Untitled Deck Flashcards
(19 cards)
HOW TO IMPROVE PROFITABILITY
Revenue
- New products:
o Formal training courses in conservation of historic sites courses
o Corporate or wedding events at the site
o Shops in shopping areas
o Sell shop products online
o Offer life time membership
- Improve growth in number of members and visitors by investigating the reasons for slow down
- Collaboration with travel companies and hotels to increase number of visitors (e.g. Tourists)
- Marketing / Technology:
o Big data analytics
o Mobile apps
o Fund raising events
o Virtual / online tours / live streaming to increase reach and target younger generation
o AI tour guides (using headphones)
o Loyalty schemes
o Affiliate marketing (influencers, bloggers, celebrities)
o Corporate sponsorships
- Indulge in CSR activities to improve visibility and brand image
- Focus on environmental initiatives to attract green donors, members and visitors
Staffing / Cost efficiencies
- Staff training to improve productivity and efficiency
- Efficient use of volunteers / more volunteers
- Automation in various processes such as HR, finance, procurement, etc.
- Tighter budgetary / cost controls
- Long-term contracts with suppliers and contractors to avail discounts
- Better inventory management (shops and café)
- Focus more on digital marketing compared to physical marketing as digital marketing is cost
effective
PESTEL
Political
FAVOURABLE as due to CSB regulator, donors will feel more confident in giving donations. Also the government as
exempted tax for charities
UNFAVOURABLE as there is CSB Regulator , established by Eardisia’s central government, who is strtict and have a
lot of requirements to comply with
Economy
UNFAVOURABLE as Eardisia has economic recession leading to fall in disposable income of people and hence fall in
donation, number of members and visitors
Social
FAVOURABLE as a lot of people donate to charitable cause (5m members). Also people like to volunteer (20000
volunteers)
Technological
FAVOURABLE as people can pay donations online. Also charities use social media and emails for marketing. People
can buy gifts and souvenirs online
Ecological
UNFAVOURABLE as there is high awareness in people and performance is measured against increasingly rigorous
sustainability targets. Climate change and adverse weather conditions also affect the sites.
Legal
UNFAVOURABLE as there are stringent regulations relating to audits, risk management and control reports by CSB
regulator. There is also data protection regulations.
PORTER 5 FORCES
Power of customer
HIGH as donors and members contribute on their own free will i.e. there is no compulsion or force on them
Power of suppliers
HIGH for conservation work contractors as it requires specialist staff
LOW for shops and café suppliers as we are the largest charity
Threat of new entrants
LOW as most heritage sites are with HP and LTP. Also, there is strict regulator (CSB) and there is economic
recession which will discourage new charities to open for the time being
Competition
Low as HP is the largest heritage charity for over 300 years old sites.
Substitute products
HIGH as donors receive requests from many charities. Charities which are in the news at a particular time may
receive more donations, but this means that donors will give less donations to other charities
INTERNAL FACTORS (ALSO CALLED SOURCES OF COMPETITIVE ADVANTAGE)
Staff
HP has 4000 employees. Some staff have been working with HP for a long time and staff are willing to
work for less salary because of their commitment to HP’s mission
Volunteers
HP has 20000 volunteers who work at the sites, thus helping HP to save significant staff cost. However,
they can discontinue any time which can affect the working hours of the site and visitor experience
Financial resources
HP has been making operating profits for several years. It was able to purchase some sites with its own
funds. However, the profit margin has been declining due to falling income and rising costs.
IT
There is adequate IT systems to meet business requirements. IT systems are fully compliant with data
protection regulations. Donations can be paid online through website. But HP does not use big data
analytics or apps.
Brand
HP has existed since 120 years and is the largest heritage charity having 350 sites. It has 5m members
hence it has a strong brand and reputation
Ancient sites
HP has 350 sites over 300 years old which are unique assets and can help attract a lot of visitors
Governance
HP has a two tier board. Members are involved in appointing the Board of Trustees. It has 3 board
committees (audit, nomination and remuneration). Hence it has good corporate governance procedures
in place. However it does not have any risk committee.
TWO TIER BOARD
1- Board of Trustees
▪ Consists of Chairman and NEDs
▪ Focuses on strategies
▪ Supervises the Executive Board (see below)
2- Executive Board
▪ Consists of CEO and executive directors
▪ Responsible to implement strategies
▪ Focuses more on operational and day-to-day management
Advantages & Disadvantages of a Two-Tier Board:
Advantage Disadvantage
▪ Segregation of duties
▪ Greater independence (NEDs have upper hand)
▪ Higher stakeholder confidence
▪ CEO cannot dominate the NEDs
▪ Slower decision making
▪ BOT less aware of operational matters
▪ Executive board demotivated due to limited
involvement decision making
▪ Information sharing by executive board
might be poor
▪ Dispute or conflict between two boards
PUNCH LINES FROM PRESEEN:
- HP has a two-tier governance structure with a board of trustees and board of executive directors
- Board of Trustees has 9 members AND is responsible for overall control and management of HP,
and for developing its strategies in consultation with the board of executive directors
- HP as 6 executive directors and is responsible for the day-to-day management of the operations
of HP and is headed by the CEO
Advantages of E-Business
- Global reach / no geographical limitations leading to increased customers and revenues
- Lower cost (since no physical presence is required)
- Customer convenience and saving
- Able to attract younger generation
- Provides competitive edge
Disadvantages of E-Business
Disadvantages:
- Not all customers use internet
- Requires IT expertise
- Risk of hacking, data leakage and Cyber crimes
- High dependence on technology
- Data security and privacy legislations
- One time investment
PUNCH LINES FROM PRESEEN:
- Donors can pay donation online through the website
- Some charities also sell their products online
- Growth in revenue is slowing down
Tools used in E-Marketing
- Emails
- Website
- Search engine optimization
- Social media marketing (facebook, insta, twitter, youtube, whatsapp, tiktok, etc)
- Links on various related websites
- Communities, forums, blogs, Influencers
Advantages of E-Marketing
- Global reach / no geographical limitations
- Lower cost
- Personalized marketing
- Customer convenience
- Data analytics
- Able to attract younger generation
- Easy two way communication
- Able to obtain customer feedbacks
- Provides competitive edge
Disadvantages:
- Not all customers use internet
- Requires expertise
- Risk of hacking, data leakage and Cyber crimes
- Data security and privacy legislations
PUNCH LINES FROM PRESEEN: - Marketing in charity industry is done through TV, mail posts, texts messages, fund raising events
(physical or conventional) and social media and emails (digital) - Charities save contact details of donors and focus marketing campaigns for obtaining recurring
donations (personalized or targeted marketing) - Younger generation (school and college students)
- Growth in number of members and visitors is slowing down
Advantages of big data
- Deeper insight into latest customer needs and trends
- Offer customized product
- Personalized and targeted marketing
- Increase customer satisfaction and retention
- Higher revenue / market share
- Competitive edge
Disadvantages of big data
- Data security and privacy
- Legal compliance and complications
- Requires technical expertise
- One time investment
PUNCH LINES FROM PRESEEN: - HP has a website
- Charities save contact details of donors and focus marketing campaigns for obtaining recurring
donations - Growth in number of members and visitors is slowing down
USE OF MOBILE APPS
Benefits
- More accessible / handy / convenient
- Notifications / reminders / popups
- Two way communication / better engagement
- Feedbacks and complaints
- More personalized
- Able to attract younger generation
