The State Board of Nursing Agency Overview

I chose to review the State Board of Nursing for the state of Ohio at, www. nursingohio. gov. The mission of the Ohio Board of Nursing is to actively safeguard the health of the public through effective regulation of nursing care ( www. nursing. oho. gov; June 2013) The agency offers nurses the ability to renew licenses and certifications online, enroll into refresher courses, sign up for state conferences and review laws and rules of the State Board. The agency holds its standards and requirements to its nurses to the up most. While researching information I found that any actions that our field against board members are located on the site as well as any disciplinary actions that may take place. In January of 2013 I located 256 disciplinary actions from indefinite suspensions, to permanently revoked license, to hearing actions. Then 44 monitoring actions from urine drug requirements, lift of narcotic restrictions, and approved to accept employment actions. The agency supports the patients that each member comes in contact with. The State Board requires each member to practice nursing safeguards. Making sure that every nurse is familiar with laws and rules that affect his/or her practice. As well as providing trainings, assessments to keep every member up to date to prevent penalties. The State Board also provides a listing for education purposes for associate degree programs that are offered in many different cities in Ohio from Akron, Ohio to Cincinnati, Ohio. Each school is to meet the Boards requirements and allows a student to see if a college is conditional approved, fully approved or provisional approved by the state board. The site also assists with FAQ for continuing education and scholarship and loan opportunities for nurses in the state of Ohio. The Ohio State Board, is not only is available for nurses to review but also allows t the public to know there rights, as well as file complaints if need be. I think the fact that Board makes it know that they hold each of their members accountable to provided quality care shows that they are committed to make sure nurses maintain its high standards.

Fly-by-Night Case

Part A There were many signals shown in the financial statements and other exhibits in the case that represented poor cash flow through Year 14. The most obvious of them all is that the collectability of the accounts receivables was problematic. It seemed as if Fly-by-Night had a good system of collecting their sales on account from year 9 to year 10 as the accounts receivable number decreased during those years. However, the accounts receivable account increased by more than six times through years ten and fourteen.Because of this poor system of collecting accounts receivable, Fly-by-Night’s cash flow would suffer. The same can be said about the inventory account. Because the amount of inventory increased by almost five times through years twelve and fourteen, the cash would continue to decrease at the same rate. Another area of concern that affected Fly-by-Night’s cash flow negatively was their income from continuing operations. All of the companies’ expenses o n its comparative income statement had enormous increases from year 13 to 14.This was the first year that Fly-by-Night recorded a loss from continuing operations and it was a pretty big loss. This suggests that they paid too much to run their business. Some of the ratios presented in the case also suggests a negative flow of cash for year 14. The long term debt ratio dropped from 88% to 0% in year 14, which means that the company paid all of its long-term debt in year 14 and that would have a huge impact on cash flow.The quick ratio also had a major drop from year 12 to year 14, which indicated that the amount of cash and accounts receivable to cover its current liabilities was becoming a problem. Part B I do not believe that FBN can avoid bankruptcy by year 15. In the case, it states â€Å"As of April 30, Year 14, the Company is in default of its debt covenants. It is also in default with respect to covenants underlying its capitalized lease obligations. As a result, lenders have the right to accelerate repayment of their loans. Accordingly, the Company has lassified all of its long-term debt as a current liability. † The way the company is moving, it does not appear that FBN will have enough cash to cover these now current liabilities. The company has to implement new strategies in order to avoid bankruptcy. First of all, there has to be better communication between the members of the board. It says that Mather received a loan authorized by the board for $1,000,000 when later that month the board said it was unaware of this loan and that it never authorized it. Obviously there was fraud occurring when Mather was the CEO.With better oversight by the board, problems such as this could be averted. Also, FBN needs a better system to collect its accounts receivables. As said in Part A, the accounts receivable amount had increased so much in the past 5 years and that negatively affected cash. It is a misnomer that high revenue is the sign of success when re ally it should be how much cash the company has. That is why Mather was confused why there was a problem with cash and the reason was that the company did not pay enough attention to the cash flow statement.

