The Seven Deadly Sins and the Six Interrelated Goals
Essay by Aldo Tecuapetla • February 23, 2019 • Essay • 1,869 Words (8 Pages) • 1,008 Views
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The Seven Deadly Sins and the Six Interrelated Goals
Q1. Are the seven “deadly” sins still prevalent today?
The seven deadly sins are still prevalent in today's corporate world. They are still in existence for some reasons as enumerated below.
- Inconsistent product quality
The attraction and retention of loyal customers in the fast-paced consumer goods sector is the primary concern for all businesses organizations involved in the production process, including retailers. The service or product quality awareness is among the main elements in establishing brand loyalty. This is because customers are always specific about what they want because tastes and preferences vary from one individual to another. Inconsistency in product quality makes them feel cheated because they pay based on the indicated market price of a product. If a product is below the expected standard, customers may decide to stop using it and try out a different one.
The inconsistency in the quality of products leads to a significant reduction in the market share since customers do not have confidence in the company. The issue is still prevalent today, where for instance, the Nestle company has been accused of misleading people by how it advertised its baby formulas. In the US, the company mis advertised their product, “Gerber Good Start Gentle powder” as the closest to breast milk (Neslen n.p). The report has had a significant effect on Nestle’s market share between 2018 and 2019.
- Slow response to the marketplace
The needs of the people dictate what products companies will offer. It is imperative that companies respond quickly and dominate the market place to beat the competition. Fast response to the market ensures that new products reach the consumers quickly hence making the company popular compared to its competitors (Pearson 1). There are several ways today in which companies can assess people’s needs. The internet is among the biggest resources in connecting people in different parts of the world. In the current age, there is no slow response to the marketplace. The competition brought about by companies engaged in various sectors of the economy ensures that they remain in the know, lest they risk losing their foothold in the marketplace.
- Lack of innovative, competitive products
Most of the big companies started as small businesses. They realized phenomenal success by using innovation to create new products, methods, and business models. Due to innovation and the willingness to set their firms at the forefront of change, the companies were able to rise to the top and maintain their consistency as some of the most innovative companies. Today, many companies are innovative and have embedded this into their culture. Most of the businesses that have not adopted innovative techniques do not offer competitive prices for products and have lost a substantial portion of their share in the market.
- Uncompetitive cost structure
The cost structure is one of the competitive advantages of a company. A competitive cost structure refers to the benefit that the corporation has over its competitors in terms of costs. A company which can keep expenses lower can have a considerable advantage over competitors who have significantly higher budgets and therefore the prices of their products and services will be higher. Presently many companies use a competitive cost structure that gives them an edge over other companies, enabling them to reap maximum returns. This is the structure under which many companies are built.
- Inadequate employee involvement
Employees play diverse roles in companies. They assist corporations in achieving their vision. They deal with the day to day activities in companies and ensure that everything runs smoothly. The input of workers is invaluable as they are likely aware of the different areas that need improvement to ensure a company runs smoothly (Bayraktar et al. 48). Companies that involve employees in their affairs record significantly higher profit margins compared to those that do not. Today, employee involvement in company affairs is based strictly on their position. Most companies involve employees in their day to day running and experience many benefits as a result of this, including registering higher revenues, employees having job satisfaction and excellent efficiency.
- Unresponsive customer service
Customer service refers to the process of assisting clients before, during and after a purchase. The success of the venture depends on the capability of the employee to adjust to the personality of the client. An unresponsive customer service platform leads to a negative view of the image of the company. Customers are most likely to return where they feel valued by a given company. Prompt responses to suggestions and queries build their confidence in the company. Today, companies have invested in the customer service department, setting up live support calls that are active throughout the day. Social media platforms have also led to the evolution of customer service. People can post questions or reviews on websites and get immediate feedback.
- Inefficient resource allocation
Inefficient allocation means that the available resources are not being distributed in the best way possible. For instance, in a clothes manufacturing company, it may be that the company in its budget pays more money in the form of salaries than what is allocated for the production of goods. This means that much of what the company makes is spent in the form of wages. For companies to maximize their returns, they have to ensure their resources are well allocated so that they produce goods at the lowest price possible (Amey 88). Currently, most companies manage their resources efficiently, ensuring that the company grows consistently. Some of the small companies that have failed to prioritize their activities have been wound up as a result.
Q2. Are the six interrelated goals still relevant today?
- What a company stands for that is special and competitively significant.
Companies need to take a step back and think about their vision or purpose when they were being formed. The uniqueness of the vision sets the company apart from others. This is what gives companies a competitive edge in the market. Companies usually invest in different niches for different reasons, but the main one is because they may possess a competitive edge over their competitors. The leadership in companies determine the direction they take.
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