Ray Kroc did not start McDonald's (NYSE: MCD). But he was the one that had the vision and energy to turn it into a global powerhouse.

Back in 1977, Kroc wrote a book about his story, called Grinding It Out: The Making of McDonald's. The title is appropriate. You see, he did not get involved in McDonald's until he was 52 (in 1954).

What I like about Kroc's book is that he has some simple advice for building a successful business. And, it's always a good idea to look at the fundamentals. So, here are some of the takeaways:

Continue reading Entrepreneur's Journal: Fundamental business lessons from McDonald's Ray Kroc

Entrepreneur's Journal: Fundamental business lessons from McDonald's Ray Kroc originally appeared on BloggingStocks on Sun, 18 Oct 2009 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Cablevision is getting its business right, one customer at a time

Cablevision is getting its business right, one customer at a time originally appeared on BloggingStocks on Tue, 22 Sep 2009 17:40:00 EST. Please see our terms for use of feeds.

United Airlines (NASDAQ: UAUA), US Airways (NYSE: LCC) and American Airlines (NYSE: AMR), according to an influential analyst, have run out of options. Jamie Baker of JPMorgan said in a July 20, 2009 report that these companies couldn't do anything to prevent a cash crisis. They only savior available to them would have to be an outside investor. To call the position grim would be optimistic. Unfortunately, it couldn't have come at a worse time.

As Baker was walking the bear into the airline industry, United was starting to celebrate its change in direction. The carrier has improved its on-time rate, according to a USA Today report, and its operations are coming around. Despite the fact that the airline industry has been brutalized by the global recession, the airline has made some progress. Through August, the company's share price doubled, and its ascent has continued in September. So, the company is locked in an ongoing struggle to manage its identity, cope with its past and shape how the world sees it today.

The operational "makeover" has resulted in a reduction of its fleet from 601 jets in 2000 to 386 as of the summer of 2009. In terms of passenger traffic, it's in the #4 spot in the United States - trailing Delta (NYSE: DAL), Southwest (NYSE: LUV) and American. With Q2 revenues off 25.2% year-over-year, however, drastic measures are still necessary.

Continue reading United's battle over its identity

United's battle over its identity originally appeared on BloggingStocks on Thu, 17 Sep 2009 17:00:00 EST. Please see our terms for use of feeds.

Sprint Nextel Corp. (NYSE: S) has taken a huge amount of heat in recent years for having some of the most inefficient customer service in any industry. In fact, there are many who have concluded that Sprint Nextel has had trouble retaining customers because of its customer service levels -- not so much about its prices and product selections.

When CEO Dan Hesse took the reigns over a year ago, he quickly initiated a series of marketing campaigns and redid pricing on much of Sprint Nextel's calling plan lineup. Ever seen those black and white television commercials? Oddly, they seem to be effective. Almost anything in black and white garners attention from the television viewer. Back to customer service -- Hesse also made a few statements stating that customer service would be back on track. It seems to be just that.

Pali Capital, a customer service measurement firm, ranked the third-largest wireless carrier in the U.S. at the top of its list for customer care. Sprint Nextel was able to answer 89% of calls to its customer service line in an average of 30 seconds, according to the measurement survey. By comparison, the largest wireless carrier in the U.S. -- AT&T, Inc. (NYSE: T) -- answered its customer service lines within 30 seconds only 43% of the time.

Though this is not exactly a measurement of customer service quality, it seems the long waits to speak to a Sprint Nextel customer service rep are gone. Perhaps there are not too many customers needing help these days? From looking at all the customers Sprint Nextel has lost recently, there may be an inkling of truth there. Still, it's the third-largest wireless company in the U.S. with more than 50 million customers.

Sprint Nextel's customer service improves, according to survey originally appeared on BloggingStocks on Sat, 27 Dec 2008 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Is dealing with Apple always so difficult?

Is dealing with Apple always so difficult? originally appeared on BloggingStocks on Mon, 01 Dec 2008 12:42:00 EST. Please see our terms for use of feeds.

Are retailers trying to boost sales by being nice to customers? originally appeared on BloggingStocks on Mon, 10 Nov 2008 14:41:00 EST. Please see our terms for use of feeds.

