HFT3240 Exam 2
Customer benefits to company relationships
-Confidence benefit: reduced anxiety; increases faith that promises will be kept -Social Benefit: being recognized by employees
How does Jordan Estate Winery develop customer relationships all while offerring great hospitality experiences to its customers?
"Through exclusive, intimate experiences, Jordan Estate Rewards membership creates lasting wine country memories for you and your loved ones— such as lunch in our dining room, fishing on Jordan lake or a luxurious overnight stay in one of our chateau suites, just to name a few."; Jordan estate rewards program: makes great traditions accessible; people enjoy the many different activities at the estate; combines all of the CEOs favorite parts of the property in one big experience that reflect his personality, attention to detail, and focus on quality; "European hospitality"=the little details; provides a great setting for enjoying great wine; builds beautiful memories by engaging all of the senses
Open Communications with employees
"conveys trust and evokes commitment" Ex. Southwest Airlines "nuts about southwest" blog: the forms of communication Southwest uses to include it's employee: they keep an ongoing blog that employees can update information on
Ownership Attitude
"is a state of mind, an emotional attachment, personal responsibility, and pride"
What aspects does a Cirque du Soleil show include?
-Cirque combined street performers, clowns, acrobats, and gymnasts to present feats and create theater and dance dramas -The music of Cirque was in a Latin-sounding language designed to transcend cultural boundaries.
Successful Companies Provide Continuous Learning by
-Annual Company Retreats -Core Curriculum Reinforcement -College Tuition Reimbursement -Corporate Training Courses -Individualized Development -Coaching -Learning Aids
Communication at The F.S. George V
-Direct Line: A method where general managers could speak with employees, supervisors, and managers to learn about issues at different levels and address them appropriately -Remained open with the press-->As a result, the hotel received no negative comments
Categories and principles of Justice
-Distributive justice: refers to the outcome of a decision -Procedural justice: concerns the process used to determine the outcome and the interpersonal treatment of individuals during the process
The Container Store and it's products
-Elfa section: represents 25% of their sales (floors shelving; basic organizing product of any closet; closet dance=so excited to walk into their dream closet that they do a little dance; they love it so much so they keep coming back, show off their closets, and business builds from there) -world's greatest shoe box took 30 years to develop but only costs $1.79 -worlds greatest shoe boxes, sweater boxes, under the bed boxes, etc. -hanger wall=world's greatest selection (cedar hangers that smell great, keep moths away, are sturdy, etc; even their plastic hangers are custom made in a variety of colors; had to do their own molds for hangers; passionate about 25 cent hangers
Why does Enterprise choose to remain a private company?
-Focus on what is good for customers and employees -as a private company they can spend time interacting with employees rather than investors
The History of Cirque Du Soleil
-Founded by a troupe of street performers near Quebec City, Canada in 1984 -Equally owned and managed by Guy Laliberte and Daniel Gautier before 1998 -Laliberte bought out Gautier's half and became the current President and Chief Executive Officer (CEO) -Work force grew from 73 in 1984 to over 2,000 presently -Audiences increased from an average of 270,000 in the 1980s to nearly 6 million in the early 2000s -"Artists Rebellions" occurred in 1987 and 1988 -Failed in decentralizing management in mid-1990s -Headquarters in Montreal
How do companies that sustain success control their destiny?
-Having a unique and valuable market offer (Starbucks) -Having an independent attitude; a mindset (Google) -Focus on creating superior value for the customers (Southwest)
What are some of the new implementations the Four Seasons introduced into the French hotel business?
-Hired Le Calvez to be general manager -assigned a 35-person task force for every property -2.5 staff per room -35 hour work weeks -more emphasis on food and beverage -employee of the month and employee of the year program
How do companies invest in employee success and satisfaction?
1.Strong beginnings: Getting employees off to a strong start 2. Continuous Learning: Continually developing knowledge and skills 3. Ownership Attitudes: Making them feel like part owners of the business
The Four Seasons is successful because of their ability to
-Maintain a strong structure -Ability to adapt -Appear true and up front -Hold and hire loyal employees
How do companies control customer value reation?
-Maintaining quality standards-consistency -Creating excitement about products and services -Offering new options for customers -Product knowledge training for employees
why did Hilton need the Hotel Diversification Process?
-Needed scale and breadth to be the first choice of the world's traveler. -Wanted enough distinct products and different price points in order to be considered by guests across the full spectrum of segments and reasons for traveling.
