] ROHIT KUMAR GOEL [DM15142] GLIMPSE OF POLITICAL FORMATION Thailand, was known as Siam till 1939, for around 5,000 years it had been inhabited with the earliest civilization believed to be that of the Mons in central Siam, even though the first Siam state is the Theravada Buddhist kingdom of Sukohthai. Among the most glorious periods in its history was the reign of Ayutthaya, which was established in 1351 by King Ramathibodi. During that time it was one of the centers of trade and commerce in Southeast Asia, Ayutthaya allure the disdain of the Burmese, and they conquered the kingdom twice in the 16thand 18thcenturies. During the second invasion, the capital of Siam was looted, laid to waste, and left in demolishes, a pale phantom of its aged glory. Thailand has one of the oldest existing monarchies, and in 1782 by King Rama I the current Chakri dynasty was founded with the capital shifting for the first time to Bangkok. During the 20thcentury saw the dawn of immense change in Thailand. King Mongkut (Rama IV) was instrumental in developing a strategy that enabled them to avoid the yoke of imperialism that overtook Laos, Cambodia and Vietnam –Siam’s closest neighbors. The King’s strategy was simple: his ministers signed unequal treaties that gave free trade, additional rights, and special advantages to imperial powers liketheU.S., Great Britain, Japan and France. The consequence was that by playing each one of these powers to one another, Siam figured to maintain its independence. A peaceful coup revolved the country into a constitutional monarchy in 1932, as earlier Siam now known as Thailand in 1939. Controversially, During World War II Thailand sided with Japan. The period following the war was a chaotic one for Thailand as it battled a number of military coups even as dissatisfaction rose against inexperienced public officials, food shortages and rising inflation. The democratic elections of 1979 had its first period of stability, as the economy sturdy with the crumble of military rule. The country was rocked by several coups over the next two decades before violent demonstrations in February 1991 forced the military to relinquish power to a civilian government led by Chuan Leekpai, leader of the Prachatipat (Democrat) Party. He is credited with starting the methodology of making a totally new constitution, and initiated a few changes that led to Thailand having one of the highest growth rates during this period. At the turn of the 20thcentury, a relatively unknown party called the Thai Rak Thai Party (TRT) led by the charismatic Thaksin Shinawatra came to power on the promise of economic reforms. Thaksin delivered on his promises but was unyielding by allegations of mass corruption. Then the tsunami that hit Southeast Asia in December 2004 affected Thailand too, it caused nearly 5,000 deaths, and eroded a major source of its revenue which came from tourism. General Sonthi Boonyaratkalin led a bloodless coup in 2006, overthrow the unpopular Thaksin and leading to fresh elections in December 2007. A new party called the People’s Power Party, consisting large members of the disintegrated TRT, won the majority number of seats under the leadership of Samak Sundaravej, came into power in February 2008 and lead 6 party coalition. And then was replaced by Somchai Wongsawat as Sundaravej had violated the constitution by hosting a television cooking show and had to step down. The People’s Alliance for Democracy (PAD) stated that both Sundaravej and Wongsawat were puppets of Thaksin. There were repeated protests held in Bangkok since May 2008 and five months long protests considerably weakened the government’s ability to implement policy. Matters came to a head when the PAD overtook the Bangkok International Airport in November, leaving around 350,000 travelers unattended which resulted in a good loss of tourism revenue and wielded a body blow to the country’s image. Eventually, opposition leader Abhisit Vejjajiva of Democrat Party become Thailand’s t hird prime minister within four months duration. Thailand’s GDP Growth Rate, over the last few years CONTEXT The financial crisis that broke off in Thailand in 1997 has not only brought on the need to understand the immediate genesis and possible cures of the crisis, but also a more fundamental question as to what had gone wrong with the growth process leading to the crisis or due to some of the subtle imbalances in macroeconomic management, or was it inadequate technological advancements in the right directions? Could it be flaws in the design and operation of some of the political/economic/social systems or institutions, furnishing the whole economic system vulnerable to major economic shocks? Final answers to the above questions are difficult to obtained, or agreed upon. However, one can begin to pursue the answers by first trying to understand the historical aspects of the growth process of Thai economy. The probability of getting the right answers can also be enhanced substantially by comparing its experiences with those Asian economies that have gone through the similar path of growth and crisis, and also with those that were much less hit by the crisis. Studies on sources of economic growth of