Rule #1: From Needing stuff to demanding experiences
It is a fact that in case of both the firms (Sleep Doctor and Mattress World) shifting prime responsibility for external relationships to the line means that the public affairs people become the specialists. They define the need, have the primary expertise, and can still be the conscience and coach where necessary. This evolution of the role fits in with our efforts to bring community interests to the decision making table at every stage of our planning (Kumar, 30).
Application on Sleep Doctor
When demand is perfectly predictable, Sleep Doctor need not consider shifting when setting the peak price. We should increase the peak price until the capacity constraint is just binding. In other words, we increase the peak price until peak demand exactly equals our capacity. We should have no excess capacity and no excess demand.
Application on Mattress World
Mattress World do, however, need to consider shifting when we set the peak price when demand is somewhat unpredictable. Shifting may further increase the optimal price during the peak-period. Suppose, for example, that we overestimate peak demand and our price is higher than optimal. With that price, our peak demand falls below our maximum capacity and we unnecessarily lose some sales (Fisher, 87).
It considers issues such as anticipated earnings per share, cash flow, effective capital management, gearing, return on assets, and overall investment value. More than half the criteria explored, however, relate to issues that are the stuff of more general corporate reputation, stakeholder perceptions, and strategic positioning. These include issues such as the reputation of the board, CEO and senior management team, cohesive strategic vision, integrity and governance, competitive advantage, disclosure, transparency, quality of Web site, and so on.
Consequently, the firm experienced significant inventory shortages and markdowns as it attempted to guess future sales patterns. In the revised QR strategy, “speculative manufacturing capacity” provides the initial store inventories, and the majority of the season's production is postponed, often in the form of fabric type or styles later dyed to the hot selling colors, until after the early sales season is under way and data are collected with which to improve forecast accuracy. Based on the revised forecasts, the postponed products are completed using “reactive capacity” and a streamlined distribution process to quickly replenish the retailers with the season's hot sellers (Delanty, 50).
Rule #2: From conformity to customization
In case of Mattress World, the deployment of standardized marketing plans offers substantial benefits, which are derived from synergies across markets that can facilitate the attainment of firms' goals (e.g., uniformity in branding, shorter time to market, and a reduction of costs on global scale). The critical importance of international marketing strategy standardization to managers and academicians alike is reflected in its coverage in virtually every comprehensive international marketing resource (e.g., international marketing textbooks). The central issue is whether Sleep Doctor should pursue a uniform strategy across diverse international markets (i.e., standardization of marketing strategy) or conform to the distinct host market characteristics (adaptation or customization ...