MAR 644 CUSTOMER RELATIONSHIP MANAGEMENT

LUBIN SCHOOL OF BUSINESS      PACE UNIVERSITY

CASE QUESTIONS


first direct

1.  Discuss some of the reasons first direct been so successful.

2.  Recommend several marketing strategies to help first direct grow to 1,000,000,000 customers.

3.  List the alternative ways first direct can set up its phone bank for growth.
     Discuss pros and cons of each alternative.

4.  Recommend a phone bank growth strategy.

5.  Should first direct pursue pc banking?  Why or why not? Explain.

6.  In your opinion, is first direct using the strategy of learning relationships as suggested by
    Pine, Peppers, and Rogers?
 

Saturn

1.  What are the most important factors influencing buyers' choices in the small car market?

2.  How does Saturn deliver value to its customers?  Why has the company been so successful in
     selling its cars?

3.  How does Saturn deliver value to its dealers?  Why do dealers go along with the no-haggle policy?

4.  How does Saturn deliver value to its employees?

5.  Describe Saturn's CRM program.  Use what you are told in the case and information from
     www.saturn.com.
 

BroadVision

1.  Do a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis for BroadVision
     at the time of the case.

2.  Update your SWOT analysis by referring to www.broadvision.com and other web sites provided
     at the end of the case. Be sure to add at least one item under each heading (just list the additions,
     don't repeat the whole SWOT).

3.  Do a brief competitive analysis.  List 5 major competitors to BroadVision and discuss advantages
     the competitor has and advantages BroadVision has.

4.  What courses of action do you recommend to Pehong Chen at BroadVision as he attempts to
     grow and develop his company further in 1997?  Please explain your recommendation.
 

RBC Financial Group

1.  Should Reich make a loan to the customer's neice?  Discuss pros and cons of each alternative
     and make a recommendation.

2.  How should personal checking accounts be priced?  List alternatives, discuss pros and cons,
     and make a recommendation.

3.  Evaluate RBC's approach to CRM.  List good things and bad things about the bank's CRM program.

4.  Recommend ways to improve the CRM system (and possibly improvements in other areas) to help the
     bank gain value in the eyes of customers.

5.  Discuss limitations to CRM and how they affect RBC.
 

Alloy.com

1.  What is driving Alloy's success to date?

2.  How does Alloy's business model work?  Does it make sense in terms of profitability?

3.  How does Alloy use the Web effectively?  How could it be used more effectively?

4.  Should Alloy do the aol deal?  Discuss pros and cons of each alternative and explain your
     recommendation.

5.  What would Seybold think of Alloy's approach?  What might she suggest to improve or
     extend the model?
 

Ace Bank, Cumberland Hotels (handout)

Do one of the two cases and use the ncompass software to analyze them.

Questions for Ace Bank (B)

     Answer these before using the ncompass software:

     1.  Is management correct to focus on the training of its front line personnel?  Why?

     2.  Approximately what is Ace Bank's current customer retention rate?

     To answer the next questions, open the Ace.cpd file in the ncompass directory.
     (To calculate NPV, assume a 3 year time horizon and a discount rate of 15%).

     3.  What will be the market share impact of maintaining the current level of teller training
          (assuming everything else remains the same)?  What will be the market share impact if the
          bank decides to implement the more intensive teller training program?

     4.  Will the efforts to improve teller training have a positive impact on profits the first year?
          Why?  What about year three?  What does this imply about quality improvement programs?

Questions for Cumberland Hotel (B)

     Answer these questions before using the ncompass software:

     1.  Approximately how many customers are there in the market?

     2.  Approximately how much does Cumberland Hotels spend for bathroom supplies each year?
          If the company begins the new supply program, what will be the cost for the year?
          (show how you arrived at your answer)

     To answer the next questions, open the file Cumber.cpd in the ncompass directory.
    (To calculate NPV, assume a 3 year time horizon and a discount rate of 15%).

     3.  Will the efforts to improve the bathroom supplies have a positive impact on profits?
          What about market share?

     4.  Will converting the restaurants have a positive impact on profits?  What about market share?

     5.  Which program (if any) should Cumberland Hotels implement?  Why?

Moore Medical Corporation

1.  Identify at least four alternatives Moore should consider to bring about growth.  (Buying
     and implementing a CRM system is one).  Discuss pros and cons of each of the alternatives.

2.  What criteria should Moore use to make a decision?

3.  Which alternative do you recommend?  Explain.

4.  What advice might Fournier, Dobsha, and Mick give to Moore?

Siebel Systems

1.  Why do you think the problems occured with Protech?

2.  Why didn't Tom Siebel hear about the problems earlier?

3.  What could be done to assure earlier notice next time problems arise?  Give a number of possible
     remedies.

4.  Identify the alternatives available to Tom Siegel for dealing with the ProTech problem.
     Discuss pros and cons of each.

5.  Should the company redirect resources to solve the problem or keep all resources focused on
     driving sales and market share to help ensure a market leader position?  Explain.
     (Select one option - forced choice - not combination of both).

6.  How might Dowling advise Siebel?  Explain.

Granny's Goodies

1.  Based on the exhibits, evaluate the data Granny's Goodies has collected.  Have they established
     enough information to do basic CRM?

2.  How should they use the data they have?

3.  What additional data do you think they should collect to help them do better CRM?
     How should they use this data?

4.  List some alternative growth strategies for Granny's Goodies.  Discuss pros and cons of each.

5.  Recommend a growth strategy and support your recommendation.

Quest Foods Asia Pacific

1.  In your opinion, would Quest be considered "ready for one-to-one marketing" based on Peppers,
     Rogers, and Dorf's measurement instruments?  Explain.

2.  List alternative timing strategies for Quest in implementing a CRM system vis-a-vis BPR.
     Discuss pros and cons of each.

3.  Recommend a timing strategy and support your recommendation.

4.  Discuss alternative levels of sophistication of CRM.  Discuss pros and cons of each.

5.  Recommend a CRM sophistication level and support.

6.  Should Quest partner with International Snack Foods initially or another company or no company?
     Why?

Alpha Gearing Systems Shanghai

1.  Describe some common differences between Western and Eastern approaches to negotiating.

2.  What were some of the underlying dynamics that may have contributed to the breakdown in
     negotiations as described in the case?

3.  In retrospect, what communication strategy could Nelson have used to strengthen the relationship
     with San Yu?

4.  What might Jones and Sasser say caused problems in the negotiations?