Definition Of Motivation Business Essay

Definition Of Motivation Business Essay One of the oldest, and most difficult, areas in psychology is the fundamental problem of why people are motivated to do anything at all, and if they do something, why that and not something else. The issue is really two fold; the nature of the driving force (where it comes from: what are its properties) and the direction and maintenance of the drive (what affects does it have on individual behavior). For Westwood (1992:288), motivation, as a concept, has certain specific features: Motivation is an internal state experienced by the individual. Whilst external factors including other people, can affect a persons motivational state, it develops within the individual and is unique to that individual. The individual experiences a motivational state in a way that gives rise to a desire, intention and pressure to act. Motivation has an element of choice, intention or willingness. That is, the individual experiencing a state of arousal (externally or internally generated), responds by choosing to act in a way and at a level of intensity that they determine. Action and performance are a function, at least in part, of motivation. It is therefore important in our ability to predict and understand actions and performance. Motivation is multi-faceted. It is a complex process with several elements and the possibility of multiple determinants, options and outcomes. Individuals differ in terms of their motivational state and the factors that affect it. Furthermore, the motivational state of an individual is variable; it is different across time and across situations. (John Arnold et al, 1995) There are two types of motivation as originally identified by Hertzberg et al (1957): Intrinsic motivation-The self generated factors that influence people to behave in a particular direction. These factors include responsibility, autonomy (freedom to act), scope to use and develop skills and abilities, interesting and challenging work and opportunities for advancement. Extrinsic motivation-what is done to or for people to motivate them. This includes rewards, such as increased pay, praise, or promotion, and punishments, such as disciplinary action, withholding pay, or criticisms. 2.2 The process of motivation Motivating other people is about getting them to move in the direction you want them to go in order to achieve a result. Motivating yourself is about setting the direction independently and then taking a course of action, which will ensure that you get there. Motivation can be described as goal -directed behavior. People are motivated when they expect that a course of action is likely to lead to the attainment of a goal and a valued reward-one that satisfies their needs. But managers still have a major part to play in using their motivating skills to get people to give of their best, and to make good use of motivational processes provided by the organization. To do this it is necessary to understand the process of motivation-how it works and the different types of motivations that exist. A need -related model of the process of motivation is shown in the figure below. This suggests that motivation is initiated by the conscious or unconscious recognition of unsatisfied needs. These nee ds create wants, which are desires to achieve or obtain something. Goals are then established which is believed will satisfy these needs and wants and a behaviour pathway is selected which is expected will achieve the goal. If the goal is achieved, the need will be satisfied and the behaviour is likely to be repeated, the next time a similar need emerges. If the goal is not achieved, the action is less likely to be repeated. This process of repeating successful behaviour or actions is called reinforcement or the law of effect (Hull, 1951). It has, however, been criticized by Allport (1954) as ignoring the influence of expectations and therefore constituting hedonism of the past. (Michael Armstrong, 2001: 155). Attain Goal Need Take Action Establish Goal Figure2.1: The motivation process (Source: Michael Armstrong, 2001:155). 2.3 Approaches to motivation 2.3.1 Theory X and Theory Y Douglas Mc Gregor proposed two distinct views of human beings: one basically negative, labeled theory X, and the other basically positive, labeled theory Y. Under Theory X, the 4 assumptions held by managers are: Employees inherently dislike work, whenever possible, will attempt to avoid it. Since employees dislike work, they must be coerced, controlled, or threatened with punishment to achieve goals. Employees will avoid responsibilities and seek formal direction whenever possible. Most workers place security above all other factors associated with work and display little ambitions. In contrast to these negative views the nature of human being, Mc Gregor listed 4 positive assumptions that he called Theory Y: Employees can view work as being as natural as rest or play. People will exercise self-direction and self-control if they are committed to the objectives. The average person can learn to accept, even seek responsibility. The ability to make innovative decision is widely dispersed throughout the population and is not necessarily the sole province of those in management position. Mc Gregor himself held to the being that Theory Y assumptions were more valid than Theory X. Therefore, he proposed such idea as participate in decision making, responsible and challenging jobs, and good go up relation as approaches that would maximize an employees job motivation. Critics of the theory: Unfortunately, there is no evidence to confirm that either set of assumptions is valid or that accepting theory y assumptions and altering ones acknowledgment will lead to more motivated workers. (Stephen P. Robins, 1993: 208) 2. 