Fiction and Untruth in Amadeus by Peter Shaffer Essay

Fiction and Untruth in Amadeus by Peter Shaffer The play â€Å"Amadeus† by Peter Shaffer was not written in order to be a biography of the great composer Wolfgang Amadeus Mozart, much more than this, Peter Shaffer wrote it as a story, rather than a history. In his story he was free to insert fiction to make the play more interesting to a wide audience, as well as to fulfill his purposes. However, musicologists and historians have written several articles claiming that Peter Shaffer â€Å"trashed this immortal†. What none of them can see is that in â€Å"Amadeus† there are situations that are plausible while others are â€Å"fictional ornament†. In this paper I will make an attempt to point what is fiction or untruth. The center of the play lies on†¦show more content†¦On the other hand, Constanze supported the idea that Salieri killed Mozart and she believed that Salieri planned against Mozart during his life. But the medical observations of Mozart can nowadays be diagnosed as several causes, f rom typhus to rheumatic fever, streptococcal infection to cyclothymic disorder, but none related to poisoning. Shaffer probably decided to write this play because of this rumor of a murder between two great composers. This idea, which at that time was indeed plausible, fed Shaffer with inspirations to write â€Å"Amadeus†. Even not being true, Salieri poisoning Mozart was a demand for Shaffer’s play. Again, a play here is a piece of art, not a biography. What seems to be the most important topic of the play is the relation between Salieri and Mozart. As it is seen throughout the play, Salieri’s envy is not demonstrated to others, he treated Mozart with respect and had friendly manners. However, he boycotted Mozart inside the court. Mozart could have had the post to teach Princess Elizabeth: JOSEPH: Herr Sommer. A dull man, surely? What of Mozart? SALIERI: Majesty, I cannot with a clear conscience recommend Mozart to teach royalty. One hears too many stories. JOSEPH: They may be just gossip. SALIERI: One of them, I regret, relates to a protà ©gà ©e of my own. A very young singer. JOSEPH:

Italy Is The Poster Child For Anti Terrorism - 956 Words

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Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition Free Essays

string(154) " acquisition also brings resources, as well as new methods and procedures in the company’s management \(HM Sampoerna’s Annual Report, 2005\)\." IN3N – ORGANIZATION DEVELOPMENT AND CHANGE MANAGEMENT TEAM PAPER SAMPOERNA Guiding Coalition and Anchoring Culture Through Acquisition Disusun Oleh: Adrien Lasserre(Bordeaux) Adhitya Anggripinanto(2009 02 2986) Kokoh Ronald(2009 02 3000) Shauma Nugroho(2009 02 3005) I. INTRODUCTION This paper consists of three parts; organization background, analysis of key success factor, and recommendation. We capture briefly the situation when acquisition happened. We will write a custom essay sample on Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition or any similar topic only for you Order Now Judging from fact that acquisition was succeeded – reaching it goals – we identified that was two key success factors. Guiding by Kotter’s Model we focused on building guiding coalition and anchoring new culture. As our objectives, we recommend some action to Sampoerna’s new CEO which can improve change management in the organization after acquisition. II. ORGANIZATION BACKGROUND PT. Hanjaya Mandala Sampoerna (Sampoerna) is the biggest cigarette manufacture in Indonesia. In 2008, it can sell almost 73. 3 billion unit cigarette, valued up to 33. 9 trillion rupiahs. These stats are the highest among other competitors in the cigarette industry. With terrific product brand like Dji Sam Soe, A Mild, Sampoerna Hijau Kretek, etc, this company became an icon of cigarette industry in Indonesia. Sampoerna’s story of success is inseparable from the history of its founding family. Sampoerna traces its origin to Liem Seeng Tee, a Chinese immigrant who founded the Company in 1913. At his home in Surabaya, Indonesia, he began producing and selling hand-rolled kretek cigarettes, named after the crackling sound they make as they burn. His small company was among the first to manufacture and market kretek as well as non-clove cigarettes on a commercial basis. Kretek cigarettes quickly grew in popularity. By the early 1930’s, Liem Seeng Tee had changed his family name and the name of his company to Sampoerna (Indonesian term for ‘perfect’). However, by 1959, three years after the passing of Seeng Tee, and in the aftermath of Indonesia’s struggle for independence, Sampoerna was once more on the verge of closure. In that year, Aga Sampoerna (Seeng Tee’s second son) was appointed to lead the company, and succeeded in reestablishing and rebuilding the company. Aga’s second son, Putera took over the helm of PT. HM Sampoerna in 1978. During Putera Sampoerna’s tenure, the company established itself as a public company with a modern corporate structure, and embarked on a period of investment and expansions. During the process, Sampoerna consolidated its position as one of Indonesia’s top-tier companies[1]. Sampoerna’s vision is embodied in the â€Å"Three Hands philosophy†. The philosophy embodies the business environment and Sampoerna’s role in this context. The Hands, which represent adult smokers, employees and business partners, and society at large, are the three key stakeholders the Company must embrace to reach its goal of becoming the most respected company in Indonesia. They address each group through: (1) delivering high quality cigarettes with fair value to adult smokers, (2) providing good compensation and working conditions to employees and building a good relationship with business partners, and (3) giving back to the society at large. There are 225 large (28%) and 585 medium (72%) tobacco related industries in 2004 (Central Board of Statistic, 2004). From those companies, only three players leading the market with 68% market share [Exhibit 1]. In 2004, Sampoerna took second position with 19. 