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Service Blueprint of Airlines

University of Nicosia T h e B r i t i s h A i r w a y s s e r v i c e d e l i v e r y p r o c e s s God save the Queen! Photo by Bachir MKTG-380 Services Marketing Lecturer: Alkis Thrassou Section 01 May, 12 2008 Zehra Fattah Anastasia Kondratenko Federico Lovat 2 1. 3 2. 3 3. 7 4. 8 5. 10 6. 15 7. 19 CONTENTS Corporate overview The augmented service Breaking down the process Flowchart Blueprint Improvement of service delivery Bibliography Can I get you anything? Photo by caribb 4 THE PRE FLIGHT A lot of customers don? t consciously realize that there is much more to a flight than ooking and attending it. The price we pay for when purchasing a ticket includes all the supplementary ser- vices we are going to mention in the next chapters. The Core product is the transportation from airport A to airport B. but everything else which accompanies it is called supplementary service, and even if a lot of these services are expected by the customer, he/she doesn? t consciously pay for it. The following are the necessary steps in the process of delivering the service before the customer gets into the plane. In the following chapter we are going to describe in detail what happens during the flight.

INFORMATION The process starts off with the information gathering before attending the flight. It is very important for the airline to advertise effectively in order to differentiate from the competitors so that the customer can decide which airline brand to chose. When advertising it is recommended to underline the features, services and com- petitive advantages of a brand, as nowadays, being the airline industry in its matur- ity, a lot of brands seem to be similar in the eyes of the customer. In recent years, more and more people are searching for information and prices over he internet, so it is crucial to have a well-designed website that allows potential cus- tomer to get a feeling of what experience the company is offering and not only to compare prices and routes. CONSULTATION When booking through a travel agent, it is important whether the agent knows about the subject and is able to give the customer the information he/she needs. Prices in travel agencies are higher than online so the customer expects the service which he/ she is additionally paying for. Even if the internet is a low-contact channel people may expect some form of consultation maybe via email or through a specialized online chat.

The same applies to the call center, even though people might already know what they want, the operator needs to be prepared to answer any specific question about the flight or the before and after flight. ORDER TAKING 5 tions. The flower of services © 2007 by Christopher Lovelock and Jochen Wirtz An online booking procedure, which is pretty common in these days, is a convenient way for the customer to make a reservation. It saves time and money. By the way older or uneducated people still have some problem in booking through the internet, in fact, from our interviews panel it appears that most of the “online bookers” are oung or middle aged and above average educated. (However the number of customers booking online increased significantly in the last years and the numbers are growing each day. ) In case a problem appears while making an online booking or if the customer has a problem, the effectiveness of the call centre staff is crucial. The availability of the customer service can be an important factor when a situation like that appears. The customer service should be well informed about the products of the company and also well trained in order to react properly in different situa- HOSPITALITY

If there are any delays before the flight it is very important for the airline to provide hospitality to the customer. For shorter delays, B. A. gives the customers vouchers, so they can use these during the waiting times to eat or drink in the restaurants/bars at the airport. Furthermore if there are longer delays and the customer has an overnight stay, the 6 ment. airline usually has to provide for a suitable accommodation for the customer in a ho- tel near the airport. Even if there aren? t delays we must remember that the customer probably has to wait about one hour at the airport so it is important that the servicescape is comfort- ble in order to minimize the impact of the waiting time. SAFE KEEPING Travelling by plane is made inconvenient for the customer by the several safety pro- cedures that people have to attend to before and after the flight. Moreover, with recent years? concern about terrorism the security procedures have become even more strict. This has an effect on the waiting times and customers, es- pecially if frequent flyers, may be annoyed by this lengthy process. It is important that the ground staff is friendly and patient both with experienced and unexperienced customers. It is interesting to notice that for the company this tage is untouchable since it is imposed by law it gives very few room for improve- EXCEPTIONS The airline has to be prepared in case there are customers which constitute an ex- ception. Exceptions may be handicapped customers, elderly people and babies who need spe- cial accommodation. Exceptions can be made with food. Individual references may be considered. I. e. Vegetarian food has to be provided for vegetarian customers. Furthermore there are exceptions which can be made with luggage. BILLING The billing procedure should be as clear but at the same time as easy as possible. The Online purchase of flights is very common lately.

However a high number of customers are still skeptical with reveling their bank de- tails online, so it is very important to design the billing procedures as clear and easy understandable as possible. As for the brick and mortar agencies the bill should be standardized in order to impose consistency among the different independent agen- cies. Being B. A. a traditional carrier the price of the ticket include almost all the ex- tra like inboard food and entertainment while low-cost companies base their strat- 7 for. egy on the separate bills where customers have to pay for each extra service they ask

PAYMENT The payment for the ticket is usually done at the time of the reservation either via credit card or, if done in agency, through cash or check. Payment may be asked from the customer also after the ticket has been issued, for example when the luggage exceeds the allowance the customer has to pay a certain amount because of maintenance reasons. Every airline has restrictions when it comes to the luggage allowance. Furthermore there are certain items which can be purchased during the flight, such as duty free products. The customers also have the opportunity to purchase addi- ional drinks such as alcoholic beverages which are not included the meal. For all these in-flight payment it is important to give customers many options. Being the plane a „non-place? (thanks to the theory by Marc Auge) customers may expect to be able to pay with different currencies, as well as with major credit cards. BREAKING DOWN THE PROCESS We are going to look now in detail at all the actions that are necessary to complete the process from the very beginning to the very end. Here, to simplify a bit we imag- ine a customer buying a ticket online. Time Dimension in Augmented Product Adapted from Lovelock and Wirtz 2007 Information see- king over the internet Information see- king through a- gency Information see- king by phone Enhancing Facilitating Booking Transfer to airport Electronic payment through CC via internet or phone Payment by cash or cheque through travel agent parking Transfer to airport Last minute desk boo- king and payment parking Check in baggage Use of airport facilities (business lounge, shops, restaurants, toilet…) Security check Transfer to the plane On-board welcome and Security demonstration Passport control 9 meal toilet Meal preparation and loading Flight starts Movies, music and newspapers are elected, bought and loaded into the plane Movie/music/ newspapers Informations co- ming from airport Phone/fax call Radio bridge to the earth, call is routed, payment through CC Plane is cleaned, checked and filled with petrol Informations about the con- necting flight, the weather… Plane lands Control tower gi- ves permission to land, alert the land crew, bus and stairs come. Baggages are transfered to the belt Transfer from plane to airport Baggage claim Lost baggage desk Use of business room/airport facilities Transfer from airport to town After sale-Complaint management Frequent flyer program 10 The

Front stage Physical evidence | | | | | side Back stage Contact person (visibile) | | The company side Front stage—Back stage Support processes Contact person (invisible) | | Information seeking on the internet | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | into Crew makes sure frastructure, IT, with the control tower Co-pilot manages the music, air condi- Bus and stairs driv- airport plane with food, tioning, … — tem to customer Maintain IT system Booking Mechanics Check the plane Shuttle to airport drive to airport Maintain and organ- ize shuttles clean and refill the Check in baggage, take boarding pass Take baggage, give boarding pass Maintain drink, newspaper, petrol Security check Wait in the boarding area Check passport, hand-baggage and person Maintain it sys- facilities, toilets, bars, shops…

Pilots and crew get into plane and start proce- Load baggage plane dures Give boarding pass Get into bus check boarding pass Drive bus to plane Maintain support vehicles ers are alerted Get into plane Find seat, put hand baggage and seat down Fasten seat belts and enjoy take-off Crew welcomes pas- senger and help finding seat Crew shows security procedures Maintain airport infrastructure, IT, radio, radar… Drive stairs to plane Pilots and control tower arrange for take off Pilots drive plane to runway and take off Sleep, read, eat… enjoy flight Crew offers food, drink, newspapers… and collect garbage afterwards

Pilots fly the plane through Put the seat in the upright position, fas- ten seat belt, close table that everything is ready for landing Maintain airport in- radio, radar… the route Pilots communicate at the destination air- port Maintain airport facilities and sup- port vehicles Control tower alerts land crew and support vehicles Plane lands and gets its parking position | The Physical evidence | | | | | | | | | side Back stage Contact person (visibile) | | | | The Support processes | | side Back stage Contact | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | First net. tem that the credit At this When at desk to use. airport. is to seek informations about the flight over the inter- implies that somebody has put together an IT sys- -based applications with the internal booking system When the customer has decided which flight to buy he can pay with This is made possible by the interactions of of the airline company and the banks managing the transaction. After some days the customer by private car, public transport, or shuttle service. In this to organize, maintain and inform about this supple- normally is a stand-alone service itself. the customer goes to the monitors to check out which check in course there must be an informative system to allow that.

