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UNIVERSITY
OF WALES
ACKNOWLEDGMENT
My gratitude extends beyond the people mentioned here. As I see it, everyone who has
contributed in some way or another to help me do this MBA bears some responsibility to me
actually getting to this point. It was never my intention to study further however fate and
circumstances proved otherwise.
First and foremost I would like to thank Professor Bruce Sheppy, my supervisor who was a
source of encouragement especially when I was about to give up. In addition, I extend my
gratitude to my mother Philomena DCruz and Cavendish College Director, Mr. Mohammed
Sadeghian who instructed me to do the MBA in the first place. Professor Alan Taylor who
taught me the importance of quality management and Professor Ambrey Scholtz who taught
me project management and gave me the opportunity to project manage the British
Accreditation Council inspection at Cavendish College in May 2010.
I realize that nowadays with so much going on in our lives with work pressures, studies and a
personal life to juggle, writing a twenty thousand word dissertation is quite a challenge.
Perhaps part of the glory of getting an MBA qualification is associated with this entire
balancing act. I found encouragement in the most unexpected places and although I reached a
point of giving up on many occasions the people around made me realize that giving up is not
an alternative I could consider anymore. Not for this dissertation and not for anything I set
my mind on.
One major lesson I have learned that would stay with me through life, it is probably the
quality of persistence and power of routine.
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Dedication
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DECLARATION
I hereby declare that the work which is been submitted is my own work, except otherwise
where it has been stated. The Harvard referencing system has been adopted in order to quote
the ideas of other authors.
This research is been submitted to the University of Wales for the requirement of the degree
of Masters of Business Administration. Also this piece of research has not been submitted
for any other degree in any other university.
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Abstract
This study aims at examining the link between customer relationship management
and recruitment of quality students from the Indian sub continent.
The research carried out by the author focuses on the importance of managing inter
personal relations between internal as well as external customer and recommends a
strategy to create a system that can be executed by any college to improve its
recruitment strategy..
The study indentifies flaws and fundamental lapses and oversights in current
recruitment strategy with Cavendish College as a case study and indicates how the
various departments with the college can look upon each other as internal customers
and hereby improve their productivity and decrease the rate of errors, reduce the
response time of preparing documents as well as correct errors during the production
process thereby introducing lean management with a goal to adding to overall
customer value.
Customers are considered to be employees of the college, the agents, their staff, and
the students, the parents of the students and the United Kingdom Border Agency and
other stakeholders. Value is considered from six different points of view as depicted
by Paynes six market model. The major contribution of this research is that customer
relationship management taking into account internal as well as external customers
TPIs directly impacts the quality of students.
Two major assumptions are that all private colleges suffer from similar customer
relationship management deficits and the commission structure is not biased.
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Table of Contents
Acknowledgement
Dedication
Declaration
Abstract
Table of contents
Industry background
1.2
Purpose of study
1.3
10
1.4
11
1.5
Limitations
12
Introduction to services
14
2.2
15
2.3
Who is a customer
16
18
18
19
2.4
20
2.5
25
2.6
29
2.7
32
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Chapter I
Introduction and Industry background
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from health and safety matters to academic, staff and human resource management. Having
been granted their sponsorship licence back as well as successfully extending their BAC
membership Cavendish College is keen to maintain their status and not suffer any future
blows to its reputation or business. The author seeks to identify fundamental weaknesses in
the management process and outline a series of measures to boost International sales and
increase profitability with a view to create sustainability in this extremely competitive
industry.
Although trends constantly change and recruitment markets vary, India has remained a strong
contender in providing students to Cavendish. With a network of more than twenty
operational agents in India, excluding their sub-agents the management seeks new ways to
manage the recruitment process more effectively in order to meet the new UKBA legislations
and well as keep numbers up. Over the next several months Cavendish College seeks to
revamp its marketing strategy and internal management system to adopt and assimilate pre
defined control mechanisms set by the quality management authorities such as the BAC as
well as to incorporate a clear structure in order to effectively manage existing students and
foster stronger relationships with business intermediaries such as the educational agents who
operate as the face of Cavendish in their respective countries.
Business generated through recruitment of international students follows a standard process
of students approaching agents in their home country (In this case India). The agents are
allocated an advertising budget to generate an interest in the college and fairly represent the
college. Once the student is recruited the agent usually gets a commission of between ten to
twenty percent depending upon the number of students he recruits. The current structure for
new agents is ten percent for the first five per year and fifteen percent for each student sent
over the fifth. Existing agents enjoy a commission of twenty percent and often share this with
subagents they appoint with or without express permission from the college.
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Although some of the major market leaders in education such as the United States of America
and Australia have clamped down on recruitment through agents, England has very little
control on this vast under regulated market as reflected by the suspension of over sixty
colleges by the UKBA and indicated by the UKBA suspending recruitment from the entire
North India region in February 2010. Across the globe, the United States of America is
slowly releasing its grip on recruitment and is now working on a quality management system
to attract good agents to operate in the market. A seminar conducted by Mitch Levintha Vice
Chairman of the American International Recruitment Council (AIRC) has indicated several
areas where recruitment could be regulated, monitored and quality controlled. Measures
included by the Australian authorities involve allowing licences to recruit to only 22 out of
the 121 companies that expressed an interest, (Indian Express, 2010).
A major concern the college faces is how to manage the unethical recruitment practices of the
many agents and sub agents and agents who operate purely on a financial basis with no
regard to the students ability and intention to study. Having worked out loopholes in the
UKBA controls many agents recruit students who eventually drop out of the system in order
to seek illegal employment in the UK. This trend has become increasingly worrying and
affects the general health of the college including its reputation.
1.2 Purpose of study
The main purpose behind this study is to target effective recruitment in India. By effective
the author means students who have a clear intention to study in the UK, who can afford
living expenses and course fees, who do not necessarily rely on gaining employment in order
to attend classes as well as having the ability to successfully complete the course applied for.
This will be done through managing weak agents and creating a structure in order to identify
a students intention pre-arrival. The measures include checking financial records, previous
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Objectives summarized:
1. Investigate the relationship between CRM and sales
2. Introduce a CRM strategy
3. Improve sales
4. Improve quality and quantity of students
5. Improve staff morale
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1.5 Limitations
Customer perception- Students who factor as a major target group for the questionnaires have
a wide range of perceptions on service quality. Many come from different backgrounds,
cultures and their exposure to western education is minimal if not non-existent until they
arrive. Therefore what may be an acceptable level of service to one student may be
unacceptable to the next. The researcher has tried to circumvent this hurdle by targeting a rich
mix of students from multi cultural backgrounds. Employing phenomenological research as
well as quantitative research methodologies information was gathered which seeks to
represent the opinions of the larger majority of students.
Internal customers- Research carried out investigating the morale of employees within the
organization faced the problem of personal bias. Many admission staff are unsure about their
future plans due to the lack of job security affected by their immigration status and reliance
on work permit and ever changing VISA regulations. This uncertainty affects their decision
to see themselves in the organization over the next five years. In addition, admissions staff
that have chosen agents to work are biased to a certain degree on the way the agents operate
and do not allow and transparency into their relationships. This may be due to cultural or
linguistic reasons (Agent being unable to speak English). This may also be due to the fact that
many officers plan on becoming agents themselves.
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Chapter II
Literature Review
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differentiates value in terms of absolute value and relative value. He gives readers the
analogy of one menu charging fifteen pounds for a plate of fish and chips and six pounds for
a roast chicken and compares it with another menu offering the fish and chips for fifteen
pounds and a roast chicken for twenty nine pounds. He points that the fish and chips on the
second menu is considered having less value even though the absolute value stayed the same
at fifteen pounds. It was what the meal cost in relative terms that affects the perception of the
good or service. It is quite apparent through looking at a variety of service sectors how
Smiths classical view could not apply to the current nature of a service. This raises a
question, are services also evolving? Is our understanding of a service not absolute, but
perhaps only relevant to our time? (Wirtz and Lovelock, 2007) elaborate on the evolution of
services as being constantly shaped by government policies, social changes, business trends,
advances in technology, and internalization. When we look at the travel sector and
companies such as Travelocity, Southall travels, and others we realize that a service is not
necessarily perishable right after production, nor joined to the producer. On an economic
perspective, the service sector alone contributes to 48% of Indias GDP. (CIA, 2010). Let us
now examine a service and how it has evolved. We may then be in a better position to create
a definition based on what we think is relative to its purpose in a current marketing
perspective.
What is a service and who is a customer?
The simplest definition of a service is deeds, processes and performances provided or coproduced by one entity or person for another entity or person (Zeithaml, Bitner, Gremler,
2009). Services can also be defined as Economic activities offered by one person to another,
most commonly employing time-based performances to bring about desired results in
recipients themselves or in objects or other assets for which purchasers have responsibility
(Wirtz and Lovelock, 2007). This reflects the idea that there is an exchange of value.