How do companies create attitude?
-Open knowledge-No company secrets -Decision Space to Success- Autonomy -Sharing the Profits
Great companies have employee relationships where..
-Relationships are personalized -Mutual respect is abundant -Leaders are accessible, approachable and caring -Organizational trust is nurtured -Fun is always in the air
Why is it important for service companies to invest in employee success?
-Research finds that firms cited as good places to work earn returns that are more than double those of the overall market -100 best companies to work for earn 14% compared to the normal 6% -the "fortune list" is the most visible measure of employee satisfaction; a good example is Google who focuses on long-term growth
The Seven Four Seasons "Service Culture and Standards"
-S mile -E ye -R ecognition -V oice -I nformed -C lean -E veryone
Traits of successful companies that control their destiny
-Stress excellence over growth -Act like a private company -Control customer value creation -Compete against themselves
Southwest: employees create positive and personal customer relationships
-Talk to them when it's needed -Take the time to help them -Make them feel special woman going in for an open heart surgery; southwest employee tells her everything is going to be ok then called around and found which hospital she was at to talk to the family; she made her feel special and like she was the only passenger that day. →Our founder, Herb Kelleher, is famous for saying that "the Business of Business is People." -->He recognized that - more than advertising, more than low fares - it would be our Employees that would be the key to our success, because they would be key to building positive relationships with our Customers. At Southwest Airlines, we truly value the relationships we build with our Customers and see every encounter as an opportunity to connect. And, because our Employees are guided by "The Golden Rule," they instinctively know what to do to take care of our Customers in times of need. Sometimes it is a simple as getting someone's bag to a flight on time, and sometimes it can be much deeper than that.
How does Cirque du Soleil help its artists develop?
-Teach them to expand, to blow up, to be in touch with who they are. -They cast people (children) with others from their area to build support systems
F.S. George V
-The Four Seasons first French property -located in Paris steps from the Eiffel tower -awarded top international hotel and best hotel in France -suite decorated like a French home - fine dining in a warm atmosphere, full spa, and indoor pool
Cultural Cocktail
-The Four Seasons successfully arrived and opened in France, exceeding expectations -Despite expected tension, a professional and diligent manner saw them through challenges -The key to their success was holding a "pragmatic mind" on the goal by doing the following: 1) Holding high and strict standards for every Four Seasons Resort 2) Abiding by and respecting France's labor laws 3) Opening a Parisian Palace with "French honor"
The Four Seasons Way
-The Golden Rule: "Treat others as you would like to be treated" -The Four Seasons exemplifies this by recognizing the needs of its customers and its employees -To become a French employer, the Four Seasons had to overcome both political (laws & regulations) and cultural obstacles: strict labor laws! tax burdens, 35 hour work weeks, employee and retirement benefits are generous; termination laws were particularly tricky
History of Hilton Hotels
-The Mobley Hotel was founded by Conrad Hilton in Cisco, TX in 1919 -Became public as Hilton Hotels Corporation in 1946 -Acquired Promus Hotel Corporation in 2000 -Started Customers Really Matter (CRM) initiative in 2002 -Hilton Hotels Corporation was purchased by the Blackstone group in 2008 -The Hilton brand is connected to nearly 3,000 properties with around 500,000 rooms
How did Hilton work on portfolio diversification?
-They focused on domestic growth in the lodging segment as well as through diversification into casinos and vacation ownership -The acquisition of Promus pushed Hilton to nearly 1,700 properties -in 2005 Hilton Hotels bought back Hilton International bringing about 400 Hilton properties into the fold; franchising and alignment with real estate owners
How do companies 'Stress Excellence over Growth'?
-They identify and commit to an expansion pace that allows superior execution of the strategy
How does MGM Grand Las Vegas practices continuous learning?
-Through the MGM Grand University→they found that their people make them most successful so they developed a certain training program and built the university where employees can learn basically everything -also created the leadership institute -60% accepted to the institute were promoted -the prince of Abudabi met with them and decided they needed something like the MGM university to become successful
what was the goal for the F.S. George V?
-To be one of the "Palaces" of Paris, but in modern the Four Seasons Way -"We want to be a symbol of France that is in movement, a European France, a France that stands for integration and equality"
How do companies learn about their customers?