91% market share compared to Gudang Garam 30. 25% and Djarum in third position with 18,26% (GAPPRI in Agnes, 009). These three players are competing directly to become a market leader in industry. Sampoerna is well known as an innovative company with creative marketing strategy. We can see it from it phenomenal product called A Mild, the first low nicotine cigarette in Indonesia. May 18, 2005, Philip Morris International (PMI) acquired Sampoerna by buying 98% stake of the company at a price of Rp. 10. 600 per share or in total value of 18. 58 trillion rupiah[2]. This was not only surprising for the company’s internal community but throughout Indonesia. This acquisition is one of the largest foreign investments in Indonesian history (Taco, 2007). Even until today, the company’s internal do not know accurately the underlying reason Putera Sampoerna sold this company. Probably, Putera Sampoerna had seen an opportunity to sell his company in high price. Refer to Richter (2001: 341), so we can call in this case, pressure comes from vision of its owner. But, possibly there were several things considered by Putera Sampoerna in making this bold decision. We analyze them comprehensively to identify the pressures faced by the company. Putera Sampoerna realized that heavy pressures were not only occurred in his company but also in Indonesia’s cigarette industry in general. Those pressures were: a) Government Mandate Pressure (Palmer et al, 2009: 54). The industry has been experiencing great pressure as public awareness of cigarettes negative impacts and demand to regulate them are increasing. One of the laws which regulate tobacco control is legislation Prov. DKI No 2 / 2005 on the control of air (Tempo, June 22, 2009). b) Geopolitical Pressure (ibid, 55) Cigarette industry also faced pressures from many non-government organizations such as â€Å"Warga Indonesia Tanpa Tembakau† (WITT) and â€Å"Yayasan Lembaga Konsumen Indonesia† (YLKI). This issue has become global. It is proven by the UN Conventions – 2 Framework Conventions on Tobacco Control/FCTC. Indonesia has not ratified it yet. c) Hyper-competition Pressure (ibid, 57) The high competition market was also a strong factor that convinced Sampoerna to let go off the businesses. Although famous for its innovation, the company was not able to overtake the domination of Gudang Garam in the industry of clove cigarettes. Putera Sampoerna concluded that cigarette industry will not stay profitable in the future. One striking fact convinced him was the slow growth of the industry. According to Adrian Rusmana, BNI Securities’ Head of Research, in the last three years, the revenue growth of tobacco companies in Jakarta Stock Exchange (JSE) was under the level of 10%; -0. 3% in 2006 rate and 1. 9% in 2007 (Kurniawan, 2009). In the company’s official statement, this acquisition provides an opportunity for it to take advantage from PMI’s knowledge and experience from various countries over decades. In addition, the acquisition also brings resources, as well as new methods and procedures in the company’s management (HM Sampoerna’s Annual Report, 2005). You read "Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition" in category "Papers" For PMI, their acquisition could increase market power, avoiding the cost of new product development, increase the speed of penetrating the market, and avoid the barriers to entry (Agnes, 2009). After acquisition, company achieved its success. Within 1. 5 years, they reached first place in the national tobacco industry with 28. 3% market share in the year 2007 (see Figure 2, more detail in Exhibit 1). In the same year in November 2007, The Indonesian credit rating agency PT. Pefindo upgraded the Company’s credit ratings from id AA+ to id AAA with a stable outlook. This is the first time the Company achieve an id AAA rating. Revenue also showed a growing trend, accompanied by increased net sales and income of the company (PT. HM Sampoerna Annual Report, 2007). The acquisition also speed the company’s business acceleration. In 2008, Sampoerna added more than eight Cigarette Production Partners, 15. 000 new employees, build a new factory in Jakarta, then â€Å"pelintingan† through partners increased by 8. 000 (PT. HM Sampoerna Annual Report, 2008). From those facts we know that the management did the right action to achieve success. Their action proved to be effective based on result they achieved. In early stages of acquisition, Martin Gray King takes the helm of Sampoerna. With his charismatic leadership style, like Putera Sampoerna did the organization growth rapidly in stable situation. Since May 27, 2009, John Gledhill took leadership role in Sampoerna (www. vivanews. com). Now we can recommend him what else he can do to maintain and improve Sampoerna performance. Before that, we have to analyze what make this acquisition works well. III. KEY SUCCESS FACTORS IN ACQUISITION OF SAMPOERNA The acquisition decision brings fears to Sampoerna’s employee. For most employees, the figure of Putera Sampoerna is not only perceived as a corporate leader, but also as a parent that is worthy enough to be considered as role. The acquisition feared would damage the harmonious atmosphere that had been created. Most of Sampoerna’s management was concerned in the decreasing of employee’s motivation. They were worried that there will be a reduction of employees (Yos Adiguna in SWA, 2007). Worker can produce 350 cigarettes/hour, while the machine is able to produce 8000 cigarettes/min. Thus, one machine is approximately equal to 1,500 people. Fears of uncertainty and cultural shock are major challenge to management that needs a planned change management action. Based on eight step model by Kotter, there are two main key success factors in this acquisition. First, they succeed in creating guiding coalition. Second, they make cultural change come last not first. On this part, we discuss about what management did align with some concepts developed by Kotter. 