At the the luggage onto the scale while the employee checks out This is a lot of different people from the airline and from the checked in it is transported to a sorting area where spe- trucks to be driven to the proper plane | | Maintain and or- checked, Plane is been left in that noth- Crew makes sure 11 person (invisible) are belt town vice Of customer Front stage— company Front stage— Passengers get their hand baggage Crew helps passen- gers Support vehicles come to the plane Passengers get to the bus Maintain Support vehicles Baggage Passengers get to the airport Drive bus to airport ing has the plane trans- ferred to he truck go to passport con- trol Get baggage Control passport Maintain airport facilities, It and se- curity system… Baggage are trans- ferred to the running go to shuttle stop cleaned, ganize shuttle ser- refilled… Drive shuttle to step from the consumer From the company side this can integrate the web of the company. card directly from the internet. the IT systems point there? s usually a time gap in the process. will go to the airport either last case the company needs mentary service that the airport, check in desk he/she puts the documents, prints the boarding pass and the barcode tag for the luggage. ade possible by the work of When the luggage is cialized employee load the baggage on small 12 where the baggage are finally loaded. After check-in, the customer can go through the security control. Here the security personnel checks the hand-baggage, the person and the documents of the traveller. Previously these procedures have been formalized in order to ensure efficiency and effectiveness. Even at this stage it is crucial the contribution of the IT systems. After the security check the passenger can go to the gate where the airline employees check the boarding passes and lead passengers to a bus that is already waiting to get hem to the actual plane. Until now the customer has already experienced a wide va- riety of locations, employees and servicescapes. We didn? t focus on the airport sup- plementary services, although important to improve the overall customer experi- ence. Imagine how it would be to travel from an airport without shops, bars and toi- lets. These are all extremely important but describing all of them would make this paper endless and by the way they are not strictly part of the airline experience. When the passenger get off the bus, the mobile stairs are already in place in front of the plane’s door.

People get on the plane while the last baggages are being loaded. From now on, it? s almost all about hospitality. The passengers enter the plane and the crew is ready to welcome them and to help them find their place. In the business class, the crew take care about the safekeeping of passengers? coats and hand – baggage. At any time the cabin crew must be ready to answer any question about the flight, the plane, the usage of cabin devices, etc. At this moment the audio system plays a soft classical track, the lights are on and the monitors are off so passengers can easily spot their place without being distracted.

While people seat down, the pilot communicate with the control tower. The host- esses inform the passengers about the security procedures. The pilot starts the en- gines, when the control tower gives permission to take off the pilot drives the plane to the runway, alert the flight assistants and takes off. After takeoff the monitors are turned on and start to display information about the flight. The flight assistants start to offer newspapers, headphones, food and drinks that were previously loaded into the plane. During the flight, the flight assistants start the movie and the music so the passenger can enjoy them.

The lights may be turned off according to the time of the day. In the business class somebody may ask to make a phone call or to send a fax. This is an enhancing service that requires a lot of steps to be completed. The customer might need to be informed on how to operate the on-board phone. On the backstage, 13 place. the IT and radio systems of the plane work to create a connection to the Earth in or- der to transmit the actual voice but also to connect to the credit card circuit. When the call is over, the billing and electronic payment procedures take place. During the flight the crew offers food and drinks.

In the first class passengers are al- lowed to chose from a menu (that involves order-taking by the flight attendants) while in the economy class the meal is the same for each customer but still, people are allowed to chose what to drink. In the B. A. case this process doesn? t involve bill- ing and payment while low-cost carriers charge for this. When it comes to food, the flight assistants need to be able to answer questions about the ingredients or to give advices about specific alimentary needs expressed by customers. Exception manage- ment is also important at this stage as some people may have special requirements bout food and drinks. Especially in the first class, people expect to have the right to be picky because of the premium price. When the people are finished eating the flight assistants collect all the garbage while some passengers may ask for the toilet. When approaching the destination, the pilot gets information from the control tower about the weather, the estimated time of landing and the connecting flights and tells them to the passenger either via loudspeaker or on the monitors. When the control tower gives permission to land the pilot turns on the fasten seat belts signal, turns off the monitors and starts approaching the airport.

In the mean- time the land crew is ready with a car to guide the plane to its parking position. After parking the plane, a mobile stair and bus come to take the passengers to the airport, meanwhile, the baggage are transferred to a small truck and then to the belt at the airport. After flight experience that consumer receives should be well thought-out by British Airways as at this stage, evaluation of service performance and future intentions are considered as the Post purchase behavior of a customer is very significant. If the customer is satisfied with the service a positive WOF (word of mouth) will take

WOF is the most significant advertising tool and it shouldn? t be underestimated. A bad worth of mouth can cause bad damages to the reputation of the company. Once the flight is completed the passengers is about to leave the plane. The customer should be satisfied with the service at this point. 14 This can be achieved by providing a service which was expected by the customer or even better than expected. Since i. e. business class travelers are very sensitive and elective, the standards of on- board treatment and after all experience of traveling should fulfill their expectations or benefit of the company. It is important that the service experience the consumer gets differentiates from its competitors. The customer will know if he/she is satisfied for the most of the most part once the plane is landed. The after flight evaluation which we will talk about in the next chapter will complete his/her judgment. After the plane lands, the stairs are placed and ready, the travelers leave the plane the stewardesses makes sure that all passengers are organized and not bothering each other. Flight attendants and pilots biding passengers farewell, always smiling nicely and eing polite, which also leaves an impression on the flight experience of the cus- tomer. It is important that the on board staff is well trained to react appropriate even though customers may be impolite. There are different reasons why customers may react in an unconventional way. The dissatisfaction of a passenger could lead to an unreasonable behavior. A lot of customers might know that there are complaint hot- lines which they can contact after their traveling, so in some situations they try and relief their anger on the on board staff, as in the eye of many customers every em- ployee represents the company.

The bus is usually waiting downstairs when the passengers arrive, in case the plane didn? t arrive at a gate which is accessible by food. There should be enough space for all of the customers and if not another bus must be provided shortly or even be there already. After passengers have left the plane, the plane is being cleaned, refilled and checked if anything was forgotten by the travelers and if so, reported and returned to the owner shortly. Security procedures take place. The plane is refilled with gas and maintenance work by engineers takes place. The plane is being prepared for its next flight.

When passengers arrive at the arrival gate of the airport they usually face the pass- 15 port control queues leading to the passport control. If they are not well organized it takes a lot of time to pass through. An effective queue management is very important as customers can get irritated when they have to face long waiting times after their flight. When passport control is passed its important that the baggage is transferred to the belt fast enough and safely. In case there is a loss of baggage customer service is available and willing to help. How fast and how efficient this service will be, proportionally will affect the image of he company. Usually there are customer service assistants which can be contact right away in case of lost baggage. In case there is no one around, there are BA offices which deal with lost luggage. Usually after reported at the airport the luggage is delivered to the address which is left at the office by the customer. This may take up to 2 days, depending on where the final destination of the passenger is. When filling out the form, the customer has to describe the content of the luggage, and also tick boxed to describe the bags, so they can be recognized, the right luggage will be delivered and further delays will be voided. This case would fall into the failure recovery process. In theory this means that if the recovery is well managed, the customer may be more satisfied, and at the end he/she doesn? t mind the failure of a service provided. Furthermore BA offers frequent fliers program. Every customer has the opportunity to sign up for this program. It is voluntarily, and if the customer decides to sign up, he/she receives monthly account statements and additional information concerning the program. The account statements include the archived miles, depending on the amount of miles the customer flies.

