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Much of the lab's work was only tenuously connected with the company's business... When scientists joined the lab, they were told "Just work in this or that area. If you work hard enough, we're sure you'll find something"'. The results of this approach were: (a) (b) The research laboratory was largely cut off from development centres. Much research never found commercial application. As part of Nestlé's wider reorganisation, which restructured the business into strategic business units (SBUs), formal links were established between R&D and the SBUs.

Key term The marketing mix is the set of controllable variables and their levels that an organisation uses to influence the target market. These variables are product, price, place and promotion and are known as the 4Ps. There is thus a balance to be achieved between organisational capacity and customer requirements. This balance is expressed in the marketing mix, which is the framework in which the customer and the business deal with each other. Product Customer buys satisfaction Price Place Promotion Organisation sells product Product The product element of the marketing mix is what is being sold, whether this be widgets, power stations, haircuts, holidays or financial advice.

These topics are all covered in Part F of the Study Text. 4 The HR plan FAST FORWARD HRM planning should be based on the organisation's strategic planning processes, with relation to analysis of the labour market, forecasting of the external supply and internal demand for labour, job analysis and plan implementation. Human resource planning concerns the acquisition, utilisation, improvement and return of an enterprise's human resources. Human resource planning deals with: x x x x Recruitment Retention (company loyalty, to retain skills and reduce staff turnover) Downsizing (reducing staff numbers) Training and retraining to enhance the skills base The process of human resources planning 1.

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