1. Creating Guiding Coalitions The change idea in organization usually comes from groups of people who realize the importance of a change to be done by the organization in order to work better in the future. But the idea is not always accepted immediately by some elements of the organization, such as the employee, the owner, or the CEO. This happens although they already sense the urgency to change. Even the CEO would not be able to make some change if he just fends for themselves without any support from the employees. In Kotter’s Eight Step Process of Creating Major Change, Building Guiding Coalition is one of the early stages of important thing to make a change, because in essence a change who wants to do will not run properly if the plan change will not get support from elements of organization. If the plan to change is supported by an influential group of the company, the next process will be carried out more easily, especially in expanding the vision, mission, strategy and communication of the change process (Kotter, 1996:51). All top executives considered this thing when decision gets final. Putera Sampoerna summoned all the leaders and gathered them in one big room to announce the acquisition decision. Putera Sampoerna directly builds coalitions to notify changes. All the people obey the Sampoerna family ansd no one questioned the reasons behind the decision. Putera Sampoerna directly coordinate all these leaders, calling them as ‘change agents’ to transmit the spirit as change agents to all Sampoerna’s internal parties, and ordered them to spread the information to the lowest level within the organization (SWA, 2007). Realized this step should be arranged quickly, he make it quickly executed. Monday, 13 March 2005, the draft notification is made for the acquisition news sent to all employees of Sampoerna promptly at 9 am. Velocity in the notification is critical to prevent the rumors come from outside. After the information communicated to all employees, then they understand. At the operational level there was nothing really changed, except for expansion. What will they feel may be more adherences to the rules and improved overlooked. That does not mean that once Sampoerna not obey the rules, but the assertion that the rule is an area that could follow it becomes thick, because it is the value of Philip Morris. What makes Sampoerna’s change agent succeed in guiding coalition? Kotter said a strong guiding coalition needed – one with the right composition, level of trust, and shared objectives. In term of making right composition, first important thing is Putera Sampoerna and PMI’s leader at that time (Martin King) involved, engaged, and committed to the change. If Putera Sampoerna just let go without making a good coalition, maybe realities come contrary. Martin King continued his predecessor becoming the change leader in the organization so Sampoerna will ensure they have leader’s support for change. Putera Sampoerna also selected peoples who have strong position power, broad expertise and diversity, and high credibility within their circle of influence. When the information has spread, there was resistance from some parties, although a small number, including several directors. Some of them even chose to resign. Most workers accept the decision because management promised no changes in operations; all will still be working as usual. The resistance does not occur because of all the elements felt the certainty of their fate. Kotter (2009: 163) stated that resistance can occur because of fears of status uncertainty. Besides, the lack of resistance is also due to the factors of good communication and high level of trust in employee. After they had sufficient powerful persons and mutual trust, now it’s time to deal with what new shared visions. In Kotter, we need to create shared vision in coalition when all the members of the group want to achieve the same objective and real teamwork become feasible. Vision in this term is related with Martin King’s vision about Sampoerna in the future. Martin King demanded Sampoerna to improve acceleration, starting from the quantity and quality of products, as well as human resources, considering the very dynamic business changes. This is a key strategy of the future development of Sampoerna. Continuous improvement being implemented by the Sampoerna with employee development systems, management and control report, reward punishment, as well as information technology systems / IT (PT. HM Sampoerna Annual Report, 2005). Vision and mission are translated into the main target. One of the targets that best describes the spirit of change in Sampoerna is to become a market leader in the national tobacco industry in the next five years. After building a vision and make measurable targets, then for all elements have to work harder than before achieving it goals. 