Animal Farm 2 Essay Example | Topics and Well Written Essays - 1000 words

Animal Farm 2 - Essay Example Animalism is used to represent other characters such as Old Major to represent Vladimir Lenin, while Napoleon represents Stalin and dogs act as his police force. The horse named Boxer represents the working class of the Russian society. The plot represents the tragedy of the revolution that ended up in failure. The animalistic utopia revolves around this violent revolution that the animals carry out. What sets this novel apart is intelligence in telling the story of revolution from inception to conclusion through respecting the limitations that humans and animals face. The term animalism is reminiscent of communism. The formation of a complete system/pattern and the following revolution closely represents the real pattern. Squealer, Napoleon and Snowball transform old Major’s ideas into reality. Later squealer and Napoleon start acting like humans as they drink alcohol, sleep in beds and start trading. All of these activities were originally prohibited in the seven Commandments. Squealer modifies the seven Commandments so that such activities can find their ‘legitimate’ place, similar to what happened during the Russian Revolution. A direct reference exists to the Soviet government’s plan of revising history so they can plant those seeds of thoughts that they deem fit. The formation and reference of seven Commandments directly enacts the communist approach. For instance the seven commandments hold that anything that walks on two legs is a foe. On the contrary a creature that walks on four legs or flaps its wings is part of the community. The seven Commandments also prohibit certain traits that separate them from humans. No animal is allowed to wear clothes, sleep in a bed or consume alcohol. Any indulgence in such activities would compromise the distinctive boundaries. The sixth and seventh commandments are there to support the social structure

The question of the past how does it influence the future and the Essay

The question of the past how does it influence the future and the present , can we change it what is the meaning of history in o - Essay Example Past events and experiences designs and shapes our present feelings, personality traits and present manifested behavior, (Darnton 123). All the experiences that people have been through during childhood dramatically influence the present and future life. Ones past constantly affect his present and will keep influencing his present and future as long as one is not aware of the linkage between his past, present and future. In fact, some psychoanalysts and psychologists argue that one’s present life is a product of the past events, experiences and behavior. Early memories of childhood are the foundation from which most of the people begin to form their beliefs, norms and value about the universe. For instance, if a young child believed that his family is according extra attention and care to his younger brother then he may grow with the misconception that his parents adore his younger brother than him. This past event influence the life of this child later on, because the child w ill grow with the belief that someone else is better preferred over him. When that boy matures and marries, he might begin thinking that the wife is infidel whenever she associates or smiles to another man. In this case, the initial believe that developed during childhood influenced the man’s perception of life. ... In terms of the experiences, people made decisions concerning such experiences that they consequently carry forward with them. In fact, people project such experiences into their tomorrow and expect such dreams, decisions, thoughts and beliefs to continue being real, (Darnton 128). For instance thoughts such as â€Å"I am good for nothing, they don’t love me, I am ugly† when people project these thoughts out into their future - with expectations of them being true in the present and future – people perpetuate themselves being the same people they believe to be tomorrow. In other words, they recreate the similar experiences over time, proving to themselves that they are indeed, that person of the past. Times is must spend and slowly and steadily running. This is the steadiest progress that one can speak about -time. Thus, each moment of an individuals’ life is exactly a yesterday’s time. When we were born, we began this journey of life at zero, and n ow several decades of our lifetime are spend. Thus, people definitely have a history, a past, indeed. Reflecting back at the past, we discover some happy moments and other unhappy moments. The past only makes a different through one’s perception of the current and future world around him. The past defines one’s ways of perceiving the current and the tomorrow’s world. It shapes our expectations, behavior, and values of the world and events taking place now and in the future. Therefore, it is evident that one’s past life increasingly affects his thoughts, views and choices that he makes in the current life and for next life to come. Can we change the past? As earlier

A two year old child in extended family Essay Example | Topics and Well Written Essays - 1500 words

A two year old child in extended family - Essay Example Observations of my case study family led me to understand that the meaning of family is an idea that is enacted through a core, stable group of people that is extended through a fluctuating series of others who come in and out of the home. Henry (1996, p. 32) writes that parents can meet the needs of children through mechanisms of secure attachment, but interactions with others through additional secure attachments can actually enhance childhood attachments with parents. Part of the socialization of a child is to create interactions with a variety of people and to help them engage the world (Edgar 1995, p. 5). As much as the intention of observing is to be on the outside of the family, I found that in my experience the intentions of a toddler will override the intentions of the observer and include them in the family process. The study of the family is the study of origins. Studying different families means studying their diverse cultures to see how differences have an influence, if any, on how children develop (Shimoni and Baxter 2008, p. 47). The family that I visited was Muslim and the structure of the family was nuclear with a mother, father, and extended family consisting of the paternal grandmother and grandfather with whom the parents and the child lived. The mother was focused on the activities of the child with the father being unable to be as focused on the development of the child as he was preoccupied with work for most of the time I observed. (Edgar 1995, p. 5).  ... The study of the family is the study of origins. Studying different families means studying their diverse cultures to see how differences have an influence, if any, on how children develop (Shimoni and Baxter 2008, p. 47). The family that I visited was Muslim and the structure of the family was nuclear with a mother, father, and extended family consisting of the paternal grandmother and grandfather with whom the parents and the child lived. The mother was focused on the activities of the child with the father being unable to be as focused on the development of the child as he was preoccupied with work for most of the time I observed. The motherhood ideology has mothers at the centre of reproduction and early childhood interaction (Reiger 1995, p. 48). The grandparents were very involved in the experiences of the child with an almost equal participation. Shimoni and Baxter (2008, p. 48) discuss a study by Wearing who determined that the ideology of motherhood still held that there is a â€Å"legitimate men’s social power and maintain women’s primary responsibility for child-rearing†. The study also determined that women feel that a ‘good’ mother was always available for her children and being a woman and being a good mother were an intermeshed identity. In studying my case study family I found that this framework of motherhood held true. Observing and Interacting One of the problems with observing is maintaining a barrier between the observer and the observed. During the course of my observations I became close with the family as the mother confided in me some of her concerns and the child interacted with me during the course of the observations. Beckett (1988, p. 140) discusses the nature of the