3.2 Human Relation Approach The main emphasis of the classical approach was on structure and the formal organization as the basic for achieving high levels of work performance. But during the 1920s greater attention began to be given to the social factors at work and to the behaviour of people in the organization that is human relations. The major impetus to the human relations approach came with the famous Hawthorne studies at the Western Electric company in America (1924 1932). The Hawthorne Studies have been subject to criticize and to a number of different interpretation. But however, the results are regarded; the studies have important implications for organizational structures. They generated new ideas on social interaction, output restrictions and individuals within work groups. The human relations approach marked a change in emphasis away from the precision of scientific management and led to ideas on increasing productivity by humanizing the work organization with the human relations approach, recognition was given to the importance of the informal organization which will always be seen as individuals and members of a social group, with their behaviour and attitude as the key effectiveness. (Laurie J. Mullins, 1992:59) 2.3.3 Scientific Management Approach The scientific management movement was pioneered by the American, Frederic W. Taylor. He saw workers who do manual work to be motivated by money, the greedy robot, and to be too stupid to develop the one best way of doing the task. The role of management was to analyze scientifically all the tasks to be done and then to design jobs to eliminate wasted time and motion. The application of scientific management resulted in significant productivity increases. However, the emphasis on specialization was to become one of the targets of critics of scientific management. They argued, that specialization was ultimately inefficient but, more importantly; it did not allow people to achieve their full potential at work. (Henry L. Tosi et al, 1994:9) Scientific management is often referred to as a machine theory model. It adopts an instrumental view of human behaviour together with the application of specialization and standard procedures of work. Workers were viewed less as isolated individuals and more as units of production to handle in much the same way as machines. The scientific study of work can lead to jobs becoming repetitive, boring and requiring little skills. The ideas behind scientific management have been largely discredited by subsequent management writers. There has been strong criticism of scientific as representing close management control over workers. By removing decisions about their work is cairned out, by division of labour, and by dictating precise stages and methods for every aspect of work performance, management could gain control of the actual process of work. The rationalization of production processes and division of labour tends to result in de-skilling of work, and thus may be a main strategy of ma nagement. (Laurie J. Mullins, 1992:56) 2.4 The motivation theories 2.4.1 Content theory 2.4.1.1 Maslow theory Without doubt the best-known theory is of Maslow (1954). Maslow supposed that people have 5 types of needs that are activated in a hierarchical manner, and are then aroused in a specific order such that a lower order need must be satisfied before the next higher order- need is activated. Once need is met, the next highest need is the hierarchy is triggered and and so forth. Higher Order order of progression Self-actualisation needs Self-esteem needs Social needs Safety needs Psychological needs Lower Order Figure2.2: Maslows need hierarchy Source: A.H.Maslow, Motivation and Personality, 2nd edition, New York: Harper Row, 1976) Psychological needs Psychological needs are the lowest-order most basic needs and refer to satisfying fundamental biological drives such as the need for food, air, water and shelter. To satisfy these positive needs, organizations must provide employees with a salary that allows them to afford adequate living conditions e.g. food and shelter. Employees need sufficient rest breaks to allow them to meet their psychological needs. Organizations may provide exercise and physical fitness facilities for their employees, because providing such facilities may also be recognized as an attempt to help employees stay healthy by gratifying their psychological needs. Safety needs Safety needs are activated only after physiological needs are met. Safety need refer to needs for a secure, predictable, habitable, non-threatening environment free from threats of either physical or psychological harm. Organizations may provide employees with life and health insurance plans, opportunity for savings, pensions, and safety equipment and secure contracts that enable work to be performed without fear and harm. Social needs Social needs are activated after both physiological and safety needs. They refer to the need to be affiliative-to have friends, to be liked, included and accepted by other people. Friends, relations and work colleagues help meet social needs, and organizations may encourage participation in social events such as office parties, sports days, competitions which provide an opportunity for meeting these needs. Many organizations spend vast sums of money on facilitate for out-of-work hours activities for their staff so that people in the same organization, but different sections or departments, may meet, chat and affiliate. Esteem needs Esteem needs refer to a persons desire to develop self-respect and to gain the approval of others. The desires to achieve success have personal prestige and are recognized by others all fall into this category. Companies may have awards, prizes or banquets to recognize