British Aerospace experience features in new report

Citation

(1998), "British Aerospace experience features in new report", Aircraft Engineering and Aerospace Technology, Vol. 70 No. 6. https://doi.org/10.1108/aeat.1998.12770faf.002

British Aerospace experience features in new report

British Aerospace experience features in new report

Keywords British Aerospace, Customers

Five out of six companies are failing to make as much profit as they could from their strategic customers and key accounts, says a new report.

Developing Strategic Customers and Key Accounts ... The Critical Success Factors finds that only 16 per cent of 194 companies ­ 50 from the engineering, electronics and IT industries ­ with a combined turnover of £70 billion, are "very effective" at increasing profitability through "strategic relationships".

Even though the companies relied on strategic customers for 70 per cent of their business ­ about £49 billion-worth a year ­ only 13 per cent were "very effective" at using their relationships to achieve broader business benefits, such as increasing market share, generating growth and improving customer satisfaction.

The report includes a detailed case study showing how British Aerospace Military Aircraft and Aerostructures involves its senior managers, including chairman Sir Richard Evans, in developing strategic customers such as the Ministry of Defence or Saudi Arabia.

The case study shows how senior managers in areas as diverse as finance and manufacturing play a key role in strategic customer development. It reveals that British Aerospace increasingly emphasises partnerships rather than prime contractor and sub-contractor relationships.

Developing Strategic Customers and Key Accounts finds that most effective companies perform better at a whole range of management activities including selecting strategic customers, growing key accounts and locking out the competition.

Author John Hutcomb, a management consultant, says: "Companies that are most effective at developing strategic customer relationships spend more time and effort thinking about their customers' profiles, direction and future needs than the least effective".

"But they spend relatively less time and effort considering how their strategic customers will benefit themselves as suppliers. Our research suggests that these two facts are at the heart of why some companies are more effective at developing strategic customers and key accounts than others."

Developing Strategic Customers and Key Accounts finds that the most important issue for the future is the growth of partnering. But companies are also concerned about the spread of electronic commerce and the steady reduction in the numbers of suppliers.

Developing Strategic Customers and Key Accounts ... The Critical Success Factors (239 pages) is published by Policy Publications in association with the University of Luton and Marketing Business, the magazine for The Chartered Institute of Marketing, price £395.00. It is available from Policy Publications, 4 The Crescent, Bedford MK40 2RU. Tel: +44 (0) 1234 328448. Fax: +44 (0) 1234 357231. E-mail: policypubs@kbnet.co.uk