East and South East Asian countries are numerous. On the more recent account, Hahn and Kim (2000) argue that macroeconomic policies, trade policies and, especially, institutional quality, are important in ‘explaining’ East Asian high economic growth during 1960-1990†. The purpose is to look into accounts of the past fifty years, from 1950-2000, of changes in policies and environments in Thailand that are potentially crucial to the understanding of the growth process. The Thai economic history is divided into four sub-periods for the same: I) 1950-1973, which is the period that Thailand laid foundations for the subsequent high and stable economic growth. II) 1974-1985, which is the period of macroeconomic uncertainty, hardship and difficult adjustments. III) 1986-1996, which is the decade of extraordinary high growth. IV) 1997-2000, which is time of economic crisis. FRAMEWORK: THE MILITARY RULE GDP is now growing, albeit slowly. Military rule has its benefits as new policies look to be moving Thailand in the right direction. At the beginning of this year, THD hinged, and has since been on a steady rise and the ETF is up 31.51% YTD. Driving this growth is an economy that continues to grow, ignoring political turmoil. The economy has reversed course and is now growing. In a recent Wall Street Journal it reported that Thailands gross domestic product from April through June likely grew 1% over the previous period. Consumer confidence is skyrocketingas the government pushes a campaign to return to happiness. Thailand may be happy with their military ruling, but elections in the future are likely to upset many. TheThai baht is risingto its highest levels since November. Weak monsoon rains in India have allowed Thailand toreclaim its status as the worlds top rice exporter, hopefully enabling the country to offload rice purchased in preceding years through government subsidy programs. Military rule has its merits. Manygrey industries are under attack from the military government, who has declared a ‘War on Vice’. Reasons for this crackdown may be political, but the results should be commendable. Six weeks ago, Thai army Chief Prayuth Chan-ochaannounced a military gained control of power. The constitution was left aside, and leaving the monarchy in place. Army soon re-examine, though, and kept much of the 2007 constitution. This also included sections handling with the succession of the monarchy. This was 14th successful coup after 1932’s absolute monarchy end. The bloodless coup followed months of mass protests andchaos in governmentbefore Yingluck Shinawatra wasforced to resignas PM. This was provoked bygovernment last November attemptsto restore a fully elected senate and extend an amnesty that would have enabled convicted former Prime Minister Thaksin Shinawatra to return from exile eight years after being deposed. It has been reported that in effect the military takeover was executed on behalf of the royal network or old elite. Journalist Andrew Mac Gregor Marshalldepicts an enormous struggle over access to the tremendous wealth controlled by the palace, specially by the Crown Property Bureau, between the old world class and that hosts underpinned Thaksins Pheu Thai gathering and exploited its general population supporters. The key to such access, is control of the royal succession and control over the national assembly. People’s Democratic Reform Committee lead by Suthep Thaugsuban, who also headed the protests, isbelieved to have been plotting with Prayuth since 2010 to bring down the Thaksin regime. 4. THE IMPACT OF MILITARY RULE Since the takeover, the army has invited critical journalists, protestors, supporters and academics of the last government, with members of the red shirt movement – as well as some PDRC leaders. With prohibiting habeas corpus and the customary civil rights, the regime hasdetained people who publicly opposeits exercises. Several local TV and radio stations are off the air. The army is rumored to be planning severe control of the internet. It was reported from Bangkok post that panels taken from the armed services and others will watch all media. The citizenry has been muted in its reactions to the coup. The red shirts have back down from the streets of Bangkok and even indicated some willingness to participate in the army’s reconciliation games. Authorities banned the three-finger sign that was adopted as a sign of disagreement. Occasional rumpus have occurred between soldiers and the few citizens flout the ban. Citizens are promoted to give photos to the junta of persons who do so. The army has acted quickly to give rice farmers their belated payment for the last yielded crop. Civil servants can be heard praising the fact that projects are running again after enormous delays under the previous government. The army claims it is checking large projects for corruption and malfeasance. A three-finger salute showing disagreeing against military rule To keep the public happy, the army is to review fuel and energy prices. During the World Cup, authoritiesurgedall matches be screened free to air and agreed to compensate the cable network owners of the broadcast rights. The military takeover caused an enormous efflux of Cambodians working illicitly in Thailand. The army very soon sought to silent the fears and promote the return of the workers to the multitude of enterprises that have come to rely on them, as long as they get visas and work permits . 