These miles are collected and can be used to re- ceive free gifts/ flights once achieved the required amount. The miles and more program builds customer loyalty and at the same time it gives the airline the opportunity to use their customer data for research purposes. IMPROVEMENT OF SERVICE DELIVERY As we can see from the blueprint there is much more than the actual flying that must be done in order to offer the transport service that? s the reason why people are pay- 16 ing. Before and after the flight people have to go through a lot of procedures and to move across many locations.

These are all time-consuming tasks that take away value from the flying experience. Even if we like to think that flying is already part of our daily life, travelling by plane is not really as immediate as getting into the metro or the bus in our town. The impact of all these procedures is so big that on the short distances (up to 600 KM) travelling by plane may result in taking only a little less time than by train. ( D o n ? t f o r g e t t h e t i m e n e e d e d t o g e t t o a n d f r o m t h e a i r p o r t s ) . We suggest using many small airports instead of a few big ones. Get the service de- livery closer to the customer) In this way we can reduce the amount of time that? s required to get to and from the airport. Odds are that if there are more airports available, probably the customers won? t have to spend so much time going to and from the airport. To improve the flying experience on the short distances it would be necessary to streamline the entire process but unfortunately this is easier said than done. For ex- ample, people could go directly to the plane without the need to check in the bag- gage but this may slow down the boarding procedure and for some people it may be ifficult to carry the baggage up the stairs to the plane. Also, a lot of time gaps are due to the security procedures that are necessary when flying but not when travelling on the earth. One of the tasks that carriers are struggling to improve is the boarding of passen- gers. This takes a lot of time because people don? t know exactly where their seat is and they don? t know which entrance to use. And even when they know which en- trance they should use they not always collaborate. There is a psychological effect. People who waited to be served are less likely to collaborate. It? s like if they internal- ze the pace at which the service is being offered. When they have the control of the pace they rather move slow even if five minutes before they were pushing to get into the plane. If the boarding procedures are slow with many controls and queues it? s likely that people will move slowly also when they could speed up the entire process at their advantage. Our suggestion is to arrange the flights on the time when there is not many other flights, so it could be easier to pass and avoid stress resulted by waiting. Or else, pro- vide a service that will allow travelers that have arrived even on the peak time to 7 avoid all the formal interactions that has to do with passport control. This includes escorting the passenger after arrival straight to the lounge where the client is resting and could have a drink while the service group is dealing with all necessary migra- tion tasks. Then the passenger is guided to the place of receiving the luggage, later to the luggage check and lastly to the meeting room. This service is already in use within some airports but not promoted by any specific airlines. Therefore, as first provider of these services it will create a better image for he company, add some extra financial benefits and, which is most important, create the value to the customer. If adopted it could be used for individual passengers, tourist groups and important clients. It should be available in the short time before flight which will be an extra benefit for last minute bookings for people who value the time. As an additional service, British airways can also provide a taxi or limousine booking before the flight or when the clients have arrived already. The airline company must ensure that the driver will meet the client and take to important meeting or hotel on time.

This kind of feature will definitely extend the variety of services from just fly- ing from one airport to another to taking care of the passenger after the flight which is also be a good opportunity for airlines to build loyal strength of their clients. BA is a one of the most prestigious airlines worldwide and its services are very high standard. However they have to keep being innovative in developing new services in order to use the competitive adnantage productively. Here an article written by Woody Harford, the senior vice president for North American commercial operations of British Airways, talking about a new and en- anced service developement. In the article of the daily International Herald Tribune newspaper online was mentioned that “all the airlines offer a range of discounts and promotions off top business-class fares. Some high-volume companies negotiate discounts of 40 percent or more. For others, buying a ticket well in advance brings the fare down considerably. British Airways, which is counting on its brand recognition as it takes on smaller rivals, has not yet announced details, but Harford said that the cabins on the new route would be comparable to the airline’s Club World service be- 18 ween New York and London – meaning flatbed seats and service at the top end of the scale. The service will also promote 15-minute check-in at London City and at whichever New York-area airport is used. British Airways also plans to start a separate small all-business-class airline called Open Skies in the spring, flying between New York and cities in Europe other than London. Last week, British Airways reported a 28. 5 percent jump in operating profit for the last nine months, “mainly due to more premium pas- sengers traveling. ” Woody Harford, the senior vice president for North American commercial opera- ions of British Airways. Overall we think that for such a sucessful company like British Airways it is impor- tant to being able to continously adapting to the changing environment in order to keep up with developments in the industry. Firm, 4 uct Innovation Management th 19 BIBLIOGRAPHY Storey, Chris; Easingwood, Christopher J. 1998 „The augmented service offering: a conceptualization and study of its impact on new service success?. Journal of Prod- , Volume 15, Number 4, pp. 335-351 Zeithaml et al. 2006, Services Marketing – Integrating Customer Focus Across the (International) Edition. McGraw Hill, New York

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Mabe Essay

How will MABE programme help me achieve my personal and professional goals. My personal goal in life is to own a top ten small size business which provide excellent products and services to customers. In this way, I hope to play a major part in developing the business to the point where it achieves tremendous success and can eventually help develop my country in terms of economic, environmental and images aspects.

In order to attain this goal, it is essential that I have knowledge which I can apply when I have opportunities to engage in practical business activities. I, therefore, choose to continue my study in business and management as the program will definitely broaden my view of business, equip me with strategic business lessons, and prepare me for a competitive global business world. I chose to study in the Faculty of Arts, majoring in Geography for my Bachelor Degree due to the fact that I interested in the earth matter and can it be applied generally in daily life.

I believe that knowledge I have gained from this faculty establishes a certain part of a foundation of management skills as it helps me develop my knowledge of natural resources, earth and human complexities, sustainable travelling and etc. Furthermore, I chose English languages as a minor studies as it can helps me develop the ability to communicate effectively. In additional, I have expanded my understanding of other human beings more profoundly, which I believe is a crucial factor of the art of management.

However, I need to have knowledge that is more concrete about business and management in order to realize my ambition. As I’ve seek program to support my requirement, I found that Chulalongkorn University’s MAs in Business and Managerial Economics program suits me best as it can develop my analytical and decision making skills, also it can give me the foundation of management to be able to deepen and focus on a specific field that I am interested in.

I am convinced that at Chulalongkorn University, I can best broaden my perspectives of management and advance my skills to a professional level. I am excited at an opportunity to work with colleagues from all around country or world. In conclusion, I firmly believe that studying at Chulalongkorn University’s MAs in Business and Managerial Economics program is a major step that will lead me to my ultimate goal as an entrepreneur.

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********************************************* TENANCY AGREEMENT ********************************************* DATED THIS 19 DAY OF January 2010 BETWEEN (The Landlord) Chin Hong Tuck 831023-14-5163 143, jalan Maharajalela, 50150 Kuala Lumpur AND (The Tenant) Realkey Solutions Sdn. Bhd. 802559-A No. 179-2, Jalan Bestari 1/5, Taman Nusa Bestari, 81300 Skudai, Johor. Premise Address : 179-01, Jalan Bestari 1/5, Tmn Nusa Bestari, 1300 Skudai, Johor. Monthly Rental: RM 1200 Period of Tenancy: 2 years THIS AGREEMENT is made the day and year stated in Section 1 of the Schedule hereto between the party whose name and description are stated in Section 2 of the Schedule hereto (hereinafter called the “Landlord”) of the one part and the party whose name and description are stated in Section 3 of the Schedule hereto (hereinafter called the “Tenant”) of the other part. WHEREAS :- 1.