In 1997, Greg Gianforte started a new-fangled software company called Right Now (NASDAQ: RNOW) to help companies improve customer relationships. It proved to be great timing, since the internet was just beginning its surge.

Over the years, I've had a chance to talk to Greg, who always has great insights for entrepreneurs. Now he has a new book: Eight to Great: Eight Steps to Delivering an Exceptional Customer Experience.

It's a quick read, easy to understand and has lots of case studies focusing on companies like eHarmony, TomTom, Nikon, and so on.

The theme of the book is straightforward: "providing an excellent customer experience -- the sum total of a customer's interactions with an organization -- can be the single best way to set your company apart from the competitors."

OK, so what are some of the things you can do to help improve customer service?

Continue reading Entrepreneur's Journal: Secrets of customer service

Entrepreneur's Journal: Secrets of customer service originally appeared on BloggingStocks on Sun, 28 Sep 2008 18:00:00 EST. Please see our terms for use of feeds.

When Best Buy Inc. (NYSE: BBY), Circuit City Stores Inc. (NYSE: CC) and Wal-Mart Stores Inc. (NYSE: WMT) are all stacked up together, which one comes out on top? Well, it depends on how you phrase the question: Are we talking solely prices here, or customer service? The pricing angle can be debated all day long. When it comes to service though, my experience is very similar to the conclusion that this article states: Best Buy is king.

Target Corp. (NYSE: TGT), although a much cleaner and brighter location in which to shop, seems to have a weak schedule in the consumer electronics department. Most weeks, I roam into many retail chain locations just to walk around and observe. In many cases, Target seems well-stocked when it comes to checkout personnel, but not if you have questions about a flat-panel television. At Circuit City, its tarnished reputation is well-deserved: It's hard to just find anyone to help you.

And Wal-Mart? The world's largest retailer has made strides to really improve the consumer electronics sections in its stores. The customer service, however, is a completely separate story. If I step into a Best Buy, there's a 99% chance that I will be greeted by a security guard manning the front door, and will be asked at least four times within five minutes if I need help.

While Wal-Mart may have slightly better prices on many consumer electronics items, is that all that matters? Of course not. I give Wal-Mart props for making large strides in product presentation, though. Chris Denove of J.D. Power and Associates says that "Across many industries, we've seen that the retailers that grow customer-service ratings the fastest have greater sales growth." If Wal-Mart wants to try and really compete with Best Buy's winning combination of price and service, it best listen to that advice. Target -- it's also time to step it up on your end. What are you waiting for?

Customer service the key inside consumer electronics stores originally appeared on BloggingStocks on Sun, 27 Jul 2008 09:10:00 EST. Please see our terms for use of feeds.

Sprint (NYSE:S) often shows up in customer services surveys as one of the least respected companies in America. That has caused a number of its cellular subscribers to drop service and take their business elsewhere.

To try to win back customers, Sprint's CEO is even going on TV. According to The New York Times, "In the commercials, Mr. Hesse asks customers to e-mail him with complaints and to give Sprint another chance." Daniel R. Hesse is Sprint's new top man.

Hitting the airwaves with a new message hardly seems worth the time, or money.

Sprint may be able to get some customers back with its new Samsung Instinct phone, which has gotten good reviews. But, there is no evidence in polls about how subscribers view the company to indicate that the firm has become a symbol of an American cellular provider with happy customers.

Fix the problem. Stay off the tube.

Douglas A. McIntyre is an editor at 247wallst.com.

Sprint (S) wants its customers back originally appeared on BloggingStocks on Tue, 08 Jul 2008 11:33:00 EST. Please see our terms for use of feeds.

Starbucks is taking consumer opinion to a whole new level originally appeared on BloggingStocks on Wed, 16 Apr 2008 12:49:00 EST. Please see our terms for use of feeds.

Since 2001, I've been a customer of Adobe's (NASDAQ: ADBE) great product, Dreamweaver. Basically, it allows for the development of sophisticated websites. The product has gone through a variety of iterations, with the latest being Creative Suite 3.

So on Friday, I purchased the upgrade for $199.00 and downloaded it. Things went well until the software asked for my serial number from one of the older products I purchased.

