Mbazappos the Company That Is Powered by Customer Service

The Company That is Powered to WOW Founded in 1999, Zappos started as site that only sold shoes. The idea for the site came to founder Nick Swinmurn in his quest to find the right shoe. Swinmurn couldn’t find exactly what he was looking for in the different stores he visited. The stores either didn’t have his size or the right style and color. After spending hours searching and getting no where he went home shoeless. Swinmurn attempted to shop online for the shoes he wanted. He couldn’t believe there wasn’t a site that offered a huge variety of shoes. This inspired him to create a site that he envisioned that had a big selection of different size, styles and colors of name brand shoes (â€Å"In The Beginning - Let There Be Shoes†, n.d.).†¦show more content†¦Hsieh creates and allows fun to take the stress that comes with customer service positions. Even though Zappos doesn’t have the typical working environment, a leader should still stress the important in taking the job seriously to ensure customer retention and great service. If there was decline in the demand of the products Zappos offered occurred at this very moment I think the culture will change just a little. I foresee the leaders of the company trying to hold on to the original culture but the stress of the decline impacting the fun and free work atmosphere. Some leaders will begin to focus solely on the operations of the company and the how to continue to make the company profitable (Schermerhorn, Osborn, Uhi-Bien, Hunt, 2012) .Slowly they will all become transactional Leaders rather than transformational leaders focusing on money and not people. The employee would provide wow service and have fun. All that would slowly phase out once the stress from the leaders trickle down to the other staff members. These actions will eventually result in the sales declining and the company being in a bad place financially. If the company response quickly to the decline in the demand the culture c ould continue to provide expectable wow service to the customer and a great working environment to the employees. In order for this occur the company would have to keep open communication among the leaders and the employees. Zappos would need

The Raven And American Romanticism Essay - 1292 Words

Kaylee Parker Kevin Stagg American Literature September 15, 2016 The Raven and American Romanticism The anonymous storyteller is busy reading a book when he hears somebody knock at his door. A faint thought comes to him that perhaps it was a guest, and he finds it better to let him in the following day because he was meditating over the demise of Lenore, his lover (Prince and Allan 4). Surprisingly, when he decides to open the door, he comes to nothing new except a sound echoing Lenore a reverberation from his thoughts. Coming back to his room, he again hears a knock and simply imagines that it was presumably the strong wind blowing from outside. A raven enters and expeditiously roosts upon a bust of Pallas over his entryway (Prince and Allan 3). The persona asks the bird of its name, the raven reacts, Nevermore. This left the narrator disturbed. Even though the poet employs several literary elements like symbolism, tone, and themes, the romanticism across the poem rekindles the overall atmosphere of the nineteenth century in America. The raven is one of the most revered literary pieces of Poe. The stylistic features and diverse dramatic qualities of the poem are appealing to the targeted audience. The repetitive use of the terms nothing more and nevermore build a fundamental internal rhyme scheme of a unique refrain. In the name Lenore and the word nevermore, Poe stresses the vowel O, which achieves a an atmosphere of loneliness and a tone of melancholic despondency (HamerShow MoreRelatedThe Raven and Romanticism Essay509 Words   |  3 PagesThe era of Romanticism spans from the late 1700s to the mid 1800s following the French Revolution; therefore, Romanticism encompasses characteristics of the human mind in addition to the particular time in history when these qualities became dominant in culture. 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Manufacturing of Business Product

Question: Discuss about the Report for Manufacturing of Business Product. Answer: 1. Fixed manufacturing overheads refer to those costs which are indirect in nature but related to the manufacturing of the product. These are typically fixed in nature and hence do not vary as per the volume of the output produced. In the event that output is lesser, then the fixed manufacturing cost allocated to each item would increase. However, since these are essentially fixed, hence they are not related to the production activity actually been undertaken (Drury, 2008). There are essentially two methods to compute the income statement i.e. Absorption costing and variable costing. In case of absorption costing, the fixed manufacturing overheads are included in the product cost and not the period cost. Hence, the fixed manufacturing overheads are computed by dividing the total fixed manufacturing overheads by the total production level of the product. Thus, the contribution margin is computed by deduction of fixed manufacturing overheads. In case the production is higher than the demand, then this method ensures that some of the fixed manufacturing overheads is transferred to the inventory cost and deferred to the next period and hence provide a boost to the profits of the company (Bhimani et. al., 2008). In case of variable costing, the fixed manufacturing overheads are not included in the product cost but as period cost. As a result, the per unit fixed manufacturing overheads does not need to be computed. Also, the complete fixed manufacturing overheads would be accounted for in the income statement and no component would be deferred to the future through the medium of inventories. Hence, typically this would lead to a lower profit figure as compared with the absorption costing