5. THE COUP AND THE NATIONAL DIVIDE Young people migrating to Bangkok from Thailand’s north and north-east are not as committed to the red-shirt movement or as likely to be enlisted into a Thaksinist party as their parents were over the last two decades. The emphasis was on getting good jobs and career opportunities on the back of improved rural education. Likewise, Bangkok’s middle class of business owners, professionals and civil servants are primarily committed to high incomes and stylish consumption. One can argue, both groups wanted corruption to end and the old order of entitlements and to get on with effective economic management and social justice, as long as someone else goes to the trouble. With the current scenario, the coup can appear as a required straightening out in advance of restoration of parliamentary democracy, which itself is seen as being as much about protectingrelations with the USas anything else. The army claims to be capable of reconciling red shirts and supporters of the previous government and PDRC. There is uncertainty in what it proposes to do. Some moves have inferred charges of army bias while others have raised wry smiles. The army believes it can appoint 200 members from all important sections of the community to a new national assembly who will be willing to settle. The last coup was only eight years before, the new constitution, subsequent constitutional assembly, and restoration of parliamentary democracy. Regardless of all that exertion, important structures have not changed. A new national assembly won’t change these foundations which would require steps such as effectively redistributing income through reform of the land tax, directing more resources to education and health care in rural and suburban areas; providing social security to the poor; securing farmland by better land-use regulation; and using government initiatives and resources to realize opportunities created by a newASEAN Economic Community. The trafficking and misuse of illegal migrants can’t be allowed in order to provide a dishonorable floor to incomes of Thais throughout the country. STRATEGY CONTEXT Export led economy Major exports are electronics, vehicles, machinery and equipment and agri products Main Trading Partners Japan (10% of total exports, 20% of total imports), China (12% of exports, 15% of imports). European Union, US Malaysia Focus on increasing trade between its neighbors through bi lateral agreements Free enterprise economy with pro investment policies and strong export industries Trying to stabilize growth by promoting domestic consumption and public investment Founding members of WTO and ASEAN and also a member of APEC and IMT-GT Current Strategy: Promote industries that have high domestic value-added and can find niches in the world economy Following cluster model in certain Industries such as Automobile and Tourism Redirected its 5yr plan towards a holistic people oriented development model philosophy of a Sufficiency Economy Focus on upgrading educational policy, strengthening agricultural sector, and restructuring the economy with an emphasis on Green Growth Focus on strengthening infrastructure and banking system CONCLUSION: STRENGTHS CHALLENGES Location helps in easy trade and attracts tourists. The fertile land helps in agriculture and these products are exported to many countries. Well-developed infrastructure Diversified, high performance production in agriculture and industry- highly dynamic country. It is moving upmarket in manufactured goods Opening local hub for dynamic neighbours Growing middle class Particularly strong medical industry that is turning into a major foreign exchange earner for the country and a generator of â€Å"medical tourism† The agricultural sector Strong contributor to the economy and a buffer that can absorb surplus labor from urban areas during cyclical downturns. Thailand is far ahead of other ASEAN countries in attracting foreign direct investment into the automotive sector and supporting industries Foreign trade subject to competition from China. Rise of neighbours like Cambodia, Vietnam, Myanmar, Laos, Indonesia and Malaysia Thailand’s Taxation : It’s corporate tax rate of 30 percent is more than that of its neighbours The relative costs of energy, transportation and logistics is very high, linked with global oil prices High hidden costs in the business sector due to corruption of politicians and government officers. Business climate marked by continuous ties among the private sector and politics circles. Recurring political volatility since 2006 A well-functioning legal framework is not secure in place, and the judiciary continues to be unprotected to political interference Worst income inequality in Asia Susceptible to short-run volatilities in world trade and output Education system is unable to prepare graduates suitable for the labour market DISCUSSION: LOGISTICS PERFORMANCE INDEX Productivity of customs clearance of Thailand is 2.96 ranking 42 