Romanian Distribution Committe Magazine Volume 4 Issue 2

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Theodor Valentin PURCĂREA Editorial: The Capital City of Romania, Bucharest, a Proper Place for Sharing Ideas on Competition Policy and Creating Shared Value within the Strong Commitment of Promoting the Competition Culture

James ROWELL Omni-Channel Retailing

Victor GREU The Exponential Development of the Information and Communications Technologies – A Complex Process Which is Generating Progress Knowledge from People to People

George Cosmin TĂNASE Implementing and Adapting Services Marketing to the Company’s Structure, Systems and Culture

Nicolaie MIHAIESCU Still I Can Repair My Plane …

Mihaela-Silvia MARINESCU A Challenging Contest in a Time when the United States of America Celebrated Its Significant Legacy

Léon F. WEGNEZ (by courtesy of) A Short Presentation of the Latest Issue of “Distribution d’Aujourd’hui,” March-April-May 2013, Brussels

Florian POPA (by courtesy of ) Thinking and Acting for SANABUNA 2013, “Journal of Medicine and Life,” Volume 6, Issue 2, April-June 2013, Bucharest

The responsibility for the content of the scientific and the authenticity of the published materials and opinions expressed rests with the author.

Editorial:

The Capital City of Romania, Bucharest, a proper place for sharing ideas on competition policy and creating shared value within the strong commitment of promoting the competition culture

Looking at being really driven by consumer demand of being reassured of having made the right choice related to a brand (while the brand is delivering on the brand promise and is helping its customers to achieve their own goals, by guiding them to the right decisions), we took a fresh look at attendance at two recent events filled with great ideas, one on May 23 and 24, 2013 (The Romanian National Students Studying Economics and Business Competition, Section Marketing – ONEF 2013, organized by the Association of the Faculties of Economic Sciences, AFER in cooperation with the University of Oradea: http://www. crd-aida.ro/2013/05/the-awarding-ceremony-of-theprizes-of-onef-2013-section-marketing/), and one on May 30 and 31, 2013 (The “2012 Annual Activity Report” of the Romanian Competition Council, and the Meeting of the European Competition Authorities, ECA, from the European Union and EFTA: http:// holisticmarketingmanagement.ro/the-2012-annualactivity-report-of-the-romanian-competition-council-and-the-meeting-of-the-european-competitionauthorities-eca-from-the-european-union-and-efta/).

It is well-known that the attendance at an event filled with great ideas (as the experiential center of the organizing Institution brand), is reflecting both the ability of the organizing Institution not to lose touch with the relevant marketplaces, and to offer an adequate type of “content” (as the result of careful planning, strategizing and execution) to the “community” it has while advocating and consider-

ing every customer interaction with the institutional brand. There is no doubt of the importance of being awesome where the organizing Institution is at a certain moment in time, and managing adequately the existing communication channels before and after, and also looking at the new ones (not forgetting about the online connected consumer and building and strengthening relationships with the new consumer whose experience is required in the organizing Institution), by using data and analysis to deliver real-time messaging, and taking the lead in the new social era, caring about every situation met, acting in a responsible manner, and also being responsive to the criticism (and correcting it, if it is the case).

Léon F. Wegnez and Theodor Valentin Purcărea

The National Students Studying Economics and Business Competition, Section Marketing – ONEF 2013, took place at the University of Oradea. At the Opening Ceremony of the ONEF 2013, Section: Marketing, the Honorary President, Theodor Valentin Purcărea, gave a speech on: “The Brand Ion Gh. Roşca, a proactive marketer”, highlighting the Lesson given by Professor Ion Gh. Roşca - the Promoter and the Founder of AFER - concerning the academic progress, a real lesson on marketing innovation. Professor Ion Gh. Roşca was constantly trying to build the right road map to sustainable academic growth, while basing the AFER’s strategic goals on both internal and external knowledge, insight and indepth analysis, on a full understanding of the specific market and the student’s needs. He proved to be a real cultural architect whose influence considerably impacted the conversational culture at the level of the Faculties of Economic Sciences in Romania, keeping all of them well-informed, student-focused in the process of creating value for the student, educating him, communicating with, motivating him about the AFER Members’ services, and best promoting AFER features and benefits which the academic services provide to AFER student. Professor Ion Gh. Roşca constantly pledged for both, on one hand, the right interaction with AFER Members, and with prospects and students, and on the other hand, to responsibly and accountably teaching students to adequately apply what they have learned in their marketing courses in approaching the competitive job market and ob-

taining not only their first job, but also increased financial gains, and greater overall job satisfaction.

No wonder that all the participants at ONEF 2013, Section: Marketing proved to be at the level of the founder’s proactive marketing vision, making very difficult for the Jury to finally decide the Winners. But the Olympic spirit, as a special attitude, prevailed, by inspiring participants believing in their abilities to improve, considering that the most important thing is the struggle, and that the essential thing is to have fought well. All the participants were impressed by the quality of the organization, the team spirit and collegial atmosphere confirming that excellence in leadership means that people have confidence in themselves.

Paraphrasing Mark Twain, we can say that all the participants at ONEF 2013 Section: Marketing felt well, by giving themselves their own approval to feel comfortable. It is also worth to mention that, for the participants at ONEF 2013, Section: Marketing, the Faculty of Economic Sciences of the University of Oradea organized - in partnership with The Leadership Institute USA and The Leadership Institute Romania - a Training Module on “Transformational Leadership.

The Science of Success” ensured by Miguel Angel Moreno, Director of International and Government Programs at The Leadership Institute USA. The Awarding Ceremony of the Prizes of the National Students Studying Economics and Business Competition, Section: Marketing – ONEF

2013, took place Friday, May 24, in Aula Magna of the University of Oradea. The prizes were awarded

by Professors Nicolae Istudor – Executive President of the Association of the Faculties of Economic Sciences, AFER (Vice Rector of the Bucharest University of Economic Studies - ASE, and Honorary Member of SSMAR), Adriana Giurgiu - Dean of the Faculty of Economic Sciences of the University of Oradea (Chairperson of the International Conference “European Integration – New Challenges”, 9th edition of EINCO), and Theodor Valentin Purcărea – Honorary President of the ONEF 2013, Section: Marketing (President of the Romanian Distribution Committee, Professor at the Romanian-American University, and President of the Executive College of SSMAR). The Members of the Presidium were Professors: Constantin Roşca, Executive Director of AFER (and President of SSMAR), Theodor Valentin Purcărea – Honorary President of the ONEF 2013, Section: Marketing, and President of the Jury, Gheorghe Zaman, Corresponding Member of the Romanian Academy, President of AGER, and Director of the Institute of National Economy, Romanian Academy (Member of the Board and Chairman of the Group of Experts of the Romanian Distribution Committee: http://www. crd-aida.ro/our-team/gheorghe-zaman/ ), Adriana Giurgiu, Dean of the Faculty of Economic Sciences of the University of Oradea, Constantin Bungău, Rector of the University of Oradea (Who gave the Welcome speech), Nicolae Istudor, Executive President of AFER, Valentina Vasile, Deputy-Director of the Institute of National Economy, Romanian Academy, Mihai Berinde, Director of the Center for Competitiveness and Sustainable Development of the University of Oradea, Maria-Madela Abrudan, Vice-Dean of the Faculty of Economic Sciences of the University of Oradea and Coordinator of the ONEF 2013, Section: Marketing, Dorin-Cristian Coita, Director of the Department of Management-Marketing of the Faculty of Economic Science of the University of Oradea, and President of the Organizing Committee of the ONEF 2013, Section: Marketing.

Competition Council, and the Meeting of the European Competition Authorities, ECA, from the European Union and EFTA – allow us to note that as a special kind of „path dependence” process, there is no doubt that „competition policy history” matters.

And, on May 30, 2013, the Capital City of Romania, Bucharest, provided the right framework for continuing on the right path , and on building on delivering for consumers. The responsible discussions within the context of the Conference “Accomplishments and perspectives regarding competition on the Romanian market” confirmed the importance of pathdependent features of the competition policy ranging from superior standards and procedures applied by the European competition authorities to the patterns of facilitating effective international cooperation to the benefit of good work of the mentioned authorities in applying rules in the same way across the EU in order to make sure businesses and companies compete fairly with each other, and create a wider choice for consumers and help reduce prices and improve quality.

