SERVICE MANAGEMENT ASSIGNMENT

Name: Fiza Shaikh

Gr no. 11910513
Roll no. 33
Div. PR-A-1

SERVICE IN THE ECONOMY

Discussion Questions:
1. What is a service?
2. Is it possible for an economy to be based entirely on services?
3. What is the value of self-service in an economy?
4. What are the roles of front-line employees, customers, operations, and marketing in the service
innovation process?

1) A service is an immaterial good that is provided to clients in order to meet their needs and
desires. It is a task carried out by one person on behalf of another in order to provide value
and improve the client experience. Several businesses, including healthcare, hospitality,
banking, transportation, and many more, offer services.
2) a country's whole economy might be centred on services. A service economy or tertiary sector
economy is the term used to describe this type of economy. The service sector is the main
driver of economic growth in a service economy. The United States, the United Kingdom, and
Japan are examples of nations having service-based economy.
3) Self-service offers great economic benefit since it gives customers more control over their
experiences and lowers the time and expense involved in providing services. Self-service can
be used in many different sectors, including retail, healthcare, and hospitality, and it can give
clients more ease and flexibility while utilising goods and services.
4) Customers, front-line staff, operations, and marketing all have crucial roles to play in the
service innovation process. The front-line staff represents the company and is in charge of
providing consumers with high-quality services. Consumers offer feedback and opinions on
how services might be improved and what services are needed. The efficient and effective
delivery of the service is the responsibility of operations. In order to advertise the service and
generate demand among potential customers, marketing is essential. These elements all
interact to promote service innovation and guarantee the optimum customer experience.

Xpresso Lube case study

Assignment Questions:
 
1.   Describe Xpresso Lube's service package.
2.   How are the distinctive characteristics of a service firm illustrated by Xpresso Lube?
3.  Characterize Xpresso Lube in regard to the nature of the service act, the relationship with
customers, customization and judgement, the nature of the demand and supply, and the method of
service delivery?
4.     What elements of Xpresso Lube's location contribute to its success?
5.     Given the example of Xpresso Lube, what other services could be combined to "add value" for
the customer?

Assignment Answers:

1) The extensive list of services offered by Xpresso Lube includes routine maintenance, fluid checks,
tyre pressure checks, and oil changes. The business is dedicated to offering prompt, effective service
as well as a welcoming waiting space with complimentary refreshments. At the core of its service
offering are quality and client pleasure.

2) A company that provides services, Xpresso Lube, demonstrates various distinctive qualities. Its
service is ethereal, ephemeral, contingent, and tied to the supplier. The level of service quality varies
from one provider to another and from one client encounter to another depending on the knowledge
and disposition of the service staff.

3) The success of Xpresso Lube is partly a result of its advantageous location. It is conveniently
located for clients because it is located in a busy commercial area with heavy traffic. Other auto repair
shops nearby also have a clustering effect that draws more clients to the region. It also makes it a
destination site because of its proximity to other companies like coffee cafes and retail outlets.

4) The success of Xpresso Lube may be attributed to its focus on client happiness and service, swift
and effective service, convenient location, application of technology and automation in the service
process, and marketing initiatives. Its branding and marketing initiatives foster client loyalty and a
strong brand image.

5) a) A loyalty programme that offers discounts or complimentary services in exchange for repeated
visits could be implemented by Xpresso Lube to provide value for clients.
b) In addition, it might include extra convenience services like tyre rotations, wiper blade
replacements, and air filter changes.
c) Customers could learn about the value of routine maintenance by watching videos or reading blog
postings.
d) To improve customer satisfaction and cut down on wait times, an online scheduling system might
be put in place.

MODULE 2: CREATING BREAKTHROUGH SERVICES

MARKET POSITIONING; Case (America West Airlines), Questions and answers
Assignment Questions:
1. What generic competitive strategy has America West chosen to enter the air passenger market?
What are the dangers of this strategy?
2. Identify the service winners, qualifiers, and service losers in America West's market.
3. How has America West addressed the eight elements in its strategic service concept?
4. Marketing analysts use market position maps to display visually the customers' perceptions of a
firm relative to its competitors with regards to two attributes. Prepare a market position map for
America West comparing it to American, Delta, and Southwest, using the differentiation attributes of
"cabin service" and "pre-flight service." You will need to define the end points of each scale (e.g., for
cabin service, one extreme is 'no amenities') to anchor the relative positioning of the airlines along the
attribute. The actual position is subjective because no precise measurements are available.