Government and Non-governmental Organizations Essay

Government and Non-governmental Organizations - Essay Example Many a times the international community does not even protest against such atrocities and it is only after the levels of atrocities exceed all levels of human degradation that corrective measures are to some extent enforced. Non-governmental organizations meanwhile are allowed to act only when the governments where such atrocities happen allow them to operate effectively in a non-biased manner. However, non-governmental organizations fortunately are the first ones to report, condemn and to request world community to intervene to stop the wrong doings. In their limited ways they do try to help as much as they can, but most of the times their efforts cover only a small percentage of the assistance that is overall required. In these essay, while we shall be comparing and contrasting the roles of governments and non-governmental organizations we shall without intention also be critical of these two important functionary bodies. In this context, we shall be referring to the major genocidal events in our last century in each of which people in their tens of thousands were the victims of mass killings. These are the Holocaust, the Khmer Rouge genocide in Cambodia, the genocide in Bosnia and Herzegovina and the freely allowed blood baths in Rwanda. When we compare some of these atrocities, the main similarities we observe is they happened because of the state government policies of these countries which encouraged ethnic cleansing as a method of subduing the minorities or completely wipe them out from as a people. While we shall not touch upon the subject of political killings that occurred in Argentine, Chile, Guatemala and continues to happen in Indonesia, Zimbabwe, Palestine and other countries, the role s of governments and non-governmental organizations here too are significantly important if they are freely and fairly implemented. The Holocaust happened because Germany as a state with a parliamentary type of democracy under Hitler was allowed to degenerate into a totalitarian Nazi state that controlled every segment of the German society. Its public policies developed because the German population remained silent towards the racial and genocidal policies towards the Jews and other minority groups because of Hitler's philosophical views that were elaborated in his Mein Kampf that led to the Nazi government's policy of murder and extermination. Policies that were on similar extreme lines in Cambodia, Bosnia and Herzegovina and Rwanda were allowed and the international governments intervened only when their national interests involved. While the Holocaust was enforced by a economically and militarily very strong and dominating Germany during World War II, the other genocides could have been prevented had international gov

Brazilian Worker's Party System Essay Example | Topics and Well Written Essays - 1000 words

Brazilian Worker's Party System - Essay Example According to Borges (2011), the Brazilian party system has always been associated with clientelism; hence, today, the country has a more stable party system. However, the two parties that seem to overrule the rest during presidential elections are the worker’s party (PT) and the party of Brazilian social democracy (PSDB). Hence, according to Love (2009, pp 38), during the times of President Lula, the Brazilian politicians were known to bribe citizens in poor regions by offering them pork so that they could vote for them; cash handout was also common during polling. Some of the political parties also created a client group, whose aim was to vote for a certain party. According to Mainwaring (1999 pp 5), â€Å"parties have weak roots in society and limited legitimacy and exercise little influence over congressional representatives.† He adds that Brazil has severally reshaped and dissolved party systems formation as follows, in 1889, 1930, 1937, 1965 and 1979. Moreover, Mai nwaring (1997 pp 8) notes that the Brazilian political systems are less disciplined compared to the American political parties. Further, â€Å"instability, fragility, fragmentation, non-differentiation, lack of cohesiveness and representativeness are the words to describe political parties in Brazil† (Kinzo, 1993, pp 139). This is due to lack of democracy in any party in the country in the earlier years.Rules have also been put in place; however, these rules tend to favor parties that are undisciplined, decentralized, and individualistic. In addition, the author describes the weak parties as a hindrance to popular representation in politics, thus sustaining elicit politics. Politicians were hence seen as the main drive to represent their parties. However, the weak parties disadvantaged the establishment of accountability through parties; for instance, the weaknesses of some political parties interfered with leadership in Brazil (Mainwaring, 1999, pp 6). According to Mainwarin g (1997 pp 3), party discipline is essential in any political system since it influences how well the legislatures and executives function and interact. When parties are undisciplined, there is a high possibility of the government to be unstable and ineffective, and interferes with the