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Assuming we adopt the classical view of the four characteristics of services, (Palmer and
Adrian, 2000) to be Intangibility, Perishability, Inseparability, and Heterogeneity the author
has come across a very interesting analogy proposed by (Yagill, 2008). Yagill conceptualizes
the service encounter as a theatrical experience. He fantasizes that the theatrical elements
coalesce in the duration of the service act to eventually create a performance. Wirtz and
(Wirtz and Lovelock, 2007) challenge the classical view of services through the example of a
doctors surgery appointment. There was no transferring of ownership to you, neither did the
doctor lose his ability to perform the surgery on another person after he worked on you
(inseparability), you derive the value of the surgery far after you have been to his clinic
(perishability). Many a time services attach themselves to a product as in the case of a
telephone/broadband company such as British Telecom (BT). This makes the service tangible
to a certain extent. One pattern that emerges through the evolution of services and its
understanding is that it seeks to create value to the customer. Even though the purchasers may
not necessarily have something to show for the money he spent i.e. a parachute jump or an
evening in a night club, it is very clear that much has changed in the world of services.
Hence building upon these arguments the author proposes this definition for a service
A service is a process or a series of activities carried out by one or more individuals or an
entity such as an organization that seeks to create or leverage value perceiving relative
benefit and less perceived sacrifice to the consumer either immediately or over a sustained
period of time.
2.3 Who is a customer?
A customer as defined by (Kincaid, 2003) is a human being involved in the production
process of a good or a service from the decision maker to the decision influencer to the end
user. This definition raises a question. In the case of pet food, who is the customer? Is it the
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pet owner or the pet itself as it is the ultimate consumer and if it doesnt consume the
product, the owner will resort to alternative products
A more reassuring definition of a customer put forth by the ISO 9000 is an organization or
person that receives a product or service. (Kincaid, 2003) indicates business as a set of
relationships and points out that the moment people become aware of one another a
relationship starts. In many service industries firms are valued on the basis of their customer
base. The current customer relation represents value, (Dominick and Georgi, 2006).
Therefore the implication of relationship management between organizations and customers
must be enormous. Emotions are at the core of every action we take and yet for years
businesses have ignored them (Shaw, 2007). Shaw elaborates, Focus on the customer, not
the organization, and by doing so we will give you a differentiation through increased profits
and higher shareholder value. He points out that a transition from an organizational focus to
a customer focus will be painful, resource hungry and very costly. (Sexton, 2009), in
apparent contradiction however says that In the long run an organizations value depends on
two things, how it manages value and how it manages costs, clearly reflecting value from
the view point of the organization. (Gilligan and Wilson, 2009) presents a more neutral view
If companies knew how much it really costs to lose a customer they would be able to
accurately evaluate investments to retain customers. (Kincaid, 2003) reminds us that a
customer centred company makes plans and strategies based on the anticipated impact it will
have on its customers.
(Deming, 1986) said Just to have the customer satisfied is not enough.....you have to do
better than that! Sower (2010) elaborates to explain the importance of establishing who a
customer is. He says If we sell our products to a wholesaler, is he our only customer?,
Internal customers are often forgotten and taken for granted. Understanding a customer, his
needs, what he values, who he is and where he is a useful tool in developing a quality
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management system. After examining the above interpretations of a customer the author
identifies a customer as those working within the organization in the chain of production, as
well as the third party intermediaries or educational agents and the students, their parents and
other stakeholders, including society as a whole (See figure below). The idea that business
organisations have a range of stakeholders other than shareholders is obvious. Yet
stakeholder theory has not guided mainstream marketing practice to any great extent,
(Polonsky, 1995). Polonsky draws our attention to the importance and responsibility of every
individual associated with the production and delivery of the service. Paynes six market
model discussed in detail further in this chapter identifies the various stakeholders of an
organization and distinguishes them into six major customer markets. The figure below is an
adaptation of the service marketing triangle explained under the role of intermediaries and
educational agents.
1. Internal customers: Inter-departmental college staff. An example scenario of a
service provided to an internal customer is as follows. A request comes into the
college from a potential student to apply for a course. The request is processed by
admissions and forwarded to academics that check the qualifications and prepare the
offer letter. The letter then goes back to the admissions team who acts as the customer
and scans the document for any errors or imperfections. He then forwards the
document to the agent who acts as an intermediary who further scrutinizes the
document and finally passes to the student who is the final customer.
2. External customers- Are the agents, the students, legal advisers, the students
parents, and the United Kingdom Border Agency (UKBA) who have set certain
standards in order to filter bogus students from entering the U.K. An application that
bears a mistake will cost the student and the college hundreds of pounds to reapply
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hence a clear stage gate process must be enforced through defining who customers are
and where responsibility lies
Agents
External customers
Making promises
Staff Dept 1
I.e. Admissions
Staff Dept 2
I.e.
Academics
Students
Parents
UKBA
Others
Internal customer
Enabling promises
The current working culture of Cavendish College has already adapted internalization of
departmental customers to certain extent. Transforming current relationships and ideologies
must be incremental and anchored through short term gains that management should display
to employees. Understanding the motivation behind relationships will give us a key insight
into how to develop a strategy to implement relationship management between all customers.
Research indicated in the staff questionnaire inquires what motivates the staff and what
barriers exist.
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The transformation of relationships coincides with the emergence of the concept of agency
theory, (Verheijde, 2006). Traditionally, agency theory represented a financial perspective
however upon closer examination Verheijde underlines that Agency theory assumes that
psychological self interest is the sole responsibility of all the stakeholders. He elaborates that
cost effectiveness and responsibility are the cornerstones of the theory. In plain English,
Agency theory can be described as the method that seeks to get the best deal for both parties
through each one obtaining certain degree of relative value through the transaction.
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that quality is relative and can be looked at from the point of view of the company and the
point of view of the customer. Is quality dependant on what the relative value of the
commodity is? And from whose perspective? If we look at this from economic perspective of
supply and demand we may be able to answer this question. Demand refers to how much
quantity of a product or service is desired by buyers and supply refers to how much the
market can offer, (Investopedia, 2010). If the demand for a commodity or service is
indicative of the price we pay for something and vice versa then in a market of many
suppliers and relatively stable demand perhaps the motivation to purchase a product now
relies on something else, i.e. Quality. In the educational arena there are many basic quality
standards such as the British Accreditation Council, Ofsted etc, however the willingness of a
student to pay over and above a certain price i.e. paying a fee of 17,000 at UCL for a
foundation course as opposed to paying 6000 to Cavendish for a foundation course now
depends on what the customers perception of the value of the qualification. What services are
attached to the course? Both have passed the quality standards and yet one course costs
nearly thrice as much. Therefore quality is relative and depends on a customers perception of
its relative value. In the case of education it is related to the job market, educational
experience, work experience and many other factors used by marketers to attract business.
Quality management in the service sector has suffered historically from an apparent diversity
of unrelated approaches. Whilst the founder of the service quality or servqual model
Parasuraman argued with Boulding and Sasser who went back and forth over the proper
interpretation of desire, should and can the instability of service quality grew. It was
eventually established (by Parasuraman) that there were five major dimensions of
SERVQUAL (Kanji, 2005).
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Dimension
1. Tangibles
Description
Physical facilities, equipment and appearance
of personnel
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy
A pattern finally emerged from the confusion through findings of Parasuraman, John and
Tyas and Boulding which informed that service perceptions influences service quality,
of which reliability emerged as the most important of all dimensions Parasuraman,
1999. An example of how service perceptions influence service quality can be explained
through a study done by Yan Lu in 2008. His study involved how quality perceptions of
elder generation Americans affected the sales in a supermarket. The study showed that as
people grow older, their habits change and the research indicated that shopping is a
major part of grey consumers' lifestyle and a source of pleasure rather than a necessary
utilitarian chore. It also revealed that elderly customers pay far more attention to the
service aspects of delivery and the buying experience than younger people indicating that
service perceptions influence service quality. (Gronroos, 2000) defined perceived service
quality as the outcome of a comparison between perceived service and expected
service. There was still some confusion as to which attribute would be considered most
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important to customers bearing in mind that every customer was different. (Driver, 1999)
presented a view that seemed to sit well with his contemporaries, which essentially
proposed that the attributes would lie on a continuum ranging from the least interpersonal
to the most interpersonal as depicted below.
1. Availability
Least interpersonal
2. Access
3. Security
4. Comfort
5. Aesthetics
6. Cleanliness
7. Competence
8. Functionality
Getting the service right
9. Responsiveness
10. Reliability
11. Integrity
12. Communication
13. Attentiveness
14. Flexibility
15. Care
16. Courtesy
17. Commitment
18. Friendliness
Applying this continuum to the quality management system of Cavendish College can be key
to understanding customer expectations in this industry. The first six dimensions can be
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managed through an external and internal marketing perspective where the department will
ensure information is available to all customers as a priority over the rest. This will be
followed by access to the information through pre set channels. For example: In the event of
Cavendish marketing it Masters of Business Administration course in a state such as Goa,
India. It is essential to channel information of the availability, eligibility and course structure,
fees etc to the potential market. I.e. Potential students who reside in Goa, India and have
finished their Bachelors degree. Access to this information is through the agents and via the
website.
