Would you eat a glazed donut sandwich for breakfast?

The new trend in today’s culture is to encourage having a healthy eating habit. Studies show that when people are at home, they are more conscious of what they are eating because they are making the food them self. While when they are out, they are less likely to stick with the healthy eating habit because of the tempting new food choices. Thus fast food restaurants do not offer as much healthy options available.

Most fast foods are targeted and are geared towards male consumers by labeling them as “dude food”. The food industry reports that 34 percent of men eat fast food frequently each week and only 23 percent of women would occasionally eat it. Fast food restaurants are beginning to have unexpected food choices to their menus to attract customers. For example the Taco Bell’s Doritos Locos Tacos, which contains a Doritos flavored taco shell with the regular Taco Bell’s filling. Pizza hut has its cheesy crust pizza which contains five different blends of cheeses in the pizza’s crust. These foods might turn off some people. The majority of the consumers are the younger generation, who would want to try something exciting to have as a conversation starter. The targeted consumers for the fast food industry would most likely be the younger generation, but Dunkin’ Donuts wants to reach out to new consumers and expand their customer base.

Like other fast food restaurants, Dunkin’ Donuts also joined the trend of creating something odd for their menu. Dunkin’ Donuts also added an unexpected food choice to their menu to attract new consumers. This new menu item is a glazed donut breakfast sandwich. This sandwich contains a pepper fried egg and is filled with cherrywood-smoked bacons. What inspired Dunkin’ Donuts of this idea is that they have seen customers buy glazed donuts to use as burger buns at family outings. They want to expand their consumer market to families. They thought this was a great food item to target most consumers because it used in family events. This assumption that all customers would like it is wrong because everyone’s preference is different.

The sales are great in the beginning, but it is starting to go down because it is not exciting anymore. In order to meet the consumers’ needs and expectations, Dunkin’ Donuts should ask their consumers what they want. They failed to do this and the sales were up only temporarily. This was similar to the paper airplane activity that was done in class. The designer group had to design a paper airplane and present it to the customers group. The customers are the ones who decide what is considered to be the best quality. Some teams did not meet the requirements because they did not ask their customers what they want.

Consumers are the one to receive the product or service. They have a set of standards of the quality and service they expect to receive. Since most people are health conscious, Dunkin’ Donuts should add something healthy to the menu instead. This is what the consumers want and desire.

 

Questions:

  • Do you think customers set the standards of quality of any product or service?
  • Was it right for Dunkin’ Donuts to make this assumption that most people would like it?
  • Should Dunkin’ Donuts have followed the health conscious trend?
Article:

Image: http://images.bwbx.io/cms/2013-04-18/comp_badfood17__01__630x420.jpg

You Get What You Pay For.

Is the long dreaded statement, “You get what you pay for” true? Or is it just a coined phrase that consumers overuse?

The recent numbers for the business quarter were released by Wall Street Journal and Costco’s numbers were nothing less than impressive while Walmart’s numbers were nothing spectacular. Costco experienced an 8% increase from last year’s benchmark and a 5% increase in same-store sales. These impressive numbers that Costco released may reveal that consumers are sick of receiving a shoddy service from corporations such as Walmart.

This grocery superstore (Costco) does charge a member fee; however with the 8% increase this quarter it doesn’t seem to be stopping anyone from coming and ditching Walmart. Walmart is known for its unbelievable cheap prices and record-breaking deals, but are these numbers revealing that consumers may be sick of it and switching to Costco?

The article suggests that the reason for this downfall at Walmart may be related to the minimal wage it pays its employees. On the other hand, Costco pays its employees a decent wage where they can afford even the extra remedies in life. Where a Walmart employee can barely afford to take their kids to the doctor. Even if the average employee at Walmart finds a loophole to squeeze a little more pay out of the company Walmart Corporation won’t hesitate to cut that stores employment roster by nearly one and a half percent.

As a result of these minimal wage efforts to their employees their quality of service has significantly decreased. Employee moral is down because there is an extreme lack of motivation between workers when they know pay is extremely low. Inventory remains pilled up in warehouses around the country and customer services line are metaphorically speaking “running out the door.” To add to another fall back Walmart is experiencing, is that when customers do want their products, they are nowhere to be found.