Assignment Answers:

1) America To enter the airline passenger industry, West Airlines has opted for a general
competitive strategy of cost leadership. By cutting operating costs, the company hoped to
provide air travel at a lower cost than rivals. The risks of this strategy include a price war that
turns the market into a "commodity," a constrained ability to compete on route quantity and
quality, and hefty investments in technology and operational effectiveness needed to stay
competitive.

2) Low prices, dependable and prompt flights, and amiable staff are service winners for America
West's market. Safety, convenient scheduling, and comfortable seating are all requirements
for service. Limited flight alternatives, a lack of facilities, and subpar customer service are all
service losers.

3) America West focused on affordability, dependability, safety, convenience, speed, and warm
customer service in order to address the eight components of its strategic service model. With
facilities like on-board refreshments, cosy seating, and user-friendly online booking
platforms, the company also aspired to offer a satisfying and distinctive travel experience.

4) Using the distinction factors of "cabin service" and "preflight service," a market position map
for America West that compares it to American, Delta, and Southwest may be created. Both
"no amenities" and "luxury amenities" might be the scale's ends for cabin service, while "slow
check-in" and "rapid check-in" could be the scale's ends for preflight service. The relative
positioning of the airlines along these criteria is based on the opinions of the passengers.
Southwest would likely rank highly on affordability and dependability, but American and
Delta would rank higher on cabin service and preflight service, according to general customer
impression. To set itself apart from rivals, America West might market itself as a compromise
between affordable prices and high-quality amenities.

LAUNCHING AN INNOVATIVE SERVICE; Case: Southwest Airlines (A)

Assignment Questions:
1. How well were Braniff and TI satisfying customer needs in early 1971? In January 1973?
2. Describe Southwest's "Strategic Service Vision" both internal and external. Has Southwest
created a breakthrough service?
 3. How does the elements of Southwest's "service package" support their competitive strategy?
4. What action should Southwest take in response to Braniff's announcement of a 60-day, half-
price sale on the Dallas-Houston (Hobby) service?

Assignment Answers:
1) In the beginning of 1971, neither Braniff nor TI were successful in meeting client needs.
Braniff targeted the high-end market with expensive tickets and opulent extras, but TI had a
small route network and ageing aircraft. By January 1973, both airlines had made steps to
raise customer satisfaction, but many passengers continued to find Braniff's high rates and
constrained route network to be a deterrent, while TI found it difficult to compete with larger
carriers.

2) Low-cost, dependable, and easy air travel for consumers with amiable and effective customer
service was the "Strategic Service Vision" of Southwest Airlines. The goal of Southwest was
to develop a good and distinctive workplace culture for its employees, which would result in
superior customer service. This vision was both internal and external. By developing the low-
cost airline concept and concentrating on a specialised market of short-haul flights with point-
to-point service and quick turnarounds, the company has developed a ground-breaking
service.

3) The components of Southwest's "service package," including its affordable prices, frequent
departures, open seats, quick turnaround times, and warm customer service, all contribute to
the company's competitive strategy of providing affordable, practical, and dependable air
travel. Southwest is able to maintain low expenses and provide affordable tickets by
concentrating on short-haul flights with point-to-point service and quick turnarounds. The
frequent flights and open seating policy make travelling more convenient for passengers, and
the welcoming staff contributes to a memorable trip.

4) In response to Braniff's announcement of a 60-day, half-price sale on the Dallas-Houston

(Hobby) service, Southwest should take action to protect its market share. One option would
be to match Braniff's prices for the Dallas-Houston route, while also highlighting the benefits
of flying with Southwest, such as the convenience of frequent flights and open seating.
Southwest could also consider offering additional discounts or promotions on other routes to
attract customers away from Braniff. Finally, Southwest could leverage its customer loyalty
and brand reputation to reassure customers that they will always receive high-quality service
and reliability.

Session #3 : NEW SERVICE DEVELOPMENT; Case (Alaska Airlines)

Assignment Questions:
1. What benefits do Alaska customers gain from technology driven self-service innovations? Is
it possible for self-service to be viewed by customers as improved service? How could
technology that facilitates self-service increase customer loyalty?
 2. What is your assessment of Alaska Air's use of technology? Consider the impact of the new
technology initiatives on both employees and customers.
3. Critique the new technology development process used by Alaska Airlines.
4. Will Alaska Airline's leadership in technological innovation provide a sustainable competitive
advantage?