distinguished achievements. Printing articles in company newsletters describing an employees success, assigning private parking spaces, and posting signs identifying the employee of the month are all examples of things that can be done to satisfy esteem. The inflation of job titles could also be seen as an organizational attempt to boost employees self-esteem. Self-actualizations needs Self-actualization needs refer to the need for self-fulfillment-the desire to become all that one is capable of being, developing ones potential and fully realizing ones abilities. By working to their maximum creative potential, employees who are self-actualised can be an extremely valuable asset to their organizations. Individuals who have become self-actualised supposedly work at their peak, and represent the most effective use of an organizations human resources. Critics of the theory: The theory has enthusiascally applied to the world of work. However, few have been able to find evidence of the five-(or two-) their system (Mitchell Nowdgill 1976), and there is precious little evidence that needs are activated in the same order. Furthermore, it is not certain how, when or why the gratification of one stimulates or activates the next highest category (John Arnold et al, 1995). 2.4.1.2 Adelfers ERG theory Growth needs Existence needs Relate dress needs Least concrete Most concrete Figure 2.3: Adelfers continuum of ERG needs. (Paul M.Muchinsky, 1993) Adelfers ERG theory is much simpler than Maslows theory, in that Adelfer specifies that there are only 3 types of needs, but that they are not necessarily activated in any specific order. Further, according to this theory any need may be activated at any time. The 3 needs specified by ERG theory are existence, relatedness, and growth. Existence needs These are material and are satisfied by environmental factors such as food, water, pay, fringe benefits, and working conditions. Relatedness needs These involve relationship with significant others, such as co-workers, superiors, subordinates, family and friends. Growth needs These involve the desire for unique personal development. They are met by developing whatever abilities and capabilities are important to the individual. Critics of the theory: ERG theory suggests that, although basic categories of need do exist, they are not exactly as specified by Maslow. The theory has not attracted as much attention as Maslow theory, but seems a reasonable modification of it. However, like Maslow theory it is potentially rather difficult to test (Furnham, 1992). 2.4.1.3 Hertzbergs two-factor theory According to the two factors theory, people have two major types of needs. The first of these Hertzberg called hygiene needs, which are influenced by the physical and psychological conditions in which people work. Hertzberg called the second set of needs motivator needs, and described them as being very similar to the higher order needs in Maslows (1954) need hierarchy theory. Hertzberg at al. (1959) claimed that different types of outcomes or rewards satisfied these two types of needs. Hygiene needs were said to be satisfied by hygiene factors or dissatisfiers, such as supervision, interpersonal relation, physical working conditions, salary, company policies and administrative practices, benefits and job security. When these factors are unfavorable, the job dissatisfaction is the result. Conversely, when hygiene factors are positive, such as when worker perceive that their pay is fair and that their working conditions are good, than barriers to job satisfaction are removed. However, the fulfillment of hygiene needs cannot by itself result in job satisfaction. Unlike hygiene needs, motivation needs are fulfilled by what Hertzberg et al. (1959) called motivator factors or satisfiers such as achievement, recognition, work itself, responsibility and advancement. According to the theory, the factors that lead to job satisfaction are those that satisfy an individuals need for self-actualization (self-fulfillment) in their work, and it is only from the performance of their task that individuals can enjoy the reward that will reinforce their aspirations. Compared to hygiene factors, which results in a neutral state (neither satisfied nor dissatisfied) when present, positive motivator factors result in job satisfaction. Critics of the theory: Attractive though the theory is, it has little empirical support. There is no doubt attributable to the fact that various methodological errors were introduced in the early theory-testing work. These included the real possibility that all the results were the result of classic attribution errors, such that personal failure is attributed externally (to hygiene factors) and success internally (to motivator factors). Secondly, the theory testing work was nearly all done on white-collar workers (accountants and engineers) who are hardly representive of the working population. 