Anyone who has signed up for cell phone service, attempted to claim a rebate, or navigated a call center has probably suffered from a company's apparent indifference to what should be its first concern: the customer experiences that culminate in either satisfaction or disappointment and defection. Customer experience is the subjective response customers have to direct or indirect contact with a company. It encompasses every aspect of an offering: customer care, advertising, packaging, features, ease of use, reliability. Customer experience is shaped by customers' expectations, which largely reflect previous experiences. Few CEOs would argue against the significance of customer experience or against measuring and analyzing it. But many don't appreciate how those activities differ from CRM or just how illuminating the data can be. For instance, the majority of the companies in a recent survey believed they have been providing "superior" experiences to customers, but most customers disagreed. The authors describe a customer experience management (CEM) process that involves three kinds of monitoring: past patterns (evaluating completed transactions), present patterns (tracking current relationships), and potential patterns (conducting inquiries in the hope of unveiling future opportunities). Data are collected at or about touch points through such methods as surveys, interviews, focus groups, and online forums. Companies need to involve every function in the effort, not just a single customer-facing group. The authors go on to illustrate how a cross-functional CEM system is created. With such a system, companies can discover which customers are prospects for growth and which require immediate intervention.
The ongoing problems in business leadership over the past five years have underscored the need for a new kind of leader in the twenty-first century: the authentic leader. Author Bill George, a Harvard Business School professor and the former chairman and CEO of Medtronic, and his colleagues, conducted the largest leadership development study ever undertaken. They interviewed 125 business leaders from different racial, religious, national, and socioeconomic backgrounds to understand how leaders become and remain authentic. Their interviews showed that you do not have to be born with any particular characteristics or traits to lead. You also do not have to be at the top of your organization. Anyone can learn to be an authentic leader. The journey begins with leaders understanding their life stories. Authentic leaders frame their stories in ways that allow them to see themselves not as passive observers but as individuals who learn from their experiences. These leaders make time to examine their experiences and to reflect on them, and in doing so they grow as individuals and as leaders. Authentic leaders also work hard at developing self-awareness through persistent and often courageous self-exploration. Denial can be the greatest hurdle that leaders face in becoming self-aware, but authentic leaders ask for, and listen to, honest feedback. They also use formal and informal support networks to help them stay grounded and lead integrated lives. The authors argue that achieving business results over a sustained period of time is the ultimate mark of authentic leadership. It may be possible to drive short-term outcomes without being authentic, but authentic leadership is the only way to create long-term results.
Zhang Ruimin's leadership of the renowned Haier Group began before the Chinese company even carried that name. More than 20 years ago, Zhang was appointed director of the Qingdao Refrigerator Factory, which faced enormous debt and didn't seem likely to survive, let alone prosper. The main challenge in those early days was boosting the morale of his workers, who had gone unpaid for months and grown deeply dispirited. Zhang borrowed money so he could catch up on payroll and make other improvements--and his employees took heart. Once he had won their goodwill, Zhang explains in this first-person account, he started demanding good work. There was very little discipline in the factory at that point. Rules and regulations existed in writing but had never been seriously upheld. Zhang guaranteed the payment of salaries, but only on the condition that people obeyed the policies he established--some as simple as "Stealing company property is prohibited." Those who violated factory rules could be given demerits or even deprived of factory membership (that is, no longer allowed to be part of the company's collective ownership). Far from intimidating employees, this boost in discipline gave people a sense of security and hope. Now that Haier is a world-class operation competing in global markets, Zhang's focus as chief executive has shifted from setting a strong example to giving employees room to make their own decisions and realize their goals. To that end, he is striving to create an organizational structure that is as flat and has as few boundaries as possible. He is also emphasizing what will serve the market, not what will please someone further up in the company hierarchy. Employees, he believes, should feel that they have a customer to answer to, more so than a superior.
Cheryl Jamis, the high-powered marketing director for a large UK-based clothing retailer, seems to have it all--corner office included. What's more, she loves her job. But her professional dedication is beginning to jeopardize another job she is passionate about: being a mom. As Cheryl's career has grown, so has her daughter, Emma. And while juggling the two has never been easy, it's been manageable. Emma had been taking a backseat to whatever work crisis loomed at the moment, but now that she is seven, it is becoming harder to put her on hold. Marcus Addison, Cheryl's boss, seems sympathetic to her efforts to succeed as a professional and a mother. So when she suggests reducing her hours, she is taken aback by his response: "You'll just end up working the same hours for less pay, you know. Your job is a big, responsible one. It just can't be done in four days, let alone three." Then he implies--albeit vaguely--that she could soon be on the next step up the ladder. Before Cheryl has time to digest that possibility, however, Marcus tosses her yet another curveball: a chance to take his place on a business trip to the United States--a great opportunity. Though it means canceling a long-overdue weekend away with her daughter, Cheryl accepts--then almost immediately regrets it. When she goes to Marcus's office to hash things out, he preempts her speech with one of his own: The promotion he'd expected for her is off the table, at least for the time being. Now Cheryl has to make a decision: Should she stick it out or chuck it all? Commenting on this fictional case study in R0702B and R0702Z are Monica McGrath, an adjunct assistant professor of management at the University of Pennsylvania's Wharton School; Rebecca Matthias, a cofounder and the president and COO of Mothers Work; Robert J. Maricich, the CEO of Century Furniture; and Evelyne Sevin, a Paris-based partner at Egon Zehnder International.
