In recent years, Au Bon Pain (ABP), a chain of upscale French bakeries/sandwich cafes based in Boston, confronted a set of human resource problems endemic to the fast food industry (i.e., a labor shortage which made it difficult to attract and maintain quality crew personnel and management candidates, an inadequately trained management staff, and high turnover). To deal with the resulting "cycle of failure" while increasing individual initiative and performance at the unit level, ABP devised a new compensation-incentive system for its store managers--the Partner/Manager Program. Under this program, store managers would be paid a standard base salary plus a share of the incremental profits. The case asks students to evaluate the program by comparing it to ABP's existing compensation system, determining the different ways in which managers from two stores operating under an experimental run of the program achieved their results, and by considering the strategic implications of implementing the program in all of the company's stores.
The Paul Revere Insurance Co. lost its number one position in disability insurance, its main product, and formulated a strategy to regain the lead through a comprehensive quality improvement effort. The case describes the forces influencing the strategic direction of this effort, its structure, and its process over a two-and-a-half-year period. Many issues are raised regarding the design of quality improvement efforts, their implementation, and the continual efforts that must be devoted to them if they are to be an ongoing process. Situation-specific factors relating to this case are explored to determine to what extent this company's method can be duplicated by other service firms. May be used in a comparative analysis of the quality improvement analysis described in Florida Power & Light's Quality Improvement Program.
New competition has led to doubts about Singapore Airlines' excellent reputation for in-flight services. The key to maintaining or improving service is the attitude and proficiency of the cabin crews. The company now discovers that there may be problems in this group. This is a rewritten version of earlier cases by D.D. Wyckoff.