Strategies for VUCA business model

Discuss about the Organisational Culture And Commitment In Employee.

Operating in the VUCA business model requires the management to deal straightforward with propositions regarding hiring employees and observing how exponential models have flourished in the VUCA context.

The company should resort to the policy of Light Foot-printing. The company was itself born of a VUCA model. In order to avoid payment of late fees to Blockbuster Reed Hastings founded the company. Since the company deals with digitalisation and big data handling, I suppose Netflix should focus on a model of extreme agility (Anitha & Begum, 2016). They should respond to any business change and b able to orient them with any change in the macro environment. Besides, I suggest openness of business operations is a complimentary policy.

The business environment in a VUCA world is very conservative. As such, it is necessary to foster strong relationships with various local companies or clients and public services (Calhoun, O’Neill & Douglas, 2018).

The company should focus on context agility and stakeholder agility. Netflix should incorporate content in their web series that speaks of the positives of the VUCA world. Local distribution channels have to be given great value in order to generate value for them (Deery & Jago, 2015)

My Response

The ten core values are key to the successful organizational culture at Zappos.  The hiring process and the job training facility and process is very essential for the success of the organisation.

Introduction

The specific management strategies of Zappos make their workplace sensible and the work regime filled with fun (Diefenbach & Deelmann, 2016). In my opinion, the team recognition process during the hiring process is their first step towards employee management.

The arrangement fir meeting with employees of the company and the department meeting makes the workplace interesting. The best thing about the organisation is that they put much importance in the hiring process (Faloye, 2014). Other than that, the weird culture of offering money for leaving the company is interesting. I suppose that receiving opinion from the employees regarding how to develop the Zappos culture is an interesting part of their work culture.

I appreciate the merger move of the company to team up with Amazon. This would further enhance their business possibilities owing to their online sales strategy and viral marketing process. However, I suppose that they keep expanding their IT infrastructure (Freeman, 2017). The adaptation of mobile is good move that the company have taken. However they would have to find application of the mobile in more significant business operations.

Zappos organizational culture

The high rise in labour turnover rate and difficulties in retaining employees are an issue faced by many exponents of the hotel sector. The case study deals with the challenges that the manager of the Sandbanks Hotel faced in context of staff retention and customer satisfaction in the hotel (Guchait, Pa?amehmeto?lu, & Dawson, 2014).

Famous hospitality groups use the strategy of inner stakeholder dialogue to enhance their target market and also introduce new product and renewed services in the company. This project has the potential to facilitate exchange of knowledge among tourist related businesses, policy makers along with tourism focused academics. The project was named Destination Feel-good.   

Under the implementation process of this project, cafes were opened and a network in order to share ideas of best and innovative practices had been established. This is aimed to foster a co-creation of destination as well as wellbeing products. Besides, the case study also implement an understanding of the characteristics of wellbeing of tourism employees (Kalia, Kaur & Singh, 2018). This is being done by debating the ideas of the pioneers of the tourism businesses.

The Hotel, Sandbanks, is a hospitality group owned by the FJB hotels. The hotel situated in the Poole Dorset, primarily provides a seaside destination to the families. It incorporates facilities like water sports, within and outside on the beach (Killett et al. 2016). The Hotel also provides for conference bookings and wedding ceremonies, all throughout the year.

One of the best prospects of the Ideas cafes has been the ability of the University along with other stakeholders, for instance local authorities to interconnect with business communities in order to create and inspire some innovative ideas that might ensure wellbeing of both the employees and the guests of the hotel. One of the discussions that took place in association with the HR manager of the hotel (Kochukalam & Joseph, 2015). The manager organised an informal conversation between the various participants of the Destination Feel Good team. The discussion centred on evaluation of the success of the measure that the hotel authorities had implemented in lieu of the employees’ perspective.

The staff members highlighted particular areas which might prove to be useful in encouraging the employees and ensure their retention. The first issue that was identified was the necessity to make the work shifts and working patterns flexible for the employees. Besides the management also needed to be more pro-active regarding the personal issue that the employees faced inside the workplace (Kurnia et al. 2015). In case of international employees the need to grant longer periods of holidays required to be granted. Besides the employees discussed that they appreciated the mangers’ positive approach in considering emergency situations like medical appointments and granting leaves for the same.

Sandbanks hotel staff retention

The employees also required to work as an integrated unit for ensuring a smoother workflow within the organisational context (Lukic, 2016). This is why the employees asked for granting leave for them to communicate and socialise among themselves so that they could know each other properly.

The employees also acknowledged the policy of internal promotions and appreciated the step taken by the hotel authorities in this regard. Lastly, the discussion also incorporated the context of employee appraisal. The staff acknowledged that the appraisal process fostered their confidence and encouraged them to serve better (Price, 2016). It is essential to mention in this regard that employees’ empowerment and happiness is directly linked to organisational performance in the hospitality business.

Conclusion

Analysing the course of progress and outcome of the project, it can be commented that it provided the opportunity of bringing along stakeholders of various contexts associating the business like local authorities and business communities. Moreover, this project also makes it evident that a positive strategy regarding evaluating the employees’ wellbeing have great influence in fostering employees’ engagement. Moreover, it can also be concluded that collaboration of academic and commercial platforms can help to bring about additional value to the business and also create a new business model based on employee engagement.

