HBS: Diamonds in the Data Mine
HBS: Harrah’s Entertainment, Inc.
Mediocre scores on companies ought to be rapidly outcome because the bottom line is being a profitable firm wherein its profits have a sustainable growth over time. This will be possible in so far that managers design competitive strategies to capitalize customers’ satisfaction. For such, managers should structure also appropriate tactic plans, which are short action plans in order to achieve these strategies and setting goals. In the like fashion, this set of strategies should always meet both parts: customers and companies, which means, “giving and getting.” Of course, there are several strategies to apply in an organization, but these should be carefully assessed in agreement to company’s prioritizations and requirements. One of them and without doubt the most important, is related to database (physical strategy), which store very important evidences from different sources. Furthermore, another strategy above all is related to human resources (human strategy) in particular employees.
Indeed, a company through its manager should implement strategies justly based on database, which allow developing quantitative models to predict key issues for a greater customer satisfaction. For this, the firm should invest in the development of the intellectual and technological capabilities as for storing the data as also for processing, analyzing, and outlining strategies. These may be focused on geographic diversification to introduce company’s brand and customer loyalty through reward programs for instance. A company’s manager in turn should always monitor and enhance the outlined strategies. With this in mind, database and an effective marketing program become for organizations in a meaningful analytical tool. The Harrah’s Entertainment Company has used this tool, such as points out Gary Loveman (2003) in his article “Diamonds in the Data Mine.” Its database have become in a very rich repository of customer information because store valuable information in terms of names, addresses, age, gender, among other customer preferences. Consequently, the company designed a strategy by doing visible the differentiation in customer services, which permitted to Harah Company to have greater advantages from its competitors.
Regarding the human strategy, a primary activity of managers is to pay attention to their employees because they are the mainstay of any organization. So that, the key point is to have the best workers, who, first should be rigorously selected by their meritocracy. Then, they should receive a systematic training in order to have for the organization trained and skilled workers. For example, according to Thomas Delong and Vinetta Vijayaraghavan (2003) in their article “Harah’s Entertainment, Inc.: Rewarding our people,” bonus plan for workers by improving customer-satisfaction scores were implemented. This has been done to persuade customers. This plan has been based on reward employees for customer service metrics by giving selective treatment to customers through employees’ speed plus friendliness. Thus, having a sustainable and competitive advantage by employing human capital duly engaged and motivated as well as by using technological systems to get to know better to customers is profitably workable to reach the entrepreneurial goals.