The Romanian Competition Council launched on May 30, 2013, the “2012 Annual Activity Report” within the context of the Conference “Accomplishments and perspectives regarding competition on the Romanian market” (including two round tables on “Pro-competitive legislation for a predictable business environment”, and “Monitoring competition in Romanian food retailing sector”). The Romanian Competition Council also hosted on May 30-31, 2013, at Bucharest Intercontinental Hotel, the meeting of the European Competition Authorities (ECA) from the European Union and EFTA, with the participation of Mr. Alexander Italianer, Director General of DG Competition, European Commission.

The Prime Minister of Romania, Victor Ponta, participated at the opening of the event of the presentation of “2012 Annual Activity Report” of the Romanian Competition Council. On this occasion, Prime Minister Victor Ponta pointed out that: “… we should have an independent, professional Competition Council and which, with patience, consistency, Regarding the other significant event – The should educate all society partners on the importance “2012 Annual Activity Report” of the Romanian

of observing the competition rules because a country where there is truly competition, it is a country that can remain competitive… I am very much glad that the idea of transparency and professionalism of the Competition Council in Romania get strengthened and the direction is the good one… I do not see in the Competition Council just that tough arbiter who sanctions us, but I see a partner… I want to congratulate the Competition Council for the last year’s activity, and I want to rejoice that this European meeting takes place in Bucharest, in fact, here, in Bucharest, many things are happening… we are good hosts as this year, there will come, the Presidents, leaders of all international financial institutions: IMF, World Bank, EBRD, EIB. The fact that Romania has economic growth and if I look in the area, surely a stable Government, without fair competition and economic development, all this stability will prove to be short – lived, and I want to further have in the Competition Council an arbiter and a partner…” (http://www. gov.ro/pm-victor-ponta-i-wantus-to-further-have-in-the-competition-council-both-an-arbiterand-a-partner__l2a120126.html ).

At this special event, outstanding figures within the European competition area participated: Mr. Alexander Italianer, Director General, DG Competition, European Commission; Mr. Bruno Lasserre, President of the French Competition Authority; Mr. Alberto Heimler, Chairman of the Working Group on Competition and Regulation within the

European OECD (an old good and valuable friend of the Romanian Competition Council) and Mr. Paul Csiszar, Director of Industry and Agriculture Directorate, DG Competition, European Commission. The event was also attended by representatives of Parliament, Government Institutions, the Judiciary, the Business Environment, Civil Society, and of course of the Consultative Council of the Romanian Competition Council.

Mr. Alexander Italianer, Director General, DG Competition, European Commission, underlined, during his intervention, the very strong record of the Romanian Competition Council, an independent and transparent authority, and an extremely active authority in enforcing the competition law and also at the level of European Competition Network.

He also highlighted the importance of Advocacy as Prime Minister Victor Ponta said, and of focusing on the right priorities, the main challenges underlined

by Mr. Bogdan M. Chiritoiu, the President of the Romanian Competition Council. Mr. Alexander Italianer also referred to the current discussions (the Competitiveness Council meeting from May 29 and May 30, 2013 focused on a range of measures aimed at supporting and accelerating economic recovery and at translating results into more growth and new jobs; “smart regulation”) at the level of Competitiveness Council about the political agreement on two regulations pushing forward the reform of the state aid rules.

Beyond the emphasis made ​​by the Director General of DG Competition, allow us to add that the “2012 Annual Activity Report” of the Romanian Competition Council reconfirmed the accumulated experience, improving the methodology for analysis, and the impact of the promotion of the competition culture on the relevant markets to which we referred on November 2, last year (see Romanian Competition Council Report „The Romanian competition environment – developments in key sectors”, November 2, 2012•News (http:// holisticmarketingmanagement. ro/romanian-competition-council-report-the-romanian-competition-environment-developments-in-key-sectors/). Let us remember that on the mentioned November occasion, we also attracted attention to some ideas expressed recently by Richard Possner who recommended a fruitful application of Darwinian theory to competitive markets, taking into account that: “to determine whether a market is working well from an overall social standpoint, one has to understand the environment, and the business behavior that best enables a firm to survive and thrive in it.”

It is also worth to note that there is a clear evidence of the proper strategy of the Romanian Competition Council to improve the enforceability of its decisions.

The presence, for instance, of the distinguished representatives of the Judiciary (including from the Superior Council of Magistracy, the guarantor of the independence

of the judiciary system) both, at this event from May 30, and at the meeting of the Consultative Council of the Romanian Competition Council from May 28, 2013, confirms the correct understanding of the reality that competition policy results from the interplay between the Romanian Competition Council and the Judiciary, this interaction with the Judiciary (whether in the investigative phase, during the decision making process or after the Romanian Competition Council decision was made) being most effective when all judicial procedures are followed, and the reasoning of authority’s decision is based on clear and sound legal and economic analyses. It had clearly been a salutary effort of our Competition Authority to bring judges closer to the technical analysis made by the Romanian Competition Council. There is no doubt that the closer the interaction between the Romanian Competition Council and our Judicial System (by developing an improved level of mutual understanding in order to better improve the effectiveness of competition policy as a whole), the higher the number of opportunities for the Romanian Competition Council to explain or defend its decisions. Taking into account that the interventions by the Judiciary follow the binding decisions of the Romanian Competition Council, it is essential to carry out a continuous work of harmonizing the views of the Romanian Competition Council and of the judges with regard to the interpretation of the competition rules, to the standard of proof applied to competition cases, to conduct cases and fines, and the last but not least to procedural shortcomings.

Two days before the launching by the Romanian Competition Council of the “2012 Annual Activity Report”, the meeting of the Consultative Council of the Romanian Competition Council took place, on May 28, 2013, an already traditional opportunity to share ideas on competition policy and to receive feedback on these ideas and policy visions within the strong commitment of promoting the competition culture in full process of the effective implementation of the competition policy. As usual at this level, a pragmatic exchange of views was carried out between, on one hand, the President of the Romanian Competition Council, Bogdan M. Chiritoiu and the others members of the Board - Otilian B. Neagoe, Valentin V. Mircea, Dan N. Ionescu, Bujor-Bogdan Teodoriu, Lazlo Gyerko - and on the other hand, Adriana Almaşan, Florin Pogonaru, Theodor Valentin Purcarea, Gabriela Ţigu, Jonathan Scheele, Steven van Groningen, Viorel Munteanu, Anca Harasim, Natalia Roman. The technical Secretariat organizing the works of the Consultative Council was ensured by Simona Barbu and George Anglitoiu.

Advocacy and Competition Policy, Report prepared by the Advocacy Working Group, International Competition Network, ICN’s Conference, Naples, Italy 2002 Theodor Valentin Purcărea during his speech in the opening of the Competition Forum OECD, UNCTAD, KFTC, Seoul, December 2002

Let us finally conclude that today’s events filled with great ideas are blessings given to us to learn from, and a better understanding that each of us can contribute somehow to these kind of events while building a better way in the continuous journey of identifying the market that is working well from an overall social standpoint.

Theodor Valentin Purcărea

Editor - in - Chief

Omni-Channel Retailing

By James Rowell james.rowell@buckingham.ac.uk

Abstract Since the advent of the internet, shopping has been a key component in its commercial use and usefulness. Products and services such as books, clothing, household goods, theatre/cinema tickets and holidays were some of the original offerings. Over time the range of products and services available has been extended significantly. However in the last few years it is not the product set that is the area of dynamism, but the ways in which retailers and shoppers are using the internet to purchase goods and services. The most recent expression of this is “Omni-Channel Retailing� as coined by the John Lewis Partnership (JLP) in the UK. Key words: Internet Shopping, Multi-Channels, Customer Benefits and Loyalty JEL Classification: L81, L86, M31 This discussion paper explores the different channels which retailers are implementing to remain competitive in their respective markets. The paper outlines the different channels for ordering, processing and delivery, and then uses key examples from an international basis to show how different organisations are attempting to remain ahead of their competitors.

