OPERATIONS

MANAGEMENT-II
Case Study

TOPIC: Smithy’s Brewery (Case No.-41)

SEC: F

Submitted to: Prof. Vimal Kumar

Submitted by:

NAME ROLL NO.

Iresha Patil 2017223061
Q.1) Why was Smithy’s Brewery considering improving its customer service?

Ans. Smithy’s Brewery was known for its traditional real ale production. But, because of growing
competition and the changing taste in the market, the management decided to increase the standards
of service and product quality that they were offering to the customers. A survey commissioned by the
brewery revealed that service is important to customers. The survey also revealed that the customers
felt that staff attitudes were crucial in creating the right atmosphere and that customers expected them
to be friendly, happy, smiling, polite and efficient. Every single person in the survey agreed that pubs
should provide a friendly, warm and happy atmosphere. Moreover, customers believed that the high
turnover of staff was an indication of poor management.

Smithy’s brewery need to position themselves as a traditional brand with good honest values of good
beer, good food and homely service provided by people who care. They do not have a USP as compared
to large chains. Due to declining sales the managers have to cut down on staff. As a result, customers
would walk out because they were not getting served fast enough. So, they were left with stale beer.

Q.2) How good or bad was its service and how reliable is the evidence presented in the case?

Ans. Smithy’s had good traditional beers and excellent pubs. According to many people its service is
neither too bad nor also very good. Management was in a dilemma that what accounted for good
service. So, the management have to work in a direction where they have a good quality service in
order to achieve success and to have edge over its competitors.

The evidence presented in the case is reliable because they only received 10 complaints a month
compared to thousands of sales every single day. A survey commissioned by the brewery tells that
good service is important to customers. It was found that staff plays a major role in forming the
atmosphere of a pub. Therefore, They have to be friendly, polite, happy and efficient.

Q.3) What are the Barriers to improvement?

Ans. The barriers to improvement in Smithy’s brewery were:

1. Staffing Problem
The main problem with Smithy’s brewery was that the pub managers used to rely heavily on
part-time staff. Most of the pub managers have difficulty in recruiting good staff.
Another problem is the high staff turnover rate.
Another source of problem was the staff training. The small central training staff cannot deal
with the many new staff that the pubs were hiring each year. The managers trained their own
staff.
 2. Central Control
Smithy’s brewery hired a financial controller but his schemes were only suitable for large chain
but, not for family owned business like Smithy’s brewery.
3. Inadequate Training
The small central training staff at Smithy’s cannot accommodate all the new recruits. The pubs
across the globe had capacity of 2000 employees but had to hire 3000 employees each year
which only stayed an average of six months. The managers were often left to train their own
staff.

Q.4) Evaluate the Customer Service Report as a means of measuring service quality.

Ans. The customer service report is intended to measure the level of service that is rendered to the
customers and to identify the areas that need improvements. By looking at the barriers in Smithy’s
brewery it seems that the form covers all the points that it would need in order to improve its customer
service. They are trying to focus on three aspects that is ‘welcome’, ‘good facilities’, and ‘goodbye’
which they can easily measure through this form. However, one key aspect of customer service is
waiting time for his/her order to arrive. This aspect to be measured is missing in the form.

Q.4) Apply the ‘gap model’ to the case, describing each gap and explaining why you think it exists.

Ans.

Q.5) How would you suggest the company goes about improving its service?

Ans. 1. Determine the target market appropriately.

2. The product and service must be carefully defined and the values or outcomes it provides well
understood

3. System delivery system is one aspect where he have to make important long term decisions. The
design should be such that it ensures maximum customer satisfaction. These decisions include
technology, equipment, processes and procedures, control of quality cost, workforce levels, resources
and value delivery, job description and roles, workforce and human resource issues and organizational
policies. A well-designed delivery system will be a source of competitive advantage for Smith’s
brewery

4. Positioning is the method by which the organization can differentiate itself from its competitors.
Positioning a product involves creating a positioning concept, which is an expression of the benefits a
customer will receive from the product. It requires a deep understanding of customer needs, the
organization’s capabilities and competencies, competitors’ service offering, and the ability of the
service to meet and provide value needs. The organization can seek unique attributes that match the
service offering to the value needs of the segment targeted. This uniqueness can use cost, service
features, advertising and promotion, distribution channels and delivery channels.

4. Total Quality Management

Total Quality Management is about where individuals, teams and organizations can improve their
performance at all times.

Achieving TQM

1. Processes need to be examined to determine ways to reduce complexity while providing a better
service and producing a better product.

2. Satisfaction of customers is important.

3. Management must provide leadership and foster commitment to quality.