An Assessment of Internal Customer Service as a Competitive Advantage in Organizations: A Case of Jubilee Insurance Limited

A Research Project Report Submitted To the Chandaria School of Business in Partial Fulfillment of the Requirement of the Degree of Masters of Business Administration (MBA)The objective of the study was to determine the effects of internal customer satisfaction on service delivery in Jubilee Insurance Company. Specifically, the study sought to establish the effects of internal customer service as a competitive advantage, the strategic challenges affecting internal customer service and the strategies for ensuring a high level of Internal Customer Service as a source of Competitive Advantage. The study adopted a descriptive research design to ensure that the research problem is well structured and understood. The descriptive research design emphasized on the strength of relationship between internal customer satisfaction and service quality delivery. The study employed the use of questionnaires to obtain relevant information from respondents. The study adopted the census sampling technique to collect data from the relevant respondents. The study focused on 57 respondents who were staff support of Jubilee Insurance Company. The study conducted a pilot study to test the validity and viability of the data collection instrument (questionnaire), from which data was analyzed using descriptive and inferential statistics. Data was presented using tables. The findings based on the first research question revealed that the most significant effect of internal customer service is enhanced customer care/service, followed by increased team spirit among workers, and improved company image. The findings based on the second research question revealed that employee acceptance is the highest strategic challenges affecting internal customer service in Jubilee Insurance Company, followed by Organizational Structure, Lack of effective communication of strategic plan, Alignment of Responsibility, as well as Inadequate information systems used to monitor strategy implementation. The findings based on the third research question revealed that the most significant strategy for ensuring a high level of Internal customer service is to enhance coordination and sharing of responsibilities, followed by competitor analysis surveys, technology driven services, enhance effective communication and relevant Systems in place. The study concluded that through properly marched organization structure, good leadership and governance, culture-based improvement and variation-based improvement there is enhanced competitive advantage in organization The study recommends the organizations to effectively implement customer service quality strategies to increase their sales volume enhance customer satisfaction and increase customer loyalty and that companies to employ innovative managers who can instill innovative culture in an organization. In addition the study recommends companies to keenly observe challenges that affect the smooth implementation of customer service quality strategies. From the study, managers are recommended to align all tasks and responsibilities to relevant departments so as to achieve customer service quality