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Service Operating Strategy - Essay Example

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Running head: SERVICE OPERATING STRATEGY Service Operating Strategy Scenario- based Individual Project      SM2037 U1036408 Seminar Group 8 01 March 2012 Service Operating Strategy Introduction A business organization strives to ensure that tasks are completed in order to achieve predetermined goals…
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Download file to see previous pages Needless to say, a business’s operations are important, as they comprise daily activities; these activities contribute to the success or failure of a business organization. Therefore, a business’s operations and strategy determine its ability to achieve success and survival in a competitive market (Anon, 2007, p.21). Boyer, Hallowell & Roth (2002, p.176) emphasize that, in a business, customer loyalty and retention can improve profitability for the business; as a result, an effective operating strategy is vital in a business. Needless to say, a service operation strategy should be well managed for it to succeed in improving customers’ satisfaction, and as a result, achieving competitive advantage. In addition, a service operating strategy must align with the targeted market requirements (Boyer, Hallowell & Roth, 2002, p.176). This research involves a case study of a reputable Italian restaurant, whose decision to launch new outlets yields to a concern on poor customer experience in the new outlets, which may tarnish the restaurant’s image. As a result, the creation of a service operating strategy for the new outlets is required, which is the main aim of this paper. Italian Restaurant Outlets; Service Operating Strategy This Italian restaurant (Bel Cibo’) has a 25 full service outlets; its decision to look for expansion opportunities has led management to consider new mini-outlets with limited menus and low cost. However, the main concern lies in the poor customer service experience that may occur, and as a result, tarnishing the restaurant’s successful brand. Therefore, the need for a service operating strategy has emerged; when service level and costs are well balanced, they can lead to sustainable competitive advantage. Hawkes, Bailey & Reid (2011) add that, it is important to match service requirements with the needs of customers; for instance, some customers may prefer self-service, for example when using the banks ATMs or in a grocery shop when selecting their preferred greens. However, in a restaurant, a customer expects to be served, “matching the customer’s expectation with the service delivery method will increase the customer’s satisfaction and the revenue as well” (Hawkes, Bailey & Reid, 2011). In addition, there is need for continuous monitoring of the service processes, which foster service improvement. For instance, in the Bel Cibo’ restaurant outlets, management can ensure that the monitory role is delegated to a qualified personnel, capable of identifying errors and suggesting improvement strategies. Employees of Bel Cibo are the main determinants of the quality of customer services, and as a result, leading to high or low productivity. It is therefore necessary for management to consider the employee’s labor hours and avoid employee burnout, which will result to poor customer services. At the same time, full-time and part-time workers are necessary as well as the shifts strategy, which allows workers to break after some hours of working. Moreover, it is essential to ensure that employees are well motivated; this can be in form of training, promotion, reward and ensuring good working conditions among other activities. Hawkes, Bailey & Reid (2011) emphasize on the use of rewards in improving quality customer service. When employee motivation is achieved, employees will be in a position to improve the ...Download file to see next pagesRead More
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