When it comes to getting the service right, in the same example we need to display our
competence in terms of delivery. This is pre and current sales. In the pre sales stage it refers
to that marketing aspect which communicates the success of alumni, the general grades
awarded to the previous batch, the career opportunities and the wealth of information
available to students once they enrol. The main idea which should be communicated is the
value that will be generated to the student once he completes his Masters of Business
Administration. Reliability will emerge as the most important as the customer gap will try to
emerge at the point when students perceptions will not meet the actual delivery. Hence in the
pre sales stage, the relationship managers duties must be to ensure that there is no
misinformation given to the student by the agent or no false promises made. I.e. Service
marketing triangle; promises made = enabling promises.
Dimensions twelve to eighteen see the emergence of the day to day running of the
organization and response to the students or current sales. From applying for college letters to
getting results to welfare issues and cultural adaptation, students will have a multitude of
requirements that must be addressed by the college effectively and in a manner that is
professional and seeks to solve the problems of the students.
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3. Price:
4. Promotion:
5. Process:
Includes all those activities that are part of the delivery process.
Remember the example of the theatrical performance.
6. Physical
environment:
7. People:
8. Productivity
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Product Vs Consumer- Bob Lauterborn was of the opinion that there was no point in
developing a product and then marketing it. He proposed businesses do it the other way
around. Find out what customers wanted and build a product or service around their wants
and desires.
Price Vs Cost: He took into a very important consideration that cost may be reflected in the
customers view, not only in monetary terms but for example in the case of a cinema, driving
to the cinema, the mental debate of whether or not to watch a horror film and its impact on
the persons dreams and so on. He factored many other considerations into the cost of a
purchase decision rather that merely taking into account the cost of production from the
organizations point of view.
Place Vs Convenience: He examined the component of convenience against place of
delivery. In the service sector location is key, however it may be more suitable to study in a
college of less repute in an area that more convenient.
Promotion Vs Communication: He argued that promotion was manipulative whilst
communication was interactive and personal and that a shift in focus from the four Ps to the
four Cs would change customers perceptions and make business more successful.
Pricewaterhouse Coopers 2000 classified communication into four main categories.
1.
Mass communication
2.
3.
Direct marketing
4.
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(Wilson, 2008) pointed out that much of the difference between customer perceptions and
their expectations could be called the customer gap. He attributed four factors that influence a
customer gap namely
1.
2.
3.
4.
Reflecting on (Gummessons, 2002) view of four impacts on relationship marketing the author
has compared the customer gap to apparent solutions provided by Gummesson.
Wilsons 4 attributes of the customer gap
standards
can be reached.
While considering relationship marketing one must not ignore the importance of
stakeholders, (Polonsky, 2005). The author depicts the different customer markets through
Paynes Six markets model as depicted below. Each market represents stakeholders who have
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their own perceptions of service or financial value which is relative to industry standards,
cultural beliefs and personal ideas.
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The author recommends a synthesis of Paynes six market as well as Gummessons views
confirmed by the research carried out through the questionnaire inviting answers on who the
college staff considered as the customers of Cavendish College. This would lay a foundation
into making recommendations.
Gummessons
Payne
Recommended model
Differentiate customers by
reached.
we establish a
communication channel
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customer as an individual
person above
in place SERVQUAL
person above
standards.
Understanding the customers mind is imperative when formulating any marketing strategy or
quality management system. (Denton and Brown, 2010), point of seven factors that influence
a students choice when applying to colleges.
1. Credibility and reputation
2. Assessment, learning and teaching approach
3. Holistic student experience
4. Corporate culture
5. Portfolio expertise
6. Location
7. Their culture, customs tradition and country of origin. Please see customer
relationship marketing and International relationship marketing for an
understanding of the importance of taking into account the employees cultural
background when formulating a customer relationship management strategy.
8. Others
They elaborated to include that the 1990s saw sustainability as a key value to an institutions
profile, today it is the brand facet. (Scott, Lasker and Burtscher, 2007) foresee a similar
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trend as American universities now in England, which is most universities and colleges will
attract and seek support staff who are capable of fulfilling the profile raising role of
stimulating and developing public debate.
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2.8 Origin and theories of customer relationship management: Traditional markets grew
out of the inset of mass produced consumer goods, (Godson, 2009). (Gronroos, 2007) pointed
out and criticized the four P approach to marketing saying What worked in 1960s
America is not necessarily going to work in markets today. Further development of the 4 Ps
were the seven Ps by Boom and Bitner. A majority of the new approaches included the
element of human relationships which the tradionalist view overlooked (Godson, 2009).
(Gummesson, 1987) concluded that traditional marketing has not evolved and indicated nine
issues to challenge traditional marketing (see table below). Thus, the weaknesses of
traditional marketing models heralded a new area marketing. Organizations started looking at
marketing through a different lens and applied new relationship drivers to boost sales,
sustainability and profits through customer relationship management
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Organizational culture is defined as the shared values and meanings its members hold in
common, which are articulated and practiced by an organizations leaders (Weiss, 2009).
Every country and every civilization is subject to its own set of beliefs, languages, customs
and traditions. Understanding each cultural background is imperative in the process of
relationship management especially in an International environment. Often organizations do
not take into account cultural differentiations when applying merger and acquisitions
strategies or expansion. (Ford, 1987) indicated that companies do differ culturally and this
plays a significant role in managing people. Empirical studies carried on by (Johanson and
Wiedersheim-Paul, 1975) shortlisted culture, politics and levels of education as key
determinants in a phenomenon called psychic distance. Although originally coined by
Beckerman in 1956 they defined it as 'factors preventing or disturbing the flow of
information between firm and [foreign] market'. The implication on managing relations
between Cavendish College and its international agents involves taking into account cultural
differences and maximizing trust (character based and process based trust) as well as
reducing the psychic distance through customer relationship management.
The nine issues presented by (Gummesson, 1987) challenge traditional marketing and its
relevance in 2010 because of the evolutionary nature of customer perceptions, relative value
and other factors explained in the table overleaf.
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1. The many headed customer and the many headed seller Indicating that marketing
today involved complex networks of relationships between customers, some present,
some overseas, some within an organization, others external. Each one having their
own perceptions experiences, expectations and demands.
2. The real customer does not always appear in the market place Sometimes the
approval of an external party is required in order to conduct a sale. I.e. UKBA new
rules TIER 4 Sponsor.
3. The customer as co-producer There is a two way relation between the customer and
the producer wherein customers participation is sometimes required, i.e. students who
have the capacity and intention to study a course.
4. Market mechanisms are controlled mechanically He pointed out that traditional
marketing can be undone by webs of friendships, networks and memberships of clubs
and so on. This indicates the referral markets spoken of in Paynes six market model.
5. Market mechanisms are brought inside the company Raises the issue of internal
buyers and sellers.
6. Inter-functional dependency The idea that everyone in the organization plays a role
in customer satisfaction
7. Process management and the internal customer He said that internal customers must
play a significant role. Every department is a customer of another department. For
example a college that has a sales team who makes commitments to prospective
students about a CAS (Confirmation of acceptance of studies) letter being issued to
them in three working days must liaise with the admissions and academics to fulfil
that commitment. Hence the responsibility of the academics and admissions is to their
customer who is the sales, as well as the final customer.
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Adaptations of Gummessons nine issues into a Relationship model indicated four main areas
where exchanges took place. These exchanges/ relationships affect the organizations
customer orientation, (Godson, 2009), see figure below. What is even more interesting is
that Gummessons views are reflected by Paynes six market model and clearly now, identifies
the importance of the following
1. The importance of Internal marketing
2. The importance of adopting a culture or attitude of service
3. The internalization of customers and responsibility resting with every department
acting as a whole
4. The importance of relationship marketing through the organization, internal and
external.
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Supplier Partnership
Goods
Service
Internal Partnerships
Employees
Functional departments
Internal business units
FIRM
External Partnerships
Competition
Government
Alliances
Customer Partnership
Intermediate customer
Final customer
2.10 Impact of relationship management on sales: (Raab, Ajami, Gargeya and Goddard,
2008).