globally. Efficiency of customs clearance of Thailand is similar to that of Slovenia, Cyprus, Croatia, Uruguay, Bulgaria, , Georgia, Slovak Republic, Pakistan, Uganda Czech Republic with a respective Logistics performance index Efficiency of customs clearance had a negative growth (decline) of 1.99% since the end of the Great Recession Quality of trade and transport of Thailand is 3.08 ranking 43 globally. Quality of trade and transport of Thailand is similar to that of Morocco, Poland, Malta, Bahrain, Egypt, Brazil, Hungary, Mexico, Slovak Republic Cyprus, with a corresponding Logistics performance index Quality of trade and transport had a negative growth (decline) of 2.53% since the end of the Great Recession Frequency with which shipments reach consignee within scheduled or expected time of Thailand is 3.63 ranking 39 globally. DISCUSSION: FDI FII Thailands financial liberalization in 1990. moderate recuperation after the 1997 crisis, FDIs part got to be considerably more vital in helping re-capitalizing failing industries, assisted with policy reforms Thaiboard of Investment(BOI) offers an arrangement of motivators in six modern sectors. (Agriculture and food; Renewable and alternative energies; Electronics, information and communication technologies; Fashion; Automobile High added value services) As per TNCs top prospective most recent Survey, Thailand is ranked among the Top 10 prospective host economies for foreign investments. BOI Incorporates exemptions on corporate income tax (for a maximum of eight years), and import tariffs on equipment, machinery and raw materials. From 2006 to 2009 Thailand saw the highest and the lowest FDI contribution to GDP. In 2006 it was 16.2% while in till 2009 because of crisis it was reduced to the lowest of mere 5% of GDP. Thailands political crisis likewise assumes a vital part in affecting sharp falls of FDI inflows from 2006 onwards. our observation is that, of course, the normal FDI to GDP degree of the industrial sector is the most noteworthy (1.37 percent), took after by FDI to GDP proportion of the service segment (0.25 percent). and Agriculture FDI to GDP proportion is just 0.01 percent. Thus for an agricultural Economy to be a continuously growing should be more focused on the agricultural FDI. The Major Drive for Foreign Investment is The low cost of labor and relatively low exchange rate REFERENCES www.businessinsideer.in www.thatembassy.ca South China Morning Post Articles www.tradingeconomics.com Past, Present Prospects for Thailand’s Growth, Sra Don, Bank of Thailand

Comparing The Corner Residents and Dostoevsky’s Underground Man Essay

Comparing The Corner Residents and Dostoevsky’s Underground Man      Ã‚  Ã‚   I am a sick man.... I am an angry man. I am an unattractive man. [...] I don't understand the least thing about my illness, and I don't know for certain what part of me is affected. I am not having any treatment for it, and never have had, although I have a great respect for medicine and for doctors. [...] No, I refuse treatment out of spite. (Dostoevsky 1864: 17)    Fyodor Dostoevsky wrote these words around 1864 to describe the mental state of a hyperconscious retired bureaucrat whose excessive analysis and inability to act separate him from the mainstream of the society in which he lived. Dostoevsky's underground man, as he termed his character, is characterized by alienation, spite, and isolation. Dostoevsky presents the life of his character as a testimonial to the possibility of living counter to an individual's own best interests.    Frequently, the public debate over the those problems which occur in poverty-ridden urban environments is presented as if the inhabitants were copies of Dostoevsky's underground man who differed mainly in that they frequently had less education and more pigment in their skin. That is to say, although there are valid comparisons that can be drawn between the Underground Man and the inhabitants of west Baltimore who are so vividly depicted in The Corner, there are also important differences that make any claim of strict equality between a Russian intellectual from the nineteenth century and a 20th-century tout or slinger an absurd caricature. Moreover, the intent of portraying inner-city residents as Underground Men and Women is, frequently, to blame these people for all of their own problems, something t... ...and we may be in for another string of disappointing years in the War on Poverty and the War on Drugs.    Works Cited and Consulted: Dostoevsky, Fyodor. (1864) Notes from Underground. Trans. Jessie Coulson. Middlesex, England: Penguin Books. Hacker, Andrew. (1998) Two Nations: Black and White, Separate, Hostile, Unequal. In Reading Between the Lines: Toward an Understanding of Current Social Problems. Ed Amanda Konradi and Martha Schmidt. London: Mayfield Publishing Company. Simon, David & Burns, Edward. (1993) The Corner: A Year in the Life of an Inner-City Neighborhood. New York: Broadway Books. Wilson, William Julius. (1998) "Ghetto-Related Behavior and the Structure of Opportunity" in Reading Between the Lines: Toward an Understanding of Current Social Problems. Ed Amanda Konradi and Martha Schmidt. London: Mayfield Publishing Company.

