Analyzing Customer Satisfaction for Business Growth: 4Com PLC Report

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This management report examines the critical role of customer satisfaction in driving business growth, specifically focusing on 4Com PLC, a telecommunications company. The report begins with an overview of the research, outlining the company's background, research aim, and objectives. A comprehensive literature review explores the concept of customer satisfaction, its relationship with customer loyalty, and relevant strategic tools. The report employs SWOT/TOWS analysis to assess the company's internal strengths and weaknesses against external opportunities and threats, Porter's five forces to determine competitive advantage, and the BCG matrix to evaluate the strategic position of the business portfolio. The research methodology outlines the type of investigation, research philosophy, design, approach, data collection, analysis, and timescale. The data analysis and discussion section provides insights into the findings, followed by conclusions and recommendations aimed at enhancing customer satisfaction and fostering business growth. The report emphasizes the importance of customer satisfaction for business success, providing a detailed analysis of 4Com PLC's strategies and market position.
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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
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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.
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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.
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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
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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.
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Weaknesses-Opportunities Strategies (WO): The weaknesses of 4 com plc is require
not present in global market. It is related with the opportunities to expand business in to make the
global presence by using different entering strategies. Through this, it can able to target the new
consumers and also provide them its services on the basis of their requirements. It helps in make
the large number of loyal consumers and enhance market share.
Weaknesses- Threats (WT): Under this, threat is weaknesses is related to the require
more investment. As 4 com plc is small size company and requires the huge investment to adopt
new technology. It impacts on the business process and delay in upgrading the system. In
relation to this, threat is related to the regulatory threats and in this high level of the regulation in
telecommunication sector has threat to telecom company. If the company have the high
investment then it can deal with the threat and enhance high growth rate.
Analysing Porter's five forces for determining competitive advantage from providing customer
satisfaction
As per opinion of Ovidijus Jurevicius (2018), Porter's five force model is a tool that
mainly use to identify intensity of the competition in sector and also its profit level. It is helpful
in examining the business competition at market place. Customer satisfaction aims to identify
requirements of the target segment and through understanding situation of the industry, it can be
further fulfilled. It is considered to be a great initiative which focuses on assessing the position of
the business considering the external business situation as well. 4 com plc deals in the
telecommunication industry and it has strong presence in telecommunication sector (Inderst and
Wey, 2012). The main focus of this organisation is to enhance satisfaction level of consumers so
that their needs and demands can be satisfied effectively. It will help in develop the positive
impact on telecommunication sector. It deals with the factors which outside sector that impact
competition. The Porter five force of telecommunication sector mention below:
Threat of new entrants- In telecommunication industry, new entrants bring an innovation
and the new way for doing the things. It puts the pressure on 4 com plc by minimising cost, and
give new value proposition to consumers (Jenkins and Williamson, 2015). There is a need to this
company to manage all the challenges and also develop better barrier in order to safeguard
competitive edge. In order to overcome from this issue, 4 com plc can innovate new services and
products which can give new experience to consumers. The new entrants in an organisation is a
threat of company so there is a need to 4 com plc to provide the high quality of services to
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consumers for satisfying their requirements. On the other hand, innovation helps in providing the
services and products to consumers as per their needs and wants. From this, company can able to
satisfy customers preferences and also gain the competitive advantage over new entrants in
telecommunication sector.
Bargaining power of suppliers- The organisations in telecommunication sector purchase
raw material from large number of suppliers. In the dominant position, suppliers can reduce
margins that 4 com plc can earn in market. In this, powerful suppliers use negotiation power for
extract the high cost from organisation. The bargaining power is high that reduce profit level of
business. The supplier provides high quality of raw material to 4 com plc company so that it can
able to produce high quality of services and satisfying desires of customers.
Bargaining power of buyers- The consumers are demanding more. Their needs and
demands are changes within limited period of time, they want to purchase better offerings which
available through paying less cost. The bargaining of consumers is high and their ability is also
high to seek enhancing offers and discounts ( Kaplinsky and Posthuma, 2013). It is one of the
crucial aspect which determines how much the customers are willing to pay for a commodity.
Use of porter's model in a connected manner will be helpful for a business in identifying its
profitability in the market. If the market appears to be profitable for a business such as 4Com Plc
then they should further attempt to satisfy the customer through offering value products and
services. In this, if the bargaining power of consumer is high and company is not able to satisfy
their needs then in this case they can switch to the other firm and brand. This can lead to reduce
productivity level of business. So, there is a need to 4 com plc to determine the needs of
consumers and also provide them accordingly so that their needs can be satisfied.
Threats of Substitute Products or Services- When new service or products meet same
customers requirements in various ways, then profitability of the industry suffers. Under this,
threat of the substitute goods is high because it provides the value proposition that different from
the offering of other company. At the marketplace, there are large number of competitors which
deal in the same segment and give same level of satisfaction. So, 4 com plc should make some
innovation in business and provide the high quality services.
Rivalry among Existing Competitors- If the competition between existing players in
sector is intense then it will reduce cost and profit level of industry. 4 com plc company operate
its business in competitive telecommunication industry and competition take to long tern
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profitability of company. In the telecommunication sector, there is large number of organisation
which provide high quality of communication services. 4 com plc should develop adopt the
advanced technology, adopt effective marketing strategies etc. so that it can gain attention of
consumers and also provide the high quality services for their satisfaction.
