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Analysis of Raving Fans

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Submitted By tgirl93
Words 3269
Pages 14
Shelbi Bias
March 9, 2015
Management 402
Mr. Hoffman

Midterm

1. A key difference between the book and the class is the approach to customer service. In class, this has been discussed as one of the ways for a business to differentiate itself. An example given was the Ritz-Carlton and its superb service. However, Raving Fans suggests that every business should strive for the quality of service that a brand like Ritz-Carlton provides. The book ultimately suggests that by focusing solely on cost or variety that the business loses the overall picture that includes the customer. Southwest is a prime example of this. They have differentiated themselves on value for years, yet no customer is a “raving fan”. In fact no service provider in the airline industry has raving fans except for the customers who benefit from the frequent flier clubs. Blanchard and Bowles would argue that this entire industry is missing the point of successful business, which is to simply provide excellent customer service consistently.

In business change is often the precursor to extremely bad news. For many employees change is usually very unwelcome as it leads to the destruction of their corporate culture, the loss of friends and teams through lay offs, or even unemployment. Yet, change is an absolutely crucial aspect to growing and succeeding in business. Raving Fans demonstrates how a manager can present a drastic culture alteration in a positive way and the Area Manager fulfilled this goal. He was personally enthusiastic and the middle managers reflected this. He explained clearly what the issues were and his ideas to address them. The Area Manager portrayed the changes as positive for the customers of the company and for a new, healthier direction. The employees were invigorated with these ideas, especially after understanding that the changes would not lead to lay offs. He also

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