Firstly the possible channels to market using the internet as a key component of the infrastructure are described.

Model

Pre-transaction

Transaction

Post-Transaction Processing

Destination

Delivery mechanism

1

Browse internet

Order

Pick from warehouse

Deliver direct to home

Courier / Postal service/ Retailer

2

Browse internet / Retail Store

Order

Pick in store

Deliver direct to home/ office/ workplace

Courier / Postal service/ Retailer

3

Browse internet

Order

Pick in store

Collect at Retail Store

Shopper

4

Browse internet

Order

Pick from warehouse

Collect from “Click and Collect” store

Shopper

5

Browse internet

Order

Pick from warehouse

Collect from local store / Convenient location

Shopper

6

Browse in Store Order in Store / Shopper mobile phone

Pick from warehouse

Deliver direct to home

Courier / Postal service/ Retailer

7

Browse in Public Space

Pick from Deliver direct to warehouse or in home store

Courier / Postal service/ Retailer

Order in Public Space – mobile phone

Figure 1: Different internet shopping and delivery models The first well-known, and still existing internet retailer is Amazon; famous originally for selling books direct to consumers. Since its inception, it has developed the range to include almost any product that consumers which to purchase. This is now includes having other companies (partners or concessions) with their own products, promoted on the Amazon website. Their model was and is still, to pick from warehouse and deliver direct (Model 1). The original advantage, in selling books in this way, is that they could promote and provide one copy of any book independent of the customer’s location; in contrast to the customer’s “local” bookshop. This meant they could supply to the demand, across the whole country, with relatively little stock of a very wide range of book titles.

At the turn of the 21st century grocery retailers also started to realise the possibilities for selling their products via the internet. Companies chose, broadly, one of two approaches – pick from a warehouse (Model 1) or pick from the retailer store (Model 2). Using either of these methods involved the retailer becoming once again responsible for the final delivery; using either method grocery retailers provided their own vehicles to carry out the delivery.

Why two choices?

The obvious advantage to choosing Model 2 is the significantly reduced capital investment involved in the picking stage – there is no need to construct a specialised warehouse/picking centre to support the new style of shopping. Of course at the time those original decisions were being made no one was certain if consumers wanted to shop for groceries online, in the numbers to make the facility a financially viable proposition. The additional delivery cost was either borne by the customer (e.g. £5 per delivery) or was absorbed by the retailer if the purchase order was above a certain level (e.g. £50). On the other hand, assuming the demand was great enough, then Model 1, similar to that used

by Amazon, would become viable, and probably more effective for the retailer and the shopper. This was attempted in the grocery sector by Webvan, in the US, starting 1999 but dramatically retreating from the market in 2001 (http://www.venturenavigator.co.uk/content/153). In the UK, Ocado starting in 2002 in the grocery sector, followed Model 1 (ocadogroup.com). However, sceptics still point to the fact that the company, even though supported by its major customer (Waitrose) has yet to publish a profit in its annual report.

Pressure for Change

‘attached’ format) to enable a similar operation, rather than the ’solo’ format. To some extent this These models have persisted and are still in op- is not so different from the philosophical idea of choosing pick in store versus pick from a central eration in many markets.

However, with consumer and technology so- warehouse (Model 2 vs. Model 1). It must also phistication the models for internet shopping are be recognised that in the UK Tesco has “over changing at an increasing pace. Other drivers 2000 stores nationally” (tesco.com) and therefor these changes include the demise of some fore already has significant geographic covertraditional retailing sectors (e.g. recorded music age, reducing the need to use the new model as – now sold predominantly via the internet) and a means of territorial expansion. similarly the popularity of purchasing online, e.g. In both these scenarios the retailer is assuming electronics, computing and photographic equip- a proposition of significant or bulk purchases of ment. These have alerted other retailers to the grocery goods in each transaction by the cusneed to change / develop their proposition in the tomer to ensure financial viability. Even so, the retailer immediately benefits as the cost of delivretail sector. ery is once again returned to the customer.

An example from further afield, Tesco, branded The New Dynamics of as Homeplus in South Korea, offers its customInternet Shopping ers the facility to shop online at a ‘virtual store’ on the subway station platform whilst waiting for Even though internet shopping is perceived as their train (Model 7). Areas of the station carry a universal proposition, the details of what to do images (like and Advertisement billboard) with and how to, have been different in different coun- QR codes which can be read through the shoppers smart-phone. In ‘ideal’ circumstances the tries.

For example in France the use of delivery to a delivery of groceries is “right after you get home” customer’s office/workplace, a variant of Model This has proved to be successful for Tesco 2, has been much more prevalent than in the Homeplus, it has become the Number 1 online UK. Similarly in France the method of “Click and grocery store in South Korea. (http://www.youtube.

Collect” for grocery products has developed and com/watch?v=nJVoYsBym88). advanced more rapidly too. This has led to the development of Model 4 – click and collect either Omni-Channel Retailing from an original supermarket store (‘attached’), or more recently collect from a “Click and Col- The fact that customers may purchase groceries lect” store, dubbed - ‘solo’. from their preferred retailer in different ways is In France, “Click and Collect” stores have been being exploited by many grocery retailers. Many developed by retailers such as Leclerc Group have a range of store formats – small (local) con– 169 new outlets (mostly ‘solo’); and Auchan venience stores with limited product range and Group who have opened 85 under two brand higher prices, supermarkets with a wide range of names, all of which are ‘solo’ (a warehouse with grocery goods + some non-food items (clothing, collection point) (Colla and Lapoule, 2012). At these electrical goods) and larger stores/hypermarkets are newly constructed outlets, the customer sim- (very wide range of food and non-food items), in ply drives up and has the goods placed into the addition to their internet channel. car trunk or boot by the retail assistant and drives However, multi-channel is often seen as a nonaway. Therefore the customer doesn’t normally integrated means of access to customers, they get out of the car, and does not see the inside simply choose a channel that is most convenient of the ‘store‘. For the retailer, this is obviously a at the time of and purpose for purchase. Now more cost-effective form of outlet than the ‘tradi- many more retailers are recognising the possitional’ supermarket/ hypermarket model. An ad- bility and benefits from using the multi-channels ditional benefit for the retailer is the lower cost for in an integrated manner. This is why one major geographic expansion. retailer in the UK, John Lewis Partnership, has In the UK companies such as Tesco, have devel- coined the title ‘Omni-Channel Retailing’. oped a form of “Click and Collect” by adding ad- John Lewis Partnership (JLP) is a partnership ditional facilities (on the outside of the store – the organisation, theoretically owned by its employ-

ees (known as partners), and operates a chain of Department stores (Clothing, Furniture, Household goods, Electricals etc.) under the John Lewis name; and closely associated with this, its sister organisation – Waitrose, a premium-priced grocery chain.

To support their online grocery retailing they originally adopted Model 2, using the facilities and expertise of Ocado (in whom they have a financial holding). In the last year they have instituted a number of other internet retail models – 3,5,6,7.

For some time now, JLP has implemented ‘click and collect’ from store (Model 3). Even more recently to support a Model 5 operation they have introduced delivery to a local store (JLP or an even more local Waitrose store) dependent on the location of the customer. Further to this, they have also negotiated delivery to other stores (local to the customer) not owned by the partnership, to provide a wider geographic coverage.

Consumer Response According to Andy Layton, Director of Multichannel Operations at the John Lewis Partnership the effect of implementing what is now known as ‘Omni-Channel Retailing’ has been tremendously successful for the organisation. Shoppers can now shop in-store, shop online, and then either collect at the store, have goods delivered direct to home, or collect from one of the many outlets (including JLP, Waitrose and other tie-in outlets); whichever is most convenient for the shopper.

This appears to be simply a successful implementation of multi-channel. However, statistics collected by the company show how shoppers’ behaviour has been changing: 29% research in-store then shop in-store; 63% research in-store then order online. But what JLP has noticed is that shoppers buying on-line also return to the store to shop, meaning that the process of on-line shopping is driving additional purchasing in the store itself.

