Improving Service Standards at AirCargo (Scenario)

question 52

Multiple Choice

Improving Service Standards at AirCargo (Scenario)
AirCargo is a regional airline that ships freight between communities in the four western provinces and the northern territories. Company president Mick Ward has asked his team of managers to investigate several complaints he has received about the company's services. Mick is particularly concerned about complaints that the company is not achieving its service commitment to customers. AirCargo promises delivery within 24 to 48 hours between larger centres, and 48 to 96 hours between smaller communities. Unfortunately, Mick has learned that the company is not achieving this standard, particularly in some northern communities, where shipments are often delayed by more than a week. Mick has made it clear to his managers that the status quo is not an option; either delivery times must be improved or their service promise must be adjusted. Ultimately, Mick would like to see AirCargo achieve the same standard as industry leader FastFreight, who promise 48-hour delivery service between any two communities anywhere across Canada!
-AirCargo's district manager in Yellowknife advises Mick that some deliveries are delayed because of missed connecting flights.She has examined the situation and believes that the problem can be fixed by adjusting the departure times by one hour.Mick tells her to reschedule the flight times to fix the problem once and for all.This is an example of ________.

• A)revising the standard
• B)taking basic corrective action
• C)taking immediate corrective action
• D)market control

---

Definitions:

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial assets like stocks, bonds, and commodities, allowing for the allocation of capital and risk.

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks or financial institutions.

Money Supply

The entire amount of cash and cash equivalents present in an economy at a designated time, including money in the form of coins, notes, and funds held in checking and savings accounts.

Money Multiplier

A factor that quantifies the amount of additional money that can be created in a bank's lending process for a given amount of reserves.