Service Operations Management

Commerce Bank


Commerce Bancorp better known as Commerce Bank is a New Jersey based bank established in 1973 by Vernon Hill, a fast food restaurateur. Hill relied on his extensive fast food business experience to developed Commerce Bank’s business and operational models.¬† He was successful in branches that opened earlier and closed later than competitors and even adopted the “ten-minute rule” (Frei, 2006) where branches opened 10 minutes earlier and closed 10 minutes later than reported hours of operation.

Adhering to this model commerce bank was able to bring in customers and emphasized superior customer service helping the organization to increase its customer base rapidly. While competitors where heavily promoting and forcing customers to use internet banking for daily transactions or pay fines to banking with tellers, Hill saw an opportunity to bring in more customers to his branches stating that “You can’t name one retailer in this country that has pushed people where they don’t want to go and succeeded” (Frei, 2006).

With increase competition and copying of existing strategies by competitors, Commerce Bank has introduced a customer experience concept titled Retailtainment. This will enable each branch to provide a unique and custom entertainment on Fridays to serve clientele.


Get assistance  using service operation models to analyze this case.


Frei, Frances X. Commerce Bank. Harvard Business School. October 3, 2006

Service Operations Management

Topics Tutored Include:

  • The Role of Services in an Economy
  • The Nature of Services
  • Service Strategy
  • New Service Development
  • Technology in Services
  • Service Quality
  • Process Improvement (DEA Supplement)
  • The Service Encounter
  • Supporting Facility and Process Flows
  • Service Facility Location
  • Managing Capacity and Demand
  • Managing Waiting Lines
  • Service Supply Relationships
  • Growth and Globalization of Services
  • Managing Projects
  • Capacity Planning and Queuing Models (Computer Simulation)
  • Forecasting Demand for Services
  • Managing Facilitating Goods
  • Areas of a Standard Normal Distribution
  • Uniformly Distributed Random Numbers [0,1]
  • Values of Lg for the M/M/c Queuing Model
  • Equations for Selected Queuing Models