The Service Concept

Topics: Supply chain management, Supply chain, Management Pages: 9 (2086 words) Published: June 21, 2013
1. Introduction

The service concept is critical and central in managing service operations. It has become increasing important in defining what the corporations are selling and the customer buying or using. It can be used to design and improve the services. “The service concept is something that is more emotional than a business model, deeper than a brand, more complex than a good idea and customers and creates a business advantage.” (Johnston.R and Clark.G, 2008) The selected service organisation is Morrison, which the UK’s fourth largest food retailer by sales with an annual turnover in excess of £15bn.Morrisons has 425 stores across Britain, ranging in size from 10,000 to 40,000 square feet. (Morrison’s annual report, 2010) The purpose of this report is to describe the Morrison’s practical applications with the service concept. This report will first demonstrate the five elements of the service concept and how the company achieve these five elements. Then it will assess the company’s implementation of the service concept. At last, the report will give some recommendations on how the company’s service concept might be improved.

2. Description of the service concept

The service concept is something very significant to companies such as Morrison. According to the Johnston and Clark (2008), there are five elements consisted in the service concept which are given below.

2.1 The Organising Idea

The organising idea is very significant to the service concept. The organising idea is the essence of the service which is bought or used by the customer. Morrison has a good organising idea which organised as “Food Specialist For Everyone”. (Morrison, 2012)This means they really understand the food and provide food with great value not only just for special days but also for every day.

2.2 The Service Experience

The service experience concentrates on the customer’s direct experience in the process of perceiving the service. It is based on the expectations of the customers. (More information can be seen in Appendix 1 and 2). Morrison has the following service experience:

* Large car parks
* Long queue at tills during peak time
* Polite staff
* Range of food and drink products
* Products with discount price
* Free bags
* Kids eat free offer in Cafe
* Best service on disabled or children facilities
* No online shopping

2.3 The Service Outcome

The service outcome is the result of the customer service which includes benefits, emotions, value and intentions and judgements. Morrison has the following service outcome:

* Calm shopping trip
* Car parking is extra
* No time wasted
* Fun emotion

2.4 The Service Operation

The service operation is related to the resources and processes provided by the company to the customer. The resources and processes that Morrison provides are:

* Clear product signs
* Self-help checkout machine
* Different ways to pay
* Wide aisles to improve flow

2.5 The Service Value

The service outcome includes the service value. The price is a service value. It could be its monetary value, the financial price or its comparative value. “Value-of-service pricing is a method of setting utility prices.”(Energy Dictionary, 2012) Morrison has the following service value:

* Good value for money
* Food reasonably priced
* Many promotional products
* Car parking

3. Explanation of the role of operations

There are many Morrison’s operational contributions to the functioning of the service concept. This section will explain how Morrison achieves the five elements in detail.

The organising idea of Morrison is “Food Specialist For Everyone”. Morrison really understands food. They know where it comes from and pack it and make it in their factories. They employ craft skills in every store. They focus on the provenance, quality and freshness of food served by experts. They provide food with great value...

References: Azhashemi. M (2012) Managing Service Quality, from CORP3171 Service Operations Management. De Montfort University, Kimberlin Library. Available from: Blackboard. [Accessed 06/03/12]
Johnston, R and Clark, C (2008), Service Operations Management, Financial Times Prentice Hall, pp. 40
Morrisons (2010) Morrisons annual reports and accounts 2010 Morrisons
Appendix 2
This diagram illustrates the structure of the service experience management (Kana, 2011)
Appendix 3
This diagram illustrates the success of the total quality management (Damon B., 2008)
This diagram demonstrates the Hierarchy of Supply Chain Decisions (Teigen R., 1997)
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