Further to this, shoppers are encouraged whilst in the store to order online, either at a JLP terminal or through their own smart-phone or tablet connected through free in-store Wi-Fi. The benefit seems to be that the familiarity of purchasing online is developed and encouraged with their customers. As Andy Layton states, “This increases footfall into stores” generating even more loyal, customers.

Dynamic and Competitive Environment Earlier this year Ocado announced a licensing deal with UK-based supermarket chain Morrisons in the UK. “London, May 17 2013: Ocado has today announced a licensing partnership with Morrisons. This licensing agreement allows Morrisons to access Ocado’s technology, software and expertise to support the creation of its own online grocery shopping service” (ocadogroup.com/media, 2013).

More recent reports in the UK business press highlight this competitive issue even further – Amazon are looking to Ocado in the UK, for its skills and expertise in online grocery retailing, to create its own grocery retail business unit (Daily Telegraph, 2013). From books to baguettes, this mighty internet retailer sees business extension into the grocery sector as a profitable opportunity.

Clearly, managing these multi-channels is not easy, which is why Ocado has been searched out for its warehouse management and fulfilment capabilities. Although stock management and logistics increase the complexity of the “back office” operations in organisations, as in the John Lewis model, it is imperative for 21st century retailers to create customer benefits and loyalty in an increasingly dynamic and competitive market.

References Colla E, Lapoule P, (2012),”E-commerce: exploring the critical success factors”, International Journal of Retail & Distribution Management, Vol. 40 Iss: 11 pp. 842 – 864 Hawkes S (2013) “Amazon ‘among retailers looking at Ocado’ Daily Telegraph, UK Layton A, (2012) Presentation at Operations Management Workshop, Roehampton University, UK http://www.ocadogroup.com/about-us/key-facts. aspx accessed 24/6/2013 http://www.ocadogroup.com/~/media/Files/O/ Ocado/pdf/Ocado%20to%20license%20technology%20to%20Morrisons%2017052013.pdf accessed 18/4/2013 http://www.tesco-careers.com/home/about-us/locations accessed 24/6/2013 http://www.youtube.com/watch?v=nJVoYsBym88 accessed 12/6/2013 http://www.venturenavigator.co.uk/content/153 accessed 12/6/2013 © James Rowell 2013

The Expo ne ntial Developme nt of the I nformatio n a nd Commu nicatio ns Technologies – A Comp lex Process Whic h is Ge nerating Progress Know ledge from Peop le to Peop le

By Prof. Eng. Ph.D. Victor GREU

Abstract The information and communications technologies (ICT) are characterized by an exponential development which is unique in industry and has unprecedented consequencies in the entire society.

The paper’s analysis is focused on the features of this exponential development, which is for decades ruled by Moore’s Law, but some premises of a slower pace are also presented.

Among the presented features, a systemic one is the large, often said ubiquitous, spreading and use of the ICT components, products and services over the whole humankind life and Earth including all other „industries”. Another feature is the essential contribution of ICT to the evolution of the human society as „information society”(IS) and to the transformation of IS towards the future „knowledge based society”.

The paper also presents the driving basics of the ICT, consisting in some characteristic models, where the main is the inherent convergence between the communications and the information technology.

Another major feature of the ICT models consists of scalable, flexible, reproductible and highly multiplying (logic reusing) digital processing algorithms, software and techniques, which support the open design, implementation and functionality of the ICT components, products and services.

The analysis concluded that the global effect of ICT development could be expressed as a 3 dimensional process and it acts as a systemic liant for these dimensions by the knowldege involved in all human activities leveraged by ICT. Finally, the paper analyzed the most relevant systemic exemples of the ways ICT development generates refined knowledge. In a systemic approach, the exa-scale supercomputers targets, including human genom, wiring model of the human brain, artificial intelligence and spatial projects are considered.

The main paper’s conclusion is that ICT’s exponential development leverages the generation of the refined knowledge in IS/KBS, for the people’s well and mankind progress on Earth and beyound.

Keywords: communications and information technologies, Moore Law, exa-scale supercomputers, human genom, smartphones, open design, solar wind monitoring.

JEL Classification: L63, L86, M15, O13, O33

1. Introduction The information and communications technologies (ICT) represent a phenomenon which surprises us everyday by its huge influence on actual mankind activity, irrespective the domain where we analyze it, from industry to finances, from medicine to entertainment etc.

Some features that make ICT very different („a phenomenon”), among other fields we may generally call „industries”, include the ICT’s unique exponential speed of development and the subsequent power to inovate, with unprecedented efficacity and efficiency, all they „touch”.

Another prominent and systemic feature is the large, often said ubiquitous, spreading and use of the ICT components, products and services over the whole humankind life and Earth, including all other „industries”.

Before starting to analyze some concrete mechanisms and consequences of ICT dynamic development, we must remark that these

features only tend to define ICT phenomenon as a revolution, similar as consequences, for the mankind, to the „industrial revolution”.

It is also worth to note the essential contribution of ICT to the evolution of the human society as „information society” (IS) and to the transformation of IS towards the future „knowledge based society” (KBS) [10], both being very complex processes where ICT is included as a main driving factor.

2. The exponential consequences of the Moore Law and other ICT trends When searching for the ICT developing mechanisms, we already have some obvious premises in the above mentioned features, as they represent essential factors for the development of the entire world (IS and so on) and this way high priorities in investments and research.

In this direction perhaps it is very significant a simple example: only the games sector of the entertainment industry has annual revenues of the billions of US dollars order. Here the point is, for a further discussion, that the weight of the „online” games and associated services has an amazing increase.

Of course we have to observe first the rest of the iceberg that ICT represent, as applications, investments and research, versus other monster „industries” or social domains as energy, auto/ transportations, chemistry, food, commerce, defence/ security, communications, informatics, finances,

medicine, media and so on, where the applications and the „social commands” are huge and so the figures of investments.

The main mechanism which explains the exponential evolution of the ICT, without being an independent one versus the above examples, is given by the intrinsic technological and theoretical basics of the ICT. The basics of the ICT have some characteristic models, but the main systemic one is the inherent convergence between the communications (notice that the first electric „computer” was the telephony switch!) and the information technology.

Another major feature of the ICT models is achieved by the scalable, flexible, reproductible and highly multiplying (logic reusing) digital processing algorithms, software and techniques, which support the open design, implementation and functionality of the ICT components, products and services.

In order to understand the amazing consequences of the digital processing, counting only the communications field, it is very relevant the example of the evolution from the first analogue mobile cellular communications, as terminals and services, versus the actual cellular smartphones which fully benefit from the huge advances in radio digital processing of the last 20 years.

It is important to mention that one of the embeded models that strongly influence the amazing speed of ICT development is the open design, where the main component, also reflected in all the modern ICT, is the software based development of the ICT products and services.

All the mentioned features of ICT represent basic conceptual factors, but perhaps the most influent factor, strongly depending on the above ones, is a mix of concrete electronic technologies which effectively produce the main ICT electronic components and materials, mainly (but far from being exclusively – the best exemple being the sensors) represented by the processors and memories integrated chips (i.e. integrated circuits).

This way we just arrived to the „heart” of the ICT exponential development, where the well known „Moore Law” is ruling, so far (Intel co-founder Gordon E. Moore predicted the trend in 1965).

For decades this „rule” estimated that every 2 years (18 months by Intel) the number of transistors integrated on a chip will double.

The signification and the implications of this rule are also changing, because, as long as it was confirmed, it became a metric and mathematically speaking generated the exponential feature of the ICT

development, which is a huge reality for an industry.

More than this, the Moore Law allowed some related estimations for the ICT (and associated areas) forecasts, one of the most daring referring to the „smarter-than-human intelligence”[1], which is quite advanced versus the old question: would the artificial intelligence equal the human one?

On the other hand we have to observe that recently the valability, in the future, of the Moore Law is more and more discussed.