since all the fixed manufacturing overheads would be accounted for in the income statement (Seal, Garrison Noreen, 2012). Maria indeed has vested interest in the given case which is why she is insisting on overproducing the product so as to cause a huge inventory and by adhering to the absorption costing, she would shift a host of the fixed manufacturing costs in the future through huge inventory. Clearly, this is incorrect and hence the absorption costing must not be used for external reporting (Petty et. al., 2015). External Reporting With regards to reporting to external stakeholders, it is recommended that the variable costing would be the preferred method as this ensures that an accurate picture is presented to the shareholders with regards to the performance of the company and the various costs already incurred (Parrino Kidwell, 2011). Internal Reporting With regards to internal reporting the firm has got a choice between absorption costing and variable costing. While taking decisions regarding pricing, the absorption costing is the most suitable since it takes into consideration all the costs actually involved in production and hence lead to better accuracy with regards to costing of an individual product. However, in cases of evaluating an external contracts in case of idle demands, it is recommended that the company deploys the variable costing into account as the fixed manufacturing cost is not an incremental cost and hence quote to external parties should not include this (Bhimani et. al., 2008). 2. It is apparent that there are three market segments of Cinto namely General Supermarket, Pharmacy Chains and Pharmacist owned single stores. Gross margin = (Gross Profit/Total Revenue) *100 Gross margin (General Supermarket) = (108000/3708000)*100 = 2.91% Gross margin (Pharmacy Chains) = (150000/3150000)*100 = 4.76% Gross margin (Pharmacist owned single stores) = (180000/1980000)*100 = 9.09% The cost per activity for the given activities is summarised in the table below (Brigham Ehrhardt, 2013). ACTIVITY LEVEL Activity General Supermarket Pharmacy Chains Pharmacist owned single store Total activity Total cost ($) Cost driver rates ($) Orders Processed (Number) 140 360 1500 2000 80000 40 Line items orders (Number) 1960 4320 15000 21280 63840 3 Store Deliveries made (Number) 120 360 1000 1480 71000 47.97 Cartons shipped to stores (Number) 36000 24000 16000 76000 76000 1 Shelf Stocking (Hours) 360 180 100 640 10240 16 Cost driver rates = Total cost/Total activity level The allocation of the other operating costs based on the above cost driver rates is shown below (Drury, 2008). Activity General Supermarket Cost ($) Pharmacy Chains Cost ($) Pharmacist owned single store Cost ($) Orders Processed (Number) 5600 14400 60000 Line items orders (Number) 5880 12960 45000 Store Deliveries made (Number) 5,756.76 17,270.27 47,972.97 Cartons shipped to stores (Number) 36000 24000 16000 Shelf Stocking (Hours) 5760 2880 1600 Total operating costs ($) 58,996.76 71,510.27 170,572.97 Operating Profit (General Supermarket) = 108000 58996.76 = $ 49,003.24 Operating profit as a % of revenue (General Supermarket) = (49,003.24/3708000)*100 = 1.32% Operating Profit (Pharmacy Chains) = 150000 71510.27 = $ 74,489.73 Operating profit as a % of revenue (Pharmacy Chains) = (74,489.73/3150000)*100 = 2.36% Operating Profit (Pharmacist owned single store) = 180000 170572.97= $9,427.03 Operating profit as a % of revenue (Pharmacist owned single store) = (9427.03/1980000) *100 = 0.48% From the above calculations, it is apparent unlike the gross profit margin which is the highest for pharmacist owned single stores, the operating profit margin is the highest for pharmacy chains and lowest for the pharmacist owned single stores. Thus, it is imperative that the overhead costs must be allocated correctly so as to identify the actual profitability of the various segments (Brealey,Myers Allen, 2008). Based on activity based costing, profitability margins are in the following order. Pharmacy chains General Supermarkets Pharmacist owned single stores. 3. The manager of Hair Suite III would be the most effective as he/she is displaying the participative approach of management which enables the team to arrive at a sustainable and mutually agreeable solution. This is because the manager put forward the problem before the stylists and has worked out as a solution which resolves the problem without disturbing their current job timings or quality. In case of Hair Suite 1, the manager follows a authoritative management style where it is recommended that the time per customer would be reduced and also the breaks without having any discussion with the stylists as to whether their work would be adversely impacted by such a schedule. Similarly, in case of Hair Suite II, the manager does not discuss the problem or ask for a feedback on a suggestion but goes and straight away directs that the stylists need to work one hour more on a daily basis (Bhimani et. al., 2008). The stylists would be unhappy with the directive given by managers of Suite I and Suite II. This would be because there has been no discussion with the core problem and the likely solutions but instead a particular solution has been forced upon the stylists without taking their inputs and feasibility of the idea considering the impact of customer quality and stylists performance. If the stylists are unhappy, it may lead to lower productivity from the stylists and also customer satisfaction may be adversely impacted. The motivation levels of stylists may be impacted and hence they can potentially quit the saloon and look for an alternate location. Additionally, there could be increased disputes between the stylists and also the respective managers which would be counter-productive for all the possible stakeholders. In case the stylists are not willing to share their suite, then the potential alternative solutions could be as follows. The appointment timings can be customised especially for regular customers as the