Health Information Exchange

History of HIE

            The road towards initiating the Health Information Exchange has been a long one. There is no specific data on exactly when this system was instituted. This is because initially, there existed similar systems, but had different names altogether. During the 1990’s, there was the adoption of CHIN and CHMIS. These systems did not prevail based on numerous challenges that existed. Challenges came along as result of none corporation between the stakeholders involved. Each individual was more concerned about their interests in the adoption process. Incompatibility in the technologies being used also created a barrier in one way or the other. In 2004, the government tried to draw its support on Regional Health Information Organizations (RHIOs) (Morrissey, 2011). Nevertheless, the network struggled to get funding and favor from the desired individuals. However, things have been different since 2011. Health Information Exchange systems now seemed to make sense than it was previously. There has been intense pressure on health care providers to invest on IT and other related fields. Market forces and technical breakthroughs have been important in this realization.

Challenges

            Establishment of HIE has not come along without challenges. These challenges have different facets based on the area being addressed. Among the challenges is how the information is being exchanged. Based on the systems being used, entities that are willing to use these systems need to be up to date in terms of technology. HIE involves exchanges between different health care facilities. It has also created room for exchanges between the private and the public sector. Such exchanges requires that the relevant stakeholders put in place adequate measures ensuring that information contained does not fall into wrong hands. The greatest challenge that comes into play here is that of financial abilities. Most healthcare facilities based in rural areas do not have means of sustaining such networks. The systems require additional departments which come along with extra costs. Some of these healthcare facilities cannot implement the systems of exchanging this information. Funds provided by the government are not sufficient. Under this category, healthcare facilities that are able to exchange the information are doing while risking the security aspects of the information being relied. Their systems are not up to the task in regards to ensuring security and privacy of the data.

            Another challenge is the security and privacy concerns being raised. Security concerns arise based on the technology being used in relying information from one entity to another. HIPAA devised a security rule that requires every entity to encrypt its data before it is exchanged with another entity. This is because it was as an appropriate and reasonable safeguard. The implementation of the rule took place in 2002. Over the years, implementation has been viewed as an expensive approach (Dalgleish, 2012). As a result, many entities do not encrypt their data while they exchange it. This creates a great challenge in trying to enhance privacy of the health information being exchanged. There is a high possibility of the information getting into undesirable hands. Usage of personal mobile devices such as tablets, USB drive s and smart phones also create a security and privacy concern. Most health care providers make use of their own devices for recording and transmitting unencrypted information. These devices are usually unsecured since they are personal belongings. Speed with which the devices have been adopted with, is far ahead of the policies use to govern their functions (Dalgleish, 2012). Their vulnerability plays a huge role in breaching medical information. Security and privacy concerns also come along with the usage of cloud computing. With the levels of technology available, HIEs find it convenient while exchanging data through cloud servers. Enhancing security measures at this radar is not that easy. This is because the protection on cloud environments is immature.

            Implementation of the system has also brought along its own challenges. Under this scope, lack of corporation has been the greatest stumbling block. Public and private sectors have a problem when it comes to working together. This is based on the motives and drives towards their existence. The largest IDNs in some states are not getting involved with HIE process. This is because they view patients as assets to the organization (Guerra, 2011). They are there to make profits as they ensure health aspects towards their patients. To them, there is no gain by involving themselves in Health Information Exchange. It comes as a loss since they might lose come o their patients easily. Enhancing profitable business prospects is their first priority. This creates a great challenge in the implementation process of the systems. Lack of compatibility in the systems used in most healthcare facilities also bring about the implementation challenge. It may take some to put in place the desired network.

HIE Benefits

            Health Information Exchange has a lot of benefits attached to it. These benefits tend to justify its implementation in light of the underlying challenges and shortcomings. Among the benefits of the system is improved quality of care towards the patients. Improved care emanates from safety measures put in place. Usage of HIE ensures that medical errors are minimized significantly (Dalgleish, 2012). Medical practitioners have access to patients’ records hence are aware of the treatments that they were receiving previously. This ensures that they are not likely to offer other medications that might polarize the situation. It has always been evident that if a patient is subjected to different medications for certain period of time, it might deteriorate the condition. The data available also provides the allergies that a patient have hence aiding in the prescription process.

            HIE also have the benefit of enhancing reduced costs in the healthcare systems. This is because availability of patient information helps in eradicating duplicate procedures, rework and tests (Dalgleish, 2012). This results in savings from both the patient and the healthcare provider. It becomes easier to manage patients that suffer from long-term conditions hence avoiding unplanned admissions, which are expensive. Health Information Exchange also helps in tracking the individuals that get access to the medical information contained in various files. When the access is done and the reason for access should be provided. This helps in ensuring that patients’ information is kept private and can only be accessed by the relevant parties. It eliminates aspects of victimization towards patients exhibiting certain medical conditions.

            HIE stimulates education and involvement of patients in improving their own health conditions. This helps in the recovery process since they get to know what to do and what not to do. It becomes easier to execute this when they have full knowledge of their health conditions. Lack of information on most circumstances results in irrational behaviors. HIE also provides caregivers with support tools when making their decisions. The support tools minimize errors during the decision making process. A poor decision from a practitioner might put a patient’s wellbeing at risk. Using the support tools helps in ascertaining whether a medical practitioner is doing the right thing.  

            Health Information Exchange also eliminates unnecessary paperwork involved with the traditional systems. Safeguarding this paperwork is not an easy task based on its physical location. Sometimes it gets tedious in searching for a patient’s record when the number of files involved is large. Files also have the possibility of being accessed by undesired personnel like the individuals tasked with the responsibility of cleaning areas where they are located. HIE also improves aspects of monitoring and reporting in the public health sector. This is based on the control mechanisms instituted in the system.      

