Case Study Scenario You are running a computer shop and providing the following services: Accessories and parts for computers Assembled computers Computer repairing services Installing software Various Notebook brands Network set-up You have been operating the business successfully for 2 years since it was established and obtained many loyal customers, including business customers. In the last 2 years, you hired 5 sales representatives, and they received base salaries plus incentives based on their sales. Therefore, you established the following policies and procedures about customer service. All customers must be treated equally. In the case where the customers visit our shop without an appointment, the first-come, first-served rule always applies regardless of their status and purchasing capacity. For price dealing, the selling price can be negotiated, but a maximum 7% discount of price tags or listed prices on the website can be given. For referral customers through existing customers, the same discounts must be given to the referral customers. For example, customer A referred a friend, customer B, and if customer A received a 5% discount on the price, the same discount rate must be given to customer B. Otherwise, we will break rapport with our customers. All sales representatives must notify warranty terms and periods of each product or service. You have recently realised that the sales volume has slightly decreased in the last 6 months. Because the quality of the products has not been changed, you have decided to conduct a customer survey to identify and investigate the reasons for the decrease in sales.

Question 4: Based on the feedback result in Question 2, you have decided to hire two call attendants and added one more phone line to your system. Through this initiative, you can expect the improvement of the customer service quality and the expected waiting time will be reduced to approximately 5 minutes. The costs of this improvement are expected to be $100,000, but the additional sales are expected to be $400,000 as more loyal customers will be added. The current profit margin rate (profit/sales) is 32%. a. You are required to use the following table and identify the resources required for the improvement. (Hint: The actual dollar value of financial resources is not required. You are required to list the items of financial resources, such as employment costs (salary, superannuation and other employment entitlements) for hiring additional call attendants.)

a. You are required to use the following table and identify the resources required for the improvement. (Hint: The actual dollar value of financial resources is not required. You are required to list the items of financial resources, such as employment costs (salary, superannuation and other employment entitlements) for hiring additional call attendants.)

Resources Required resources Human resource Financial resource Physical resource b. Explain why this improvement should be implemented