Roll No…………

End Term Examination: PGDM Term-VI (May 2020)

Subject: Service Operations Management (BM-OP – 08)

Duration: 3 Hours Maximum Marks: 100

Instructions:

1. Attempt all questions.

2. Open Book Examination.

Q. No. Marks
Read Case, “Singapore Airlines” and answer the following questions
1 20
a. Evaluate the method used by SIA to understand the customer expectations
and customer perception. To what extent has it been effective? 10

b. Explore why SIA wants to collect information on complaints as well as

compliments? How would the compliment data be used? 10

Case Study Singapore Airlines (SIA)

SIA employs varied and systematic methods to obtain information from its
passengers, including quarterly passenger surveys and focused group work with its
flyers. The company also uses magazines for frequent flyers, to ask for passengers
reactions to proposed new ideas. It also checks out the service for itself by
conducting on-site audits with test calls to reservations, for example, to see how
service is being delivered. Also when any members of the staff fly in its aircraft they
are asked to submit reports of their travel experiences. Senior staff members must
submit a comment sheet on each flight with their expense account. SIA staff also
monitors their competitors and often go and check out their services.
SIA takes both compliments and complaints seriously; indeed there is a vice
president with responsibility for complaints and compliments. Every letter has to be
acknowledged, investigated and followed up, even letters of compliment. Lam Seet
Mui, the senior manager for human resources explains:
We investigate all complaints. Ten not only do we try to recover the customer
or the situation; we also use it as a learning lesson. If we don’t learn
something from a complaint then we have failed. We also take compliments
 seriously. Not only we disseminate them so that perple can share in the
success, but we try to learn things from them too. They can help us
understand what we need to do to excel.
Sim Kay Wee, the senior vice president responsible for cabin crew added:
We do try to deal with problems at the time they arise. If a problem occurs on
board the crew will try to recover immediately. Any follow up or written
complaint is overseen by the customer affairs department. However we do the
investigation, we find out precisely what happened and report them. We try to
do it personally and quickly.
SIA also produces newsletters for particular groups of staff. Highpoint, for example,
aimed keeping its 8000 in-flight personnel informed about the airline’s latest
offerings and its commitments to passengers. The newsletter has a regular feature
page with about eight or nine extracts from letters – half complaints and half
compliments. An example of each follows:
An example of compliment:
I noticed the service, although in economy class, was professional and better
than any flight I have ever been on, Mis Iris was the most hardworking
amongst all the crew. She came around distributing newspapers, drinks, post
cards, playing cards, amenities etc. As a director of travel and tours, I fly
often and I have never come across such an outstanding cabin hostess. She
loves to fly and it shows.
An example of complaint:
We were sitting close by the gallery and were able to observe the cabin crew
at work throughout the flight and impressions we gained was they were
unable to cope up with a full load of passengers There seemed also a lack of
leadership and organization, the cabin crew were rushing back and forth
getting in each other’s way – not smooth activity we have come to expect
from Singapore Airlines.
Higher Ground is a bi monthly newsletter aimed at the ground service staff, including
ticketing, reservations and check-in, as well as handling, logistics and transportation,
Higher Ground also contains extracts from letters, usually two complaints and one
compliment.
Read Case , “ Anglian Water Services Ltd” and answer the following questions
2 20
a. Analyse the main drivers for a customer service strategy for this Co. 10

b. Examine how the strategy development process was carried out? What
could be a better way? 10

Case Study “ Anglian Water Services Ltd”