1. Every satisfied customer brings in at least three new customers
2. Unhappy customers express their feelings to ten potential customers
3. The rate of repeat sales increases when improved reliance and satisfaction increases
4. Regular customers exhibit less price sensitivity than new customers
5. Customer oriented companies can charge higher than competition
6. Marketing and sales costs for maintaining customer relationships drops
7. Reducing the level of dropouts can raise profits by as much as 85% (Topfer, 1996)
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(Levitt, 1983) and (Dwyer, 1987) see five stages of customer relationship management whilst
(Scanzoni, 1971) amalgamates them into three stages. (Georgi, 2006) however illustrates the
lifecycle in a concise easy to understand growth phase much life that of a product. The
customer relationship lifecycle below shows the phases of growth from acquisition to
recovery or dissolution. (Georgi, 2006)
Intensity of customer
relationship
Customer recovery
Customer retention
Customer acquisition
The customer acquisitions stage seeks to reduce any uncertainties associated with the
product, processes and perceptions. Here the importance of communication such as the web,
and other tools plays a key role especially when it comes to international customers who
cannot be physically present during the time of purchase. The internet or World Wide Web
can be a powerful ally or dangerous threat when it comes to bridging the customer gap and
disseminating information. George Masters a user of the Apple IPod created a short animated
39 | P a g e
advert at home to the tune of Tiny Machine, by the Darling Buds an 80s pop band. The ad
was a series of colours, visual animated imagery and kaleidoscope colours. For several weeks
the ad went unnoticed until it was picked up by a blog and the ratings went viral. With more
than half a million views in a span of six months the video created more buzz in the online
community than any of Apples mainstream commercials. Thus, indicating that the internet
can be a powerful tool when considering a marketing campaign. Sites such as Facebook and
twitter can be employed to keep students and agents posted on recent events, updates and
future plans.
Customer retention- focuses on alignment and emotional connections. This may be between
the college and the agent or the college and the student or the agent and the student. (Denton
and Brown, 2010) speak about the phenomenon of Disintermediation which is when
stakeholders become so remote from the organization that positive and mutually beneficial
relationships are compromised. He elaborates, Stakeholders crave person to person
communication. In fact one interesting point made by Brown is that stakeholders may not
necessarily be concerned with the competition, in quite contrast they may be looking for
attention and motivation from within the organization. The issue of student retention in the
UK is gaining increasing importance with upto 17% increase in drop outs, (Christie, 2004).
The reason why students drop out relate to experiences in social and academic integration,
(Tinto, 1994).
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2.12 Internal marketing: The notion that internal relationships are every bit as important to
the organisations external customer relations is intuitively sound and is recognised widely
within the relationship marketing literature, (Morgan & Hunt, 1994). The major premise of
internal marketing according to (Ahmed and Rafiq, 2002) is that to have satisfied customers
the firm must have satisfied employees. Gummesson draws on the Process focused internal
marketing approach which says that internal marketing is concerned with the internal
customer where every member is both a supplier and customer of other employees,
(Gummesson, 1987). The current approach of Cavendish College is traditional which
separates all the departments furthermore there is a tendency to alienate marketing from the
core values of company. (Denison and McDonald, 1995) proposed that organizations can no
longer afford to isolate marketing from the rest of the firm. They say that customer centricity
should be a philosophy running through the veins of all departments, reflecting on a common
thread that connects the whole organization, much like a human body performing all the
functions required to achieve an instruction set by the brain. Using the similar analogy, the
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author would like to shed some light on a study carried out by Professor Bruce Lipton. Dr
Lipton a cellular biologist noticed that human cells responded more to environmental stimuli
rather that DNA programming as conventional sciences propounds. His study indicated that
similarly pupils in his medical class had better test scores when they worked as a team i.e. the
strong helping the weak etc... His conclusion was that human beings tend to perform better
when connected by a common purpose and goal. This perhaps is another indicator of the
importance of the entire organization working towards a common objective keeping the tenet
of customer service in mind. See customer relationship marketing and Paynes six markets
model to verify the importance of identifying an internal customer, internal marketing and
relationship management as a system in order to manage these stakeholders.
2.13 The role of third party intermediaries and educational agents: A third party is a
company that provides multiple logistics services for its customers, whereby the Third-party
logistics provider is external to the customer company and is compensated for its services.
(Langley, 1999) where Logistics as defined by the Council of Logistics Management is that
part of the supply chain process that plans, implements, and controls the efficient, effective
forward and reverse flow and storage of goods, services, and related information between the
point of origin and the point of consumption in order to meet customers' requirements. In the
case of an educational institution in the UK such as Cavendish College, there is an ever
increasing reliance on third party intermediaries or educational agents to recruit students from
overseas. A course that normally costs 3900 for a European student at Cavendish College
costs 6000 for an international student indicating the revenue earned through marketing the
college to overseas students. Research carried out by the independent (Morris and Russel,
2007) estimated that overseas students boost the UK economy by 8 billion a year. Much of
the foreign applications come via educational agents. Many of these agents work in tandem
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with the British council as trusted partners in their home country offering valuable advice
and guidance to students intending to pursue higher education in the United Kingdom. In
exchange for the business Universities and colleges offer the agents upto 20% of fees by way
of a commission and incentive to generate more business. Over 70% of Cavendish College
students are international of which a vast majority are from outside the EU from countries
such as India, Pakistan, Sri Lanka, China, Korea, Japan, Philippines, Russia, Nigeria,
Mauritius and others. Without its network of agents in these countries Cavendish College
would find it impossible to compete with other private colleges in the same sector. The
importance of relationship management with agents is depicted by the diagram below.
The importance of relationship management and coordination between agents, employees of
Cavendish College and management can be depicted with the help of the services marketing
triangle.
2.14 The services marketing triangle
Internal marketing
External marketing
Enabling promises
Making promises
Staff
Keeping promises
Agents
Interactive marketing
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The services marketing triangle identifies three key players that are essential to ensure the
success of a service offering, (Strydom, 1998).
2.15 Diagramatic representation of Relationship manager, agent and Cavendish
students.
Relationship manager
Flow of
Information
Feedback
Flow of
Information
Prospective and current
students
Feedback
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low commercial long term credit and lack of private long term finance. Research carried out
by the Wilson centre conveys a gloomy picture of the Russian education system as well,
claiming that Russia spends less, percentage-wise of its GDP on education than any other
industrialized nation and that the current education system serves only the top 20% of
society, (Koehn, 2010). Russia has four types of educational institutions.
1. Universities
2. Academies
3. Institutes
4. Private Institutes
There are currently around 1000 Higher education institutions in Russia of which 655 are
state owned. (Russian higher education school of economics, 2010) Damning information
obtained from US consensus bureau (Nationmaster 2010) gives us the following demographic
statistics of the current target market of youth in Russia.
Current Population: 141.9 Million of which in the year 2010 there are 17 million youth aged
between the years of 15 and 30, however by the year 2020 the numbers between the same age
group will fall to 11 million.
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Brazil
Brazil is one of the last countries to enter the recession and one of the first to emerge thank to
a robust macroeconomic strategy and strong fiscal policies.(Economic Times, April 2009)
Finance minister Guido Mantega says that he forecasts and expansion of the GDP by 4% by
the year end 2010. (Reuters, April 2010).
Although this very large country offers promise to foreign investors the hint of post
colonialism and a struggling nation still makes its presence noticeable through careful
analysis of overall development. Many economists argue that the very nature of development
is characterized by pockets of under and over development (Kreinin and Plummer, 2002)
however Brazil still has 26% who live below the poverty line, (CIA 2009). The government
encourages industrial development and foreign investment yet in the educational sector the
lack of student loans, financial instruments and incentives make Brazil a difficult market for a
short term investment. The macroeconomic policies are designed for foreign investors not to
have any exit strategies and therefore look at long term gains. According to (Schwartzmann,
1997) no private educational institution has declared itself as profit making. Perhaps this is
due to four major instruments that interfere with foreign accreditation. The bodies are:1. Exame Nacional de Cursos
2. Expert evaluation committee
3. Provao, or the National consensus of higher education
4. The Brazil council of education which controls initial approval to operate as a
university or college, course and study programmes and even puts a ceiling on course
fees. This may be seen as a good thing as then students may look overseas for
education; however the lack of financial instruments hampers this.
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A study by the Language travel magazine, October 2008 issue indicated that the UK came
seventh in a choice to study abroad with Canada and the United States of America coming
first and second respectively. Research carried out by the same body indicated that 54% of
recruitment of students was through word of mouth which reinforces the long term approach
to establishing a brand and creating brand awareness for Cavendish College or any foreign
investor.
China
With a population of over 1.3 billion (World Development Agency 2010), China ranks the
highest amongst overseas students coming to the UK to pursue higher education, (Mackie,
2009). The Telegraph in September 2009 published that there are over 75,000 Chinese
students in the UK with over 3,500 coming in every year, (Telegraph; Beckford, 2009). With
its large geographical area and immense market capacity investors are eagerly looking at
China as a serious contender in overseas BRIC investment, (Reuters, 2008).
It comes as no surprise to curious investors though that China has always maintained its own
set of autonomous rules when it comes to foreigners. Rules that may be swayed in favour of
Chinese companies in the guise of protectionist policies. A recent example of this was the
row with internet giant Google over a censorship issue which eventually forced the American
giant to introduce a new search engine www.google.cn. A move that was described by
Andrew McLaughlin, senior policy counsel at Google as a hard compromise.