-Track buying patterns -Customize services and promotions to customers' needs -Coordinate multiple services to same customer -Provide two way communication channels -Augment services with valued extras -Personalize service encounters
Perceived competence
-a customer's idea of the company's ability to carry out the service -A service company's competence is instrumental in establishing customer trust: -Competence (doing things right) + Service Promises Kept = Customer Trust -Becomes a competitive advantage for companies to earn customer's confidence with dependable, accurate service
How does Midwest Express stress excellence over growth?
-adds only 15% new people each year -grow 20% per year with no debt -transfers 30-50% of its "homegrowns" to develop new teams
Employee Relationships
-are critical for labor-intensive service companies -Company-employee relationships facilitate company-customer relationships
How does Jersey Mike's Subs keep their customers coming back?
-atmosphere and knowing their customer; they know everyone's names and they are "friends" -the menu offers more than 20 selections; they cut the bread all the way through, oil and vinegar, spices, cut fresh produce; over 300 locations today; -a lot of history, passion, and emotion with the original store -point pleasant beach new Jersey is home to the "submarine sandwich"
How does Starbuck control value creation?
-by adding new options for customers: redesigning -seeks ways to heighten evening business: people are interested in more options so they're creating an elevated experience with beer, wine, and food -Creating a variety of options that would be found in a restaurant; especially cheese and cured meats -savory items served on china will compliment the coffee, beer, and wine. -Highlights: locally relevant, recycled materials, working with local artists, new table designs, community tables that seat up to 12 or 15 people, very homelike design that is inviting
How does Midwest Express act as a private company even though they are now public?
-by advising prospective investors they the company would be managed with a long-term perspective and would seek controlled, steady growth. -told investors if they wanted fast growth, they should buy another company's stock -"Before going public we were making good and proper decisions. We are using the same thought processes today"
How does The Container Store control customer value creation?
-by not having vendors ship merchandise directly to its stores because it distracts employees from focusing on the customers -controls all store distribution through its own distribution center
Why does The Container Store choose to remain a private company?
-captial has never been a limiting factor -Not giving in to all of the offers they get has been a key turning point for the company
What does fast growth NOT allow a company to do?
-control quality -focus on the customer -focus on the company's culture
How does the Charles Shwab Corporation stress excellence over growth?
-hire employees with values who fit their own -refuses to pay sales commission that could put the interest of sales representatives and customers in conflict -internal communication investments such as "town hall" meetings
Starbucks managers create customer relationship by
-hire people who are enthusiastic with the same passion and goals, and people who feel good about the customers and the way they are -know what the customer drinks -listen to music when he comes in to get the staff fired up -customer service seems to be a lost art but they value it and it keeps customers coming back
Perceived Fairness
-how the customer sees the company's reactions, behavior, and their degree of justice (one perceived act of unfairness can destroy a relationship forever) -Ex. Unfair practices of major credit card companies: Credit card companies are demonstrating unfair practices by: 1. Burying "secret" fees in customer purchases, 2. Creating a new fee called "interchange" that most customers don't even know about (credit card fair fee act)
Green Cab & Growth Problems
-hybrid vehicles reducing costs and improving customer service -started by 8 cab drivers that wanted to start a company that was a little more environmentally responsible; up to 16 vehicles now -in 2009 they struggled with growing; had to intensely focus on finding appropriate funding; uses higher quality products; trying to build a solid foundation for future rapid growth
What happens if companies grow too fast?
-lose control over their future by growing too fast -Rapid growth weakens the market offer and impairs the customers experience
How does IKEA uses it's corporate culture to "outdistance" itself?
-mission is to create a better everyday life for people; challenge each other; importance of their culture is "everything" -when a company wants to last, the culture is the "glue" in a growing organization and it's the "fuel" -the culture at Ikea is exciting but also questions what they are doing=foundation for innovating; have to revisit culture all the time; growing into China and have to be "Ikea in China"; the shopping experience is a big strength because it is engaging (touching the stuff); *home furnishing offer is broad, great prices, smart home furnishing program
Why does Chick-Fil-A choose to remain a private company?
-one of the most successful fast food chains in the world -would gain a lot of money if it went public, but then they wouldn't be able to do the things such as first-class conferences for operators, being closed on Sunday, and giving away millions of dollars in college scholarships
How does The Container Store stress excellence over growth?
-only opens a few stores a year and waits until a spot opens in the markets they want to enter -the most important thing they do is hire great employees
How did rapid growth affect Groupon's business?
