1. ) the similarities and b) the differences between the two theories. Support your answer with out of the case examples. 


I would like to discuss Taylor’s theory and Maslow’s theory for comparison purpose. Taylor’s Theory is based on the motivation of employees only through monitory rewards. More a worker will produce, more it will be rewarded. The early adopters of this theory were Ford Corporation which increased their production drastically, reduced cost and thus improved overall efficiency by an implementation of piece rate theory.

Maslow’s theory also addresses basic needs like physiological needs and safety needs but it is a step ahead while covering other aspects of human being like social belongingness, self-esteem, and self-actualization. An example of the implementation of this theory is Starbucks Corporation which is popular retail coffee shops in the world. The secret of its popularity is not only the taste but also customer service.

Point of similarities

  1. Both theories address the basic needs of human beings to be met through monitory rewards.
  2. Both increase efficiency and decrease cost of production
  3. Both theories do not discuss the effects of teamwork, conditions at a workplace and other points of satisfaction like flexible hours, job breaks or dissatisfaction at work place like autocracy.

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Point of Dissimilarities

  1. Taylors’ theory is basic in nature and only address one need of human being i.e. physiological needs, while other needs like safety, self-esteem, and self-actualization are not discussed which are discussed in detail by Maslow.
  2. Taylor’s theory is applicable in mass production industry where the work can be divided into small parts. It is mostly applicable only on the lower level workforce. While Maslow’s theory is applicable to all level of management and in production as well as service industry.
  3. Taylor’s theory is efficient in the short run while Maslow’s theory is beneficial both for short run and long run. As no doubt, the monitory benefit will initially motivate the worker to produce more but in long run, there are chances of an employee being de-motivated due to no career progression or no job rotation.


  1. Describe (at least 3) benefits to an organization of having a motivated workforce. (15 marks, 300 words).

There is the number of benefits of having a motivated workforce, few of them are as follows.

Efficiency in overall productivity

Motivated employees do their job in a better way and try to search for a better option, come up with ideas and take ownership and responsibility of what they do. As a result, there is an increase in production but also it controls avoidable costs. The cost per unit reduces while, the overall efficiency increases. Motivation is a tool in the work place which can lead to employees working at their most efficient levels of production. The motivation approach is much better than push approach or threat approach, where people do their job under fear and quit as soon as they find another opportunity.

Quality of products and services

Motivation leads to better quality of products, as people perform their jobs with due diligence and at their own will. This would obviously result in better quality of work. It is applicable in both mass production work and service industry. It is also helpful in creative and artistic work. According to the Research, motivated employees feel happy at work place, are more satisfied with the work they do and also are more loyal to the organization as well as to their work. They are more energetic and work with more passion. This in turn results in more utilization of their abilities at work and quality of work improves to a great extent.


Achievement of the organizational goal

Workers feel like part of the organization and take organization’s goals like their own. They make sincere efforts for the achievement of goals set by an organization and there are more chances to achieve the set goals.

Job Satisfaction

Motivation gives job satisfaction to employees of an organization. They feel happy working for contributing their services to the corporation. The chances of strikes reduce, the further implication of new policies are no more hurdle in the organization where workers are motivated.

  1. Evaluate the benefits to organizations of using different motivation approaches. (15 marks, 500 words).


Advantages of Piece rate approach

The main advantage of this system is to provide incentives to those workers how are more efficient and are highly productive. It provides better financial rewards which motivate not only those employees but also becomes the source of motivation of average workers. The piece meal rate is suitable for industries which mainly focus on production. The system is applicable in most of the industrial units to some extent with little variations. It has shown an increase in production to great extent. The system is simple to understand and easy to calculate. The worker can easily judge what they are producing what would be its reward. On the other hand, the system also penalizes the workers whose performance is below average.

Advantages of Maslow’s Approach

Maslow’s approach helps in determining the different needs of people in the organization. As at different level of employment, the needs of employees are different which need to be addressed for the motivation of employees. Since the needs of employees fulfilled according to the required level, therefore, the chances of an employee being satisfied are more resultantly, they feel more motivated towards employment. The approach also determines different rewards for different employees after judging at what level in a hierarchy of need an employee stands. Through fulfillment of needs like self-esteem and self-actualization, the hidden potential of employees is recognized. People take more responsibility for work. They own what they do and do work with whole heartedly; therefore the chances of error are reduced

Advantages of Mayo’s Approach

There is improved communication between different departments of the organization and there exist cohesiveness towards achievement in overall all objective of the organization. As per Mayo’s approach, better communication between management and workers and among the workers result in better understanding of each other job responsibility and the problems faced by the others. Further, the employees feel more relaxed when their personal problems and that of a workplace are resolved.  More the employees are satisfied more they would be motivated towards work. Another important factor is that due to better understanding and improved communication between workers, they are more willing to work in a team which while working together produce better results for the organization.

Advantages of Herzberg approach

It helps management to decide the right person for the right job so that the abilities of each individual can be utilized properly. A person who got better skills should be given more responsibility and he should be reward accordingly. Further, if there is no possibility of further progress in the same job then the skilled employee should be shifted to other places of his level. If it is not done then there are chances that the employee will be unsatisfied and the motivation level will be lower. Further, the approach also guides and organization to make improvement in working conditions. The safety health and environment conditions also promote better motivation in employees. A better time schedule can also be effective in increasing the motivation level in employees. Under this approach, a company can increase motivation by adopting flexible hours for its employees.