There is a saying among economic circles that the Great Wall of China now bears a different
significance. Not one of keeping invaders out, but rather containing their own citizens. The
OECD (organization for economic development) states that amongst a hoard of obstacles in
foreign investment the lack of transparency for state owned or localized business coupled
with foreign ownership restriction makes life very difficult for anyone looking at China as an
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investment playground. Far from the ethical considerations of prison labour and the lack of
freedom of speech, more relevant to the education sector it is important to address the law
that dictates that foreign universities and colleges may only set up non profit operations. In
addition to this stipulation, the company must be a joint venture with a Chinese university
and that all courses, content must be localized and all information regulated by an external
authority and the state, (National state estimate on foreign barriers, 2006). The recent points
based system required students to have an English proficiency before they come to England
will seriously affect Chinese students more than their Indian counterparts due to
a) The lack of access to western media.
b) The use of Mandarin as a language medium in all schools
c) The absences of western schools or colleges
In contrast it can be argued that there are a large number of institutions providing English
language training in China however as compared to India which was a British Colony for
over 400 years, an average of 80% of higher education (A level) and graduate schools
employ English as a teaching language medium (Venkatraman, 2009) which puts the latter in
a far better position to respond to the legal stipulation.
India
It is important to note that education plays a very significant cultural role in India. Early
records followed by (Sharma and Sharma, 2000) infer that an education system in India can
be traced back to the Vedic period (1500-600 BC). The presence of Gurukulas or teachers
domain where students learned religion, hunting, music and other life skills give us an insight
into the importance of education in the fabric of the Indian psychology. It was many years
later with the arrival of the East India Company that Sir Warren Hastings laid a foundation
for the first British educational institution in Calcutta in 1780.
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An economic analysis of the GDP (Gross domestic product) of India by (Mozoomdar, 2002)
indicates a growth rate of India at an average 5.5% however the World Bank and the Indian
economics and statistics bureau (ISB, 2009) indicates an average GDP of 7%. These figures
along with several other indicators point towards significant growth potential in the
subcontinent. India accounts for one fourth of the global portfolio flows to emerging market
economies apart from being the worlds largest outsourcing destination. India is poised for an
economic takeoff. (Purfield and Schiff, 2006). In spite all the positive signs and deregulation
and economic reforms post 1990s India still has a long way to go to offer investors a secure
Investment. A study carried out by KPMG published in the trade and investment
opportunities journal with India by Great Britain: Parliament: House of Commons: Trade and
Industry Committee reflects that many UK companies are averse to investing in developing
countries in spite of the opportunity and the British Chamber of Commerce told us that firms
were more likely to focus on markets closer to home. An example of an investment
opportunity in India was the telecommunication licences that were open to International and
UK investors who restrained from doing so and recently found out that the corruption scandal
that estimated 15 billion dollars was a result of Indian politicians undervaluing the licences
and pre-selling them to local buyers. (expressindia.com). Hence we see any scepticism is
justifiable, however... India has replaced the United States of America as the second largest
investment destination for FDI, (Chaze, 2006).
Statistics revealed by the Times of India in February 2010 revealed that 30% of the migrants
that come to Britain do so on student VISAS of which over 50,000 are Indian. In the view of
the upcoming elections there has been a clampdown by the UKBA on student VISAS. Indian
and Chinese students will be amongst those who will be hit hard as part of the new points
based system introduced in February 2010 requiring students to have a preset English
proficiency depending on which course they apply for. Apart from restrictions on spouse and
50 | P a g e
dependant VISAS it will restrict what the home office calls bogus students from entering
the UK and put restrictions on part time work. As many as 60 colleges have been recently
suspended by the UKBA on different grounds. However, with a population of over 1.1 billion
(world development agency), a rapidly increasing middle class, growing population, low
barriers to Foreign direct investment(as compared to other BRIC countries), availability of
long and short term credit instruments to individuals and organizations makes India a serious
contender in the global market.
A critical analysis of relationship drivers with existing and new agents as well current
relational strategies including high customer acquisition costs, high exit barriers, sustainable
competitive advantage, trust and commitment, risks, perceived need for closeness and
customer satisfaction as relationship drivers (Egan, 2001) will form a skeleton for the
analysis of our existing strategy and intended strategy to improve recruitment of quality
students from India.
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Employee
Markets
Current students
Their parents and relatives
Multipliers: Accommodation agencies, travel
agencies, Gyms etc...
UKBA
BAC
Study UK
Referral Markets
Influencer Markets
Customer Markets
Students
Internal Markets
Supplier Markets
Departments
Finance
Academics
Admissions
Interactive Marketing
IT
Marketing and Sales
Maintenance
Agents
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Chapter III
Research Methodology
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3.1 Introduction
The purpose behind this chapter is the following:
1. Provide a rationale behind his choice of research philosophy in contrast with other
approaches
2. Introduce his sampling instrument
3. Elaborate on rationale behind the survey questions
4. Deliver the findings
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The rationale behind using either method often depends on the research question and topic.
The author employs both approaches given the fact that strengths from either can be applied
to his research question. (Silverman 1993) suggests that it is next to impossible to rely on
empirical data alone as concerns are raised into the authenticity of the observer, the situation
and the methods of recording the information at the time of it occurring. On the other hand
criticisms raised by (Kuhn, 1992) reflected by (Monarch, 2006) sheds light on the ephemeral
nature of scientific findings and how what may be considered truth or reality at a certain point
in time may as well be fiction. Having said this, one must consider various weaknesses of
both approaches in order to make a conclusive decision on which is more accurate and yet
(Benbasat, 1987) has observed that no research is better than the other. In order to measure
the level of employee morale of Cavendish College the researcher as relied on anonymous
quantitative survey questions one of which is the length of tenure the staff see themselves
working for the company and to add to this he also reflects on his personal experience and
informal conversations with the staff over the past five years. Research methodology also
includes the Action research approach where the author seeks to reinforce theoretical data
reviewed in the literature review by a practical application. An example of this is creating an
online Facebook group for students to socialize, network and build a Cavendish community.
He believes that only an interprevist philosophy can correctly gauge the way the target group
reacts to the idea of a social online platform stemming from a physical reality i.e. Cavendish
College. In other words Facebook being an informal community student are perceived to be
more honest with their opinions and the fact that the one hundred and sixty three members
have joined the group signifies that they have a desire to be part of a special Cavendish
society. The researcher then used the social networking site Facebook as a platform to
advertise his survey and invite responses. Having been a student at the college the researcher
55 | P a g e
also employs phenomenological research techniques in order to understand the views of the
staff and students to answer his research question.
The difference between the two research approaches is highlighted by Jorgen Sandberg in
this table below.
Metatheoretical
Assumptions
About
Ontology
Epistemology
Research Object
Method
Theory of Truth
Validity
Reliability
Positivism
Interpretivism
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answered question
30
skipped question
Response
Count 30
Rationale: the question was raised in order to get opinions of students from a cross section of
departments.
answered question
30
skipped question
Response
Percent
Response
Count
Agent
40.0%
12
Friend
20.0%
Internet
30.0%
Other
10.0%
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1.
TV
2.
Moroccan fair
3.
Family
Rationale: The question was raised in order to ascertain which the highest source for
recruitment was. As agents emerge as the highest source of students the college needs to pay
special attention in order to furnish them with the correct information. The next question
indicates areas in which students were briefed pre-arrival. Pre-arrival information is a pre
requisite for any college seeking to recruit international students enforced by the British
Accreditation Council (BAC). This is also an indicator of which channels of marketing are
successful.
Yes
No
Brief overview
Rating
Average
Response
Count
Fees
(transparency)
76.7% (23)
13.3% (4)
10.0% (3)
1.33
30
Accommodation
and living
expenses
53.3% (16)
36.7% (11)
10.0% (3)
1.57
30
Facilities
36.7% (11)
46.7% (14)
16.7% (5)
1.80
30
Course content
50.0% (15)
26.7% (8)
23.3% (7)
1.73
30
Location
73.3% (22)
16.7% (5)
10.0% (3)
1.37
30
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Teaching staff
30.0% (9)
50.0% (15)
20.0% (6)
1.90
30
Academic
progression
40.0% (12)
46.7% (14)
13.3% (4)
1.73
30
Nationality of
other students
23.3% (7)
63.3% (19)
13.3% (4)
1.90
30
Employment
opportunities
16.7% (5)
63.3% (19)
20.0% (6)
2.03
30
Student
services
26.7% (8)
60.0% (18)
13.3% (4)
1.87
30
Rationale: The purpose of this question was to identify areas of information lapse. With a
view to shortening the customer gap this information will eventually contribute to helping
them obtain a realistic perception of student life in the United Kingdom as well as have a
clear career plan. The survey indicated that upto sixty percent of students did not receive vital
information on employment opportunities, student services, nationality of other students and
academic progressions. All these factors play an important role in the career planning and
60 | P a g e
development of an individuals life and yet they have been ignored. For example, seeking
employment as a student is important as it is a source of income to sustain oneself whilst
studying. Without this many students will have to rely on loans or grants which often weigh
down heavily on the decision to complete their studies.