Richard Scrushy and HealthSouth Essay -- Business Analysis

Introduction HealthSouth is one of the nation’s largest healthcare providers specializing in rehabilitation. HealthSouth was founded by Richard M. Scrushy in 1984 and went public in 1986. Scrushy served as its Chairman of the Board from 1994 to 2002. The company was incorporated in January 1984 as Amcare Inc. before its name was changed to HealthSouth Rehabilitation Corporation in May 1985. In January of 2003, Mr. Scrushy reassumed the position of CEO. HealthSouth grew rapidly during the 1980’s and 1990’s. This growth was largely due to acquisitions. HealthSouth owned more than 330 hospitals worldwide. It was also during this time that Scrushy became known as one of the highest paid CEOs in the United States. The HealthSouth business model stresses four basic steps from diagnosis to rehabilitation and this model served as its mark of distinction among other healthcare providers (Jennings, 2012, p. 183). From 1987 through 1997 HealthSouth’s stock rose 31 percent per year and Mr. Scrushy told analysts that HealthSouth had matched or exceeded earnings for forty-seven quarters in a row (Jennings, 2012, p. 183-184). Problems at HealthSouth were being uncovered in 2002. In early 2002, Scrushy sold over $75 million dollars worth of stock and an additional $25 million back to HealthSouth. It was also disclosed in August of 2002 that a new Medicare payment policy would greatly lower reimbursements and consequently the stock would lose more than half of its value. Shareholder lawsuits were filed alleging that Scrushy acted on insider information when selling his shares of stock earlier in the year. Most of Scrushy’s alleged misconduct occurred prior to the enactment of Sarbanes-Oxley (SOX). To sum... ....proquest.com/docview/216236868?accountid=28180 Lublin, J. S., & Carrns, A. (2003, April 11). Directors had lucrative links at HealthSouth. Wall Street Journal. p. B1. Retrieved from: http://search.proquest.com.proxy1.ncu.edu/docview/398944990?accountid=28180 Mokhiber, R. (2003). Ill feelings at HealthSouth. Multinational Monitor, 24(11), 7-8. Retrieved from: http://search.proquest.com/docview/208878914?accountid=28180 Solieri, S., Felo, A. & Hodowanitz, J. (2008). Richard Scrushy - The rise and fall of the king of healthcare. p. 337-353. Retrieved from: http://www.soliericpas.com/attachments/2008MarRichardScrushy-TheRise&FalloftheKingofHealthcare.pdf Weld, L. G., Bergevin, P. M., & Magrath, L. (2004). Anatomy of a financial fraud. The CPA Journal, 74(10), 44-49. Retrieved from: http://search.proquest.com/docview/212312866?accountid=28180

Sociology Is The Study Of Individuals In Groups

In this essay three perspectives will be assessed. How society operates in the view of these perspectives. Also, scrutinizing theories on the subject ‘crime and deviance' aiming to outline how each perspective grasps the matter. Before one can observe society, one needs to take into account the ways in which it can be viewed. Perspectives that focus on social systems, are known as macro perspectives. Alternatively, the micro perspective, focuses on social action of the individual. (Taylor et al, 1995). One of The first major perspectives examining society is Functionalism. Functionalism begins with the observation that behavior in society is structured†. Harmless and Holbrook, 1 980, p. 14). They argue that Functional prerequisites such as hospitals, schools and families among many more, bind society together. In a functionalist society these integrate with one another to form a value consensus. Furthermore, it is essential they interrelate at a basic level for society to survive. (Harmless and Holbrook, 1980). Therefore, society is maintained by the value consensus and its cohesion of working parts.Mile Druthers founder of functionalism, observed societies values and norms portraying them as social order. Laws establish with the value consensus. He developed his argument by saying crime is an inevitable and normal way of social life. (Harmless and Holbrook, 1980). He added to this he states that social change begins with some sort of deviance, just enough deviance benefits society and keeps it healthy; it reinforces right and wrong in societies collective conscience. However too much on the other hand would cause a state enormousness described as anomie.For example, Morton (1968, cited in Harmless and Holbrook, 1 980) states since members of society are placed differently, such as social class, simultaneously having different collective enticements, too much imbalance; not enough prosperity and not enough opportunities, would cause an anomic state. As