Role of Networks

            Networks involved ensure that the data available serves all the desired parties. Stakeholders involved have different needs with regard to the data being exchanged. For this reason, several measures have been put in place to ensure that all of them access this data without any inconvenience being created. Maintaining security at this level has been paramount in this realization. There is a constant surveillance that ensures individuals access the information have the require authority. This has prompted healthcare facilities to device firewalls that cannot be infringed by third parties. Only a given number of personnel working at these facilities have access to the passwords required access the data exchanged. Encryption of the data also aids in eliminating access since the encryption keys are only availed to the necessary parties. Any details from the account names to the password are kept as a secret. This way there is no conflict between the users of the data since they get to obtain similar information.

            User needs for data exchange on the other hand are met through the provision of standards that help in the exchange process. Among them is the process technical and semantic standard. Semantic standard is devised to preserve the meaning of data as it is being sent from one system to the other. This is achieved by ensuring that similar codes are used and their interpretation is consistent. Technical standards are used in defining the syntax, reliability and structure of the transactions. This ensures that the errors are mitigated and every user obtains the information as it was intended. The process standard on its part tries to define how the data should be used in the workflow. As a result of these standards, every user’s needs are addressed.   

Privacy and Security Measures        

            A lot of mechanisms have been devised to help address the privacy and security issues being experienced in the usage of the systems. Among them is making the rule of encrypting data of paramount importance. Healthcare institutions have been given an ultimatum of ensuring that this procedure has been accomplished. Any institution involved in the Health Information Exchange process must ensure that adheres to this rule. Lack of compliance will come along with severe consequences from the policy makers. There is organization that wants to find itself on the wrong side of law. Such postulations will pave way for compliance from the stakeholders involved.

            Medical practitioners are also being warned of using personal mobile devices while exchanging the information. Most of these devices are unsecure and relevant policies regarding their usage are not yet instituted. Reducing the frequency of using these devices will help in boosting the security and privacy aspects. This is because it will become difficult for undesired individuals to access the information contained in the files.

            When using cloud computing as a resource for storing data, there are several measures being enhanced. Among them is keeping different files on similar virtual servers but remain unmixed, inaccessible and separate from each other. There is also a requirement that the entire data and systems involved should be encrypted. The encryption keys involved should be managed at all times. Tools involved should be of high quality and compatible with current technology. When this is satisfied, it becomes easier to detect and respond to a breach in the system.

            Several restrictions are put in place in order to safeguard the security and privacy of the information. The major restrictions include use of passwords, encryption and firewalls. This ensures that only relevant individuals have access to the information (Morrissey, 2011). Only medical practitioners and the patient concerned can have access to this information. Medical practitioners get access to the information once a patient has presented himself or herself in their premises. In some instances they need to get permission from the patient before they can access the information. The patient on the other hand, accesses the information through the caregivers’ permission. However, they cannot access the information through the HIE. There is also a restriction on the nature of information they are allowed to access. For instance, a patient is not allowed to gain access to information containing notes from his or her psychiatrist.

References

Dalgleish, C. (2012, July 15). Privacy Rights Clearing House. Empowering Consumers,     Protecting privacy. Retrieved May 25, 2013, from           https://www.privacyrights.org/fs/fsC6/CA-medical-HIE

Guerra, A. (2011, August 7). KLAS Report Highlights Public HIE Challenges |     healthsystemcio.com. healthsystemcio.com | healthsystemCIO.com is the sole online-only publication dedicated to exclusively and comprehensively serving the information needs          of healthcare CIOs.. Retrieved May 25, 2013, from             http://healthsystemcio.com/2011/07/08/klas-report-highlights-public-hie-challenges

/ Morrissey, J. (2011, February 1). HIE | Health Information Exchange |. Hospitals & Health                     Networks, H&HN, hospital and health care business executives, health care business   executives, hospital business executives, health care management magazine. Retrieved           May 25, 2013, from             http://www.hhnmag.com/hhnmag/jsp/articledisplay.jsp?dcrpath=HHNMAG/Article/data/            02FEB2011/0211HHN_Coverstory&domain=HHNMAG

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Perspectives of Performance Management

Developmental and Evaluative Performance Management Systems

            Performance management system is a process designed to involve all employees and other relevant stakeholders to improve organizational effectiveness. Both developmental and evaluative performance management systems have similar purposes. This is because they are derived at attaining a common goal. Among the chief purpose is enabling employees achieve superior standards to be used at the work place. The standards are attained by use of several tools in this realization. Both also serve the purpose of identifying skills and knowledge required for a certain job. These skills and knowledge would help in performing efficiently since it gives the drive in focusing towards performance in the right task and manner (Aguinis, 2013). Employee performance is also boosted by encouraging motivation, empowerment and implementation of favorable reward systems. At this point, the barriers of effective performance are identified, and real time solutions derived. Both strategies are designed to improve the communication system between supervisors and employees. This is by clarification of roles and accountabilities and communicating it to all the departments involved.

            However, the tools used are different in each strategy. Evaluative performance management systems use review forms as one of its tools. These review forms entail information of all employees and their respective positions in the organization. They have various standards that have been set and are used to assess the performance of these employees. The evaluative strategy also makes use of the recognition technique to fulfill its desired objective. Employees that have attained a particular set threshold are rewarded on different basis (Solomon, 2009). It works as a motivation to other employees to perform so as to get recognition next time. Developmental strategy on the other hand, uses training programs. Employees are trained based on the standards of the relevant organization. The training process helps them fit into the system and perform as it is expected of them. There is also the use of performance planning as a tool. All the relevant stakeholders brain storm and generate the best plan to help propel the organization to a higher level.