  1. Using an example known to you, analyze the four main elements of its marketing mix. (12 marks, 400 words)

I would like to discuss Ford Taurus for discussion of the marketing mix. The Ford Motor Company, industry leader based in Dearborn which produces automobiles across the world. With the workforce of about 163,000 employees and about 68 plants around the world, it declared net income of $ 6.6 billion in Financial Accounts of 2010.It launched 24 new products in last year and has increased its global presence by increasing its market share in China and India in recent time.



The product is the goods or services or a combination of both, which is offered by a company for its target market. The product mix explains the core characters of the products offered for sale that meets the needs of the potential customers. Ford offers Taurus style which comes in different colors and dozens of optional features. The car comes fully serviced along with warranty, even tailpipe is covered.



Pricing of a product is a difficult task. The price of a product should match with the value perceived by the customer. It depends on many factors like cost of production, profit margin required, prevailing price in the market of the similar product, target market and already exiting image of brand & company. Ford calculates and suggests prices to its dealers. But most of the time dealers have to negotiate the price with the customers, provides credit to keep in view the value perceived by the customer. The current Taurus is priced above $25,000 to meet the cost of production, challenges faced by the auto industry, providing value to its target market.


Promotion activities mean the act of communicating the features of the product and attracting the customer to purchase that product or service. Ford spends $700 million for advertisement of its products (for above the line promotion). On the other hand, the dealer of Ford explains to the customers that Ford is the right choice for them. They also persuade customers to buy Ford at competitive rates, also offer low financing costs and sometimes provides additional purchase benefits.


The place is the position where the company puts its product or service to be made available to their potential customers. Ford deals with independently owned dealership networks; however, the dealers are carefully selected. The dealers are required to maintain minimum inventory level and other spare parts as per requirements. Ford has provided detail of detail of dealership network on the internet to facilitate its customers.

  1. Analyze the following sentence from the case: “The demand for sportswear and casual clothing is more likely to be price sensitive”. 


The sentence mentioned above refers to the law of economics which relates to the effects of demand due to the variation of prices. The change in demand due to increase or decrease in price is called price elasticity of demand. The effects on demand vary from product to product and from situation to situation. The goods and services are inelastic in nature. It means it does not change much with the change of prices for example price of fuel or bread. Whatever, the price may be, people have to buy necessities of life. Normally, the government controls the price of these commodities and there are fewer margins in it. In most of the instances, the seller has to charge prevailing market prices as regulated by the government.

The prices of luxury goods like branded products like the one quoted in case study have more elasticity and it is directly related to change of prices. The target market of the luxury or branded products is the high-end users how can spend more. However, due to the major increase in prices, they stop buying and look for alternate options which may satisfy there needs. The availability of alternate options also plays an important role. If the buyer feels equally satisfied with the alternate product then the demand due to price would be highly elastic.

The sensitivity of demand also based on the time duration. If the change is for a short term of a period the elasticity would be high. On the other hand, if the change is of a permanent nature the elasticity would be lower. For example, Ford reduces its prices of a vehicle by 40% for the month of December only. There is a chance of high demand during this month. While it the price is permanently reduced it may not attract many customers in the first month.


  1. Evaluate why organizations like JD use the marketing mix to position their products within the minds of consumers of their products. (18 marks, 500 words)


An organization like JD uses marketing mix to have a proper understanding of their customers. It has to know customers requirements and provide value for money in the eyes of the customer. It provides products in the access of its buyers and persuading them to buy on competitive offer. While they use marketing product mix they try to ask the following question to be addressed.


·         What is the expectation of a customer from the product/service? A pair of shoes required having fashionable look and also comfortable and durable.

·         What kind of need of customer our product will satisfy? The shoe would be required for routine use and casual day wear.

  • Is cost of anything is included which the customer might not use? The product is designed for the particular needs of a customer.
  • How the customer will use the product? The shoes would be used by high-end users for sports fashion and casual wear.
  • What should be its color, shape, and size? Different sizes, colors, and design according to the research of their own. It also provides branded products like Adidas and Nike.
  • What should be the product name? Different shoes are given the different name which is easy to understand and easy to link with the product.
  • What is the point of difference from other competitors, it provides specially designed products which are only available from JD stores and would not be available from any other retail outlets.


  • Where is the potential market and where buyers are likely to search for our products? Buyer can search in high streets, shopping centers and even on the internet.
  • Where to place the product should we go online as well? As the product is targeted at high-end users, it should be placed at well-known stores, high streets. Also, it should be available through e-commerce.
  • What is the proper distribution channel for the product? JD is operating with more than 500 stores. The shoes are being sold at well-crafted stores which are design to perfection. This creates a sense of perfection for the product as well. It opens stores in new locations to increase its customer base.


  • What is the value of a product in the eyes of the customer? JD always tries to create the high value of their products and customer feel like paying less for high value for whatever price they charge.
  • What is the level of price elasticity? The price elasticity of demand is normally high in this kind of industry. JD cannot charge higher than its competitors of similar goods. However, it has a cushion of charging prices of the products which are only available at their store.


  • How to communicate our market message to the target market? JD uses billboards, TV ads, personal contacts with customers.
  • What would be the best time to promote our products? The new promotions are normally offered before the sports season and before Christmas.
  • Howe competitors promote their products? The other competitors also promote during the same season, therefore, in order to be distinguished, JD has to work hard.


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