Customers are the organization’s natural resources. For this reason a business should do its best to maintain its customers or even attract more while customers are the most important resource and they need to treat them with care and be an integral part of every aspect of their planning process. Every member within a company plays a role in customer satisfaction (McNealy 1994). Julian Richer is the owner of the biggest hi-fi separates retailer in the UK. The income revenues of the company’s stocks and its low overheads are the major contributions for the company’s success. However, this is just the top of the ice burg. What is under the water are the sub-elements which without them the company would not meet its today’s blooming. Richer Sounds is mainly focusing on a niche market and they believe that they can stand on their feet even without cooperating with other companies. The key to their philosophy is the customer service. Their philosophy is to make and keep their customers happy. For this reason, the managers of the company are organizing various practices to maintain the motivation of their workers in high levels in relation to their customers, while they also try through various techniques to keep their customers satisfied. Moreover, the company is also attempting to adjust its principles to the influences of the external environment. The management style of the company responds to the needs of their employees. Communication within the company is very important while it can prevent breakdowns within a system.
Roles and Responsibilities of the managers
The theories of management are consisting of five management functions: Planning, Organizing, Staffing, Leading and Controlling. Managers make plans so to develop and achieve company’s organizational goals and objectives. A well organized plan can prevent problems before they occur or apply solutions quickly. While organizing the company is structuring its resources (personnel and materials) allowing the company to achieve its objectives. Managers have to put in the right positions the personnel. Once the company has set its goal the next move is to find the appropriate labor force with the right skills and characteristics to meet company’s goal. Leading is the act of guiding and influencing other people to achieve goals. That involves leadership, communication and motivation skills. Controlling is an important function because it indicates to the managers how close is in their goals and objectives (Heil nd). The managers of Richer Sounds Company have set a goal of succeeding in the business market by providing the right services to their customers and keeping them happy. According to the case study, they have done and still doing a good job. The managers have organized different kinds of evaluations for their personnel but also and for their customers. The company is focusing in the philosophy of fun for customers. Giving gifts to the customers is also another policy which keeps their customers satisfied. Every person who buys a hi-fi gets for free an umbrella if it is raining outside. Every week the sales assistants are calling the older age-group customers and first-time buyers to evaluate how satisfied they are with the product they bought. On the other hand the managers of the company have also developed various policies towards the company’s employees. The purpose is to evaluate how productive they are and keep their motivation for work in high levels. For example, the customers are being asked to evaluate how helpful the service of a salesperson was. If the salesperson gets “excellent” then he is rewarded by getting £3 but if he gets “poor” then £3 are deducted.
Richer Sounds and its External Environment
The policies and the decisions the managers take within a company may vary according to some external influences. Using the PESTEL analysis the managers can identify those factors. PESTEL is a short term for Political, Economics,...