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You have just been given the opportunity at OTTC to build a new website for the company to improve customer contact and service. Based on the services and products they offer think about how you will address customer service and how you will create customer loyalty.

Respond to the following checklist items based on this scenario regarding the new website to be made:

Assignment Checklist:

• Define customer satisfaction and customer loyalty regarding the website.

• Discuss the differences between customer service and customer loyalty.

• Describe extraordinary approaches to customer service.

• Describe how customer loyalty is earned.

Assignment Directions:

Submit your answers to the questions in a double-spaced paper, no more than three pages long, to the Dropbox

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Jamar Ferry
Jamar FerryLv2
28 Sep 2019

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Assignment Instructions: The founder of On-Time Technology Products is being pressured by their biggest investor to use cheaper parts that will not last more than one year. Based on your reading of ethics in this PowerPoint©presentation, apply ethical reasoning to respond to this big investor regarding your company’s ethical position on using these cheaper parts.

Checklist:

•Review the PowerPoint presentation on consequential, non-consequential, and virtue ethics. below copied in word

•Then using an ethical perspective from the above presentation, and apply it to respond to the big investor.

•Discuss how your ethical response also complies with providing exceptional customer service. Scenario Background:

On-Time Technology Products (OTTP) sells products relating to time. Their product line consists of a huge assortment of clocks, watches, daytime planner books, and software. Many of their products are unique and innovative. They have been frequently compared to other high-end retailers.. Their products are sold in retail stores, via the Internet, and via catalogs. Their call center is presently in Dayton, Ohio. Mark MacGibson is the new President for On-Time Technology Products. Mr. MacGibson is a graduate from Kaplan University’s MBA program. Mary Graff has a Bachelor’s degree in Business from Kaplan University and is the supervisor for the Customer Service Representatives. Mr. MacGibson and Ms. Graff’s plans are to take On-Time Technology Products to a new level of exceptional customer service.

PowelPoint below in word..

An Overview of Consequential, Nonconsequential and Virtue Ethics Theories

What is Ethics?

Ethics is the study of those values that relate to our moral conduct, including questions of good and evil, right and wrong, and moral responsibility.

Consequentialist Theories:

Consequentialist theories claim that the morality of an action depends only on its consequences.

It only considers the result of actions and not principles or rules in determining morality.

Types of Consequentialist Theories:

Ethical Egoism argues that each person should act in their own self interests.

Act Utilitarianism argues that each person should act in a way that produces the greatest happiness for everyone.

Rule Utilitarianism argues that each person should follow rules that tend to produce the greatest happiness for everyone.

Weaknesses of Consequentialist Theories:

Requires person to predict the future and all possible outcomes.

Can easily be used to justify questionable actions (the end justifies the means).

Nonconsequentialist Theories:

Nonconsequentialist theories claim that the morality of an action depends on principles or other factors that are not related to consequences.

Types of Nonconsequentialist Theories:

Divine command theory argues that we should obey the laws of God.

Kant’s Categorical Imperative states that we should always act in a way that is based on reason, duty, and would be considered ethical if everyone acted in the exact same way. Also, people should be treated as an ends and not as a means.

Weaknesses of Nonconsequentialist Theories:

Divine Command requires a high degree of interpretation skills.

Variety of religions makes standards hard to develop for all.

Can be rigid and ignore outcomes

Virtue Ethics:

Virtue ethics seeks to identify character traits of a moral person and develop those with the idea that the virtuous person will act in a virtuous manner. It does not look to principles or consequences.

Virtue ethics was developed among the ancient Greek philosophers such as Aristotle and Confucius.

Virtue ethics enjoys modern support as an approach that avoids many of the problems with Consequential and Nonconsequential ethical theories.

Weaknesses of Virtue Theory:

Difficulty in determining just which characteristics are virtues

Justification for respecting a virtue usually brings one back to either consequences or principles.

Difficulty in applying to specific situations.

Conclusion:

One theory is not enough to cover all possible choices.

Theories can be synthesized to fit one’s philosophy of life.

One theory’s weakness is another’s strength.

Explain how the value chain paradigm helps stakeholders to improve the operational efficiency and effectiveness of the organisation. Draw a daigram input-output framework and describe how the case study illustrates its value chain paradigm based on the input output framework.

“I think the waiter wrote in an extra $25 tip on my Sunshine Café bill after I received and signed my credit card receipt,” Mr. Mark Otter said to the restaurant manager, Brad Gladiolus. “Mr. Otter, mail me a copy of the restaurant receipt and I’ll investigate,” responded Mr. Gladiolus. “I don’t have the receipt—I lost it—but I have my monthly credit card statement,” replied Mr. Otter. Mr. Gladiolus hesitated, then said, “Mr. Otter, I don’t see any way to investigate your claim, so there’s nothing I can do.”

