Understanding Services & Service Strategy
ν Identify and critique the five distinctive characteristics of a service operation ν Describe a service using the five dimensions of the service package. ν Use the service process matrix to classify a service. ν Describe how a service competes using the three generic service strategies. ν Discuss the competitive role of information in services.
Nature of Services (Lecture 1):
1. What are the characteristics of services that will be most appropriate for Internet delivery?
2. When does the collection of information from service membership become an invasion of privacy?
3. What factors are important for a manager to consider when attempting to enhance a service organization's image?
CASE STUDY: VILLAGE VOLVO (Textbook Pg 33 – 34)
ν File: Village Volvo Case.pdf
1. Describe Village Volvo's service package.
2. How are the distinctive characteristics of a service firm illustrated by Village Volvo?
3.Characterize Village Volvo in regard to the nature of the service act, the relationship with customers, customization and judgment, the nature of demand and supply, and the method of service delivery.
4. How could Village Volvo manage its back office (i.e., repair operations) like a factory?
5. How can Village Volvo differentiate itself from Volvo dealers?
Service Strategy (Lecture 2):
1. For each of the three generic strategies (i.e., cost leadership, differentiation, and focus), which of the four competitive uses of information is most powerful?
2.Service firms compete in a difficult economic environment; discuss how service firms can use the three generic strategies to help them gain competitive advantage.. Multiple choice:
1. Place the McDonald's fast food chain within the following matrix:
E x t e n t t o w h i c h S e r v i c e I s C u s t o m i z e d
L o w H i g h
L i t t l e
E x t e n t t o w h i c h C o n t a c t
P e r s o n n e l E x e r c i s e
J u d g m e n t
M u c h
2. A personal training facility that is located in the exclusive Beverly Hills area with only one other competitor could adopt a service strategy that emphasizes .
a. overall cost leadership b. differentiation
3. Of the nine dimensions of service competition, three are regarded as most likely to become service losers. Which of the following is not one of those three vulnerable dimensions?
a. Speed b. Price
c. Dependability d. Personalization
4. Which of the following is not identified as a strategy common to many successful service providers?
a. Close coordination between the marketing and operations b. The exploitation of information to generate new business c. A project-oriented organizational structure d. Redirection of the strategic service vision inward to focus on employees
5. Which of the following is usually not a good idea with respect to an overall cost leadership strategy?
a. Offer as many different services as possible to spread overhead costs. b. Concentrate on routine/standardized services. c. Replace labor with capital where possible.
d. Perform some service activities off-line at a centralized site. 6. The nature of the service act depends on to whom or to what the service is directed and the degree of "tangibility" of the service provided. An example of a tangible service directed to the possessions of a customer would be:
a. a stay in a hotel.
b. an investment advising session. c. a fortune telling session. d. a...