Communication Strategy Of Next Plc

Communication Strategy Of bordering PlcTo sustain a business, there moldiness(prenominal) be effective and efficient colloquy. This means there must be efficient ways and appropriate impart of exchanging information with the stakeholders of the business, which is core to its in somatic strategy.This report evaluates the corporate confabulation strategy adopted by adjacent Plc, a UK based seller with oer 180 stores spanning continental Europe, S understructuredinavia, Russia, Middle-East, India and lacquer and with international website serving the USA and 30 other countries groundwide. The report highlights the situation that adjacent has got an established human election precaution which continu tout ensembley matures and implements intimate chat strategies to en satis situationory all employees receive and understand information that is timely, accurate, germane(predicate) motivational. In toll of its visit, a report by Susannah Streeter(July 2010), a BBC news man reveals that following Plc had been breaching consumer law by not refunding delivery charges on online purchases though re flip overed within seven days. This had a damaging effect on the caller-outs public figure hardly they were quick to offer apologies to their nodes and retrace theirs steps. Also according to a Mintel report(October 2010), attached c potentiometerhing are overly k straightwayn for timberland with which it scads with its customers, only when the challenge it faces is that as disposable incomes come under pressure, its many a(prenominal) young customers faculty turn to value retailers. However, if it tries to diversify into third society brands, it may erode the view and values of its brand. Hence, the look at for effective converse strategies for corporate and brand repositioning.TABLE OF CONTENTS1 EXECUTIVE drumhead 22 LIST OF FIGURES 33 INTRODUCTION 44 FINDINGS 55 Conclusions and Recommendations 14LIST OF FIGURESFigure 1.0 adjacents al-Q uran of Sales 2005-2009Figure 1.1 Abergs Total Communications DomainFigure 1.2 Argentis written report mannequinFigure 1.3 Cornelissens Stakeholder Model of Strategic ManagementFigure 1.4 Hofstedes mannikin of ethnical dimensionsFigure 1.5 Mckinseys 7-S ModelFigure 1.6 General structure of integrated Governance.Figure 1.7 Ulrichs 4 roles of Human ResourcesFigure 1.8 Harvard Map of HRM theory by Beer et al(1984)Figure 1.9 Horizontal/Vertical structure of communicatingINTRODUCTION consort to Cornelissen Joep(2008 p.5), a likely characteristic of corporate conference is that it jackpot turn out to be complex in disposition. For small-medium firms, communication complexity is quite minimal but with large corporations, if due care is not taken, communication enkindle turn out to be cumbersome. Cornelissen J.(2008,p.95) in any case states that managing corporate communication requires a communication strategy that describes the cosmopolitan image that an arrangement aims to shake off through themed messaging to stakeholders. As a result of this complexity, this report ordain aim to provide insights and explore the corporate communication strategy of beside Plc.A Proquest(2011) report tells of challenges faced by beside in the iv year extremity to 2009 as a result of laxity over its positioning and recession. By the time it realized that trends were changing, it had lost grounds. The targeted young customers were maturing and bring down their spending due to additional responsibilities. Erosion of its brand due to over-diversification was other materialisation. Next has lost ground since 2005 but seems to be emerging now from the underperformance period according to the graph belowFigure 1.0 Next UK gross revenue as a share of clothing specialists origination Next familiarity Accounts and Annual Reports/Mintel 2010An industry expert, Raoul Shah, CEO of Exposure evoked that Next should develop a higher brand profile and image and senior executiv es need to plan new communication strategies, be more(prenominal) visible in the media, give more interviews and build deeper apprisalships with customers and stakeholders.(Proquest, n.d). Essentially there has to be a corporate identity management in place.This report lead seek to investigate the corporate communication strategy of NEXT Plc with regards to its stakeholder management, bodily image and identity, its Human resource management among others. These will be achieved through research, recommendations and conclusions will be made based on findings from the company website, articles on the company and its industry, journals, their annual reports and other germane(predicate) materials.FINDINGSWhat is Corporate Communications?Corporate communication is the ability of an organisation to effectively communicate to its stakeholders. This definition gives a general overview or arrest of what corporate communication is about. Looking into a more complex and detailed definiti on, corporate communications would and so be delimit as an instrument of management by means of which all consciously used forms of internal and external communication are harmonised as effectively and efficiently as possible, so as to fix a favourable basis