At this point we came back to the above mentioned heart of ICT, because the actual period is dominated by the struggle of Intel and other few companies which lead the progress of ITC by implementing state-of-the-art models and technologies in order to continue the Moore Law’s era [2], [3].

With other words, it is a matter of fact that the evolution of ICT reached a pace and level of performance that is more and more difficult to maintain.

The ICT’s just mentioned limit is very strong linked with an other challenge, this time of the IS and generally of the human kind, referring to the controversial apogee or decline stage we are living in on Earth [4].

Although the actual paper space is not suitable for a detailed analysis, we have to mention some trends of the ICT development, which are closely linked with the main challenges this development has to face.

The exponential increase of ICT is just correlated with an even greater increase of the request of communications and processing products and services, also called „data deluge”/”exa-data era”, which have already been analyzed [8], [5].

All these challenges and premises put a high pressure on ICT to increase processors speeds and memories performances, along with similar requests for the communications networks to offer unprecedented high transport and access capacities.

These trends are more and more addressed to the avalanche development of mobile ICT, as the dominant challenge for the features of the actual ICT products and services is „integrated, ubiquitous, wideband and mobile”.

All these features lead to the above mentioned pressure to design and develop new performant models and technologies, where the increase of speed and number of transistors on chip while keeping the dissipated (consumption) power low are phisically opposite tendencies - that is why the Moore Law tend to be obsolete.

An even realistic image of the actual trends is completed with the request to have the performances increase on mobile devices, as laptops, smartphones, tablets etc. [10].

On this line we may notice the actual efforts made by Intel, as main research force and other very few forces, to design new models and technologies either on the „old” track, as 22nm MOS channel and future step around 14nm, or looking for revolutionary ones, including the 3D-FinFET or other undiscovered models, [6], [7].

The essential observation here is in the fact that the next steps (after 14nm or similar last mile resources) are not known yet and perhaps the mankind has again to learn from the nature (the biological world – for example the human brain) in order to add value and innovation to his apogee achievements [8].

We may now understand how important and complex are the processes of ICT development in their continue race with themselves and why their exponential or slower evolution is transferred to the similar consequences in the IS and then to KBS.

On the other hand we have to imagine what if the mentioned race will slow and to what extent, but these are not easy questions just like to maintain the pace is not an easy way.

As a consequence, we believe that this is one of the actual and dramatic points where the mankind has to know exactly what is at the risk to be lost and it is better to also know the value of the things we could lose before that happens, in order to efficiently react and refine the knowledge.

In the case of the ICT’s development pace, it is fair to also observe that the slowing does not necessary bring only bad consequencies, while the progress is analyzed at the mankind, IS/KBS and Earth global scale and implications, considering secondary effects as Earth resources fading, climate changes and human profile [10], [4].

3. How ICT generate refined knowledge from people to people, for progress on Earth and beyond The importance of knowledge in the IS towards KBS is largely understood and analyzed [9], [10]. A particular feature is that the processes of knowledge generation became more and more complex and complicated as the mankind progressed by amazing scientifc, technological, culturaland social advances.

As information too, the knowledge is an elementary category of concepts that is not precisely

measurable, but on the contrary they could have dynamic content and time sensitive value.

On these premises the concept of refined knowledge is an realistic approach to characterize the essence of the knowledge as a process, so its content and value are subject to update and depending on the new context, which generally include a new level of global progress.

To be more precise, there are fundamental knowledges that keep their content validity and in most of the cases their value, but the majority of the new knowledge (which in time determine the average) are influenced by the above mentioned factors and features.

The role of ICT in IS/KBS is overwhelming and also very much analyzed and we think that their influence could be estimated by a 3 dimensional (3D) model [10]: ü on horizontal, by the number of influenced mankind activity fields; ü on vertical, by the depth of the influence inside every field; ü in time, by the period and speed of the generated influence.

Then the global effect of ICT development could be simulate by the multiplication of the 3 dimensions, resulting a “volume” – we may call the volume of changes (VOC).

If VOC reflects a quantitative feature, we can further discuss some detailed mechanisms which generate the above 3 dimensions.

Here it is essential to observe that a systemic liant for these 3 dimensions is the knowldege and then, even shortly, we have to analyze some examples of the ways ICT development generates refined knowledge.

An also systemic premise is the concept of „humanitarian technology” which was recently associated with ICT [1], as bringing together all the known social goals of ICT components, products and services.

On the the same systemic line, we think that all the refined knowledge are generated now (at least until „smarter-than-human intelligence” will be created!?) from the people to the people.

With other words, irrespective the added technological ways, people are thinking (and then they could generate knowledge) mainly in order to innovate and improve their lives and ultimately the mankind life, so the final destination is to the people.

In this far from being simple process we must analyze the essential and exponentially increasing contribution of ICT in generating refined knowledge,

as „the added technological ways” people create refined knowledge have radically changed, especially in the last decades, due to ICT. That is why we may say that ICT exponential development generate knowledge, as they are strongly leveraging the people’s creative capacity, by some essential mechanisms.

A direct mechanism is generated by the new and powerful (thinking and acting) skills ICT offer to the people when they use ICT components, products and services (ICT-CPS), due to the higher levels of built-in intelligence and knowledge.

Another mechanism consists of the powerful and diverse ways people use ICT-CPS in order to achieve data, information and knowledge and then generate refined knowledge in all their activities.

Some relevant concrete examples of ICTCPS, supporting the above features and keeping as much as possible a systemic criterion, will be shortly presented bellow.

Perhaps the most important refined knowledge class for the mankind is that referring to health and medicine. After the helix shape of DNA discovering (1953), now the interpretation of human genom is a revolutionary achievement where ICT-CPS have a dramatic role.

Chip based genetic sequencing is already possible and this provides, with only one drop of blood, to interprete (for about 1000 US dollars each) the entire human genom of 3 billions components, i.e. to determine the unique sequence that defines an individual [11]. This achievemenet will open a new era in medicine, in order to prevent and then precisely treat the worst diseases.

In the same field of medicine, one of the biggest challenges for ICT-CPS is to determine the wiring diagram of the human brain. In this World project the scientists try to identify the neuron networks involved and understand the associated mechanisms of perception and cognition.

A relevant expression of the complexity of the wiring diagram of the human brain is the fact that this project is one of the few goals for the future exa-scale supercomputers, because 1mm3 (of brain) will request about 1 petabyte (1000 terabytes), so eventually about 1000 exabytes [12], [10].

In order to help the persons with disabilities, ICT-CPS is used to realize an added wireless nervous system which will compesate the disabled functions/ organs by implanting appropriate signals in critical zones of the human body, on a scale and complexity highly surpassing the already old pace-maker [13].

It is obvious that, from the genome cells to the

Sun and the Milky Way, we can shortly try to imagine all our life, Earth “life” and beyond.

This giant step is a reality based approach to shorter the examples list, as some prominent project where ICT-CPS have an essential role are extended that far.

After we have almost forgot the 24 satellites composing the GPS (included as device in our cars and smartphones), we assist at a spectacular project, where the solar activity (including the storms) will be watched by a new 2 satellites system measuring the solar wind at 1.5 millions km from Sun, along with an experimental system called SUNJAMMER which will fly 1 million km closer to the Sun (i.e. at „only” 0.5 million km).

For understanding the punt of a such system (ignoring the communication link!) it is useful to remember March 1989 Quebec and south New Jersey „black out” and then to imagine the necessity of the power grid protection early warning for the next solar superstorm [14].

Also on space research, the GAIA European project is going to start a vast program to explore the Milky Way and it is easy to understand that such a daring goal is based on the unprecedent performance and processing capacity of the involved ICT-CPS. This spatial journey could not be complete if we would not mention the stage of the spatial odissey, where the private trip in space is already an affordable service for space traveling.

Because we have just mentioned the future exa-scale supercomputers it is worth to complete the image (and the examples list) with this „flag” of ICT-CPS, as they reflect in the same time the exponential development and the unique and essential contributions to achieve revolutionary future targets like the artificial intelligence and global climate changes forecast [10], [2].

