solution

Engineering the group discussion – the GlobalCash solution

Trying to bring together finance directors and cash managers from the largest companies in Europe to participate in focus groups could be viewed as an impossible task. The logistics of bringing together such senior managers, the rewards they may demand for attending such an event and the question of how much they would reveal to other managers and researchers in such a forum make the whole technique questionable. The solution demanded many months of planning, great expense to create an event that would draw managers together and the careful setting of a context that made managers relaxed enough to be open with their responses. Part of the incentive to complete a GlobalCash survey was an invitation to take part in a ‘closed forum for participants’. This meant that a date was set to present findings from the survey exclusively to participants. The date and meeting place of The Management Centre in Brussels (a forum for ‘serious’ discussion of high quality) were established well in advance to allow managers the chance to put the date in their diaries. The day started with an initial session of presenting statistical findings to the whole group of managers who had participated in a previous survey. As questions were fielded in this forum, particular topics of interest were identified and focus groups (never named as focus groups but as ‘workshops’) were built around these topics. By mid-morning, groups of around 10 to 12 managers were together tackling a theme of importance to them. With a loose set of topics to develop into questions and probes, the format for a focus group was achieved.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

Interfering parents

Hitachi Europe operated from offices in the UK and Germany. They managed transactions with wholesalers and retailers throughout Europe involving the euro and other currencies, e.g. Swiss francs and British pounds. They managed these transactions and the relationships with the parent company in Japan through a number of domestic and international banks. One of the key challenges that Hitachi Europe faced was trying to simplify the process of managing transactions and cutting down on the expense incurred in its thousands of transactions. The first route that it took was to purchase and implement a new accounting system, which in itself took three years from the moment of recognising the nature of the problem through to evaluating possible solutions, negotiations with alternative suppliers and on to buying and implementing the system through to changes in practices and training the staff. The second route was to concentrate the banking business by cutting down on the number of banks Hitachi Europe had accounts with and to develop a new business relationship with a bank that had the international expertise, compatible information systems and service support of the quality level it sought. For an organisation such as Hitachi, choosing a new bank and setting up a new account was not like a consumer going into a bank branch or to a website and selecting a product from a range of standard products. The main obstacle to change faced by Hitachi Europe was the parent company’s insistence that the European offices worked with certain Japanese banks. It is left to your imagination to appreciate the nature and intricacy of the networks and relationships between individuals working in Hitachi headquarters, regional offices, country offices, wholesalers, retailers and the banks that support their operations. Developing a new relationship between Hitachi Europe and a new bank, which would involve the demise of many established relationships, would involve much negotiation within Hitachi and between existing banks and the new bank. For Hitachi Europe, the process started at the time of choosing a new accounting system. Working with the new bank took another two years to complete, five years in all.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

Researching customer priorities at IAG Cargo

IAG Cargo emerged out of the merger between British Airways World Cargo and Iberia Cargo. Its mission is to be the world’s leading air cargo provider. Specialist b2b research agency Circle Research (www.circle-research.com) worked with the organisation before its merger to identify what really mattered to its customers.
As with many b2b organisations, success is measured by operational metrics; for example, in this industry, numbers of waybills written, proportions of shipments flownas-booked and success in notification of delivery. These metrics are business-and employee-performance indicators but are not directly related to customer satisfaction or loyalty. They may measure success but cannot shed light on what matters to customers.
A series of in-depth customer interviews were scheduled in the organisation’s principal trading locations: USA, Germany, UK, India and China. The discussions were informal and enjoyable and ensured participants opened up and spoke freely. Circle also used a variety of exploratory and projective techniques to identify the most important ‘moments of truth’ when customers come into contact with the airline. Importantly, the ways in which those moments of truth sometimes fail to live up to expectations and a definition of excellence was elicited.
Armed with this information, Circle used a series of internal focus groups to establish how employees viewed their customers. What did they feel to be the most important customer priorities and, of course, what was preventing them from offering the best possible levels of service at each of those key moments?
Circle then quantified performance across the key customer touch points. With over 2,000 respondents, this was the largest survey of its kind and it enabled competitors to be evaluated against the priority touch points. This research then improved not only traditional performance indicators but enabled the customer priorities to be embedded in its culture.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

solution

Size matters

Imagine yourself going on holiday and wanting to exchange your local currency for Australian dollars. All banks can help you make currency exchanges. The transaction is paid for through an exchange rate that is constantly changing and a  commission fee. If you were a small business conducting transactions that involved a few currency exchanges per year, then you may have to pay the ‘going rates’ at your local bank, or shop around for the best rates. However, for a company such as Renault, imagine the variation in its profits depending upon the relative value of the euro to the US dollar and how much it costs for each currency transfer. Think of the currencies that Renault may have to deal in and the number of transactions and flows of funds. To Renault, the fluctuations in currency values and timing of cash transfers are crucial factors that can make the difference between sound profits and a loss. Given the volume of its business and the size of its transactions, Renault would not pay the ‘going rate’ to a bank that you or a small business would. Renault would expect a cash-management banking service tailored specifically to its operations, which may be radically different from the operations and expectations of, for example, BMW. The target markets in cash-management banking sought by major banks are those companies that operate internationally or even globally, dealing in huge sums and a variety of currencies. There may be millions of individual transactions to manage, huge networks of transactions across many countries or very high values to the transactions. When examining the nature of businesses that fulfil these requirements, there are relatively few compared with the total number of businesses, which is why the Global Cash study, conducted on behalf of 15 of the largest pan-European banks, targeted just the largest 5,000 companies in Europe – a very small fraction of the total number of European businesses.

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"