The Landlord is the registered/beneficial proprietor of the property more particularly referred to and described in Section 4 of the Schedule hereto (hereinafter referred to as the Said Premises). 2. The Landlord is desirous of letting and the Tenant is desirous of taking the Said Premises together with furniture, fixtures and fittings as described in the Inventory hereto (where applicable) subject to the terms and conditions hereinafter contained. NOW IT IS HEREBY AGREED AS FOLLOWS :- . Subject to the terms and conditions herein contained the Landlord hereby grants and the Tenant hereby accepts a tenancy of the Said Premises for the term, commencing from the date and terminating on the date stated in Section 5(a) (b) and (c) respectively of the Schedule hereto. 2. The monthly rental stipulated in Section 6 (a) of the Schedule hereto shall be due and payable in advance in the manner and at the time stipulated in Section 6 (b) respectively of the Schedule hereto. 3.

The Tenant shall upon execution of this Agreement and prior to the occupation of the Said Premises pay the Landlord the deposit stipulated in Section 7 of the Schedule hereto (receipt whereof the Landlord hereby acknowledges) as security for the due observance and performance by the Tenant of all his duties and obligations hereunder and on its part to be performed and fulfilled. The said deposits shall be maintained at this figure during the term of this tenancy and the Tenant shall not be entitled to utilise the said deposit to off-set any rental due under this agreement ithout the previous written consent of the Landlord and the same shall be returned to the Tenant free of interest within 30 (Thirty) days upon expiry or sooner determination of the term hereby created less any sums as may then be due to the Landlord for damage caused to the Said Premises by the Tenant (damage due to normal wear and tear excepted). 4. The Tenant shall upon execution of this Agreement and prior to the occupation of the Said Premises pay the Landlord the water and electricity deposits stipulated in Section 8 of the Schedule hereto (collectively as the Utility Deposits).

The Tenant shall not be entitled to utilise the said deposit to off-set any rental due under this agreement without the previous written consent of the Landlord and the same shall be refunded to the Tenant free of interest within 30 (Thirty) days upon expiry or sooner determination of the term hereby created less such sum or sums as may then be due and outstanding. For the purposes of determining the current deposits, it is hereby agreed that photocopy of the requisite receipt notice or other written communication from the relevant Department shall be conclusive. 5.

THE TENANT HEREBY COVENANTS WITH THE LANDLORD as follows:- 5. 1To pay the reserved rent on the days and in the manner aforesaid. 2. To pay all charges due and incurred in respect of electricity, water and all other utilities supplied to the Said Premises. 5. 3To keep the Said Premises, the fixtures and fittings listed in the Inventory hereto (if any) together with any additions thereto in a good and tenantable repair condition (normal wear and tear excepted) and to replace or repair any of the aforesaid items and any part of the Said Premises and the Landlord’s fixtures and fittings which shall be damaged. . 4To permit the Landlord, his agents or workmen at all reasonable times to enter upon and view the condition of the Said Premises and to take inventories of the Landlord’s fixtures therein and to do structural or external repairs to the Said Premises PROVIDED ALWAYS that the Landlord shall except in the case of extreme urgency for the purpose of protecting the safety of the Said Premises give to the Tenant prior written notice of the intention of the Landlord his agents or workmen to enter upon the Said Premises for the aforesaid purpose; 5. Not to make any alterations in or additions to the Said Premises or suffer to be cut, maimed or injured any of the walls, ceilings, windows, doors, timbers, fixtures or fittings without the consent of the Landlord first had and obtained and in all circumstances shall be in conformity with all relevant laws, by-laws and regulations, If so requested by the Landlord, to restore the demised premises to their original state and condition at the expense of the Tenant except in the event where the Landlord so desires to accept the condition that they are in. 5. To keep the interior of the Said Premises, the flooring and interior plaster or other surface materials or renderings on walls and ceilings and the Landlord’s fixtures thereon including doors, windows, glass, shutters, locks, fastenings, electric wires, installation and fittings for the light, power and other fixtures and additions thereon and piping in good tenantable repair (reasonable wear and tear, riot, civil commotion and damage by fire or any other destruction not due to the Tenant or his servants and all other deriving right from the Tenant to be present in the Said Premises and flooding, tempest, storm or any other act of God excluded) and to keep the Said Premises clean and weeded, if applicable; 5. Not to do or permit to be done anything which will or may infringe or violate any laws or regulations pertaining to the Said Premises that may be imposed by the competent authority or authorities and to observe and to be personally responsible for any infringement or violation against such regulations rules or laws and to fully indemnify the Landlord in respect thereof; 5. 8Not to assign, sub-let, charge or part with the possession of the Premises or any part thereof without the consent of the Landlord first had and obtained; 5. 9Not to permit or suffer to be done in or upon the Said Premises or any part there of anything which may be or become a nuisance or annoyance or cause damage or inconvenience to the Landlord or to the tenants, occupiers or lessees of neighboring premises or for any illegal or immoral purpose; 5. 0Not to do or permit to be done anything whereby the policy or policies of insurance on the Said Premises against damage by fire or other risks for the time being subsisting may become void or voidable or whereby the rate of premium may be increased and to make good all damages suffered by the Landlord and to repay to the Landlord on demand all sums paid by way of increased premium and all expenses incurred by the Landlord in or about any renewal of such policy or policies rendered necessary by a breach or non-observance of this covenant without prejudice to the other rights of the Landlord; 5. 11To use and occupy the Said Premises for the purpose as stated in Section 10 of the Schedule hereto only; 5. 12To yield up the Said Premises with the Landlord’s fixtures and fittings at the expiration or sooner determination of the said term in good and substantial repair and condition in accordance with the several covenants hereinbefore contained; 5. 13Not to install any electrical sockets, plugs or electrical power points or electrical motor or engine or appliance or air-conditioner without first informing the Landlord.