Social Networking Security Issues and the emerging threats to users of Essay

Social Networking Security Issues and the emerging threats to users of these websites - Essay Example In this research I will outline the main security threats that have emerged recently because of extensive web based environment. This main focus of this research is to assess the social networking security. Social networks are common among the present generation and people are extensively participating in these areas. The main reason behind this participation is the availability of the huge knowledge and information at the same place. This allows the participation in different social activities, exchange knowledge, and experience, making friends, and also business marketing. These social networks offer us great advantage for all above mentioned tasks but also a great challenge for the personal privacy attacks and other type of security issues. The uniqueness of social network sites is not that they permit individuals to meet strangers, however rather that they facilitate people to develop and make recognizable their social networks. This can result in communication among users that would not in other ways be made, although that is not the major objective, and these communications are normally between "latent ties" the people sharing some offline connections (Boyd & Ellison, 2007). One thing can be concluded from the above discussion that there are security threats connected with social networking: data stealing and viruses are growing threats. The most widespread threat however frequently engages online individuals who declare to be someone that they are not. However, threat does survive not only with online networking; they also remain with networking out in the actual world, as well. For instance people are advised when meeting unknown persons at clubs and bars, school etc. So we should be careful when meeting people on line (What is Social Networking, 2009). Social networking websites have turned out to be a family name in todays world. No matter, it is our

Ethical Argument Cover Letter Essay Example for Free

Ethical Argument Cover Letter Essay This is my submission for the Ethical Argument writing assignment. I was asked to choose a topic to write and I chose to write about the Ethical Arguments against Abortion. Initially, I had many choices but I landed on this mainly because this is a broad topic as it covers science, religion, and human rights. Since this is a broad topic, it was also difficult to choose which part of abortion is suitable for this argument and which part of abortion I can write without injecting my personal views and opinion. Thus, I decided to write to focus on why abortion is acceptable for the case of life endangerment and why it can’t be accepted in rape cases. The purpose of this essay is to show arguments about the legalization of abortion with regards to life endangerment against rape case. Perhaps, the most difficult part of writing this paper is to weigh objectively the stand of abortion in the two cases given in this essay. However, the parallel or example I gave helped me arrive to the argument I presented. I hope that this writing will meet your requirements and I would be glad to receive some feedbacks from you. Respectfully Yours, Student’s Name Student’s Name Professor’s Name Subject 29 April 2009 Ethical Arguments against Abortion For years, we have heard a lot of arguments against abortion; arguments as to why or why not abortion should be legalized. It seems to be a never-ending debate especially when taken from a pro-life perspective. Arguments against abortion often range from objections based on the USA’s constitution protection of the rights to human life to biblical belief that human life starts at conception. However, more arguments and objections arise when a law justifying abortion for mothers whose lives are endangered because of pregnancy has been approved, whereas others are questioning that if this is permissible, why can’t rape cases be? This essay offers arguments and responses as to why it is morally illegitimate to have abortion in the event of rape, while it is fairly acceptable to commit abortion when the mother’s life is endangered. Let’s look at the rape issue first. One of the fundamental beliefs of person’s rights regarding any system concerning the use of disciplinary force is that is to be applied only against those individuals responsible for the initiation of force. In this situation, the guilty party is the rapist and not the fetus. Moreover, in this case, the law might legally grant its authority to terminate the rapist, since rape is considered as an abominable crime, but not the child, even if the child’s dependence on his mother was the result of the rape. Let me give you a parallel. Imagine that there are two mutually unfriendly people living in the same building during the bombing raids of Hitler in 1940. A bomb is thrown into the building and this causes all possible exits to collapse while destroying all the walls that separate the neighbors. In effect, they are forced to share the same space and work with each other in the hopes to channel themselves out despite a mutual dislike. Does the given scenario justify one of the two unfriendly neighbors killing the other because of the inconvenience caused by the other, even though none of them had really caused it, or wouldn’t it be proper to demand justice from the Nazi air marshal who had originally commanded the bombing raids? Although the bombing and rape are two immensely unlikely scenarios, both are possible and the possible circumstances here are parallel to that of a pregnancy caused by rape. Going to the mother’s life endangerment issue, no individual is really obliged to his or her own life to save another person’s life. Therefore, when it can be proved medically that the mother’s life is in fact significantly endangered by a pregnancy, then, an abortion may be undertaken as a final resort and an only situation where it is possible to support legal abortion and to remain loyal to the individual rights’ principle; however, it is not an ordinary situation. Rather, it is considered an emergency, or a sort of situation as addressed in The Ethics of Emergencies written by Ayn Rand as part of her essay collection â€Å"The Virtue of Selfishness†. An emergency is an unchosen, unexpected event, limited in time that creates conditions under which human survival is impossible such as a flood, an earthquake, a fire, a shipwreck. It is only in emergency situations that one should volunteer to help strangers. For instance, a man who values human life and is caught in a shipwreck, should help to save his fellow passengers (though not at the expense of his own life). But this does not mean that after they all reach shore, he should devote his efforts to saving them from poverty, ignorance, neurosis or whatever other troubles they might have. Nor should he spend his life sailing the seven seas in search of shipwreck victims to save. (The Virtue of Selfishness) From this definition alone, the situation of a mother whose life is endangered because of pregnancy is considered as an emergency as long as the mother has no idea that her pregnancy would put her life into danger. However, if from the start, the mother already knew about her medical condition that pregnancy will do her no good, it must be her responsibility to avoid becoming pregnant and must do her best to protect her health. Should she decide to face the risk, aborting the baby must not be done. In addition, Rand writes in her essay that emergencies are always exempted from the rule. They are not the normal state of ethical human relations or of human existence. To say that such extreme action may be allowed in emergencies is simply not to extend the acceptability or tolerability to the realm of human existence as dealt with by the basics or fundamentals of ethics. So, just because abortion may be justified as a final resort in some unexpected circumstances, this does not mean that the general legalization of abortion may be justified, especially with the fact that most cases of abortion occur because a woman has gone through indiscriminate sexual relations and has never wished to bring upon herself the objective consequences of such actions which are the pregnancy and the responsibility and obligation of bringing up a child. Work Cited Rands, Ayn. â€Å"The Virtue of Selfishness† 28 December 2008. Glyn Hughes Squashed Philosophers. 29 April 2009. http://www. btinternet. com/~glynhughes/squashed/rand. htm Annotated Bibliography Rands, Ayn. â€Å"The Virtue of Selfishness† 28 December 2008. Glyn Hughes Squashed Philosophers. 29 April 2009. http://www. btinternet. com/~glynhughes/squashed/rand. htm Rand’s essay collection â€Å"The Virtue of Selfishness† offers the basic or fundamental social principle of Objectivist ethics that life is simply an end itself, which simply means that every human being is an end himself. This also explains that man must live only for his own self and neither to sacrifice himself for others, nor having others to sacrifice themselves for him. The chapters in this essay collection could be easily included in the ethical argument writing especially when the topic is about sacrificing oneself or sacrificing others for the benefit of the other just like the topic in this argument.

