---------A REPORT ON TWO CASES:
OTICON & RYANAIR --------
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1. Introduction
This report aims to analyze two cases- Oticon and Ryanair from three aspects. This report will start from the background of these two companies, and then analyze the operation strategies used by them. How they market their products and manage their consumer relationship will be outlined in the following chapter. Furthermore, this report will present a general discussion on how Oction and Ryanair manage their human resources. This report is based on theories from literatures and several websites. List of reference will be presented in the end of this report.
2. Background of the Company
2.1 Background of Oticon
Oticon is a company founded by Hans Demant in Denmark in 1904, driven by the desire to help his hard-of-hearing wife and others with similar problems lead a better life (Oticon website-Corporate Culture, 2008). This company produces a wide range of hearing support products to a particular group of consumers- people who have difficulty on hearing. This company has a culture of innovation, which concentrate on improving its technology and design of products. The people of Oticon have been continuously focusing on developing solutions to make living with a hearing loss so much better. Oticon has gained success in this hearing aid support industry. Not only this company has gained significant financial success from its operation, it has also gained reputation and goodwill in this industry.
2.2 Background of Ryanair
Ryanair was the founder of Europe's low fares airline. Until now, Ryanair still holds the largest market share in the low fare airline industry in Europe. According to the figures shown in the company website of Ryanair, the estimated capacity of Ryanair’s operation in the year 2008 is 52 million passengers on 649 low fare routes across 26 European countries. The information on its company Website also shows that Ryanair now has 27 European bases, and it is expected that by the end of March 2008, this company will operate a fleet of 163 new Boeing 737-800 aircraft with firm orders for a further 99 new aircraft (all net of planned disposals), which will be delivered over the next 5 years. Ryanair is a multi-national company, which can be shown from its employee infrastructure. This company now employs a team of approximately 5,000 people, comprising over 25 different nationalities (Company Website of Ryanair,2008). This company has experienced rapid development and expansion over last few years, which can be viewed from the growth of its customer numbers, as shown in following figure, cited from the company Website of Ryanair.
Ryanair Passenger Growth in Millions
Resource from: http://www.ryanair.com/site/EN/about.php?page=About&culture=GB&pos=HE
3. Operation Strategies
3.1 Operation Strategies of Oticon
The mission statement of Oticon has always the “put the people first” (Oticon website- CoreCompetence, 2008). They believe that technology is mot the only key to create best solution. In fact, the individual needs and wishes of hard-of-hearing people is the primary determinant of developing new technologies. In addition, the operation of Oticon has always focusing on innovation. “To develop innovative solutions, people need space, time to think and an opportunity to share their views. At Oticon they are allowed all three” (Oticon website- CoreCompetence, 2008).
At Oticon, there are separate teams which concentrate on developing a specific area. For example:
? Digital Signal Processing. This team concentrates on developing new and innovative signal processing and control algorithms.
? Electro-acoustic System Design. This team concentrates on ensuring that the hearing aids Oticon produce conform to local standards and that they can function in all types of circumstances.
? Quality Management. The primary role of this group is to establish preventive measures for Oticon's critical processes and fulfilling the fundamental requirements for external partners such as customers, various authorities and certification bodies etc.
? Mechanical Design. The role of this group is to develop advanced platforms for hearing aids.
In addition, this company has other departments, such as software development and tool development, service and production support as so on. Departmentalization is a feature of its flat organizational structure. It has provided this company an opportunity to change quickly and enhance its cooperation between departments. As a result, this company could gain competitive power in this industry.
3.2 Operation Strategies of Ryanair
3.2.1 Data management
Ryanair has adopted information technologies to its operation. One good example to illustrate this point is on its data management. Winning customers is essentially the most important point in its operation. In order to gain customers from competitors, it is essential for Ryanair to notify the customer about latest offer. In addition, because Ryanair Ryanair announce new summer and winter schedules for their flights evey year, it is important for this company to inform passengers that had booked flights prior to these announcements of any changes to their itinerary. Ryanair initially uses manual or telephone contacts to notify consumers about the changes of booking, but now, this company has introduced PASNGR (Passenger Ad-Hoc & Schedule change Notification Generator), which is an effective information technology system for “integrate seamlessly with a reservations system to retrieve passenger itinerary information and send a personalized, language-specific e-mail, SMS text message, fax, voice message or printed letter advising customers of a change in time to their flights” (Data management Website, 2008).
In addition, Ryanair has largely adopted online operation, such as online reservation. Customers could go online to Ryanair’s website homepage, and then use its online search engine to find its preferable route. Customers can book their flights, hotel rooms and hire cars online too. This online system is reliable and easy. Customers could pay for their bookings with credit cards. The operation of Ryanair The benefits of the system to Ryanair in terms of reduced costs, operational efficiency and increased customer satisfaction are vast and difficult to underestimate.
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