HFT3240 Exam 4 Breakdown of people examples and terms CAREER TIDBITS 1 The three points of service Ritz Carlton a A warm welcome b c Anticipating needs A fond farewell 2 Smile every time you are with customers 3 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 plan Examples The Container Store o Customers Employees and support systems o Distribution process is a group effort with all employees CEO Boone o 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 o Low Secret Companies Solution Selling The container store manifests itself in merchandising displays signage in store placement of products well trained salespeople who can demonstrate products propose solutions o In stock frequently replenish shelves o High traffic high visibility o Street Geometry placement on the street geometry of windows etc o Total Product 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 everyone o Conveys trust o Reinforces personal accountability o Builds pride o Evokes commitment CompUSA ValuJet o 1994 company was weakened and then taken over by another CEO that ramped up new store expansion o Fast growing and profitable airline until the crash of flight 592 killed 110 people eventually turned into Air Tran Airlines Midwest Express Airline o The suit the kid and the dog examples Employees going out of their way to help their customers Use real china plates silverware on their flights Spends significantly more on food per passenger 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 Norman o 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 Store o Closed Sundays o 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 recipe o Requires that all full and part time employees attend 4 core course in their first year Healthy start Values Teamwork Superior Customer Service Special Expeditions Cruise Ship o Social profit o Primary success measure is happy travelers company s dream o 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 values o Company founder Lindblad Dial A Mattress o Napoleon Barragan started this in 1976 as a side job o Business strategy 24 7 1 800 number Fast Delivery o 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 Myopia o Proposed by Levitt in 1960 Argued that the real business of railroads was not railroads but transportation Product Rail Travel Need Transportation USAA o 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 Company o 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 trial o Be innovative o Never feel comfortable People Drew Nieporent o Open first restaurant o By 1997 owned 7 restaurants in NYC San Fran and London o He won every major restaurant industry award LASTING BUSINESS was the central role of values based leadership Bix Norman o CEO of Miller SQA Involve employees Read read read 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 Lindblad o Company founder of Special Expeditions Cruise Ship He realized the importance of a dedicated talented team Power of truth Napoleon Barragan o Started Dial A Mattress Levitt o Marketing Myopia Railroads Transportation Charles Schwab o Maverick Company Cora Griffith o Waitress at Orchard Caf in paper Valley Hotel Been there for 14 years because she s treated so well o How do we get Cora Recruit the best Hiring well Interviewing Process High level of discretionary effort Volunteer workers Build true relationships with employees Invest in employee success Execution 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 thing o Price part of the value o Value benefits received for the burdens experienced by the o Customer value decreased if customer satisfaction is scarified for customer lower costs Entrepreneurship vs Maturity Entrepreneurs celebrate improvement and discovery Smaller and newer companies invest personal energy o Better ways to perform o Rules replace informality etc Individual Employee Individual employees have significant discretionary