The problems at Manzana's Fruitvale Branch were a result of several issues which were compounding into a noticeable profit loss problem. These issues included an increased turnaround time (TAT), large loss of policy renewals, the salary/plus compensation program, and a misguided focus on how to maximize profit. The TAT of Manzana's Fruitvale branch had increased to six days from five days last year and at the same time, their major competitor, Golden Gate, announced a promise of a one day turnaround or a 10% premium discount if delayed. The TAT is a dimension used by independent agents to differentiate carriers on the basis of service. Currently, Manzana is at risk of losing market share to other carriers because it's TAT is not competitive. Knowing this, the agents would prefer to recommend Golden Gate to their customers because they will provide quote responses much quicker. A possible cause of the increased TAT is that the calculation used to determine TAT is flawed. The 95% standard completion time (SCT) takes into consideration the longest times quoted for each stage of ......

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