Essay about Cup Corporation Case Study

2976 Words Sep 4th, 2010 12 Pages
INTRODUCTION: CASE BACKGROUND & ISSUES

CUP Corporation was one of the largest insurance firms based in Europe. It had a worldwide operation and was recently acquired by another major insurance company. The firm had made a series of acquisitions to broaden the types of insurance offerings and expanding the market needs. It sold a various forms of insurance in the health, life, casualty, property and automotive areas. Customer segments of the firm’s services are divided into two groups of agents and brokers as well as end-customers. Over the last couple of years, the growth of premium income in German industry is somewhat instable. The declining growth rates had affected German insurance industry due to some reinforcing trends:

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Besides, there is also compensation inefficiency with regard to the contracts in which it is reported that the commissions of the agents were almost tied to generating new contracts because customers keep cancelling the existing contracts.

In corporate problems, there is lack in critical mass especially in communication whereby there are numbers of customer complaints about the difficulties of reaching clerks and the level of service they received. The firm also had insufficient sophisticated technology and lack in personnel training so, nothing much could be learnt from customers. As a result, they were having insufficient feedback from customers.

With regard to the problems that were occurred in the firm, the CUP Vorstand (Board of Directors) have been decided to implement a center to stem the increasing defection of customers resulting in dissatisfaction of the firm’s services, namely, Customer Care Center (CCC). Derrick Westmuller, a project manager, is responsible for the creation and development of CCC. He was tasked to display the kind of entrepreneurial behaviour the chairman of CUP was seeking to develop. Mr. Kirk, the chairman, was seeking to change the CUP from a stiff bureaucracy to an entrepreneurial-driven firm.

The idea and goals of CCC were to provide customer to have one and only one telephone number for all their questions and problems;

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