Strengths of the Systems

            Both systems have their own strengths. Strengths in the developmental system include the ability of the system integrating all employees into a common unit. This is through the training programs that are offered. The employees are equipped with similar abilities since they have undergone through the same training program. As a result, it becomes easy to work in partnership hence achieve success along the way. Performance planning on its part brings essence of the job description.  Through the planning process, all employees are aware of what is expected of them, hence work towards delivering (Aguinis, 2013). It also helps in laying down the output goals. This is achieved by maximization of economic resources.

            Evaluative system on its part ensures that employee performance is analyzed through the performance review forms. This comes as strength since it gives the supervisors an idea of how to deal with the employees. It also helps in identifying whether employees still have the qualities and abilities that earned them jobs in the first place. It helps in assessing whether there is a need for any replacements in certain areas of the organization. Recognition on it part brings motivation to all employees. To them it acts as a morale booster.

Weaknesses of the Systems

            Both systems have their weaknesses, which are not very domineering. In developmental systems, the training programs might not favor everyone at the workplace. Most of these programs are aimed at bringing uniformity. For this reason, similar techniques are used on every employee. This might not be effective since it does not consider the aspect of diversity which is prevalent in every organization. Performance might also bring rigidity on the side of employee and deter them from adjusting to changes in the future (Baron, 2011).

            In evaluative system, the recognition process might be bias. This might depend on how a certain employee is perceived by the management. It would work as a discouragement to other employees and fail to deliver the intended objective.

Benchmark of Critique

            Acceptability can be used as a benchmark, to critique performance management systems. The tools used in every system should be used to all employees in the organization. Some management bodies tend to impose systems that do not go well with the employees. They use their influence to force employees to go through the systems despite their attitudes towards these systems. Employees might not accept some rationales based on their beliefs, motivation drives and abilities. Some might think that they are not fair and suitable for the desired objectives. As a result, there will be reluctance in embracing these systems. Using the systems might not be effective in improving the performance in the workplace. This is because the employees will be opposed to many changes in the organization due to the fear of the unknown (Solomon, 2009).  The aspect might paralyze most activities and delay developmental programs as a whole. Employees are an integral part of any organization. Their needs and concerns must be given paramount consideration before operations are executed. Any performance management system that is not embraced by employees should be reviewed. Spearheading operations with a performance management system that is not acceptable might lead to total failure.

Good Practice of Performance Management

            Several practices can be used in enhancing performance management in any organization. Among the practices is embracing diversity in the organization. Diversity is an aspect that surfaces in many organizations with this error of operation. It comes in many forms ranging from age, race, abilities and beliefs among others. It is upon the organization to devise a plan of managing diversity. This will help in accommodating all the employees in the system irrespective of their differences (Solomon, 2009). It would even be easier to understand how certain individuals behave in certain ways.  This way, the strategies devised in improving performance would be effective due to their inclusive nature. When the organization is establishing systems performance management, all the differences among the employees would be considered. At the end, the system chosen will tend to favor all employees irrespective of diversity at the workplace. This would help in evading the stumble of system acceptability by employees. Everyone would be willing embrace it.

            Working in partnership is another practice that needs to be embraced in performance management. All m employees irrespective of their status in the organization need to work together. Junior employees should be involved in some decision making processes involving organizational affairs. This helps in creating a sense of belonging. There is no segregation between the senior and junior staff. A good understanding everyone’s ability and weaknesses is attained. As a result, junior employees would be willing to embrace performance management systems being used in the organization since they were part of the body that coined them. This aspect helps in improving the general performance in the workplace.

Comparison of the Systems

            Developmental and evaluative performance management systems have some elements in common. Among the similarities is that both are focused on employees. These systems aim at improving the general performances of all the employees in the organization. Aim at directing employees towards achieving desired standards in the organization. This is because both systems encourage motivation and empowerment of employees. These are key components for success to be realized in any working environment. Another similarity is that in both systems, there is an implication that employees cannot achieve better performances by themselves. There are supervisors in both cases. For developmental system, the supervisors are the key designers of the actual plans to be followed. They are also involved in deciding what elements need to be included in the training programs. Employees have to abide with whatever that is brought forward. A similar case is observed with the evaluative system. Employees are not given the chance of evaluating each other based on their own observations. There is also no pre-requisite for them to point out on individuals that they think deserve recognition in a particular period of operation (Aguinis, 2013). All these are done by the management and relevant supervisors.

Contrast

            The major contrast is that the evaluative system is aimed at assessing the current performance of employees while developmental tries to focus more on future.  Evaluative systems just check the suitability of employees based current prevailing conditions. This means that it does not take into account the conditions that might have resulted to certain levels of performance. Developmental systems on the other hand concentrate with the future operations based on the tools used. Initiating plans and training programs are aimed at improving employee performance in future endeavors (Baron, 2011).

Summary

            Performance management systems are brought forward to enhance the performance of all stakeholders in the organization. Among the major systems used in most organizations are evaluative and developmental systems of performance management. These systems serve similar purposes once they are integrated in the organization. They both aim at helping employees attain higher standards in execution of their duties. However, the tools used for these systems are different. The evaluative systems make use of performance review forms and recognition. Developmental system on the other hand, makes use of training programs and performance plans. The strength of the training programs and performance plans is that they enable employees to work as a unit due to the interactions. However, the performance plans might bring rigidity since the employees’ mind set is already fixed. Performance review forms on their part can give supervisors ideas on the changes that their employees need to embrace for effectiveness. It checks on laxity that might have crept along the way.