Customer Relationship Management in Banking

Customer Relationship Management in Banking ABSTRACT Today the world is globalized and customers are well educated and well informed. This has increased the competition among the firms and organisations. The competition elevates the customer bargaining power and switching power to choose the best product and service. Therefore customer relationship has become a focus of importance to all the companies in order to retain the customer as well as maximize revenues. Today marketing is no more developing, delivering and selling of goods and services, it is moving towards developing and maintaining long term relationship with customers. Therefore relationship marketing has making its important in all the business sectors so as in financial services. Customers Relationship Management creates the opportunity through which the banks can benefit by developing good relationships with their customers. The aim of the project is to gain a better understanding how the CRM has benefited both the bank as well as its customers. This research also aims to identify how critically CRM has been practiced in Lloyds Banking Group, analysis the data mining process of Lloyds Banking Group, to find out the customer segmentation procedure of the bank to analysis the customer retaining strategy of the bank, to find out how does the bank measure customer life time value and to verify the relationship between the customers and the Lloyds Banking Group. To validate the purpose of the project has addressed to set of questionnaires, one is for Lloyds Banking Groups employees and other is for customers of the bank. The literature review has also help to understand the answer for the research questions. Both the quantitative as well as qualitative data collection techniques have been adopted namely, survey questionnaire and semi-structure interviews. Some data has also collected through interview of Lloy ds employee and a group of their customers. Lloyds use CRM as an effective business strategy to classify the most profitable customers for bank. And accordingly bank gives priorities those customers through individualized marketing, reprising, flexible conclusion building and modify service-all delivered through a variety of sales channels that the bank use. Researcher has found that Lloyds is conducting a campaign management by using data mining task. This campaign helps to make crucial business decisions by exacting suitable, beforehand strange and ultimately logical and actionable awareness from huge databases. Researcher also has suggested suitable recommendations to the bank to improve the CRM practice in Lloyds Banking Group. 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management (CRM), is an vital division of modern business organization. CRM concern the relation between the organisations along with its consumers. Consumers are the means of support of any business in a universal business with thousands of workforce and a multi-billion earnings, or a single broker with a handful of standard consumers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researchers scope of the study to avoid confused analysis and a weaker report. 1.6 OUTLINE OF THE SUBSEQUENT CHAPTERS Chapter 1; INTODUCTION This chapter provides the brief introduction of the research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the learning. CHAPTER 2; LITERATURE REVIEW This chapter determines the theoretical issues relating to CRM which is relevant to the research. CHAPTER 3; METHODOLOGY This episode discusses about primary and secondary methods of research used by the researcher. CHAPTER 4; CONTEXT Chapter 4 deals with the information about Lloyds Banking Group. CHAPTER 5; FINDINGS This chapter deals with the result of primary data. CHAPTER 6; ANALYSIS Analysis part deals with findings in the context of literature review in chapter 2. CHAPTER 7; CONCLUSION This chapter includes the overall conclusion of the research. This chapter produce the conclusion compared and contrasted with the finding of the research and the literature review. It summarises the aims and key findings and acknowledges the limitation of the works. CHAPTER 8; RECOMMENDATIONS This chapter is the last chapter of the research. This chapter provide the recommendation for the managerial implication in the Lloyds Banking Group. At the end, chapter provide recommendation for the future research. CHAPTER 9; REFERENCES AND BIBLIOGRAPHY This chapter includes a systematic list of books, web site and other works such as journal, magazine etc which have been used as secondary data or as reference in this research. CHAPTER 10; APPENDICES This chapter contain all questionnaires and some graphs, chart and tables which have been made on the basis of customer survey. 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is widespread tactic and process of acquire, retaining and partnering with careful consumers to create better-quality value for the business and the consumer† (Parvatiyar and Sheth 2000, p.6) 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; Customer selection or Segmentation According to Dave Chaffey (2009), customer selection is defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in figure 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is an degree, be indicated by RFM and rejoinder examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in figure 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers Figure 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a business can generate a 360 degree view of consumers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development are improvement in set of connections communications, client/server compute, and business cleverness application. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of scheming customer duration importance, consolidated view, product tailoring and facility improvement, the information is essential. Along with data warehouses, enterprise resource planning (ERP) organization and the internet are the vital infrastructures to CRM application. Fickel (1999) said ‘CRM application links front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the businesses customer contact point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an commercial, Web-site, sales individual, store or office, finger points are vital because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. Figure 2.8 demonstrates the correlation between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a tools application for sales, marketing and service, but when CRM completely and successfully implemented, customer-driven, a cross-functional, technology-integrated commerce process management scheme that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Thoughts of customers and their buying pattern can improve information relating to customer service interactions, bill and account status, back orders, product returns, product delivery, and internal operating cost. The capacity of a data storehouse to store hundreds and thousands of gigabytes of data compose an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it compute total present importance and approximate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a analytical model based on pattern determined from known output and after that we have to test the model on result outside the original sample. An ideal model must never be puzzled with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like prospect that a person will react to an recommend. