Rent a Car
Measuring & Managing Customer Satisfaction
“The Long Case”
Discussion Questions
1. Describe Enterprise’s basic operating model at the branch level. What competitive advantages does it provide? What might be the disadvantages of the model?
Size: Enterprise branches are designed to operate like small, local businesses
Structure: scientific management every lines employees focus on their own task Meet performance targets Ensure quality of products & services.
Updated structure: flexibility at functional management
1. Compared to many large companies, Enterprise gives its local operations an exceptional amount of autonomy in how the business is run on a daily basis. Chances for growth and innovation that may help to differentiate Enterprise in the marketplace (customer pick-up service, on-airport branches and commercial truck rentals)
2. Encourages management employees to think and act like entrepreneurs Create a working culture that supports the goal of outstanding customer service To ensure customer satisfaction
3. Mid-level managers are converting themselves from administrative controllers into developmental coaches
To inspire individual creativity and initiative
Effective reward management: Performance based reward
The local managers have profit-and-loss responsibility for the performance of the branch, and their own income is tied directly to the performance of their location.
The manager is rewarded for the success of the local branch both by sharing in its profitability, and by being promoted to a higher level job.
Potential Limitations:
Because of its emphasis on local autonomy and initiative, it can take longer to implement key programmes or strategies than would be the case with a traditional command-and-control hierarchy.
Enterprise must take special care to recruit the appropriate types of people into the organisation (e.g., hard-working innovators who excel at building strong interpersonal
“The Long Case”
Discussion Questions
1. Describe Enterprise’s basic operating model at the branch level. What competitive advantages does it provide? What might be the disadvantages of the model?
Size: Enterprise branches are designed to operate like small, local businesses
Structure: scientific management every lines employees focus on their own task Meet performance targets Ensure quality of products & services.
Updated structure: flexibility at functional management
1. Compared to many large companies, Enterprise gives its local operations an exceptional amount of autonomy in how the business is run on a daily basis. Chances for growth and innovation that may help to differentiate Enterprise in the marketplace (customer pick-up service, on-airport branches and commercial truck rentals)
2. Encourages management employees to think and act like entrepreneurs Create a working culture that supports the goal of outstanding customer service To ensure customer satisfaction
3. Mid-level managers are converting themselves from administrative controllers into developmental coaches
To inspire individual creativity and initiative
Effective reward management: Performance based reward
The local managers have profit-and-loss responsibility for the performance of the branch, and their own income is tied directly to the performance of their location.
The manager is rewarded for the success of the local branch both by sharing in its profitability, and by being promoted to a higher level job.
Potential Limitations:
Because of its emphasis on local autonomy and initiative, it can take longer to implement key programmes or strategies than would be the case with a traditional command-and-control hierarchy.
Enterprise must take special care to recruit the appropriate types of people into the organisation (e.g., hard-working innovators who excel at building strong interpersonal