The Carphone Warehouse is the largest independent retailer of mobile communications in Europe. Its’ business can be divided into three operational areas and the strategy across its three core divisions are as follows: •
Distribution - to grow through increased sales and through acquisitions of similar businesses or by building its number of stores and by growing its online sales business in order to retain and develop its market share. •
Data Services – to be a market leader in the anticipated revolution of wireless data and mobile telephony. The company assesses that this revolution has begun with mobile access to the internet, through the introduction of WAP (Wireless Application Protocol), GPRS (General Packet Radio System) and with the launch of 3G (Third Generation) services. •
Telecoms Services - to use its retail power across Europe to increase on-going airtime revenues and expand its facilities management business model across Europe.
This report will identify the strategic direction of the said organisation and will then mainly focus on the training and development policies of the company and its appropriateness to the identified strategic direction. In this paper I report my personal experiences with working for Carphone warehouse and make comparisons that indicate that some working practices perhaps do not evolve as much as we might think they do. Finally, I will give conclusions and recommendations in regards to my findings.
It is viewed as a ‘new generation retailer’ by many in the industry. It attracts people who are motivated by working for an employer who seems to share their belief in teamwork, tangible and intangible rewards, and charisma. Charles Dunstone, chief executive officer has stated “we are developing a portfolio of related businesses and services that can deliver attractive and sustainable growth in earnings and dividends”.
The organisations strategy is built on three core objectives:
To continue to grow market share in all our geographical markets both by investing in new store openings and by generating like-for-like growth from our existing estate and developing additional sales channels;
To maximise the lifetime value of our customers, both by providing a level of service that encourages repeat business, and by identifying relevant new products and services where we have a sustainable competitive advantage over other suppliers; and
To grow our business-to-business fixed line operations organically and through acquisition, and to invest in our network to provide an increasing range of communications services.
In 2005, the aim was to open 200 new stores across Europe, in a concerted drive to build on their substantial retail platform and become a more significant player in all of their markets. By the end of the year they had succeeded in opening a record 247 stores with 92 being opened in the UK.
To identify and understand the strategic direction of the organisation that I have elected, one needs to examine its aims, objectives and strategies. The Carphone Warehouse is run on a day to day basis following ‘five fundamental rules’. These rules are as follows:
“If we don’t look after the customer, someone else will. 2.
Nothing is gained by winning an argument but losing a customer. 3.
Always deliver what we promise. If in doubt, under-promise and over-deliver. 4.
Always treat customers as we ourselves would like to be treated. 5.
The reputation of the whole company is in the hands of each individual.”
Carphone Warehouse apply these rules to the entire organisation giving every individual regardless of what department or level they are employed in, an unambiguous and easy to understand set of rules. They have always operated on the basic premise that if they provide a good service for customers, they are more likely to be rewarded with their loyalty. Carphone Warehouse recognizes that in order to be competitive in its markets,...
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