for relationships with groups upon which the company is dependent. (Van Riel,1995, p.26)Figure 1.1 The total communications domain(Aberg 1990) kickoff Van Riel (1995) Principles of corporate communication.Van Riel(1995) concords Aberg (1990) that all communication activities within an organisation must be integrated so as to support the transaction of the organisations aims and goals. This is where care must be taken so to address communication complexity effectively and efficiently. It is about the reputation of the organisation, people being able to identify with the organisation and about the formal systems of communication at the highest level. amuse see Appendix 1 and 2 for a history and timeline of Next Plc.Image Ide ntity and compositionImage is the picture of an organisation as perceived by target groups while identity is associated with the way in which a company presents itself to the target groups, by the use of symbols, communication and behaviour(van Riel,1992). Argenti (2007) also states that image is a reflection of an organisations identity. These definitions shed light on the fact that there is but a thin line between image and identity as the former sees from the outside while the latter projects from the inside. It was describe that Next was breaching regulations by not refunding online delivery bes to customers even if they sound reflection goods within seven act days. This would have damaged Nexts corporate image, but the companys executives were quick to offer apologies to redeem its image.(BBC Business News, July 2010). gibe to Richard R. Dolphin(1999), people unwrap to identify with a company by noting some(prenominal)thing it does.In terms of image, whether Nexts cus tomers answer to use the Next Directory or website, visit a Next retail store, the strength of the brand continues to be a powerful attraction in terms of send off uniformity, value and calibre their customers know they can trust. To support this, Richard R. Dolphin (1999) says organizations communicate with those that they perceive as stakeholders because they desire an enhanced awareness, understanding and appreciation of their identity and their core beliefs as well as of their products and their services. Next has an outstanding record of achievement as a result of continue success of innovative shopping concept. Nexts greatest assets are its exclusive designs and distinctive styling that have given it a strong brand image.Figure 1.2 Reputation model commencement Argenti, Paul. Corporate Communications(2007)George Davies, a retail entrepreneur, believed in the 80s that clean-cut jacket could establish Next, as long as it represented barbarian value for the price and high quality (identity). This was their brand positioning at the time. In February 1982 Next opened its first seven shops and the sales were both and-a-half times what the company had originally estimated. Davies found a ready mart for his merchandise(as customers were able to identify with the positioning) providing what he called affordable collectables, which represented good design at reasonable prices(image). (Fashion encyclopedia)Next was able to give the public a better product in terms of their expectation of quality at the price point.Also, Next logo has been changed from time to time in terms of the use of upper and lower case letters and also accent colour probably as a brand repositioning strategy. nevertheless the name Next suggests something to look forward to which essentially says a lot about how the company wants to be perceived or positioned in the minds of its customers whence translating into the image as conceived in the minds of its various stakeholders which ov er a period of consistency earns the company a reputation. This relationship is supported with Argentis Reputation framework (figure 1.2).Management of stakeholdersCornelissen J. (2008, p.42) defines a stakeholder as any group or private who can affect or is affected by the achievement of the organisations subroutine and objectives. Next addresses environmental, social, ethical and business related impacts on its stakeholders as a way of managing and bringing value to them. (Next website)NEXT has a strategy of addressing the issue of the organisations reputation as there are different expectations from different stakeholders. The wag at Next represents and promotes its shareholders interests. The jump on gives account of the performance and activities of the Group and then communicates this with its shareholders with respect to the business activities.(Ezine Articles 2009). The company recognizes a need to address every kind of stakeholder it has.Figure 1.3 Stakeholder model of strategic management.Source Cornelissen Joep, 2008. p.39Next adopts and implements a code of conduct that delivers benefits for its workers across the globe by which means it fulfils its indebtedness to uphold international labour laws with its suppliers. The company sources the products it sells from many countries around the world. It recognizes the function it has to work closely with its global suppliers, and is committed to ensuring its products are made in a clean and safe environment, in accordance with all relevant local and national laws and legislation, and by workers who are treated with respect and paid equitablely for the work they do.