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ch14.ppt

Globalization of Services
Chapter 14

McGraw-Hill/Irwin

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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Course Overview

Define, describe and classify services (Ch 1,2)

Strategic view of service design & development (Ch 3,4)

Process view of quality improvement

(Ch 6,7,8)

Encounter view of customers & employees (Ch 9)

VIEWS

SPECIAL TOPICS

TOOLS

Capacity planning & queuing models

(Ch 11,12,16)

Project management (Ch 15)

Information technology (Ch 5)

Supply Chains & Outsourcing (Ch 13)

Globalization (Ch 14)

Facility location

(Ch 10)

Inventory control

(Ch 18)

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Expansion Strategies

Single Service Multiservice

Focused service: Clustered service:

Single * Dental practice * Stanford University

Location * Retail Store * Mayo Clinic

* Family restaurant * USAA Insurance

Focused network: Diversified network:

Multisite * Federal Express * Nations Bank

* McDonald’s * American Express

* Red Roof Inns * Accenture

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Franchising

  • Benefits to the Franchisee
    Management Training
    Brand Name
    National Advertising
    Acquisition of Proven Business
    Economics of Scale
  • Issues for the Franchisor
    Franchisee Autonomy
    Franchise Contract
    Conflict Resolution

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Generic International Strategies

 

Transnational

Strategy

Global

Strategy

Multi-domestic

Strategy

No

International

Strategy

Low

High

Force Towards Local Responsiveness

Force Towards Global

Integration

High

Low

 

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The Borderless World
(Kenichi Ohmae)

  • Customers - information has empowered
  • Competitors - nothing stays proprietary
  • Company - fixed costs require large markets
  • Currency - become currency neutral
  • Country - deprive competitor of home market

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International Strategic Service Vision
(Extension of Chapter 3)

 

 

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Service Delivery

System

Operating Strategy

Service Concept

Target Market Segments

Available technology?

Infrastructure?

Utility service?

 

Labor market norms and customs?

 

Space availability?

 

Interaction with suppliers?

 

Educating customers?

 

 

 

 

Appropriate managerial practice?

Participative?

Autocratic?

 

Labor market institutions?

Government regulations?

Unions?

 

Host government policies?

 

Language?

Front office?

Back office?

 

What are customer expectations?

Perception of value?

Service ethic?

 

Service encounter?

Language?

Acceptance of self-serve?

 

What are the usage patterns?

 

Cultural transferability?

 

 

What are the market segments?

Domestic?

Multinational?

Tourist?

 

What are important cultural differences?

Language?

Life style?

Disposable income?

 

What are the workforce demographics?

Skills?

Age distribution?

Attitudes?

Work ethic?

International Strategic Service Vision
(Extension of Chapter 3)

 

 

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Service Delivery

System

Operating Strategy

Service Concept

Target Market Segments

Available technology?

Infrastructure?

Utility service?

 

Labor market norms and customs?

 

Space availability?

 

Interaction with suppliers?

 

Educating customers?

 

 

 

 

Appropriate managerial practice?

Participative?

Autocratic?

 

Labor market institutions?

Government regulations?

Unions?

 

Host government policies?

 

Language?

Front office?

Back office?

 

What are customer expectations?

Perception of value?

Service ethic?

 

Service encounter?

Language?

Acceptance of self-serve?

 

What are the usage patterns?

 

Cultural transferability?

 

 

What are the market segments?

Domestic?

Multinational?

Tourist?

 

What are important cultural differences?

Language?

Life style?

Disposable income?

 

What are the workforce demographics?

Skills?

Age distribution?

Attitudes?

Work ethic?

International Strategic Service Vision
(Extension of Chapter 3)

 

 

*

Service Delivery

System

Operating Strategy

Service Concept

Target Market Segments

Available technology?

Infrastructure?

Utility service?

 

Labor market norms and customs?

 

Space availability?

 

Interaction with suppliers?

 

Educating customers?

 

 

 

 

Appropriate managerial practice?

Participative?

Autocratic?

 

Labor market institutions?

Government regulations?

Unions?

 

Host government policies?

 

Language?

Front office?

Back office?

 

What are customer expectations?

Perception of value?

Service ethic?

 

Service encounter?

Language?

Acceptance of self-serve?

 

What are the usage patterns?

 

Cultural transferability?

 

 

What are the market segments?

Domestic?

Multinational?

Tourist?

 

What are important cultural differences?

Language?

Life style?

Disposable income?

 

What are the workforce demographics?

Skills?

Age distribution?

Attitudes?

Work ethic?

Hofstede Dimensions

  • Power Distance Index
  • Individualism
  • Masculinity
  • Uncertainty Avoidance Index
  • Long-Term Orientation

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International Strategic Service Vision
(Extension of Chapter 3)

 

 

*

Service Delivery

System

Operating Strategy

Service Concept

Target Market Segments

Available technology?

Infrastructure?

Utility service?

 

Labor market norms and customs?

 

Space availability?

 

Interaction with suppliers?

 

Educating customers?

 

 

 

 

Appropriate managerial practice?

Participative?

Autocratic?

 

Labor market institutions?

Government regulations?

Unions?

 

Host government policies?

 

Language?

Front office?

Back office?

 

What are customer expectations?

Perception of value?

Service ethic?

 

Service encounter?

Language?

Acceptance of self-serve?

 

What are the usage patterns?

 

Cultural transferability?

 

 

What are the market segments?

Domestic?

Multinational?

Tourist?

 

What are important cultural differences?

Language?

Life style?

Disposable income?

 

What are the workforce demographics?

Skills?

Age distribution?

Attitudes?

Work ethic?

Examples of Global Service Strategies

Globalization Global Service Strategies

Factors

Multicountry Importing Follow Your Service Beating the

Expansion Customers Customers Offshoring Clock

Customer Train local Develop foreign Develop Specialize in Provide

Contact workers language & foreign back- office extended

cultural sensitivity customers office service hours of

skills components service

Customization Usually a Strategic Re-prototype Quality and More need for

standard opportunity locally coordination reliability &

service coordination

Complexity Usually Strategic Modify Opportunity for Time

routine opportunity operations focus compression

Information Satellite On site advantage Move Training Exploit

Intensity network experienced investments opportunity

managers

Cultural Modify Accommodate Could be Cultural Common

Adaptation service foreign guests necessary to understanding language

achieve scale necessary

Labor Intensity Reduced Increased labor Hire local Reduced labor Reduced labor

labor costs costs personnel costs costs

Other Government Logistics Inadequate Home office Capital

restrictions management infrastructure employee investments

morale

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