Cheryl Jamis, the high-powered marketing director for a large UK-based clothing retailer, seems to have it all--corner office included. What's more, she loves her job. But her professional dedication is beginning to jeopardize another job she is passionate about: being a mom. As Cheryl's career has grown, so has her daughter, Emma. And while juggling the two has never been easy, it's been manageable. Emma had been taking a backseat to whatever work crisis loomed at the moment, but now that she is seven, it is becoming harder to put her on hold. Marcus Addison, Cheryl's boss, seems sympathetic to her efforts to succeed as a professional and a mother. So when she suggests reducing her hours, she is taken aback by his response: "You'll just end up working the same hours for less pay, you know. Your job is a big, responsible one. It just can't be done in four days, let alone three." Then he implies--albeit vaguely--that she could soon be on the next step up the ladder. Before Cheryl has time to digest that possibility, however, Marcus tosses her yet another curveball: a chance to take his place on a business trip to the United States--a great opportunity. Though it means canceling a long-overdue weekend away with her daughter, Cheryl accepts--then almost immediately regrets it. When she goes to Marcus's office to hash things out, he preempts her speech with one of his own: The promotion he'd expected for her is off the table, at least for the time being. Now Cheryl has to make a decision: Should she stick it out or chuck it all? Commenting on this fictional case study in R0702B and R0702Z are Monica McGrath, an adjunct assistant professor of management at the University of Pennsylvania's Wharton School; Rebecca Matthias, a cofounder and the president and COO of Mothers Work; Robert J. Maricich, the CEO of Century Furniture; and Evelyne Sevin, a Paris-based partner at Egon Zehnder International.
In 2006, Futbol Club Barcelona (FC Barcelona) was one of the world's premier soccer teams. Founded in 1899, the club had experienced ups and downs over its history. Following some great years in the mid-1990s, the club had suffered a decline both financially and in its on-field performance, leading to a crisis in 2003. Traces the causes of this decline, and the actions taken by club management to restore the team's competitive and financial positions. Areas discussed include: governance, organization structure, management, fan experience, media, marketing and merchandizing, the club's social initiatives, and developing the club brand. Discusses the global development of European soccer, and FC Barcelona's efforts outside of Europe. The challenge in 2006 was to strengthen, position, and monetize the FC Barcelona brand globally. Opportunities in Asia, Africa, and Latin America are discussed, but focuses on Major League Soccer (MLS) in the United States, and whether or not FC Barcelona should purchase an MLS club in order to expand into the U.S. market.
A manager at a public accounting firm was contracted to perform a second financial performance review and issue recommendations for improving the performance of California Choppers, a manufacturer of high-end motorcycles. She needed to analyze several financial indicators including liquidity, asset management, long-term debt payment ability, and profitability. Poor performance results and interpersonal difficulties between the owner and chief executive officer were making her job very difficult.
The snack bar supervisor of The Waterview resort in Northern Ontario just had another argument with his boss. He was angry and hated the thought of finishing the remaining four weeks of his summer contract. It was obvious to the supervisor that his boss held a personal grudge against him that was growing in intensity. He wondered how to finally settle their differences. Students will analyse a set of complex issues.
The CEO of Coca-Cola is faced with increasing criticism over the company's handling of alleged human rights abuses in Colombia. A grass roots protest movement known as The Campaign to Stop Killer Coke has built international support for a boycott of Coca-Cola products on college campuses. The campaign centers specifically on the intimidation and murder of union leaders at a specific Coca-Cola bottling plant in Colombia. Coca-Cola asserted that it was not responsible for such abuses. Rather, the violence at the Coca-Cola plant was the product of a political situation that was beyond the company's control. The company further argued that it was in compliance with local labor laws, and had been dismissed as the defendant in lawsuits filed in Colombia and U.S. courts. At the time of the case, Coca-Cola is faced with anti-Coke campaigns at more than 100 college campuses worldwide and official boycotts of its products at a number of large well-known campuses in the United States. In response, the company has undertaken an audit of its bottling plants in Colombia. It also launched a public relations campaign aimed at refuting accusations of human rights violations. The case can be used to discuss corporate ethics, extraterritoriality, marketing and public relations.