            Acceptability can be used as a benchmark for critiquing a performance management system. This is because employees’ corporation is vital for a performance management system to work effectively. Managers need to embrace diversity and adopt strategies that would in managing it. This would help in understanding what employees want based on their status hence develop a system that will be accepted by all. Working in partnership would also play a significant role in convincing employees to accept various performance management systems.

References

Aguinis, H. (2013). Performance management (3rd ed.). Boston: Pearson.

 Baron, A. (2011). Taking Steps to Enhence Organizational and Individual Effectiveness.             Overview of Performance Management, 12(5), 23.

Solomon, C. (2009). Select a performance management system. Alexandria, Va.: ASTD Press.

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Vodafone Group

Introduction

            Vodafone is a multinational telecommunication company based in UK. The headquarters of the company are in London and a registered office in Newbury. Based on the number of subscribers, it is the second largest in the industry all over the world. According to a report released in 2011, it is only second to China Mobile in terms of revenue. In 2011, the company had over 438 million subscribers. The organization operates its own networks in more than 30 countries. In addition, it has partner networks in over 40 countries. Partner networks arise as a result of having a substantial share ownership in the networks. There is also the ownership of 45% of Verizon Wireless (Giudice & Kuenzel, 2012). This is considered to be the largest telecommunication organization in the mobile sector based in USA going by the number of subscribers. Vodafone offers both services and products in its mix. Among the products there are chargers, memory cards, headsets and flex arm cradle. These products are usually of high quality compared to a variety out there. Services include data offerings, messaging and voice services among others. Hi-tech systems have been devised to enhance that the services are not hindered during the delivery process. Any form of laxity is considered to be harmful to the organization in one way or another. Vodafone has been listed on the London Stock Exchange. Over the years it has been a constituent of FTSE 100 index. In mid 2012, it had a market capitalization of about 89.1 billion pounds (Giudice & Kuenzel, 2012). This was considered to be the third largest for all the companies that are registered in this stock exchange.

Vodafone and the Telecommunication Industry

            Most of the organizations in the telecommunication industry are similar in a variety of ways. This is based on the goals that they aim at achieving and the strategies that they use towards achieving these objectives. The ultimate purpose of these organizations is providing services and products to the consumers and generating profits from these ventures. It is the goal of every company in the telecommunication industry to immerse as much profits as possible. However, there are differences when it comes to the mission and vision of the organizations. A good example that can be used as a comparison with Vodafone is British Telecom. Vodafone’s vision aims at enriching consumer lives by offering unique mobile communication (Plunkett, 2008). British Telecom vision on the other hand, aims at being a global brand in system integration by providing consumers with cutting edge technology to guarantee satisfaction. Vodafone’s mission is to be the leading figure in the telecommunication industry in the highly connected world. British Telecom mission on its part aims at client engagement while working towards realizing profitable ventures.

            Vodafone has several strategic objectives that it desires to accomplish. The company is targeting to increase its market share by 20-25%. This will be supplemented by massive promotional activities in areas of operation and venturing in new markets. Another strategic objective of the organization is the total cost associated with network ownership. Once the costs have been reduced, the extra funds can be used in other areas. It would also help the company in lowering its prices so as to attract more consumers. British Telecom’s strategic objective is that of enhancing a consumer focused approach. This will be enabled by the organization’s mission statement that aims at consumer engagement.

            Vodafone’s stakeholders include the government, consumers, suppliers, shareholders and employees. The stakeholders influence the organizations goals and mission. Employees are viewed as a pivotal asset to the company. There are more than 85,000 employees and the company’s success is dependent on them. They are critical in ensuring that the mission statement of the organization has been attained (Ibbott, 2009). Shareholders on the other hand help the organization in attaining its strategic objective of increasing the market share. They do so by providing funds necessary for the expansion of existing networks. The company meets their expectation by enhancing that a profitable business model has been adopted. Shareholders benefit from the profits realized hence the organization must work hard to see this through. Consumer expectations are met by providing quality services and products. This is paramount for consumer satisfaction in any market. For the government, the organization ensures that it adheres to all the regulations and laws brought forward. It also makes its duty to pay all taxes as they fall due.

Vodafone Operations in the UK

            United Kingdom’s economy is the sixth largest all over the world in terms of GDP. It comes in at position eight based on purchasing power parity. The economy has been improving all through the years based on the output levels. UK’s economy is free and open based on how the systems tend to operate. Being a free market it entertains international corporations in the country without having much control on them (Card, 2008). Such organizations are subject to paying customs duty, import tax and other relevant levies. The economic freedom of United Kingdom has a score of 74.8. In 2013, this is the 14^th freest economy based on the score. The score has gone o.7 points higher compared to last year (Giudice & Kuenzel, 2012). This is great indication of how government spending is being controlled. Such an economy has several impacts on Vodafone. One is that it makes the telecommunication industry open to new entrants and other international corporations. The essence increases the players in the industry hence creating the need to scramble over consumers. As the competition intensifies, Vodafone needs to develop strategies that would help in gaining competitive advantage. Such strategies do not come just like that. There is a lot of time and resources spent on research and testing the effectiveness. The implementation process also consumes substantial resources. This increases the company’s cost hence lowering the profits. Vodafone might also lose part of its market share to the new entrants.