Mr. Gladiolus sat down at his desk and sketched out possible causes of this service upset as follows:

The customer is responsible for adding the bill and tipping properly, writing legibly, retaining the second receipt, and drinking alcohol responsibly.

The employee is responsible for typing the bill in the register/computer correctly, going back to the customer if the tip is unreadable and verifying the correct amount, and being honest.

The restaurant manager is responsible for investigating the store’s receipt history and finding this transaction; auditing the source of the error if possible, such as a mistyped decimal or extra zero; and contacting the credit card company and customer to resolve the issue.

The credit card company, a third-party provider in this value chain, is responsible for providing records of the electronic transaction, helping resolve the issue, and issuing a debit or credit to the customer and/or restaurant if needed.

Company Background

Abby Martin’s parents came to Florida from Chicago in the 1960s. Her parents bought land in the Cape Coral area. Later they opened a hotel on Fort Myers Beach, and Abby was part of the housekeeping staff, her first job. By 17, she was running the hotel on her own. Today, she owns and operates six restaurants and a by-the-sea hotel. The restaurants are located in shopping centers next to high-traffic facilities such as movie theaters, groups of retail stores, and other clusters of restaurants. Abby uses four different restaurant concepts (i.e., facility décor, size, and layout; prices, menus; music and bands; wine list, lounge areas, etc.) for these six restaurants, depending on the location and local market demographics.

Abby has other investments but loves the challenge of managing restaurants. “I have a great passion for finding a need and meeting it,” she said. “The secret to our restaurant success is customizing the business to local needs and being very consistent. Offer good food and service at the most reasonable price you can afford. And know that even if you offer all those things you can still fail. The hospitality business is the hardest business, period. You can never sit back and coast.”

In her spare time, she is a prominent community figure involved in activities such as helping build the Ronald McDonald House, fund-raising for the hospital cancer foundation, and serving as chairperson of the local board for the Salvation Army. She likes the Salvation Army because it runs a lean operation, with only six cents spent on management for every one dollar in donations.

Day-to-Day Service Management

Sunshine restaurants are normally open seven days a week from 11 a.m. to 10 p.m. Lunch prices are in the $10 to $20 range and include such entrees as a wood-grilled hamburger, seafood salad croissant, and sesame-crusted yellow fin tuna. Dinner prices range from $20 to $30 per person and include dishes such as shrimp and scallop scampi, red snapper picatta, and wood-grilled filet mignon. Each restaurant keeps about 20 to 30 popular wines in stock, such as a Cakebread Chardonnay. Wine, liquor, and some food items are ordered in bulk to take advantage of volume-price discounts and shipped directly from the suppliers to individual restaurants. All other items are ordered by the restaurant chef and general manager for each unique restaurant.

Abby, like most entrepreneurs, has her own approach to quality control. She notes that “I visit my restaurants every few days, and as I walk in I immediately begin to watch customer faces and behaviors. I try to see if they are happy, talking, smiling, and enjoying the food and surroundings. I look at their posture and facial expressions. I often talk with customers and ask if everything was to their liking. I ask my employees—waiters, bartenders, kitchen help, managers, and chef—if they have encountered any problems or service breakdowns. I look for untidy floors, tables, and restrooms. I try to learn from negative customer comments or complaints. My employees know that I will try to help them solve any problem—they trust me. I take the pulse of the restaurant in a short visit. I meet weekly with the restaurant chefs. I manage quality by observation and close contact with all of the people in the restaurant. At night I go over the financials and sales data.”

A typical Sunshine restaurant has a core staff of about 12 employees, consisting of a manager, an assistant manager, chef, assistant chef, four waiters, two bartenders, and two helpers in the kitchen. During peak season each restaurant hires about six to eight additional employees. Peak demand is when the “snow-birds” arrive in southwest Florida from November to April. During peak demand, the populations of Lee and Collier counties double to almost 2 million people.

Abby’s entrepreneurial approach to managing the business results in about one negative customer complaint per 100 customer comments. The complaints are nearly equal in focusing on food or service quality. Contribution to profit and overhead per restaurant is 35 percent. The typical customer averages one visit every two months, and the customer defection rate is in the 5 to 10 percent range, but is difficult to estimate given the seasonal nature of the business.

Long-Term Strategic Issues

Abby Martin has established a reputation in southwest Florida for superior service and food quality in her restaurants. She was considering expanding her restaurants to the Tampa and Orlando areas to leverage her expertise and grow the business for the family. She wondered whether she could maintain the proper financial and quality controls with more restaurants and whether to franchise or not. Due to the 2007–2009 credit crunch and high foreclosure rates, there were plenty of commercial properties in good locations for restaurants, and prices were at all-time lows. Abby thought it was now or never in terms of expanding up and down the west coast of Florida. She envisioned as many as 20 Sunshine restaurants in the next five years.