-people were excited about it at first but seem to have lost interest -merchants aren't gaining loyal customers and are losing money on their deals -stock prices are plummeting -started to reposition by offering "Groupon goods" instead of just services & began offering payment processing services to create lower-cost alternatives for merchants
How does Ukrop control customer value creation?
-provides superior quality of products -controls everything from genetics to feed -invests in central kitchen and central bakery to produce consistently high quality ready to eat foods
Miller SQA
-quietly leading a mini-revolution in office furniture by rewriting the value equation for customers; making a hard-to-buy product quick, simple, and affordable. -Companies in control of their destiny minimize unwanted interference that distracts them from their mission. -The senior leaders of a business determine its course -Control of destiny is independent action -Requires staying centered on the customer -Strong values, strong leadership, strong focus
how Facebook uses their culture to "outdistance" themselves?
-three keys to Facebook's success: 1. Cultural values; a place where people can move quickly; 2. Emphasis on making bold decisions (newsfeed/platform were controversial at first); 3. Focusing on leverage and impact (the best people want to go to the place where they'll have the biggest impact; ratio of # of engineers to the size of the user base; each engineer is responsible for 1 million users (focus on having leverage for the best people to join the company)
What is the main product of Cirque du Soleil?
A circus without animals
How does Midwest Express control customer value creation?
Does NOT outsource any part of their services and instead, does everything themselves in order to maintain quality, and in some cases, to lower costs
how does providing employees with the right tools empower them to be productive and make a difference?
Employees are able to generate and test ideas at very fast pace.
Trust plays an essential role in the size of the tolerance zone. However, service below the zone is sometimes acceptable because of the solid relationship built between the company and its customers.
FALSE-->Never acceptable
According to the video "Josh James of Omniture: Inspiring story on keeping promises" Omniture keeps promises to employees by rehiring laid-off employees when the company started doing better
FALSE-->repaid them
According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" the Four Seasons' revenue per room in 2001 was 5% higher than that of its primary US competitors and 10% higher than that of its European Competitors.
False-->According to the article, Four Seasons' revenue per room in 2001 was 32% higher than that of its primary US competitors and 27% higher than that of its European Competitors.
According to the Cirque du Soleil case study, in the mid-1990s, Cirque du Soleil tried to better support its shows traveling around the world by establishing branch offices in North America, Australia and Asia.
False-->In the mid-1990s, Cirque had tried decentralizing management into three regional divisions, one in North America, Europe, and Asia.
Cantin, casting director for Cirque du Soleil, said what was a constant challenge?
Finding the right artists
Partner Relationships
can help a company better serve its customers and bring new customer to the company
According to the case study on Cirque du Soleil, what did COO Marc Gagnon do to encourage employees to make their voices heard within the company?
Gagnon invited criticism of himself and the management by creating an employee newsletter composed of employee submissions that were entirely uncensored.
How does Publix control value creation?
Gives customers more options by launching "online easy pickup" for deli food-->able to shop from phone or computer, specify a meal and pickup time, cuts out waiting in line for your number
How do companies 'Act like a Private Company'?
Giving employees and customers specialized services and attention that builds trust and long term relationships.
For Hilton, What are the benefits of having a diverse portfolio?
Having many investors in the company
What is meant by Control of Destiny?
Having systems in place to achieve company goals and sustain success, year after year
According to the case study on Cirque du Soleil, why did the conductor Oberacker choose to stay with the company, despite a downgrade in compensation and increased work hours?
He loved the central role he had in the performance every night and the headiness of total mutual interdependence between himself and the artist
According to the video about MGM Grand Hotels, why is it important to provide a certain level of development and training to all employees (as stated by the company president)?
In order to improve the quality and engagement of employees
Continuous Learning
Keeps employees motivated and excited about the job AND on top of the latest tool and skills of the trade Ex. Zappos employees discuss how the company's core values and culture are reinforced: "new hire programs"; core values are delivered throughout service; signs cover the office with the core values on them; personal story of an employee who sees cash and doesn't take it because she has become a better person working at Zappos; they are about *delivering happiness in a box; not thinking just about the bottom line!-->they place a lot of value on the employees—its not all about the customers it's all about the employees which spills over to customer service
What is the #1 way to build excellent customer relationships?
Knowing your Customers
IKEA believes that the corporation's culture involves what?
Not only a community feeling for employees, but also the delivery of fabulous good value to customers.
what do Learning Aids help do?
Provide employees with daily reminders of Company policies and procedures, giving employees a feeling of confidence Ex: Starbucks Green Apron Book: explains how to treat customers, the companies morals, and how they work
According to the "Four Seasons" article, what did "consistently exceptional service" mean to the Four Seasons?
