Company D is a plumbing, heating and air-conditioning company. The company has a simple but powerful strategy. The main goal of the company is their customer satisfaction. The firm offers 24 hours service for 7 days a week with no extra charges. Company D guarantees price for their work and offers guarantee for all parts for a year. The company does not charge for travel. The company highly concentrates on customer satisfaction rather than wealth creation. The company does selective hiring, training and education, performance and compensation to concentrate on customer satisfaction. The company charges premium price but has high customer response due to the promised value. The revenue has increased from $200,000 to $3.3 million. To determine: How should the areas of company D support its product strategy.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 2CS

Summary Introduction

Case summary:

Company D is a plumbing, heating and air-conditioning company. The company has a simple but powerful strategy. The main goal of the company is their customer satisfaction. The firm offers 24 hours service for 7 days a week with no extra charges.

Company D guarantees price for their work and offers guarantee for all parts for a year. The company does not charge for travel. The company highly concentrates on customer satisfaction rather than wealth creation.

The company does selective hiring, training and education, performance and compensation to concentrate on customer satisfaction. The company charges premium price but has high customer response due to the promised value. The revenue has increased from $200,000 to $3.3 million.

To determine: How should the areas of company D support its product strategy.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

“Implementing a Performance Management Communication Plan at Accounting, Inc.” Evaluate Accounting Inc.’s communication plan. Specifically, does it answer all of the questions that a good communication plan should answer? Which questions are left unanswered? How would you provide answers to the unanswered questions? “Implementing an Appeals Process at Accounting, Inc.” If you were to design an appeals process to handle these complaints well, what would be the appeal process? Describe the recommended process and why.

The annual demand for water bottles at Mega Stores is 500 units, with an ordering cost of Rs. 200 per order. If the annual inventory holding cost is estimated to be 20%. of unit cost, how frequently should he replenish his stocks? Further, suppose the supplier offers him a discount on bulk ordering as given below. Can the manager reduce his costs by taking advantage of either of these discounts? Recommend the best ordering policy for the store. Order size Unit cost (Rs.) 1 – 49 pcs. 20.00 50 – 149 pcs. 19.50 150 – 299 pcs. 19.00 300 pcs. or more 18.00

Help answer showing level work and formulas