a consequence leading to a break down of societies values and norms. Rioting in such a case would be anomic state or the uprising of a government. Functionalism has declined as modern theories better explain society. Functional macro sociological analysis disregards small areas of society.Also, damaging criticisms arose with the ideas of human beings as products of the social system. (Taylor et al, 1995). Another macro perspective on society is Marxism. Named after Karl Marx a German sociologist. E described a theory of observing society that offered a radical alternative to functionalism and the nature of social stratification. (Harmless and Holbrook, 1980). Marx examined how society works and explained how history has unfolded paying close attention to capitalism. Marx was troubled with the effects of capitalism and was very concerned to get rid of it. Trainer, 2010). Marx suggested that society is in conflict. He observed western society was split in two. He argued that the r uling class, who had the means of production, the bourgeoisie; exploited the subject class, the proletariat. (Harmless and Holbrook, 1980). Furthermore, â€Å"Marx said history is basically about the struggle between classes for dominance† (Trainer, 2010, p. 1). The ruling class ideology in Mar's argument, only benefited the bourgeoisie; the distortion of reality, falsifying society binding members together with a false consciousness.Thus, helping to maintain the superstructure in the aid of the ruling class. When observing Mar's theory behind crime and deviance, one understands no value consensus express laws comparable to functionalism. Mar's argues that laws are passed by state government, reflecting the interests of ruling class ideology, rather an authoritarian consensus. As follows a false commitment is shared by society as a whole considering laws only benefit the ruling minority. (Harmless and Holbrook, 1980). A classic case study portraying this argument is Stuart Ha ll's ‘policing the crisis'.Hall raises the argument of ‘mugging; a new term from America that was used by the media to label an attempted robbery, murder scene in 1972 In Britain. He argued the term is now affixed to any type of crime particularly applied at black youth. From that point onwards it becomes symptomatic Of a ‘moral panic'. (Hall et al, 1978). Furthermore, Halls statistics show the term ‘mugging' appearing 60 times in newspapers the following year. (Hall et al, 1978) It can be said that the media's moral panics, run by the ideology of the ruling class, camouflaged the economic crisis that emerged during the sass's.Subsequently, the moral panics allowed the state to enforce policing methods legitimizing random stops targeting black youths. Thus, more control over the subject class. Social action theories offer a drastic alternative view on society to the above. Interpretative perspective emphasis is on individuals action, rather than the determini stic approach structured by social systems, social action focuses on small scale interaction. (Taylor et alarm 1995). The focus is on individual actions that are constructed by society through meaning and interpretations.For instance a newly wed husband and wife will understand the role a whole lot better by understanding the meaning of the term. (Harmless and Holbrook, 1980) For Max Weber, founder of social action theory believed these meanings were attached to a social actions carried out by an individual. He expanded on his theory by stating self concepts are a result of interpretations there described them as. Individuals are more likely to carry out a behavior after being perceived in a particular way. (Harmless and Holbrook, 1980).Furthermore, Interactions defines the construction of meaning through analysis. It can be said that language, gestures and appearance will govern the interpretation of the context the actions uphold. It can be said that individuals depends on symboli c symbols to define and understand meanings in society through relating, interpreting and making sense. (Taylor et al, 1995). Howard Becker, applied labeling theory in his attempt to define crime and evince to social action. His argument consisted of deviant behavior, only existing when perceived and defined as such.JP until it has been labeled by a member of society there was no deviance. The deviant is one to whom the label has successfully been applied; deviant behavior is behavior that people so label. † Becker (1 963, cited in Harmless and Holbrook, 1980, p. 346). Becker develops his argument stressing the importance of the public identification of a deviant. As stated above, self concepts can change