Answered: Describe the key issues that need to be…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Deep Blue Seaways (a UK based company) is a shipping company that transports goods all over the world by sea. It has a number of problems. Firstly, it comprises of a Head Office and four divisions, each of which have their own set of systems and processes as a result of the takeover of 3 smaller companies during the last 4 years. The Heads of each Division are not renowned for their co-operative approach with each other, and they work as they were each running their own company rather than working for a larger corporation. The Chief Executive Officer (CEO) is agonising over what to do with this lack of co-operation as he knows that much money could be saved if processes and systems were aligned between the four divisions. Head Office staff constantly complain that they have to manipulate and seek clarification of the data coming into them from the divisions and this is both time consuming and tedious. Each division has its own IT department, all supporting and developing systems just for their division. There has to be many opportunities to streamline here and reduce significantly the number of It staff employed. The CEO laments that his company’s core skills are in logistics but instead of building able to focus on this and improve the success of the company compared to their rivals, he constantly has to deal with other issues such as finance, marketing, human resources and administration. He also has to grapple with the fact that Customer Services are giving the company a bad name and damaging their ability to build business. Customers complain that many of the Deep Blue Seaways staff are unhelpful and occasional just rude. Although he would hate to admit it the truth is that the culture of the organisation is one of aggression, meeting targets and never doing anything if there isn’t money in it. Going the extra mile, whether for external or internal customers, isn’t part of the company’s philosophy. In recent years new shipping companies are emerging, especially in the Far East, that can offer services at cheaper rates than Blue Sea and this is becoming a major worry for the CEO Q.1 Describe the key issues that need to be addressed if Deep Blue Seaways are to remain a viable business (Outsourcing question)

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