In the event that the Tenant commits a breach of this covenant and as a result of which the Landlord suffers any loss or damage, the Tenant shall forthwith indemnify the Landlord against all such loss and damage; 5. 14Not to damage or deface or cause or permit any servant or agent of the Tenant to damage or deface any part of the Said Premises or common passage way, stairs, water closets, lavatories and conveniences while moving any furniture, equipment, fittings, fixtures or any other thing whatsoever or by anything whatsoever or by any means whatsoever and to forthwith repair and make good or to pay to the Landlord for the cost of making good such damage or defacement to the satisfaction of the Landlord; 5. 5Not to allow any vehicles or bicycles or containers belonging to or under the control of the Tenant or its servants or agents or invitees to be parked in or near the Said Premises so as to be a hindrance to other lawful users thereof; 5. 16Not to bring or store or permit or suffer to be brought or stored in the Said Premises arms ammunition or unlawful goods, gun, powder, saltpetre, kerosene or any combustible substance or any coffin wreath or any funerary goods or goods which in the opinion of the Landlord are of noxious or dangerous or hazardous nature; 5. 17To permit intending tenants and others with written authority from the Landlord or its agents at all reasonable times of the day to enter and view the Said Premises at any time during one (1) calendar month immediately preceding the determination of the term hereby created. 5. 8To indemnify and keep safe the Landlord against all claims, demands, proceedings costs, charges and expenses arising out of or in consequence of any damage, injury or loss which may at any time during the said term be caused to or suffered by the servants, agents, licencees or invitees of the Tenant or any of them or by the Said Premises or any part thereof or to any goods or property of such persons in or about the Said Premises occasioned by or arising from fire, water, storm, tempest, earthquake, insects, theft, burglary or explosion, nuclear, riots or civil commotion, enemy action or by reason of the defective working, stoppage or breakage of any appliances, pipes, cables, apparatus or lift or air conditioning plant or other machinery, if any, in or under passing through or connected with or used for the purposes of the Said Premises or any part thereof or failure of supply of electricity or other supplies or in any way owing to the overflow of water into the Said Premises or owing to the negligence of the Tenant or any neighbors of the Tenant; 6. THE LANDLORD HEREBY COVENANTS WITH THE TENANT as follows:- 6. 1To pay the Quit Rents, assessments, service charges and other outgoings relating the Said Premises other than those herein agreed to be paid by the Tenant. 6. 2At all times through the period of this Agreement to keep the Said Premises except the furniture, fixtures therein belonging to the Tenant insured against loss or damage by fire or tempest and in case of destruction by fire or tempest to replace or reinstate the same as speedily as possible. 6. To maintain and keep the main structure and external walls of the Said Premises in good and tenantable repair and condition throughout the term hereby created and at the request of the Tenant in writing to forthwith execute such repairs or work or make such replacements and if the Landlord shall not within ten (10) days after the service of such notice proceed diligently with the execution of such repairs or the making of such repairs or the making of such replacements then it shall be lawful for the Tenant to execute such repairs or work or make such replacements and the cost thereof shall be a debt due from the Landlord to the Tenant and be forthwith recoverable by deducting the said debt sum from the rental payable or action together with such costs and expenses (if any) including legal fees (on a solicitor and client basis) incurred or suffered by the Tenant in the recovery or attempts to recover such debts; 6. The Tenant paying the rent hereby reserved and observing and performing the several covenants and stipulations herein contained on the part of the Tenant shall be permitted to hold and enjoy the Said Premises throughout the said term without any interruption by the Landlord or any person rightfully claiming under or in trust for him; 6. 5The Tenant shall before the determination of the tenancy be at liberty to remove from the Said Premises all such fixtures as shall have been erected by the Tenant during the tenancy provided there is no arrears in rental and shall indemnify and keep safe the Landlord with respect to any damage caused to the Said Premises. 7. PROVIDED ALWAYS AND IT IS EXPRESSLY AGREED BETWEEN BOTH PARTIES as follows:- 7. If at any time the rent or any part thereof (whether formally demanded or not) shall remain unpaid or unsatisfied for seven (7) days after becoming payable or if any of the Tenant’s covenant shall not be performed or observed or if the Tenant shall suffer execution on the Said Premises or if the Tenant shall become a bankrupt or being a company or corporation shall go into liquidation otherwise than for the purpose of amalgamation or reconstruction or if the Tenant for the time being shall enter into any composition with the Tenant’s creditors or suffer any distress or execution to be levied on the Tenant’s goods then and in any of those events it shall be lawful for the Landlord or any persons authorised by the Landlord in that behalf at any time thereafter to re-enter upon the Said Premises or any part thereof in the name of the whole and thereupon this tenancy shall absolutely determine but without prejudice to any right of action or remedy of the Landlord in respect of any breach of the Tenant’s covenants herein contained. 7. If the Said Premises or any part thereof shall at any time during the term hereby created be destroyed or damaged by fire (except where such fire has been caused by the fault or negligence of the Tenant) so as to be unfit for occupation or use for a period greater than One (1) month the rent hereby reserved or a fair proportion thereof according to the nature and extent of the damage sustained shall (after the expiration of the aforesaid One (1) month period) be suspended until the Said Premises shall again be rendered fit for occupation and use AND PROVIDED ALWAYS that if the Said Premises or any part thereof shall not be rendered and reinstated and made ready and fit for occupation within a period of Two (2) months from the date of happening of any such event the Tenant shall be at liberty to give to the Landlord One (1) calendar month’s notice in writing determining the Tenancy hereby created and thereupon this Tenancy shall absolutely determine and the Security Deposit and the Utilities Deposit paid by the Tenant hereunder shall be refunded to the Tenant forthwith but without prejudice to the right of action of the Landlord in respect of any antecedent breach of any covenant or condition herein contained. 7. 3In the event of frustration whether due to an Act of God, war or acquisition of the Said Premises by the Governmental Authority or Authorities or any other Governmental actions beyond the control of the Landlord then this Agreement shall automatically become terminated and of no further effect and in such a case neither party hereto shall have any claim against the other but without prejudice to the right of either party in respect of any antecedent breach of any covenant or condition herein contained; 7. In the event the Tenant shall be desirous of taking a tenancy of the Said Premises for a further term, the Tenant shall give the Landlord two (2) months’ written notice of the same. Provided always that the terms and conditions of this Agreement shall have been duly observed and performed by the Tenant, the Landlord shall grant the Tenant a further term of tenancy as is specified in Section 9 of the Schedule hereto upon the same terms and conditions (save and except for this clause) and at a rent to be mutually agreed by the parties hereto subject to such increase in accordance to the prevailing market. The renewal hereof shall be subject to the same covenants and conditions as in this present Tenancy reserved and contained except for this present covenant for renewal. 7. In the event that the Tenant shall abandon the Said Premises for any reason whatsoever then and upon the happening of any such events aforesaid it shall be lawful for the Landlord at any time thereafter to re-enter upon the Said Premises or any part thereof in the name of the whole and whereupon the term hereby granted shall be forfeited by the Landlord but without prejudice to such other rights power and remedies conferred upon the Landlord under any law or rules or equity against the Tenant for any loss or damages incurred or suffered by the Landlord arising out of such breach or default on the part of the Tenant and including any other claim in respect of any antecedent breach. In addition thereto the Tenant shall pay to the Landlord a sum equal to the remainder of the Rent for the whole of the unexpired period of the said term as liquidated damages. 7. Notwithstanding anything herein contained, if this Agreement shall come to an end whether by efflux ion of time or otherwise and the Tenant fails to remove all his goods (which expression shall include personal property of every description) from the Said Premises it shall be lawful for the Landlord to sell or otherwise dispose of the goods of the Tenant in the Said Premises at such time and such place and in such manner as the Landlord shall in his absolute rights, powers and remedies of the Landlord, the Landlord shall after payment out of the proceeds of such sale of the costs and expenses connected with such sale then apply the net proceeds of such sale towards payments of all arrears of Rent and all other moneys due and owing by the Tenant to the landlord under this Agreement and the balance (if any) shall be paid out to the Tenant thereof. 7. 7There shall be no termination of the tenancy during the term specified in Section 5 of the Schedule by either party. In case of breach, whichever party who committed the breach shall compensate a sum equivalent to the remaining periods of the stated tenancy period to the grieved party. 7. In the event the Landlord shall be desirous of selling the Said Premises prior to the expiration of the term hereby created, the Landlord hereby covenants, undertakes and agrees that such sale shall be subject to this tenancy and shall procure the Purchaser to continue with the terms and conditions of this Agreement in lieu of the Landlord. 7. 9All costs and incidentals to the preparation and completion of this Agreement including stamp duty shall be borne by the Tenant and each party shall bear their own solicitor’s fees. 7. 10Any notice in writing under the terms and conditions of this Agreement to be sent to either party hereto on the other shall be by prepaid registered post and shall be deemed to be sufficiently served at the time when the ordinary course of post would have been delivered. 8In this Agreement unless there is something in the subject or context nconsistent with such construction or unless it is otherwise expressly provided: – 8. 1The terms “Landlord” and “Tenant” shall include their heirs, personal representatives and successors in title. 8. 2Words importing the masculine gender only shall include feminine and neuter genders and vice versa. 8. 3Words importing the singular number only shall include the plural and vice versa. IN WITNESS WHEREOF the parties hereto have hereunder set their hands the day and year specified in Section 1 of the Schedule hereto. SIGNED BY THE SAID LANDLORD NAME: Chin Hong Tuck) (NRIC NO : 831023-14-5163)) )) ) ) In the presence of : ) (NRIC NO : )) SIGNED BY THE SAID TENANT CO.

