HFT3240- Exam 4 Breakdown of people, examples and terms CAREER TIDBITS:1. The three points of service (Ritz Carlton)-a. A warm welcomeb. Anticipating needsc. A fond farewell2. Smile every time you are with customers3. Show up early (JFK assassination—only one person got footage because he showed up and hour before everyone else)4. Research and Stick to the planExamples:- “The Container Store”o Customers, Employees and support systems o Distribution process is a group effort with all employees CEO: Booneo “Integrated Sub-Strategies” Core strategy: To better customer’s lives by giving them more time & space.- Ex: Stocking shelves in the middle of the night o Only sells storage and organizational products that meet three criteria: Visibility Accessibility Versatility - Solution Selling: The container store manifests itself in merchandising displays, signage, in-store placement of products, & well-trained salespeople who can demonstrate products & propose solutionso In stock—frequently replenish shelveso High traffic/high visibilityo “Street Geometry”- placement on the street, geometry of windows, etc.o Total Producto Low-Secret Companies:- Share virtually all information with all employees, including daily, month-to-date, & year-to-date sales comparisons for each store- Acting like a Manager- Sharing information with everyoneo Conveys trusto Reinforces personal accountabilityo Builds prideo Evokes commitment- CompUSAo 1994, company was weakened and then taken over by another CEO that ramped up new store expansion. - ValuJeto Fast-growing and profitable airline until the crash of flight 592- killed 110 people  eventually turned into Air Tran Airlines. - Midwest Express- Airlineo The suit, the kid and the dog examples  Employees going out of their way to help their customers  Spends significantly more on food per passenger Use real china plates & silverware on their flights- Example of “excellence” o “The Best Care in the Air” No middle seat Comp wine, champagne, and cookies Meals served on real china- Miller SQA- CEO: Bix Normano Simple, Quick, Affordable  Developed a system to deliver well made furniture that was affordable and delivered in days  Focusing on the PROCESS not the product o Articulating the Dream- recruiting talented executives, shared values, commitment to the dream and demanding positive culture o Reinforces its values through its building Won an award for successful translation of specific business goals into architectural solutions. o Fosters Internal Communication  Town Criers are full time employees who assume internal communication responsibilities in addition to their regular duties. They attend company information meetings & pass this information on to their assigned work group.- Ukrop Grocery Storeo Closed Sundayso Give profits from ice cream to charities- “social profit”o Cards and Pins: Employees get the day off on their birthday and a $50 gift card  Strategic Innovations:- Solution Shopping: Dinner pre-made for you- Meal Ideas: Samples with the recipeo Requires that all full and part time employees attend 4 core course in their first year  Healthy start Values Superior Customer Service Teamwork - Special Expeditions (Cruise Ship)o “Social profit”o Primary success measure is “happy travelers” = company’s dreamo Had an issue with the ship and the entire company helped by complying teamwork, respect and integrity.  “Asserting Values in touch times”- turn to core valueso Company founder: Lindblad- Dial-A-Mattresso Napoleon Barragan started this in 1976 as a side jobo Business strategy:  24/7 1-800 number Fast Deliveryo Dial-A-Mattress BOOT CAMP Employees who pass the boot camp tests are better equipped for the physical, mental, & emotional tests that await them in the service role itself. 50% graduations rate Trips to Serta & Simons to observe mattress construction 6 weeks long- Marketing Myopiao Proposed by Levitt in 1960 Argued that the real business of railroads was not railroads, but transportation- Product: Rail Travel- Need: Transportation - USAAo USAA evolved into a one-stop financial services provider for the military market “Serving underserved market needs”o USAA believes in continuous learning more than most - Account representative courses are 10 weeks- All full time employees on the job for more than a year are eligible for full college funding (business degree)- Distance Learning programs- located within the state in which the employee works- On campus classes taught on USAA premises- Custom Research Companyo Core strategy: Help clients make better business decisions through customized marketing research info.  Large clients ONLY Learn to say NO Less clients = more money - A Maverick Company: o Charles Schwab is a maverick company that is not only willing to try the untried but also eager to do it. It is a company with singular focus & strong ambition that listens intently to customers. o Take risks by trialo Be innovativeo Never feel comfortable People: - Drew Nieporento Open first restauranto By 1997, owned 7 restaurants in NYC, San Fran and Londono He won every major restaurant industry award LASTING BUSINESS was the central role of values based leadership - Bix Normano CEO of Miller SQA Read, read, read Involve employees Hire those who promote the dream Let them participate - Boone:o CEO of the Container Store 1st priority is to STAY IN TOUCH with people in the stores- Go to breakfast, lunch dinner with employees- Handwritten notes- Lindblado Company founder of Special Expeditions Cruise Ship He realized the importance of a dedicated, talented team Power of truth- Napoleon Barragano Started “Dial-A-Mattress” - Levitto Marketing Myopia- Railroads/Transportation - Charles Schwabo Maverick Company- Cora Griffitho Waitress at Orchard Café in paper Valley Hotel Been there for 14 years because she’s treated so well o How do we get Cora? Recruit the best Interviewing Process Hiring well- High level of discretionary effort- “Volunteer” workers Build true relationships with employees Invest in employee successExecution vs Price- Price is used as a marketing tool when there is a lack of physical separation among services. - Value and Price do not mean the same thingo Price = part of the valueo Value = benefits received for the burdens experienced