OK Service (A): Growth and Development

Published 01 Jan 1995
Reference 4518
Topic Operations
Region Europe
Summary

OK Service is in the sector of emerging household repair services and has developed through agencies and franchise, 142 units and 110MFF turnover in 1994. The company offers household repairs on a subscription basis sold by repairmen on emergency visits. The case analyses the company's approach to managing relationships, motivation and control of agencies and franchises with the objective of maximising profit of customer loyalty.

Teaching objectives

One of the main objectives of the case is to analyse the potential gains of customer retention as measured by subscriptions. Another objective is to analyse how to manage, motivate and improve efficiency of middle managers responsible for an agency or a franchise in a highly decentralised structure.