1 INTRODUCTION
According to Cornelissen Joep(2008 p. 5), a likely characteristic of corporate communication is the fact that it can turn out to be complex in nature. For small-medium firms, communication complexity is quite minimal but with large corporations, if due care is not taken, communication can change out to be cumbersome. Cornelissen J. (2008, p. 95) also states that managing corporate communication takes a communication strategy that describes the general image that an organisation aims to project through themed messaging to stakeholders. Because of this complexity, this report will try to provide insights and explore the organization communication strategy of Next Plc.
A Proquest(2011) report tells of challenges faced by Next in the four year period to 2009 therefore of laxity over its positioning and recession. By the time it realized that trends were changing, it had lost grounds. The targeted young customers were maturing and reduced their spending due to additional responsibilities. Erosion of its brand due to over-diversification was another issue. Next has lost ground since 2005 but appears to be emerging now from the underperformance period in line with the graph below:
An industry expert, Raoul Shah, CEO of Exposure evoked that Next should develop a higher brand profile and image and senior executives need to plan new communication strategies, become more visible in the media, give more interviews and build deeper relationships with customers and stakeholders. (Proquest, n. d). Essentially there should be a corporate identity management in place.
This report will seek to investigate the organization communication strategy of NEXT Plc in relation to its stakeholder management, Corporate image and identity, its Human resource management among others. These will be performed through research, suggestions and conclusions will be made based on findings from the business website, articles on the business and its industry, journals, their gross annual reports and other relevant materials.
2 FINDINGS
2. 1 What is Corporate Communications?
Corporate communication is the power associated with an organisation to effectively communicate to its stakeholders. This definition provides general overview or knowledge of what corporate communication is approximately. Looking into a more complex and detailed definition, corporate communications would then be defined as:
an instrument of management by means of which all consciously used kinds of internal and external communication are harmonised as effectively and proficiently as possible, in order to produce a favourable basis for relationships with groups after that your company would depend. (Van Riel, 1995, p. 26)
Van Riel(1995) supports Aberg (1990) that communication activities within an organisation must be integrated to be able to support the achievement of the organisation's aims and goals. This is where care must be studied so to handle communication complexity effectively and efficiently. It really is about the reputation of the organisation, people having the ability to identify with the organisation and about the formal systems of communication at the best level.
Please see Appendix 1 and 2 for a brief history and timeline of Next Plc.
2. 2 Image Identity and Reputation
Image is the picture associated with an organisation as perceived by target groups while identity is associated with the way in which a company presents itself to the mark groups, through symbols, communication and behaviour(van Riel, 1992). Argenti (2007) also states that image is a reflection of an organisation's identity. These definitions shed light on the fact that there is but a thin line between image and identity as the former sees from the exterior while the latter projects from the inside. It was reported that Next was breaching regulations by billing customers for delivery costs even if they return goods within seven business days. This might have damaged Next's corporate image, but the company's executives were quick to provide apologies to redeem its image. (BBC Business News, July 2010). According to Richard R. Dolphin(1999), people learn to identify with a firm by noting everything it can.
In terms of image, whether a customer chooses to visit a Next retail store, use another Directory or go to the Next website, the effectiveness of the brand continues to be the most powerful attraction and a consistency of design, quality and value their customers know they can trust. To support this, Richard R. Dolphin (1999) says organizations talk to the ones that they perceive as stakeholders because they desire an increased awareness, understanding and appreciation of these identity and their core beliefs as well as of their products and their services. Next comes with an outstanding record of achievement therefore of continued success of ground breaking shopping concept. Next's distinctive styling and exclusive designs have given it a solid brand image which remains their greatest asset.
George Davies, a retail entrepreneur, believed in the 80s that tailored jacket could establish Next, so long as it represented fantastic value for the purchase price and high quality (identity). This was their brand positioning at that time. In February 1982 Next opened its first seven shops and the sales were two and-a-half times what the business had originally estimated. Davies found a ready market for his merchandise(as customers could actually identify with the positioning) providing what he called "affordable collectables", which represented good design at reasonable prices(image). (Fashion encyclopedia)
Next could supply the public a much better product in conditions of these expectation of quality at the purchase price point.