2. Culture Came Last Not First One of change challenge faced from acquisition is cultural adjustment (Palmer, 2009: 105). In Sampoerna acquisition, the challenge is the cultural adjustment because both of two companies came from different countries, different area, different operating systems and procedures that can often lead to conflicts. The way in which this is managed can be a major determinant of the success or failure of merger. There will be a culture shock if it wasn’t treating properly. The cultural is refers to norms of behavior and shared values among a group of people (Kotter, 1996). Norms of behavior are common or pervasive ways of acting that are found in the group and that persist because group members tend to behave in ways that teach these practice to new members, rewarding those who fit in and sanctioning those who do not. Shared value are important concern and goals shared by most of people in a group that tend to shape group and that persist over time even when group membership changes. In the big company such as PMI and Sampoerna, one typically finds that some of these corporate cultures affect everyone and that others are specific to subunits. The culture that exists in the organization is the most powerful forced in change management, because: (1) Individuals are selected and indoctrinated so well (2) The culture exerts itself through the actions of hundreds or thousands of people, and (3) It happens without much conscious intent and thus is difficult to challenge. Because culture so powerful, when the new practices made in a transformation effort are not compatible with the relevant cultures, they will always be subject to regression. Management realized that the culture problem is one of the critical factors in the acquisition of the company. This will hamper the achievement of goals if the accumulation of it not at the right proportion. Therefore, he will not intervene in the existing culture and prefers to focus on the company’s strategic plan forward. Sampoerna’s cultural remains will be preserved as such because prior to the acquisition, Martin considered that the culture in Sampoerna is already very good and strong – a local company with international workings (SWA, 2007). This is also the reason why he only brought 14 of his staff and entrust some of the top management to the the previous leaders of Sampoerna. PMI, basically from USA, has its American Culture. The style of American in being outspoken at giving opinion is very different to Javanese culture that tends do the contradictory. In American style, criticism is usually thrown straightforward and sometimes spicy but still in the context of work, not personal. On the other hand, Sampoerna’s staff is very polite, lack of courage in conveying thoughts in mind, and not straightforward. They are not talking about right or wrong, but rather to complement each other. Other Javanese culture will be maintained by PMI. One is in terms of product launch time, raising the selling price, and a meeting with the Javanese calendar system. Other culture, such as it’s a tradition that Sampoerna always budget cost for the â€Å"pawang hujan† at the launch of its products. PMI which is a foreign company, although did not understand, still follows these tradition. This made the PMI headquarters confused when auditing the financial statements because of the ‘unique’ cost. Martin, as PMI representative in Indonesia must explain that this is common in Indonesia. PMI‘s culture was also signed to strengthen the existing Sampoerna culture. The use of English is increasingly common not only in top management but also in the middle management; both oral and written. In lingual matters, Martin did not have problem because he can speak Indonesian and Sampoerna himself always recommend English to be used by every employee (Hidayat, 2007). Culture acculturation can be seen in [Exhibit 2]. From those, referring Kotter, we can conclude that change in culture come to last not first. But, in this case we see in different point of view that culture problem prevent early. They know it will caused problem, so they prevent it with choosing company (Sampoerna) which has similarity in culture. The fundamental similarity is that both companies have a passion to become the market leader. Also, both have a behavior and a willingness to improve them to perfection. When judging Sampoerna, PMI found that culture in Sampoerna is good and strong, so they don’t need dramatic change, just little adjustment. Referring to Lewin’s theory of cultural formation (Kurt Lewin in Schein, 2004: 319-329), acquisition of Sampoerna has four phases. Four phases are the explorations phase, unfreezing phase, merge phase, and freezing phase. The first phase, exploration, should already be identified where the cultural similarities and differences between the parties, and goodwill to achieve the best should remain preserved. The second phase is to dilute the old culture to the parties in the merger. The third phase is merging cultures, or the forming of cultural synergy, usually by defining a new culture, through education or training, coaching, mentoring, and so on. The fourth phase or freezing is realized by various artifacts such as logos, colors, physical appearances of the building, and so forth, as well as organization’s system such as regulation, the definition of a new culture, reward punishment, and furthermore, the stabilization is continue done by gathering activities, and so on. The first and second phase faced wisely by PMI so Sampoerna is now in the third stage, and was relatively easy to be done, because the critical point is in the second phase. PMI as the new owners did not implement their culture to be dominant. Similarly Sampoerna with the Javanese culture, that has a desire to become more globally. IV. RECOMMENDATIONS The next year, the story of Sampoerna has dramatically taken a new direction; the firm has suddenly moved from an Indonesian family-owned company to an American global company. As results, Sampoerna had to adapt itself and challenged major issues. The change process has been really successful and Putera Sampoerna passed the relay to Martin Kings and now to John Gledhill, avoiding too much troubles. Nevertheless, we can wonder what can be the reactions of the labor force if the company faced other issues in the future. For sure, even if John Gledhill is very skillful, he doesn’t have the aura of two former CEO. Then, the markets move more and more fast and conduct the company to adapt quickly. So, can the change process be implemented in the same conditions in the future? In other words, how the new CEO of Sampoerna can keep