Friday, November 21, 2014

Ch. 12 - Services and Nonprofit Organization

       On chapter 12, Service is the most important topic. It shows the components that costumers seek for quality services along with other strategies to create better experience overall. Chipotle offers better-than-average pay for the employees in the fast food industry and offers managers lucrative financial incentives for hiring quality people - and firing those who aren't up to snuff. As a result, Chipotle has a reputation for good service that far exceeds its competitors. The fast food chain believes that the its business is only as strong as its staff.
In many ways, the Chipotle burrito is very similar to the iPhone. Founder Steve Ells invented a way to maintain the basic speed and experience of the standard fast-food experience and make the quality of the food a little better. The better food costs a bit more money, but consumers turn out to be happy to pay a premium for a superior product. Chipotle stands out for some unusual process innovations as well. Their “barbecued” meat products—carnitas and barbacoa—are vacuum-packed and cooked sous-vide in Chicago before being shipped out for on-site reheating.



     Each worker is responsible for one or two steps and then hands the package off to the next. The production inputs—rice, beans, meat, salsas—are assembled backstage and delivered at the command of the line workers. It’s not glamorous work or well paid, but it does offer a chance at advancement. The overwhelming majority of salaried managers were promoted from hourly wage jobs, and the best managers are further promoted to become “restaurateurs,” a kind of supermanager who oversees multiple stores. Wages for line cooks, meanwhile, would presumably rise if the unemployment rate fell. Under the circumstances, faster and better food is a great strategy for winning the future.

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