It is important to mention that these targets, along with the wiring diagram of the human brain represent the few domains where the whole World progress is not sufficient, yet, to achieve the objectives and this progress is mainly depending on the ICT-CPS by the future of exa-scale supercomputers (over 1 billion of operations per second and 10000 of cores).

On the other hand, these targets will bring huge contributions by the refined knowledge useful for solving fundamental problems of the mankind’s every day life and destiny on Earth.

We have to remember that some decades ago the supercomputers had as main goal to simulate the nuclear explosions or experiments. In our days, security domains like broking cryptographic codes

remain non-civilian priority applications for supercomputers.

As a matter of fact, the significant examples could continue, but, ignoring the paper space, the above presented, in a systemic approach, have clearly - although not exhaustive - covered the objectives of this paper and allow to understand the huge dimensions of the mechanisms by which the ICT exponential development leverages the generation of the refined knowledge in IS/KBS, for the people’s well and mankind progress.

4. Conclusions The ICT exponential development, even after a short analysis, represents a phenomenon by its huge influence on actual mankind activity, irrespective the domain where we analyze it, from industry to finances, from medicine to entertainment etc.

ICT’s unique exponential speed of development and the subsequent power to inovate provides unprecedent efficacity and efficiency for all they „touch”.

As a global consequence, ICT have an the essential contribution to the evolution of the human society as IS and to the transformation of IS towards the future KBS, both being very complex processes where ICT is included as a main driving factor.

Observing that the ICT’s exponential pace given by the Moore Law is very difficult to be maintained, led to the conclusion that we are at the actual and dramatic points where the mankind has to know exactly what is at the risk to be lost and it is better to also know the value of the things we could lose before that happens, in order to efficiently react and refine the knowledge.

The analysis concluded that the global effect of ICT development could be expressed as a 3 dimensional process and it acts as a systemic liant for these dimensions by the knowldege involved in all human activities leveraged by ICT. Finally, the paper analyzed the most relevant systemic exemples of the ways ICT development generates refined knowledge, there resulting the huge dimensions of the mechanisms by which the ICT exponential development leverages the generation of the refined knowledge in IS/KBS, for the people’s well and mankind progress on Earth and beyound.

REFERENCES [1] Peter Staecker, Humanitarian Technology...and Moore, IEEE The Institute, March 2013 [2] Sean Koehl, The Exa-scale Supercomputer of 2020, Intel European Research and Innovation Conference, September, 2010, www.intel.com.

[3] Kathy Pretz, The future of computing, IEEE The Institute, March 2013 [4] Victor Greu, Searching the right tracks of new technologies in the earth race for a balance between progress and survival, Romanian Distribution Committee Magazine, Volume 3, Issue1, Year 2012.

[5] Paul McFedries, The coming data deluge, IEEE Spectrum, feb.2011.

[6] Katherine Bourzac, Intel inside...your smartphone, IEEE Spectrum, Jan.2013.

[7] Rachel Courtland, 3-D transistors for all, IEEE Spectrum, Jan.2013.

[8] Victor Greu, Evaluating the development steps based on life-inspired information and communications technologies, Romanian Distribution Committee Magazine, Volume 2, Issue4, Year 2011.

[9] Abdulaziz S. Almazyad and Farooqui N.K., Towards Knowledge Based Society, Proceedings of the World Congress on Engineering and Computer Science 2009 Vol II, WCECS 2009, October 20-22, 2009, San Francisco, USA [10] Victor Greu, The pace of the development in communications and information technologies is driving the information society to yesterday’s incredible steps, Romanian Distribution Committee Magazine, Volume 4, Issue1, Year 2013.

[11] Eliza Strickland, The gene machine, IEEE Spectrum, Mar. 2013.

[12] Eliza Strickland, A wiring diagram of the brain, IEEE Spectrum, May 2013.

[13] Ariel Bleicher, Peaceful coexistence, IEEE Spectrum, Apr. 2013.

[14] Jean Kumagai, Protecting the power grid from solar storms, IEEE Spectrum, Apr. 2013.

IMPLEMENTING AND ADAPTING SERVICES MARKETING TO THE COMPANY’S STRUCTURE, SYSTEMS AND CULTURE

by George Cosmin Tănase Abstract Services marketing, by definition, focuses on the external stakeholders, and principally on the customers. By managing the interactions and relationships with the customers, value is created. Successful value-oriented services marketing is determined by strong interdependencies between all stakeholders within the service firm. In order to be able to produce value, it is not enough that a marketing manager takes some decisions. The employees and above all the customer contact employees play an important role in service delivery. However, a service employee is not an isolated individual, focused only on individual interactions and relationships with the customer. In most service industries, service employees’ behaviour is even more influenced by internal factors, e.g. the colleagues’ and supervisors’ behaviours, as well as the systems and the culture of the firm. All these are factors of services marketing implementation which support the realisation of the services marketing concept in the firm.

Key words: Structural Organisation, Marketing Function, Service Value Chain, Interaction, Customer Retention, Relationship, Service Employees JEL Classification: L21, L22, L80, M21, M31

The firm not only supports services marketing implementation, conversely, services marketing supports the firm’s efforts to create value. Services marketing contributes to a firm’s value creation in many diverse ways. Since financial resources are frequently scarce in companies, service providers conduct an examination of services marketing activities according to their value contribution, as an all-firm activity. This is the task of controlling a firm.

Implementation and control support the systematic realisation of the activities in the value processes of the provider. More specifically: • Considering and managing implementation factors of services marketing not only facilitates the realisation of value-oriented marketing, it also makes it possible. To illustrate this, take one important implementation factor as an example: company culture.

When a service firm is characterised by a company culture which is not customer-oriented and where the top management ignores the opinions of the subordinates, it is unlikely that the employees will behave in a value-oriented sense. At least, they will not aim to contribute to a realisation of the firm’s objectives.

Furthermore, they will not behave in a customer-oriented manner as they are not motivated to be customer focused. The consequences are dissatisfied customers, slower service processes with the respective negative consequences for firm value.

• Services marketing control is the core of a recursive process: controlling both examines the value creation by services marketing activities and, through this, delivers the basis for the planning of future value-oriented measures. Services marketing control provides value-oriented performance figures which allow the management to assess whether the activities of the service firm contribute to firm value and the reasons

for the value effects. Since knowledge is an important determinant for management decisions, controlling delivers the fundamentals for value creation through services marketing.

Value-oriented services marketing underlies the principle that all activities aim to create value for the firm. According to the interdependence between the Service Value Chain and the service profit chain, value creation through marketing is realised when the firm is successful in delivering value to the customers whose behaviour in turn helps create financial value to the firm. Based on this premise, the services marketing decisions consider the value implications of marketing activities. Interactions and relationships with customers are supposed to create value, as are the secondary value activities which concern the definition, delivery and communication of service value as well as the value-oriented employment of service resources.

These decisions and activities are not isolated from other decisions in the firm. For example, the budget for services marketing represents the frame within which services marketing managers can take decisions. Consequently, when the top management pursues other strategically important topics, services marketing might have to manage on a reduced budget. This argument concerns the support of the service firm for the implementation of value-oriented services marketing. The design of the service firm in general determines the possibilities for value-oriented services marketing. There are three main features of this ‘design’: • structure of the service firm; • systems of the service firm; • culture of the service firm.

The design of these features can take on a variety of forms; from a value perspective, their design can be more or less value-oriented. Being value-oriented means in this context, whether a firm’s structure, systems and culture are designed in such a way as to enable or support value creation by services marketing, i.e. whether the implementation drivers support services marketing’s ability to deliver value to the customers and in turn create financial value for the company. Consequently, service firms which follow a value-oriented strategy regularly audit their structures, systems and culture regarding their value-orientation and undertake adaptations if necessary and possible.

Value-oriented company organisation The company organisation describes first who is responsible for what tasks in a firm, e.g. who is responsible for measuring service quality, and how the different tasks are prioritised, e.g. does the person who is responsible for service quality measurement report to the person who is responsible for managing service quality or vice versa or are they both independent from each other? These questions concern the company structure as a first part of a company’s organisation. The organisation structure arranges the different tasks in a firm. Since tasks often overlap, a second important part of a firm’s organisation concerns the links between the different tasks. These links are defined by the process organisation of the firm.