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banki Customer Relationship Management in Banking Customer Relationship Management in Banking ABSTRACT Today the world is globalized and customers are well educated and well informed. This has increased the competition among the firms and organisations. The competition elevates the customer bargaining power and switching power to choose the best product and service. Therefore customer relationship has become a focus of importance to all the companies in order to retain the customer as well as maximize revenues. Today marketing is no more developing, delivering and selling of goods and services, it is moving towards developing and maintaining long term relationship with customers. Therefore relationship marketing has making its important in all the business sectors so as in financial services. Customers Relationship Management creates the opportunity through which the banks can benefit by developing good relationships with their customers. The aim of the project is to gain a better understanding how the CRM has benefited both the bank as well as its customers. This research also aims to identify how critically CRM has been practiced in Lloyds Banking Group, analysis the data mining process of Lloyds Banking Group, to find out the customer segmentation procedure of the bank to analysis the customer retaining strategy of the bank, to find out how does the bank measure customer life time value and to verify the relationship between the customers and the Lloyds Banking Group. To validate the purpose of the project has addressed to set of questionnaires, one is for Lloyds Banking Groups employees and other is for customers of the bank. The literature review has also help to understand the answer for the research questions. Both the quantitative as well as qualitative data collection techniques have been adopted namely, survey questionnaire and semi-structure interviews. Some data has also collected through interview of Lloy ds employee and a group of their customers. Lloyds use CRM as an effective business strategy to classify the most profitable customers for bank. And accordingly bank gives priorities those customers through individualized marketing, reprising, flexible conclusion building and modify service-all delivered through a variety of sales channels that the bank use. Researcher has found that Lloyds is conducting a campaign management by using data mining task. This campaign helps to make crucial business decisions by exacting suitable, beforehand strange and ultimately logical and actionable awareness from huge databases. Researcher also has suggested suitable recommendations to the bank to improve the CRM practice in Lloyds Banking Group. 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management (CRM), is an vital division of modern business organization. CRM concern the relation between the organisations along with its consumers. Consumers are the means of support of any business in a universal business with thousands of workforce and a multi-billion earnings, or a single broker with a handful of standard consumers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researchers scope of the study to avoid confused analysis and a weaker report. 1.6 OUTLINE OF THE SUBSEQUENT CHAPTERS Chapter 1; INTODUCTION This chapter provides the brief introduction of the research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the learning. CHAPTER 2; LITERATURE REVIEW This chapter determines the theoretical issues relating to CRM which is relevant to the research. CHAPTER 3; METHODOLOGY This episode discusses about primary and secondary methods of research used by the researcher. CHAPTER 4; CONTEXT Chapter 4 deals with the information about Lloyds Banking Group. CHAPTER 5; FINDINGS This chapter deals with the result of primary data. CHAPTER 6; ANALYSIS Analysis part deals with findings in the context of literature review in chapter 2. CHAPTER 7; CONCLUSION This chapter includes the overall conclusion of the research. This chapter produce the conclusion compared and contrasted with the finding of the research and the literature review. It summarises the aims and key findings and acknowledges the limitation of the works. CHAPTER 8; RECOMMENDATIONS This chapter is the last chapter of the research. This chapter provide the recommendation for the managerial implication in the Lloyds Banking Group. At the end, chapter provide recommendation for the future research. CHAPTER 9; REFERENCES AND BIBLIOGRAPHY This chapter includes a systematic list of books, web site and other works such as journal, magazine etc which have been used as secondary data or as reference in this research. CHAPTER 10; APPENDICES This chapter contain all questionnaires and some graphs, chart and tables which have been made on the basis of customer survey. 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is widespread tactic and process of acquire, retaining and partnering with careful consumers to create better-quality value for the business and the consumer† (Parvatiyar and Sheth 2000, p.6) 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; Customer selection or Segmentation According to Dave Chaffey (2009), customer selection is defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in figure 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is an degree, be indicated by RFM and rejoinder examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in figure 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers Figure 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a business can generate a 360 degree view of consumers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development are improvement in set of connections communications, client/server compute, and business cleverness application. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of scheming customer duration importance, consolidated view, product tailoring and facility improvement, the information is essential. Along with data warehouses, enterprise resource planning (ERP) organization and the internet are the vital infrastructures to CRM application. Fickel (1999) said ‘CRM application links front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the businesses customer contact point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an commercial, Web-site, sales individual, store or office, finger points are vital because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. Figure 2.8 demonstrates the correlation between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a tools application for sales, marketing and service, but when CRM completely and successfully implemented, customer-driven, a cross-functional, technology-integrated commerce process management scheme that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Thoughts of customers and their buying pattern can improve information relating to customer service interactions, bill and account status, back orders, product returns, product delivery, and internal operating cost. The capacity of a data storehouse to store hundreds and thousands of gigabytes of data compose an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it compute total present importance and approximate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a analytical model based on pattern determined from known output and after that we have to test the model on result outside the original sample. An ideal model must never be puzzled with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like prospect that a person will react to an recommend. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banki

