For a customer-focused business, levels of customer satisfaction are one of the most important measures. Zurich aims to be in the top 25% of insurance providers for customer satisfaction. High customer satisfaction scores should be reflected in repeat business and growth in sales. Which part of the control process does this relate to:

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BlackTom AI · Accepted Answer

This question asks which part of the control process is illustrated by aiming for top-quartile customer satisfaction and linking it to repeat business and sales growth.
Option a: 'Taking Managerial Action to Correct Performance' would involve intervening after performance is observed and found lacking. Since the statement focuses on setting a target (top 25%) and tying satisfaction to future outcomes, this option describes a subsequent action rather than the planning/measurement setup. It would be more about responses to gaps rather than the standard-setting itself.
Option b: 'Comparing Actual Performance against standards' is about the comparison step, where actual results are checked against predefined standards. While the customer satisfaction target implies standards exist, the emphasis in the question is on having a goal and its expected business impact, not the act of comparison itself.
Option c: 'Measuring Actual Performance' concerns the collection of data on how customers rate satisfaction. Again, the scenario highlights a target and the strategic value of satisfaction rather than the data collection activity itself, so this option is only partially aligned but not the core focus described.
Option d: 'Setting Goals / Objectives / Standards' directly corresponds to establishing performance expectations (top 25% for customer satisfaction) and linking them to business outcomes (repeat business and growth). This reflects the planning and standard-setting aspect of the control process, where performance standards are defined to guide and evaluate performance later on.
In terms of the control framework, the described focus on a target level of satisfaction and its connection to business results best fits the standard-setting component, since it establishes the benchmark against which future performance will be judged and managed.

MCD2040 - T1 - 2025 Week 5 Quiz 1

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