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Midland Energy Resources, Inc. Cost of Capital

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Caselette: Village Volvo 1) Village Volvo has several unique service packages. First of all we can talk about their supporting facility. Village Volvo is located in a suburban location. This might discourage some clients. They should increase the shuttle services for the convenience of their customers. To establish the proper mood Village Volvo has an office, waiting area, storage, and four bays. The facilitating goods provided by the Village Volvo are the replacement auto parts. The owners also had developed a network with other service providers. They refer their clients to other service provider if there is some thing which they can not do. Village Volvo also uses another source of information which that calls Custom Care Vehicle Dossier (CCVD). They maintain a file on every car they inspect. This helps the mechanic to keep a record on the car and also it helps remind the customer that there is a maintenance procedure due on their car. The explicit services are something which is readily observable. The customers know before hand that they are going Village Volvo to get their car repaired. The owners combined experience is 22 years at a local Volvo dealership. Thus, the customers would not be worried that the person working on their car has no experience working on Volvo’s. There are some procedures which they don not perform. For that Village Volvo recommend different places where they can get their cat fixed. Lastly, implicit services which is a psychological benefits that a customer may sense. The attitude of employees at Village Volvo is very professional and friendly. The service manger tells the customer what needs to be fixed before working on the car. Some time if the time allows they even go for a small drive to see how the car is running. They also have a waiting room. Where a customer can wait while there is work being performed on their

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