Decisions

Abby wondered when she would ever get the time to analyze these issues. It was not easy keeping up with her businesses. She knew that superior day-to-day food and service quality determines repeat business, so she had to successfully resolve this customer complaint about the waiter adding a $25 tip, while trying to plan for the future. She happened to be at her hotel, so she sat down in a beach chair and watched the brilliant colors of a sunset over the Gulf of Mexico. She began to write down a number of questions she had to answer soon.

Question 1

In order to compete effectively in today’s increasingly globalised market, many companies have used features related to environmental sustainability to “win” new customers.

In relation to the company you work in or one that you are familiar with,

(a) Explain the term “sustainable business strategy” and how this strategy relates to operations and supply chain management.

(8 marks)

(b) Identify an operations and supply chain-related "disruption" that impacted the company. What could the company have done to minimise the impact of this type of disruption prior to it occurring?

(7 marks)

(c) You have recently been appointed as the production manager of the company. To meet the demands of its global market, the company has set up production locations in two different countries. One is located in the USA while the other is located in a Southeast Asian country. You want to find out what is the productivity of the current operations at the two production locations. You have obtained the following results from the production supervisor (Table 1).

Table 1

*FC – Foreign Currency where $1 = FC 10

USA

Southeast Asia

Sales (units)

100,000

 20,000

Labour (hours)

20,000

 15,000

Raw materials (currency)

 $20,00

*FC 20,000

Capital equipment (hours)

 60,00

5,000

(i) Calculate the multifactor productivity figures for labour and capital together. Do the results make sense?

(5 marks)

(ii) Calculate raw material productivity figures (units/$) and explain any differences in these figures.

(5 marks)

Question 2

(a) A Japanese fast food restaurant, OiShi is concerned about its ability to provide quality service as they continue to grow and attract more customers. Its management has collected data from Friday and Saturday nights, its busiest times of the week. During these nights, about 75 customers arrive per hour for service. Given the number of tables and chairs, and the typical time it takes to serve a customer, the restaurant can serve on average about 100 customers per hour.

Analyse the restaurant service process in these nights where the data are collected and comment on whether the services are in the zone of service, the critical zone, or the zone of non-service? (Refer to Figure 2 when providing your answers)

Figure 2: Relationship between the Rate of Service Utilisation (r) and service quality

(4 marks)

The management anticipates that the restaurant’s demand will double in one year as long as it can provide good service to its customers. How much will the restaurant have to increase its service capacity to stay out of the critical zone?

(4 marks)

(b) Describe the characteristics of service processes of a typical fast food restaurant based on your service encounters.

(10 marks)

(c) Examine the strategies to manage service encounters. You should provide details on any TWO (2) possible customer-introduced variability in the service processes and propose THREE (3) accommodating strategies to effectively address these variabilities.

(7 marks)

Question 3

(a) Consider your organisation or one that you are familiar with that plays a role in the global supply chain network. This organisation can be a supplier, manufacturer, distributor, logistics service provider or retailer in a particular industry (e.g. fast-moving consumer goods, electronics, oil and gas, and pharmaceuticals). In your answer, you should relate the concepts and strategies in operations and supply chain management to the work environment.

Explain how the aggregate operations plan can help match supply with demand and optimise operational costs in this organisation.

(4 marks)

Provide TWO (2) strategies that can be used to influence demand and TWO (2) strategies that can be used to adjust capacity to match demand.

(8 marks)

(b) The development of web-based tools has allowed companies to collaborate on a larger scale and perform its operations and supply chain activities with greater ease. Demonstrate how collaborative techniques can be used to forecast demand. You should provide details such as the various stages of activities that are involved.

(8 marks)

Discuss the risks of being too reliant on the internet as a collaboration tool in demand forecasting and management.

(5 marks)

Question 4

Kee Wah Store sells a variety of exquisite European cookies and candies to the consumer market. The demand for cookies and candies is volatile and varies from month to month. The store orders from its suppliers. The lead time is normally one month, mainly consisting of the sea freight transportation time from Europe to Singapore. The store keeps a certain level of inventory at its warehouse.

The total demand for chocolate cookies is estimated to be 7,200 packets a year. The chocolate cookie packet is sourced from the supplier at $5 per packet and is sold to the end consumer at $15 per packet. It costs $100 to place an order to the supplier, and costs 20% of unit cost to store a packet of chocolate cookies for one year.

(a) Give FOUR (4) reasons why Kee Wah Store needs to maintain some inventory at its warehouse.

(8 marks)

(b) Examine the inventory situation for Kee Wah Store by applying the EOQ model to solve for order quantity and reorder point. What is the annual ordering cost, annual holding cost and total annual cost?

(10 marks)

(c) One supplier, Nee Ann Import Inc., approaches Kee Wah Store and proposes that it could shorten the lead time from one month to one week using airfreight.

What are the factors that Kee Wah Store needs to consider before deciding to accept or reject Nee Ann Import’s offer?

----- END OF PAPER -----

(7 marks)

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