Also, Next logo has been changed from time to time in terms of the use of upper and lower case letters and also background colour probably as a brand repositioning strategy. Even the name Next' suggests something to anticipate which essentially says a lot about how exactly the business wants to be perceived or situated in the minds of its customers hence translating into the image as conceived in the minds of its various stakeholders which over an interval of consistency earns the company a reputation. This relationship is supported with Argenti's Reputation framework (figure 1. 2).
2. 3 Management of stakeholders
Cornelissen J. (2008, p. 42) defines a stakeholder as any group or person that can affect or is afflicted by the achievement of the organisation's purpose and objectives. Next addresses environmental, social, ethical and business related impacts on its stakeholders as a way of managing and bringing value to them. (Next website)
NEXT has a strategy of addressing the problem of the organisation's reputation as there are different expectations from different stakeholders. The Board at Next represents and promotes its shareholders' interests. The Board gives account of the performance and activities of the Group and then communicates this using its shareholders with regards to the business activities. (Ezine Articles 2009). The company recognizes a need to address every kind of stakeholder it offers.
Next adopts and implements a code of conduct that offers benefits for its workers across the globe where means it fulfils its responsibility to uphold international labour laws with its suppliers. The business sources the merchandise it sells from many countries throughout the world. It recognizes the responsibility it must work closely using its global suppliers, which is committed to ensuring its products are created in a clean and safe environment, relative to all relevant local and national laws and legislation, and by staff who are treated with respect and paid fairly for the work they certainly. (Nextplc. co. uk).
Every company has got its own known reasons for being running a business. For reasons uknown for which an enterprise might maintain existence, it must consider its responsibility to the environment where it trades which include its stakeholders (Government, shareholders/investors, suppliers, customers, etc) and the entire world at large.
Please make reference to the bibliography for a full statement of Corporate responsibility from Next and how it relates with each band of stakeholders.
2. 4 Role of Culture
According to Tourish and Hargie (2004), culture can be defined as a collective (for example society, organisation, group or sub-group) interpreted for its sense of social integration, differentiation, and fragmentation. It is the culture of Next to have the interest of its people(including stakeholders) at the centre of its business.
As a result, the business had its business strategy implemented within an authentic organisational culture and continuous investment in its employees. This in essence gives employees a feeling of security and loyalty towards organisation and essentially help relax the energy distance(Hofstede's power distance) between employees and their bosses. A multi-national organisation such as Next, by reasons of its geographical dispersion will continue to work with and employ people from diverse cultures, hence the need to have got a sensitive communication strategy. Cornelissen J. (2008, p. 71) describes an organisation's culture as the values as felt and shared by all employees of the organisation. For example, to contain the situation of cultural variations and language in its countries of operation, Next has a multi-lingual website because of its online home-shopping, Next Directory. That is a good part of the right direction in terms of communication strategy.
With regards to Hofstede's idea of individualism, Next plc supports collectivism rather than individualism. It encourages employees to be integrated to a single corporate group rather than individual groups. It has in place an exercise and development team which designs and implements interventions to operate a vehicle forward the fun, fair and rewarding culture of working together.
2. 5 Role of Technology
According to Tourish and Hargie (2004), a torrent lately resulting from the surging river of technology is an integral feature of the organisational landscape. Technology has shown to be very dynamic in nature and for an organisation that wants to reach and connect with a the greater part of its stakeholders or even expand its customer base in a competitive world, it must also be technologically pro-active. Tourish and Hargie (2004, p. 74) supports the views of Clampitt and Downs()993) and Hargie and Tourish(2000), that communication has been at the centre of successful organisations, causing a challenge to create a communication system that is efficient and effective as it pertains to addressing the needs of its customers and external and internal stakeholders.
Internet popularity and new media reception offers enormous opportunities for NEXT to improve its communication strategy. According to Tourish and Hargie (2004, p. 74), technology alone does not solve problems, it only offers opportunities so that it must match already existing communication strategy. Next increased its customer base to over 2 million with the launch of the Next Directory internet shopping in 1999. The website also offers multi-lingual features which really helps to translate to other languages to assist user friendliness. This plan can help Next to influence its customer behaviour. Next is a people oriented organization. Even employees may have instant access to senior managers via their e-mail address, which essentially reduces power distance as Hofstede's cultural dimension illustrates.