Providing high-quality, truly personalized service to enable guests to maximize the value of their time, however the guest defined doing so
What does it mean to 'Compete Against Yourself'?
Successful companies seek to outdistance themselves
According to the video "About Tide Loads of Hope", Tide acts like a private company by providing free laundry service and laundry products for the victims after natural disasters.
TRUE
According to the video "Aftermath of Hurricane Irene: Verizon Works to Restore Service", Verizon acted like a private company during hurricane Irene by responding as soon as possible to the emergency.
TRUE
According to the video "Jordan Estate Rewards: Customer loyalty program reinvents the wine club", the inspiration for a hospitality wing on the Jordan Estate Winery came from John Jordan's parents' trip experiencing European hospitality
TRUE
According to the video "What is the Hilton HHonors program?," Hilton's development of an app for Hilton HHonors members is an example of offering personalized services.
TRUE
According to the video about Starbucks, one of the company's goals is to hire employees that are upbeat
TRUE
How are the Cirque du Soleil's employees different from that of other service companies?
They are from over 20 different countries; mixed artistic forms, mixing Brazilian dance with classical ballet with mime.
How does Tide act like a private company?
Tide acts like a private company during natural disasters through their "Loads of hope" disaster relief program: In times of disaster people turn to the most basic of human needs - and one of those is clean clothes. The Tide Loads of Hope program provides relief by means of a mobile Laundromat where the team washes, dries and folds clothes for families for free (can do 300 loads a day); allows people to start rebuilding their lives.
Strong Beginnings
Training Employees on: Core Values, Company Mission, Corporate Policies, Product Knowledge, Service Standards, Customer Service Strategies, and Company Expectations Ex. Southwest airlines new employee orientation process: "a day in the life of a new hire"; onboarding department focuses on keeping people there once they are hired; onboarding was created to spread the awareness about the hiring crunch as well as lowering the turnover rate; taught that "customers are not just a number"; the new hire comes in, fills out paper work, take their picture, make their badge, current southwest employees give new hires a new hire packet that has a t-shirt lanyard passport and a personal note, they all learn a dance, participate in karaoke, play interactive games,
According to the case study on Cirque du Soleil, employees value the opportunities that Cirque de Soleil gives them such as working with the best in their respective fields
True
According to the case study on Four Seasons, when taking over a hotel, Four Seasons approaches transforming the culture of the organization by hiring and promoting employees with what the company views as the right culture and attitudes.
True
Companies that sustain success consistently operate above the zone of tolerance
True
Google has an reputation for caring about employees' welfare and emphasizing corporate social responsibility.
True
Reviewing core values and the company mission increases moral and recreates excitement for the brand
True
According to the video about Starbucks, how did Starbucks conduct core curriculum reinforcement training?
a three-hour store shutdown, company-wide, for training sessions.
Customer Relationships
are a crucial element to the service company because 1) Encourages repeat business 2)Helps market the company through word of mouth 3) Increases chances of add-on sales
Trust-Based Relationships
are valued relationships that last, helping the company control its destiny and perpetuate itself.
Cirque du Soleil offers a wide range of business including what?
circus show, feature film, publishing and merchandising
what does it mean to 'Control Customer Value Creation'?
controlling processes that directly affect customers' perceptions of quality and value
Sharing the Profit
gives employees a feeling of ownership and responsibility for the company's success
According to the video about Google, why does Google try to avoid bureaucracy?
in order to give its employees autonomy to work on their projects.
Giving employees Autonomy
means trusting employees with decision-making and idea generation Ex. Google empowers their employees to be successful: allows them to get their products developed very quickly; have a lot of autonomy over their products; you are always able to give you insight and ideas; hire people who are very good; hire people who are very entrepreneurial and driven; they have a lot of visibility which allows them to make a difference; makes it fun to go to work and get things done
How does Miller SQA control customer value creation?
stores value-creating knowledge in one technology system rather than in the heads of over 1,000 independent sales representatives
How does Hilton develop relationships with its customers?
through its rewards program, HHonors: rewards include free hotel nights, experience getaways, dream vacations, premium merchandise, room upgrades; over 3,900 hotels; points and miles for the same stay or extra points; iphone app to take personalized attention to order room service; 10 hotel brands
Trust of a company is formed when?
when the company meets customer expectations with service and quality consistently
