Answer the following Questions

1. Indicate who is right (Mr. Zimbalist or Ms. Slezak) in this situation and justify your decision.

2. Evaluate the firm's ordering system and indicate whether it will lead to high customer satisfaction and increase profits.

3. What is the customer lifetime value of Ms. Slezak to Dr V. Custom Vitamins assuming that she ordered vitamins and supplements for another 10 years?

4. Explain how Dr. V. should handle this situation?

5. Review the company’s organizational structure and indicate what could be done to improve its operations and performance.

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Dr. Victoria van der Walt has to decide how to handle a complaint letter from a customer. When she received the letter, she passed it along to Paul Zimbalist, the firm's customer service manager, to get his recommendation. Now van der Walt has a reply from Zimbalist, and she must decide how to respond to the customer and determine if changes are needed in her company's customer service operations. Dr. van der Walt has a reputation as a health and nutrition guru. Her fame grew after she published two books-both of which were very popular and received a lot of attention in the press. Five years ago, Internet entrepreneur Tania Cox approached her with the idea of creating a website to sell custom vitamins under Dr. Victoria's name. van der Walt and Cox became partners, and the business enjoyed success in its first four years of operation. Cox handles the website technology, inventory, production, and shipping. Dr. van der Walt is the health expert, creates content provided on the website, and is in charge of marketing and customer service. The complaint letter and reply from Zimbalist follow: Dear Dr. van der Walt, I am a longtime fan of your books and like to visit your website for health tips. As a new grandmother, my health is even more important to me. I want to see my grandchildren graduate from high school, go to college, and have kids of their own. You have made me a bit of a guru as well. I work out every day. People always ask me how I stay so fit and healthy. Having read both your books, I tell them they should exercise regularly and take vitamins and supplements for long-term health. I always recommend your DrV.com website, especially the section on your cust vitamins. That is my favorite part of your website. I really e that you take information out me and my medical history-and then recommend custom vitamins and supplements. I also like how you send me packages that each contain a daily dose. But after my recent experiences, my loyalty to you and your company is now in jeopardy. Here is my story. Six months ago, I went to the website to reorder my vitamins and supplements. The home page announced a new and improved health survey and custom health program. So I went through the survey and filled out all the details-it would have been nice if you had saved some of them from my previous survey. At the end of the survey the website offered me a 90-day supply of a custom set of vitamins and supplements selected for my specific needs. The $212 price was about $50 more than my previous 90-day supply, but I trusted your advice so Tulu Dr. Victoria van der Walt has to decide how to handle a complaint letter from a customer. When she received the letter, she passed it along to Paul Zimbalist, the firm's customer service manager, to get his recommendation. Now van der Walt has a reply from Zimbalist, and she must decide how to respond to the customer and determine if changes are needed in her company's customer service operations. Dr. van der Walt has a reputation as a health and nutrition guru. Her fame grew after she published two books-both of which were very popular and received a lot of attention in the press. Five years ago, Internet entrepreneur Tania Cox approached her with the idea of creating a website to sell custom vitamins under Dr. Victoria's name. van der Walt and Cox became partners, and the business enjoyed success in its first four years of operation. Cox handles the website technology, inventory, production, and shipping. Dr. van der Walt is the health expert, creates content provided on the website, and is in charge of marketing and customer service. The complaint letter and reply from Zimbalist follow: Dear Dr. van der Walt, I am a longtime fan of your books and like to visit your website for health tips. As a new grandmother, my health is even more important to me. I want to see my grandchildren graduate from high school, go to college, and have kids of their own. You have made me a bit of a guru as well. I work out every day. People always ask me how I stay so fit and healthy. Having read both your books, I tell them they should exercise regularly and take vitamins and supplements for long-term health. I always recommend your DrV.com website, especially the section on your cust vitamins. That is my favorite part of your website. I really e that you take information out me and my medical history-and then recommend custom vitamins and supplements. I also like how you send me packages that each contain a daily dose. But after my recent experiences, my loyalty to you and your company is now in jeopardy. Here is my story. Six months ago, I went to the website to reorder my vitamins and supplements. The home page announced a new and improved health survey and custom health program. So I went through the survey and filled out all the details-it would have been nice if you had saved some of them from my previous survey. At the end of the survey the website offered me a 90-day supply of a custom set of vitamins and supplements selected for my specific needs. The $212 price was about $50 more than my previous 90-day supply, but I trusted your advice so Tulu