Walmart is experiencing these sales hit and we can see that they may be directly related to poor compensation received by their employees. Staff and salary cuts at Walmart have been occurring since the recession while customer service continue to drop. Yet Walmart still continues to open retailers around the world.

With the decrease in the quality service that Walmart is providing maybe it is time to revamp some of their strategies and move away from extremely low prices. They need to invest some of this money into paying their employees properly because with low wages we can see employee turnover and sales are at a low.

Personally, I have experienced Walmart’s poor quality service and am not a firm supportive of how they treat their employees; however I do enjoy their extremely low prices.

Will following Costco’s employee wages support team moral and inadvertently improve company sales at Walmart?

What quality tools can Walmart use to design a new business model to ensure this won’t continue to happen?

You get what you pay for; do you think Walmart provide shoddy quality service?

 

http://www.forbes.com/sites/rickungar/2013/04/17/walmart-pays-workers-poorly-and-sinks-while-costco-pays-workers-well-and-sails-proof-that-you-get-what-you-pay-for/
http://hbr.org/2004/12/outsmarting-wal-mart/ar/1
http://www.costco.com/employee-website.html

A Fake Tiffany Blue Box

Photograph by Timothy A. Clary/AFp via Getty Images

Costco is now selling Tiffany replica rings but at the Costco price and this is causing Tiffany to file a multimillion-dollar trademark suit against Costco.

A women on WeddingBee.com asked her blogger readers about what where their thoughts on jewelry from Costco, most women said that they would not mind a ring from Costco but they would not be entirely for it. Some of the responses included, that they only saw Costco as a grocery store and never thought about buying a ring from there, another response was that she had thought about buying a ring from Costco but was concerned when people would ask where she got the ring.

On a Good Morning America episode a Tiffany diamond and a Costco diamond where both appraised. The $16,600 Tiffany cut was 58% more expensive than its $10,500 value, and the $6,600 Costco ring was 17% under its evaluated value of $8,000. What allows Tiffany to have their prices $6,100 above the evaluated price is what the international recognized blue box means, Quality.

The dimensions of product quality that Tiffany offers are,

Conformance- When you buy an engagement ring at Tiffany’s you buy something that Tiffany has ultimately guaranteed that it   will meet the specifications of your loved one.

Reliability/Durability- Since it is a prestiges company that has spent many years building, you are assured with all the paper work that the ring you buy will have a useful life and a consistency of performance through out it.

Service- Once a ring is purchased, it can be returned for cleaning or resizing at any time.

Response-  The jewelers have face to face interactions with their customers about the different kind of cuts and qualities of diamonds so they choose the best diamond for them.

Aesthetics- Every piece of Tiffany’s is a renowned design and over the years there have been a select number of designers to create exclusive pieces just for Tiffany.

Reputation- Tiffany has spent years building a reputation for themselves, with the help of many stars and the classy Audrey Hepburn endorsement raises not only the price of its jewelry but the reputation of the little blue box.

My parents own a jewelry store and I notice how peoples meaning of quality differ all the time. The one difference I constantly get from customers is the preference from 10kt and 14kt. Many people have had problems in the past with 10kt or have heard stories that created a bad reputation for 10kt. Although I explain to the customers how gold has changed and how 10kt is now a better quality the reputation and the durability of the past remains.

Is $6,000 more worth getting a lifetime of sizing and cleaning?

Or

Is the name Tiffany worth $6,000 more?

Also

If you found a similar ring to Tiffany’s at Costco with the same quality diamonds, would you still purchase the above evaluated Tiffany ring?

 

http://www.businessweek.com/articles/2013-05-06/tiffany-vs-dot-costco-which-diamond-ring-is-better

http://www.tiffany.com/About/TheTiffanyStory/default.aspx#p+1-n+6-cg+-c+-s+-r+-t+-ri+-ni+1-x+-pu+-f+/0

Hire The Best & Screw The Rest

 

Everyone that has ever had a job knows that working with negative people ultimately brings down the mood of everyone around them. No one wants to work with someone that is always complaining, or someone that does not pull their own weight. Attitudes are very contagious, and can make or break the work environment. According to Ronald Friedman of the University of Rochester, pairing people in a room with (a) high-motivated people resulted in high motivation and work results, while (b) low-motivation people resulted in low motivation and lousy work results. Good thing that there is a way that companies can try and avoid hiring those negative people. Ronald Friedman came up with a pre-employment test that can reveal specific employee attitudes of highly productive employees. Managers of any business can use this test to try and catch the traits of their best employees in the new recruits.