Assignment Answers:
1) Alaska Airlines customers gain from technological advancements in self-service in a variety
of ways. Customers can check in for their flights easily and swiftly using self-service check-in
kiosks and mobile boarding cards, which provide convenience and flexibility. In addition to
reducing wait times, the airline's self-service bag drop technology enhances the whole travel
experience. Although not all customers may regard self-service as an improvement in
customer care, those who value speed and efficiency will embrace these advancements. Self-
service technology can improve customer loyalty by enhancing the travel experience and
decreasing the likelihood of consumer unhappiness and complaints.

2) Alaska Air's use of technology has been successful in enhancing both operational
effectiveness and customer experience. Customers can book tickets and manage bookings
through the airline's smartphone app, for instance, which also offers real-time updates on
flight status and gate information. In order to increase worker productivity and job happiness,
Alaska Airlines has also implemented a number of technology-driven initiatives, such as the
usage of electronic flight baggage and mobile devices for flight attendants. Overall, Alaska
Airlines has benefited from its use of technology in terms of maintaining its competitiveness
and enhancing customer happiness.

3) Alaska Airlines collaborates with a variety of stakeholders and departments, including IT,
marketing, and operations, while developing new technologies. A needs analysis is the first
step in the process, which is then followed by development, testing, and deployment.
Although this method is thorough, it could take a lot of time and resources. Also, making sure
that staff members are properly taught on new tools and integrating new technologies with old
systems may present difficulties.

4) Alaska Airlines' leadership in technological innovation can provide a sustainable competitive

advantage by enhancing the customer experience, improving operational efficiency, and
reducing costs. By continuing to invest in technology-driven initiatives and staying ahead of
competitors, Alaska Airlines can differentiate itself in the market and attract and retain
customers who value a modern and efficient travel experience. However, as technology
continues to evolve and other airlines catch up, Alaska Airlines will need to continue
innovating and adapting to maintain its competitive edge.

BUILDING CUSTOMER LOYALTY;

Case (Ritz Carlton: Using Information Systems to Better Serve the Customer)
Assignment Questions:
1. What objectives was Ritz Carlton pursuing in developing the customer information systems
described in the case? How effective have these systems been in meeting their objectives?
2. What might Ritz Carlton do to further exploit the information gathered by these systems to
reduce customer defections?
3. How can the hotel staff anticipate customer needs using these information systems?
4. Was the recovery offered Steve Krimer excessive? Should all customers be treated alike?

Assignment Answers:
1) While creating the consumer information systems discussed in the case, Ritz Carlton sought
to achieve a number of goals, including enhancing customer service, raising customer
happiness, and boosting customer loyalty. These systems have been successful in achieving
their goals by giving hotel employees useful information regarding guests' preferences, needs,
and previous experiences. Ritz Carlton is able to customise the client experience and surpass
consumer expectations by utilising this information, which promotes customer happiness and
loyalty.

2) By leveraging the data to find patterns and trends in customer behaviour that may signal
unhappiness or the possibility for defection, Ritz Carlton might further utilise the information
obtained by these technologies to lower client defections. Ritz Carlton can stop consumers
from leaving and keep them by proactively addressing these problems and offering specific
solutions to solve client complaints.

3) By utilising the data to predict preferences, requirements, and behaviours of specific

customers, the hotel staff can anticipate client needs using these information systems. For
instance, if a guest frequently demands room service at a particular time of day, hotel
personnel may be able to predict this need and prepare the order before the guest even asks.
Ritz Carlton can deliver a seamless and customised experience that exceeds customers'
expectations by anticipating their needs.

4) The reimbursement provided to Steve Krimer may have been excessive, but Ritz Carlton
took this choice strategically to show their dedication to client retention and satisfaction.
While it might not be possible to provide all clients with the same level of rehabilitation, Ritz
Carlton makes an effort to serve every customer with the same care and focus on their needs.
Based on a number of variables, including the seriousness of the problem, the customer's prior
interactions with Ritz Carlton, and the possible effect on consumer loyalty, Steve Krimer was
offered a recovery.

Session #4 : THE SERVICE DELIVERY SYSTEM; Case (100 Yen Sushi

House)
Assignment Questions:
1. Prepare a service blueprint for the 100 Yen Sushi House.
 2. What features of the 100 Yen Sushi House service delivery system differentiate it from the
competition and what competitive advantages do they offer?
3. How has the 100 Yen Sushi House incorporated the just-in-time system into its operations?
4. Suggest other services that could adopt the 100 Yen Sushi House's service delivery concepts.

