Agero: Enhancing Capabilities for Customers

Agero: Enhancing Capabilities for Customers Description

This case illustrates the importance of choosing a primary customer as the basis for organization design. Cross Country Group managers adjusted resource allocation, organization design and performance measures over time to transform Cross Country Group from an opportunistic family business into a sophisticated industry leader.Cross Country (renamed Agero in 2011) operated call centers that coordinated with thousands of small, independent towing companies-Cross Country's "service provider network"-to deliver roadside assistance services, such as vehicle towing and tire changes, to motorists covered by automakers' warranties and insurers' policies. The case describes Cross Country's evolution from 1972 to 2012 in three phases. This allows students to, at various stages, grapple with defining Cross Country's business (what business is it, and should it be, in?) and its primary customer (vehicle makers and insurers? motorists? service providers?). The answers to these questions have important implications for organization design. During the first phase, from 1972 to 1998, founder Sidney Wolk built the business through personal relationships with clients. A passionate entrepreneur, his approach to growth-secure customers first, figure out how to make money later-was remarkably successful, if sometimes chaotic. Facing an increasingly commoditized marketplace, in 1998 Wolk hired professional managers who implemented formal performance management systems and invested in sophisticated data analytics. From 1998 to 2007 (phase two), these investments allowed Cross Country to quantify service providers' impact on motorist satisfaction, monitor service providers' performance, and introduce programs to strengthen top-performing service providers' loyalty to Cross Country. Concurrently, the company undertook a two-step organization redesign to focus more resources on service providers (the new primary customer?), improve market-focused innovation and increase client satisfaction. In phase three, from 2008 to 2012, Cross Country entered the high-tech telematics/connected-vehicle business, invested in additional innovations to strengthen its service provider network, and rebranded itself as "Agero." Wolk and his team believed Cross Country had "more driver information than any other company." The case ends with key decisions for the future.

Case Description Agero: Enhancing Capabilities for Customers

Strategic Managment Tools Used in Case Study Analysis of Agero: Enhancing Capabilities for Customers

STEP 1. Problem Identification in Agero: Enhancing Capabilities for Customers case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Agero: Enhancing Capabilities for Customers case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Agero: Enhancing Capabilities for Customers case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Agero: Enhancing Capabilities for Customers case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Agero: Enhancing Capabilities for Customers case study

STEP 6. Recommendations Agero: Enhancing Capabilities for Customers case study

STEP 7. Basis of Recommendations for Agero: Enhancing Capabilities for Customers case study

Case Analysis of Agero: Enhancing Capabilities for Customers

Agero: Enhancing Capabilities for Customers is a Harvard Business (HBR) Case Study on Organizational Development , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Agero: Enhancing Capabilities for Customers is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Agero: Enhancing Capabilities for Customers case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Agero: Enhancing Capabilities for Customers will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Agero: Enhancing Capabilities for Customers case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Organizational Development, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Agero: Enhancing Capabilities for Customers, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Agero: Enhancing Capabilities for Customers case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Organizational Development Solutions

In the Texas Business School, Agero: Enhancing Capabilities for Customers case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Agero: Enhancing Capabilities for Customers

Step 1 – Problem Identification of Agero: Enhancing Capabilities for Customers - Harvard Business School Case Study

The first step to solve HBR Agero: Enhancing Capabilities for Customers case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Cross Agero is facing right now. Even though the problem statement is essentially – “Organizational Development” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Cross Agero, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Agero: Enhancing Capabilities for Customers.

The external environment analysis of Agero: Enhancing Capabilities for Customers will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Agero: Enhancing Capabilities for Customers case study. PESTEL analysis of " Agero: Enhancing Capabilities for Customers" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Agero: Enhancing Capabilities for Customers macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Agero: Enhancing Capabilities for Customers

To do comprehensive PESTEL analysis of case study – Agero: Enhancing Capabilities for Customers , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Agero: Enhancing Capabilities for Customers

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Agero: Enhancing Capabilities for Customers

Government policies have significant impact on the business environment of any country. The firm in “ Agero: Enhancing Capabilities for Customers ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Cross Agero is operating, firms are required to store customer data within the premises of the country. Cross Agero needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Agero: Enhancing Capabilities for Customers has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Cross Agero in case study Agero: Enhancing Capabilities for Customers" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Cross Agero in case study “ Agero: Enhancing Capabilities for Customers ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Cross Agero in case study “ Agero: Enhancing Capabilities for Customers ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Agero: Enhancing Capabilities for Customers

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Agero: Enhancing Capabilities for Customers ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Cross Agero can compete against other competitors.

Government Scheme & Subsidies Impact on Agero: Enhancing Capabilities for Customers

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Agero: Enhancing Capabilities for Customers case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Agero: Enhancing Capabilities for Customers

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Cross Agero needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Agero: Enhancing Capabilities for Customers

Social Factors that Impact Agero: Enhancing Capabilities for Customers

Technological Factors that Impact Agero: Enhancing Capabilities for Customers

Environmental Factors that Impact Agero: Enhancing Capabilities for Customers

Legal Factors that Impact Agero: Enhancing Capabilities for Customers

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Agero: Enhancing Capabilities for Customers case study. PESTEL analysis of " Agero: Enhancing Capabilities for Customers" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Agero: Enhancing Capabilities for Customers case study solution