HFT3240 Study Guide Test 1 Exam 1 Will Cover Modules 1 5 PPTs and Discovering the Soul of Service o Any links or articles are fair game to be included on the test Raving Fans Articles 1 3 3 HBS Case Studies o Design Thinking and Innovation at Apple Apple was founded by Steve jobs and Steve wozniak in 1976 Changed the music mobile telephone and retail operations Share price from 5 dollars in 1998 to 600 in 2012 through its sleek product Success from a deep understanding of how people use computing devices Jobs left and then came back cleaning up the execution of the company Whole music industry had to adjust to Jobs way of downloading music we make progress by eliminating things o Starbucks Delivering Customer Service Originally founded in 1971 Howard Schultz took over to create Americans third place New stores became opening and the company went public Not always meeting satisfaction of customers Value proposition Three componets Product Service Store atmosphere Soft skills and just say yes policy Go outside of company policy to make sure the customer is happy Company competes with dunkin Product innovation is an important factor in the company s growth Success of product innovation depends on partner acceptance Proposed better coffee friendly atmosphere good workplace Workers were called partners Partner satisfaction led to customer satisfaction o In N Out Burger Arizona By 2003 in and out had 171 locations in Cali Nevada and Opened by Harry and Esther Snyder Nations first drive through Revenue growth 8 percent per year Average revenue is 1 2 million Extremely loyal customer base They were a private group of owners and kept their 1950 s style unchanged Had a secret menu that remained unchanged Complaints about the average wait time of 12 minutes but others accepted it as a more fresher food No freezers or microwaves All fresh food every day Competitors included McDonalds burger king and Wendy s fatburger and Johnny rockets Module 1 Know the drivers of sustainable success o Facebook google Starbucks and Disney all are achieving sustainable success Factors are they are keeping employees and customers happy day after day year after year Also being financially successful Understand the challenges in sustaining success o Making efforts to improve o Maintaining work ethics o Continued enthusiasm o DRIVERS OF SUCCESS Strategic focus Generosity Brand cultivation Acting small Trust based relationship Control of density Executional excellence Invest in employee success o Service success Dependent on quality of service Quality is all about perception SERVICE QUALITY LIES IN THE EYE OF THE BEHOLDER 2 Operating effectively while compete on price 1 Companies balance growth and expansion by maintaining high standards in hiring and training o Balancing growth comes from creating value through performance Offer a service that is performed well so customer finds value in it o 3 Ability of performers to sell promises and then keep those o 4 Gaining customer confidence Share testimonial Highly professional accomplishments and awards Honest and straightforward Use the power of one Encourage employees to develop one on one relationships Uphold reputation of your industry Ex bad rep for used cars o 5 Superb execution of service day after day Wow experiences become expectations CONSISTANCY o Execution vs price Value doesn t equal price Value Equals benefits received from burdens experienced Value Equals total experience Burdens monetary price Non monetary lack of knowledge by service providers o Entreprenewership vs maturity Most likely to invest in improvement seeking o How do service companies achieve sustainable success 1 business must excite customers and providers 2 must have strong strategy for provider commitment 3 business must have policies based on service NOT on economic thinking 4 Business must have strong institutional values allowing for maximization of employee potential Review the individual companies people we covered in the text and PPT s and how they achieve sustainable success o UNDERSTANDING THE MANAGER CUSTOMER PERCEPTION A satisfied customer is not always a loyal one and to keep people coming back you have to develop a relationship with them Customers perceive service by word of mouth Quality of product determines quality of the service o STARBUCKS OBJECTIVES Creating shareholder value that is significant Customers proud of company Achieve balance between profit and social conscience Keep pushing for innovation and self renewal Enhance experience and create brand separation o BOSTON MARKET Rapid growth period Eventually led to poor employee training high op expenses and loss of customers They opened up their stock to the public Beck offered savvy operational strength Introduced advanced computer system Eventually sold company to McDonalds What he looks for when hiring people Raw intelligence Alignment with vision of company Willing to do what it takes o FACEBOOK o OLD DOMINION TRUCKING be delivered on time o CLEAVLAND CLINIC Ways of innovation Promises that your package will be handled with care and will Continued development of new treatments devices and discoveries Thrives on innovation and development o PENN FOSTER COLLEGE Provider for commitment by Help students with academic career Employing people that are committed to providing students with the best service o ZAPPOS No call time measurement because they focus on the call quality rather than the volume of calls No sales based performance goals Interviews are based on core values and performance fit o MICROSOFT IRELAND o REEBOK Empowers its employees by Provides support for employees passions Helps employees help others Empowers its employees by Offering people to be fit Events to get moving and cross fit Offer Gyms the home of fitness Module 2 Understand the common company core values o Excellence o Teamwork o Innovation o Respect o Joy o Integrity o Social profit o Five Ways Understand how to create a teamwork culture Recruit team players Employees that will work well with others to achieve company goals Model teamwork within management Company executive show that they work well as with team members and demonstrate this regularity to all company employees Setting high standards that require teamwork to achieve Employees that work together in teams that can achieve more than just a single worker Celebrate group effort Employees are given position reinforcement for working well as a team and are rewarded for achieving