Case 11-3 Cup Corporation

1150 Words5 Pages
Case 11-3 CUP Corporation The CUP Vorstand (Board of Directors) decided to create a Custom Care Center (CCC) to stem the increasing defection of customers resulting in part from dissatisfaction with the firm’s services. The central idea was to provide private customers with one telephone number to be used for all their questions and problems and for all types of insurance offered by CUP. The CCC would be staffed 24 hours a day, 7 days a week to make sure someone was always available for the customer. The CUP personnel would be able to address all inquires and handle customer problems 90 percent of the time on the first call. The remaining 10 percent of the problems would be resolved in one day with a follow-up call. Derrick Westmuller was assigned as the project manager responsible for the creation and development of the CCC. In developing this center he was tasked to display the kind of entrepreneurial behavior the chairman of CUP was seeking to develop. Mr. Kirk, the energetic and dynamic chairman, was seeking to change the CUP insurance company from a stiff bureaucracy to a nimble entrepreneurial-driven firm. The design was to have the center function as a central services profit center supporting the separate insurance business units of CUP. Derrick, a seasoned manager, saw this assignment as a real career opportunity. He began to think about meaningful indicators and measures for success of the center. He was politically savvy and wanted the performance of this center to stand on its true accomplishments. Background: Product Lines Responding to Declining Growth Rates CUP was one of the largest insurance firms based in Europe. It had a world-wide operation and was recently acquired by another major insurance company. CUP had enjoyed remarkable growth of more than 25 percent each year over the past 10 years. The firm had used a series of acquisitions to
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