2.4.1.4 McClellands Achievement Motivation Theory The need for achievement underlies the higher levels of Maslows hierarchy and also one of Hertzbergs motivating factors. The importance of achievement is emphasised by Mc Lellands, who has developed a theory of motivation which is noted in culture. The work of Mc Lelland is based on the concept of 3 main sets of needs and socially developed motives: The need for Affiliation The need for Power; and The need for Achievement People possess all 3 needs but the relative intensity of affiliation, power and achievement varies among individuals and different occupations. (Laurie J. Mullins, 1992: 206) Those most interested in power seeks positions of control and influence, those for whom affiliation is most important seek pleasant relationship and enjoy helping others; achievement seekers want success, fear failure, are task oriented and self-reliant. These 3 needs are not mutually exclusive. Many people are well motivated by all 3, but invariably one area is predominant. The implication of the theory in practice are that managers can identify employees who are self-motivated, those who rely more on internal incentives and those who could increase their achievement drive through training. (Shaun Tyson et al, 2000: 15) Critics of the theory: Mc Lellands theory implies an individualistic approach to the motivation of staff. The behaviour and performance of work group is as important as for individual motivation. (Laurie J. Mullins, 1992:207) 2.4.2 Process theories 2.4.2.1 Equity theory Equity theories, borrowed by psychologists from economics (Adams 1965), views motivation from the perspective of the comparisons people make among themselves. It proposes that employees are motivated to maintain fair, or equitable, relationships among themselves and to change those relationships that are unfair or inequitable. Equity theory suggests that people make social comparison between themselves and others with respect to two variables-outcomes (benefits, rewards) and inputs (effort, ability). Outcomes refer to the things workers believe they and others get out of their jobs, including pay, fringe benefits or prestige. Inputs refer to the contribution employees believe they and others make to their jobs, including the amount of time worked, the amount of effort expended, the number of units produced, or the qualifications brought to the job. Not surprisingly, therefore workers may disagree about constitutes equity and inequity in the job. Equity is therefore a subjective, not objective, experience, which makes it more susceptible to being influenced by personality factors (Furnham 1992:139). Equity theory states that people compare their outcomes and inputs to those of others in the form of ratio. Specifically, they compare the ratio of their own outcomes and inputs to the ratio of other peoples outcomes and inputs, which can result in any of the 3 states: overpayment, underpayment, or equitable payment. Implication for managers: The management implications are two-fold: firstly that comparative pay and benefits between different groups, sections and levels in an organization, are a major source of motivation and demotivation; secondly, employees need to feel they are fairly dealt with -that they and their colleagues are rewarded equitably for their efforts. Critics of the theory: As one might expect, equity theory has its problems: how to deal with the concept of negative inputs; the point at which equity becomes inequity, and the belief that people prefer and value equity equality. Moreover, the theory is too individualistic. (John Arnold et al, 1995). 2.4.2.2 Reinforcement theory These theories, for there are many, specify how a history of past benefits (or punishments), or reinforcements, modify behaviour so that future benefits will be secured. The direct application of behavioral modification principles to the work situation claims to provide procedures by which human performance can be shaped and altered. At the centre of behaviour modification is the concept of reinforcement contingency: the rate of performance will increase when valued outcomes (reinforcers) are made contingent on the performance. It makes no difference to the theory what the person needs, expects, values or wants, although these factors may impact on the differential power or effect of each reward (and punishment). Furthermore, people perform certain work-related acts that are subject to reinforcement (or punishment and extinction) contingencies. People work with a certain degree of effectiveness, and when a particular behavior result in a reward (there is reinforcement contingency bet ween, say, payment and work efficiency), performance improves. Learning theorists assert that all behaviour is shaped and sustained through the action of contingent reinforcement; work-related behaviours are simply special examples of this more universal phenomenon. (Furnham, 1992). Reinforcement and learning theories are among the oldest in psychology. There has long been a debate concerning the usefulness or otherwise of punishment as a strategy. Problems such as resentment and sabotage may accompany a managers use of punishment (negative reinforcement) is usually not effective, since it suppresses rather than eliminate undesirable responses. They also noted the more quickly reinforcement is given after the response, the more effective it becomes. Implication for managers: Jablonsky and De Vries (1972) have suggested the following guidelines for applying operant conditioning as a motivating technique: Avoid using punishment as a primary means of obtaining desired performance Positively reinforce desired behaviour and ignore undesired behaviour if possible. Minimize the time-lag between response and reinforcement Apply positive reinforcement frequently on a variable ratio schedule Determine environmental factors that are considered positive and negative by individual Critics of the theory: Being very practically oriented, it is very unclear what managers should do to motivate their staff if they are followers of learning theory. Sensitively, subtly and discretely applied, it works well, but sophisticated workforce is sometimes hostile to it. (John Arnold et al, 1995). 