This assignment deals with the issue of service management for organisations that essentially sell products, the various aspects of service management in such organisations, and the impact of service delivery on the growth, market share and profitability of these organisations. Use is made of the case of Whitbread plc, the UK’s largest operator of budget hotels, to discuss the issue of service provisioning and its management in the budget hotel environment.
The conduct of this study reveals that modern day product companies often have to provide services, as well as bundle them up with their products, in order to achieve customer satisfaction and improve customer relationships and loyalty. The provisioning of such services, including their formulation, planning, and delivery, is however an exceedingly complex process that can create operational and financial challenges for the involved organisations.
Inhaltsverzeichnis (Table of Contents)
- Introduction and Overview
- The Growing Importance of Service Management in Product Companies
- The Challenges of Service Provisioning and Management
- Service Quality Frameworks
- The Impact of Services on Profitability
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment explores the challenges of service management within product-focused companies. It examines how service provision has become increasingly crucial in a competitive marketplace and analyzes the impact of service delivery on organizational growth, market share, and profitability. The case study of Whitbread plc, the UK's largest budget hotel operator, provides a practical example to illustrate these concepts.- The evolving role of service management in product companies
- The challenges associated with providing and managing services effectively
- The impact of service delivery on profitability and competitive advantage
- The importance of service quality frameworks for successful service management
- The relationship between service management and organizational growth
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction and Overview: This chapter introduces the topic of service management in product-focused companies, emphasizing the shift from transactional product sales to a more holistic approach that includes service provision. It highlights the increasing importance of service management in a competitive business environment.
- The Growing Importance of Service Management in Product Companies: This chapter delves into the reasons behind the growing importance of service management. It explores factors such as increased competition, customer awareness, and the availability of information, which have prompted product companies to invest in services to enhance customer satisfaction and loyalty.
- The Challenges of Service Provisioning and Management: This chapter examines the challenges faced by product companies in providing and managing services. It highlights the difficulties in achieving scale and cost efficiency in service delivery, the need for specific managerial skills and resources, and the associated costs of service provision.
- Service Quality Frameworks: This chapter introduces prominent service quality frameworks like the ServQual Model and the Gronroos service quality model. It discusses the features and criteria outlined by these frameworks, emphasizing the importance of understanding service quality for successful service management.
- The Impact of Services on Profitability: This chapter explores the potential impact of services on organizational profitability. It examines the challenges of pricing services, the need for efficient service delivery, and the importance of managing service costs effectively to ensure profitability.
Schlüsselwörter (Keywords)
The primary keywords and focus topics of this work include service management, product companies, customer satisfaction, profitability, competitive advantage, service quality, service frameworks, and case studies. The text examines how service provision has become a crucial aspect of modern business strategy, highlighting its impact on organizational growth, market share, and financial performance.Frequently Asked Questions
Why do product-focused companies invest in service management?
To enhance customer satisfaction, build loyalty, and differentiate themselves in highly competitive markets where products alone are no longer enough.
What is the "ServQual Model"?
It is a framework used to measure service quality by comparing customer expectations with their actual perceptions of the service received.
Why are service businesses often barely profitable?
Operational complexity, difficulties in achieving scale, high labor costs, and the challenge of pricing services effectively can limit profitability.
How does service delivery impact a company's growth?
Effective service delivery can lead to higher market share through customer retention and positive word-of-mouth, fueling organizational growth.
What is the focus of the Whitbread plc case study?
It examines service provisioning and management within the budget hotel environment, specifically looking at operational and financial challenges.
- Quote paper
- Alexander Schmithausen (Author), 2012, Critically discuss why service businesses sector has grown, but the businesses are often barley profitable? , Munich, GRIN Verlag, https://www.grin.com/document/199984