Ronald Friedman called the test “Abilities & Behavior Forecaster(TM) Tests.” The first thing you want to do is custom tailor the test for each job in the company. To do this, you take your best employees in every job, and then test them to see what their typical scores are, “benchmarking”. Through this, you can confidently focus on getting those employees that test the same as your best workers. If you think about this, it is actually a smart idea. Why wouldn’t a company adopt this test if it could lower absenteeism? If you can hire great employees your company will only progress, and you will have better employee relations. Through pre-employment benchmarking studies done in many companies, Ronald Friedman found out that there were high scores on six personality traits. The six test scores that reveal great employee attitudes include:

-Teamwork

-Follow Rules, Policies & Procedures

-Poised/Objective Reaction to Pressure

-Optimism

-Being Fact-Focused

-Helping People/Good Service Motivation.

Just think, if you can get new recruits to possess these qualities you can grow and prosper to levels you have not even thought about. Some people might be worried that they will not score high because they believe that they are not good test takers, however; Ronald Friedman found that there is not a link between intelligence, test scores, and personality test scores. Instead, he came to the conclusion that the better employees get high intelligence test results.

More often than not, during the interview process managers will determine if you are qualified or not just by talking to you, but oftentimes this method is not accurate. Some people are simply not good at interviewing which does not mean that they are not qualified. The Pre-hire test is much more accurate in determining someone’s work ethic.

Just remember when hiring employees to customize personality tests by benchmarking scores of your best employees. Then focus on job applicants who get the same scores for that particular job.

 

Do you think this is a accurate way to hire employees?

Can you see companies adopting this method?

http://www.articlesfactory.com/articles/management/employee-attitudes-are-contagious-how-to-hire-employees-whose-attitudes-are-worth-catching.html

 

Changing Customs?

The Chicago Department of Aviation announced that O’Hare International Airport will be implementing a new procedure in order to reduce the time that customers stand in the customs line. The new procedure is for U.S. passport holders who are returning to the United States on international flights, to improve their customer service experience with customs officials and decrease wait time in line. It is intended that by July 1st, in the midst of the travel season, customers will no longer fill out the paper customs declaration forms on the plane. Instead, after departing the plane, U.S. passport holders will be directed to a self-service kiosk. Once they are at the kiosk, the U.S. passport holder will scan his/her passport to start the claiming process, all before any interaction with a customs official.  The customer is then issued a receipt from the machine, with the answers to questions they have answered at the kiosk, to give to the customs official for verification.

This new customs process is an adaption to keep customers satisfied by keeping lines short. The new procedure also includes a few of the five service dimensions that we have learned in class. O’Hare is demonstrating the second service dimension, responsiveness. Implementing the self-service kiosks is in response to the additional four international airlines that will be servicing out of O’Hare this summer.  The Chicago Department of Aviation, allowing O’Hare to use the new self-service kiosk devices, is also showing empathy towards the customers. O’Hare and The Chicago Department of Aviation are considering and empathizing with customers by recognizing the stressfulness of standing in line for hours and waiting to complete the customs process upon re-entry into the county. The tangible service dimension is also considered in the new and, what is expected to be improved, paperless customs process. The whole process of communicating with the customs officials is being altered with this new equipment.

The system has been tested with the Canada Border Services Agency and has proved to be useful at the Vancouver International Airport over the past year. The successful trial in Vancouver encouraged The Chicago Department of Aviation to put the new self-service kiosk into action at O’Hare International Airport. This new technology is a breakthrough improvement. There has been little to no change to improve and expedite the re-entry in to the U.S. customs process in the recent past.  This new change is much needed.

Personally, after first hand experiences of standing in the customs control line for hours, I am excited for the self-service kiosks to be put into action. For frequent fliers, once they learn the new technology, they will be flying through the line.

How do you feel about the self-service kiosks for the purpose of speeding up the process of re-entry into the United States? Do you think this will be helpful/beneficial to both travelers and customs officials? Do you foresee any problems that may arise from this change?