NAME : REALKEY SOLUTIONS ) SDN BHD) (CO. NO : 802559-A)) )) NAME : MR. NORAZMI BIN ABAS) (NRIC NO: 731108-01-5765)) In the presence of : ) (NRIC NO : )) THE SCHEDULE (Which is to be taken, read and construed as an essential part of this Agreement) |SECT |ITEMS |PARTICULARS | |NO | | | | | | | |1. Date of Agreement : |This 19 day of January 2010 | | | |Chin Hong Tuck | |2. |Description of Landlord |831023-14-5163 | | | |143, jalan Maharajalela, | | | |50150 Kuala Lumpur | | | |Realkey Solutions Sdn.

Bhd. | |3. |Description of Tenant |802559-A | | | |No. 179-2, Jalan Bestari 1/5, | | | |Taman Nusa Bestari, | | | |81300 Skudai. Johor | | | |179-01, Jalan Bestari 1/5, Tmn Nusa Bestari, 81300 Skudai, Johor. | |4. Description of Said Premises |First Floor of three storey terrace shop office | | | | | | | | | |5 a. |Term |Two (2) Years | | | | | |5 b. |Commencing |25 January 2010 | | | | | |5 c. Terminating |25 January 2012 | | | | | |6 a. |Monthly Rental |Ringgit Malaysia One thousand & two hundred only | | | |RM 1200 | | | | | |6 b. |Due On |Due and payable on the 7thday of each month. | | | | | |7. Security Deposits |Ringgit Malaysia Two thousand & four hundred only | | |(2 months rental) |RM 2400 | | | | | |8. |Utility Deposits |Ringgit Malaysia One thousand & two hundred only | | | |RM 1200 | | | | | |9. Option To Renew |Two (2) Year | | | | | | | |Follow the market rental rate | | | | | |10. |Use of the Said Premises. |For Hotel / Restaurant / Office / Retail use only. | | | | | ———————– Parties Description of Said Premises Inventory of Furnishings Agreement To Rent Term Of Tenancy Monthly Rental and date payable Rental Deposit Utility Deposit Tenant Covenants To Pay Reserved Rent Payment of Utilities To keep in good condition Not to make alterations to Said Premises

To permit entry for inspection and repair purposes. Not to assign and sublet Not to do acts which will affect the Landlord . Not to cause damage to the Said Premises. To keep interior in good tenantable repair. Not to violate any laws pertaining to Said Premises. Used for stated purpose only To yield up Said Premises in good condition upon expiry. Not to install electrical points without Landlord’s permission. Not to damage or deface any part of the Said Premise . Not to allow vehicles to be parked near the Said Premises. Not to store unlawful good. Permission for viewing. To indemnify the Landlord against all claims. To pay quit rent,assessment and service charges.

To maintain structure of Said Premises in tenantable repair condition. To allow Tenant to enjoy Said Premises without Landlord’s interruption. To remove all fixtures upon termination of tenancy. Termination in the event of non-reinstatement. To keep insured and reinstate Said Premises. Suspension of Reserved Rent Destruction or damage to Said Premises. Option to renew. Termination clause Sales of Said Premises subject to tenancy Cost of preparing agreement Service of notice Interpretation Permission to re-enter Said Premises. Landlord’s right to sell Tenant’s goods remain in the Said Premises. Power of re-entry In the event of acts beyond Landlord’s control.

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A Street Market in Summer

A street market in summer A street market in summer is always a wonderful sight. As with markets, the street is lined with stalls of fresh produce, fresh foods, clothing, cooked foods, flowers, and even electronics. The sellers boast the greenest of green vegetables, the reddest of red apples that even Snow-White could not resist to bite a second time, pulses and beans in small plastic bags so that every strata of buyers can afford, the fashionable women’s dresses with various colours, some rivaling the scorching sun in the afternoon.

Some stalls are superbly structured with marvelous displays while some hawkers just spread their items on the ground. Umbrellas, all kinds and all colours float midair, protecting some sun-shy shoppers from the heat. Roadside food-stalls, in their makeshift arrangements, provide shoppers with piping hot food, refreshing cold drinks, whatever the customers ask for. The exotic smelling aromas, the sweet smelling aromas, the tantalizing aromas, of cooked food in various tastes and styles, filled and floated through the air.

People, some short, some tall, some fat, some thin, some old and some young, men, women, jostle with each other to reach the items of their interest. People shove, elbow, push at each other, some hurrying, some dithering, some dashing, some wavering. The aims of these people could not be fathomed. Housewives, old and new, young and old, bargain with vendors, trying to get the best items with the best prices. And vendors cajoling the customers with soft words and humble gestures.

Now and then, someone would sing a latest hit at the top of his voice. Vendors pitch their wares in mounting crescendos – trying to outdo the next seller. Soft-spoken sweet talks of some sellers and intermittent sounds of sizzling fries and knocking of ladles on woks could also be heard. A street market in summer which stirs up the senses with its beauty, aroma, and interesting sounds, provide a warm and friendly environment to all who are present. This is one way of our society that gives a meaningful life to the people.

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Service Failure and Service Revovery

An Assignment on Service Failure and Service Recovery 28th August, 2011 A Service is an experience that a consumer derives at the time of its purchase. It is largely tangible and cannot be owned. Moreover, it is the outcome of being in contact (whether it is low-contact, hybrid or high-contact) with the service provider. Considering this, it is but natural that errors and failures occur. What differentiates one service provider and experience from the other is the way the error is corrected and compensated for. Service Failures bring about negative feelings and responses from customers.

Left unfixed, service failures can result in customers leaving, telling other customers about their negative experiences, and challenging the organization through consumer rights organizations or legal channels. Service Recovery refers to the actions taken by an organization in response to a service failure. An example of a Service failure and recovery experienced by me is accounted for below: The case in hand is a high-contact service as there is high customer involvement in the process of service delivery. I encountered this problem about a month back. I was in Splash, a fashion store in Hyderabad, with a few friends.

There was a sale going on (Buy 1 Get 1 Free). We decided to buy two handbags worth Rs. 1000/- each and two accessories worth Rs. 500/- each. Considering the sale that was going on we expected to be charged Rs. 1500. But to our dismay the employee at the counter charged us Rs. 2000 at the counter and swiped the credit card before we could react to the mistake. This could have happened as we were expecting to get one bag free for the other one and one accessory free for the other one but the employee chose to charge us with both the higher prices and give us the low-priced items free.

The other reason for the mistake could be the process of billing which was very chaotic as there were too many customers and very few employees at the billing counter. As soon as we realized what was happening, we questioned him and asked him to correct the mistake and re-print the bill. Initially he did not accept his mistake but after a small argument he agreed to re-bill the items and charge us with the correct amount. Moreover as he had already swiped the credit card for a higher amount, he refunded the excess amount in cash.

Prior to the above service failure, I would have rated the above service provider a 6. I would rate the perceived criticality of the service failure 5 as the service provider could have been cheating us. If a customer wouldn’t pay attention to the bill, he could get away with over charging the customer. On a scale of 1-7, I would rate my satisfaction with the service provider after the recovery efforts a 5. The service provider did correct his mistake but he shouldn’t have argued in the first place, knowing that it was his mistake.

Moreover, he should have been more empathetic and apologetic. After the incident also I continued to deal with the service provider because this was the first time I had encountered such a problem in Splash. Moreover, I was satisfied with the recovery process. I discussed the incident with family and friends so that they can be more careful when they go to any store at a time when it is so crowded. SERVICE FAILURE AND 7P’S OF MARKETING In the case mentioned above the three P’s that play a major role are: 1. Price – The service provider was over charging us for the product purchased.

Price is the main component involved in the service failure. 2. People – The other element of the service marketing mix that plays a major role is people. It wasn’t a case of a defected product; it was a mistake on the part of the service provider. It could have also been an act committed on purpose. 3. Process – Process was a minor part of the entire scenario. The reason being that the process of billing was very chaotic. Due to the sale, there were too many customers and very few employees making the entire process very unorganized.