            United Kingdom government manages the economy through the use of fiscal and monetary policies. The policies are deployed once the automatic forces fail to restore the economy in the necessary equilibrium. This includes the times of inflation and unemployment. When the government is faced is by a budget deficit, it has two options in financing it. It can either sell bonds to the public of print money. The aspect of printing money is a monetary policy because it increases the supply of money in the economy. Increase in money supply affects Vodafone in a positive way. When there is an increase in money supply, consumers have more money on their disposal. This means that their consumption levels will go up. Consumers associated with Vodafone will tend to acquire more of their products and services. The sales revenue increases hence the profitability aspects follow in suit. On borrowing from the public by selling bonds in the open market operations, the government would be using a fiscal policy. The government through the central bank sells the bonds in order to expand its money supply. These bonds come with a relatively low price so as to entice the public based on the profits that they will make once the interest rates change (Giudice & Kuenzel, 2012). This tends to reduce the amount of money on consumers’ hands hence reducing their consumption levels. It would affect Vodafone in that the consumers reduce the consumption level of their products and services hence reducing the sales levels. In the long-run, it affects the profitability aspects.  

            In UK, the regulatory mechanism is defined by the rule of law. It is transparent and efficient hence favoring businesses. There is no minimum capital requirement and only takes 13 days for a business to be established. The legal system is independent hence ensures that contracts and property rights are safeguarded. This is important to Vodafone since it is on organization working in partnership with several stakeholders. The regulatory mechanism ensures that all the parties meet their contractual obligations without any failure. It also makes it difficult for other people and organizations to infringe the company’s property rights. Competition policy on the other hand works to reduce anti-competitive activities in all industries. The essence of competition is aimed at ensuring that all organizations provide consumers with quality services and products.

Market Structure

            The United Kingdom telecommunication market structure is a perfect competition. This aspect influences the production decision and pricing of Vodafone. The company has opted not to choose price since it is not a favorable approach. Competitors would use it to bring the organization down and acquire its market share. Vodafone chooses output quantity as their pricing strategy in the market. Here, the organization produces more and ensures that all the units are sold. This increases revenue hence the profitability levels. It has been the best approach to the company since cost leadership is not viable based on many uncertainties brought b y the market structure.  On production decisions, the organization has opted to go with product differentiation. This helps the consumers in indentifying their products and services once in the market (Horn & Faulkner, 2011). This is very important since other players in the industry are providing similar offerings.

            The market forces in the telecommunication industry include internal rivalry, bargaining power of consumers, availability of substitutes, supplier bargaining power and threat of new entrants. The notion of consumers having the bargaining power prompts the organization to be very keen on its pricing attributes. This is because they are very responsive to price changes. Taking the prices too high might lead the consumers to shifting their preference towards the competitors. Presence of close substitutes on the other hand, has made Vodafone to differentiate its products from those of the competitors. Failure to do this would lead to lose of sales. Threat of new entrants has enabled the organization in developing strategies that would help in attaining long-run sustainability. Among them has been establishing consumer loyalty. Once there is consumer loyalty, it becomes difficult for new entrants to porch consumers.  Rivalry in the industry is caused by the intense competition. This has made the organization to devise more strategies in trying to bit competition. Watching every move of the competitor has been very important (Horn & Faulkner, 2011). Supplier bargaining power on its part ensures that the company pays the suppliers favorably and on time. They are the same ones that serve the competitors and treating inappropriately might ruin operations.    

            Vodafone’s business environment is more of political, technological, demographic and social environment. The technological environment is changing very fast based on the nature of the industry. This makes the organization to be very flexible so as to adapt the new rends. Political environment is concerned with the policies and regulations being coined. Some of them favor the organization while others do not. Demographic environment seems favorable since majority of the people are conversant with the telecommunication industry hence utilize its products. Cultural environment that shapes the business is diversity. Vodafone has the ability of operating in many countries and remaining sustainable at the same time. The management has also made it possible to deal with diversity at the workplace. Working in partnership has contributed significantly to the success of the organization.

Impact of International Business on Vodafone

            The effect of international business on Vodafone is double folded. This is because it has brought both benefits and limitations to the organization. The benefits arise from the fact that the organization has the ability of operating in other markets apart from UK. This helps in diversification aspects since when one market fails the other works to sustain the company. It also helps in increasing the market share due to the new ventures being opened (Galgoczi, Leschke & Watt, 2009). As the market share increases profits are also likely to increase. The disadvantage comes in when international telecommunication businesses try to venture into the UK market. They tend to create some form of competition and porch into the market share that is already available. In the long-run, Vodafone has to spend a lot in trying to create competitive advantage.

            Some global factors also work to the advantage of the UK businesses. Among these factors is the establishment of trading blocs like EU and NAFTA. These blocs have affected the cost of operation in markets that companies like Vodafone operate in outside UK.  Tariffs being charged have dropped substantially due to availability of these blocs. As a result, profit maximization is being realized in international markets.

            The role of EU is enhancing that a favorable business environment is established in all member states. To create effectiveness the EU has come with various policies that have impacted UK businesses in various ways. Among them is the environmental policy. This policy stipulates that every organization operating within the member states of EU must aim at reducing its pollution levels significantly. The policy came about after it was noted that pollution levels keep on rising as each year passes by (Galgoczi, Leschke & Watt, 2009). This would have an effect since most of its electronic devices are presumed to contain elements of unwanted resource in the environment. This may deter people from consuming the company’s product. This would mostly affect those consumers that refer to themselves as being “green”. They usually work towards ensuring that the environment is taken care of all the times. Such consumers force companies to start producing environment friendly products something which cannot be changed overnight.

 References

   Card, D. E. (2008). Seeking a premier economy the economic effects of British economic             reforms, 1980-2000. Chicago: University of Chicago Press.

Galgoczi, B., Leschke, J., & Watt, A. (2009). EU labour migration since enlargement trends,        impacts and policies. Farnham, England: Ashgate.

