Reference no: EM132267505
Independent Auto Sales and Service is a full-service dealership for a major domestic automobile brand. Essentially, provides three main services: new car sales, used car sales, and repair and maintenance service. Because of the aggressive nature of the market, the firm's owner, Derrick Turner, wants to take a more systematic approach to improving service and providing a high level of customer satisfaction. Through surveys, focus groups, and analysis of complaint data and information, he identified some important requirements for these services. Customers expect a favorable impression when they arrive at the dealership--a wide range of vehicles and options to evaluate, available salespeople, to be greeted promptly, and to feel comfortable and not pressured. They also expect sales persons to be courteous, knowledgeable about the cars, respect their time, and honor verbal promises. For repair and maintenance services customers want to have the work explained appropriately, to be fully informed of any additional necessary work, and to have all work reviewed upon completion. They want good time estimates and communications with the service department. If I was the owner of the business, I would teach a spirit of customer satisfaction beyond skills. I would mold and motivate my employees the proper way to handle customers in any situation that they are in. This is because customers are everything to a business. Without them it is difficult for the business to succeed. I would guarantee that the customers are satisfied. I would ensure that Derrick and his staff provided quality customer services and delivers on time. This would be achieved through introduction of performance contracting. I would ensure that Derrick has been accountable for every repair and customer that he has received. Any negative feedback would be taken in a serious manner. Also, to help employees to comprehend the value of excellent customer service, I would create two situations for them to notice the difference. In one instance, they would approach me, Dealers play an important role in the business and the entire value chain. The dealership needs quality parts, product accessibility when needed, timely delivery, and fair prices. The company also receives corporate support for its employee benefits and certain training programs information technology planning and internet/Internet development, marketing and advertising and strategic planning direction. This company is facing increasing competition because of new-fangled foreign dealerships that are locating in its market area. Derrick recognizes the need to "become the dealership of choice" in its market. Expand sales and service business, especially via repeat customers and word-of-mouth recommendations. This mid-size auto dealership sells late model used automobiles, many of which are recently off-lease cars the owner gets from large new-car dealers in a southwestern city. IAS is owned by Derrick Turner. He has been in business for 15 years and have a positive reputation for honesty. Many of his sales come from referrals from past customers. Competing with other new- and used-car dealerships is always a battle. New cars are sometimes being offered with zero interest loan incentives. Achiever can almost always offer a much better purchase price, especially on two- or three-year-old cars with some mileage on them Question: Drawing upon the principles of quality managing and the unique nature of services addressed describe some of the issues that Derrick must consider in achieving his vision. Develop a list of action plans that he might consider. As a perquisite, Derrick should go through all the quality management principles and understand their impact on the business. Not all the industries work in similar fashion and hereafter need arise from to understand how a manufacturing sector works and how a service industry is different from that. Service industry is entirely dependent on the customer and it is an out and out customer driven industry. Measuring metrics is quite a difficult task as they vary from customer to customer whereas manufacturing sector has a few techniques, a few targets, and a few methodologies to be struck to. Customization levels are not so high here due to set standards. The major part of setting up action plan is to visualize the contents. Some major milestones to devise action plan are 1. Ensuring the availability of proper and advanced infrastructure, in line with latest technology. 2. Must have access to resources with right skills. 3. Quick on heels man power as service industry needs people with quick and smart thinking. 4. Proper processes and systems in place to handle variety of requirements. 5. A team completely focused on customer satisfaction along with being technically sound.
Independent Auto Sales and Service (IAS) case. Answer the Strategy Planning Questions listed on page 177 at the end of Chapter 10 Answer all four questions (including all sub-questions) completely—your response should be at least 150 words, properly formatted, clearly written and organized, and checked for spelling and grammar. Be sure to include a title page. Strategy Planning Activities • 1. Identify some core values of this organization as best as you can. What do they believe in (beyond organizational success or profitability)? How might their revealing these values to customers and employees create opportunities to exceed expectations? How can they translate core values into actions to produce A-plus value, thus strengthening relationships? • 2. Do some creative thinking about possible ideas you could apply to create A-plus value using the seven areas described in this chapter. Describe at least three ideas for each: o • packaging, guarantees (warrantees) o • goodness of product fit o • “memorability” of product experience o • uniqueness and shared values o • company credibility o • add-ons • 3. Consider ways to get employees of your organization involved in generating A-plus value ideas. How would you do this? Be specific about the following: o • What you would teach employees before soliciting their ideas? o • Who would be involved in idea-generating sessions? o • How you would collect and process ideas (specifically)? o • How often you would gather ideas? • How people might be rewarded for participating in the process? • 4. What would be necessary for your organization to engage in ongoing A-plus idea generation? How could this become part of the culture of the company? How could you get buy-in from participants and what should you do to avoid turning people off to the process. Be specific.