Unfortunately, I got rejected.

Yes, I had to call customer service (which is usually pretty dicey). All in all, the customer reps were pretty good, though, one of them said that my prior purchases were not eligible. I tried to get an explanation, but I really couldn't understand it. Keep in mind that I have paid a total of $1,579.84 on Dreamweaver products over the years (which does not include the $199 recent purchase).

Continue reading Adobe -- adventures in dealing with customer service

Adobe -- adventures in dealing with customer service originally appeared on BloggingStocks on Sat, 19 Jan 2008 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Synchronoss Tech automates the laborious

Synchronoss Tech automates the laborious originally appeared on BloggingStocks on Fri, 04 Jan 2008 19:56:00 EST. Please see our terms for use of feeds.

A piece in the New York Times reports on the main competitive advantage of small stores: They're small. According to the article, "Small retailers around the country are using a host of marketing tactics, from the usual extra emphasis on customer service to putting out free cider and cookies. But their most important step may be that they are trying to make the most of their inherent advantages over larger competitors."

A common criticism of low-cost behemoths like Wal-Mart (NYSE: WMT) is that they knock out mom-and-pop competitors. This complaint certainly isn't without merit, but small stores often can survive Wal-Mart if they can find a way to make themselves more attractive than big boxes -- in spite of their higher prices.

The stores mentioned in the Times piece are doing just that creativity and entrepreneurship. And everyone wins: Wal-Mart forces these stores to provide better customer service. In spite of all the bad press about Wal-Mart's bad service, the reality is that it actually improves customer service at its competitors, who have to find a way to compete other than price.

So if you're one of the anti-Wal Mart brigade who does your holiday shopping at small local businesses, think of it this way: The fine service you enjoy may actually be part of the Wal-Mart effect.

How small stores can beat Wal-Mart: Stay small and friendly originally appeared on BloggingStocks on Sun, 16 Dec 2007 17:40:00 EST. Please see our terms for use of feeds.

Apple Inc.'s (NASDAQ: AAPL) much-anticipated release of its new operating system, Leopard, is being met with some lukewarm reviews. Said Tom's Guide, a review site of both software and hardware and typically an Apple fan, "[this] Apple operating system, Mac OSX Leopard, was released before it was ready."

Cited as one of the most troublesome bugs is a glitch with the Finder program, the Apple equivalent to Windows Explorer. Again, Tom's Guide put it succinctly: "In Leopard, when Finder moves a file from one drive to another, it deletes the file from the originating hard drive, without first checking to see if the file arrived safely on the destination hard drive. If anything goes wrong during the file transfer, such as a momentary power glitch on the destination hard drive, the file would then be destroyed on both hard drives."

Apple has already issued an update on its website to fix some of the problems. There are a lot of bug fixes there: everything from email to iCal to Finder.

Continue reading Apple's (AAPL) Leopard OS released too early?

Apple's (AAPL) Leopard OS released too early? originally appeared on BloggingStocks on Sun, 25 Nov 2007 15:10:00 EST. Please see our terms for use of feeds.

Walt Disney Co. (NYSE: DIS) has a unit called the Disney Institute. It trains workers and management from other companies and government agencies. Recent customers include Miami International Airport, General Motors Corp. (NYSE: GM), IBM (NYSE: IBM), and the IRS.

The corporate culture at Disney of emphasizing customer service and attention to detail "are transferable across industries, across cultures, and across different sizes and shapes of organizations," the head of the Institute told The New York Times. A typical trainer at the organization has averaged 10 years with Disney.

But, operating the training company may be be in Disney's best interests.

Disney's revenue in the June quarter was over $9 billion. The parks and resorts segment brought in $2.9 billion. Most of the company's "trainers" for consumer services undoubtedly come from this unit. Does it really benefit the company to move managers from such an important business so that they can train people at other companies.

The revenue from Disney Institute is not material enough to show up in the Disney 10-Q.

Why is Disney training management at other companies? There probably is not a good answer for that. And, it is a bad idea. It takes resources away from a critically important part of the company.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Disney (DIS) in the customer service training business originally appeared on BloggingStocks on Sun, 23 Sep 2007 16:40:00 EST. Please see our terms for use of feeds.

