Please refer to the case overview in Units 1 & 2 for the business premise and situation. This week, you will continue to work on The Broadway Café as it struggles to compete in the 21st century.
Each week you will submit your response to the business situation presented. NOTE: There are two parts to this week’s milestone. Use an APA formatted paper with a Title page and a References page. Your paper should be double-spaced and written in Times New Roman size 12 font. The paper will be written in an essay format. Do not use a question and answer format.
The average company spends nearly half of every dollar it earns on production needs—goods and services it needs from external suppliers to keep producing. A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.
In the past, companies focused primarily on manufacturing and quality improvements within their four walls; now their efforts extend beyond those walls to influence the entire supply chain including customers, customers’ customers, suppliers, and suppliers’ suppliers. Today’s supply chain is a complex web of suppliers, assemblers, logistic firms, sales/marketing channels, and other business partners linked primarily through information networks and contractual relationships. SCM systems enhance and manage the relationships.
Customer relationship management (CRM) involves managing all aspects of a customer’s relationship with an organization to increase customer loyalty and retention and an organization’s profitability. As organizations begin to migrate from the traditional product-focused organization toward customer-driven organizations, they are recognizing their customers as experts, not just revenue generators. Organizations are quickly realizing that without customers, they simply would not exist and it is critical they do everything they can to ensure their customers’ satisfaction. In an age when product differentiation is difficult, CRM is one of the most valuable assets a company can acquire. The sooner a company embraces CRM, the better off it will be and the harder it will be for competitors to steal loyal and devoted customers.
Making Business Decisions I
Business is booming. The Broadway Cafe is operating better than ever, and you have achieved your goal of driving operating costs down, which helps to drive revenues up. One of your best new products is a small coffee press from China. The customer can create a drawing on a special piece of paper that is sent to China and created as the outside of the coffee press. Customers are ordering the presses for everything from children’s drawing for mother’s day presents to marriage proposals. You also have many customers participating in the coffee-of-the-month and tea-of-the-month club where they receive two pounds of a unique blend each month from Brazil Beans and China Teas.
Yesterday, a dock workers union strike began and shut down all of the west coast shipping docks from San Francisco to Canada. Work will only begin when the union agrees to new labor contracts, which could take months. You need to quickly assess the impact of the west coast dock shutdown on the cafe.
Making Business Decisions II
JetBlue took an unusual and interesting CRM approach by using YouTube to apologize to its customers. JetBlue’s founder and CEO, David Neeleman, apologized to its customers via YouTube after a very, very bad week for the airline: 1,100 flights canceled due to snow storms and thousands of irate passengers. Neeleman’s unpolished, earnest delivery makes this apology worth accepting. However, then again, we were not stuck on a tarmac for eight hours. With all of the new advances in technology and the many ways to reach customers, do you think using YouTube is a smart approach? What else could JetBlue do to help gain back the trust of its customers?
The Broadway Cafe is experiencing some unusual issues. You have implemented four new espresso machines, and it is taking employees time to get used to using the new machines. You also have four new employees who are getting used to the many different cafe machines. During peak hours the orders for frappuccinos and cappuccinos is increasing, causing long wait times and lines for customers. You can tell that customers are frustrated and you want to address their concerns as you get your workforce up-to-speed on the new equipment.
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