Customer portfolio and Strategic Account Management 04256 Essay

Customer portfolio and Strategic Account Management 04256 - Essay Example Arguments made by Johnson and Selnes (2004), states that focus should be made on the wider managerial perspective that considers the company’s entire customer portfolio rather than focusing on the few close customer relationship in order to maintain profitability, shareholder’s value and company growth. According to the authors Harri Terho and Aino Halinen (2007), customer portfolio analysis is an action by which a firm examines the present and the future customer values for building a balanced consumer structure through efficient allocation of resources to individual or customer group. The equilibrium of the customer portfolio can be considered as the vital goal of the customer portfolio analysis due to its explicit presence in all the proposed. Therefore the portfolio models earlier were based on mathematical optimization and have major focus on the formation of a favourable portfolio of products (Sackmann, Kundisch and Ruch, 2010). Ryals (2003) also stresses on the need to analyse the total relationships as an investment portfolio where the balance would be the consequence of the customer relationship related long term revenues and risks. The main focus of the customer base is to determine the significance of customer relationships to the company and differentiating between consumers of different worth. The analysis is the future outcome which is not restricted to the monetary value of the customers but also involves the varied consumer roles in providing present and future value for the company (Johnson and Selnes, 2004). The theory of customer portfolio study is related to the theory of segmentation but still varies considerably. Portfolio analysis centres on analyzing the existing value of customers as stated by H. Terho, A. Halinen in the Journal of Business Research (2007) from the main companys point of view whereas segmentation usually focuses on segregating the market into

Managing Across Cultures--Progress Report Assignment

Managing Across Cultures--Progress Report - Assignment Example Another key value of Germans is perfectionism. This progress report provides an overview of the values, values and overall culture of the two countries; in order to compare and contrast them. In order to achieve this, two frameworks will be analyzed – Hofstede model and Trompennar’s model. The report will also highlight the organizational culture, negotiation styles and aspects of language. The culture of the two countries can be analyzed in terms of Hofstede’s 6-Dimensions. The six dimension of culture as suggested by Hofstede include power distance, individualism, masculinity, uncertainty avoidance, pragmatism and indulgence (The Hofstede Centre, 2014). These dimensions differ in different countries, leading to different values and beliefs of different countries. This differences cause challenges for expatriates working in different countries. This cultural dimension expresses cultural attitudes towards inequalities in the society. Russia has a high power distance of 93%, which means that power is very distant in the society (The Hofstede Centre, 2014). There is a large discrepancy between the less powerful and the more powerful. Expatriates therefore need to adapt to behaviours that reflect status roles in business areas – including negotiations, cooperation and visits. On the other hand, Germany has a low power distance score of 35%. Leadership is challenged to provide expertise and results, and control is avoided. Expatriates in Germany are therefore free to challenge the status quo. This refers to the level of interdependence among members of the society. Russia has a low score in terms of individualism. This is reflected in their friendship value. Friends, relatives and neighbours are always considered to be important in challenges facing people (The Hofstede Centre, 2014). On the other hand, Germany is a highly individualistic society with Hofstede’s individualism score of 67% (The Hofstede Centre, 2014). Germans believe in