2.4.2.3 Expectancy theory Expectancy theory asserts that people are mostly motivated to work when they expect they will be able to achieve and obtain the things they want from their jobs. Expectancy theory characterizes people as rational, logical and cognitive beings, who think about what they have to do to be rewarded and how much the reward means to them before they perform their jobs. Expectancy theory specifies that motivation is the result of 3 different types of beliefs cognitions that people have. These are known as: Expectancy- The belief that ones effort will result in performance Instrumentality The belief that ones performance will be rewarded Valence- The perceived value of the rewards to the recipient Employee may believe that a great deal of efforts will result in getting much accomplished, whereas others believe there are other occasions in which hard work will have little effects on how much gets done. It is possible that even if an employee works hard and performs at a high level, motivation may falter if that performance is not suitably rewarded by the organization-that is if the performance was not perceived as instrumental in bringing about the rewards. If behaviour is not explicitly rewarded, people are unlikely to repeat it. Furthermore, even if employees receive rewards based on their performance, they may be poorly motivated if those so-called rewards have a low valence to them. Porter and Lawler Over the years, Porter and Lawler (1968) adapted and expanded the theory. According to this model, job performance is a multiple combination of abilities and skills, effort and role perceptions. If individuals have clear role perceptions, if they possess the necessary skills and abilities, and if they are motivated to exert sufficient effort, the model suggests that they will perform well. Abilities and skills refer to both physical and psychological characteristics. Role perceptions refer to the clarity of the job description and to whether individuals know how to direct their efforts towards effectively completing the task. Those who have clear perceptions of their role perceptions apply their efforts where they will count, and perform correct behaviours. Those who have incorrect role perceptions tend to spend much of their time in unproductive efforts that do not contribute to effective job performance. Expectancy Expectancy Instrumentality Extrinsic outcome / reward Outcome / Reward Satisfaction Performance Effort Intrinsic outcome / reward Perceived equity of outcomes / rewards Job design, Organizational policies and practice Ability and traits, Role clarity organizational supports, etc Figure 2.4: Porter and Lawlers expanded expectancy model Source: Adapted from Porter and Lawler (1968) Implication for managers: Arnold et al. (1991:176) argues that, if expectancy theory were correct it would have important implications for managers wishing to ensure that employees were motivated to perform their work duties: They would need to ensure that all 3 of the following conditions were satisfied: Employees perceived that they possessed the necessary skills to do their jobs at least adequately (expectancy) Employees perceived that if they performed their jobs well, or at least adequately, they would be rewarded (instrumentality). Employees found the rewards offered for successful job performance attractive (valence). Critics of the theory: Although some specific aspects of the Expectancy theory have been supported (particularly the impact of expectancy and instrumentality on motivation), others have not (such as the contribution of valence to motivation, and the assumption that expectancy, instrumentality and valence are multiplied.) Arnold et al. (1991) note how little attention the theory pays in explaining why an individual values or does not value particular outcomes: no concept of need is involved to address this question. The theory proposes that people should ask someone how much they value something, but not bother about why they value it. (John Arnold et al, 1995) 2.4.2.4 Goal Setting Theory This approach to motivation was pioneered by Ed Loche and his associate, starting in the 1960s and continuing with increasing strength and sophistication ever since. The above figure represents goal setting theory, and shows that the characteristics of a goal and attitudes towards it are thought to be influences by incentives, self-perceptions and the manner in which goals are set. In turn, those goals characteristics and attitudes are thought to determine behavioural strategies, which lead to performance within the constraints of ability knowledge of results (also called feedback) is thought to be essential to further refinement of behavioural strategies. Goal Setting Theory Participation in goal setting (Self-perceived) ability Financial incentive Goal commitment Goal acceptance Goal difficulty Goal specification Direction Intensity Persistence Strategies Knowledge of results Ability Performance Figure 2.5 Goal Setting Theory Source: Adapted from Psychology of work Behaviour by F. Landy. Copyright  © 1989, 1985, 1980, 1976. Brooks / Cole Publishing Company, a division of International Thomson Publishing Inc. By permission of the publisher. What does research say about goal setting? Some further comments can be made on the basis of research evidence first financial incentives can indeed enhance performance. Loche et al. (1981) report that this occurs either through raising goal level, or through increasing commitment to a goal. Second, and unsurprisingly, ability also affects performance. Third, research on goal setting has been carried out in a range of context and fourth, goal setting is magnificently deal about how managers can enhance the performance of their employees. Some other research has directly investigated specific potential limitations of goal setting. Earley et al. (1989) suggested that goal setting may be harmful where a task in novel and where a considerable numbers of possible strategies are available to tackle it. It seems that when people are tackling unfamiliar and complex tasks, goal setting can induce them to pay much attention to task strategy and not enough to