A customer survey concluded that timely departure of your buses is the number two priority of passengers, ahead of comfort, price, food, and other factors. Only safety was rated higher than timeliness. You believe that your bus company and your competitors are offering about the same level of service, safety, and price. Time seems to be the only competitive edge. As the general manager, you have just announced to your drivers, dispatchers, employees, and customers that all buses will depart on time. After one month of implementing this on-time policy, you notice that if the buses are not full, many drivers refuse to leave on-time in spite of the warnings they get from the dispatchers. The sales department is also lukewarm to your on-time program. Revenues have declined as a result of buses leaving on time but half full. Your drivers are protesting since the on-time policy is affecting their pockets. Their commissions are based primarily on the load factors of each trip. They find it difficult to break the old habit of filling-up the bus with passengers before departing. Finally, your passengers are also protesting and feel betrayed. They arrive early in the bus terminal only to see the drivers casually refusing to leave on time as scheduled and as promised by management. What will you do?
A customer survey concluded that timely departure of your buses is the number two priority of passengers, ahead of comfort, price, food, and other factors. Only safety was rated higher than timeliness. You believe that your bus company and your competitors are offering about the same level of service, safety, and price. Time seems to be the only competitive edge. As the general manager, you have just announced to your drivers, dispatchers, employees, and customers that all buses will depart on time. After one month of implementing this on-time policy, you notice that if the buses are not full, many drivers refuse to leave on-time in spite of the warnings they get from the dispatchers. The sales department is also lukewarm to your on-time program. Revenues have declined as a result of buses leaving on time but half full. Your drivers are protesting since the on-time policy is affecting their pockets. Their commissions are based primarily on the load factors of each trip. They find it difficult to break the old habit of filling-up the bus with passengers before departing. Finally, your passengers are also protesting and feel betrayed. They arrive early in the bus terminal only to see the drivers casually refusing to leave on time as scheduled and as promised by management. What will you do?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:A customer survey concluded that timely departure of your buses is the number two priority of
passengers, ahead of comfort, price, food, and other factors. Only safety was rated higher than
timeliness. You believe that your bus company and your competitors are offering about the
same level of service, safety, and price. Time seems to be the only competitive edge. As the
general manager, you have just announced to your drivers, dispatchers, employees, and
customers that all buses will depart on time.
After one month of implementing this on-time policy, you notice that if the buses are not full,
many drivers refuse to leave on-time in spite of the warnings they get from the dispatchers. The
sales department is also lukewarm to your on-time program. Revenues have declined as a
result of buses leaving on time but half full. Your drivers are protesting since the on-time policy
is affecting their pockets. Their commissions are based primarily on the load factors of each trip.
They find it difficult to break the old habit of filling-up the bus with passengers before departing.
Finally, your passengers are also protesting and feel betrayed. They arrive early in the bus
terminal only to see the drivers casually refusing to leave on time as scheduled and as promised
by management. What will you do?
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