implementing successful change process in the future? Here are our recommendations. †¢ Building the Guiding Coalition The Sampoerna family has a really special place in Indonesian mind; the successful story of the company and the charisma of its leaders had led to create individual governance under the control of monarch-like CEO. Indeed, despite of the increasing size of the company and fast-moving industry, what Putera Sampoerna said, people did. Now, the situation is definitely different in many aspects. First, John Gledhill can’t have the same influence on the employees company as his predecessor. He is a foreigner, coming from a major global company and could be suspected not to focus on Indonesian interests, unlike Putera Sampoerna. Second, the tobacco industry is obviously an unstable sector. Law pressures, growing health considerations, strong competitions make the market more and more complex. Today’s business environment clearly demands an efficient decision making. Considering these two factors, it appears that leading the new company with the same leadership style could at least be very difficult and most probably impossible. So, to tackle that issue and build a relevant change governance structure, we can suggest John Gledhill to create a strong guiding coalition that can make change happen. As Kotter said, there are three steps in building strong guiding coalition. We recommend what CEO should do based on these. The first step of this process is to find the right people; that means people with strong position power, broad expertise, high credibility, and overall leadership and management skills. Being sure of leadership skills of the change team members is a key to achieve the goals and special efforts to assure of it must be done. Considering the structure of Sampoerna [Exhibit 3], we think that John Gledhill must involve each part of the organization to build the next guiding coalition. The first reason is that to be enough efficient, the guiding coalition has to be aware of all the aspects of the company. Indeed, in such a complex and fast-moving market, developing a vision and taking strategic decisions quickly and efficiently become more and more difficult. To succeed in the future, the CEO must lean on the specific knowledge of each department’s top managers. In fact, with such a coalition, the information would circulate faster and in better conditions. The other reason that supports this choice is the fact that if each division of the different departments are represented in the guiding coalition, then the trust inside the company would be reinforce. We consider that this kind of coalition is able to increase the feeling of sharing the same goals and doing things in the same direction. If people think that the quality of their job is decreased because other departments don’t go in the same way, they would low their efforts as results. So, concretely, we recommend John Gledhill to build the guiding coalition not only the director of each department but also the head of each subdivision. Considering the organization structure of Sampoerna, the coalition will consist of 25 persons. One obstacle is to assure that the directors and managers have sufficient leadership skills to join the guiding coalition. We suggest John Gledhill measuring their ability to do the job properly and take the decisions required if not. That means don’t hesitate in firing the weakest people and hiring good leaders to increase the efficiency of the coalition. The next step of building a guiding coalition leans on creating trust among the team. Team building today usually has to move faster and Sampoerna’s CEO must conduct the process efficiently by using carefully planned off-site events with lots of talk and activities. The last step deals with the necessity to develop common goal inside the team work. Typical goal that can be chosen for Sampoerna is a commitment to excellence, a real desire to make their organization performs to the very highest level possible. Indeed, the common goal must be both sensible to the head and appealing to the heart. The combination of these elements leads to a powerful coalition with the capacity to make future change happen despite all the forces of inertia. †¢ Developing and Communicating A New Vision The success of the change process in Sampoerna must not hide the fact that some employees can feel uncomfortable with the growing uncertainty in the company. An acquisition is a major change in the mind of people, even if processes in operational level don’t change in the first time. Martin Kings had to be aware of this issue and deal with decreasing the potential fears or skepticism inside the company. Now Sampoerna lead by John Gledhill and he has to aware those concern too. Developing and communicating a new vision is the solution to give to people the answer to their question. In fact, in order to implement future change in the company, vision is definitely essential. If new vision is not built, the feeling of risk and, so on, resistance to change could be an unsolvable problem when implementing a new change. Moreover, it allows simplifying many detailed decisions, it motivates people to take action in the right direction, and helps coordinate the actions of different people. We can recommend Sampoerna’s CEO assuring that the vision is imaginable, desirable, feasible, focused, flexible, and communicable to be understood and shared by the whole company. For instance, next vision could be becoming a strong global brand able to develop itself on international markets. Then, to communicate the vision, John Gledhill and his guiding coalition have to respect key elements in the effective communication. Metaphor, analogy and example must be preferred to incomprehensible jargon and must be communicated many times under multiple forums (big and small meetings, memos, newspapers, etc). Furthermore, behavior