The bargaining power that the suppliers have in the ecommerce industry of Australia is low to moderate standard. The customer market in this case is maintained by the ecommerce brands entirely (Robinson et al. 2014). Hence the suppliers have to compulsorily abide by the business rules set by them. In spite of having more than one players in the supplier market in the electronic retail sector of Australia, they are bound by the rules of the marketers. One reason is that the suppliers are getting a huge target market which would have incurred a huge cost to acquire.

The bargaining strength of the buyers is quite high in the electronic retail market. The major reason is that many entrants are operating in the business sector. The customers do not need to pay for switching from one brand to another. However, all the electronic rertail brands are trying to retain their customers. This is an ideal position of market entry, since brand loyalty has not yet been achieved by the peers (Saini & Khurana, 2015). This is why customer acquisition would be easy.

The risk from the substitute products are in two terms. One is that, many of the physical retail brands are opening new electronic store under their own banner. Another is the share of same customer market that the physical market holds. The product sold in electronic market do not have market monopoly. They share their customer with the physical markets. However, this would not create problem for the new entrants. Any participant of the electronic market have to go through this situation.

Electronic retail industry in Australia

The primary reason for rivalry in the industry is due to the maximum number of players in the sector. There is dominance of both local as well as international ecommerce brands in the business. Other than Amazon, Alibaba and EBay other smaller entrants like Coles, Harvey Norman also exist. However, the electronic retail business is in vogue and is still expanding. The market is still far from being saturated. Hence the chances for the new market entrants is still high. Since 2016, major international peers like Costco, Walmart and so on have entered the business context (Zhu, 2015).

The chances of new entrants’ coming to this business sector is low in the country. The major reason behind this are the huge investment that is required behind human resource, marketing and electronic portal set up. However, this is a favourable condition for the entrepreneurs who are ready to enter this business domain. As an outcome, they would enjoy the benefits of limited potential peers.

The major strength of the Australian retail sector is the continuous rise of the consumer spending, which implies that the online retailers have high chance to develop their business within this sector. Other than that, the current position of the Australian Dollar is another factor that attracts various technology vendors to Australia. This would attract entrepreneurs.

The greatest weaknesses in the E-commerce retail sector is the security issues in the web transactions. Since, this is B2B business, thus risk is prevalent in the business. Another potential weakness is the paucity of serious investment form the major investors. The investor’s generally prefer to invest with the potential companies only.

Reference List

Anitha, J., & Begum, F. N. (2016). Role of organisational culture and employee commitment in employee retention. ASBM Journal of Management, 9(1), 17.

Calhoun, J. R., O’Neill, M., & Douglas, A. C. (2018). An Examination of Second Language Education Provision among US and European Hospitality and Tourism Management Schools. Journal of Hospitality & Tourism Education, 1-10.

Deery, M., & Jago, L. (2015). Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), 453-472.

Diefenbach, S., & Deelmann, T. (2016). Organizational Approaches to Answer a VUCA World. In Managing in a VUCA World (pp. 197-208). Springer, Cham.

Faloye, D. O. (2014). The adoption of e-commerce in small businesses: an empirical evidence from retail sector in Nigeria. Journal of Business and Retail Management Research, 8(2).

Freeman, B. (2017). An introduction to India’s skills system to facilitate increased Australia-India bilateral engagement.

Guchait, P., Pa?amehmeto?lu, A., & Dawson, M. (2014). Perceived supervisor and co-worker support for error management: Impact on perceived psychological safety and service recovery performance. International Journal of Hospitality Management, 41, 28-37.

Kalia, P., Kaur, N., & Singh, T. (2018). E-Commerce in India: evolution and revolution of online retail. In Mobile Commerce: Concepts, Methodologies, Tools, and Applications (pp. 736-758). IGI Global.

Killett, A., Burns, D., Kelly, F., Brooker, D., Bowes, A., La Fontaine, J., … & O’NEILL, M. A. R. T. I. N. (2016). Digging deep: how organisational culture affects care home residents’ experiences. Ageing & Society, 36(1), 160-188.

Kochukalam, C., & Joseph, J. (2015). Integrated Self Help Group (I-SHG)-The Potential Maximized Through a Sustainable Social Business Model.

Kurnia, S., Choudrie, J., Mahbubur, R. M., & Alzougool, B. (2015). E-commerce technology adoption: A Malaysian grocery SME retail sector study. Journal of Business Research, 68(9), 1906-1918.

Lukic, R. (2016). Energy efficiency in the food retail. Business Excellence and Management, 6(1), 16-35.

Price, R. (2016). Controlling routine front line service workers: an Australian retail supermarket case. Work, employment and society, 30(6), 915-931.

Robinson, R. N., Kralj, A., Solnet, D. J., Goh, E., & Callan, V. (2014). Thinking job embeddedness not turnover: Towards a better understanding of frontline hotel worker retention. International Journal of Hospitality Management, 36, 101-109.

Saini, A. K., & Khurana, V. K. (2015). Managing Organizational Transformation in the Era of VUCA. SANJAY DIXIT, 69.

Zhu, C. (2015). Organisational culture and technology-enhanced innovation in higher education. Technology, Pedagogy and Education, 24(1), 65-79.