In the early 2010’s Anglian Water Services, in common with the other water
companies in UK was facing a new challenge. It had been newly privatized, and was
struggling to understand the new environment in which it was operating. A new
challenge for the water industry was that water users were now to be thought of as
customers, not least because in the not too distinct future the utilities were to become
open to completion. Indeed today, the old demarcations between water, gas and
electricity companies has disappeared, with a number of companies providing all the
three traditional services and offering telecommunications as well.
John Green, the operations director of the company met with his team of senior
managers, including a newly appointed marketing manager to formulate a customer
service strategy. The first requirement was to understand the relevance of customers
to the success of the company. The water companies had previously operated more as
custodians of water hygiene than as customer focused organizations. This did not
mean they did not have a service ethic but rather it was not customer focused.
The key question to be addressed was ‘Did customer service matter?’ After all water
users had no choice as to where to go? However the water companies were subject to
close inspection by the regulator, OFWAT. This body regularly published statistics,
which included customer service performance, comparing the various companies.
These statistics were felt to be a significant factor in influencing the stock market
rating of the company, which was essential in competing for investment funds.
Perhaps more important, deregulation was seen not as a threat, but as an opportunity
for the company to grow into new areas not directly controlled by OFWAT. The
development of a customer service strategy was therefore to be seen as a vehicle for
bringing about a culture within the organization as a whole. John Green’s team set
about defining a new service vision, To do this, it carried out an audit of current
performance, recognizing that there were a number of customer segments with
different requirements, including domestic users, industrial users and property
developers. The points of contact with the customers were reviewed and the
supporting processes mapped. A number of workshops were held with key staff from
all parts of the operation, resulting in a draft customer strategy document to be
discussed at the board level.
This was the start of many initiatives in the development of service strategy. Early
debates as to what perceived quality might mean were as important stage in the
process. It was important to consider the possibility that customers might want water
the looked and tasted nice even though it might not be as hygienic in scientific terms.
Anglian Water Services has developed this strategy considerably since the initial
workshops. A major systems review was carried out, creating a new organizational
structure, including the appointment of a director customer service. Today, Anglian
 Water Services has an international business, and a reputation for commitment to
learning.

Read Case, “Microsoft” and answer the questions at the end of the case.
3 20
a. Analyse how Microsoft manages its suppliers’ relations to ensure
Uninterrupted delivery of its services to its various customer segments. 10

b. If you were CEO of Microsoft, would you develop in-house capabilities for
all aspects of sales and services or depend on a cluster of partners? Discuss
pros and cons of each approach. 10

Case study “Microsoft”

Microsoft chooses to sell and provide support for its software through a
comprehensive worldwide network of partners and associated companies, rather than
deal directly with customers. There are a number of channels for Microsoft to
manage in order to ensure that its users receive the appropriate level of service.
One of the channels is managed by the Certified Solution Provider Program.
Microsoft providers are able to receive training, sales support and software, as well as
priority information about the latest upgrades and software patches, to ensure that
they are up to date and able to give customers good service.
For larger solution providers, Microsoft has introduced a Partner Program. To qualify
for a partner program, the provider must demonstrate a number of attributes under the
headings of commitment, significance, proactively and effectiveness. To demonstrate
their competence, the partner must employ a given number of Microsoft certified
systems engineers or solution developers. In return, the partner receives an increased
level of support and is allocated the assistance of a Microsoft business development
manager. Microsoft requires ongoing evidence not only that their partners are
technically competent, but they have a viable business.
The partners receive significant sales and marketing support. They are linked to
Microsoft.com home page for potential customers looking for solutions providers. In
Partner Network, they can search for potential collaborators. Partners receive priority
notifications of potential sales leads from Microsoft’s telesales operation, and they
have access to customer critical’ technical support.
Microsoft emphasizes the independence of their providers and provider partners,
They are able to sell and support solutions from other software developers. However,
it is apparent that Microsoft offers every incentive to the partners to sell proactively
abd support its own solutions.
4 20
a. Analyse and examine how the structure of a service firm change as it
grows? Illustrate with examples. 10

b. Explore how speed of implementation of a decision to decouple makes a

difference to a firm? Give examples. 10

a. Analyze service encounter triad from point of customer participation in the

5 service production process for following situation – 20
i. Dominated by the service organization,
ii. Customer dominated encounter
Illustrate with examples. How these encounters can be improved. 10
b. Analyze and explore incorporation of Quality in the Service Package for
i. Healthcare Services
ii. Financial Services.
Illustrate with an improvement examples. 10