from important people must be appropriate to reinforce the message: they have to act as examples, try to explain seeming inconsistencies, and listen to people interrogations. To sum up, the new vision or strategy of the company is an essential step to anticipate future change process. People must understand and share the company vision to involve fully in the necessary change. †¢ Anchoring New Approaches in the Culture When Martin Kings took the head of Sampoerna, he underlined the fact that PMI believed in the former corporate culture. He said that the Javanese company was really adapted to the Indonesian market and that the new orientation of Sampoerna would still lean on the values built by the founders. Philip Morris, as a global company, is experienced in such an acquisition and executives are obviously aware of how anchoring new approach in the culture of a company is difficult. So they decided to take time before dealing with that sensible issue. Therefore, even if Sampoerna’s corporate culture seems to be efficient, PMI has to integrate little by little its own values. Indeed, being part of a global company means share a common main culture (particularities can obviously survive). We can recommend John Gledhill first to be patient: the acquisition has just happened and people must be really sensitive regarding that kind of change. In fact, culture can be considered as the last step in change management process. Moreover dealing with culture issue is very difficult because of its own nature. Some aspects are almost not visible and some others not at all. Saying that doesn’t mean doing nothing; we suggest John Gledhill to implement few changes in the approach of each step of the change process. That means he has to give to Sampoerna a â€Å"Philip Morris Touch†, especially considering efficiency and results. We think that managers and mid-level managers are able to disseminate the values if they are involved enough. To conclude, anchoring new approaches in the culture would be very difficult, John Gledhill must do it very patiently with a great humility if he wants to success. V. Conclusion Overall, the steps taken by management in conducting a post acquisition changes are very good, especially in a guiding coalition and cultural adjustment. In building a guiding coalition, management can create a coalition based on the right composition based on the strong position power, broad expertise and diversity, and high credibility within their circle of influence. In addition, management has succeeded in creating a level of trust between the members, and has a good ability in shared objectives. Management also can overcome the cultural problems faced after the acquisition, the many cultural similarities that owned by PM and Sampoerna cause the process of cultural assimilation is not working too complicated. Although in essence PM have a different culture with Sampoerna, Management still retain the the old culture to avoid cultural shock within the organization. Bibliography Books Kotter, J. P. 1996. Leading Change. Boston: Harvard Business School Press Palmer, Ian. , Richard Dunford, and Gib Akin. 2009. Managing Organizational Change. New York: McGraw-Hill Schein, Edgar R. 2004. Organizational Culture and Leadership. USA: John Wiley Sons. Newspaper and Magazine SWA Magazine. HM Sampoerna: Padukan Budaya Lokal dan Multinasional. Kamis, 01 Februari 2007. ____________. Ketika Timur dan Barat Menyatu. Rabu, 06 Februari 2008. Tempo Magazine. Indonesia Pasar yang Menggiurkan Bagi Industri Rokok Asing. Senin, 22 Juni 2009. Electronic Reference Sampoerna’s website. http://www. sampoerna. com. Accessed at October 27, 2009. 16. 40 PM http://berita. liputan6. com/ekbis/200503/97974/class=’vidico’. Accessed at October 27, 2009. 15:30 PM http://bisnis. vivanews. com/news/read/61146-john_gledhill__dirut_baru_hm_sampoerna. Accessed at November 5, 2009. 13:30 PM Kurniawan, Agnes. 2009. Why Putera sold his Sampoerna. Accessed at October 27, 2009. 15:30 PM. ______________. 2009. Analisis Industri Rokok Nasional 2007-2008. Accessed at October 27, 2009. 16:38 PM. ______________. 2009. Kenapa Philip Meminang Sampoerna dengan Mas Kawin Sedemikian  Besar. Accessed at October 27, 2009. 16:30 PM. ______________. 2009. Perubahan Sampoerna di Tangan Philip Morris. Accessed at October 27, 2009. 16:22 PM. Taco, Tuinstra. 2007. A New Chapter. Accessed at November 2, 2009. 15:12 PM. Institution Central Board of Statistics, Indicator of large and medium enterprise, various years (the latest publication was in 2004) PT. HM Sampoerna Tbk. Annual Report 2005. Jakarta. 2006. __________________. Annual Report 2007. Jakarta. 2008. __________________. Annual Report 2008. Jakarta. 2009. Exhibit 1 NATIONAL CIGARETTE INDUSTRY MARKET SHARE 2003-2008 (in percent) |COMPANY |2008 |2007 |2006 |2004 |2003 | |Djarum |18. 0 |20. 4 |17. 2 |18. 26 |18. 71 | |BAT Indonesia |2. 4 |2. 3 |2. 2 |2. 54 |2. 86 | |Others |22. | |Batik uniform, black dress. |Batik uniform, black dress. | |Meeting date: 9, 17, 29. |Meeting date: 9, 17, 29. | |â€Å"Pawang hujan† when launching products. |â€Å"Pawang hujan† when launching products. | |Employee rather reluctant to talk with the boss ( Javanese |Employee more outspoken sharing their opinion ( Straight to| |preferred manners. |the point, provoked more sales-oriented, more creative, and| | |more initiatives with a global outlook. | |At managerial level, everyday conversations in English | | |People are encouraged to become more high-achiever, with | | |opportunity in career development, to branches of PMI in | | |another country. | Sourc e: SWA Magazine, February 6, 2008. Exhibit 3 SAMPOERNA ORGANIZATION STRUCTURE [pic] ———————– [1] Cited from company’s website; http://www. sampoerna. com; accessed at October 27, 2009; 16. 40 PM [2] Cited from http://berita. liputan6. com/ekbis/200503/97974/class=’vidico’; accessed at October 27, 2009; 15:30 PM ———————– [pic] Source: Annual Report, 2005-2008 Figure 1. Sampoerna’s Net Income and Sales 2004-2009 We provide general recommendation to CEO of Sampoerna about building guiding coalition and anchoring new culture post acquisition of Philip Morris. Acquisition gets its objectives and makes significant results to organization. What makes it succeed? What should they do next in term based on their key success factors? DOSEN Dr. Ningky Sasanti Munir, MBA Ir. Setiadi Johar, DBA Soekono Soebekti, PhD Tjahjono Surjodibroto, MBA WIJAWIYATA MANAJEMEN ANGKATAN LXI STM PPM MANAJEMEN JALAN MENTENG RAYA NO. 9. JAKARTA [pic] Source: Annual Report, 2005-2008 Figure 2. Sampoerna’s Market Shares 2004-2009 ———————– 2 How to cite Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition, Papers

