Saturday, July 14, 2012

KFC STRENGHTS AND OPPORTUNITIES

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The following is a Process Map for measurements of PJ’s coffee and Tea Co and the metrics selected. The product consists of the customer’s needs which include reliability, quality, and variety.

Reliability- The internal metric used for reliability was percent of returns or percent of remakes. The metric is appropriate because the customer depends on the service to be reliable, which is the ability to perform the promised service dependably and accurately. By measuring the percent of returns or remakes, this gives the service provider a look at how well they are serving their guests. If they continually have returns or remakes of items, they can conclude they are not efficiently providing a reliable service and thus need to improve this service quality. This measurement could be put into effect by having a computer system that records the number of remakes and reorders.

Quality- The internal metric used here was the percent of items repurchased and the number of repeat customers. This is appropriate because when the quality of a service or its products are absent and do not meet the customer’s expectations, the quality of service perceived by the customers is likely to suffer. When the quality is met and it reflects the consumers expectations, their perceptions are enhanced and purchase is likely to occur. By measuring the percentage of items repurchased, management will know what consumers view as quality products and therefore are repurchasing. This measurement would take place by having a system that records the items as they are being purchased. The system would graph the sales and inventory of a certain item that day as well as compare that item to another item’s sales and inventory. Management could then view which items are being repurchased more often and which are lagging in sales, which might represent poor quality.

Variety- The percent of different items was selected as a metric for measurement. This measurement was an appropriate selection because some consumers want variety and since consumers do want variety it is imperative that managers are aware of this and provide many options within reason. Managers would keep certain items that do well while eliminating others that do poorly. This measurement would take place by taking an inventory of the different items and keeping track of those items that are sold in the store as well as the drive thru. Management could sample its customers and directly ask if they feel there is enough variety among the menu at PJ’s. They could ask what items could be added to improve sales or what items could be eliminated to ultimately reduce costs.

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Another process is explaining, which consists of knowledge and clarity.

Knowledge- The metric that was chosen was managerial observation. This was appropriate because although hiring the right people and training them prepares them, actual knowledge is measured by observing or testing. In this case it is observation. If the employee is performing an action incorrectly or misinforms the customer, the manager is there to correct them. This measurement would take place by having a trained manager on duty at all times

Clarity - This customer need is one that is very important for both the customer and the employee. Whether the customer is at the drive thru or is face to face with an employee, this is the first point of service contact or interaction and could determine if a sale is made or not. This may be the time when customers form opinions about quality of the service due to friendliness of employees and other factors. In this example, clarity is illustrated as a customer need and the internal metric is percentage of times an employee has to repeat themselves. This was an appropriate selection because it is important for employees to speak clearly for customers to understand so they perform their role as a customer. If the employee hands them a cup and tells them to serve their own tea and does not speak clearly, the customer cannot and will not effectively perform their job. Therefore this measurement can implemented by managers having employees role play to see if they can perform their role as desired service providers.

The process of service consists of timeliness, convenience, and consistency

Timeliness- The method that was chosen was the average time it takes for a customer to enter and leave the store. This was appropriate because some consumers consider all the benefits they receive in an exchange as well as all sacrifices such as time and effort. Since service providers cannot completely control the number of customers and the length of time it will take for each customer to be served, customers are likely to wait to receive the service. Service providers need to be aware that most consumers hold a range of acceptable times for certain services. If a service consumes that time period they may get frustrated and leave. The measurement would be implemented by installing digital clocks next the register and above the drive thru window. The manager would set a desired time for employees every time an order is placed and the employees would have to meet or beat that desired time.

Convenience- The metric that was chosen was location and hours of operation. There are convenience costs of services. Many customers may have to travel to a service which may become inconvenient for them. If service hours do not coincide with the customer’s time availability, they may have to rearrange their schedules. This measurement would take place by managers actually measuring the percentage of customers from their target market who visit their location of business, if it is not many, they could think about offering delivery. The hours of operation could be measured by the amount of customers who visit during those times or those who complain about not being open until a certain hour.

Consistency- The metric that was chosen for this customer need was the percentage of repurchases or straight rebuys. A consumer wants company to have the same quality products every time they shop there. They want service quality and for it to be consistent. The selected metric is appropriate because if their expectations of quality are met at least ninety percent of the time they are likely to repurchase a product or service. Many times with convenience goods such as coffee and food, consumers will do a straight rebuy. As mentioned in the section of quality this measurement would take place by having a system that records the number of identical items repurchased. They are then compared to see which are being purchased more often.

The process of sales consists of stable prices, customization, and value.

Stable Prices - The metric used was percent of increased revenue. Price has to be determined carefully since buyers are likely to use price as an indicator of service quality and costs. Prices too high or too low may set expectations too high or lead to inaccurate thoughts about the quality of the service or product. Consumers expect to have stable prices when purchasing convenience goods such as coffee and food. With stable prices companies aim to retain and gain loyal customers. With loyal customers comes increased revenue through serving them over time. This measurement would take place by measuring and comparing the companies revenues from one year to the next to see if the revenues increased or decreased.

Customization- The percentage of products customized was the internal metric and is appropriate because through customization a firm can create customer loyalty by having the knowledge of what the customers want and expect in the service or product. Through the percentage of customized products, the firm knows exactly how many items they had to develop to fit the customer’s needs. The measurement would take place by having a button on the computer system that rings up the order as other and employee manually inputs the desired order. Management could look at this and think about possibly incorporating this creation onto the existing menu.

Value - Value can be defined by the consumer in many different ways and it is the buyer’s perception of total value that prompts the willingness to pay a particular price for a service or product. Here we define value as the quality the consumer gets for the price they pay. While the consumer may want convenience, they still wish to receive a high quality item for the price they pay. The company has to present benefits to the consumer. If the firm does this the consumer may translate his perception of the service into value. The internal metric of measuring the percentage of satisfied customers is appropriate because by measuring these customers the firm can get an idea of how their service is perceived and valued. The measurement would take place by using quantitative such as surveys to monitor and track the service performance and to close the gap between customer expectations and perceptions. Managers could walk around the store ask the customers if their service and products were what they expected and how they could possibly change to increase their value. Comment cards could be placed beside the chairs and tables for the customers to fill out and return to management.

The process of delivery contains timeliness and accuracy.

Timeliness- Again, timeliness correlates with responsiveness which is the willingness to help customers and to provide prompt service. Responsiveness and timeliness is communicated to customers by the length of time they have to wait for assistance, answers to questions, or attention to problems. The metric of the average time it takes to make and deliver order was chosen so the company can record the time it take from the time a customer orders an item to the time it takes for them to receive it. By improving this time a customer might notice the service performance and get their attention in a positive way and may exceed their expectations of adequate service. The measurement would take place as mentioned above, by placing a time digital time next to the register and above the drive thru window. Management will set a desired time for the service to be performed. When an order is placed the clock is set and employees need to meet or beat the expected time frame for performance of the service.

Accuracy- accuracy also correlates with reliability which would be for the provider to perform the service dependably and to the standards promised. The internal metric that was chosen for this was the percent of correct orders. This metric is appropriate for the provider to keep track of the number of returns. Customers want to do business with companies that can keep their promise about services they say they can provide. Many companies that do not provide the service that customers think they are buying fail their customers and thus may lose profit. The measurement would take place by having a system that records items when they or are returned or remade. This way management could view the items that employees are having trouble making or items that the customers were not satisfied with. With this information in hand, management could either think about retraining the employees or deleting an item from their menu and save costs.



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