Case Background Tom Dunn was appointed the new service manager for Sharpe BMW, a BMW dealership based in Michigan. He faced numerous challenges in his new post because the dealership’s customers were losing confidence in the firm’s ability to satisfy their expectations. These problems were impacting negatively on the firm’s operations. The firm’s Customer Satisfaction Index scores were below the national average. The firm needed to carry out several changes in its internal operations to regain the competitive edge it used to have in the market. Dunn together with the service director, Bob Deshane formulated a proposal, which would enable the firm carry out several improvements in its internal technical functions. This approach was needed to make the firm’s Customer Satisfaction Index improve (Subramanian 497). The bonus payment plan proposed, intended to make the firm’s technicians more motivated in their duties to enable them achieve quality outcomes in their performance. Some technicians felt that the plan was noble but the bonus payments offered were very little to make any impact. Other technicians thought the new plan was good because it encouraged them to improve their own performance at the workplace. Dunn had a difficult task of coming up with strategies that would help Sharpe BMW increase its revenues in the market. He also needed to improve the firm’s customer service ratings by changing customers’ perceptions regarding the quality of service offered by the firm (Subramanian 498). Therefore, this compelled Dunn to come up with customer service strategies to change the way technicians performed their duties at the workplace. The firm’s service department was very important to its long term operations because it determined the level of competitiveness the firm was going to have in the market. Case Analysis Dunn looked at different factors in the firm before deciding the most appropriate course of action the firm needed to follow to improve its services. He reviewed different customer charges clients pay whenever they bring their vehicles for servicing. He noted that the Customer Satisfaction Index was not being given the necessary attention it deserved by different stakeholders in the firm. He felt that the firm’s focus should be on the quality of service it offers its clients, to help it become more competitive in the market. Dunn’s was not satisfied with the CSI scores because he felt that ratings made by customers regarding the quality of service offered by the firm were not good enough. He had noted that the dealership’s CSI score was below the national average, of 91%. This was an indication that Sharpe BMW needed to do more to improve its image in the market (Subramanian 500). He wanted Sharpe BMW to offer customers the best service compared to other BMW dealers operating in the area. Deshane had noted that disparities in the way technicians were paid for performing two different jobs. The labor market for technicians had experienced a lot of changes, which made it difficult for several dealerships to hire and retain highly skilled technicians. Technicians had to go through rigorous certification programs, which made them demand high hourly wages. Dunn noted that the firm needed to