Ops571 Week 1

Eric James Martin

University of Phoenix

April 23, 2011

Week 3 Individual Assignment

State Farm

State Farm has formed a bond with many service companies to help customers in every aspect when filing a claim and having a vehicle fixed. One of the most important steps of the claim repair process is the ability to rent a vehicle while the repairs are taking place. Many clients do not have an extra vehicle waiting for them when it is needed, so the ability to rent a vehicle using your insurance policy is an added feature. The two most used rental companies are Enterprise Rent-A-Car and Hertz. The major issue that State Farm is receiving from the client is that many of the cars are not up to standard. Cars are not being maintained like they would be if they were owned by an individual. Most reports notify State Farm that cars are breaking down, numerous steering problems, and engines running hot to the point where the vehicle has to be shut down. Interesting The responses that the rental facilities are giving the clients are not acceptable. State Farm has come to a fork in the road where a decision needs to be made to determine what decision should be made. Should State Farm recommend rental facilities to its clients or let them choose a rental facility on their own?

Research

An accurate decision must be made to secure the market share that State Farm has in the insurance industry. Most of the research data was taken from StateFarm.com. There was also research gained from the State Farm Intranet in the office. One last research tool was used to determine the rate at which rental cars most often have problems while being rented. The site that was used to gain this information was consumeraffairs.com. The various websites gave statistics over the previous five years. The time frame of five years is a good amount of time to focus on to make an educated decision on which company is more reliable. Once all of the research was gathered, interpreting the data was...