Current Strategies And Implementing Recommendations For Better Performance Commerce Essay
The scenario in concern today, particularly those concerned with the planetary community is of all time every bit complex as earlier. Much attending has been given to affairs such as niche chances, limited clip periods, the ageless addition in the likeliness of hazard, and the demand for dynamic concern determinations.
These affairs reflect the fast-paced society which has finally led concerns into corporate inventions which have brought them in the planetary landscape and imperium of international success.
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1 – Introduction
The nucleus intent of the being of every company is to bring forth net income in the class of its concern public presentation as it enable itself top provide service to the general public market and performs it map in conformity with the policies set by the governments while guaranting the being of corporate societal duty. Every concern, at the start of its operation operates with a concern program as its foundation and to besides give way for what shall lie in front on its hereafter. Furthermore, clip is of extreme importance, and aboard with it aspects such as engineering, human nature, and competition in the industry were necessarily affected.
Such cases show the demand for a company to be able to invariably revisit their schemes and to implement new 1s which will better accommodate with the altering fortunes and still set them on the limelight of the concern.In the class of this paper, the research worker will analyze one company – Western Union – including its current operation and historical informations and relevant information which were related to its concern public presentation from the clip it started up to the present. Factors such as it current fiscal position, its employees, the selling and human resource schemes presently employed by the company, its managerial way, and other facets related to its operation will be revisited and analyzed. At the terminal of the survey, the research worker will so do recommendations which will be geared towards better concern public presentation. These recommendations will be supported by informations and facts on the current operation of the concern while analyzing both internal and external factors and its consequence on the concern.
2 – Company BACKGROUND
With the ageless tendencies in globalisation, peculiarly in international concern, the general populace is in uninterrupted hunt of concern entities which will supply them with their basic demands. More and more people are working in different topographic points and gaining money on different locations globally. With this, there is besides a turning demand for money transportation concern in order for them to easy direct moneys to their households who are in demand.
Western Union has been in uninterrupted pursuit to supply its market with such service in the best of the company and for the best involvement of the planetary market. The fiscal services provided by Western Union have transcended boundary lines and crossed bounds as it expanded its skylines over a figure of locations to be able to do fiscal transportations an easier undertaking.The about 150 old ages today, the name which Western Union carries embody a sure symbol for being able to link friends, household, and concerns in the planetary landscape. Bing popular presents as a leader and an pioneer in planetary fiscal services, the company has progressively become a universe market leader in the field of planetary money transportation through its estimated 410,000 agent locations on different parts of the universe across about 200 states. From what has officially started as a concern with roots grounded on their signature wire concern, the company has so evolved after old ages to offer an invention in the field of electronic money transportation.
More than the services which were ab initio offered during its constitution, the company has now besides ventured into other services such as money transportation, money order, payment and prepaid services. While the concern of wire has been buried as portion of the company ‘s history being its initial concern, Western Union is still on its continued bequest of being able to link people from all over the universe with fiscal services which are known to be convenient, fast, and dependable.To be able to to the full understand how the company became known as to its position today, it is besides of import that we take a expression at the roots of the company from the clip it started to the clip that it has expanded and became what it is known today. It all started in the twelvemonth 1851 when the company was founded and was ab initio known as being the New York and Mississippi Valley Telegraph Company. Having started in the concern of telegraphs, no 1 could hold predicted that the concern will germinate into a fiscal transportation concern with a diverse map. Furthermore, it was on the twelvemonth 1856, 5 old ages after when the name of the company was changed into Western Union to be able to mean the consolidation of several telegraph lines in the western portion which can be reached by the old American telegraph system.
In 1861 the company made a name by finishing the first transcontinental telegraph line across the North America. The first successful stock ticket was introduced by Western Union in 1869 and in 1871 it introduced its newest add-on to the concern, money transportation. In the twelvemonth 1896, the company expanded its concern skyline by offering its services to other parts of the universe such as Europe, Africa, and Asia. 1914 marked another milepost in the company as it introduced the universe ‘s first consumer charge card and in 1943 it marked another milepost as the company pioneered the first commercial inter-city microwave communicating systems.
In 1974, it introduced its first commercial orbiter in the US and it was in 1980 where the company experienced greater gross from money transportation services as compared to the telegraph services. In 1993, they introduced the first prepaid disposable telephone card. In the jubilation of their 150 old ages in the concern on 2001, they expanded to more than 100,000 agent locations on different parts of the universe. Through the old ages, the company continues to introduce and supply a better service to the populace to etch a bequest in the concern of planetary money transportation more than anything else.The values which adhere to their mundane operations can be assumed as the anchor of the planetary success that the company is presently basking.