Analysing BCG matrix to examine the strategic position of business portfolio so that potential of
providing fuller customer satisfaction can be evaluated
On the basis of Annmarie Hanlon (2019), BCG is Boston Consulting group’s product
portfolio that is mainly designed to help with the long- term strategic planning, help business to
include the growth opportunities through reviewing products portfolio to take decision to invest
and develop or discontinue goods. This matrix is based on product life cycle that can mainly
used to identify what priorities should be provided in product portfolio of business unit. In order
to assure the long term value creation, 4 com plc should have product portfolio that includes low-
growth and high growth products which generate more cash. This company use BCG matrix to
analyse the strategic position of business portfolio and its potential. The BCG matrix of 4 com
plc given below:
Cash cow- In this, products have the high market share with the minimum growing
market. If the market is not developing, cash cow gains more benefit through generating higher
revenue because of high market share. It is stable for business and strategy consists retention of
market share (Leiss and et. al., 2013). Under this situation, there is high market share and less
developing market because in the telecommunication sector there are more competitors and each
one focus on enhancing their business and productivity. So, company should provide the services
according to demand of consumers so that their needs can be satisfied.
Stars- The stars are those products which have high market growth and low market share.
In this segment there is high competition level. In telecom industry, competition level is high
and they need to investment more for making money. There is a need to 4 com plc company to
invest more in the marketing activities. In this situation, competition is high so there is a
requirement to 4 com plc to develop the new strategies so that it can able to gain attention of
large number of consumers and gain benefits by satisfying their requirements.
Question mark- These are the products with high market share and growth rate. Goods
can give financial leverage to firm but an inability to capture market share makes them burden.
Under this, an organisation might come up with innovative goods with gain high growth rate. It
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is related to the high market share and revenue because the main focus of 4 com plc organisation
is to satisfy the needs and demands of consumers in an effective way.
Dogs- The goods are classified as dogs when they have minimum market share and the
low growth rate. Goods neither generate the more cash nor need high investment (Macdonald,
2012). In this, company is not able to satisfy the demands of consumers and it impact on their
satisfaction level. It also develops negative impact on the productivity of an organisation.
Analysing how Branding and imaging is used to ensure customer satisfaction
On the basis of viewpoint of Deanna deBara (2019) Branding is termed as market
practice of creating a name, symbol or design that identifies and differentiates a product from
other products. It helps in identifying a product and create its separate identity distinguish from
other products and services. Branding is important not only for creating good market image for 4
com plc but also contributes towards memorable impression on consumers. They influenced with
brand image and attracted to use goods and services offered by 4 com plc. Creating a good brand
image clarify to consumers what extra is served by business then others. Brand image is how and
what consumers and target group thinks for brand. It is a perception in the minds of consumers
and positive brand image helps company to grow and develop over the years. 4 com plc is
serving large number of consumers in UK with a motive to enhance telecommunication services.
Providing quality services that possess value for money helps in creating positive brand image of
the company (Metzger, 2014). The main focus of each brand and organisation is to satisfy the
needs and demands of consumers effectively. In context to this, branding and imaging impact on
the customer satisfaction because the high brand image and positive image helps in develop the
positive impact and consumers take interest in purchase the products for satisfying the needs and
demands of consumers.
Market position is referred as consumers perception of a brand or product in relation to
competing brands or products. Market positioning refers to the process of establishing the image
of a brand for various products offered in a certain way. For establishing a good market position
marketing strategies are used by 4 com plc. Adopting both the strategies for 4 com plc helps in
serving large number of consumers with quality products and give them better satisfaction level
and experience. Serving quality products in long run will create positive brand image for the
company in front of consumers. A positive brand image of 4 com plc will help in sustaining and
competing with other in long run. Product and pricing strategy is best suitable to compete in UK
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telecommunication market. Organisation is serving with quality and variety of products as per
consumers requirement and pricing is done which reflects value for the product offered.
(Pettinger, 2013). In developing the better pricing strategies and providing high quality of
products help in gain the attention of more consumers and provide them goods for satisfying
their needs and wants in significant manner.
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RESEARCH METHODOLOGY
Methodology is defined as general approach to the inquiry in specific field. This is
system of the broader principles from which the particular process many be derived to solve
various issues with specific discipline. Research methodology is explained as highly intellectual
activity that mainly used in research of the nature and deals with manner under which the data is
gathered, analysed and then interpreted (Sparks, 2012). Research methodology is a system of
process, techniques and models which used to search result of research issue. Under this,
information has been gathered for making the effective decisions. It is path by which an
investigator require to conduct an investigation.
Type of Investigation
These are processes, techniques and strategies which use in data collection for analysis to
uncover the new information. It helps in give better understanding about the particular subject
area. There are two type of research methods:
Qualitative method- It is used to understanding the motivations and reasons. This is multi
method that consisting naturalistic and interpretive approach to subject matter. There are some
non- representative cases which are used as sample to create initial understanding (Sparks,
2014). This kind of the research methods consists explaining the particular situation in detailed
manner by using different tools. Its main focus on collecting verbal data as comparison to
measurement. The qualitative research method is concerned with subjective meaning of
experience to a person.
Quantitative method- It is expressed in terms of graphs and numbers. This is used to
establish the generalizable facts regarding topic. Under this, collected data and information can
be analysed by using the mathematical tools. This is a process of inquiry an analysing identified
issue that depends on testing theory that measured through numbers.
In conducting this investigation, qualitative research method has been used because it
provides theoretical knowledge and information regarding the customer satisfaction topic. It
helps in give the detailed information in an effective manner (Thompson and et. al., 2012).
Research Philosophy
It is over- arching term that related with knowledge development and nature of that. The
research philosophy is system of assumptions and beliefs about knowledge development.
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