In addition, the college provides very limited extracurricular activities and rely on the
students to organize events amongst themselves. Many students found that the high
percentage of certain nationalities would factor into their decision if they had to recommend
the college to another friend or relative. Lapse in information or incorrect information affects
the process based trust element of a customer client relationship thereby raising questions in
the customers mind about the entire purchase experience. The fundamental principle behind
the service marketing triangle is to enable the promises that are made to the customer by the
intermediaries. The indications from the results above are that there is a massive shortfall in
correct information resulting in the college being unable to deliver on the commitments made
by the agents.
Response
Percent
Response
Count
Yes
40.0%
12
No
20.0%
Some
of it
40.0%
12
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1.
This question is a bit tough. The answer is somewhat, but there are no other options then I am going to choose yes
2.
3.
Some information was fine but some of it like the nationality of students was not. I did not come to study in London only to
be with Indian and Pakistanis and Nigerians. There are no European students in my foundation class and I feel tricked.
Also, Facilities etc could have been elaborated.
Rationale: Service quality dimensions mentioned in the literature indicated that Reliability
emerged as the most important dimension. The purpose of this question was to indicate the
accuracy of the information provided to the students thereby assuring them that they can rely
on the information given to them in order to plan ahead. However, much of the information is
either outdated or irrelevant thereby negating reliability. Upon arrival when the student
realizes the difference between what was told to them and what the reality is, their
impressions of the college and its intermediaries will be negative. This will in turn affect their
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relationship with the college. A combined average of sixty percent (No and some of it)
indicate that the college must train agents on these matters.
Response
Percent
Response
Count
Yes
56.7%
17
No
43.3%
13
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Critical
Importance
Important
Average
Importance
Low
Importance
N/A
Image and
appearance
16.7% (5)
63.3% (19)
10.0% (3)
10.0% (3)
Teaching
Quality
16.7% (5)
46.7% (14)
16.7% (5)
Administration
30.0% (9)
36.7% (11)
Student
services
43.3% (13)
VISA advice
Rating
Average
Response
Count
0.0% (0)
2.13
30
13.3% (4)
6.7% (2)
2.29
30
23.3% (7)
6.7% (2)
3.3% (1)
2.07
30
36.7% (11)
16.7% (5)
3.3% (1)
0.0% (0)
1.80
30
46.7% (14)
30.0% (9)
6.7% (2)
3.3% (1)
13.3% (4)
1.62
30
Nationality of
other students
26.7% (8)
20.0% (6)
20.0% (6)
13.3% (4)
20.0% (6)
2.25
30
Information on
Jobs and
accommodation
40.0% (12)
50.0% (15)
3.3% (1)
6.7% (2)
0.0% (0)
1.77
30
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Rationale: In order to establish areas which students felt needed improving. Of the seven
areas students selected VISA advice as the highest followed by student services and job and
accommodation information. By providing these services the college can help the students
settle in comfortably into their educational life. This will have a positive effect on their
performance as they understand the structure of job hunting, resume preparation, and other
important facets that will contribute to their overall well-being. The lack of information on
VISAS costs students thousands of pounds in re-application fees and some waste valuable
time having to go back to their country as they lose appeal rights due to basic errors made in
their application.
7. How do you feel when you need to approach a staff member for a document or information?
Response
Percent
Response
Count
Confidant
50.0%
15
Hesitant
30.0%
Negative
20.0%
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Rationale: This question seeks to understand the emotion of the student before approaching
a member of staff for information. A positive indicator reflects on general atmosphere of the
college however as fifty percent indicate that they were either hesitant or felt negative the
relationship management strategy must encourage staff to be more helpful and receptive to
students. Cross referencing this result with the staff indicates that the reason staff is
unapproachable and develop a somewhat hostile appearance to students is due to the fact that
they feel students expect more than they can deliver. This negative atmosphere will affect the
students impression of the college over a sustained period of time.
Response
Percent
Response
Count
Yes
33.3%
10
No
20.0%
Depends
on the
course
46.7%
14
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Rationale: Research by (Raab, Ajami, Gargeya and Goddard, 2008) depicted earlier in the
Impact of relationship management table in the literature review indicate two main points
1. Every satisfied customer brings in at least three new customers
2. Unhappy customers express their feelings to at least ten potential customers
The researcher raised the question in order to ascertain what the colleges stand point was in
relation to the above statements. This clearly indicates that twenty percent were unsatisfied
and forty six percent would only recommend some courses. The aim of relationship
management strategy recommended is to improve this ratio considerably.
9. How important in building a good relationship with the College staff for you?
Response
Percent
Response
Count
Very
Important
66.7%
20
Important
30.0%
Average
0.0%
Not
Important
3.3%
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Rationale: The question was asked in order to find out the opinion of the students whether
they felt the need for establishing good relations between themselves and staff. As ninety six
percent indicated that it is, the college must consider developing staff student relationships
through customer relationship management methods.
10. ONLY FOR EX-STUDENTS: If you had the opportunity to re-live the experience in Cavendish
would you do so?
Response
Percent
Response
Count
Yes
37.5%
No
29.2%
Depends
33.3%
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10. ONLY FOR EX-STUDENTS: If you had the opportunity to re-live the experience in Cavendish
would you do so?
Please explain
1.
2.
It was perfect for me because I had no idea what I wanted to do. The best thing after Cavendish is to transfer to university
and make it a proper degree because for me to get a good job I needed a BA. I loved it at Cavendish it was a great start to
my London experience.
3.
4.
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Rationale: to build upon the argument that a large percentage of students are not necessarily
happy with many aspects of the college and others with the courses. Changing course content,
delivery is as difficult task and the findings mostly indicate that the issues students have are
due to the gap between the perceptions and what was delivered. Students also complained
about the lack of many essential student services which adversely affected their experience.
Staff indicated that there is a high reliance on the administrative department and over the
years numbers of students have grown and currently stand at an approximate 600 students.
The ratio of admin staff to students is 1:100 creating an extremely high pressure environment
at the reception. This in turn creates a bottleneck of anxiety on both sides which affects the
morale of staff and adversely affects the education experience of the students. The presence
of only two academic staff for the whole college also means results are delayed; staff is over
worked, frustrated and this transfer onto the students who rely on this information to apply to
other colleges, university, VISA extensions and so on. The researchers experience talking to
quality students over the last three years indicates that they are extremely unhappy with the
following factors:
1. The lack of the feeling of being in a British institution. The presence of a majority of
Indian, Pakistani and Nigerian students is negative.
2. The staff is unfriendly and inefficient.
3. The atmosphere and image of the college is not upto international standards, and the
presence of posters demanding students pay their fees and warnings on implications
of non payment make them feel that there is no customer centricity in the
organization.
4. There is no guidance/welfare officer who can help the students with job applications
and other student services such as VISA advice. (VISA advice emerged as the most
important factor that was lacking).
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5. The college lacked a student culture environment. There were little or no student
activities organized and the only emphasis they felt was on financial matters. I.e.
Have I paid my fees? And am I attending lectures?
Response
Percent
Response
Count
Admissions
46.2%
Academics
15.4%
Administration/Reception
46.2%
Finance
7.7%
Library
7.7%
IT
0.0%
Marketing
7.7%
Accommodation
7.7%
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Rationale: The question seeks to indicate the number of staff in each department. When
cross referenced with question 5 (which department do you rely on to get your job done
efficiently) as well as mapping it with student questionnaire in which sixty percent of student
find that administrative services must improve, it seeks to draw attention to the fact that an
administration of six people (1:100) is not enough to manage the current work load.
Academics staff currently stands at 2 (1:300) another indicator of overloading work resulting
in stressed out staff and unhappy students.
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Response
Percent
Response
Count
Less
than
a
year
7.7%
1-2
Years
61.5%
2-3
Years
15.4%
3-5
Years
15.4%
Rationale: The question was to raise awareness into the fact that many staff does not stay
longer than two years. Only two full time staff has stayed with the company over three years.
High staff turnover is an indicator of low employee morale (Patti, 2000)
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Response
Percent
Response
Count
Yes
15.4%
No
15.4%
Not
certain
69.2%
Rationale: To build upon the previous question the researcher wanted to understand whether
employees saw a future for themselves in the organization. Seventy percent were unsure and
fifteen percent were sure to leave whilst fifteen percent said they would stay. (Davies and
Hurtig, 2008) comment that indicators of low employee morale are the following
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1. Poor working conditions (Indicated by 93% of staff response in the next question)
2. Poor equipment
3. Lack of communication (Indicated by seventy six percent of staff who responded to
question thirteen saying that lack of communication critically affected their
performance)
4. Hypocrisy
5. Redundancy
4. Please rate in order of importance what you would feel will help you improve your efficiency
Most Important
Important
Medium
importance
Low importance
Rating
Average
Response
Count
Incentives
(Monetary and
non-monetary)
53.8% (7)
38.5% (5)
0.0% (0)
7.7% (1)
1.62
13
Flexible working
hours
7.7% (1)
61.5% (8)
23.1% (3)
7.7% (1)
2.31
13
Less
responsibility/Job
rotation
15.4% (2)
46.2% (6)
7.7% (1)
30.8% (4)
2.54
13
Recruitment of
better quality
students
46.2% (6)
38.5% (5)
7.7% (1)
7.7% (1)
1.77
13
Better working
conditions
69.2% (9)
23.1% (3)
7.7% (1)
0.0% (0)
1.38
13
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Rationale: To indicate what areas management needs to improve in order to boost staff
morale.