Giudice, G., & Kuenzel, R. (2012). UK Economy: The Crisis in Perspective. London: Routledge.

Horn, S., & Faulkner, D. (2011). Understanding global strategy. Andover: Cengage Learning.

Ibbott, C. J. (2009). Global networks the Vodafone-Ericsson journey to globalization and the         inception of a requisite organization. Basingstoke, Hampshire: Palgrave Macmillan.

Plunkett, J. W. (2008). Plunkett's telecommunications industry almanac. Houston, Tex.: Plunkett Research.

         

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Toyota Marketing Strategy in United States

Table of Contents

                                                                                                                                                   Page

Introduction……………………………………………………………………………………..3

PART A

Marketing Strategy Adopted…………………………………………………………………..4

Value Creation…………………………………………………………………………………...7

Strengths of the Marketing Strategies………………………………………………………….8

Weaknesses of the Marketing Strategy………………………………………………………..10

PART B

Strategic Approach for Increasing Profitability……………………………………………...11

Increasing the Market Share…………………………………………………………………..11

Increasing Sustainability……………………………………………………………………….12

Increasing Value Creation……………………………………………………………………..13

Conclusion………………………………………………………………………………………14

Bibliography…………………………………………………………………………………….15

Introduction

            Over the years, Toyota has established itself among the leading car manufacturing companies all over the world. This aspect has been enabled by a very effective and efficient management style adopted by the organization. Toyota’s management style has paved way to the establishment of successful marketing strategies. A lot of factors have contributed to the company’s ability to emerge as a market leader in this niche. The organization’s market structure cannot be stated with precision. Some tend to consider it as a monopoly while others view it as an oligopoly (Spear, 2006). The monopoly aspect arises due to the company’s dominance in exportation. Going with the differentiation strategy, the organization has been able to establish seemingly monopolistic presence in many developing countries. The essence of oligopoly has been brought about by the presence of other key players like General Motors and Ford. These companies are believed to collude on various strategies deployed in different markets that they operate in (Wells, 2010). The collusion is always aimed at giving each player a share of the profits in the market, without having to undergo unfair competition. This usually happens when new brands are being introduced in the market, and their success is not known. Toyota has been up to the task on all the activities that its competitors are undertaking. The management team that has been devised takes a good look at what other companies in the industry are doing. This helps them to keep in touch with new revelations and remain to be market leaders for as long as they can.

            Despite the success that the company has had over the years, operating in international markets has always been a challenge. This is based on the marketing strategies that need to be devised and differences in consumer preference compared to the local markets. Toyota was introduced in United States in the year 1965. In mid 1970’s, the company had already established itself as the best selling import brand in the country. In 1980’s, Toyota started to manufacture vehicles in the country. The aspect was attributed to the growing market share of the organization. Setting up manufacturing plants in the country also reduced the costs involved with importation. By 2006, Toyota had become the second largest car manufacturer all over the world, and third largest in United States (Onkvisit & Shaw2009). At the moment, the company is regarded as the number one manufacturer all over the world. This is based on the sales level and market share that the organization enjoys. Its existence has proved the importance of an efficient marketing strategy.

Marketing Strategy Adopted

            Among the marketing strategies that Toyota has established in USA is setting up many branches for distribution purposes. This strategy has been enabled by setting up a large management team to oversee the process. Managers involved with products in the branches have undergone thorough training in their respective fields. Before recruitment, these managers need to have acquired a certain educational level and marketing experience derived from previous operations. The managers are required to deploy competent and skilled workforce in the relevant branches. The effectiveness of the workforce has come along as good marketing strategy due to the consumer engagement process (Orhangazi, 2008). A consumer gets more satisfied when he or she is dealing with individuals that have good understanding of the product that they wish to purchase. A workforce that shows any form of reluctance is a complete turn off to consumers. Through the interactions, individuals working at the designated branches tend to learn a lot regarding consumer tastes and preference. It is also easy to understand their general feeling regarding the products being offered. Their non-verbal cues and responses can be used to get this information. Once this information is collected, it is presented to the marketing managers. Through the information it becomes easier to assess what consumers want. Favorable strategies are devised to help curb the gap that exists.

            Another element of the marketing mix that the company has adopted is the product line pricing. This is a strategy devised to separate brands in cost categories. The whole aspect is aimed at creating essence of quality levels in minds of consumers. For effectiveness, Toyota has put in sufficient price gaps in between categories so as to inform potential buyers on the difference in quality. Vehicles found in each line of production have different features compared to those in other lines of production (Monden, 2010). The more the features in one product line, the high the higher the price of the vehicles involved. The aspect has enabled the company to derive maximum profits. This is because the organization has the ability of serving consumers with different tastes and economic abilities in the country. Manufacturing vehicles that are only favorable to high income earners would be a bad approach. This is because numerous potential consumers are looked out.

            Toyota has also segments its market to some extent. The segmentation process has taken place based on the income level disparity that exists in any economy. The high income earners are provided with heavy vehicles that come along with high price tag and high levels of fuel consumption. The other divide of the market is opposite of this. The aim of this segmentation is to ensure that everyone attains the desire of acquiring a vehicle despite their economic conditions. Recently, the market has been segmented further to those consumers that want environment friendly products and those that do not mind. This has been achieved by manufacturing vehicles that are propelled by electric motors for individuals that are concerned with conservation of the environment (Maxwell, & Drummond, 2010). For those that do not care, cars with fuel propelled engine still exist for them.