 

http://www.chicagobusiness.com/article/20130507/NEWS02/130509815/ohare-customs-goes-paperless-to-shave-wait-times

http://www.chicagotribune.com/news/local/breaking/chi-feds-passport-kiosk-chi-20130507,0,4807141.story?track=rss

Youtube Vs. Cable TV

A recent report suggests that YouTube will begin charging viewers for subscriptions to certain channels. It is rumor that has been circulating in the past week that YouTube will allow certain channels the opportunity to charge subscribers or viewers of their channels a small monthly fee. If YouTube indeed enters this market, they will be joining Netflix, Hulu, and Amazon.com as companies that provide content that would otherwise be found on cable television.

YouTube already has partnerships with certain companies such as Disney, Viacom and Paramount and offers a rental service but the content is not as vast as other similar services. With this deal, YouTube is expected to announce anywhere from 25 to 50 premium channels that will charge viewers for their content. Some of the expected channels include content aimed at children such as a Sesame Street channel to channels for sports such as one featuring the UFC.

This seems to be a process management utilizing incremental changes since YouTube will reportedly test out the paid subscription service with only a few partners at first. YouTube is stated to be exploring this approach to see if there is other methods to generate revenue other than the heavy reliability they have from advertisements. It will be interesting to see the reaction of people that use YouTube. It will be interesting to see if people who utilize the site for its free content will subscribe to the premium channels to view content they would have generally only been able to see on TV package they already pay for.

Do you think YouTube, with over a billion monthly viewers, could potentially have an impact on the way cable providers offer their services to their customers? When it comes to a service, quality is very important because every customer wants to be satisfied. With only a few major cable companies, do you think customer loyalty is only due to the fact that there only a limited number of providers from customers to choose from?

It is interesting to note that in class it was mentioned that in regards to service quality “giving customers some extra value will delight them by exceeding their expectations and insure their return.” I believe this could ring true for YouTube is they offer premium channels that offer popular content that could otherwise only be viewed if your a cable subscriber. By charging a small fee to view these premium channels, YouTube could challenge the cable market and force the large cable companies to reconsider their business models and offer packages that customers truly want instead of forcing them to sign up to bundle packages like many companies do. With the YouTube service, you would be able to pick and choose what content you would like to subscribe and pay for.

Would you consider testing out a premium content channel from YouTube if it offered content you already watch on cable television?

 

http://www.businessweek.com/news/2013-05-06/youtube-said-to-plan-1-dot-99-subscription-channels-in-coming-weeks

http://www.ibtimes.com/youtube-premium-content-channels-charge-paid-monthly-subscription-fee-1251585

http://www.reuters.com/article/2013/05/09/net-us-youtube-subscription-idUSBRE9480Z520130509

The Customer is ALWAYS Right…even when they’re Wrong

Customer Service…where you repeatedly say the same thing as if you’ve never said it before.

I work for DePaul University Housing Services as a student front desk assistant. My place of        employment is customer service oriented. The front desk acts as the first line of defense for the department, answering the questions from students and parents who have various concerns and issues about campus housing.

The concerns of students and parents can range from being wait listed  to not receiving their preferred building, room type, or roommate. Some of our callers/guests receive undesirable information pleasantly and with understanding while others do not. Those are the guests that have to be handled with care.

It is important for me to approach each call/guest with a fresh approach giving them clear, consistent and correct information while ensuring that their individual needs are met. Doing this lowers the chance of receiving angry feedback. This brings me to the ‘5 Service Dimensions’-Reliability, Responsiveness, Assurance, Empathy, and Tangibles.

Reliability & Responsiveness consists of doing whatever you promise to your customers while being willing to help and respond to customers promptly. This should be taken seriously so that your customers can depend on your service or product. When I am on a call and the manager/coordinator needed to resolve a minor issue is unavailable, I take their name and number so that I can gather the information and call them back with a direct answer versus sending them to a voicemail. It is my responsibility to call them back as soon as I have the information. This is done so that the customer understands that their issue is important to our department

Assurance consists of being an expert in whatever information you are conveying to your customer about your product or service. You simply have to know what you are talking about. When I first started this position, I was not well versed in policies, deadlines, procedures, etc. I listened to my supervisor and to my fellow student workers while they were on calls and speaking to guests, along with reading the department procedures. Now, 2 years in, I can regurgitate information in my sleep. If you are an expert in your field, receiving an angry caller is not a big deal because you are able to inform them of clear, CONSISTENT information.

