Capital One Case

October 5, 2011

Capital One Financial Corporation

Inbound Logistics:

* Yes, there was a materials control system. It worked really well because they developed their own information based system to track consumer data over the years identifying consumer trends and based on this information Capital One decided what products they should offer to certain customers. It worked efficiently because profits increased and trends were accurate because their ability to determine their risk based on testing was right.

Operations

* Capital One’s equipment is really productive when compared to their competitors because their product is tailored to specific group of customers. They have the lowest charge off rate because of this.

* Capital One’s departments are laid out next to each other which help to lower costs and bring efficiency throughout the company.

* Their approach for targeting customers is better than other companies and can reduce their costs because they have controls that help them to pull out on non-profitable customers which are a type of production control system they use. This is very efficient because they get out before they lose any money.

* They use more automation than most other companies. Their training is more automotive. Their customer service line is also automotive and because they efficiently routed the calls they gained more efficiency overall.

Outbound Logistics

* Products are delivered in a timely fashion to their customers.

* Products are efficiently delivered to customers.

* N/A

Marketing and Sales

* Marketing research is effectively used to identify customer segments and needs because they are constantly running tests, 36,000 tests to be exact. They are constantly marketing new products and spent a total of 750,000,000 as their marketing budget.

* Based off of the response rates the marketing department is innovative in general.

* No alternative distribution channels have been...