individuals to the label applied, in this case, accepting the deviant label may in urn, cause the individual to commit more deviance. However Becker states this theory may not be inevitable. Harmless and Holbrook, 1980). A criticism with interactions approach is the labeling term for deviance is too deterministic. Having been founded primarily on ideas based on free will through social individual action; the person labeled with the term deviant, will be expected to commit further deviant activities. (Harmless and Holbrook, 1980). However, Becker does reject this barrage of criticisms and goes on to defend his theory by saying labeling theory has been misunderstood and unfairly criticized. Harmless and Holbrook, 1980).Throughout the three perspectives it can be said that there are differences describing theories of crime and deviance. For instance, The Marxist view is directed through the course of history at the ruling class ideology. The manufacturing of crimes sees the subject class targeted and deemed deviant. In recent years Neo Marxist theories have developed a better understanding. The Hegemonic society as original Marxist views first stated have changed and a middle class has now emerged. It appears that although functionalism argues that crime i s inevitable by all, it takes the same route of determinism hat Marxism does.Social systems directing the course of society. Many have debated the nature of free will and these structural perspectives will suffer heavy criticisms. Adding to this, disregarding qualitative research missing out small subject areas of society will as a result, only provide a narrow based analysis. Social action theory however, grasps the idea Of crime and deviance better than the latter two. When specifically discussing crime and deviance, qualitative research better explains individuals actions rather than attaching to a system.

Nutrition and Body Essay

All macromolecules are essential to the body. One has to have the right amount of all of the macromolecules in order to be healthy. It is believed that high protein diets with carbohydrate restriction causes weight loss. However as a result of high protein diet, one damages his/her kidney which is responsible for filtering proteins from blood. In the article, Janine says, â€Å"If you eat too much proteins and not enough carbs you can ruin your kidneys forever.† I agree with Janine, one has to have enough carbohydrates. Carbohydrates are important in the body as they provide energy for short term storage. However if one does not have enough carbohydrates in his/her diet, it affects the brain. Glucose from carbs is the fuel that brain uses to produce energy that moves and motivates one therefore one has to have glucose in the body. Mitchell has this misunderstanding about carbs and fat. Mitchell thinks that if one cuts down on carbs, he/she is actually training the body to burn fat instead. Fats and carbohydrates are two different things. If one is gaining weight, that’s because of calories. The amount of calories one takes causes obesity. Obesity is linked with poor body image. A positive body image is maintained by eating foods that contain fewer calories in it. A person’s weight is affected by genetic inheritance, nutrition and physical activity. Perceived body size is affected by media, puberty, and peer groups. All these factors affect body weight and perceived body size. Metabolism refers to all chemical processes that go on continuously inside the body. The amount of kilojoules your body burns at any given time is affected by your metabolism. Thyroid gland located below the larynx produces thyroid hormone which controls metabolism, growth, body temperature, muscle strength and appetite. Homeostasis is the process used by the body to maintain a stable internal environment. Hormonal regulation of metabolism such as when blood sugar levels rise in the body, insulin is secreted by the pancreas to covert glucose into glycogen, and when sugar levels in blood fall, glucagon is secreted by the pancreas to convert glycogen into glucose. If people have high blood sugar, they get diabetes. If people have low blood sugars, they get headaches, hunger, pale skin etc. Maintaining a normal blood sugar level is very important in the body. In the article, Mitchell says, â€Å"I get pretty hungry and I was getting headaches.† I think it’s because of having low blood sugar level. Mitchell has high  insulin and less glucagon hormone in the body. The advice I would give to Mitchell is to stop dieting and eat healthy foods that contain fewer calories. Mitchell needs to have physical exercises, healthy foods and self-concept.