CASE - THE ONE DOLLAR EGG ROLL Last week Linda Lowell ordered Chinese food for her family in an attempt to make her life a little less of a hassle. Rather than getting a nice meal quickly and easily, she instead received accusations, abuse, and more stress than she needed. Linda frequently calls to order food from the Happy Garden Chinese Restaurant to be picked up on her way home from work. The last time she had purchased dinner from this establishment, she arrived home to find that the egg roll she had ordered and paid for was not included in the bag. She immediately called the restaurant to report the problem and was told not to worry. The man taking her call explained that the next time she ordered food, she should tell them the situation and they would give her one in its place. Well, last week, true to her fairly regular pattern, Linda called the restaurant, placed her order, and remembered to mention the missing egg roll, commenting in an understanding voice, "I know how those things can happen, so I'd just appreciate it if you'd put one in free of charge this time." "Please, what is your phone number, ma'am?" "820-5212," she said, surprised by the question "Please hold." Several minutes later the man returned to the phone and said politely, "I'm sorry, but we have no record of your phone number or your missing egg roll," although his tone implied that Linda would not be receiving one free. Sighing, Linda replied, "But I wasn't asked my phone number when I called before and reported it, and the gentleman I spoke with then said it wouldn't be a problem, just to mention it next time I ordered - which I am doing," she added more testily. "Did you get the gentleman's name?" "No, I didn't even think to ask it because he said it would be no problem." "Well, I am sorry but I cannot help you because you did not give us your phone number to report your missing egg roll, and that is how we keep record of such things. We have a very strict policy on this matter as people try to cheat us out of food all the time. It is quite a problem. If you had gotten the man's name, I might have been able to help you." Attempting to remain calm, Linda explained, "I can understand your concern about being cheated, but that isn't my problem. My problem is that I wasn't given an egg roll, which I paid for, in my last order, and" her voice rising, "you owe me an egg roll!" "Please hold," and after a long pause, "No, I am sorry, we cannot give you an egg roll." Linda exploded, "Not only do I no longer want the lousy egg roll you owe me, I don't want the rest of my order either, and not only will I never buy another meal or egg roll from you again, I will tell all of my friends what a terrible experience I've had and that they shouldn't buy your food either!" She was about to slam down the phone when she heard the man say, "Please hold, I will try."

Cases in Hospitality Management, Timothy R. Hinkin, Wiley Press 2 When he returned to the phone for the fourth time, he agreed to give her an egg roll free of charge, but he was quick to scold her, saying "Next time this happens you make sure you give your phone number and get the name of the person you speak to." To these directions Linda responded sharply, "Next time, you make sure your employees know what to do," and then banged the phone into its cradle. Linda went to pick up the food about 10 minutes later. Feeling a little foolish about how angry she had gotten over an egg roll, she chose not to mention the conversation. The man, however, brought it up. He showed her the ticket where it said, "One egg roll free," as if to say she was actually getting something free, not something for which she had paid. Heading out the door, she shook her head in amazement and thought, "all of this for a $1 egg roll." CA S E QU E S T I O N S - TH E ON E DO L L A R EG G RO L L Every company, no matter how much they try, experiences situations where their systems fail and the customer is negatively affected. This does not mean that all is lost. Some companies have systems and policies in place for the possibility of this occurring. Others simply throw out the rule book and do whatever is necessary to satisfy the customer. Still others follow policy no matter the ultimate consequence. You are to take the role of an external business management consultant. In doing so, consider both the position of the restaurant and the customer. PA R T I - SC E N A R I O AN A L Y S E S This case is comprised of two scenarios. The first is when the egg roll was not put in the initial order. The second is the handling of the subsequent order. How well did the restaurant handle the first scenario? More yes or no? Why? Could it have been handled better? How? Be specific. Given how the first scenario did play out, how should the restaurant have handled the second scenario? Should they have done anything differently? If so, what? Be specific. PA R T II - RE S P O N S I B I L I T Y AN A L Y S E S In scenarios like these, perceptions about responsibility often differ. Analyze both the restaurant and the customer, and decide where the responsibility lies. Begin by offering percentages for each. Cannot be 50 / 50. Create a chart depicting your perspective. How much responsibility do you assign to the restaurant and its team? Why this much? Be specific. How much responsibility does the customer hold in this scenario? Why this much? Be specific.

PA R T III - CO N T R O L S , PR O B L E M A N D SO L U T I O N What Feedforward Controls could the restaurant have implemented to avoid this situation? What Concurrent Controls could the restaurant have implemented to fix this situation as it was occurring? Which of the External Controls (Bureaucratic, Clan, Market) is the restaurant using this scenario? How do you know? How do you think the restaurant has prioritized the elements of the Balanced Scorecard? What shifts might you recommend for the restaurant to improve its outcomes in the future? Define the 'problem' that exists in the case as you see it. Develop and detail a solution that might work to satisfy this problem or similar potential issues going forward.