Services Industries and Building Economic Growth - Coursework Example

Services Industries Are Important In Building Economic Growth Service organisations in of time have become the heart of success in today’s competitive world of global financial market. The role as well as the importance of services in today’s business organisations has been increasing day by day making much broader the scope of fulfilling the expected business goals especially of the service related industries. The term services are typically defined as a varied group of financial actions that are not directly linked with the designing and manufacturing of goods or products. They usually engage various provisions relating to human value in terms of promoting managerial abilities, and training as well as development among others. Services basically play an imperative role in the service related industries that mainly focus upon the economic functions of a business organisation and ultimately intends to contribute towards building better economic growth. This is due to the fact that services dynamically take utmost care of different smooth performance of businesses that include transportation, distribution and financial systems as well (OECD 2000). In the paper, the need for the business organisations in order to grow their offered services along with designing as well as building those services which attempt to attract the customers has been discussed. Moreover, the different approaches of two Australian organisations related to financial service segments namely Commonwealth Bank and Patersons Securities toward building their offered service businesses will also be portrayed. According to Clatworthy (2011), the area relating to service offering as well as design has been observed as speedily expanding in the prevailing business market and makes an important contribution towards assisting the service related industries to attain their expected business goals successfully. The business organisations need to develop their offered services owing to increased development in the aspect of innovation in their respective offerings as a consequence of continuously changing customer demands and competition in the industry level. From an in-depth point of view, it can be observed that this particular aspect of innovation ultimately raises intense business market competition amid the service based organisations or industries (Clatworthy 2011). In this regard, Riel (2005) stated that the service based organisations or the industries generally need to develop their offerings with the motive of maintaining their current market share along with attaining competitive position in the market by a significant level. Furthermore, Riel (2005) also noted that the organisations intend to attain significant economic benefits in order to preserve their current business performances by developing their valuable offered services by a large extent. In addition, the other noteworthy benefits for the business organisations that are associated with the aspect of developing the offered services include possessing deeper understanding of the trade-offs, rendered especially for the businesses concentrated on service offerings, advancing their business operational tactics and finally to sustain in the competitive business market situation (Riel, 2005). According to Pride and Ferrel (2012), the business organisations require developing their offered services owing to the reason of boosting customer satisfaction, complying with the individual requirement of the customers along with delivering the requisite services that the customers desire to obtain from the business organisations. Pride and Ferrel (2012) mainly identified that the chief intention for the business organisations in order to progress with their offered services is to keep utmost focus on the customers by satisfying all their expected needs delivering developed services offerings to them. Thus, collectively stating, the objectives related to the requirement of developing the service offerings by these organisations, which were identified by the different writers in order to develop the offered services, include increasing their current market share, attaining competitive position and enhancing customer satisfaction. Moreover, the other reasons for the business organisations to continuously develop their offered services include fulfilling the desires as well as the requirements of the customers, delivering requisite services to the customers and most importantly to sustain in this competitive world of financial market (Pride & Ferell 2012). The other noteworthy reason for the business organisations to build their service economy or develop their offered services is to decrease their operating or marketing costs (McManus 2009). It has further been observed that the financial services, information and technology, as well as transportation related business segments have been impacted by market forces that include market liberalisation and deregulation among others (McManus 2009). Hence, in relation towards designing as well as building services to attract the new along with existing customers, it has been observed that it is increasingly becoming quite difficult to sustain in this competitive global financial market. The market completion is rapidly mounting day by day due to the momentous issue of global market expansion. In this context, the business organisations greatly realises the need to develop as well as to design and build their valuable offered services for the purpose of attracting the new and existing customers along with sustaining in the competitive business market (Scribd Inc. 2012). The business organisations can thus design as well as build their offered services by focusing upon the aspect with regards to the significant elements of marketing mix i.e. 7 P’s along with the insight of customer service. In relation to the aspect of 7P’s, in terms of product, the business organisations usually design and build their valuable offered services by emphasising upon their different offerings on the basis of customers’ perceived values. This implies that the business organisations normally offer their services according to the requirement of the customers. From the viewpoint of price, the business organisations generally render their services at a certain determined price that are broadly accepted by the customers. In terms of place, the business organisations fundamentally tend to establish their business locations in such a place that is suitable for the customers to procure their offered