Question

            Question 1 (word limit: 600 words)

           

You are part of the management team in a medium-size Internet server company. Driven by rapid changes in the business environment in recent years, the management team has decided that the company’s management accounting practices have to be focused on the customers. The company is just two years old and is growing dramatically, doubling its customer base every six months.

Required:

(a)        Identify three typical customer's needs and service expectations of most Internet-server companies.

(b)        Assuming that this dramatic growth continues, name two (2) specific actions the company can take to retain its goal of "focus on the customer". (You need to explain why each has the goal of customer focus).

Can someone explain in plain simple language? Thanks

* Please note this is Management Accounting Question. The company is not internet company but a company which uses internet.

Answer 1

(a)   Identify three typical customer's needs and service expectations of most Internet-server companies.

Internet server company would mean any company which provides services for accessing, participating or using internet. The three typical customer expecations are as under

1. Techinical or customer care service team availability and trained team- This is most important as these days customers usually resort to customer care team for any kind of help. The customers usually select services depending on the company having best after sales service team

2. Innovation- The company must focus on being innovative. As there should be focus on continous improvement in the quality of service

2.Data Protection- This is the most important aspect the company should keep secrecy of the database of customers ranging from personal information like name, address to their surfing details etc.

(b)   Assuming that this dramatic growth continues, name two (2) specific actions the company can take to retain its goal of "focus on the customer". (You need to explain why each has the goal of customer focus)

1.Benchmark competitors customer focus

The company must continously strive to meet the benchmark being set. The benchmark set must be higher than or eual to the benchmark set by competitors which are leading in the industry.

2.Performance goal to be customer oriented- In order to make the company customer oriented in long term the company must make its performance goals for employees customer oriented so that they strive to achieve them.