5. Which department do you mainly rely on in order to get your job done well?
Response
Percent
Response
Count
Admissions
30.8%
Sales
0.0%
Finance
0.0%
Academics
23.1%
Administration
38.5%
7.7%
Marketing
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Rationale: Mapping this reliance chart was fundamental as the researcher sought to highlight
which were the main departments that had most of the workload. Administration came first
followed by admissions. Both are clearly understaffed and lacking resource personnel.
Response
Percent
Response
Count
Yes
84.6%
11
No
15.4%
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Rationale: Eighty four percent of the staff believed that the students expected more and
drawing from the results of the next question (are agents to blame) where seventy seven
percent agreed it is apparent that much of the workload and pressure can be reduced by
training agents on certain information thereby equipping students with the knowledge pre
arrival. Reflecting on the customer gap problem the college needs to control exaggerated
claims made by the agents. Once measures are adopted to assure students are given the
correct information the service triangle principle of making a promise and delivering promise
can be met.
Cross referencing these results with Question seven of the student questionnaire (How do you
feel when you need to approach a staff member for a document or information?), we draw the
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link that staff feel that the students are asking for too much and hence naturally adopt a
negative attitude to questions which students perceive as a lack of customer care.
7. Do you find that students expect far more due to false hopes given by agents when they are overseas?
Response
Percent
Response
Count
Yes
76.9%
10
No
23.1%
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8. If you have worked at Cavendish for more than three intakes, has the work load increased?
Response
Percent
Response
Count
Yes
92.3%
12
No
7.7%
Rationale: To show management that although the staff numbers have remained the same,
the workload has increased. (See question 9)
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9. If you have answered YES to question 8, please indicate the reason you think best
explains the increase in work load
Main reason
Secondary
reason
Contributes to
workload
Not an issue
Rating
Average
Response
Count
Higher
number of
students
70.0% (7)
20.0% (2)
10.0% (1)
0.0% (0)
1.40
10
UKBA
regulations
getting
more
complex
50.0% (5)
30.0% (3)
0.0% (0)
20.0% (2)
1.90
10
Decrease
in the
quality of
students
12.5% (1)
37.5% (3)
25.0% (2)
25.0% (2)
2.63
Other
issues
22.2% (2)
11.1% (1)
33.3% (3)
33.3% (3)
2.78
Rationale: To build on the argument that the college is understaffed and therefore
overworked.
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1.
2.
students
3.
Overseas students
4.
The students
5.
Students
6.
7.
Students
8.
Students
Agents
9.
international students
10.
Students
Agents
Universities/ Awarding Bodies
11.
Students
12.
13.
Students
Agents
UKBA
Other stakeholders
Rationale: The focus of Paynes six market model described in the literature review is to
bring to attention that the notion of customer extends far beyond just the consumer. The
researcher sought to investigate who the staff believed were the customers and thereby lay a
foundation to introduce the idea that each department is a customer and that customers extend
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beyond the four walls to the stakeholders, the parents, the universities, the awarding bodies
and so on. This was done with a view of creating an atmosphere of customer centricity within
the departments and in effect create a stage gate process where each department treats the
other department as a customer and therefore documents passed between departments are
double checked in order to ensure customer satisfaction.
11. ADMISSIONS TEAM - Would you agree that your agents would respond better and send Cavendish
good quality students if you were encouraged to get to know them on a personal level? I.e. sending them
Cavendish seasons greetings cards, visiting their office etc...
Response
Percent
Response
Count
Yes
80.0%
No
0.0%
Not
certain
20.0%
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Rationale: To lay the foundation of relationship management between staff and agents and
encourage communication between the two. Secondly, trying to achieve the principles of the
service marketing triangle. I.e. enabling promises.
12. ADMISSIONS TEAM- Given a scenario of two colleges, College A and College B
College A employs a Relationship Manager between the college and the agent to keep
track of the agents concerns, student quality etc. College B relies on the admissions
officer to manage the agent and has very little concern of matters that do not concern
direct recruitment Which college would the agents prefer sending quality students to.
College A or B?
Response
Percent
Response
Count
College
A
80.0%
College
B
20.0%
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Rationale: In order to raise awareness for the necessity for a relationship manager mentioned
in the literature review. (See diagrammatic representation of relationship manager, agents and
Cavendish College on page 43)
Critical
Medium
Low
Rating
Average
Response
Count
Inter
departmental
reliance
23.1% (3)
53.8% (7)
23.1% (3)
2.00
13
Lack of
information
and
communication
76.9% (10)
23.1% (3)
0.0% (0)
1.23
13
Extreme multitasking
30.8% (4)
53.8% (7)
15.4% (2)
1.85
13
Rationale: To link to question 3 where (Davies and Hurti, 2008) pointed out that lack of
communication is a key factor is influencing low employee morale.
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Ethical framework
Ethics is the science of conduct. It considers the actions of human beings in connection
with their rightness or wrongness and their tendency to do good or evil. (Mackenzie, 2008).
Often we confuse ethics with the element of human emotion however if one observes
behavioural patterns of human beings, over centuries much of how we feel stems from social
and religious conditioning. Information obtained from the Santa Clara University indicates
that there are five sources of ethics. It is the researchers opinion that Cavendish College
adopts an ethical framework based on the five approaches.
1. The utilitarian approach- Which believes that ethical action is concerned with doing
more good and less harm.
2. The moral rights approach-Which believes that ethical action, must protect the moral
right of individuals. Morality being a relative issue is fairly difficult to gauge and
therefore what may be considered immoral in one culture may be acceptable by
another. Morality is also dependant on ones religious beliefs and the time period in
which we exist.
3. The fairness of justice approach - This approach considers all humans are treat
equally and in the event of unequal treatment such as remuneration etc then the action
should be defensible against set standards. Cavendish College must consider all
internal customers or employees as equals and not allow favouritism and extra
benefits to certain members. In addition, agents must only be allowed marketing
benefits based on their necessity and potential and not on their relations with the
admissions officer.
4. The common good approach This is based on the idea that life in itself is good.
Fostering relationships and building networks in society with a view to advance is the
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Chapter IV
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Manager
Manager sells
makes
decision
decision and
announces it
Manager
presents
ideas and
invites
questions
Manager
presents
tentative
decisions
subject to
change
Manager
Manager
Manager
presents defines limits allows
problems,
and asks subordinates
gets
group to
to make
suggestions
make
decisions
and makes
decisions within limits
decisions
set by
supervisor
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Once the management has incorporated the culture of responsible decision making they can
focus on the two elements that contribute toward the service marketing triangle.
1. Making promises
2. Delivering promises
The author has therefore divided the implementation of the business strategy into two main
areas:
1. What we deliver i.e. Academics, Student services and Agent services
2. What we say we deliver i.e. Marketing and publicity.
What Cavendish
actually delivers
-Academics
-Students services
Business strategy
-Services provided to
agents
90 | P a g e
2.2
The appointed person will also actively seek employment ads and classifieds
and post the information on the employment section on the college website as
well as establish links with managers of local restaurants, pubs in order to give
the students a wider choice. Recommendations will be at the discretion of the
college and be based on an assessment of the students capability to work in
that job profile. This information will also be made available to student pre
arrival
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accommodation. This is to ensure that they make allowances for the expenses in their
budget.
4. Student activities- A student activity organizer must be appointed to plan and
coordinate activities such as inter collegiate sports matches, parties, games night,
quizzes etc in order to make student life exciting. There are numerous student clubs
and bars organizing such events. The profile of the appointed person will have to
include actively looking for events held in and out of London and organizing trips /
extracurricular events on a regular basis. A special link on the site as well as notice
board will be dedicated to this service.
Agents services- The author recommends a point based system from 1 10 covering the
following aspects of recruitment.
1. Academic information (1 point)
2. Employment information (1 point)
3. Accommodation information (1 point)
4. VISAS and immigration information (2 points)
5. Extra curricula information ( 1 point)
6. Basic travel information and general information on living in London ( 1 point)
7. Reliability in recruiting students who have an intention to study (historically) (3
points)
This point system will factor into the colleges decision to provide additional marketing
benefits, forward enquiries and recommend improved benefits and prizes to those who meet
them.
Services provided to agents must include as follows
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1. Tracking service- Each agent must be appointed one admissions officer who is
responsible for preparing letters, offers etc. A standard of seven working days must be
assigned to students who meet all entry criteria. For those students who do not meet
the specified recruitment specifications mentioned on the website, it will take upto
fourteen working days for a turnaround. The agent must be explained the admissions
process as the figure below depicts. In this way the agent can track the progress of his
offer letter.
