How to be a Successful Business
By: Christine Tran
Introduction to successful businesses
Companies around the world look forward to create newer ways to become more successful and globally competitive in order to beat out its competitors. Being the best allows for more recognition globally. Recognition attracts customers, which means more profit for the company. In order to be successful businesses should look to be innovative, provide quality products, corporate social responsible, expand business, use media and marketing strategies, outsourcing and follow trends globally. Companies that are prosperous in a global scale all look towards several guidelines to achieve more success.
Companies should abide to these following seven guidelines:
- Be innovative and creative
- Provide quality products
- Be socially responsible
- Continue to expand worldwide
- Use media and marketing strategies
- Follow trends
Innovation beats out competition
Online shopping has increased over the years, where online shopping accounts for 7% and has risen up to 16% during holiday season (Townsend). In order to combat the increasing percentage of online shopping, stores such as Target and Macy's match online sites by matching the prices or offering same-day shipping (Townsend). Some in-store companies can even offer experiences such as free family portraits, giving customers "the full brand experience: the environment, selection, service" (Townsend). In-store companies look to create more ways to bring in customers and to beat other competition by offering the same offers from online and in-store. This allows for a more level playing field and gives way for in-store companies to bring in more profit. Offering the same deals or even more deals, makes the company more desirable to come experience and shop from compared to online shopping sites such as Amazon. Other ways stores like Target have been doing to increase sales involve creating their own site or mobile app as well as putting free wifi in-store in hopes that customers may use while they roam (Townsend). By putting free wifi or creating a mobile app, Target gets more recognition and an edge than its competitors.
Samsung has also received attention due to its innovative ways. Samsung is a global leader in cutting edge screen technology, batteries, and chip design (Shaughnessy). Samsung has long been a partner to scientific expertise in the former Soviet Union in the late 1990s (Shaughnessy). Through having a close relationship with Russian Academy of Science, both sides help projects. This gives Samsung an advantage to talent and development (Shaughnessy). The company has also adopted TRIZ, which is a methodology where users seek contradictions in current technological conditions and customers needs to provide an idea that they should strive towards (Shaughnessy). Through TRIZ, the company saved over $100 million for its first projects (Shaughnessy). In partnering with Russia as well as adopting a method that saves money, Samsung is successful as it produces cutting edge technology while saving money in teaching employees the TRIZ method to evaluate products.
Through innovation and creativity, companies are able to generate more profit or reduce its expenses. Innovation makes a company more desirable to purchase from as well as show the ability of a company to meet the growing world of modern technology and education.
Provide better quality products
Having quality products prove to be a good way to attract customers. All around the world, people will pay more for better quality products. In India's hospitality industry, Michelin Stars are significant in attracting business. Having a Michelin Star is gaining momentum and is considered a bragging right (Khosla). Having a Michelin Star means the cuisine is very good, depending on the scale of stars. Kuma Shoban, director of food and beverage at Hyatt Regency says, "Indians are increasingly becoming extremely well travelled and are demanding high quality of service" (Khosla). Restaurants that use quality ingredients and gain labels such as Michelin creates a better name for potential customers around the world, where they "help give greater credibility", says Shane Krige, general manager of The Ritz (Khosla). For Macdonald Hotel & Resorts, quality is is important as well. For the hotel business, Macdonald says, "we'll pay a premium over our competitors to buy the very best quality beef, lamb and fresh fish" (Masterson). Similarly if companies produce good quality products, then companies can gain more notice around the world which leads to more profit.
Having the best quality products or ingredients, give companies an advantage over its competitors since the company will be known to have the best quality and be more desirable. Known for good quality products, people are more likely to purchase items from the best compared to others.
Being socially responsible has its benefits
Companies such as H&M and TD Bank strive to be more socially responsible and receives recognition for its efforts. In the retail industry, H&M is among a couple of companies that are actively involved in becoming more sustainable. H&M is committed in a variety projects such as fair living wages and water sustainability. According to WWF's 2012 Living Planet Report, about 40% of the world population live in river basins that often experience water scarcity ("Water"). It's predicted that by 2050, more than 40% will live under water stress ("Water"). In efforts to prevent that from happening, H&M teamed up with WWF and has worked for the past 10 years to reduce negative water impacts. This includes by educating all 104,00 employees and working with policy makers, NGO's and water institutions ("Water"). H&M also has an animal welfare policy, where they ban real fur to prevent further animal cruelty ("Animal Welfare"). Being socially responsible has benefits, where many will follow and support a certain company due to its involvement. This can make profits go up just like H&M, where H&M's profit rose 22% in new stores ("H&M's profit up 22%"). TD Bank has also contributed in the community, by protecting forests and planting trees in communities. Working with Nature Conservancy of Canada and The Nature Conservancy in the U.S., TD Bank helps raise awareness to protect forest habitats ("TD Forests"). Planting trees are another priority and TD employees planted 40,000 trees in 2012, and 45,000 in 2013 at more than 145 planting sites ("TD Forests"). Being an active member and helping out communities around the world, shows citizens that certain companies are ethical and worth supporting.
Expand business internationally
Founded in 2007, Mooyah Burgers Fries & Shakes recently opened its first international restaurant in Dubai, where several other restaurants are planning in the Middle East (Ruggless). Partnering with AWGAL, 1 out of 10 restaurants has been agreed upon. According to Mooyah Chief executive and president Bill Spae, "there is no better time than now to expand internationally," (Ruggless). Location and partnerships are significant to success. Expanding the business to the right location will get more profit, restaurant chains have found many eager partners to help expand the franchise in the Middle East.