time required is typically known. Further, some rationalisation as per the services offered may be done which could accommodate incremental customer atleast on some days. Introduction of the rule that in one month, on one of the holidays, each person would have be serve a half day which could bring in incremental revenue. Providing flexibility to stylists that they should work overtime on some days in the week instead of everyday. The concept of stretch target can be applied in case of manager of Suite 1. This is because now a difficult target of servicing eight customers in the daily shift has been provided to each stylist and they are expected to meet this in order to successfully discharge their obligations (Seal, Garrison Noreen, 2012). This is different from the regular target of serving seven customers in a daily shift. It may be likely that due ot the ongoing nature of the stretch target, the customer service may be adversely impacted and also the stylist may feel fatigued due to a break of only five minutes between the sittings. Thus, it is highly likely that the stretched target given to the stylists cannot be met on a daily basis without compromising the quality and also increasing the potential of burn out on the part of the stylists. References Bhimani, A, Horngren, CT, Datar, SM Foster, G 2008, Management and Cost Accounting 4th eds., Prentice Hall/Financial Times, Harlow Brealey, R, Myers, S Allen, F 2008, Principles of Corporate Finance, 9th eds., McGraw Hill Publications, New York Brigham, EF Ehrhardt, MC 2013. Financial Management: Theory Practice, 14th eds., South-Western College Publications, New York Drury, C 2008, Management and Cost Accounting, 7th eds., Thomson Learning, London Parrino, R Kidwell, D 2011, Fundamentals of Corporate Finance, 3rd eds., Wiley Publications, London Petty, JW, Titman, S, Keown, AJ, Martin, P, Martin JD Burrow, M 2015, Financial Management: Principles and Applications, 6th eds., Pearson Australia, Sydney Seal, WB, Garrison, RH and Noreen, EW 2012, Management Accounting, 4th eds., McGraw -Hill Higher Education, Maidenhead

Sullivan Ford Case free essay sample

Due to rising fuel prices, industry and in-house forecasts for future sales were discouraging. Trend is shifting towards vehicle service transactions. 0-day Purchasers CSAT Survey Results Auto world achieved better than average ratings 90% of customers said that Auto world informed them of what to do if they needed service Less than 33% of respondents said that they have been introduced to someone in the service department (which is a sales protocol) 90-day Purchasers CSAT Survey Results Overall satisfaction with Auto World Service Department was consistently low placing it in the bottom 25% of all Ford dealers More than 50% of respondents said they would rather use another Ford dealer for future service BA 235 Services Marketing Promptness of writing up orders †¢ Convenience of service hours †¢ Appearance of the service department †¢ Interpersonal variables such as attitude of personnel, politeness, understanding of customer problems and explanation of work performed Problem Statement Should Carol Sullivan-Diaz sell Sullivan Ford Auto World to prevent future losses or try to turn it around? If she chose the latter, what changes improvements should she implement to improve service quality in Auto World? Case Analysis Flower of Service Core Service: Car dealership Supplementary Service: Vehicle servicing Facilitating Elements †¢ Information Along Wilson Avenue, the Sullivan Ford Auto World rotating signage can be easily seen. We will write a custom essay sample on Sullivan Ford Case or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page A vast display of cars and trucks fronts the showroom. It also has banners saying â€Å"Let’s Make A Deal. The service facility is at the back and is not visibly seen along the highway. †¢ Order-taking BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 The front end of the dealership employs salespeople who are tasked to transact with possible customers. The dealership offers brand new and preowned vehicles. Some customers who are initially looking at buying brand new vehicles sometimes realize that they cannot afford one and just settles for refurbished cars. Similarly, there are customers looking at pre-owned cars and are sometimes convinced to buy brand new cars. At the back end, service writers schedule appointments for repairs and maintenance. For repairs, estimates are given to the client after the vehicle is diagnosed by a mechanic. Billing For car sales, it is not specified in the case but this usually differs per customer transaction. For vehicle servicing, customers are usually billed after the service is done. Payment For car sales, it is not specified in the case but this usually differs per customer transaction. It can be paid with outright cash, in-house loan or thru an auto loan from a bank. Sullivan Ford Auto World also allows trading in of the purchaser’s existing vehicle for the new one. For vehicle servicing, customers pay after the service is done. Enhancing Elements †¢ Consultation At the front end, car salespersons are there to assist and answer queries of possible customers that are looking for brand new or pre-owned vehicles. Refurbished vehicles are also of good quality given the expertise of Auto World mechanics and service personnel. Back–end: Service Dep’t BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 The Service Department offers servicing for cars that broke-down and/or need parts replacement (Possession Processing). PLACE TIME Sullivan Ford Auto World has a very good location in a suburban highway intersection, in an area of the city where housing developments are constructed. This location gives Auto world visibility and accessibility to two major markets: the motorists and the residents. Service department is located at the back of the sales area which gives opportunity for salespeople to refer the company’s service area to buyers. Sales operation