Limitations of Marketing Research free essay sample

Explain the limitations of marketing research used to contribute to the development of Nivea. No matter how small or large a market research project may be, any type of research performed poorly will not give relevant results. In fact, all research, no matter how well controlled, carries the potential to be wrong. There are many reasons why research may not give good results but a common problem is deciding whether the research is really measuring what it claims to be measuring. There are 3 types of limitations of market research. These are Cost effectiveness, reliability and validity of data collected. Reliability is chiefly concerned with making sure the method of data gathering leads to consistent results. For example; Nivea need to make sure that in their market research that they were asking the same questions asked of each person, was the sample big enough and reflective of the people who will use/buy the product would the same results be obtained from a different set of people. Reliability estimates the degree to which a product is measures in contrast to validity which involves the degree of accuracy. In research, Nivea will want to use measurement tools that are both reliable and valid. They will want to create questions that offer consistent responses when asked multiple times as this shows reliability. Validity asks whether the research measured what it intended to. Validity implies reliability: a valid measure must be reliable. But reliability does not necessarily imply validity: a reliable measure need not be valid. Validity is usually considered more important than reliability, because if an instrument does not accurately measure what it is supposed to, there is no reason to use it even if it measures reliably. Nivea needs to consider when carrying out their market research for a product is does the product measure what it claims to measure and is it accurate, this reduces the chances of the business making the wrong decision. If they so happen to make the wrong decision this will affect one of its marketing objectives which is to retain customers and gain new ones, if the validity of their data is not correct then they will not reach this marketing objectives as customers opinions of the company will differ. Costs are also an important consideration in market research, Nivea need to consider whether or not the product theyre promoting is cost effective. Their market research has to weigh up the cost of undertaking the research against the potential benefits that may result. You could spend a lot of time and effort in trying to solve a problem through market research, only to find that the solution may not be worth implementing. Also, marketing is one of the few areas of a budget that can be reigned in without hurting Nivea too much as they are a very successful business however, one of their marketing plans is to continue producing successful skin products and boost sales yearly. To do this they have a few cost-effective ways that a company can market its products. Search Engine Optimization- Niveas customers are no longer waiting for direct mail pieces to arrive before ordering–they are finding products when they want them through Internet searches. In fact, almost 90% of new visitors to a web site originate from major search engines. And clearly, a top ranking on Google can translate into hundreds or thousands of visitors– and orders–a month. As web pages proliferate, increasingly more aggressive search engine optimization strategies are needed to remain visible to Niveas customers. Permission-based Email Marketing. Permission is the difference between legitimate email marketing and spam, turning email marketing into a highly cost effective marketing strategy. The idea is simple and time tested: Nivea deliver highly relevant, timely, and personalized email messages to their customers and prospects at a fraction of the cost of direct mail to avoid any cost limitations. 3. Public Relations- News releases, white papers, case studies, awards, and sponsorships of educational events are just a few of the relatively inexpensive ways Nivea keep their brand name in front of other competitors. Although these methods have succeeded so far for them in the near future they will have to alter their methods as well as their approach to the types of market research they decide to carry out, otherwise poor market research will increase the chances of Nivea making a wrong decision. D2) Make and justify three recommendations for improving the validity (the extent to which a test measures what it claims to measure) of the marketing research used to contribute to the development of your chosen organisation’s marketing plans. In this assignment I will be explaining how Nivea uses marketing research for its marketing planning by applying a Marketing Planning Process Model, a SWOT analysis on Nivea – giving at least 3 factors for each box) and their SMART objectives (stating what their business objectives are/might be) Marketing planning is concerned with establishing objectives and