These values which they live daily who they are and what they stand for as an international concern. At the bosom of their operations, they live with these values as they interact with their consumers, co-workers, and the international market. These values which guide their rules include unity, partnership, chance, passion, and teamwork. Business is done with absolute committedness to the rules of moralss, credibleness, and honestness in their operations. They build a strong sense of partnership which enables them to hold a better apprehension of consumers and besides enables them to present market services that could either meet or even transcend consumer outlooks. They are besides geared towards taking advantage of every chance that comes their manner and thought of it as ways in which they could set up a better company. They have an deathless passion on what they do assisting the public achieve their dreams. And most significantly, they operate on the footing of teamwork which enable them to set up a more inclusive and dynamic working environment where they all portion the desire to function and win.
Western Union besides believes in the strength of their trade name, size and range of their planetary web, and convenience and dependability of their consumers being the key of the ageless growing of the concern in the planetary landscape. As they continue their pursuit of supplying the public with money transportation services which are convenient, dependable, and fast, they besides continue to spread out their portfolio of concern to give the consumers more of the service which they deserve. With gross generated from two chief activities, money transportation and payment minutess, they derive their income from two sections: consumer-to-consumer section and the consumer-to-business section. In the consumer-to-consumer section, the company provides the public with multi-currency and existent clip money transportation treating systems and supply physical substructures and staff which are indispensable in supplying the minutess for money transportation in their legion agent locations. The agents are by and large paid on commission-based gross which are shared by the sending agent and the receiving agent. Furthermore, in the consumer to concern section, the company processes electronic and hard currency payment to different organisations having consumer payments such as those which are related to public-service corporation services, finance companies, and even authorities bureaus. These charge services are processed through the used of recognition cards, debit cards, or bank histories.In the Asia Pacific Region, one of the states in which Western Union has been exerting concern is Singapore.
Bing a topographic point of diverse civilization holding people from different parts of the universe, most of which were abroad employees, there has been a recognized turning demand in the topographic point for money transportation services which are fast, convenient, and dependable. And with this demand, Western Union has been in the quest to supply it. In response to this demand, western Union has already established more than 70 agent locations in Singapore where their clients can direct money to anyone abroad or transact other signifiers of fiscal services and payments. Another invention of Western Union in Singapore is the debut of the Gold Card where they enjoy different benefits such as wages points, insurance coverage, phone clip, shopping flings, shopping vouchers, and price reductions on spouse constitutions.
3 – Market Profile
Presently, Western Union is already considered as the universe ‘s largest money transportation company in footings of the volume of dealing with a portion of 17 % n the planetary market as of 2007.
3-1. Market Hazard
Like in any other concern, the public presentation of Western Union be it in the planetary market or in Singapore entirely has been associated with several hazards which treaten their market or their economic state of affairs in the industry.
Hazards are but normal in every concern, and in Western Union they were able to develop certain schemes in order to battle these hazards and to execute concern at their best despite the being of internal and external hazards. One of the hazards faced by the concern is the foreign currency exchange rate. Other hazards associated with their concern public presentation include involvement rates, recognition hazards, and ordinances or policies set by the authorities which is beyond the control of the direction of the company.
After the retirement of two of Western Union ‘s highest officer, it ‘s CEO, Christina Gold revamped the direction construction of Western Union as she sees fit in the current state of affairs. The Chief executive officer decided to realine the streamline of the operation of the company into two planetary regional constructions – the Americas and the EMEA-APAC. The constitution of these two new parts is said to be done with hopes to potentially speed up growing and to be able to supply a much stronger linkage between the company ‘s planetary services and the consumer base. Such is geared towards uninterrupted proviso of the best direction construction which could rapidly react to the demands of the market. By altering the direction construction, they besides believed that they were able to add synergism while larning more efficaciously from each other and turning their concern more efficaciously every bit good.
3-3. Selling Scheme
With the continuously dining planetary market as brought about by migration and abroad employment, there has besides been growing in money transportation services. With that, Western Union ‘s selling schemes have been geared towards their local market or what has been known as selling scheme for cultural consumers. This cultural selling scheme of Western Union provides focal point on working around the many complexnesss of its client base and the many sections of its mark market. Bing in operation in the planetary landscape, it is of extreme importance that the selling scheme of Western Union be geared towards accommodating to the local market depending on local tradition and civilization to derive better credence in the location. As portion of its selling scheme, the company is besides in its manner towards debut of new engineering and invention in the field of planetary money transportation. To sum up the selling scheme of Western Union, it has been said to be a affair of xanthous and black stigmatization which could be competently described as the “ Coca Cola ” of the planetary money transportation market.