Apple Inc. (NASDAQ: AAPL) Chief Executive Steve Jobs has a funny of showing he's sorry. has limits on his generosity.

The $100 merchandise credit that Jobs offered last week to consumers outraged by the $200 iPhone price cut came with a catch: people can't use it on the popular iTunes service, according to Bloomberg News. (Update: After that initial report, Apple said that the information on its Web site was in error. Users won't be able to add the credit directly to their iTunes account, Bloomberg says.)

My guess is that Jobs wants people to use the credit for new Mac computers, iPods or to buy their friends a new, cheaper iPhone.

Now, despite what people wrote in response to my last Apple post, I actually am a fan of the company. The iPod is one of the greatest technological gizmos ever invented even though my particular one drives me bonkers from time to time. I'm even trying to convince my wife to buy a Mac.

Though Apple does have a right to place limits on its offer but prohibiting customers from using its most popular service is baffling. it's needs to make sure that a similar mixup doesn't happen again

Apple (AAPL) $100 iPhone credit comes with a catch (Update) originally appeared on BloggingStocks on Fri, 14 Sep 2007 14:45:00 EST. Please see our terms for use of feeds.

Dell's (DELL) customer service ratings fall again originally appeared on BloggingStocks on Wed, 15 Aug 2007 12:15:00 EST. Please see our terms for use of feeds.

Back in early July, there was a brouhaha over Sprint's (NYSE: S) decision to terminate roughly 1,000 subscribers because of persistent calls to customer service (the average was about 40 to 50 calls per month).

But isn't the customer king?

Maybe so, but there are some customers that can wreak havoc on your business. For example, there always seems to be some people who pay late (or not at all). At the same time, they keep demanding more services and changes. Such customers can eat up lots of resources and drag down the performance of your business.

True, with some customers it might be smart to put up with their bad behavior, even if you must take a loss on their business. This can be the case when you want to land a marquee name. In this situation, a troublesome customer can be worth the price if they provide a boost to your credibility and a reference for future business.

But this is the exception. Basically, to run a profitable business, it's critical to be rigorous on the return on each customer. Simply put, there are some customers that are not worth it.

Continue reading Fire your customers? Sometimes their business just isn't worth it

Fire your customers? Sometimes their business just isn't worth it originally appeared on BloggingStocks on Sat, 11 Aug 2007 09:30:00 EST. Please see our terms for use of feeds.

Many years ago, one of my professors gave a design lecture which he titled I love hardware stores. In it, he presented various building elements that were off-the-shelf items that could be used to create (what he thought was) a particularly appealing aesthetic. He offered this theme as contemporary yet rustic, detailed yet simple, and very accessible to all.

After writing three stories on The Home Depot(NYSE: HD) recently, I feel that unlike many posts, a real dialog has been created between writer and reader, and people have brought up many issues that would be worthwhile for Home Depot to take note of -- not just offer up lip service, but really take to heart.

Continue reading I love hardware stores, but Home Depot ... hmm

I love hardware stores, but Home Depot ... hmm originally appeared on BloggingStocks on Tue, 03 Jul 2007 13:40:00 EST. Please see our terms for use of feeds.

My BloggingStocks colleague Douglas McIntyre posted about the activation problems for the iPhone. There are also reports spreading across websites, blogs, and cable television.

The good news -- at least for Apple (NASDAQ: AAPL) and AT&T (NYSE: T) -- is that it looks like there is overwhelming demand. Yet, with all the hype, shouldn't they have been prepared for a mega surge?

A friend of mine, who is a gadget early adopter, bought an iPhone more than 20 hours ago and still can't get an activation.

According to my friend: "I'm still waiting even though my old phone has shut down. I'm an AT&T customer and
the number is porting. An AT&T rep I spoke to said there were some significant delays due to some systems being down since last night."

Well, as for Monday, it should be interesting to hear the spin from Apple and AT&T.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

20 hours and counting -- and still no iPhone activation originally appeared on BloggingStocks on Sun, 01 Jul 2007 11:40:00 EST. Please see our terms for use of feeds.