CASAS, MONEIA BRAE E BA 24 – MA

Chapter 5 Case Study: De Mar’s Product Strategy

1. What is De Mar’s product? Identify the tangible parts of this product and its service

components. De Mar offers repair and installation services for plumbing, heating, and air-

conditioning. The tangible parts of this product are the physical parts that constitute the repair

and installation processes. Service components constitute De Mar’s same-day service that

runs 24/7, a single tariff (no extra charges), and a one-year guarantee (as opposed to the usual
30-day guarantee).

2. How should other areas of De Mar (marketing, finance, personnel) support its product

strategy? De Mar’s Marketing should carefully convey the company’s message to the public

about delivering a high value service at reasonable rates. They could create a public image
that will be well-received by people by being honest to their customers that their services

might cost a little more than the usual price because it includes the intangible services that

gives more value to the customer’s money. Consequently, De Mar’s Finance should carefully

monitor competition to keep their prices at a reasonable level. It should also work on creating
alternatives to reduce costs and keep the cash inflows steady. Finally, De Mar’s Personnel

Department should have a careful process of hiring employees. Personnel should undergo

special education and training. During the selection process, De Mar should assess if the

applicants fit into the company profile and can identify themselves with the company’s

philosophy, as De Mar’s high-value services require carefully trained personnel.

3. Even though De Mar’s product is primarily a service product, how should each of the 10

strategic OM decisions in the text be managed to ensure that the product is successful? It is

stated that annual sales increased dramatically over the last 8 years from $200,000 to over $3.3
million, which means that the company strategy has worked well.. To ensure that the product

is continually successful, De Mar could focus on competitive advantage through customer

satisfaction, maintaining their fast and convenient service, consistent price, and one-year

guarantee. Human resources could also work on having a certain requirements, with the job
design having to consider high flexibility, good customer relations, and high qualifications.
 Chapter 6 Case Study: Southwestern University

1. Using at least two different quality tools, analyze the data and present your conclusions.

Based on the data collected from the quality tools, overall grade for Parking was rated B,

Traffic was also rated B, Seating was rated C, Entertainment was rated A, and Printed

Program was rated C. Pricing was closely rated between A and B, and Season Ticket Plans

were highly rated at B. Prices of the concessions were rated B, Selection of Foods at C, and

Speed of Service rated F. It could be deduced from these results that people were moderately
satisfied with the other services but paid a lot of attention to the speed of service.

2. How could the survey have been more useful? Southwestern University could use the

survey results to improve on their facilities next year or next season. Seeing that the speed of

service is regarded with utmost concern as the worst, the management could add more
concession stands, in line also with the complaints that lines are too long. This way, guests

wouldn’t have to wait too long in lines and wouldn’t have to complain about slow service

because there are enough concession stands for everyone.

3. What is the next step? Southwestern University should use the survey results to improve
on their facilities next year or next season. As mentioned, the speed of service is regarded with

utmost concern as the worst, hence the management could add more concession stands.

Guests have complained that lines in concession stands are too long, and this could also be a

contributing factor the slow service. There are just not enough concession stands for everyone.

Management could partner with fastfood chains or other restaurants to put up stalls in the

area so that everyone would have more choices and there would be enough stalls for everyone

to go to, and they wouldn’t have to complain about slow service.

 Chapter 7 Case Study: Rochester Manufacturing’s Process Decision

1. As a production manager for RMC, what do you recommend? As production manager, I

would highly consider shifting to flexible machining system (FMS). Because of the possible

favorability towards FMS, managerial tasks become easier because development, human

resource empowerment, continuance, and organization would be much more easier to track

and to control. However, the high efficiency attributable to this change comes with a risky

expenditure and an unstable project return. I recommend that this shift should be further
discussed by the management to determine if the project return is acceptable, and if the

benefits highly outweigh the costs.

2. Prepare a case by a conservative plant manager for maintaining the status quo until the

returns are more obvious. As a conservative plant manager, ROI is of utmost concern. Even
if the FMS is very efficient in terms of production, the cost and return might not be very

convincing. If the numbers cannot support the change requirements, then it might not be best

for Rochester to shift to FMS because of the increased costs and the plant manager could be

endangered in maintaining the status quo as the returns are very risky.

3. Prepare the case for an optimistic sales manager that you should move ahead with the

FMS now. As optimistic sales manager, the delivery time using Just-in-Time (JIT) concept

could be enhanced. The sales department will ensure that by using the JIT system, work will

be efficient and quality will be enhanced in order to secure a high market share, assuring the

company of increased profitability rate, which in turn increases the ROI.