            On promotional aspects, Toyota has been spending over $1 billion in its marketing campaigns in United States on various operational periods. The USA market is competitive based on the players involved in the industry, hence the need for aggressiveness. Among the promotional channels utilized is advertising. Toyota advertises its products through various media outlets. It has chosen to go with the media stations that have a huge following in the country. This aspect increases the chances of their advertisements being viewed by a large number of people. These advertisements are usually aired during prime times.  This is that period that many people are believed to be following certain media programs or live shows. Buying airtime during this period is usually expensive but the rewards are favorable (Koenig, 2012).

            Toyota also makes community building shows and public relation as part of its promotional strategies. The company has been involved in numerous projects that involve the community on most occasions. Among these projects, there has been participation in charitable organizations and offering promotions of different kinds. The organization contributes a lot to charities on many occasions. Funds involved usually come from the organization or fund raising activities (Mendelsohn, 2004). Through this approach, many people have come to realize the existence of the company. It is also involved in various developmental projects targeting different groups in the society. The projects are aimed at improving the lives of the people involved. Many individuals benefit from the projects and tend to promote the company’s products. They do this by encouraging their friend or colleagues to the company’s brands. Toyota also practices some form of personal selling as its promotional strategy. This is mostly carried on organizations that have already established themselves. The company approaches these organization and offer to sell them cars are reduced price. Such organizations buy vehicles in bulk hence giving them a cut price works best for both parties. They are made to see the advantages that might accrue as a result of this business partnership.

            The company uses Just in Time production strategy in its supply chain. So far the strategy has been effective and worked quite well coupled with the organization’s systems. For some time, it has worked as a competitive advantage to the company. However, the strategy also has its disadvantages when analyzed from different perspectives. 

Value Creation

            Toyota has developed various strategies that have resulted in value creation. Among the process implemented was the manufacturing of hybrid vehicles. This was an approach that went very well with consumers. There are many people out there that are concerned with the environmental conditions that they live in. Before this realization, vehicle’s pollution was out of consumers’ control. However, production of hybrid vehicles by has changed the stance. To this group of consumers, this is a sign of social responsibility from the company. They seem to be interested in conserving their health on many aspects. Recent reports have shown that the company’s print has improved significantly. The level of pollution is significantly low. Such occurrences tend to bring about consumer loyalty (Doole, & Lowe, 2005).

            Establishment of developmental projects has also come as a value creation mechanism. Many companies do not give back to the society. This aspect never goes well with consumers. They are decoyed the chance of interacting with their “business partners.” Toyota’s involvement in community projects has helped in many individuals in the society. Some have been able to attain their working levels while others have been able to pursue further education through these programs. Most children in the charity organizations have had a rejuvenated hope based on the efforts that have been brought forward by the organization.

            Between 2009 and 2011, Toyota called back many vehicles that were believed to have some deficiencies. These vehicles were believed to have different malfunctions including experiences of unintended acceleration. This was a positive sign on most consumers. Many had argued that it would distort the company’s image. People of this perception would have let the scenario to pass, something which would have been disastrous in the near future. It is the company’s desire to create value and uphold high standards that contributed to the call back. Consumers have become even more loyal since they feel secure while utilizing these products (Donoso, 2012).         

Strengths of the Marketing Strategies

            The marketing strategies being used by the organization have some strength elements that make them successful in day to day operations. To begin with, establishing manufacturing branches in different parts of the market helps in saving costs. Toyota’s parent company is based in Japan. As part of its international venture, the organization established its manufacturing plants in United States.  This move has helped on reducing costs that used to be incurred. Imports duties were very high based on the levy that was being charged. Consumers are also being served on a timely manner. Delays in delivery could result in loss of consumers if not properly checked (Castro, 2010). The aspect has also enabled employment of local personnel to work in these branches. They have some ideologies and knowledge regarding the people in this area hence have the ability of establishing favorable relationships with consumers. Through the interactions, the company is able to get an idea of what the consumers really want. This way, consumers will also get what they want and repay the organization back with being loyal to its brand.

            Just in Time systems also work as strength factor in the company. Competitors in the industry are yet to adopt this system and integrate it into their marketing mix. Being able to uphold this in Toyota’s supply chain has seen the total costs reduce significantly. Reduction in total costs has accrued due to reduction in the holding costs. By using the Just in Time production, every product is manufactured as and when its demand arises. This means that the company does not have to hold the inventory before a viable buyer comes around. All the costs involved in holding such inventory are avoided hence the organization’s profit increase. Consumers are still served on time Toyota is a technology and innovation driven organization. It is now possible for them to manufacture a car within 5 days.

            Product line pricing has also come as strength to the organization. The economy has some forms of disparity in it. It is comprised of high income and low income earners. These groups of consumers have different tastes and preference. Their choices are curtailed by their social values and ability to purchase. By using the product line pricing, Toyota has been able to capture a large market share. This is because it serves the low income earners and high income earners. As a result, more sales revenues are realized (Cooney & Yacobucci, 2007). This contributes to increased profits. Using the product line pricing also enables in getting more revenues from the high income earners. Automobile with more features usually go at a high price. There are those consumers that purchase products since their prices are high. To them is a matter associating with the brand rather than getting the true value to their money. Product line pricing has enabled Toyota to set up this approach so as to entice this type of consumers.

Weaknesses of the Marketing Strategy

            Despite the Just in Time system working as strength to the organization, it also comes along to be a weakness. When using Just in Time system, all individuals involved in the process must work efficiently. Failure on side of operation might derail the process. To some extent, it might result to temporarily calling a process off. This would amount to delays in the manufacturing of products. As a result, customer orders are not fulfilled on time.