Marx and Weber: Capitalism

Marx and Weber: Capitalism A comparison of Marx and Webers theories with respect to their ideas and interpretations on capitalism. Marxs view of the industrialist society he lived in was one of inequality and driven by capitalism. His ideas and interpretations of capitalism are based on historical precedent and industrialism. He calls the capitalist ownership class, the bourgeoisie, owning the means of production, whilst describing the working class, the proletariat, who provide the means of production. He viewed this capitalist system as being an unjust and unfair one which exploited the proletariat to provide profit and gains for the bourgeoisie. Marx saw capitalism as merely a progression of previous modes of production, such as slavery and feudalism, becoming a system of production of commodities which exploited the workers for the profitable gain of the capitalist bourgeoisie. In the feudal and slavery systems, however, the medieval lords and slave owners were responsible for the welfare of their workers. Whereas, in the capitalist society he saw the capitalists taking unfair advantage of the workers, with a minority owing and monopolising the ownership of the means of production, whilst gaining big profits at the expense of the workers. Wage labourers produce commodities, goods which are produced for exchange. The commodities are sold on the market, and the capitalist pays the labourer a wage. The capitalist gives up some of his capital to the wage labourer in the form of wages in return for the use of his/her labour- power. Labour-power is thus itself a commodity; it is bought and sold A labourer depended on the market value of his skills, or production, to earn a living which the capitalist would sell for maximum profit. However, this profit did not feed back down to the worker, instead it went into the pockets of the already wealthy capitalist. He believed that the workers were exploited for their labour in order to survive. Marx believed that society had progressed through stages of history with each stage providing its own destruction to allow it to progress to a new stage. He believed that every stage of history only progressed to the next stage through a social revolution of some kind and gave it the term Dialectical Materialism . He believed that the economy and materialism are the driving forces behind historical change. He saw the main difference between men and animals, as mans ability to produce his own living, in other words, man owns his own mode of production. However, he saw the workers ability becoming diminished in the factories and with manual labour, with the worker being alienated from his means of production by being given solely specific tasks to complete in a production line. Ultimately, he proposed that through the progression of history, capitalism would be overcome by a revolt of the working class in order for them to overcome their oppression by the capitalists, giving way to a f airer and equal society. He argued that economic structure should be planned to suit the people. Unfortunately in some cases, his theories were taken and twisted by others, giving way to an even more oppressive society, for example, communism in the Union of Soviet Republics (Russia) and the Republic of China, where the control of the working classes were still in the hands of the select few. In contrast, Weber believed that Marxist theories were too simple as he thought Marx saw mainly economic grounds being the driving force behind capitalism. Webers ideas and interpretations on capitalism are predominantly derived from his major work The Protestant Ethic and the Spirit of Capitalism (1904-05). From most of the readings done for this essay, it would appear at first sight that Weber views religion as the driving force behind capitalism. However, this is too simplistic a view. Weber was not only interested in the role of religion in capitalism; he was also very interested in discovering the values behind the individuals social behaviour. He saw workers doing what they do because of their commitment to their family, which is why people go to work although the work may not be great and the pay not very substantial. Weber is more interested in the actions of the individual and the affects of society on the individual; therefore, he defines sociology in a different way than Marx, believing that individuals are shaped by their own motives and desires. He liked to use categories and typologies, using three main categories, traditi on, charismatic and legal rational authority. Weber had a wide range of interests, class, social stratification, modernity and religion. Being interested in discovering why capitalism was a Western phenomenon and developed in certain European countries during the industrial revolution, he undertook a study of these countries. In his work The Protestant