services. Furthermore, with regards to the aspect of promotion, the business organisations execute different strategies for their offerings that include personal as well as direct selling, advertisements in the newspapers or televisions, magazines and hoardings among others. In relation to the strategies developed, the business organisations dynamically train their workforce in order to serve better towards the customers (Scribd Inc. 2012). Following the aspect of people, the business organisations in relation to service based industries execute the process of operational activities in a cost-effective and a systematic manner to develop their services offerings as highly effective. In terms of physical evidence, the business organisations possesses a sustainable environment in which the offered services are delivered that assist the organisations to communicate as well as to maintain track record upon the likings and the choices of the customers. Along with the aspect of 7P’s, the business organisations also tend to focus upon the idea of delivering adequate customer service. In this context, the business organisations design as well as build their different offered services according to the requirements and the desires of the customers (Scribd Inc. 2012). Thus, it can be stated that the business organisations greatly emphasises upon the above discussed features and designs in the process to build their offered services with the purpose of attracting their new along with existing customers by a considerable level. The business sectors greatly realises the need to develop as well as to design its offered services concerning the fact that there may lay certain future challenges to the services economy which majorly include lack of proper qualified personnel and maximisation of customer requirements by a considerable extent. However, in order to minimise these sorts of future challenges, the business organisations would have to invest heavily upon the training of the working personnel as well as in the research of customer needs (McManus 2009). It is in this context that the Commonwealth Bank is regarded as one of the principal providers of incorporated financial related services in Australia that broadly include business as well as institutional banking, retail along with premium banking and share broking service offerings among others (Commonwealth Bank of Australia 2012). Conversely, Patersons Securities is regarded as one of the leading firms to render services relating to stock broking as well as finances in Australia. The different offered services by Patersons Securities include asset as well as portfolio management business service, cash along with fixed interest related policies and options trading among others (Patersons Securities Limited 2012). In respect to building service trade, the business organisation, i.e. Commonwealth Bank, mainly follows a well-designed as well as a structured business operation procedure. In this context, it has been observed that the organisation delivers wide collection of financial offered services to the customers, through which the customers are free to choose any sort of investments in different fields. Furthermore, the Commonwealth Bank focuses upon complying, especially with the financial requirements of small business as well as personal customers seeking for affordable convenient banking. In addition, the organisation dynamically builds its service businesses by maintaining various business practices that are associated with the code of banking practice. In this context, the organisation comply with the different applicable business practices by delivering general information relating to banking matters to the organisation (Commonwealth Bank of Australia 2012). In contrast, the advisors of Patersons Securities provide timely as well as professional financial related advices to its customers or clients. The organisation also focuses on remaining highly committed towards offering the clients a considered outlook regarding managing as well as organising different sorts of investments. Moreover, the business organisation attempts to build their service businesses by delivering broad assortment of financially related offered services in order to fulfil the needs as well as the desires of its valuable consumers. In addition, the other contributory factors of building the service businesses of Patersons Securities is organising or conducting ‘Market Outlook as well as Superannuation Seminars’ nationally in a periodic basis. The other significant facets of Patersons Securities in relation to build their offered services is regarding the execution of the facilities concerned with margin lending that again enables the customers to gear into the financial marketplace by borrowing considerable level of investments (Patersons Securities Limited 2012). After acquiring a brief idea regarding the competitive situation of the financial market, it can be stated that there lies utmost need for the business organisations such as Commonwealth Bank and Patersons Securities to introduce innovative offerings. The proper development of those offered services of the organisations would ultimately assist in attracting their new as well as existing customers along with sustaining in this competitive business market position. In order to fulfil their expected returns along with other noteworthy business goals, both Commonwealth Bank as well as Patersons Securities are constantly developing their respective business policies along with their different valuable offered services. Thus, it can be concluded that by designing as well as developing the offered services, the business organisations can reach their desired business targets with efficiently building their financial growth in the long run. References Clatworthy, S., 2011, ‘Service innovation through touch-points: development of an innovation toolkit for the first stages of new service development’, International Journal of Design, vol. 5, no. 2, retrieved 18 May 2012, . Commonwealth Bank of Australia 2012, ‘Commonwealth Bank overview’, retrieved 18 May 2012, McManus, J 2009, ‘The service economy’, Management Services, vol. 53, no. 2, retrieved 18 May 2012, OECD 2000, ‘The service economy’, retrieved 18 May 2012, Patersons Securities Limited 2012, ‘About Us’, retrieved 18 May 2012, Pride, W. M & Ferrell, O. C 2012, Foundations of marketing, Cengage Learning, US. Riel, A. C. R. V 2005, Service innovation management, Emerald Group Publishing, UK. Scribd Inc. 2012, ‘7 P’s of service industry/banking’, retrieved 18 May 2012, Read More