Academic journal article
By Ababneh, Musab M.; Austin, Nathan K.
Journal of the International Academy for Case Studies , Vol. 18, No. 8
The primary subject matter of this case involves the application of service quality models i.e. 'RATER' and 'Flower of Service' in the evaluation of strategic decision choices in service industries. M&D Inc. is a multifaceted business support services company considering expansion of its diversification efforts to enter a new market. The case has a difficulty level of three or four, appropriate for introducing junior and senior marketing or business administration students to both models. It is designed for a 50-minute class period and is expected to require two hours of pre-class student preparation.
M&D Inc. is a multifaceted business services support company focusing on the private sector. Its range of services includes mailroom management, e-commerce development, printing, and marketing. Until recently, Ron Lee was the CEO of the company, but he has had to give up the position as a result of ill-health. Prior to his resignation as CEO, Ron Lee was planning to sign a new service contract with another department of the U. S. federal government. M&D Inc. was successful in servicing its first federal government contract which was much smaller and less demanding. The new contract requires M&D Inc. to hire 250 additional employees who will be required to work extra hours every week with significant cost implications. The incoming CEO, Josh King is skeptical of M&D Inc's capability to service such a large contract, so he meets with Ron Lee to discuss the issue. …