            Having a large team of management is also another form of weakness. Establishing numerous branches has come along with deployment of a large team of management. When the management is large, it becomes difficult for efficient operations to be initiated. There is a lot of bureaucracy in each department.  An issue must pass through several stages before it is passed or agreed upon. This might be detrimental to the organization, more so in the marketing area. This field is dynamic and changes from time to time. It requires some level of flexibility in decision making for sufficiency purposes. Derailing the process through lengthy consultations might result in market failure.

            Based on the promotional aspects that Toyota is adopting, it seems to concentrate more of digital advertising. This is a weakness since there are individuals that are potential consumers and might not be reached by the information since they have not embraced technology. They have opted to remain analogue despite the current trends. Their own perceptions and desire have prompted this actualization. Concentrating more on the digital arena, might lock out these consumers (Cameron, 2006).

Strategic Approach for Increasing Profitability

            The automobile industry has a large market share based on the consumers that derive its products. For this reason, the market is very competitive since every player wants to get a share from the market. Profit maximization is the ultimate goal for every organization. For Toyota to increase its profitability, several strategic approaches should be devised. Among them is establishing a favorable relationship with the suppliers. Based on its Justin Time production system, the company tends to put a lot of pressure on the suppliers. In the long-run, this might affect the company’s profitability prospects. Creating positive relationships will ensure that the suppliers bring quality products. This is because they want to work for as long as possible with the organization. The prices they will charge on the raw materials will be prudent (Bowen, 2011). Sometimes when the relationship is not favorable between these two parties, suppliers tend to inflate the prices of raw materials. When the prices are favorable, cost is reduced hence the profitability prospect rises.

            The company also needs to adhere to all the rules and regulations set forward by the government and other relevant bodies. Most of these are related to environmental matters and vehicle safety. There is a requirement that the company calls back any vehicles that do not meet the standard threshold. Failure to meet these requirements might result to high fines. This would come as an increased cost reducing the levels of profits.

Increasing the Market Share

            Increasing the market share is not an easy task for any organization. For Toyota to attain this, it has to establish some strategic approaches. Among these approaches would be manufacturing limited edition vehicles. These are those vehicles that come only once in a life time. Consumers will always scramble for such products. This is because most of them like being unique and want products that are limited in the market. The aspect creates an essence of loyalty since many consumers will be waiting for such occurrences. They tend to get in touch with the company’s affairs so as to know when these products are available in the market. As a result, the company increases its market share since other consumers from the competitors will be enticed by such offerings (Bell & Morse, 2008).

            Toyota should also proceed with its aspects of enhancing social responsibility towards the consumers. This has been the company’s blue print ever since its inception. There should be more investments on research and analysis process. This will improve the innovation prospects of the organization. Through the research it will also be easy to identify what consumers want and make available to them. To consumers, it feels when a business understands and upholds their needs. The consumers will keep on recommending the company’s brands to their colleagues and friends that have not embraced them. In the long-run, Toyota will keep on increasing its market share.

Increasing Sustainability

            For Toyota to increase sustainability there is need to establish favorable organizational culture and staff development. Employees are always regarded as valuable assets to any organization. Their efficiency usually results to success of the company in one way or another. An organizational culture is always vital if any success is to be realized in any working environment. Employees need come through a certain routine of doing things. This aspect helps in creating uniformity among the employees (Allen, 2012). All employees adhering to the organizational culture tend to work in partnership. If Toyota is able to enhance this, they will be able to bring social responsibility aspects to the consumers. The company’s strategy of embracing technology and being the leaders in this field will also get a boost. Development of employees can be enhanced by adopting various strategic management systems that include training and development systems. Efficiency from employees will enhance sustainability for a long time.

            The company also needs to invest a lot on promotional activities. This includes advertising and other techniques being used by the organization. The industry is very competitive hence needs aggressiveness in creating consumer awareness. Toyota should be on the look out of the promotional strategies being used by the competitors. It might copy from them or come up with something better. The more people see something being promoted, the higher their chances of being potential consumers. This would enhance sustainability since the company will remain profitable for a long time.

Increasing Value Creation

            There are many strategic approaches that Toyota can adopt so as to increase value in its operations. Among them is using technology that is reliable, tested and serves the processes and people intended. At all times the technology that is adopted should be there to help employees and not to replace them. Lying off employees usually comes as a negative publicity to the general public. To avoid this, Toyota should be very cautious on impacts brought by any technology that is adopted. Technology that is difficult to standardize should also be avoided. Technology of such nature disturbs the flow of the processes and calls in for additional supervision of employees (Borowski, 2010).   The organization should also take the initiative of modifying or rejecting technologies that conflict with the company’s culture.  This is because the results might be unpredictable hence making the organization deviate from its objectives. Such an occurrence might diminish the organization value.

            Another way that Toyota can increase its value is by getting more involved with community development. There would entail participation in various social event and other profitable ventures to the society. This helps build the company’s image and becomes more valuable to the consumers’ eyes.

Conclusion

            Toyota is recognized among the leading automobile manufacturers in the world. Efficient management has been vital in this realization. Over those years, operating in the USA market has not been easy. However, the marketing strategies that have been adopted have enabled the company to survive amidst the stiff competition posed by other players in the industry.  Among the strategies adopted by the organization is setting up several branches for distribution purposes. The company has also been able to introduce product line pricing in its marketing mix. This has been very helpful in capturing of substantial market share. Toyota practices some form of segmentation where it differentiates the high and low income earners. There is usage of the Just in Time production system for efficiency purposes. Several strategies have also been adopted in the promotional process. They range from advertising to personal selling. All these strategies have their own strengths and weaknesses. The company needs to start manufacturing of limited edition brands in order to increase its market share. Establishing a favorable organizational culture and staff development would work to enhance sustainability. Use of appropriate technology on the other hand, would help in value creation.

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