CASE STUDY 2 (5 MARKS)

Farmington, Connecticut based Otis Elevator is the world's largest manufacturer, installer and servicer of elevators, oscalators, moving walk-ways, and other vertical and horizontal passenger transportation systems. Otis products are offered in more than 200 countries worldwide, and the company employs more than 63000 people. Among its many installations are the Eiffel Tower, Sydney Opera House, Vatican, CN Tower (Toronto), and Hong Kong Convention Centre.

For years, the company had an effective performance management system that was excessively time consuming and inspired little confidence among employees and managers. In revamping its performance management, Otis moved toward a system that provided performance feedback based on critical strategic competencies related to the company's new focus on project teams. For this realignment into project teams to be successful, managers were required to demonstrate specific competencies in both team leadership and project management, as well as remain accountable for the financial and operating results of projects.

Realising that critical feedback in these areas could not come exclusively from immediate supervisors, Otis had a custom-designed 360 degree feedback system developed that provided managers with feedback from those most directly affected by their performance, their subordinates, peers and customers. The system provides ratings on several critical core competencies and is administered entirely online via the company internet. The online system is easy to use, employs encryption technology to secure all data, and allows a performance review to be completed in 20 minutes. The system allows Otis to provide performance feedback in tandem with the organisation strategic objectives, is far more efficient than the previous paper driven system and perhaps, most importantly has restored employee faith in the company's performance feedback system.

Questions:

(a) How can 360 degree feedback mechanism help Otis revamp its performance management system?

(b) What critical inputs need to be considered while evaluating by customers, peers and bosses?

Answer the following questions:

1. What are the features of marketing. Outline the merits and demerits of sales promotion? (5 Marks)
2. Explain Customer value in light of the concept of superior customer value. Is customer value related to a market driven strategy, If yes, how? And its relation to company's success. (5 Marks)
3. What is meant by the phrase "the customer is always right" and "customer is a king". Do you support this? If yes, why? And if not , why not? (5 Marks)