Manzana Insurance

For the exclusive use of S. MAJUMDER

Harvard Business School

5-696-043

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September 6, 1995

Manzana Insurance: Fruitvale Branch (Abridged)

Teaching Note

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Synopsis

The Fruitvale Branch of Manzana Insurance is struggling to compete in California’s rocky

insurance industry. In the case, Fruitvale’s manager, John Lombard, must decide how to respond to a

local competitor’s promise of a one-day turnaround time for new policy requests or face the

likelihood of losing additional agents and subsequent business. The case provides data on Fruitvale’s

historical performance, as well as a detailed description of its operating system and the incentives

and priorities reflected in the company’s policies.

Case Objectives

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This case is an opportunity for operations students to apply many of the tools and concepts

previously developed through manufacturing cases to a service industry. In addition, issues such as

response time and variability are explored. This is a difficult case due to the complexity of Fruitvale’s

operations. The case provides students with several lessons:

The power of analyzing processes in service industries.

•

When and how response time is important.

•

The sources and impact of variability and the distinction between reducing and

accommodating it.

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•

•

The way in which

competitiveness.

operations

are

managed

can

determine

market

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This note was prepared by Professor Ann E. Gray and Research Associate James Leonard for the sole purpose of aiding

classroom instructors in the use of “Manzana Insurance—Fruitvale Branch (Abridged),” HBS No. 692-015. It provides

analysis and questions that are intended to present alternative approaches to deepening students' comprehension of business

issues and energizing classroom discussion.

Copyright © 1995 by the President and Fellows of Harvard College. To order copies or request permission to

reproduce materials,...