(Nextplc.co.uk).Every company has got its own reasons for being in business. For whatever reason for which a business might be in existence, it must take into consideration its responsibility to the environment in which it trades which includes its stakeholders (Government, shareholders/investors, suppliers, customers, etc) and the wo rld at large.Please refer to the bibliography for a full statement of Corporate responsibility from Next and how it relates with each group of stakeholders.Role of Culture harmonise to Tourish and Hargie (2004), grow can be defined as a incorporated (for example society, organisation, group or sub-group) interpreted for its sense of social integration, differentiation, and fragmentation. It is the culture of Next to have the interest of its people(including stakeholders) at the centralise of its business.Figure 1.4 Hofstedes Framework of cultural dimensions.Source Hofstede, G. (1994). Cultures and Organisations, London Harper CollinsAs a result, the company had its business strategy implemented within a true(a) organisational culture and continuous investment in its employees. This in essence gives employees a sense of security and loyalty towards the organisation and in essence suspensor to relax the power blank space(Hofstedes power distance) between employees and their boss es. A multi-national organisation much(prenominal) as Next, by reasons of its geographical dispersion will work with and employ people from divers(a) cultures, hence the need to possess a bare-ass communication strategy. Cornelissen J.(2008, p.71) describes an organisations culture as the values as felt and shared out by all employees of the organisation. For instance, to contain the situation of cultural differences and language in its countries of operation, Next has a multi-lingual website for its online home-shopping, Next Directory. This is a good step in the right direction in terms of communication strategy.With regards to Hofstedes concept of individualism, Next plc supports collectivism rather than individualism. It encourages employees to be integrated to a single corporate group rather than individual groups. It has in place a reading and development team which designs and implements interventions to drive forward the fun, fair and wagesing culture of working togeth er.Role of TechnologyAccording to Tourish and Hargie (2004), a torrent in recent days resulting from the surging river of technology is a key lineament of the organisational landscape. Technology has proven to be very dynamic in nature and for an organisation that wants to reach and connect with a vast majority of its stakeholders or even expand its customer base in a warlike world, it must also be technologically pro-active. Tourish and Hargie (2004,p.74) supports the views of Clampitt and Downs()993) and Hargie and Tourish(2000), that communication has been at the centre of successful organisations, causing a challenge to create a communication system that is efficient and effective when it comes to addressing the needs of its customers and external and internal stakeholders. mesh popularity and new media reception offers enormous opportunities for NEXT to improve its communication strategy. According to Tourish and Hargie (2004, p.74), technology alone does not solve problems, it only offers opportunities so it must fit into already existing communication strategy. Next increased its customer base to over 2 million with the launch of the Next Directory earnings shopping in 1999. The website also has multi-lingual features which helps to translate to other languages to aid exploiter friendliness. This strategy will help Next to influence its customer behaviour. Next is a people oriented organization. Even employees may have glaring access to senior managers via their e-mail address, which in essence reduces power distance as Hofstedes cultural dimension illustrates.Human Resource ManagementBeardwell et al (2004,p.6) supports Legge(1995) that the analysis of HRM in terms of style has revolved around whether it can be regarded as hard or soft. Soft HRM according to him is very much viewed as developmental humanism in which the individual integrates into a go of work that values trust, communication and commitment while secure HRM emphasizes cost minim ization strategies. With regard to the Soft HRM, NEXT employs over 58000 people and sees its employees as valuable assets to the organization and is committed to their development by providing a working environment in which they can to achieve their full potential and accessing opportunities for both personal and professional development.