Case Study Of Upm Kymmene

1645 words - 7 pages

UPM-Kymmene Group Case StudyQuestion 1: Managing customer relationships has been identified as a key success factor for Wisapaper. Therefore for continuos improvement of customer relationships, Wisapaper has employed several management tools. The aim of implementing Total Quality Management (TQM) is focused on identifying and improving internal processes related to customer relationship management. Furthermore TQM assists management in systematic problem solving. For example Wispaper has identified that an area requiring improvement is the handling of claims from customers. Utilising TQM standards Wispaper has implemented an action plan to improve the handling and processing of claims via Lotus Notes - hence managing customer relationships.Process management looks at the core business processes and simplifies these further while attempting to mitigate costs in the organisation. Wispaper has evaluated departmental processes (i.e. Production, Marketing, Finance & IT etc.) and provided performance measures to improve these processes in relation to customers (i.e. customer measure).Accurate customer profitability derived from costing systems (i.e. ABC) provides management with fiscal information for decision making. Apart from being useful in management decisions, profitability data can also be used in lower levels of the organisation, such as an overseas sales office in managing customer accounts. For example offering discounts to customers who purchase in bulk and accept less frequent deliveries.Question 2: Wisapaper has identified that it needs to expand globally beyond Europe where they have strong market share. In order to compete globally its focus strategy is to be customer orientated. To do this Wisapaper has developed segmentation strategies to define existing customers. This will enable Wisapaper to tailor their marketing mix to these specialised segments. Furthermore Wisapaper has dedicated resources, both internally and externally on acquiring customer information (i.e. surveys and interviews). This will enable better understanding of the buying patterns and thoughts of customers along with competitor information (i.e. assist in strategies of customer retention).ABC is used as a tool by Wispaper in tailoring customer service and marketing strategies in different customer segments based on the levels of customer profitability. ABC has given management reliable and accurate information on customer profitability compared to other costing systems used in the past. For example management could implement pricing strategies for different customer segments. Customers that are less profitable under an ABC costing system compared to other systems can have pricing tailored so that they are market competitive along with being profitable.Question 3: It depends on the complexity of the activities related to the production and sales and the degree of ease to identify the activities to relative product. Since the differentiation of its customer's...

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