Empathy consists of caring about your customers and whatever issue they may have. Whenever I am on an unpleasant call, it is important that I put myself in their shoes and try to understand where they are coming from so that I can assist them to the best of my ability.

Tangibles consist of physical appearance of service environment and product. We have to make sure that the Department is organized, clean, and professional. This is not only benefits our guests but us as well. It is always easier to navigate and work in an organized space.

Regarding customer service, which service dimension is the most challenging for you?

-Sarah

Why Does the Sound Quality of My iTunes Parallel a 1970’s Lou Reed Album?

“Yeah I’m an analog man in a digital world” – Joe Walsh. It’s alright Joe, when it comes to music, analog is a good thing. At least, the superiority of the analog format is what Neil Young is out to prove with his music quality focused startup company, Pono. Specifically, this summer, Neil Young’s company, Pono, hopes to roll out a cloud based music library as well as a digital to analog converting application. The goal of Pono is to give the music lovers of the world the opportunity to listen to their favorite songs and albums in analog format as oppose to the prevailing digital format most closely associated with Apple’s iTunes and Spotify. Pono is truly a breakthrough improvement, completely changing the quality of the music we listen too as analog format means the same sound quality as what is heard in the recording studio. Ever wanted to be a fly on the wall in the control room at Muscle Shoals Sound Studio or Sunset Sound, Neil Young is giving you that opportunity.

Neil Young is not alone in his mission to make Apple’s iTunes and Spotify re-think what the consumers desire for quality. In fact, Atlantic Records and Warner Music Group have publicly partnered with the Pono project. Further strengthening Young’s quality crusade is the host of music industry legends, Young has brought on to help win public support for Pono. Specifically, Young has received valuable feedback from members of the Red Hot Chili Peppers, Mumford and Sons, My Morning Jacket, Tom Petty, and producer, Rick Rubin. Red Hot Chili Peppers’ bassist, Flea is perhaps the most vocal supporter of Pono; going on the record to say, “It’s (Pono) not like some vague thing that you need dogs’ ears to hear. It’s a drastic difference,” and “MP3s suck. It’s just a shadow of the music.”

I truly marvel at Neil Young’s passion in the pursuit of high quality music sound through breakthrough improvement. Neil Young could have just invented a better version of iTunes with a more calculated “shuffle” function; however, he chose to solve the main problem with iTunes, namely the quality was not very pleasing. Hopefully, consumers will reward Young for undertaking a David versus Goliath endeavor aimed at making Goliath sound a lot less brutish. I will purchase Pono products as soon as they are lunched as I feel safe investing in a Neil Young product. If you have ever listened to any of Neil Young’s music, especially his 1980’s catalogue, you know that Neil Young is not in the money making business, but the touching people’s lives business. As Flea recently said, “His (Neil Young) reasons are so not based in commerce, and based in just the desire for people to really feel the uplifting spirit of music.” Thus, breakthrough quality improvement teamed with a strong, trustworthy leader should spell success for the Pono project.

Sources:

http://www.rollingstone.com/music/news/neil-youngs-pono-plans-take-shape-with-new-trademarks-20121219
http://www.rollingstone.com/music/news/neil-young-expands-pono-digital-to-analog-music-service-20120927

Photo Provided by

http://www.thetimes.co.uk/tto/arts/books/non-fiction/article3564309.ece

A Bloody Good System

It is nearly impossible to go through a day without using or being exposed to technology. People all over the world are using it on a daily basis whether it be for personal use or for business purposes.  And while technology may often get a bad rap, in the business world it has allowed for more efficient operations, it has helped in developing systems for quality control, and continues to constantly improve day-to-day business activities.

HemaTerra Technologies is an operational software systems provider that allows organizations a new way to manage quality. HemaTerra Technologies strictly deals with biological products, most commonly or popularly known products are blood, platelets, and plasma.  HemaTerra launched its web-based Quality Control management system known as HemaComply. With the implementation of HemaComply, unease and uncertainty are taken out of the equation when dealing with everyday Quality Control plans.