Assignment Answers:
1) Service Blueprint for 100 Yen Sushi House:

a) Front Stage:
I.Customers enter the restaurant and take a seat at the sushi bar or at a table.
II.Customers pick up a plate of sushi from the conveyor belt or order from the waiter.
III.Waiter takes the order and places it in the order queue.
IV. Chefs prepare the sushi and place it on the conveyor belt or give it to the waiter to deliver to the
customer.
V. Customers pay at the cashier on their way out.

b) Back Stage:
I. Chefs prepare sushi according to customer orders and place them in the order queue.
II. Waiters take orders from customers and place them in the order queue.
III. Cashiers collect payments and manage the cash flow.
IV. Managers monitor the flow of orders and ensure customer satisfaction.

c) Support Processes:

I. Sourcing of high-quality fish and ingredients.

II. Maintenance and cleaning of equipment.
III. Training of staff.
IV. Quality control of food and service.

2) The 100 Yen Sushi House sets itself apart from the competitors with its affordable prices, self-
service model, and emphasis on sushi of the highest calibre. By drawing in price-conscious
clients, lowering labour expenses through self-service, and setting the restaurant apart from
rivals in terms of food quality and taste, these characteristics give businesses a competitive edge.

3) By creating tiny quantities of sushi that are regularly refilled throughout the day, The 100 Yen
Sushi House incorporates the just-in-time method into its operations. This preserves the sushi's
freshness and lessens waste due to overproduction. The just-in-time method is further supported
by the conveyor belt technology, which eliminates the need for surplus inventory by
continuously delivering sushi to customers.

4) Fast food shops, cafes, and other quick-service eateries could all leverage the service delivery
ideas used by the 100 Yen Sushi House. These services could increase productivity and cut costs
 while maintaining high levels of quality and customer satisfaction by concentrating on low-cost
pricing, self-service technologies, and just-in-time production.

ACHIEVING BREAKTHROUGH SERVICE; Case (Taco Bell Corp)

Assignment Questions:
1. Critically analyze the steps taken by Taco Bell that have allowed it to achieve its current
position in the world of fast food?
2. Given the speed with which the changes in the later part of the case (1989-1991) took place,
why didn’t Taco Bell all but fall apart?
3. Can Taco Bell’s major competitors copy the Taco Bell strategy?
4. Where does Taco Bell go from here?

Assignment Answers:
1) Taco Bell has attained its current position in the fast food sector by making a number of
strategic decisions, such as providing menu options that are convenient and affordable for a
variety of customers. The business also put a strong emphasis on aggressive expansion, opening
additional outlets in advantageous locations and aiming for global markets. To attract younger
customers, Taco Bell also launched creative menu items like the Doritos Locos Tacos. The
business has also made investments in marketing and advertising initiatives to promote its goods
and raise brand awareness.

2) Due to a number of circumstances, Taco Bell was able to withstand the adjustments in the later
stages of the lawsuit. First of all, the business possessed a capable management team that could
quickly adjust to shifting market circumstances. Second, Taco Bell had a committed consumer
base that helped the business through tough times. Finally, the business was able to successfully
implement adjustments to its operations and menu, which contributed to a turnaround in its
financial situation.
3) Taco Bell's main rivals might be able to mimic the business's strategy, but it would be difficult.
In order to increase brand awareness, Taco Bell has made significant investments in marketing
and advertising. Furthermore, it would be challenging for rivals to imitate the menu items'
distinctive flavours and unique design. Last but not least, Taco Bell has built a sizable network
of outlets in prime locations that would be challenging for rivals to replicate.

4) Taco Bell might continue to broaden its reach domestically and abroad by entering new markets.
The business might also keep introducing cutting-edge menu items to draw in younger clients.
Taco Bell might also look into fresh development opportunities like home delivery and mobile
ordering. Third, the business might concentrate on improving the shopping experience for
customers by using new technology or providing more individualised service.

MODULE 3: STRUCTURING THE SERVICE ENTERPRISE

Session #5: DELIVERING SERVICE ON THE WEB; Case (Monster.com)
Assignment Questions (25 points each):

1. What features of Monster.com make it an ideal service business to deliver on the

Internet?
2. Why is Monster.com the most successful online career site?
3. Explain the importance of the “building communities online” initiative to the future of
Monster.com.
4. If Monster.com were interested in a service guarantee, what should it be and why?

