Presentation on theme: "MANAGEMENT 435 SERVICE MANAGEMENT"— Presentation transcript:
1 MANAGEMENT 435 SERVICE MANAGEMENT PowerPoint Set 2
2 Topic 5 Service Strategy Strategy is the first step in the management process.Growth of the service sector in the US economyPg 37: “The purpose and place of a service firm in the market begins with an entrepreneur's idea and an unmet need (leading to) formulating a strategic service vision”Competitive environment of services is different/difficult 36Low entry barriers. Low economies of scale. High demand fluctuations. Little buying power against suppliers. Substitutions threatening. Harder to attain customer loyalty. Exit barriers.
3 Service Strategy Strategy Formulation Process Mgmt 339 Pg 35- Environmental analysis.External environment. Factors. Opportunities and threatsInternal environment. Elements. Strengths and weaknessesVision. Mission and valuesSWOT analysis. Life cycle stage.Grand strategies: Growth (concentration/expansion; diversification; vertical integration/using economies of scope; mergers/acquisitions)Competitive Strategies (also called Business level strategies). 38-Cost leadership 39; Differentiation 40; Focus 41Cost leadership: low cost services; standardized services; no personal service; no flexibility; no conveniences 39Differentiation by quality, availability (convenience; speed), dependability (safety), flexibility/variety (customization; personalization) 40-41Focus 41: Goes with CL and Differentiation
4 Service Strategy Implementing strategy 37 Implementation tools Strategic (long term) decision making areasService design. Recall the 5 elements in service packageService process designTechnologyCapacityQualityFacilities: Location. Layout. FocusWorkforceSuppliers. Supply chainImplementation toolsPolicies; Procedures; Budgets
5 Service Strategy Role of IT in competitive strategy 42 – 50 Information for customers. Information about customers. Supplier transactions. Electronic record keeping/privacy and security issues. Making intangible services more tangible. Influencing customer expectations and perceptions, Reducing uncertainty and perceived riskService strategy is something that evolves over timeFour stages 51Service strategy and service process – Volume/variety considerationsHow firms formulate strategy. New service development processArticles 12, 14 and 15.. Pg. 66-Service blueprinting 71 Flowcharts 72
6 Service Strategy Global service strategy issues Domestic growth and expansion strategies 340Single site v. Multisite. Single service v. MultiserviceFocused Service; Clustered Services; Focused Network; Diversified NetworkFranchising strategy Benefits/IssuesGeneric International Strategies 346Force towards global integrationForce towards Local ResponsivenessGlobal, Multi domestic and Transnational strategies
7 Service StrategyFactors in the international environment crucial for services 347Country – political/legal; economic factorsCustomers – socio-cultural; Cultural transferability 348CompetitionCompany resources and corporate cultureWorkers: norms and values 348Hofstead’s five dimensions 349 – Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long term orientationCommon global service strategies 351Multi-country expansion; Importing customers; Following customers; Service Off shoring; Beating the clockArticles 16 and 19Service Off-shoring issuesArticle 18
8 Topic 6 Service Design Three areas designed together Service, Marketing and HRWhat do we design – Service PackageExplicit services, Implicit services, Facilities, Facilitating Goods, InformationDesign principlesInformation sources. QFD 116Phases of design. Feasibility studiesEnsuring effective delivery of designed service. MethodsGeneric approaches to designing explicit services 75High volume standardized services 75 – Production line approach. Technology predominantCustomer participation in the process 77 Self service and SST.Customer contact level 78 High and low contact operations. Separation 79
9 Service Design Designing implicit services and Facilitating goods Capacity management: managing demand and supply 257 –Yield management 270Waiting time/appointment systems 262; 293-Complaint systems. Call centersService recoveryCultural and linguistic issuesService standardsSupplier issuesDesigning Facilities ; 225 -Locating service facilities. Commercial facilities. Public facilitiesStrategic location considerations 226Servicescapes. 198 Physical surroundingsLayout Balancing flows. Minimizing distancesSelected Articles from
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