How the system works is like this: “from beginning to end, each step in the Quality Control process is recorded, acknowledged and completed before becoming a part of the Quality Control plan history.” By means of this system, dealing with loads of spreadsheets and an assortment of data files is eliminated. This point and click system leaves no room for error, provides efficiency, and assures quality.

Hammering on the concept of a continuousimprovement plan, it is important to constantly be measuring the quality of your product or service and seeing what can be done or implemented toensure the maximization of quality.

What came as a surprise to me was that there was not already a software system in place for organizations like this. Ordering or reading a blood type incorrectly and then distributing it can cause serious complications depending on who is receiving it and what the circumstances may be. Before HemaComply whoever was responsible would have to sort through various spreadsheets and data is only broadening the margin for error, and putting patients/customers in danger.

In my experience, all of my medical history has been available online. Medical history I would consider to be on the large scale when it comes to healthcare and/or the medical field. To have such a small facet of this industry (biological products) not already using a system like this seems careless. With HemaComply and other software that guarantees correct and quality information, why even run the risk of inputting data incorrectly? On the large scale, if organizations (in any industry) are aware of more refined quality tools, software, etc. why are they not using them?

Measuring quality and making improvements is a continuous process. In order to yield the greatest results the finest quality control management tools must be put into practice. Withoutdoing so, a business can be doing itself, and more importantly its customers, a disservice.

 

Article: http://online.wsj.com/article/PR-CO-20130429-910848.html

Image 1: http://health.einnews.com/pr_news/148542960/hematerra-takes-confusion-and-concern-out-of-quality-control-plans

Image 2: http://science.howstuffworks.com/life/human-biology/blood.htm


 

The End of A Dynasty?: Clash Between Industry Titans

 

The battle for technological dominance is beginning to heat up. Apple and Samsung have been at each other’s throats competing over market share and cultural relevance for years now, with Apple seeming to come away the victor year after year. However, the momentum has seemed to shift in Samsung’s favor recently. So why the sudden change? In 2013, Samsung took a huge leap forward against their arch rival by enjoying a monumental 56% surge in sales pertaining to smart-phones. Whereas Apple only saw a disappointing 6.6% increase in sales within the smart-phone sector. Samsung now has a stranglehold on the market share, controlling 33% of the smart-phone division compared to Apple’s mere 18%. With this sudden charge in 2013, Samsung experienced soaring profits and revenue sales of $47.6 billion, a 17% increase compared to Apple’s 11% increase.

People are beginning to wonder why Apple has become so stagnant with their products, while Samsung continues to innovate, push the limits, and surpass new boundaries as a organization. As we all know, Apple as a company has gone through major changes when it comes to management ever since the passing of their charismatic and brilliant leader Steve Jobs passed away on October 5, 2011. However, they are not helping themselves with their lack of new products entering the market, along with their rather “elementary” tweaks to the iPhone 5 that have left many longtime customers of Apple disappointed and looking elsewhere for new and innovative mobile devices. For example, Apple upset a good portion of their customer base by changing the adapter that charges the battery life for a majority of Apple products. One of the major draws for Apple’s iPhone line was the fact that their mobile devices had become standardized with the ability for users to charge their phones just about anywhere, even if they forgot their phone charger because they could just use someone else’s. All the while Samsung continues to focus on the quality of their products by offering a wider range of specifications regarding smart-phones that have consumers clamoring for more. Also, Samsung’s new handset, the Galaxy S4, has premiered to critical acclaim among customers and could potentially threaten Apple’s iPhone as the gold standard among smart-phones in the industry.

Samsung has been able to achieve this triumphant comeback through intense quality focus and strong leadership throughout the organization. Especially at the top with former Chairman Kun-Hee Lee who strove for product quality so much that he took a trip to one of the company’s plants that had developed a batch of defected products and required all 2,000 employees to wear headbands that read, “Quality First”. Through this philosophy, Samsung has been able to efficiently produce quality products at a cheaper price compared to industry standards, which in turn allows them to charge a higher price that consumers are willing to spend. The end result, an incredible first quarter of 2013 for Samsung and a devastating blow to Apple. Will Apple recover from this disappointing 2013 start? Possibly with  the iPhone-5S. Or will Samsung continue jabbing away at heavyweight champ?

Source: http://www.forbes.com/sites/petercohan/2013/04/26/samsung-trouncing-apple-gangnam-style/