Assignment Answers:

1) Features of Monster.com that make it an ideal service business to deliver on the Internet:
a. Monster.com is a web-based platform that allows job seekers to post their resumes and
apply for jobs, making it an ideal service business to deliver on the Internet.
b. The website provides a comprehensive database of job listings from around the world,
making it easy for job seekers to find employment opportunities that match their skills and
experience.
c. Monster.com's user-friendly interface and advanced search capabilities make it easy for
job seekers to find the right jobs quickly and efficiently.
d. The website also provides career advice and resources, including resume writing tips,
interview tips, and salary calculators, making it a one-stop-shop for job seekers.
e. Monster.com has a wide reach, with a global presence in over 40 countries and localized
content that caters to the needs of different regions.
f. The platform also allows employers to post job listings and search for candidates, making
it a valuable tool for recruitment and talent management.

2) Reasons why Monster.com is the most successful online career site:

a. Monster.com was one of the first online job boards, giving it a first-mover advantage in
the market.
b. The website's user-friendly interface and advanced search capabilities make it easy for job
seekers to find the right jobs quickly and efficiently.
c. Monster.com has a wide reach, with a global presence in over 40 countries and localized
content that caters to the needs of different regions.
d. The platform also provides career advice and resources, including resume writing tips,
interview tips, and salary calculators, making it a one-stop-shop for job seekers.
e. Monster.com's brand recognition and reputation have helped it become the most
recognized and trusted online career site.
f. The website has a large database of job listings, making it a valuable tool for employers
looking to recruit top talent.

3) Importance of the "building communities online" initiative to the future of Monster.com:

a. Building communities online is a crucial initiative for Monster.com as it helps to create a
sense of engagement and community among job seekers and employers.
 b. By fostering online communities, Monster.com can increase user engagement and loyalty,
which can lead to increased traffic and revenue.
c. Building communities online can also help to establish Monster.com as a thought leader in
the industry and a go-to resource for career advice and networking opportunities.
d. Online communities can also facilitate knowledge sharing and collaboration among job
seekers and employers, leading to better outcomes for both parties.

4) Service guarantee that Monster.com could offer:

a. Monster.com could offer a service guarantee that ensures job seekers find a job within a
certain period or receive a refund of their subscription fee.
b. The guarantee could be contingent on the job seeker meeting certain criteria, such as
applying to a minimum number of jobs or attending a certain number of interviews.
c. A service guarantee could help to build trust and credibility with job seekers, leading to
increased loyalty and repeat business.
d. The guarantee could also act as a differentiator from other online job boards and help
Monster.com to attract more customers.

SERVICE FACILITY DESIGN AND LAYOUT; Case (Shouldice Hospital)

Assignment Questions:
1. How do the elements of Shouldice’s strategic service concept (both structural and managerial)
account for the success of the hospital?
2. How does the Shouldice Hospital physical facility and layout support the service concept?
3. In what respects is Shouldice Hospital a successful service organization? Is its performance
along these dimensions typical of other hospitals?
4. Could Shouldice be a model for other service firms? What would be the characteristics of
candidate services?

Assignment Answers:
1. Shouldice's strategic service model places a strong emphasis on patient comfort and
satisfaction, a single specialised service, a distinctive surgical technique, and a commitment to
excellence. As a result of these factors, the hospital now offers a distinctive and highly
effective service package that draws clients from all over the world. The management
techniques used by the hospital, such as a well-trained staff and a patient-centered culture,
also contribute to its success.

2. The physical structure and architecture of Shouldice Hospital are intended to support the
hospital's service strategy. The layout of the hospital revolves around a central courtyard,
which offers patients a relaxing and attractive environment. Due to their positioning around
the courtyard's edge, the surgical suites get plenty of natural light. Separate entrances and
waiting spaces for patients receiving surgery and those undergoing diagnosis and consultation
allow for an efficient flow of both patients and personnel.
3. Shouldice Hospital is a multifaceted service business that achieves success. With a patient
satisfaction score of over 95%, the hospital has a low rate of complications and a high rate of
success. With a normal hernia repair procedure completing in just three days, the facility also
runs at high capacity. Since most hospitals do not specialise on a single service and do not
have the same levels of patient satisfaction or efficiency, Shouldice Hospital's success is not
typical of other hospitals.

4. Shouldice Hospital might serve as a role model for other service businesses, especially those
in the healthcare sector. Candidate services for such a model would include a patient-centric
culture, a commitment to quality and efficiency, a focus on a single specialised function, and
well-trained personnel. Shouldice model implementation would also be a smart choice for
services with a low rate of difficulties and a high success rate. The Shouldice model is
extremely specialised, thus it might not be appropriate for all healthcare services, so it is
crucial to keep this in mind while attempting to reproduce all services.