Ethic and the Spirit of Capitalism (1904-05), Weber makes a connection between protestant beliefs and the emergence of capitalism. Although religion did not bring about capitalism, Weber suggested that religion can cause social change, which in turn could fuel the process of capitalism. He uses Calvinism as an example of how change can be brought about. Calvinists believed that you were already predestined to go to heaven and were either among the elect or not, before you were born. Nothing that happened during your life here earth would alter this election. Calvinism was a puritan form of Protestantism, focusing on self denial, hard work and a predetermined selection for entrance into heaven. As Calvinists did not have any way of knowing whether or not they were part of the elect, they had to act as if they had been chosen; therefore, they lived good lives here on earth and worked hard. It was this ascetic work ethic that Weber believes drove capitalism as making a lot of money was a sign of hard work and no play. As they denied themselves any comfort and pleasures in life, the money they had over and above their meagre living expenses was ploughed into the business making them different from other money makers, in so much that, they made money for moneys sake which was not spent on the frivolities in life. Weber theorised that this Protestant ethic gave rise, encouraging and promoting modern capitalism. He argues that formal rationalisation (the rationale behind making money) would overtake religion and do away with it altogether. Weber saw capitalism as a process of rationalisation and argues that there are s ix factors which are necessary for capitalism to succeed : The appropriation of material means of production; Market freedom; Rational technology (principally mechanisation); Calculable law (forms of adjudication and administration which allow for predictable outcomes); Formally free labour (persons who voluntarily sell their labour-power but must do so to stave off starvation); And the commercialisation of economic life. All these conditions are necessary ingredients in the rise of capitalism in Webers view . Weber also saw bureaucracy as playing a major role in capitalism. Bureaucracy is the form of social organisation in and through which rational-legal authority is exercised and maintained. It is also the form which clearly takes hold with the advent of capitalist economic order. One does not cause the other to arise; they have a h3 affinity Where Marx felt that alienation of the workers from thier products by division of labour within the capitalist system allowed exploitation of workers for capitalist gains, thereby limiting their true freedom, Weber believed that it was bureacracies and rationalisaton that restricted human freedom. Marx believed that mans freedom under capitalism was deceptive and not true freedom. He believed that capitalist wage labour restricted the worker and was really a form of forced labour as the worker relied on his wage to live. The worker could only sell his labour for the price the capitalist would pay for this work or production and for Marx, capitalism was predominantly as system of commodity production and an economic driven system. Weber argued that workers lost control of their work through the forces of rational controlled production and believed that it was inevitable that the bureacracy of the capitalist system would change processes in labour and production order to gain the best profit. But capitalism is identical with the pursuit of profit, and forever renewed profit, by means of continuous, rational, capitalistic enterprise . Weber argued that in a capitalist society the individual join the organised structures and orginasations which are put in place to ensure an effecient structure to ensure the best profit. By joining these organisations, the individual loses their individuality and get cut off themselves and lost in the officialdom, and therefore, become alienated. Weber tends to be seen, or portrayed, as much more pessimistic than Marx. Weber sees society becoming locked in an Iron Cage through bureaucracy, rationality and authority. This order is now bound to the technical and economic conditions of machine production which today determine the lives of all the individuals who are born into this mechanism, not only those directly concerned with economic acquisition, with irresistible force. Perhaps it will so determine them until the last ton of fossilized coal is burnt. In Baxters view the care for external goods should only lie on the shoulders of the saint like a light cloak, which can be thrown aside at any moment. But fate decreed that the cloak should become an iron cage Marx was much more optimistic and saw the possibility of social change through a working class revolution, believing that social democracy is an alternative to capitalism.