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Customer Service Essay

1388 words - 6 pages

Organisational culture is the norms, values, beliefs and behaviours that contribute to the unique social and psychological environment of an organisation. The aim of this essay is to evaluate whether or not a strong organisational culture must have customer service at its heart.
One point which suggest a strong organisational culture perhaps must have customer service at its heart because, customer service can help a business differentiate (porter) from competitors in a very intense (porter) climate. As with Southwest, who are known for their culture of ‘goofiness’ and putting their employee and customers first, allows their staff to feel empowered so are able to create a customer ...view middle of the document...

As a business can duplicate the strategy of another business, but they key issue that cannot be copied is the culture, as no two businesses have the same norms, beliefs, values and behaviours (johnson and scholes). Southwest not only have customer service at its heart, but have customer service which runs throughout the company, each staff shares the same DNA of culture which allows Southwest to deliver a unique customer service. Zappos and John Lewis adopt similar approaches to Southwest. Zappos are stakeholder driven where they look to take care of their staff first, so that the way they are treated spills over onto the customers. John Lewis adopt a share scheme where employees are given shares based on customer service levels, which helps to ensure staff are motivated and feel part of the business. Both approaches by Zappos and John Lewis highlight that a strong organisational culture must have customer service at its heart, as they look to put staff first in attempt that the treatment staff receive is reflected by customer service, which has resulted in Zappos being profitable since 2006 and John Lewis achieving a 15.8% increase in profits. Royal Mail will perhaps have to adopt a similar approach to Southwest of being stakeholder driven, as before Royal Mail operated in a monopoly market, so did not need to place emphasis on customer service as they were the only player in a very favourable 5* market. However due to new entrants in the market (porter) such as FedEx and Ups, the market became oligopolistic, as competition intensified and now Royal Mail perhaps must have customer service at its heart, as the mail and parcel market is service orientated, therefore the way to be successful in this market is to offer outstanding customer service which Royal Mail do not currently offer. So there is a possibility of Royal Mail losing their market share, as the bargaining power for customers is high, so if customers are not satisfied with the customer service of Royal Mail, then they will simply move to competitors, which could further damage their position in the market. Royal Mail also face threat of substitutes (porter) with mail declining and email rising, therefore this forces Royal Mail to have customer service at its heart, as no longer can they maintain this laid back approach, but since becoming privatised have to stand on their own two legs.
However, a strong organisational culture does not need to have customer service at its heart, but depending on the industry, an organisation does not need to have customer service at its heart. As with the gas industry where the market is so attractive, can be graded as a 4* industry (porter) as gas is a necessity product so demand for gas will always be high, which allows gas companies not to place emphasis on customer service in order to be successful with their strategy, since their product will always be in demand. Whereas Southwest operate in the 1* airline market, with the bargaining power...

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