Wednesday, August 28, 2019

Creating value or Customer loyalty Essay Example | Topics and Well Written Essays - 3000 words

Creating value or Customer loyalty - Essay Example Many corporate mission statements set customers as the focus of an organisations business activities, and key thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base. Many corporate mission statements set customers as the focus of an organisation’s business activities, and key thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base. At the other end, some companies are paying performance premiums. These are companies that have failed to realize the strategic importance of their stakeholder management processes. Such companies are victims of their actions as they have unintentionally set up conflicting objectives between engineering, marketing, purchasing and manufacturing that form barriers to good stakeholders management (David and John1993P.1). This paper looks into the various ways through which a company or individual creates value for its customers and stakeholders. The model used in this paper is the stakeholder mapping theory. The paper, will first of all discuss the various expectations of the various stakeholders in a company such as Wal-Mart, and subsequently the paper looks into the various ways through which customers and stakeholder’s expectations could be satisfy by an organisation. The last part of the paper argues that, satisfying stakeholder’s expectation is the beginning of value creation. Defenders of stakeholder theory as the gateway of value creation for customers such as Wal-Mart are benefiting from performance premiums. Other companies that that have failed to realize the strategic importance of their stakeholders management processes are victims of their actions as they have unintentionally set up conflicting objectives between stakeholders

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