The structural organisation of the firm describes how the activities and responsibilities in a firm are arranged. Typical aspects of structural organisation are the definition of organisational entities, e.g. departments, the allocation of responsibilities to these entities and the authorities between and within these departments. Over the course of time, three basic types of organisational structures have emerged: • functional organisation; • object organisation; • matrix organisation.

When a functional organisation is applied in a service firm, the second level of the organisational chart under the top management is determined by homogeneous groups of activities. Typical functional activities in a service firm are human resources, controlling, operations, service, IT or marketing. Functional organisations result in clear company structures. It is well defined who is responsible for which tasks, such as who is responsible for managing customer interactions and relationships. This clear definition of responsibilities generally facilitates the fulfilment of services marketing tasks. By the centralisation of decisions, synergies can be realised and coordination costs reduced. The centralised decision-taking also results in standardised decisions. There are behavioural rules defined for many conceivable situations. Especially in service industries, due to the direct contact between provider and customer, unplanned situations are frequent, e.g. when failures happen in the service delivery and the customer is annoyed. The standardisation of decisions can be diminished by increasing the decisionmaking authorities of service employees e.g. by empowerment.

Another type of structural organisation is an object organisation. Typical ‘objects’ which are used for structuring a firm are service products, customer groups or geographical regions. Typical examples are a bank’s division into private and corporate clients or a consultancy’s division into regional areas and consulting topics, such as strategic consulting, marketing consulting or process consulting. This type of organisation results in quasi-independent subdivisions of a service firm, which are often profit centres or even independent companies. These entities then have direct profit responsibility. At some level within the structure, there will also appear a functional organisation. But then, for example, the marketing for private clients is managed by the private client division and the marketing for corporate clients by the corporate client division.

As a third type of organisational structure, the matrix organisation combines at least two other organisational forms, optimally both functional and object organizational forms. By this, the matrix organisation aims to integrate the advantages of the two other organisational types. The basic principle of a matrix organization is that, should coordination conflicts occur, there is no dominant organizational level, neither the functional nor the object organisation. The two sides are supposed to resolve conflicts.

Process organisation of a service firm The major organisational criteria of a process organisation are not the functions or objects or both, but processes, the entities of workflows in a service firm which are connected with each other. This connectivity concerns the chronological order of workflows, i.e. the sequences of activities. A process orientation does not replace other organisational forms. A firm still might be functionally organised with a marketing and a controlling department.

A process-oriented organisation uses the core processes of a firm as an organisational criterion. Processes are managed according to their value creation. For processes where several organisational entities are involved, often process owners are defined. These are individuals who are responsible for the effectiveness and efficiency of a specific process. The process owners often assemble process teams in order to coordinate the participation of different entities at the process. Overall, the processes are coordinated by a managing team.

The team members define the core processes and the process owners. From the perspective of value-oriented services marketing, a process organisation is an important tool to realise the aim of value creation by services marketing.

The Service Value Chain defines the primary processes ‘interaction process’ and ‘relationship process’ which are supported by secondary processes. By organising the service firm around these processes, value creation by them can be optimised.

Then, a firm’s process organisation is built around the single processes of the relationship process, i.e. customer acquisition, customer retention, relationship enhancement and customer recovery. Out of every functional unit, representatives are affiliated into organisational teams for each process step in order to jointly manage the respective phase of the relationship process. An institutionalisation of the relationship process within the firm’s organisation is often found in direct marketing oriented service firms such as mail-order businesses. These often have clearly defined ‘customer acquisition’, ‘customer retention’ and ‘customer recovery’ departments.

Value-oriented company systems A further driver of services marketing’s implementation are a company’s systems. Systems describe how certain processes (e.g. complaint management process or reservation process) are organised, i.e. which individual steps the respective process contains. Sometimes, the expression ‘systems’ is perceived as being synonymous with ‘technology’. Even though there are also systems which use technologies which are important for services marketing, a system (e.g. complaint management system) is not necessarily synonymous with technology. There are three types of company systems which are closely connected with value-oriented services marketing. These are: · Information systems - utilised in order to generate, process and transfer information regarding aspects which are relevant for services marketing. · Communication systems - design the communication processes with relevance for services marketing. · Management systems - support a service provider’s management to take decisions and are utilised to structure and initiate as well as control services marketing activities.

Summary and conclusion The focus of value-oriented services marketing is the value of the firm and the contribution of marketing activities to this value. Regarding the determinants of a firm’s value, there is a mirror-like relationship regarding the value concept: value to the customer leads to value for the firm.

Perceived service value is the link between services marketing and value creating customer behaviours. The more a customer values a service the more likely it is that they will use the service. Services marketing implementation affects value creation by enhancing and supporting value-oriented marketing activities.

Regarding company structure, the structural organisation (e.g. functional, object or matrix organisation) and the process organisation influence the value-orientation of services marketing. The realisation of value-oriented services marketing is supported by three implementation factors: company structure, systems and culture.

References

[1] [2] [3] [4] [5] [6] [7] [8]

Strong, C.A. and Harris, L.C. (2004) ‘The drivers of customer orientation: An exploration of relational, human resource and procedural tactics’ Journal of Strategic Marketing 12 (3) pp. 183–204 Bruhn, M. (2002b) Relationship Marketing: Managing Customer Relationships, Harlow: Pearson Education.

Laing, A.W. and McKee, L. (2000) ’Structuring the marketing function in complex professional service organizations’ European Journal of Marketing 34 (5/6) pp. 576–97.

Lovelock, C. and Wirtz, J. (2004) Services Marketing: People, Technology, Strategy, Upper Saddle River, NJ: Pearson/Prentice-Hall.

Martin, C.R. Jr., Horne, D.A. and Chan, W.S. (2001) ‘A perspective on client productivity in business-to-business consulting services’ International Journal of Service Industry Management 12 (2) pp. 137–48.

Payne, A., Holt, S. and Frow, P. (2001) ‘Relationship value management: Exploring the integration of employee, customer and shareholder value and enterprise performance models’, Journal of Marketing Management 17 (7/8) pp. 785–817.

Sweeney, J.C. and Soutar, G.N. (2001) ‘Consumer perceived value: The development of a multiple item scale’ Journal of Retailing 77 (2) pp. 203–20.

Brady, M.K. and Cronin, J.J. (2001) ‘Some new thoughts on conceptualizing perceived service quality: A hierarchical approach‘ Journal of Marketing 65 (3) pp. 24–49.

Abstract Within the framework of the well-known European Commission’s strategic vision (aiming to maximize consumer participation and trust in the market by reinforcing consumer safety, enhancing knowledge, stepping up enforcement and securing redress, aligning consumer rights and policies to changes in society and in the economy), and of the substantial corpus of consumer law, and consumer rights (which exist in practice thanks to continuous improving of enforcement and securing redress), consumers are really empowered if they can have their rights properly enforced within a robust framework which allows them to participate actively in the market. It is our duty to look after potential ambiguities in the Consumer Rights Directive, while respecting the meaning and intent of this Directive, and to bring necessary clarification, either in guidance or in the legislation itself, which would be beneficial to consumers.

Key words: Consumer protection, empowered consumers, improved legislation JEL Classification: D18, L81 There is a way to repair a damaged commodity bought abroad In a previous article I was referring to those who used to buy goods abroad and find no way to solve the problem when need to repair them in Romania.

Normally, I pointed my finger to the authorities, be European or Romanian, which so far did not found a legal way to protect such customers. I meant that there is no law or directive in this respect.

Now in my turn I have to say that in spite of the fact that legally the problem is not solved so far there is a way to repair a damaged commodity bought abroad.