3-4. Competitive Analysis
Merely like any international concern, Western Union does non stand entirely in the industry. It has a figure of rivals which are either straight or indirectly in the public presentation of the concern Western Union provides. The industry to which Western Union competes includes electronic payment systems, fiscal services, and dealing, recognition and aggregation. Furthermore, aside from Western Union, what has been considered as the major participant in the consumer-to-consumer money transportation aside from Western Union is the MoneyGram International, a much smaller company. If Western Union holds 17 % of the planetary market, it ‘s rival, MoneyGram International holds merely 6 % of the market.
Obviously, in footings of fiscal services and money transportation what possibly could be the primary rival in this are the Bankss which fundamentally do the same. The lone job with Bankss is that clients are required to hold their several bank histories in order to reassign money. Furthermore, in the consumer-to-business industry the rivals which can be considered are those electronic payment systems which include the offering of eBay and PayPal of Internet-based alternate towards money transportation.
In the twelvemonth 2009, the company is estimated to hold generated 5.1 billion dollars in gross and 85 % of this gross was generated from the consumer-to-consumer section of the company which refers to money sent between two persons from separate locations through local agents of the company. Furthermore, consumer-to-business sections account to 14 % of the said gross. More than that, the company is besides dedicated in spread outing its international range from which 65 % of its gross was from international money transportations, what has been referred to as the nucleus of the concern of the company.
3-6. Economic Condition
It is undeniable that the planetary economic crisis has already inflicted concern hurting among international companies. The economic status and the planetary status have prompted many concerns to airt and revisit their schemes with hopes that they will still win.
It is said that the industry of money transportation in the planetary market is susceptible to the fluctuations in the status of the economic system. Bing an international concern, the sulky conditions of the economic systems in the United States, Canada, and Mexico has besides led to worsen in grosss in the parts mentioned. However, gross in the Asia Pacific part grew by an estimated 40 % demoing the potency of the part as portion of the emerging markets. Globally, there has been an increased demand for the money transportation services provided by Western Union which was besides confronted by increased competition with the outgrowth of other concerns which exist with the same intent and service.
3-7. Market Trends and Forces
It is rather unfortunate that the status of the planetary and domestic economic system is being sulky in the past periods. This sulky economic tendency has besides led to lesser money transferred into different locations, which in the terminal, will turn into lesser gross for Western Union which is the planetary leader for money transportation.
Certain parts such as the United States and Mexico have shown a dramatic diminution in footings of gross because of this tendency. Furthermore, although gross from these parts have decreased, the company still holds these countries as two of their most of import parts that is why they are on a witting attempt of airting their schemes to be able to recover gross on the said countries. Furthermore, although the tendency is decelerating and dropping on the American part, other topographic points in the Asia Pacific registered double-digit addition which prompted the outgrowth of new markets and forced the company to pay excess and full attending to this part in order to go on their reign in the market. Another tendency in the concern of Western Union is the increased in competition with the continued addition of entities bing for the same intent and service.
The being of these rivals has forced monetary values to be lowered in order to fit the competition.
4- . Change THE WAYS
In order to better the service which was presently provided by Western Union in Singapore and in other parts of the universe, is merely indispensable that the schemes be revisited and to implement new policies which will be geared towards betterment in concern public presentation. The wining paragraphs will show assorted recommendations by the research worker as he sees as viable for the company and as the research worker perceives to be an effectual move.Risk direction is really indispensable in the success of a company.
Previously, the research worker has identified the hazards associated with Western Union including hazards associated with foreign currency exchange rates, involvement rates, recognition, and authorities ordinance. These hazards are inevitable but so they are manageable. In order to be able to pull off these hazards, readiness for whatever economic turn-down is necessary. A pre-determined hazard direction program authored by the company ‘s best heads is recommended by the writer so that when confronted with the state of affairs, they can easy pull off the menace and travel on with concern public presentation. This hazard direction program will assist them put a way towards where they should be headed in order to at least minimise the hazard.One of the schemes which the research worker recommends is another revamp in the organisational construction. As mentioned before, the CEO Christina Gold divided the direction construction into two parts, the Americas and the EMEA- APAC which includes the Asia Pacific Region like Singapore and Philippines. The company has more than an estimated 400,000 agent locations universe broad.
For the research worker, it is non plenty that the highest of the direction be divided into merely two parts. They should be divided into a per continent footing. For illustration, Asia Pacific would be a stand-alone part, separate from the EMEA – APAC so as Europe and Africa.
