Managerial Economics & Quantitative Methods
To what extent is there an asymmetric information problem between your company and your customers? Use an example of a product you sell that consumers will not be able to detect the quality of before they buy it. What are some of the methods you may use to resolve this problem? Do warranties always signal quality?

The company I am working for is Coca-Cola Hellenic Business Service Organization that main aim is to deliver accounting and financial services to all entities in the Coca-Cola
Hellenic Organization that are stand as our Customers. We are responsible for 29 countries for
Accounts Payable, General Accounting, Collection and Disputes and HR. Now, from this year we are taking over the Purchasing Administration from all countries. There are many examples of the asymmetric information problems between BSO and Hellenic companies.
Mainly they are in the field of quality and timing of the work done. Unfortunately, our
Customers were and are completely unaware of the quality of our products and services we offer before we completely take over the responsibilities for them. To resolve this issue we do the following actions before we take over particular department and responsibility:


Make all accounting and financial processes standardized that means that we design operational procedures and flows in advance. After the Customers agree with the processes. They are designed for all countries and are followed from everyone.



We have implemented readiness criteria that needs to be reached before we take responsibility for each new Customer or department;



We have periods of at least 9-12 months in order to reach these readiness criteria so we could ensure the quality of the work and also the needed timing;



We hold meetings every year “Stickability meetings”1 in order to ensure