SERVICE FAILURE AND SERVICE QUALITY GAPS There are five gaps in the service quality model (Consumer expectation – management perception gap, Management perception – service quality specification gap, Service quality specifications – service delivery gap, service delivery – external communications gap, Expected service – perceived service gap). In the case mentioned above, the following service gaps can be mapped: GAP 3: Service quality specifications – service delivery gap It is the duty of any employee to perform his service well and treat the customer correctly.

In the above case, the service provider faltered in both. Firstly he did not perform the service well and then he argued with us instead of accepting his mistake. This affected the service quality from our viewpoint. GAP 4: Service delivery – external communications gap As mentioned above, the promised service (in the promotions and advertisements) was that of one on one free for any product of the same or lesser cost. Contrary to what was promised, we were over charged and only the high priced products were billed.

This was the gap between what was promised and what was delivered. GAP 5: Expected service – perceived service gap We expected the employee to be apologetic and empathetic after having committed the mistake but instead he first argued with us and then corrected it. Had he been more empathetic and apologetic, the matter would have been solved then and there without any hard feelings. Even if he was sorry he did not express it well enough. SERVICE FAILURE AND SERVICE QUALITY DIMENSIONS The service quality dimensions involved in the service failure mentioned above are: 1.

Reliability – Reliability involves consistency of performance and dependability. The reliability dimension was involved in this case as the billing was done incorrectly by the service provider, thus proving to be inconsistent and not dependable. 2. Responsiveness – Responsiveness concerns the willingness or readiness of employees to provide service. It involves timeliness of service. In our case, the matter could have been solved much earlier had it not been for the argument of the service provider. The responsiveness of the employee was low.

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A Shift from Product Orientation to Customer Orientation Bsnl- Bharat Sanchar Nigam Limited

A SHIFT FROM PRODUCT ORIENTATION TO CUSTOMER ORIENTATION BSNL- BHARAT SANCHAR NIGAM LIMITED INTRODUCTION- Alexander Graham Bell invented Telephone and he patented Telephone instrument in 1876. Indian Posts and Telegraphs department (P&T) was controlling the communication industry. In 1985, Indian P&T bifurcated into Department of Postal Service and Department of Telecommunication. After the corporatization of DoT in 2000, BSNL was formed.

The control of telephone system of Mumbai and Delhi came under MTNL- Mahanagar Telephone Nigam Limited and telephone system control of Calcutta along with other cities had been transferred to BSNL- Bharat Sanchar Nigam Limited. It had been enjoying monopoly during the socialist period of Indian economy because it was the only telecom service provider in the country. Due to this reason BSNL’s marketing strategy was product oriented. After the liberalization of Indian economy in 1991 the company faced competition for the first time. To be in the market, it had to become customer oriented.

WHAT IS PRODUCT ORIENTATION? Product orientation is a management philosophy in which producers emphasize on production technique and unit cost reduction rather than customer needs and wants. In this technique producer believes that “Supply creates its own demand” i. e, “If somebody makes a product someone will want to buy it. ” WHAT IS CUSTOMER ORIENTATION? Customer orientation is a belief wherein customer needs and wants are the primary focus of an organization. Customer orientation emphasizes on listening to customers and building long-term relationships with the consumer. BSNL – PRODUCT ORIENTATION

Before liberalization, Government of India used to regulate telecommunication market and GOI restricted the involvement of foreign players. Though many technological developments took place in this regime, but due to heavy license fee for providing mobile services, the tariff rates were very high. A mobile handset was costing around Rs. 15000 and outgoing and incoming call rates were Rs. 16/minute and Rs. 8/minute respectively. Mobile services were confined to affluent. That’s why BSNL was enjoying a monopoly market and it had emerged as the 7th largest Telecom Operating Company in the world.

But BSNL didn’t care about its customer retention. There were faults in network and complaints of poor quality services. The average number of faults per 100 main lines per year in BSNL’s landline network was more than 150 where as world average was only 25. The customer had to use BSNL’s services, as there was no other option for them. ENTRY OF PRIVATE PLAYERS AND BSNL WAS LOSING CUSTOMERS In 1994, Government of India introduced National telecommunication Policy (NTP) to release monopoly of state owned DoT and VSNL. Foreign investors were eligible to hold 49% stake of the telecom industry.

In 1999, GOI introduced a new telecom policy (NTP99) and telecom industry migrated to a revenue sharing regime. The license fee of providing mobile service was reduced and there was reduction in call rates by 60%. GOI further liberalized local telecom services and assured foreign involvement in long distance. 20 telecommunication services for basic telephony and 18 circles for mobile telephony had been created. BSNL was at worse hit due to the emergence of foreign investor in Indian Telecom market. Indian mobile market was at a potential growth. Over 32 million handsets were sold in India.

Reduced call rates had enabled every common middle class family to afford a cell phone. As BSNL was a product-oriented company, it didn’t focus to retain its customer base. As a result, BSNL’s customer base was shrinking at an alarming rate. Due to delay in deploying new connections, there was 20% decline in customer-based growth rate in 2002 as compared to previous year. Moreover, during 2002, customers surrendered around 2. 5 million landline connections. This is because, before mobile services became popular, many people used to take more than one landline connection for their communication convenience.

But mobile communication made the second landline option needless. In addition to this, one of the major reasons behind surrendering landline connection was 1×6 rule introduced by Income Tax Department. Under this rule, many subscribers who were exempt from tax, had to file income tax return if they owned a telephone. Not only from the mobile service providers, BSNL was also facing tough competition from new private landline operators. Many of BSNL’s customers who were under OYT (Own Your Telephone) scheme switched to private player to recover there deposit as there was significant difference charged by BSNL compared to the private players.

All these situations BSNL could have controlled but it didn’t. STEPS TOWARDS CUSTOMER ORIENTATION AND FORAY IN CELLULAR SERVICES In 2000, mobile service has seen phenomenal growth. BSNL had to take step towards survival. It decided to launch its cellular service by April, 2002. But the launched delayed for few months. This resulted in loss of many prospective customer. CellOne (Post-paid) and Excel (Pre-paid) were launched in October, 2002. It was launched in two-phases. Within December, 2002 they launched the service in metro-cities and town in all the states and remaining areas were covered by December, 2003.

It was the biggest cellular services till then in terms of networking and thus BSNL roped around 350,000 customers within the first 2 months of launch. BSNL’S CUSTOMAR ORIENTED APPROACH &REVISED MARKETING STRATEGY To strengthen its position in telecom industry, BSNL had to revamp its strategy and shift towards market orientation. “We are completely revamping the sales and distribution network,” Kuldeep Goyal,Chairman and MD,BSNL said. To have a competitive advantage, BSNL became more customer-focused. Acquiring customer is not sufficient but retention of customer is also equally important for company’s profitability and growth.

