Importance of Customer Satisfaction and its Impact on Business Growth

AS1 Management Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Overview of Research............................................................................................................1
Background of Company........................................................................................................1
Research Aim.........................................................................................................................1
Research Objectives...............................................................................................................2
LITERATURE REVIEW................................................................................................................3
SWOT/TOWS for organisational situational analysis to ascertain efficiency of organisation
regarding providing suitable customer satisfaction................................................................3
Analysing Porter's five forces for determining competitive advantage from providing
customer satisfaction..............................................................................................................5
Analysing BCG matrix to examine the strategic position of business portfolio so that potential
of providing fuller customer satisfaction can be evaluated....................................................7
Analysing how Branding and imaging is used to ensure customer satisfaction.....................8
RESEARCH METHODOLOGY...................................................................................................10
Type of Investigation............................................................................................................10
Research Philosophy............................................................................................................10
Research Design...................................................................................................................11
Research Approach...............................................................................................................12
Data collection......................................................................................................................12
Data analysis.........................................................................................................................13
Timescale..............................................................................................................................14
DATA ANALYSIS & DISCUSSION..........................................................................................15
CONCLUSION & RECOMMENDATIONS................................................................................18
Conclusion............................................................................................................................18
Recommendations................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Overview of Research
Customer satisfaction is explained as measurement that identifies how consumers are
happy or satisfied from capabilities, goods and services of an organisation. This indicates
fulfilment that consumers derive from conducting the business effectively. This term is mainly
used to explain scenario when exchange meets requirements and expectation of user. This
capture provision of services and goods which can satisfy expectations of consumers in context
of service and quality. It is a responsibility of an organisation to provide the high quality of
products and services to fulfil needs of consumers. It helps in make the consumer loyal towards
company and will sustain for long period of time. The customer satisfaction mainly develops
positive impact on growth of the business (Bowman and et. al., 2015). On the other hand,
customer loyalty is commitment to continue buying preferred service or goods regardless of the
situational factors which result in switching the behaviour. The satisfied consumers tend to
become the loyal consumers means the lifetime value for them. For any kind of business,
customer satisfaction and loyalty both are necessary factors. Mainly focus of company is on
sustaining existing consumers and attracting new. In addition to this, it is a responsibility of firm
to determine needs and demands of consumers and satisfy them accordingly so that the positive
impact can be developed on them and they will be loyal towards company. It will helpful in
chance business growth rate and profitability.
Background of Company
4 com plc was situated in year 1999 and its aim to improve communication services in
small market of United Kingdom. This company provides services related to phone systems,
broadband & internet, Software & Applications, Business Mobiles, Calls & Lines. Basically,
focus of 4 com plc is on improve communication so that people of United Kingdom can
connected easily. It makes up gradation in system and provide the high quality services so that
consumers can gain the better experience (Campbell, Edgar and Stonehouse, 2012).
Research Aim
“To determine importance of customer satisfaction and its impact on business growth.” A
study on 4 com plc.

Research Objectives
 To determine the concept of customer satisfaction in businesses
 SWOT/TOWS for organisational situational analysis to ascertain efficiency of
organisation regarding providing suitable customer satisfaction.
 Analysing Porter's five forces for determining competitive advantage from providing
customer satisfaction.
 Analysing BCG matrix to examine the strategic position of business portfolio so that
potential of providing fuller customer satisfaction can be evaluated.
 Analysing how Branding and imaging is used to ensure customer satisfaction.

LITERATURE REVIEW
It is explained as survey of the scholarly sources on specific topic. This provides
overview of the key concepts, findings and also development in context to research questions.
Main aim of literature review is to examine, interpret and also critically measure literature. It
synthesize the different sources for highlight conflicts, gaps and patterns (Ding, 2013). The
literature review is mainly designed to give overview of the sources which have explored while
investing specific area and also demonstrating research outcomes. This part of research is based
on the secondary method that consist the different sources like internet, journals, articles and
books.
Concept of customer satisfaction
Customer satisfaction can be defined as a Feeling of pleasure or disappointment which is
availed after using products/services of an enterprise. This concept largely relies upon the
perceived quality, word of mouth and reviews which a person ascertains through online medium.
Customer satisfaction can be referred to one of the crucial terms in business which focuses on
making sure that customers are satisfied with the offering of business organisation. The concept
of customer satisfaction involves procuring relevant information from the prospects through
surveys and ratings and simultaneously improving quality of products and services offered.
Customer satisfaction can be linked directly to the brand loyalty as the satisfaction will assure
that customers again available the products and services of the company. In context of 4Com Plc,
company will assure that all the networking and other related services provided by company are
fulfilling all the major requirement of its potential customer. This situation will be helpful for a
business in assuring that higher market share.
SWOT/TOWS for organisational situational analysis to ascertain efficiency of organisation
regarding providing suitable customer satisfaction
As per opinion of MITCHELL GRANT (2019), it has been stated that TOWS analysis is
strategic planning tool and add the real value to company that help in take strategic planning. It is
a tool that mainly used to generate, compare and chose strategies. Company use this tool for the
strategy generation as well as selection. In context to this, there is trade off among internal and
the external factors. Strengths and weaknesses are the internal factor and the opportunities and
threats ate external. The strengths and weaknesses are related to enhance the customer

satisfaction. This tool is helpful for the situational analysis and also satisfy the needs and wants
of consumers in an effective manner. Customer satisfaction is more necessary for the business.
TOWS aids in enhancing productivity and growth of business. The TOWS analysis enable a
company to match internal strengths and the external opportunities to develop the “maxi- maxi”
strategies. It examines the external opportunities and threats of an organisation and also compare
them to strengths and weaknesses of firm. The 4 com plc use TOWS analysis to analyse internal
and external environment so it can not face any issue while providing the high quality of
products to consumers and also give them satisfaction. This kind of analysis forms basis in order
to develop the TOWS strategies and form an actionable tactics. The TOWS analysis given
below:
4 com plc
STRENGTHS (S) WEAKNESSES (W)
 Brand equity
 Strong Market position
 Not present in global
market
 Require more
investment
OPPORTUNITIES (O)  Make global presence  Digital marketing
THREATS (T)  Competition  Regulatory threats
Strengths-Opportunities (SO): This consists using the internal strengths for taking
benefit of opportunities. Under this, customer satisfaction is a main motive of an organisation so
that it can gain the competitive benefit. The strong market position is a main strength of 4 com
plc and it align with the opportunities that available for an organisation such as digital marketing.
With the help of using digital marketing, company can develop marketing reach to engage users
and satisfy their needs. It helps in making the strong brand image of company at marketplace.
Strengths-Threats (ST): Under this, another strength is brand equity that possessed
through 4 com plc organisation. The threat is related to high competition. It could impose threat
on an organisation as the high competition in the telecommunication market that impact on brand
equity. From this, it can not satisfy requirements of consumers and reduce profitability of
business.