(Nextplc.co.uk). Nexts recruitment is done online via the HR department.Figure 1.5 McKinseys 7-S model.Source www.Mindtools.comNexts human resource approach is a mixture of both the Hard and Soft approaches in line with McKinseys 7S model(pictured above). Employees enjoy an environment of support and respect, fair treatment, listened to, welfare and motivated to achieve their full potential, which is the core of its human resource management. Next applies the soft approach of recruitment policies, development and training of employees and is also committed to investment of time and resource for support, engagement and motivation of employees to odo r valued, developing rewarding careers and want to stay with the company. There are reward systems for employee motivation as a hard approach. As the business continues to develop, Next understands that effective and committed employees will help to continue delivering excellent quality products and services to its customers. This suggests an output-based HRM. Ulrichs model of HRM can be substantiated with Next in that, close of its top people (executives and non-executives alike ) have been with the company for many years and this is because Next practices its employees feel valued thereby gaining their loyalty and they, over the years, work through the four roles till they become strategic partners.Figure 1.6 Ulrichs 4 roles of HRSource Ulrich, D.(1998) Human Resource Champions.The Harvard HRM framework as veritable by Beer et al(1984) explains that every organization must recognise all groups of stakeholders. or so of Nexts success can be attributed to its business strategy i nfused with stakeholder centred HRM strategy which can be confirmed with its statement of social responsibility. (Appendix 3)Figure 1.7 Harvard Map of HRM territory, by Beer et al(1984)Source Beardwell et al(2004)Corporate GovernanceAn enforced and well defined corporate governance provides a structure that works for the benefit of everyone concerned(at least in theory), by ensuring that the enterprise adheres to formal laws, best practices and to accepted ethical standards.Next has got various committees and officers overseeing its many business units in order to ensure unperturbed running and effective corporate communication flow. Figure 1.3 below except explains the general order or structure of corporate governance which also explains that of Next Plc. Next has a four-member audit committee which reviews the risk management process thereby refering significant risk issues to the Board for handling. Next Board is responsible for major policy decisions whilst delegating more de tailed matters to its committees and officers including the nous Executive. (Next Plc, Corporate Governance). The Board at Next represents and promotes the interests of shareholders (Ezine Articles, n.d) and also other weapons including the HR and PR departments are there to help ensure communication strategies are effectively implemented.Figure 1.8 General Structure of Corporate Governance.Source Johnson et al (2011) Exploring Strategy.Conclusions and RecommendationsIn conclusion, the organization has to be sustained and successful so effective corporate communication strategy is very essential in tackling its communication challenges. As a result of the unpredictable nature and change of stakeholders, drawing up a corporate communication strategy can in fact be very challenging. Sometimes stakeholders still want commitment to an organization no matter how the organization tries to keep them sensible or involved. The management of Next Plc had trivialised this important fact a nd went on performing on their customers intelligence by breaking consumer law in flunk to refund delivery charges on goods bought online even when returned within seven days. The media got a hold of this activity and then made it public. This singular act could arrive at it difficult for Next to achieve its own objectives with its stakeholders. The effect of it was damaging on the companys image and reputation but the management was quick to offer apologies to their customers earlier any further damages could be made..Also with the concept of cultural division, Next as a multi-national organization employs and works with people of diverse cultural orientations and backgrounds who sometimes may see different meanings to the same lyric poem or statements. Multi-national companies may not always be able to suit to all the cultural differences and at the same time maintain consistency in portraying their corporate culture but they would have to make strategies that inculcate cultu ral common grounds. It is sometimes difficult selecting the appropriate channels as well. For instance, Next plc has a multilingual website, though not all languages are included. This also poses a challenge as some cultures might feel left out. Next Plc is committed to abiding by rules and regulations in countries where it operates. Changes in laws and regulations of different countries are also unpredictable as more or less of the times they may run counter to an organizations strategic interest. These changes sometimes create difficulty in maintaining its performance culture for this reason it is confident but cautious at the same time.Against all odds of adverse share and social rethinking, Next has continually moved forward the high standards of quality and processes of improvement using its keen minds. Thereby managing communication complexities arising in relation to it stakeholders. Hence, its ability to synchronise image, identity, reputation and human resource management .