American Eagle Outfitters also looks to expand business in hopes for better revenue and profit. The company has already opened 4 international locations including in Israel, Japan, Philippines, and Thailand (Hoang). American Eagle Outfitters has a goal that by 2014, looks to have at least 100 licensed stores in more than 20 countries (Hoang). Through the right location for expanding the business, the highest yield is at 3.5% and payout ratio at 56% for the company (Hoang). Through expanding with partners as well as at the right areas, companies are able to prosper and reap in benefits.
By having multiple locations around the world, it's more likely that people will buy items if it is near them. Expansion allows for more accessibility and the ability to drive business with employees around the world.
Media and Marketing can set a company apart
Good marketing strategies as well as the use of media can prove to be very important in the creation of a successful business. Companies can often use media outlets such as Twitter, Facebook or Instagram to inform potential customers about the company. Social networking sites often take advantage of celebrities using them or create celebrity endorsements to boost profit in the future. Through careful marketing strategies, companies can create a brand name for themselves and further help the company’s image.
Ever since companies or stores first opened, they have used celebrities to bring in more customers. The usage of celebrities have always been a way to bring in more money. Companies such as Nike have used celebrities like Michael Jordan to promote products since 1980’s and 1990’s (Bury). Keeping up with modern practices, social networking sites have been used to promote companies. Social networking sites have been able to tap into a celebrity’s fan base and followers through the networks, where celebrities can promote a business (Bury). Being able to access a celebrities fan base can set a company apart as fans can end up following the celebrity. This could be either by purchasing things that the celebrity endorses or what they network they use. Businesses can no longer deny social networking sites. According to Kristen Muhlner, CEO of newBrandAnalysis, "Any business that thinks it can ignore online feedback will have to think again in 2014," (Karpus), If any business that wishes to gain more notice and success, it has to advertise through social media. Social media can also provide better ways to create a connection between customers and company. Customers no longer need to wait on the phone for 45 mins to an hour, customers can communicate through social media sites (Karpus). Creating a social networking sites to communicate to customers or address problems at a faster rate gives customers more ease. Having a social media site, companies can create a social presence as part of their investments.
Branding is significant in bringing in more clients and customers. The right brand can pull customers in and gives the opportunity to keep customers. The name of a company is important as it's the base of the brand creating. A name can either make or break a business. Many restaurants that have a bad name often lose business (Hardy). Comparably, a good name can create a good aura and attract business. To Mark McCafferty at Captivate Hospitality, "marketing is all about telling a story" and names are the same (Hardy). Having a good name and brand, "stands the test of time, and works in different locations" (Hardy). Creating a good brand, attracts business and can last long lengths of time for the company. Having a good name can evoke good aura and can stand out amongst the other companies.
Setting a company apart from the rest can be difficult. Through media and marketing, companies can stand out from the rest. Using social media through celebrity endorsements and advertisements to promote products can be beneficial to the company. Most of the time advertisements have subliminal messages and can convey unconsciously what to people should or shouldn't buy. Not only does social networking sites are important, the brand is just as important. The brand is what sticks to people when they think of a company, to create a good brand means success in the future.
Outsourcing can help businesses
Outsourced employees can provide more ideas and insight into the development of business projects. Small businesses can work their way up and create a name themselves through outsourcing. Through Utah State University, VPI (Visionary Products Inc.) was able to grow as it started off as an extension in 1996 (Conner). Utah State University program outsourced an engineer provider from VPI. This engineer helped the agency's client, Dr. Clark Turner for the engineering portion in creating a handheld dental x-ray device (Conner). For clients or companies that outsource it is beneficial as it "had significant expertise in that area that my own engineering team didn't have," says Dr. Clark Turner (Conner). This further solidifies the fact that outsourcing can help businesses, through expertise that they may have to more ideas to pitch. For Dr. Clark Turner, he is still engaging with VPI in developing additional products for his research and company (Conner).
Becoming a successful company needs to think about outsourcing. New businesses that use outsourcing can have an advantage compared to businesses that don't. Having employees around the world, with a variety of talents can only aid the company in its developments. The knowledge of what customers want in a product in the specific location can prove to be easier with outsourced employees around the world.
Following trends creates positive outcomes
To fight obesity, many food and beverage companies vow to remove calories from products. In May 2010, 16 companies from Coco-Cola Co to Kraft Foods Group pledge to remove enough calories by 2012 (Begley). By 2012, the companies sold 6.4 trillion less calories according to researches at the University of North Carolina (Begley). Accomplishing this feat was a mixture or combing sugar substitutes as well as built-in portion control (Begley). Shifting advertising to lower-calorie drinks as well as implementing 100-calorie packs of snacks were highly effective in reducing calories (Begley). Snacks in packages of 100-calorie, specifically brownies have "generated more than $100 million in retail sales in their first year," says General Mills spokeswoman Kris Patton (Begley). Similarly, Yoplait Greek 100 has "reached $150 million, making it the single largest new-product launch for Yoplait in 20 years," says Kris Patton (Begley). Companies that follows trends such as the fight to beat obesity, where products are catered towards the trend will create more profit than regular. It shows that companies are able to come up with better ways to meet the demands of customers.
Trends allow for companies to create more profit. If the corporation decides to correspond its line to the trend. Through catering to the current trends or issues around the world, companies are able to make more money compared to other companies that choose not to follow.
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