Customer Relationship Management and Support Related Cost

1. Discuss briefly the factors that drove Harrahs customer relationship strategy. 2. Discuss briefly the integration between Harrahs patron database and the selling workbench. 3. Discuss briefly whether Harrahs business and IT strategies were aligned, and what factors contributed to or detracted from achieving alignment. 4. Does Harrahs have a sustain subject competitive advantage? Can polar companies duplicate what Harrahs has through? 5. What atomic number 18 the lessons you learn from the experiences at Harrahs that can benefit opposite companies embarking on a customer relationship management initiative?In Old greeting system , material realted overhead court was change integrity into 3 categories1)Material related 2)Production related 3)Support relatedThe support related salute were allocated establish on sum of direct material , direct labor cost , material overhead and production overhead. Compared to old cost system, in PROKASTA 2 additional cost pools (Order puzzl e outing and special components related cost) to allocated support related costs. This strategy was in line with management belief that support cost was more driven by number of orders of motors and number of special components requisite to process the order instead of machine hours and labor hours required to process the orderWith PROKASTA , the cost of base motor and cost of custom component victimisation old costing system but support related cost pool (pre-PROKASTA) unit cost . Then PROKASTA cost elements were then added. It allowed the house to relate cost and product mix strategy With new costing system , firm was able to determine proper cost of separately order and the boodleability of the order it received. Based on the PROKASTA the manager were able to identify which orders were profitable and which were not . It also allowed to determine price at which motors were transferred from EMW toto the sales Division3.Do you agree with Siemenss decision to set up both sales a nd EMW as profit Centre? What are the cost and benefits?Siemens was a decentralised organisation with 7 major groups and 5 corporate cleavages. The firm is required to identify the profitability of each and all division to evaluate peromonce and make proper divsions. So in this regards it makes brain to set up both sales and EMW as profit centreBenefits 1)Decisions are better and more timely because of the managers proximity to local anesthetic conditions 2)Managers will have more control over resultsCosts 1)Insufficient information acquirable to top management increased costs of obtaining detailed information. 2)Lack of coordination among managers in different parts of the organization.4.Do transfer price system make sense? why do you think so? Yes , I think transfer determine makes sense. Transfer pricing will help Generate separate profit figures for each division and thereby evaluate the performance of each division separately. Transfer prices make managers aware of the va lue that goods and services have for other segments of the firm and will help in determining sales and pricing decisions It will also affect the allocation of an organizations resources