task performance itself. Goal setting could be criticized in its early days for being a technology rather than a theory. It successfully described how goal focus behaviour, without really addressing why or through what process goals influenced behaviour. Furthermore, goal setting, suggests that people are most motivated by difficult tasks where success is (presumably) not certain. A continuing issue in goal setting concerns participation. Locke et al. (1981) concluded that there was no evidence from published research that participation in goal setting by the person attempting to achieve the goal produced better performance than if the goal was assigned to him or her by someone else. Kanfer et al. (1994) got students to attempt a simulated air traffic control task and repeated the findings that goal setting can harm performance of unfamiliar complex tasks. But they also found that giving people time to reflect on their performance between repeated attempts at similar tasks eliminate that effect. The breaks enabled them to devote intentional resources to their strategies without having simultaneously to tackle the task itself. (John Arnold et al, 1998) 2.5 Job satisfaction and motivation Locke (1976) defined job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experience. The concept generally ref

Redbox Essay

I. Executive Summary Redbox Automated Retail LLC was started in 2002. It started out being an experiment, funded by McDonalds, with grocery style kiosks and DVD rental kiosks. Within the first year Redbox dropped the grocery side and capitalized fully on the automated DVD vending machine rental. In 2009, Redbox became a fully owned subsidiary of Coinstar. A strategic evaluation of Redbox’s internal strengths, weaknesses, opportunities and potential threats are the bases of this marketing plan. While Redbox exhibits non-traditional marketing venues, they have proved to be successful marketing channels. A strong focus is put upon Redbox in contracting with Verizon for the implementation of streaming movies, maintaining the low price for rentals, and the convenience of the kiosks for the busy consumer. II. Environmental Analysis Since Redbox was originally tried as a grocery and DVD rental kiosk, the transition into only the DVD rental market was relatively easy. Redbox is not only its business name; it is also its aesthetic view. It is a fully automated video and gaming rental venue that is all contained within a 12 foot square red box, hence the name. Redbox positions its kiosks in high-traffic areas like gas stations, grocery stores, and pharmacies. These are strategically placed for their intended target markets to have a one-stop shop on their way home from work. The idea behind it was to entice the customer to rent a movie at a store that they are frequently shopping at, without having to make another stop. A. The Marketing Environment 1. Competitive forces. Redbox is in a highly competitive market. They face competitors such as Netflix and Blockbuster. Redbox leads in a competitive stand out by offering quick, convenient and affordable movie rentals. A Blu-Ray movie rents for $1.50 per day and a regular DVD movie rental is $1.20 per day. The Redbox network is nationwide and offers more than 30,000 convenient locations. (4) Blockbuster Express recently joined the kiosk movie rental market which led them to be a direct competitor to Redbox. They also have a leg up on Netflix as Redbox doesn’t require monthly contracts, which is highly appealing to the casual movie viewer. 2. Economic forces. With the present state of the economy, Redbox flourished when the demand for cheaper movie rentals increased. When the Blockbuster brick-and-mortar stores were forced to close, Redbox rentals jumped up 28% from 2010 to 2011. (1) 3. Political forces. There are no foreseen political forces that can alter Redbox’s operations. 4. Legal and regulatory forces. There are several laws and regulations that Redbox should abide by. But with Redbox being in a self-serve kiosk, it can make some of these laws and regulations harder to enforce. The Motion Picture Association of America sets the ratings on movies, and no one under the age of 17 can rent a rated R movie. Redbox does require age verification before renting the R-rated movie(s). The Federal Copyright Act â€Å"governs how the copyrighted material, such as movies, may be used†. (2) A rented or purchased movie doesn’t issue the right to show the movie outside one’s home unless that site carries a license for public exhibition. The Video Privacy Protection Act â€Å"prevents disclosure of personally identifiable rental records† without the written consent of the consumer. (3) The Entertainment Merchants Association regulates the industry for renting DVD’s and/or video games. â€Å"They protect the right to sell, rent, and /or promote the sale and rental of entertainment products and content†. (5) 5. Technological forces. With technology always increasing and new products are always being introduced, Redbox will undoubtedly be affected by technological advances. Consumers’ interest in renting physical movies will be on a decline with companies like XFinity offering the ability to stream movies online and watch them on any screen. Hollywood studios are also putting tighter reigns on places like Redbox. They are trying to delay the rental time frame from when DVDs are released to when they are available for rental. By trying to do so, they believe that it allows the consumer a chance to buy the movie before it becomes available for rent. And the studios receive a higher cut off of sales verses rentals. 