3.1 LUFTHANSA The main strategic choice of Lufthansa Group is to keep the cost saving, reducing intermediaries, controlling the air ticketing fees, leasing regional airlines. This can be done by focusing on cost leadership, maintain low debt rating and have a good financial investment stand. By implementing IT CRM, the group strategy is to focus on customer segmentation. High level of profitability is expected with this CRM strategy. The changing customer needs can be accounted to maximizing profit potential and the customers can be easily differentiated.
The theory also proves that there is a relationship between strong corporate culture and organization performance or profits. The observation is that if the organization and its employees share a common culture the environment makes it easier to share common goals and to follow suitable procedures in achieving them. A collective culture also has positive impact on motivation in an
• Employees become more motivated and more productive with their work when they see that their work is benefiting others. • CSR helps ensure Donnellys comply with specific regulatory requirements. • CSR helps Donnellys create good relationships with the local authorities; this makes doing business easier. • Understanding the impact of CSR to the business has helped Donnellys develop new products and
The second alternative is "construct a corporate code of ethics." The advantage of this is that they have to take care of ethics and give something back to the society as a part of the society in any case since corporations are under increasing pressure to contribute to the societies and communities today. CSR can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm, according to the textbook. It will be beneficial for both dealing with the issue and future in the long run by introducing CSR. Moreover, it will help them have a positive effect on their consumers and employees so that Nike will be able to make increased sales and customer loyalty, and retain more staff because being a good company makes it easier to recruit new employees, and employees will be motivated to stay longer which will leads to reducing the costs of recruitment and retraining.
The strategic decision in 1990 to restructure their company and adopt a low cost low fare business model similar to that of South west airlines in Texas has proven to be profitable one both for Ryanair and its passengers. By constantly changing their model, Ryanair has been able to stay ahead of their competitors. Their switch to online booking only, quick turnaround times and expensive access luggage policy helped to revolutionise European air travel. A key strategic decision not to recognise trade unions spared Ryanair the upheaval of industrial unrest experienced by their competitors, E.g Aer Lingus and Air France, increase in productivity and profits. In recent times, Ryanair have introduced a new business strategy to target the business class traveller.
Each company should select issues, which meet its specific business goals. When CSR policies are implemented, the firm must consider to the reason for the CSR implementation, as well as, the opportunity to convey the shared value. Generic social issues might be an important aspect to society which are not affected by either the company’s operations or its long-term competitiveness. However, value chain social impacts are influenced by the company’s activities in the standard procedures of the business. While social dimensions of competitive context are regarded as components in the external environment that influence on the company’s concealed competitiveness; for example, the company’s breakthrough innovative product devoted for the friendly environment can help it attain the competitive edge, which is difficult for others to imitate (Porter & Kramer,
A good and healthy governance structure will create the necessary conditions for strategic decision making that will act as a lever for increasing competitiveness and generating value, thus enhancing the company's attractiveness in the markets. Similarly, it will have the figure of an officer compliance to keep a control over the level of compliance of the organization in line with the main recommendations of international markets and the latest trends in the field. Lastly, best practices in corporate governance point out that in addition to meeting the interests of shareholders, maintaining a permanent and effective dialogue and encouraging their active participation in the decisions of the company, good corporate governance has to respond to the expectations of the rest Of interest groups, such as customers, suppliers and employees, among others. ====== Principles of Corporate Governance of the
The vital purpose of a stakeholder-based approach to management is to set a new direction for the enterprise. The stakeholder-based management approach suggests that relationships amongst the stakeholders can be created and influenced. The stakeholder-based approach is about putting specific names and faces for the stakeholders. There is value in the developing of a comprehension of the stakeholders who are closely related to the business. This level of understanding enables management to create an array of strategies and options that have the support of the many different stakeholders’ participants; and it is only with this support that management can somehow be able to achieve the existence and survival of the firm in the long run.
They interact with the target audience. Corporate social responsibility: Various charitable and social activities are funded by the corporate organisation for publicity and goodwill creation amongst their targeted audience. Communication tools are selected for communication considering its scope to reach its targeted audience. A media should be widely accepted by the audience for its selection as a prioritised media tool. Selection of new media is done in accordance with the nature of message the organisation has to deliver.
(2010) found that work attitude of employees has a positive impact on job satisfaction, which would lead to improved moral and performance in the workplace. Yukl (2010) emphasise that transformational leadership behaviours have motivational effects on employees or team members. According to Yukl (2010), effective leadership style influence team members or employees in three key ways; by influencing employees or