Maximizing Customer Delight Harvard Case Solution & Analysis

Maximizing Customer Delight

Summary

Roger Martin in his book fixing the game argues that always going for creating the shareholder value first among all corporate objectives and goals can be referred to as a self-defeating. The author actually reveals about the actual culprit behind the apologetic state of American capitalism: our profound and long-lasting commitment to the impression that the actual purpose of the company is to maximize the overall shareholder value. This theory has led to a tremendous and massive growth in compensations for company’s executives.Martin presents a fact that how this tight connection has been plotted and lays out its consequences: a completely single minded focus on the expectations of marketplace that will be driving us from disaster to disaster unless we act now.

As the reading continues, we came to that the author uses the example of the National Football League as his principal example, Martin demonstrates that it is really possible to take a much more effective and thoughtful approach than we now actually take to the connection of the expectations and the real markets and to domination in general in the capital markets. Martin presents a number of ideas that how can we act in an optimistic manner to end this destructive cycle.

These suggestions include the overall restructuring of the executive compensation, so that focus can be made on the real markets and not on the expectations market. Reconsidering the role of board members and interpreting the actual meaning of board governance. Moreover, control on the influence of all hedge funds and also on the monopoly pension funds.The author Mr. Martin, who was also the dean of the Rotman School of Management, additionally added that according to agency theory related to management of the mediators of the shareholdersfrequentlyfollow their personal interests at the complete expense of shareholders.Over the years, this issue has often been taken into consideration by loading executive pay with the equity inducements to better align the complete interests of management with shareholders.

As per the valuable words of Martin, agency theory had the unsuccessful effect on the strongbond between the two markets which includes the expectations market and real market. The real market in this case analysis, is the completedomain in which we actually live, where diversified products are produced and respectively consumed in a capitalistic marketplace which is governed by conventional supply and demandbalances out over the time period.At the current span of time this expectations market is considered as the stock market.

Analysis

The topic which has been selected is “Maximizing Customer Delight”. The term maximizing customer’s delight can be referred in terms of delivering maximum satisfaction to the customer to achieve the sustainable competitive advantage. For each and every business across the globe, satisfying the customer is the vital objective which needs to meet at any cost and in any situation. The concept of “Maximizing Customer Delight” is really important specifically in the competitive environment.Author’s justification can be supported in a way thatassociatingoverall compensation to the expectations market iscomparativelya recent practice or phenomenon, which has actually led to company executives gaming with the system and businesses becoming more short-term focused. An executive level employee who is trying his level best to meet both the quarterly and even yearly goals that for sure triggers stock, is less likely to achieve success on a long term basis. On the other hand justification can be further supported by the argument that the executive who is trying his best to maximize customer delight or to deliver the maximum amount of satisfaction is more likely to achieve success for the long term (Rust, 2010).

Martin crafts asimilarity statement that he came across while comparing the National Football League with the book American capitalism.Although these analogies aren’t constantly perfect, Martin successfully discussed the point that the NFL has achievedsuccess in the long term span by maximizing customer delight in a tremendous manner, while the current trend of American capitalism and one of its core engines, named the public corporation have somehow managed for the short term span, attempting to maximize shareholder value to the detriment of the actual customer. There is no doubt that the “maximizing customer delight” element has a real optimistic role to play (Mithas, 2006). Author provides an example of the world prominent companies which includes Apple, J&J and P&G keep their prime focus on delivering value and delight to customers instead of shareholders (Martin, 2011).The analysis can be supported in a way that this is a choice either to maximize the return to shareholders or to maximize some customer measures.

In order to compare the NFL standards in American Capitalism, he influences on a fact that CEO’s of American companies are quite efficiently controlling the market expectations i.e. (Stock Market). It is just similar to quarterbacks and coaches in the NFL to .....................

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