6. Sociocultural forces. Today’s fast-paced society allows for less leisure time. Consumers are looking for convenience and easy to use products. Redbox offers a convenient service that allows renters to be able to rent-and-return anywhere at any kiosk. Customers can also reserve a movie online or via mobile apps and pick up at the nearest Redbox location (4). B. Target Market(s) Redbox has three main target market segments, the casual viewer, the family viewer, and the non-web savvy person. For first target market segment, Redbox markets towards the casual viewer. They have a policy of no monthly contract fees unlike their competitor, Netflix, who enforces a monthly fee. The casual viewer doesn’t rent enough movies or games to justify the fee. The casual viewer appreciates the ease and convenience of the locations of the Redbox. While Blockbuster also targets the casual viewer, Redbox is more appealing due to the inexpensive cost to rent a movie. The second target segment is the family viewer. Redbox positions itself in convenient locations for the ease of renting for the busy mom or dad. They can stop off at the grocery store or gas station on the way home from work and also pick up entertainment for the whole family, without having to make another stop. And the third target segment is the non-web savvy person. Netflix requires the use of the Internet to be able to rent movies. For those who either don’t have the technology available or those who are insecure of using a bank account or credit card number online, Netflix is not appealing. And with the focus Netflix on streaming movies online, they are pushing aside the lower income bracket who can’t afford the technology or those who don’t understand the technological lingo required for the streaming usage. That is where Redbox steps in and will capitalize on such consumers. Consumers are being forced to move from the brick-and-mortar stores to another venue of renting movies. With Redbox’s kiosks being user friendly and convenient, many of those consumers are trending towards the use of kiosks. Also the opportunity is becoming available for Redbox to take those valued consumers who are technologically savvy and offer them the option to stream videos online. C. Current Marketing Objectives and Performance Redbox’s current marketing objectives are to drive performance. They want to continue to drive customer loyalty, continue to engage their customers and grow profitability. By engaging their customers, Redbox is always looking to make the rental process more efficient and effective. They have installed several technology upgrades into the kiosks that will shorten the rental time frame by 20-30 seconds. They are continuously working on the most convenient locations and placements of the kiosks to drive their performance and grow profitability. Since 2002, Redbox has at least doubled, if not tripled, their revenue for seven years in a row. They distribute over 37 million disks to their field employees to install in the kiosks per year. Thousands of kiosks are installed every year. They have been able to build the infrastructure of the business to grow with the changing times, to keep up with the customer demands, and to grow their customer base into loyal customers. III. SWOT Analysis A. Strengths 1. Over 30,000 convenient locations nationwide 2. No monthly membership fees 3. Rent-and-return anywhere policy 4. Offers cheaper rental prices, $1.20/night, than its competitors 5. Largest DVD-rental kiosks operator B. Weaknesses 1. Limited access to titles, mostly new releases, and the schedule of release date depends upon the studio, not Redbox 2. Increased costs for DVD acquisitions due to Warner’s discontinued relationship with Redbox (9) 3. Marketing communication channels rarely used 4. Only accepts Debit or Credit Cards for methods of payment 5. Lacking web management in monitoring code sharing websites that allows for free rentals C. Opportunities 1. Tap into the market of streaming movies online 2. Now offers video game rentals at a relatively cheap price, $2/night 3. Mobile applications for IPhone and Droid for yet another ease of renting 4. $7 billion industry, in 2011, according to IBIS World D. Threats 1. Stiff competition with Netflix, Blockbuster Express, and Amazon 2. Websites like Hulu offering movies free of charge via the internet 3. Strained relationship with Warner Brothers by not accepting their terms of a 56 day waiting period to release new releases, resulting in increased costs for Redbox acquiring Warner Brother films (9) 4. Movie studio lawsuits stating they were only making 60 cents on new release movie rentals from Redbox, whereas they make $17 per sale of DVD at Wal-Mart. (9) IV. Marketing Objectives Unlike their major competitor Netflix, Redbox is not a big advertiser. Redbox mainly uses its internet website, in store cross-promotions, and their strategic placement of their red kiosks. On www.redbox.com, they showcase their movie and video game inventory and all their locations of their kiosks. One can also reserve the movies or games on the website and pick it up at the nearest kiosk location. It is a very simple, yet effective website. Redbox uses the placement of their eye-catching, red colored box as part of their marketing campaigns. They are strategically placed in high traffic areas and four wall stores. CFO Scott Di Valerio states that â€Å"Coinstar wants to be the leader of automated retail†. (14) Redbox also uses in store cross-promotions. Take the Orville Redenbacher’s promo, for example, on special marked popcorn boxes; there is a promo code for two free Redbox rentals, a coupon for a free 2-liter bottle of soda and a coupon for Orville’s poppycock popcorn. (15) Everyone associates movies and popcorn together so by running this cross-promotion, it brings new customers to Redbox and be able to experience the ease and convenience of usage. It has made family movie night just a little better. V. Marketing Strategies A. Target Market(s) Redbox uses the strategy â€Å"Think big, start small, scale fast.