Through an constitution of these smaller custodial parts, higher degree directors could be able to supply more focal point on what has been go oning on a per state history. This would give them more focal point and dedicated attending into local operations. Furthermore, a decentralised direction is besides recommended by the research worker in footings of the organisational construction. There are good leaders in the regional degree of direction ; nevertheless most of the determinations were coming from those who were situated in the United States for they have control of the regional degrees.
What is merely critical and indispensable in implementing a decentralized organisational construction is thaty the CEO should see to it that merely the right and intelligent people were placed on regional degrees to be able to be assured to give the best consequence out of their public presentation. The regional degree is really of import in the concern map of Western Union because this degree is the 1 which will be more closely associated with agent locations on different states in the part.Furthermore, competition is another job which poses a menace in the concern public presentation of concern. Although Western Union is the current leader in the market, it should be emphasized that rivals are easy emerging and they are easy tapping the market which used to be served by Western Union. In order to battle this job, the research worker recommends that the company program out on schemes that could take down the degree of competition in the planetary market. A more aggressive advertisement run is necessary in order to maintain the word on their being and to perpetually do the universe aware that they exist to supply the service that the public deserves.
The company besides needs to revisit its pricing scheme against competition. If there is a great relevancy between the monetary value of the service and their standing in the market, they might every bit good see the demand to offer more sensible monetary values to the populace in order to capture a greater portion of the populace. Furthermore, in the restructuring of their pricing scheme, they must see to it that the given monetary value is right without them runing on a loss. Furthermore, to besides potentially combat competition particularly in the consumer-to-business section, Western Union must be able to use the usage of engineering and besides utilize internet-based money transportations which will do the procedure easier for the clients and besides for the agent locations.The fiscal public presentation has besides been discussed.
As what has been shown, in some countries peculiarly in the American part, gross showed a dramatic diminution while it showed dramatic addition in the Asia Pacific part. To be able to accomplish a more stable fiscal position in all locations, the research worker recommends cost minimisation and resource allotment to be able to keep control of the money the concern is gaining. It is really of import that the concern minimise the cost associated in the public presentation of the concern to give the most from what they earn. The cost construction can be improved by relocating, outsourcing, and consolidating certain operations particularly among local agents which are non rather executing good in footings of the gross it generates.Bing a planetary concern, selling is besides a really of import facet.
It is really of import that the selling schemes undertaken should be in line with the concern public presentation and in line with their targeted ends. Currently, Western Union employs a great selling scheme with focal point on cultural selling and conveying approximately nomadic selling every bit good. Nonetheless, other countries should be improved every bit good. In Singapore for case, as portion of their selling schemes they have introduced the being of the Gold Cards which entitles the carrier with some benefits. However, such card is merely available in Singapore and selected states. As portion of their intensified selling run, they should present the cards into other locations as good so that the devouring public can bask the same benefit.
The debut of this card to other states will besides actuate the clients to transact with Western Union because they are cognizant that each dealing completed is equated with matching wages points. A rural selling scheme should besides be implemented. The company is in operation on rural countries in planetary locations. Not all agents are situated on urban countries where there has been easy entree to new media hence more aspects for advertisement. The rural countries, on the other manus, are depressed and hapless countries but still have demands for money transportation services. With that, it is recommended by the research worker that particular selling schemes should be formulated with cardinal focal point on rural countries and rural market particularly in the Asia Pacific.
Aside from the particular schemes which were presented above, the company should besides turn to schemes in order to battle other jobs which they would finally confront in the hereafter like those associated with migration Torahs and authorities policies depending on their locations, liquidness of their assets, alterations in engineering, lost of assurance of the general populace, and ruinous events among others. Some of these cases are unpredictable yet they are inevitable. The research worker recommends that they propose schemes which will do them strong despite the coming of the mentioned jobs. Again, it must be stressed that readiness is the key so that the really minute the company is confronted with the job ; they are prepared with a set of feasible solutions.
Singapore, merely like any other planetary location of Western Union has a market with turning demand for money transportation. More than that market, it has a technologically-advanced environment and intelligent consumers. With that, it must be taken into history that the schemes must reflect intelligent moves to take its full consequence in the Singaporean market.The scheme which should be implemented by Western Union needs logic driven, strong, and good determination doing tool which can explicate and measure assorted patterns geared towards a better fiscal public presentation and proviso of a more hearty client service. These schemes should be easy ascribable, and in common linguistic communication, could be applied to all their planetary locations with standard and common parametric quantities accepted independently.