This is a minicase, one of 10 in a set of short cases written to illustrate the business benefits companies realize through adopting sustainable business strategies. This minicase discusses the formation and implementation of Nike's sustainability strategy in the 1990s through 2006 including changes to product designs and supply chain policies.
The chief executive officer (CEO) of epost is preparing for a meeting with his successor. Epost, a division of Canada Post, is in a transition and many decisions will need to be made by the successor. With the introduction of the Internet, people are using regular postal services less frequently. Epost was created to generate revenue and to provide customers the ease of paying bills electronically. In 2004, epost acquired its competitor, Webdoxs. Implementing epost posed many information technology (IT) challenges because financial and personal information is exchanged and stored, and, therefore, the service has to be reliable and secure. The CEO ponders several issues as he prepares for his meeting with his successor.
AMD's launch of the Opteron microprocessor in 2003 has allowed the company to make inroads into the lucrative server segment. A long-time follower to Intel, AMD management felt it was in a position to lead the microprocessor industry in new directions. However, in 2006 it was not clear whether Opteron's success in the server segment would translate into success in other microprocessor segments, notably corporate desktop and laptop, and whether the initial success in servers could be sustained in the future. Intel's imminent new product and pricing plans, as well as its existing brand power, could greatly hamper AMD's growth and thwart its new initiatives--which included opening up its architecture for end users to customize and recast its brand identity. Also examines how a company tries to gain competitive advantage through an approach to innovation that emphasizes customer centricity.
Discusses the rise of Clear Channel Communications, Inc. (CC) as the most important radio broadcasting company in the United States. While CC can look back on a glorious past, it faces a multitude of business issues: radio listenership is in decline, media deregulation has come to a halt, and the company's public image is less than favorable.
The fall of 2004 brought exciting news to Love Field, the Texas headquarters of Southwest Airlines. Delta Airlines, one of Southwest's main competitors, had announced that it would dramatically decrease service from the nearby Dallas/Fort Worth International (DFW) airport, cutting the number of daily flights from 250 to a mere 21. Gary Kelly, Southwest's newly minted CEO, thought about what appeared to be a golden opportunity. How could Southwest best capitalize on Delta's withdrawal? As Kelly saw it, Southwest had several options to pursue the new business opportunities. A first was to service the canceled Delta routes from Love Field. A second possibility was to encourage members of Congress to repeal the Wright Amendment, which limited Southwest's flight offerings from Love Field. An alternative to fighting for the repeal of the Wright Amendment was for Southwest to lease the 18 gates that Delta had left at DFW. Kelly carefully considered his options. Was now the time to call his lobbyist?
Describes how companies engage the political and legal system and the rules and ethics associated with doing so. Focuses on the U.S. political and legal system, but also seeks to familiarize readers with lobbying norms and structures in the European Union and Japan.
Students are asked to assess a potential purchaser's personal goals and skills, as well as: financial feasibility, operating capacity and current promotional strategy to determine if a legal courier company should be purchased. Students are expected to develop detailed cash budgets, evaluate current pricing and promotional strategies, and to make recommendations about financing and the number of employees to hire under different volume assumptions.
Kirsti Paakkanen has achieved a celebrity status in Finland for her enigmatic leadership of the Finnish design company Marimekko. Purchasing the company in a state of near bankruptcy in 1991, Paakkanen took several actions to restore profitability and realize growth. As of 2006, the company has sales of $64 million (of which 80 per cent are from Finland) and net profits of $8.4 million. Over the last few years, Paakkanen and her team have focused on growing international sales. Recently, the company has opened concept shops in Japan, United Arab Emirates, Iceland, Sweden and the United States owned by foreign partners. In light of the international expansion, Paakkanen is wondering if any changes to Marimekko's personnel policies and/or organization structure are necessary.
The chairman of Gome Ltd, a well known appliance retail chain, congratulated his management team for their excellent performance over the past year. For three consecutive years, Gome had been ranked the largest electrical appliance retail chain in China, and the second largest overall retail chain. Claiming to be the only true national player, Gome achieved total sales of RMB23.9 billion in 2004 and in 2005 doubled its number of stores to 426. The company's four-year plan is to capture 10 to 15 per cent of the market share nationally. Gome would need to double the number of stores in the coming three years, and more importantly, it needed to work out a strategy to fend off its local and global competitors.