Running head: SUNSHINE ENTERPRISES CASE STUDY 1

Sunshine Enterprises Case Study

Name

Institution
SUNSHINE ENTERPRISES CASE STUDY 2

Sunshine enterprise case presents a problem caused by a 25 dollars tip service upset.

The key issues causing this problem revolves around four main stakeholders in the case

scenario. The client writing was not eligible and tipped the waiter with the incorrect amount.

The client also added the bill and retained the second receipt. The waiter was dishonest and

accidentally tipped the wrong amount by typing an extra zero. The branch manager did not

consult the credit company to examine the enterprise receipt history neither did she audit the

source of the errors in case of any issue. The credit company providing accurate electronic

transactions of the store would help to solve the issue (Collier, & Evans, 2015).

The cause-effect diagram provides the possible root cause of the whole issue.

According to the diagram, it is the responsibility of the client to tip the correct amount and

retain the receipt. The waiter and the manager failed their responsibility of investigating the

receipts. Focusing on the main problem of the employee and the branch manager failing to do

their responsibilities, both played a major part in the client service upset. The employee

neither verified the receipt amount nor did he check on the unclear tips. The branch manager

did not contact the credit company to verify all the company’s transaction. Although

Sunshine Enterprise is a company that thrives customer satisfaction and exceptional quality,

the tip error and failure of the branch manager and employee taking their responsibility has

raised some concerns within the store's systems (Collier, & Evans, 2015).

Sunshine Enterprise performance and its position in the market is as a result of its

quality services and customizing it to local needs. This is a high-level company as it receives

rich and professional people. The branch manager focuses on the quality control of the

restaurant to analyze customer satisfaction. The cause and effect method will assist the

manager to investigate the issue of the client being overcharged. Provide the best solution that

will leave all shareholders satisfied and use the solution as the benchmark for future cases

(Collier, & Evans, 2015).

SUNSHINE ENTERPRISES CASE STUDY 3

According to Simon, (2017), Cause and effect or the Fishbone diagram captures

different ideas and stimulate brainstorming on the root causes when having many opinions on

how to solve the problem. In the case of Sunshine Enterprise, investigating the root cause of

the problem requires the manager first identify whether the mistake was on behalf of the

employee or the credit company. The fact that the credit card system was outdated causing a

transaction error, it is her responsibility to review the credit card transaction from the day the

error occurred and determine who caused this error. The manager also should contact the

company to verify the store's transaction and check whether the error was as a result of the

credit company. If the credit caused this error she should shift all the business liability to the

credit company.

If the manager reviews the receipts and finds out that the receipt is typed 25 dollars,

this shows that the employee incorrectly tipped the client. Therefore if this is one of the root

cause, then the course of action would credit the client credit card with the right amount.

Immediately call the client, apologize and also explain that the tip was incorrectly tipped by

the waiter. It is important for the manager to offer this client a free meal to recover the

inconvenience the service upset could have caused. The manager should also talk to the

employee after identify the root cause, have a constructive discussion and ask the employee

to conform to the norm and professional behavior of operating the company efficiently with

error free.

In the article by Tax and Brown, (1998), recovery strategies to keep and develop

client relationship has an impact on a company’s revenue and profitability. The commitment

of maintaining customer loyalty ensure customers’ problems are efficiently and effectively

addressed. Sunshine Enterprise to maintain its high productivity needs to focus on customers’

loyalty and satisfaction. The manager should also have effective service recovery strategies to

solve the complaints of the overcharged client and satisfy her.

SUNSHINE ENTERPRISES CASE STUDY 4

Currently, many businesses use different technologies to run their daily operations

more efficiently and effectively. The use mobile payment technology is used in many

businesses to increase profits and revenues. Mobile payments technology in restaurants are

no exceptions. Restaurant point of sales systems are mobile enabled and clients can pay their

orders using their smartphones. Using the mobile technology, managers can also drive

customer’s loyalty (Cox, 2015). They can have a unique app which customers can easily use

to order food and pay the order. Sunshine enterprise using the mobile payment technology is

important in avoiding transaction errors. For example, if the client had a smartphone, he

could pay all the orders and maintain the evidence of transactions to be used in case of any

issue.

The EMV (Europay, MasterCard, and Visa) is another current technology used in

many businesses. The EMV enabled card provides a higher prevention of human errors

compared to the traditional card technology. It provides an option of tip or no tip. If the client

selects the tip option, he or she will be able to choose the amount before authorizing the

payment with the PIN. This eliminates errors which could be caused by the waiter.

Traditional card did not require PIN authentication, hackers can easily tamper with the

information causing later chargebacks. Therefore, using the EMV technology eliminates

errors liability transaction from your business (Cox, 2015).

In the case of Sunshine Enterprise, the company used traditional pay trade. The credit

card system was outdated and therefore it caused the transaction errors. It is important for the

manager in this to adopt the new technologies to avoid client service upset in future. For

example, if the company had the EMV technology, the payment transactions could be error

free. The manager could eliminate the liability caused by employee overcharging the client.
SUNSHINE ENTERPRISES CASE STUDY 5

References

Collier, D., & Evans, J. (2015). OM 5 (1st ed., pp. 341-343). United States: Cengage

Learning, Inc.

Cox, K. (2015). Mobilizing EMV in the US. www.mobilepaymentstoday.com. Retrieved 2

June 2017, from https://www.mobilepaymentstoday.com/articles/mobilizing-emv-in-

the-us/http://www10.zippyshare.com/v/hkG83Jxw/file.html

Simon, K. (2017). The Cause and Effect (a.k.a. Fishbone) Diagram. Isixsigma.com.

Retrieved 2 June 2017, from https://www.isixsigma.com/tools-templates/cause-

effect/cause-and-effect-aka-fishbone-diagram/

Tax, S., & Brown, S. (1998). Recovering and Learning from Service Failure. MIT Sloan

Management Review. Retrieved 2 June 2017, from

http://sloanreview.mit.edu/article/recovering-and-learning-from-service-failure/