They introduced 7 P’s of service marketing in their marketing strategy. These P’s are product, price, place, promotion, physical evidence, people and process. COMPARISON OF P’S- PRODUCT Vs CUSTOMER ORIENTATION PRODUCT ORIENTATIONCUSTOMER ORIENTATION PRODUCT-Narrow Only Fixed LandLine. PRODUCT-Diversified •Universal Telecom Services- Fixed wireline services called ‘bfone’ and WLL (Wireless in Local Loop) using CDMA technology called ‘Tarang’. •Cellular Mobile Telephone Services- GSM Cellular service provider as CellOne (Post-paid) and Excel (Pre-paid). To built brand equity, BSNL re-branded its cellular services as BSNL Mobile. Internet – Dial-up connection internet services provided as ‘Sancharnet’(pre-paid) and ‘NetOne’(Post-paid). It also provides ADSL Broadband service for internet. 2007 was “Year of Broadband” in India. BSNL has around 50% market share in broadband in India. •Intelligent Network (IN) – Televoting, toll-free calling, premium calling etc. •3G- 3rd Generation service that facilitate video calling etc. •IPTV – ‘Internet Protocol Television’ facility that enable subscriber to watch TV through internet. •FTTH- ‘Fibre To The Home’ facility. It provides higher bandwidth for data transfer. BSNL has also launched an Entertainment Portal named ‘BSNL Hungama Portal’. From this portal, customer can download music, music videos, and various online games for free. PRICE- Due to monopoly in market prices were high and unfair. PRICE- BSNL accepted PRICING TRIPOD MODEL- a)Cost b)Competition &c)Value to customers. •Slashed STD,ISD call-rates to the lowest rate in the market. •BSNL reduced its tariff rates of cellular services, reduced airtime charges. Call rate of CellOne to CellOne and CellOne to BSNL Landline was low compare to other networks. PLACE- •BSNL provided telecom network access to 5. lakh villages through VPT (Village Public Telephone). It also provided 13. 59 million rural DELs. •Non-optimization of network capabilities was its weakness. PLACE- •Broadened its distribution network to ensure PAN-India reach. •Many sub franchisees, more than 150 retailers & many end user level employees are present to distribute the SIM card. PROMOTION- •No investment in advertising and promotion of product because they do not feel any need to raise awareness of the existence of the product. PROMOTION- To strengthen its brand position and to create awareness in mass, BSNL took some innovative promotional strategies.

Advertising and promotion is an important component of market orientation. •BSNL attracted its customer by providing low cost schemes. •In 2009 BSNL launched India’s 1st integrated Mobile advertising service. This enabled BSNL subscribers to earn talktime by registering in this service. It is currently available in BSNL’s West Zone circle. •To attract the customer they are providing celebrity endorsement. Deepika Padukone is brand ambassador. •On 20th March, 2009 BSNL advertised the launch of BlackBerry services in India. •BSNL tied up with ‘Rajdhani’ to publicize its 3G Network.

As much as 25000 square feet of BSNL advertisement would be wrapped on to Rajdhani Express trains with a special quality vinyl. It is a massive ‘Peacock Media’ campaign in visual area launched as ‘BSNL 3G branded Rajdhani Trains’ targeted to attract 15 million eye-balls in 34 location across 11 states. •To lure more customers of 3G, BSNL is offering free 3G Broadband data card. It is a 90 days promotional offer. BSNL’S CUSTOMER CARE SERVICES TO CATER SUBSCRIBER- •Set up more than 3200 ‘customer service centre’ across the country to provide connection easily and to also provide fault repair system easily. 81 ‘quality assurance center’ were also set up across India and these centers was made for conducting market research from the customers’ points of view and for evaluating and comparing the quality of the services offered by BSNL and its competitors. •BSNL created ‘call centers’ across the country to provide information and to answer customer queries. •Customers can make payments 24X7 at their convenience. PRESENT MARKET POSITION OF BSNL Though BSNL was adding customer very fast but due to delayed expansion plan it lost its 1st position and emerged as 2nd largest player after Hutch-Essar in mid-2003.

In August 2008, BSNL lost its number one position combining fixed and mobile phones to Bharti Airtel. As of March 2010, BSNL has over 63. 45 million customer base. It is the largest landline telephone service provider in India. It is the 4th largest operator by subscriber base in the GSM mobile segment after Bharti Airtel, Vodaphone and Idea Cellular. Since 2006, BSNL has embarked upon a transformation exercise to remain competitive, but still it is lacking in sales and distribution and innovative advertising compare to its competitor. That’s why its market share has declined to 15. 75% as on Feb, 2010 from 31. 9% in 2006-07 and recently in 2010, it lost its 3rd position in GSM mobile service near IDEA Cellular. Moreover, BSNL’s profit has come down to only 178 crore in 2009-2010. FUTURE PROSPECT OF BSNL BSNL is constantly making effort to modernize its marketing strategy, to introduce new services in affordable price, to improve its landline network and to provide value added services. To increase its market share, it is leasing passive infrastructure to other service provider, improving customer care and after sales service and BSNL is also trying to explore opportunities in overseas market.

It has also planned to roll out its Wimax Network to provide wireless broadband services in rural blocks in 2010-11. Future plan of BSNL is to increase its customer base to 108 million customer by 2010 and BSNL being a rural pioneer, recently bagged 80% of $US 580 million “Rural Telephony project of Government of India” and thus the target appears achievable. BSNL is also planning to go for IPO to offload 10% to public in Rs. 300-400 range. It would also increase its attachment with public and it would let public understand the kind of value BSNL generate in the telecom industry. Submitted by- GROUP-2

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Chapter Ii: Related Literature and Studies of Inventory System

Chapter II: Related Literature and Studies Review of Related Literature In exploration, we find new techniques, new knowledge, even develop new substances, gadgets, equipment, processes or procedures, imagination and skill is employed by the researcher. The commodities, new devices, services, in technology are needs of man for a better fuller life which is the concern of the research. These useful arts are the products of the technological environment and the end-user is society in general.

The fast growing trend and innovation in technologies today prompts researchers to conduct studies about the efficiency of system program. This Chapter presents a brief review of literature and studies, both local and foreign that is related to these studies. Review of Related Studies The following statements given are related to our study about the inventory system which is found very useful for the proponents in making the system. It is nearly impossible to overemphasize the importance of keeping inventory levels under control,” Ronald Pachura wrote in an article for IIE Solutions. “Whether the problems incurred are caused by carrying too little or too much inventory, manufacturers need to become aware that inventory control is not just a materials management or warehouse department issue. The purchasing, receiving, engineering, manufacturing, and accounting departments all contribute to the accuracy of the inventory methods and records. It is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today’s keenly competitive business world. Writing in Production and Inventory Management Journal, Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management.

According to Udo, companies that make good use of this technology are far better equipped to succeed than those who rely on outdated or unwieldy methods of inventory control. Automation can draidatically affect all phases of inventory management, including counting and monitoring of inventory items; recording and retrieval of item storage locations; recording changes to inventory; and anticipating inventory needs, including inventory handling requirements.

This is true even of stand-alone systems that are not integrated with other areas of the business. But many analysts indicate that productivity—and hence profitability—gains that are garnered through use of automated systems can be increased when a business integrates its inventory control systems with other systems, such as accounting and sales, to better manage…

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Popular Sports in Malaysia

A sport is an activity that is organized, competitive and entertaining, in which a winner can be defined by objective means. The sports in Malaysia has become a major activity in the local universities where they often perform an annual sports or recreational activities between universities and colleges merely to inculcate the spirit of cooperation and the spirit to win a competition and meet each other and thus strengthen the relationship between one another. Sports in field in Malaysia can be considered as a major sport that is done by people of multiple ages.

Among the sports in fields such as hockey, rugby and field bowling, football is the most popular sports in Malaysia. It requires very little equipment and effort to learn the basics. Thus, kids can start playing football at an early age and go on to become ardent followers of game. Badminton is one of the popular physical sports in our country. Players score points by striking a shuttlecock with their racquet so that it passes over the net and lands in their opponents’ half of the court.

Each side may only strike the shuttlecock once before it passes over the net. A rally ends once the shuttlecock has struck the floor. It is a very interesting sport game because it is a game that demonstrates speed, stamina, agility, power and also delicate skills and touches. Moreover, netball is a popular game for girls and women in Malaysia. It is part of the school curriculum with the basic skills being introduced at primary level as early as year 3 (8 years old).

Most schools, government agencies, universities, colleges, clubs and the private sector have their own netball teams. They play more for recreation than competition and usually twice a week. Water sports in Malaysia are also among the sports that attract public attention. There are various water sports such as yacht, speed boat, kayak, swimming, diving, water polo and snorkeling. These sports are usually played either at the aquatic center, ponds, lakes, rivers and sea. Water sports in Malaysia have also been introduced until the international level.