MIDTERM EXAM

MD RUBAYAT UL ISLAM

Short Essay Questions

1. An overall cost leadership strategy is attained by designing efficient-scale facilities,

performing tight costing and overhead control and most often by deploying innovative
technology. 100 Yen sushi house deployed conveyor belt food or sushi delivery system
around the ellipsoid service area. This was an innovative technical approach, as it is an
automated process it reduced the need of waiter/waitresses and thus saved money for
the restaurant. All the sushi plates are priced same. So, customer or cashier did not
need to worry about which food costing them how much. As a result, there was lesser
workforce needed as cashier and customer also needed less amount of thoughts
deciding which sushi to eat. The owner had clear idea about how many different types
of sushi needed to be prepared beforehand through demand analysis resulting in a less
waste of inventory. Furthermore, the stores refrigerator capacity was kept low resulting
in low storage. Instead they used to take supplies multiples times a day from vendors.
As a result, money was saved by not buying extra refrigeration systems and the
inventory carrying cost for the shop was kept low.

2. There are five types of gap in service operations. Customer satisfaction is dependent on
minimizing GAP 1 to GAP 4 which are associated with the delivery of service. These
GAPS are defined as market research gap, design gap, conformance gap and
communication gap. So, GAP 4 is the communication gap. Though mitigating all the gaps
are important for any business communication gap looks most important to me. If the
customer thinks he/she is not getting the service, he was supposed to get this kind of
GAP arises. In a simple word the communication gap is the gap between what was
promised to customers through advertising and what gets delivered.
GAP 4 can occur due to several reasons:
 - Overpromising by the business to the customer
- Insufficient communication between the operations and advertising teams
Customer gets dissatisfied due to this communication gap and sometimes may turn to
alternative supplier in extreme cases.
Example of GAP 4:
Let’s assume MacDonald’s launches a new burger and does so much advertising of that
burger claiming that it is one of their best burgers which will fill their customers hunger
in low price. At first MacDonald’s see an increase in selling rate of that burger. But after
a while they see that the burgers sell has reduced sharply. This can mean that the
customers are dissatisfied and feeling that they are not getting what they were
promised. The customers might think the burgers looked bigger in the advertisement or
the burger is simply not the price tag worthy. So, there is a communication gap. This
communication gap can be measured by different kind of surveys or promotional offers
to get to the customer to know about the burger, its taste and how much satisfied the
customer is with the burger.

3. For manufacturing organizations it’s easy to define supply chain as it involves procuring
raw material, processing them and distributing the finished products to customers.
However, in service organizations, customers are primary suppliers of input who give
their belongings, mind and information. This idea of customers being suppliers is
referred to as bidirectional supply chain in service organizations.
Boomer Technology Circle is a consulting and accounting practice firm that services
large and small clients all across USA. Initially the founding members of BCI visited the
offices of different client to provide consulting services, but as the number of clients
increased in a geographical area, the clients approached BCI for their services. Then BCI
formed the BCI circle. This circle had a cluster of client organizations in a particular
geographical area. Round table with client organizations was organized, where clients
shared their concerns and discussed likely solutions. There were several round tables of
different customers in a month and competing organizations were barred from
 attending events on the same day. Issues related to accounting industry, sharing of
information and best practices in a breakout sessions and presentations were addressed
in these circles. These circles demonstrate the idea of bidirectional service supply
relations, as it develops the idea of simultaneous consumption and production. Thus,
getting clients at a round table helps optimizing bidirectional service supply, as it is in
the interest of the customer as well as the service provider.

Essay Questions

1. Elements of Strategic Service Vision:

Target Market Segment:

Alamo mainly targeted the people living in Austin. The second run films were picked to
attract people ranged from 25 to 40 while the cult films were kept for attracting the age
range 18-30. Tim personally maintained the website to answers different questions and
be present after the show to communicate with the customers.

Service Concept:
Alamos ticket price was only 4 dollars. As a fact, it was cheaper and affordable then
most other theaters. Alamo also provided food without any interruptions giving the
customer a unique movie experience. Second run films and cult films were shown in
weekends trying to attract specific set of customers for unique experience.

Operating Strategy:
Customers are served food and alcohol in their seats without any hassle is an innovative
unique business feature Alamo had. ended advantage of having a table for the
customers to place the food. Alamo tried to include more food items to attract more
 customers and they also modified list of movies having the target to attract different
type of customers.

Service Delivery System:

Because of the unique feature of having food and alcohol in theatre more customers
went to Alamo. Customers ordered in paper slips which were later processed by the
waiter/waitress without any interruption to customers. Alamo had skinny tables for
customers so that can serve about 215 customers.

2. Service qualifiers, Service winners and Service losers for Alamo Draft house would be
following: -
Service qualifiers:
i) Different types of movies like second run films and cult films
ii) Special events with guest speakers

Service Winners:
i) Low priced tickets
ii) Wide range of food and alcohol
iii) Delivery of the food and alcohol to the seat without any interruptions
iv) Location of Alamo

Service Losers:
i) Limited seating capacity
ii) No free parking close to the draft house

Alamo provided cheap and affordable ticket while serving food and alcohol to the
customers while they are watching the movie without interruption. The location of alamo is in
downtown so it also plays a major role in attracting more customers. Based on all these
information provided in the text, If they keep on this type of service ongoing purchase decision
criteria would be appropriate.