hours are assumed to take place on normal office hours, same goes with the servicing of the vehicle. It can be inconvenient for customers to follow the window period of checking in vehicles for repair before 8:30AM and pick-up by 6:00PM when service is completed. In addition, the service writing process is not efficient and has lot of bottlenecks and is not convenient for customers. †¢ PRICE No detail on pricing was mentioned in the case but it was implied that Sullivan Ford Auto World has low margins for selling brand new vehicles. Walter Sullivan was even aggressive on giving discounts and deals to attract high volume of buyers. The company’s pricing strategy is to offer lower the price to stimulate demand or attract buyers. On the contrary, aggressive discounts and low prices may convey poor quality of service to customers. †¢ PROMOTION BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 The company invests heavily on promotions and giving deals to induce buyers. No promos were mentioned in the case regarding its service center. Promotions and generous deals helped the company maintain desired sales volume in the past but records show that revenues have declined in the past few years and forecasts indicate that this decline may continue because of high interest rates. There are minimal promotion activities for the service department. It seems that management has overlooked the shift of sales contribution from car sales to service. They should also launch promotional activities for the service department to help drive service sales up – since the service department is not operating at capacity. †¢ PROCESS We have identified processes that Carol Sullivan-Diaz should look into: Writing of Service Orders Process for service writing is out of date and is inconvenient to customers. Bottlenecks and disturbances are not properly managed. Customers relay the problems on their vehicles to the service writers. This gives high probability of incorrect diagnostics, solutions offered and estimates when customers have low technical know-how. This may be the reason why rework is a common occurrence which frustrates customers even more. Sales Process Salespeople do not adhere to the sales process standard procedure. Some sales people are hesitant in referring the Auto World service center BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 because they know customers may get turned off and risk losing the sale. Referral of the service center is part of the sales protocol and should be firmly implemented.Case literature explicitly described discrepancy of the physical appearance of the front-end or the sales area (showroom and office) and the back-end or the service center area (office for service writing service bays). The front-end is modern and well maintained while the back-end area is the exact opposite. The condition of the back-end area is the main reason why sales people do not refer Auto-World’s service center despite the high skill level that its employees have. Car Sales or the Front–end team is composed of the Sales Manager, 7 Sales People, the Office Manager the Secretary. The Service Department is composed of the Service Manager, Parts Supervisor, 9 Mechanics and 2 service writers. Survey results show that customers are not happy with the quality of service provided by the Service Department. Lowlights of the CSAT survey results are: promptness of writing up orders; convenience of service hours; physical appearance of the service department personnel; their politeness and way of understanding customer problems and communicating work performed. Service writers are demotivated and have high absenteeism and turnover rate due to high level of stress of the job. †¢ PRODUCTIVITY BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 The service department is not operating at full capacity as stated in the case. In addition, the service personnel do a lot of rework due to incorrect diagnosis. On the other hand, service writers are fully utilized due to the long and manual process of writing service but customers are not happy with how their service orders are handled. Productivity efficiency of the personnel is low because of the factors described above. SWOT ANALYSIS †¢ – Strengths Strong brand equity, The Sullivan Ford Auto World is already an established car dealership company in their area as the late Walt Sullivan was a well-known salesman and entrepreneur, appearing in TV and radio commercials as well as community affairs. – The carrying brand Ford is also a well-established quality car brand. – Its location on the intersection of Wilson Ave and Route 78 suggests a prime location for a car dealership. The nice facade and showroom will also attract a lot of possible customers. †¢ – Weakness The back end office is not well maintained and turns off customers. Work orders take too long to prepare. Service writers are too stressed BA 235 Services Marketing Group 7: Case Solution ~ Sullivan Ford Auto World Feb. 2012 21 and most likely experience emotional battery. This results to high employee turnover – Front end office employees tend to not refer the company’s vehicle servicing department. This results to lost revenues for the back end office – Poor customer service survey results for the back end office – Poor management of customer complaints †¢ – Opportunity Carol Sullivan has a lot of experience in health service management. Health services are very high contact and her expertise will be a huge help in turning around the quality of service of Sullivan Ford Auto World †¢ – Threats Bill Froelich, owner of several dealerships, expressed interest in buying out the company in order to achieve economies of scale. – Poor result of customer survey of the service department showed that clients are more likely to go to another Ford dealer or some other place for their car repair and maintenance needs – There is no established formal channel for customer complaints as exemplified by the shouting customer towards the end of the case.