Admissions officer
Admissions officer
For an acceptance
for students
meeting all
admission criteria
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Agents will not be encouraged to write to other members of staff or come into the
college to pressurize the college for a quick response regardless of their relationship
with the admissions officer. The college will follow this strict protocol in order to
ensure fair treatment towards all agents.
2. Commission and payment structure As mentioned in the contract the agent will be
paid his commission within ten working days of the student paying the course fee.
Students who do not pay their course fee in full before admission will have an
implication on the agents commission being delayed. The college will only pay a
percentage of what has been received and the finance department will be allowed
fourteen working days to effect this transfer. Agents must speak directly to the
recruitment officer who will in turn manage the transfer with the finance department.
3. Agents will be given free promotional material and as decided by the marketing
manager technical equipment in order to broadcast videos etc of the college within
their premises. This is at the discretion solely of the marketing manager and not the
admissions officer liaising with the agent in order to avoid personal judgement and
future problems between the two in future.
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1.4 Career seminars will be held in Government and private colleges in India by
Cavendish College
1.5 Publicity material must be kept in student frequented places such as coffee shops,
bars, restaurants etc...
2. New market entry in order to recruit more European students and maintain the
balance of a culturally diverse community Cavendish College will venture into
markets such as Romania, Poland, Italy and Bulgaria as these markets reflect high
potential based on research carried out through participation in education fairs. A
budget will be created and maintained for agent expansion activity in the European
market.
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Anchor change
Build on change
Empower Action
Communicate the vision
Develop a vision
Create a guiding coalition
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ii.
iii.
2. Create a guiding coalition Identify employee and invite them into personal
meetings with the director on a one to one basis and explain the idea of responsibility
to each other and the importance of teamwork. Management will need to encourage
team building exercises such as dinners, staff lunch etc... At this point management
also needs to listen to the employees and improve conditions based on the feedback
provided through the questionnaire.
Changes needed to be adopted by management
1. Improved working conditions
2. New administration staff at reception (Full time). Any rotation must be informed to
other administration staff prior to changes.
3. New academic staff to handle the workload currently dealt with by Meranda and
Lale'.
4. Agents training must commence immediately in order to filter bogus students.
5. Induction days must cover all matters from job hunting to bank accounts.
6. Office timings must be strictly adhered to by staff, management and students.
7. Office timings must be advertised on the SharePoint.
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6. Short term wins-Management will identify sure shot targets such as preparation of
letters stag gate system and after several weeks will congratulate staff on their
competency on this matter. Through social recognition of staff effort motivation and
moral will rise.
7. Build on change - Adopt the kaizen approach of continuous change and consider
opinions from bottom up. Staff meetings will take place once a month through formal
or informal basis and ideas and feedback must be considered. For example: the
current letter posting system costs the college money through post charges as well as
bears a high level of uncertainty of delivery. This costs the students valuable time if
they are applying for council tax, jobs or bank letters. Letters should be prepared and
handed out at reception once again and the minimum waiting period is one week.
Letter pick up can only take place between the hours of 9 and 11am or between 4 and
6pm. Requests can be made all through the day.
8. Anchor change through recognition of employees who suggested the ideas and
incorporated the process. Eliminate change barriers. Talk about the benefits of the
new system and constantly encourage the employees to give feedback and ideas.
100 | P a g e
Students
Request
Documents
after reading
procedure
on
requirement
on the
request form
Administration
staff check for
errors in the
application
form and
documents
attached as
well as system
requirements if
time permits
Preparation
of
documents
Administration
staff checks the
system and the
students file for
attendance, fees
paid and other
inconsistencies
and then delivers
letters to
management for
signature
Management
checks for
irregularities
and signs
document
Application stage
Application Gate
Admission Stage
Students
Apply for
admission to
agent
The agent
screens initial
application based
on training we
have provided
him
The admissions
He passes documents The college mails
officer in London after carefully reviewing the offer to the
reviews
it to the academics
student.
documents of
office. Once they are
conditional offer satisfied they proceed
with preparing the
conditional offer and
then hands it to the
directors for signature.
Admission Gate
Offer stage
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already created the Cavendish College group and observed members behaviour, monitored
their comments and gained vital feedback into the importance of informal communication.
Topics range from exam results, to football matches to students academic concerns. Some
internal college staff uses the platform to contact students and give them last minute updates.
The researcher recommends that the Cavendish takes advantage of the website and formally
introduces a page with a link to Facebook on the college website. The group will have three
administrations on the payroll of Cavendish who will maintain the site, update images and
videos and provide students with academic admissions and other information and treat it like
they would a formal enquiry on the college system. The chat function allows you to interact
with the students and answer any of his questions.
Competitions and events: the group administrators will organize virtual competitions i.e.
photography, film making where other students vote through the like feature and the one
that gets the most likes wins and is recognized socially on the site as well as given a real
prize. All planned events should also be uploaded on the site. Events should be organized at
least once a month in order to ensure a community feeling and allow the members to keep
logging on to see their pictures and comment thereby creating an interest in the college.
How the information spreads: Every members activity appears in a newsfeed on a
common home page which is visible to friends of that member. This includes pictures if he
has uploaded and videos. This recent activity attracts interest from friends to click on his
images and they are then drawn into the Cavendish Facebook experience. Essentially much of
it can be done for free only through networking.
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4.8 Conclusion
The main conclusion drawn from this research is the relationship that customer relationship
management has with sales. As we are all a part of a giant circuit every action from one part
has a counter effect on the other. Human beings are very complex creatures and at the core of
our complexity lyes the element of emotions. Emotions which drive us to make decisions on
a wide range of subjects from what we buy to whom we marry and what we do with the most
limited resource available to us, time!
To understand the importance of value from the relative and absolute perspective and to be
able to create a management system around people is one of the foundations of creating a
business with delighted customers. The research has also drawn upon the vast network of
customers, internal and external who play an important role in the fabric of business
sustainability.
We must recognize the fact that the world is truly getting smaller with the internet and social
online networking tools and that interactive marketing is the next step in reaching new
markets. Websites such as Facebook cannot be ignored and must be used not simply as a
marketing tool but also as a relationship management portal. The postmodernism philosophy
of objective truth and global cultural narrative makes its presence felt through rapidly
changing cultural and social beliefs and perceptions on what to expect from goods and
services.
The researcher also found several weaknesses in the current management system due to the
lack of relationship management strategies which resulted in low staff morale and a high
percentage of unhappy students. He suggested new models of management and marketing
strategies to be introduced into the current management structure.
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Bibliography
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Philippe
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Mc-Graw Hill
Virgin
Mc-Graw Hill
Cambridge
Pearson education
Palgrave-Macmillan
Oxford University Press
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Rowman and Littlefield
Prentice-Hall
106 | P a g e
Mackenzie J. S.
Mackie Gerry,
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Mc-Graw Hill
CRC Press
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Wood and Wood
Yagill Dana
Yergin Daneil,
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Zeithaml, Bitner,
Gremler
2008
Har-Anand
Oxford University press
IMF Publications
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Financial times/PrenticeHall
Atlantic
Palgrave Macmillan
Springer-Verlag
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Methuen & Co., Ltd
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University of Chicago
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107 | P a g e
Journals
Adler, N.J., Graham, J.L
1989
1998
1996
Borden Neil
Brett Martin
1964
1999
Conway, A.
1996
1995
1987
Gunnar Stefansson
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Monarch Ron
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2008
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Main Websites
BBC
Nick Mackie
CIA
Statistics
Guardian
Donald MacLeod
International rescue
Santa Clara
University
UKBA
>http://news.bbc.co.uk/1/hi/ed
ucation/4219026.stm< 7
September 2005 Visited 17th
May 2010
>https://www.cia.gov/library/
publications/the-worldfactbook/< visited: multiple
Tuesday 18 April, 2006
>http://www.guardian.co.uk/e
ducation/2006/apr/18/
highereducation.internationals
tudents<
visited (12th January 2010)
>http://www.scu.edu/ethics/pr
acticing/decision/framework.h
tml<visited 14th May 2010
Tuesday 18 April 2006
>http://www.ukba.homeoffice
.gov.uk/employers/points/spon
soringmigrants/registerofspon
sors/<
visited (12th January 2010)
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Appendix
110 | P a g e
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
concerning attendance
Up-to-date, signed contracts of employment for senior, academic and nonacademic staff
Valid, displayed Employers Liability Insurance certificate
Completed student application forms
20.
Course descriptions
21.
22.
23.
24.
25.
26.
111 | P a g e
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
feedback questionnaires
Summaries of results/grades awarded for
43.
44.
45.
46.
programme (or from start date, if the course has not been available for that
time)
Copies of annual reports to the awarding
47.
bodies for the previous three years for each academic programme (or from
start date, if the course has not been available for that time)
112 | P a g e
48.
49.
50.
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