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By the end of this session, students should be able to: explain what a business model is; summarize the case firm’s business strategy using the elements of business model…
By the end of this session, students should be able to: explain what a business model is; summarize the case firm’s business strategy using the elements of business model canvas proposed by Alexander Osterwalder and practice how to apply the business model canvas to analyze the business model of a firm; understand how a firm can seize an opportunity for innovation; and discuss how the case firm navigated through problems that came up as it grew.
Creative Design was a start-up company in Taiwan. To fulfill a course requirement while she was still in school, the founder had formed a team and entered an entrepreneurship competition. They won the second runner up award in that competition and impressed some firms who enquired if they would be interested in doing corporate identity system (CIS) design. They discovered that without establishing a corporate structure their prospective clients would be unable to pay an invoice. As a consequence, the founder and one of the team members established Creative Design Ltd. This case discusses the challenge Creative Design faced at the end of 2012. Wonderland farmers’ association (WFA) wanted to market locally grown jasmine but did not know how to go about it. They reached out to the founder and her company for assistance. The case of WFA was uncharted territory. Creative Design already had extensive experience in CIS design, but it did not have any experience in handling agriculture products. In this case, they had to deal with the full supply chain from production to exhibition. The risk for this project was high but Creative Design accepted the case and became the first design firm offering a “total solution.” Currently, Creative Design works with all kinds of cases, from simple CIS designs to more complicated total solutions of various scales. The founder now has to contemplate if the design house should develop more total solution cases. Doing so would require recruiting more staff and the dilemma of balancing revenue and costs.
Complexity academic level
The case study is designed for the undergraduate and graduate students of the College of Management; the case can be adopted for the courses of management, innovation and entrepreneurship, etc.
Teaching Notes are available for educators only.
CSS: 3 Entrepreneurship.
This paper aims to develop a theoretical model to understand co-creation/co-destruction of value through customer engagement in online channels. It also investigates the…
This paper aims to develop a theoretical model to understand co-creation/co-destruction of value through customer engagement in online channels. It also investigates the contributing factors.
The qualitative approach uses the critical incidents technique to answer the research questions. The authors identify 350 critical incidents in which customers expressed online customer engagement-induced value co-creation or co-destruction experiences. The factors and resulting propositions are identified through data analysis. Data coding and analysis are facilitated by using MAXQDA 12.
Co-creation through positively valenced engagement behaviors may occur when customers are delighted, feel valued, experience reciprocity, receive organizational incentives, are solicited for feedback, can count on service recovery efforts and interact with helpful, empathetic, polite and responsive employees. Co-destruction through negatively valenced engagement behaviors emerges from rude employee behaviors, indifference, confrontation with company representatives, technological failure, the lack of complaint outlets and customers’ desire for revenge.
Selecting and training employees to be helpful, polite, responsive and empathetic toward online visitors can trigger co-creation. Communication between firms and customers should boost customer approval and delight. Organizations can offer incentives, reliable service delivery and a recovery design to stimulate visitor participation. Soliciting feedback requires sound technological support and direct communication links with visitors.
This study presents the conditions and framework contributing to the duality of customer engagement-induced co-creation and co-destruction values in online channels from the customer, organizational, employee, service design and technological perspectives. It also addresses how value is co-created or co-destructed through examples.
A British Airways flight crew arrives after a long flight from London to Chicago to find their hotel rooms are not ready for check-in. The front-desk agents tell them that…
A British Airways flight crew arrives after a long flight from London to Chicago to find their hotel rooms are not ready for check-in. The front-desk agents tell them that the hotel is overbooked. The flight crew is asked to wait in the hotel lobby for more than one and a half hours while housekeepers prepare their rooms. Upon returning to London, the pilot complains to British Airways. What should the hotel have done differently to avoid complaints?
When a senior field journalist attempts to cover super typhoon Haiyan in the Philippines, body guards were assigned to protect end-up obstructing. Disagreements between…
When a senior field journalist attempts to cover super typhoon Haiyan in the Philippines, body guards were assigned to protect end-up obstructing. Disagreements between the news team and security team followed. The teams had different opinions regarding how situations should be handled. The clients were not satisfied with the services provided by the security, while the security felt the clients failed to understand safety considerations. What should the security company have done to ensure safety while supporting the news team’s objectives?
An existing customer goes to his bank to apply for a debit card. The bank required that the customer provide additional supportive documents and complete a pending…
An existing customer goes to his bank to apply for a debit card. The bank required that the customer provide additional supportive documents and complete a pending procedure. However, after two visits, the employee failed to inform the customer of the additional procedure that should be completed. With multiple visits to the bank to complete the application, the customer filed a complaint. What should the bank do?
Two hotel guests repeatedly took food from various breakfast buffets every morning before starting the daily tour. Not only is this considered a violation of etiquette, it…
Two hotel guests repeatedly took food from various breakfast buffets every morning before starting the daily tour. Not only is this considered a violation of etiquette, it also violated the hotel restaurant policy. Following complaints from other tour group members, and a polite but firm request from a hotel restaurant manager to address the unacceptable behavior, the tour guide was faced with a dilemma. As the offenders were, after all, his customers, the guide risked offending his clients by asking them to respect hotel policy. If he did nothing, the tour guide risked the appearance of ignoring the other clients who adhered to proper etiquette and felt embarrassed by association. He also risked damage to his reputation as a tour guide, as well as damage to the professional relationship between his employer and the hotel if he did not act.
This study identified differences of work values between two types of hospitality workforce members: hospitality industry practitioners and hospitality…
This study identified differences of work values between two types of hospitality workforce members: hospitality industry practitioners and hospitality student/practitioners. A total of 398 nonstudent practitioners were randomly selected from various hospitality organizations to participate in this study. There were 828 student practitioners included in the data collected from a hospitality management college. Fifteen values were identified along with their hierarchical order. Three-dimensional work value structure shared by hospitality-major student/practitioners and industry practitioners were revealed. They are: General Work Values, Management Work Values, and Hospitality Work Values. The differences of the three dimensions among the four categories of student practitioners and industry practitioners were identified. Furthermore, work values were found to differ by gender. Implications are drawn for industry managers as well as educators.
A customer orders two bowls of soup at a Neighborhood chain restaurant and after paying is informed that the store is out of one of the soups. The customer refuses a…
A customer orders two bowls of soup at a Neighborhood chain restaurant and after paying is informed that the store is out of one of the soups. The customer refuses a different variety of soup and insists she needs the original soup choice. The soup will be available again in one hour. What should the Neighborhood chain restaurant do?