Enterprise prides itself on going well beyond the expected when it comes to customer service.


Enterprise prides itself on going well beyond the expected when it comes to customer service. One of its founding principles is that satisfied customers drive business growth. The tag line “We’ll pick you up” means just what it says, for instance, even though bringing rental cars to customers can present special scheduling challenges for employees. Everyone at Enterprise knows, however, that because the firm dedicates itself to the local market, customers are not likely to be the anonymous business travellers passing through airports who make up competitors’ customer bases. They are people in the neighborhood who will be coming back to rent another car if they are satisfied or go elsewhere if they are not.

High customer-satisfaction ratings are a prerequisite for employee promotions, and if ratings for a branch fail below the corporate average, no one at that branch can be promoted until the score improves. However, customer satisfaction is not the only performance criterion at Enterprise. Additionally, nearly everyone in the firm is paid compensation that is tied to profits. Thus, employees are challenged to make a profit while pleasing customers. Enterprise also looks after its business customers. To insurance companies like GEICO that link their claims systems to Enterprise’s automated car-rental system, the firm provides access to real-time reservation information. That, in turn, allows insurers to offer their customers a valuable service and makes them look good, keeping them happy with Enterprise so they keep coming back.


1. Like all service firms, Enterprise must adapt to the characteristics of intangibility, inseparability, heterogeneity, and perishability.

a. What elements of Enterprise’s marketing strategy reflect a sensitivity to these characteristics)

b. What else could Enterprise do to adapt to these characteristics of services?

2. Should Enterprise change its marketing efforts if it decides to pursue other auto-rental market segments, such as business travelers at airports, to a greater extent than it has?



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Strategic Management Project

Assignment Content Review the Strategic Management Project Background and your strategic management research journal entries from Weeks 1–4. Create a 10-slide presentation for Caterpillar Inc. leadership in which you summarize your key findings, propose….

Case Problem Investment Strategy

Case Problem Investment Strategy J. D. Williams, Inc. is an investment advisory firm that manages more than $120 million in funds for its numerous clients. The company uses an asset allocation model that recommends the portion of each client’s portfolio to be invested in a growth stock fund, an income fund and a money market fund. To maintain diversity in each client’s portfolio, the firm places limits on the percentage of each portfolio that may be invested in each of the three funds. General guidelines indicate that the amount invested in the growth fund must be between 20% to 40% of the total portfolio value. Similar percentages for the other two funds stipulate that between 20% to 50% of the total portfolio must be in the income fund and at least 30% of the total portfolio value must be in the money market fund.   In addition, the company attempts to assess the risk tolerance of each client and adjust the portfolio to meet the needs of the individual investor. For example, Williams just contracted with a new client who has $800,000 to invest. Based on an evaluation of the client’s risk tolerance, Williams assigned a maximum risk index of 0.05 for the client. The firm’s risk indicators show the risk of the growth fund at 0.10, the income fund at 0.07 and the money market fund at 0.01. An overall portfolio risk index is computed as a weighted average of the risk rating for the three funds where the weights are the fraction of the client’s portfolio invested in each of the funds. Additionally, William’s is currently forecasting annual yields of 18% for the growth fund, 12.5% for the income fund and 7.5% fir the money market fund. Based on the information provided, how should the new client be advised to allocate $800,000 among the growth, income and money market funds? Develop a linear programming model that will provide the maximum yield for the portfolio. Use your model to develop a managerial report.   Managerial Report: a.Recommend how much of the $800,000 should be invested in each of the three funds. What is the annual yield you anticipate for the investment recommendation change? b.Assume that the client’s risk index could be increased to 0.055. How much would the yield increase and how would the investment recommendation change? c.Refer again to the original situation where the client’s risk index was assessed to be 0.05. How would your investment recommendation change if the annual yield for the growth fund were revised downward to 16% or even to 14%? d.Assume that the client expressed some concern about having too much money in the growth fund. How would the original recommendation change if the amount invested in the growth fund is not allowed to exceed the amount invested in the income fund? e.The asset allocation model you developed may be useful in modifying the portfolios for all the firm’s clients whenever the anticipated yields for the three funds are periodically revised. What is your recommendation as to whether use of this model is possible?  

Case Analysis

You can view the article (the case), “The Man Who Got Honeywell’s Groove Backt”, by linking to the course EReserves  Follow the Case Analysis Outline given in your syllabus. This is….