2. 6 Human Resource Management
Beardwell et al (2004, p. 6) supports Legge(1995) that the analysis of HRM in conditions of style has revolved around whether it can be thought to be hard or soft. Soft HRM according to him is often viewed as developmental humanism' in which the individual integrates into a process of work that values trust, communication and commitment while Hard HRM emphasizes cost minimization strategies. In regards to to the Soft HRM, NEXT employs over 58000 people and sees its employees as valuable assets to the organization and is committed to their development by giving an operating environment where they can to achieve their full potential and accessing opportunities for both personal and professional development. (Nextplc. co. uk). Next's recruitment is performed online via the HR department.
Next's human resource approach is an assortment of both the Hard and Soft approaches in line with McKinsey's 7S model(pictured above). Employees enjoy a world of support and respect, fair treatment, paid attention to, welfare and motivated to accomplish their full potential, which is the core of its human resource management. Next applies the soft approach of recruitment policies, development and training of employees which is also focused on investment of your time and resource for support, engagement and motivation of employees to feel valued, developing rewarding careers and want to stay with the company. There are reward systems for employee motivation as a difficult approach. As the business continues to develop, Next realizes that effective and committed employees will continue delivering excellent quality products and services to its customers. This suggests an output-based' HRM. Ulrich's model of HRM can be substantiated with Next in that, the majority of its top people (executives and non-executives alike ) have been with the company for many years and this is because Next makes its employees feel valued thereby gaining their loyalty plus they, over the years, work through the four roles till they become strategic partners.
The Harvard HRM framework as developed by Beer et al(1984) explains that every organization must recognise all sets of stakeholders. The majority of Next's success can be attributed to its business strategy infused with stakeholder centred HRM strategy that can be confirmed using its statement of social responsibility. (Appendix 3)
2. 7 Corporate Governance
An enforced and well defined corporate governance provides a structure that works for the benefit of everyone concerned(at least in theory), by making certain the enterprise adheres to formal laws, best practices and to accepted ethical standards.
Next offers various committees and officers overseeing its many sections in order to ensure smooth running and effective corporate communication flow. Figure 1. 3 below further explains the overall order or structure of corporate governance which also explains that of Next Plc. Next has a four-member audit committee which reviews the risk management process thereby refering significant risk issues to the Board for consideration. Next Board is accountable for major policy decisions whilst delegating more detailed matters to its committees and officers including the Chief Executive. (Next Plc, Corporate Governance). The Board at Next represents and promotes the interests of shareholders (Ezine Articles, n. d) and also other arms like the HR and PR departments are there to help ensure communication strategies are effectively implemented.
3 Conclusions and Recommendations
In conclusion, the organization has to be sustained and successful so effective corporate communication strategy is very essential in tackling its communication challenges. As a result of the unpredictable nature and diversity of stakeholders, drawing up a corporate communication strategy can certainly be very challenging. Sometimes stakeholders still lack commitment to an organization no matter how the organization tries to keep them informed or involved. The management of Next Plc had trivialised this important fact and went on playing on the customers intelligence by breaking consumer law in failing woefully to refund delivery charges on goods bought online even when returned within seven days. The media got a your hands on this activity and then made it public. This singular act will make it problematic for Next to attain its own objectives using its stakeholders. The result than it was damaging on the business's image and reputation but the management was quick to offer apologies with their customers before any further damages could be made. .
Also with the concept of cultural division, Next as a multi-national organization employs and works together with folks of diverse cultural orientations and backgrounds who sometimes may see different meanings to the same words or statements. Multi-national companies might not always be able to adjust to all the cultural dissimilarities and at the same time maintain consistency in portraying their corporate culture nevertheless they would have to make strategies that inculcate cultural common grounds. It really is sometimes difficult selecting the correct channels as well. For example, Next plc has a multilingual website, though not all languages are included. This also poses challenging as some cultures might feel overlooked. Next Plc is committed to abiding by regulations in countries where it operates. Changes in regulations of different countries are also unpredictable as the majority of the times they may run counter to a organization's strategic interest. These changes sometimes create difficulty in maintaining its performance culture; because of this it is confident but cautious at the same time.
Against all odds of adverse circumstances and social rethinking, Next has continually moved forward the high standards of quality and processes of improvement using its keen minds. Thereby managing communication complexities arising with regards to it stakeholders. Hence, its ability to synchronise image, identity, reputation and human resource management.