† All of the opportunities that Redbox reviews and pursues are in big spaces. They also look at new ventures who can realistically reach $100million in revenue in an allotted time frame. But before those big opportunities can be obtained, they need to start small. They believe in the right environment, which includes a small team, a few resources and time to hash over the details, so they can get to a point to accurately scale each venture. When that point is reached, Gregg Kaplan, Constar’s COO, says â€Å"It’s like unleashing the wonderful benefit that Redbox and Coinstar teams and the full organization can take against these opportunities.† (6) Redbox are placing more kiosks in more convenient places in hoping to increase more brand awareness, which is especially critical since they don’t spend much on advertising means. Mobile applications for iPhone and Droid are becoming intensely popular. The application will display a map of all the kiosks available in the area and also allows the viewing of what DVDs that kiosk has available. One can also reserve the movie via the mobile application and pick up at the nearest kiosk. B. Marketing Mix 1. Product. Redbox is the leader in DVD rentals, renting more than 1.5 billion discs to date, in over 30,000 locations. They boast on the fact that Redbox kiosks are available, within a five minute drive, to more than 68% of Americans. (4) And their rent-and-return anywhere policy makes Redbox an undisputable convenient place to rent moves. It is also possible to purchase the DVD at the kiosks or online at Redbox.com. 2. Price. The price to rent a DVD from a Redbox kiosk is astronomically cheap. It costs $1.20 to rent movies, including new releases, and $2.00 for video games. The rental period lasts until 9pm the night following the rental purchase. For each additional day you keep the movie, you are charged the rental fee plus tax per day. If you happen to hold the DVD for 20 days, you are charged $24 plus tax, $34.50 for Blu-Rays, or $60 for video games and the disc becomes yours. (4) These cheap prices have caused a strained relationship with the movie studios in Hollywood. They only earn $.60 per movie rental, where as they earn $17 per DVD sale, no matter the selling price. 3. Distribution. Redbox installs their kiosks in convenient, easy to access places, such as grocery stores, drug stores, restaurants, convenience stores, and large retailers like Wal-Mart. According to Coinstar’s 2011 10-K report, they have 35,400 kiosks available nationwide, each holding about 630 disks. (11) They are available in every state, including Puerto Rico. The kiosk is like the traditional brick-and-mortar video rental store, but only occupies up 12 square feet. Consumers access the movie database via a touch screen, make their selection(s), swipe their credit/debit card, and receive the DVD or video game(s). It is meant to be a quick, efficient and fully automated rental process. The kiosk scans the bar codes of the movies or games to keep track of its inventory. Bar code scanning allows them to track the rentals and the returns easily, especially when they offer the rent-and-return anywhere policy. 4. Promotion. Redbox sends promo codes to individuals who have signed up to receive emails. They also send promo codes via text messages. Those test messages results in a free rental once per month. Another promo Redbox offers are gift cards via email that gives the recipient a code for a free rental. In 2009, Redbox added a free mobile application for iPhone users and in 2011 they made the application available for Android users. The application allows users to sort through the available titles, find a kiosk location, and reserve a movie all from a smartphone.

Strengths And Strengths Of Leadership Essay - 1180 Words

Strengths Quest Theological Reflection Should psychologists and counselors focus on what is right or wrong with a person? The strengths theory is used to identify individual strengths - or what is right - in a person so he or she can accentuate and develop those strengths. This theory is developed on the principle of positive psychology, and basically studies what is right in a person rather than what is wrong with a person. Psychologists created this theory after studying top achievers. Top achievers â€Å"Fully recognize their talents and build on them to develop their strengths, †¦ apply their greatest talents in roles that best suit them, †¦ and invent ways to apply their greatest talents to their achievement task.† (Clifton, Anderson, Schreiner, 2006) While the strengths theory accentuates the positives or strengths in a person, attention must still be given to addressing weaknesses for developing and maturing an individual. God created each person with unique abilities and purpose. God uses our weakness to draw us to himself, and our strengths help us to effectively fulfill his plans for our lives. Scripture provides many examples of people God used throughout time with weaknesses and strengths. Weakness can be used in an individual as a catalyst to grasp God’s strength. Paul, an apostle of God, had a weakness or an infirmity. He was not a perfect human, but admitted humbly that he constantly needed God. As Paul said in 1 Corinthians 2:3-5, â€Å"I was with you in weakness,Show MoreRelatedStrengths And Strengths Of Leadership1620 Words   |  7 Pages Strengths The Strengths Based Leadership assessment identified five strengths that describes my leadership skills: responsibility, relator, woo, communication, and futuristic. The dictionary defines responsibility as being answerable for all things within one’s control. 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