goals, allocating resources to meet these and setting out a clear plan of action. It also involves setting out ways of evaluating performance against marketing targets. Typically, the marketing planning process involves: a PESTLE audit, a SWOT analysis, setting SMART objectives, determining strategy and tactics, implementing strategy and tactics and evaluating effectiveness of marketing activity. A Marketing planning process model involves a PESTLE and SWOT As part of the marketing planning process, Nivea has to analyse its external environment. One useful way of analysing the external environment is by grouping external forces into six areas using a PESTLE analysis. PESTLE stands for political, economic, social, technological, legal and environmental influences. Political factors that affect a business are usually beyond the control of the organisation. However, the business needs to anticipate changes and identify the action it needs to take to either make the most of an opportunity or mitigate a threat. For example, a political factor that Nivea need to consider is that during a recession, any banks or financial services providers would have to consider the likely government scrutiny of any of their business decisions. Economic factors can affect the performance of a business. These relate to he national – or international economy. A economic factor that can affect Nivea are the periods of prosperity that they go through. This can happen in three ways for example when high employment and income drives demand within the organisation. It can also happen in the form of recession when demand falls, leading to lower income and employment within their organisation. Furthermore, in the form of recovery, when demand, income and employment gradually rise within the business. Social factors relate to the values and beliefs of society. This includes the population’s demographics (for example, size, gender, ethnicity, income, education, occupation). These social factors provide useful information for Nivea as it allows them to target their services at broad segments of the population, such as newspapers and magazines. Technological developments can affect businesses in a range of ways. For example, the development of e-commerce benefited business such Amazon. co. uk. Due to the rise in e-commerce Nivea had to produce a e-commerce website which eventually took business away from traditional shops.. Legal developments affect businesses in a range of ways. For example, if there was a change to the Data Protection Act it would affect Nivea and all other businesses that hold customer data. For example If a change in the act occurred then Nivea may not be able to expressly agree to the use of personal data for advertising or marketing purposes any more. Environmental factors can relate to the social, political and legal aspects affecting a business. For example, if Nivea decide to package their cream products in recyclable packaging. This may prove to be popular with consumers if there is a growing level of concern over waste. Similarly, the government may put pressure on businesses to increase the amount of recycling. SWOT analysis A useful approach to examining the relationship between a business and its marketing environment is by conducting a SWOT analysis. SWOT stands for: †¢ Strengths †¢ Weaknesses †¢ Opportunities and Threats. Strengths and weaknesses are internal to the business and can include issues such as the buildings, quality of the staff, IT systems and so on. The external element looks at the opportunities and threats present in the environment in which the organisation operates. Carrying out a SWOT analysis requires research into an organisation’s current and future position. The idea is to match an organisation’s strengths and weaknesses with the external forces (opportunities and threats). SWOT analysis draws together all the evidence from the various analytical techniques used. It is a way of producing a summary, which then provides the basis for developing marketing objectives or aims and ultimately strategies or plans. Strengths refer to the internal features of Nivea, which provide a competitive advantage. An example could be a highly efficient IT system which they use to design their products. The company also has a sound financial base, so it had the resources to put together a strong marketing campaign. Also, Nivea has staff with relevant skills – researchers with the scientific skills to develop products that men want and marketing staff with the skills to help promote these products effectively. Weaknesses are internal aspects of the organisation, which may not stand comparison with competition or are not performing effectively. An example might be major concerns and questions that Nivea have when launching a product For example; Was the product range still relevant for the target audience? Did it have the right sales and distribution outlets? Was its market research up-to-date? Opportunities focus on events and developments external to an organisation. This might include new territories for a product or service. Opportunities that Nivea will want to undertake is to open a new segment of a market. Also, NIVEA FOR MEN had seen an increase in the sales of male skincare products and it wants a greater share of this market, Nivea might might consider this. Furthermore, the company wants to take advantage of changing social attitudes such as men becoming more open, or certainly less resistant, to facial skincare products. Threats are developments external to the organisations, which could damage overall performance. These threats can originate from governmental policy, such as an increase in corporation tax or new laws. Threats to Nivea are consumers who are becoming more knowledgeable and price conscious. They often expect sales promotions such as discounts and offers. Also, the risk of competitors entering the market.