To all people interested to this issue please be informed that since couple of years ago, an European Center for Customers ( ECC-being present in all EU countries) is working together with a Romanian nongovernmental institution called “Romanian Association for Consumers’ Protection” - (in Romanian, Asociatia pentru Protectia Consumatorilor din Romania, APC Romania: http://www.apc-romania.ro/ ; founded in 1990, it informs, give advice, educate consumers about their rights and advocates equality for all consumers; please see also Dr. Costel Stanciu – President of APC Romania: http://www.crd-aida. ro/2007/02/apc-romania-consumers%e2%80%99protection-association-romania-a-founding-memberof-the-romanian-distribution-committee-is-confirming/ ). They act for anyone in need to arrange for a

Nicolaie Mihaiescu at “Sanabuna” Conference necessary liaison between the Romanian customer and a supplier located elsewhere in Europe. You simply contact the APC before reading all information available on web: www.CONSUMATOREUROPEAN. RO and www.eccromania.ro .

If your case involves a dispute about…

One thing cannot be solved under this special arrangement: APC even if supported by the European Center is not authorized to represent you in Court in cases of disputes. What they can do is more important and here are some directions: -as customer you have the right to be fully informed about goods and conditions on European markets and ECC will assist and offer any required details -under no circumstances you are obliged to buy goods you do not need or do not prefer -you are entitled to ask that damaged goods be repaired within or out of the warranty period -any commodity you got from an EU country is supposed to be under no suspicion and if that will not happen ECC will assist you to solve any possible claims or offer you to mediate the dispute (if dispute refers to claims valuing less than Euro 2000) -you have the right to return goods bought directly or through internet if are not satisfied -you are protected by European Center and APC any time you buy tourist services or make acquisitions abroad All that ECC and APC offer to you as European customers are free of charge.

So let me tell you once again that I found how to get my plane repaired and invite you to follow the procedure above in case of need. I hope that what today is done by the good will of two important institution will turn to a component of a legal framework.

A CHALLENGING CONTEST IN A TIME WHEN THE UNITED STATES OF AMERICA CELEBRATED ITS SIGNIFICANT LEGACY

BY MIHAELA-SILVIA MARINESCU

Abstract The Flag Day and the National Flag Week are significant events of the United States history and culture. On these special occasions America is celebrating this heritage in public gatherings and activities. In today’s global economy a high-quality education is a prerequisite to success, because economic progress and educational achievement are inextricably linked. Participating in a very interesting contest which celebrated the U.S. Flag Day is a real challenge. A space for conversations, information and engagement, to learn new skills or improve existing ones, this represents a veritable opportunity.

Key words: Flag Day, National Flag Week, high-quality education, conversation space, better understanding JEL Classification: A13, A21, A22, D83

A time to honor America, celebrating its significant legacy As we all know, on June 7, 2013, Mr. BARACK OBAMA, President of the United States of America, proclaimed June 14, 2013, as Flag Day and the week beginning June 9, 2013, as National Flag Week,1 calling upon the people of the United States to observe with pride and all due ceremony those days from Flag Day through Independence Day, also set aside by the Congress (89 Stat. 211), as a time to honor America, to celebrate this heritage in public gatherings and activities, and to publicly recite the Pledge of Allegiance to the Flag of the United States of America.

The President of the United States of America, Mr. BARACK OBAMA, highlighted that during this National Flag Week all Americans celebrate the significant legacy, honoring the brave men and 1 Presidential Proclamation -- Flag Day and National Flag Week, 2013, June 07, 2013, The White House, Office of the Press Secretary, http://www.whitehouse.gov/the-press-office/2013/06/07/presidential-proclamation-flag-day-andnational-flag-week-2013

women who have secured it through centuries of service at home and abroad.

I remembered with pleasure the quoted words of the President of the United States of America, Mr. BARACK OBAMA: “If we want America to lead in the 21st century, nothing is more important than giving everyone the best education possible — from the day they start preschool to the day they start their career.”2 I also had the opportunity to note that in today’s global economy a high-quality education is a prerequisite to success, because economic progress and educational achievement are inextricably linked.3 A challenging contest: “America’s Strength: The Diversity of Its People” This year, on June 13, “Ion Neculce High School”, Bucharest, designated me to lead a team in order to participate in a very interesting contest which celebrated the U.S. Flag Day. Its theme was very appealing: “America’s Strength: The Diversity of Its People”. We presented Kansas (it is known that the earliest reference to the suggestion of a “Flag Day” is cited in Kansas), a state with many remarkable figures such as Dwight Eisenhower, the 34th President of the United States, Amelia Earhart, the first female pilot to fly solo across the Atlantic, and many others. The contest was held at the Residence of His Excellency Mr. Duane C. Butcher, Chargé d’Affaires of the Diplomatic Mission of the United States in Romania, where we were very warmly treated.

2 3

http://www.whitehouse.gov/issues/education http://www.whitehouse.gov/issues/education/k-12

I was very delighted to approach His Excellency Mr. Duane C. Butcher and show my sincere appreciation towards his affirmation stated on Women’s Day 2013: “Romania’s women have played an indisputable role in the transformation of this country, economically speaking”. I specified that I fully agree with it and that I truly hope I’ll become one of these women as I am eager to study economics at University. When discussing particular things about Kansas with His Excellency, I also emphasized the fact that Kansas was the 8th state in the U.S. to allow for full suffrage for women. Afterwards, we socialized, debating various subjects, even TV series or movies.

His Excellency Mr. Duane C. Butcher, Chargé d’Affaires of the Diplomatic Mission of the United States in Romania, and Mihaela-Silvia Marinescu

A few days later I found out with pleasure about the statement made by His Excellency Mr. Duane C. Butcher on June 20, 2013, on the occasion of the inauguration of American Corner Bucharest. It was an impressive pledge for a space for conversations, information and engagement, to learn new skills or improve existing ones, with innovative, interactive, and interesting programs that will connect the Romanian public to contemporary American society and will contribute to a better understanding of United States history and culture.4

4

Charge d’Affaires Duane Butcher’s Remarks on the Occasion of the Inauguration of the American Corner Bucharest, June 20, 2013, http://romania.usembassy.gov/policy/media/pr-06202013.html

LÉON F. WEGNEZ (BY COURTESY OF)

A SHORT PRESENTATION OF THE LATEST ISSUE OF “DISTRIBUTION D’AUJOURD’HUI,” MARCH-APRIL-MAY 2013, BRUSSELS Shari ng with our disti nguis hed Readers two sources of usable a nd useful k nowledge…

Léon F. WEGNEZ and Florian POPA are both Honorary Members of the Romanian Distribution Committee, and distinguished Members of the Editorial Board of our “Romanian Distribution Committee Magazine“. Beyond the last two well-known recent actions where these two remarkable personalities have proved the importance of the collaborative environment (http://www.crd-aida.ro/2013/01/distribution-daujourdhui-journal-brusselsdecember-2012-in-53rd-year-journal-appearance-presented-message-professor-leon-f-wegnez-occasion-international-congress-heal/; http://www.crd-aida.ro/2013/02/leon-f-wegnez-doctor-honoris-causa-prestigious-snspabucharest-romania/), going back in time it is worth to also to remember the important event that took place at the famous Palais d’Egmont, Brussels, as reflected by the “Diplomatic Gazette”, Brussels, at the end of 2004 (http:// www.crd-aida.ro/our-team/florian-popa/).

Why this way? Because as we said in our introductory Editorial, events filled with great ideas are blessings given to us to learn from, and a better understanding that each of us can contribute somehow to these kind of events while building a better way in the continuous journey of identifying the market that is working well from an overall social standpoint.Knowing our distinguished readers’ thirst for knowledge, we combined at the end of this last issue of the “Romanian Distribution Committee Magazine“, by courtesy of these two remarkable personalities, a short selection of the latest issues of “Distribution d’aujourd’hui,” March-April-May 2013, Brussels, and “Journal of Medicine and Life,” Volume 6, Issue 2, April-June 2013, Bucharest.

FLORIAN POPA (BY COURTESY OF ) THINKING AND ACTING FOR SANABUNA 2013, “JOURNAL OF MEDICINE AND LIFE,” VOLUME 6, ISSUE 2, APRIL-JUNE 2013, BUCHAREST

ISSN:2069-0134