Service Prsnt

8/2/2019 Service Prsnt

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Service Management

Presented to: Prof. Ankita

Group Members:Shekhar Erande 1073

Sameer Ghadi 1074

Ronak Nanda - 1090


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Service Defination Services are essentially intangibles. their purchase

does not result in the ownership of anything physical

E.g.. - While you watch a movie , you purchase theviewership for entertainment but you do not purchasethe movie .

- You can only seek advice of Doctor , you do notpurchase him


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ServiceA service is an act or performance offered by one party

to another. Although the process may be tied to aphysical product. The performance is essentiallyintangible & does not normally result in ownership ofany factors of production.

Service are those separately identifiable , essentiallyintangible activities that provide want satisfaction ,and are not necessarily to sale of the product oranother service .


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Goods vs. Services

Good: tangible physical object; created and transfered;

existence over time

Service: intangible; created and used simultaneously;only the effect has an existence over time


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Physical goods

Servicestangible intangible

homogeneous heterogeneousProduction and distribution are

separated from consumption Production, distribution and

consumption are simultaneousprocessesA thing An activity or process

Core value processed in factory Core value produced in the buyer-seller interaction

Customers do not participate in theproduction process Customers participateCan be kept in stock Cannot be kept in stock

Transfer of ownership No transfer of ownership


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Types of service


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Important services in India

Trade, Hotels and Restaurants

Transport, storage & Communication

Banking, Real Estate etc

Source: Central Statistics office


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Salient features of Service business format

Service Quality is Difficult to Evaluate

Time Factor

It is very difficult to standardize services


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5 I's of ServicesIntangibility

Inseparability

Inconsistency

Inventory

Inability to own


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IntangibilityService firms primarily deliver intangibles and servicequality and consistent delivery over time are crucialaspects.

It is important for international service firm toinstitutionalize the knowledge gained abroad in termsof procedures, manuals, service processes, ITsolutions.

Service firms must pay attention to recruiting foreignstaff, using local knowledge and developingrelationships.


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InseparabilityIt refers to the simultaneous production and consumptionof services.This has two main problems for internationalization ofservices. First is the problem of customer accessibility tothe service delivery system service firms usually have tobe in foreign countries because it is quite hard to exportservice. Second is the problem of difference in culture. Butin this context,Two kinds of service firms should be distinguished: soft (itis impossible to decouple production and consumption ofservices, e.g. hairdressing) and hardservices firms (it ispossible to separate production and consumption, e.g.software).


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InconsistencyThe process consists of three sets of recourses andeach of them may impact differently on the finalservice quality during and after this process .First are

customer recourses and their style of participation theservice encounter. Second are contact recourses(service provider and their style of delivering theservice).Third are physical recourses. Services firmaintending in internationalizing should take culturaldifferences into account. Approaches found to beeffective in one market need not be effective in othermarket


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InventoryTechnology has a tremendous impact on theopportunities to internationalize service firms and alsoon the choice of their entry mode. It can be possible toavoid the necessity of the physical presence during theservice encounter a service firm does not have tohave its complete offering on a particular site and itsimplifies operations. Technology influences all the

5 Is.


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Inability to ownIt may create a lot of insecurity about the service,especially when perceived risk is high. Trust is themost important factor in creating bonds between theservice provider and the customer and makes thepossibility to build marketing relationships.


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Role of Service In Economy

Service have to come to stay more as culture than acommodity . this has significant ramifications for anyeconomy .

As any economy attempts to strengthen itself , itdepends largely on contribution in terms of domesticproduct largely coming for services

A quick review of numbers will suggest that for most

developed countries ,barring japan ,the contributionof services to GDP is nearing 70 % .


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Share of service in ECONOMY- Country Wise

HDI 2Rank

CountryAgricultur

e(%GDP)

Industry(%GDP)

Services(%GDP)

1 Canada NA NA NA2 Norway 02 32 66

3 United States 02 27 71

4 Japan 02 38 60

5 Belgium 01 21 7810 United

Kingdom02 31 67

50 Mexico 05 26 69

132 India 25 30 45


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Share of Services in ECONOMY

Region Wise

Region Agriculture(%GDP)

Industry( % GDP)

Services(%GDP)

Developed 02 64

East Asia (excludingChina)

04 36 60

Latin America , Caribbean 08 32 60

South Asia 25 29 46

South Asia (excludingIndia) 25 26 49

East Europe , CIS 11 36 53

Least Developed 33 25 42

All Developed Countries 13 36 51


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Localization

Experts are optimistic that services will be morebeneficial for the host countries, especially the Thirdworld.

Most Developing & underdeveloped economies arestruggling with their export performance, risingimports, currency rates, recessions, bailouts.

Due to inherent characteristics of intangibility,services have to located near their customers.


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Localization

Nations are increasingly realizing that economicperformance needs to reflect the aspirations of thelocal community also. Services largely do that

Service operations & processes operate locally

Services have greater propensity to absorb unskilled &semi-skilled workforce of the community.

Service tend to offer better wages than manufacturing.


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Socio- Economic Factors for Growth of

Services

ICE Age

Industrialization

Greater Life Expectancy

Greater Complexity of Life

Higher Disposable income

Changing social & Cultural valuesAdvances in Product Technology


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Political-Economic Factors

Change in government Attitude

Pressure on Public & non-Profit Enterprises

Private Initiative Internationalization & Globalization

Technological Innovations

Franchising Boom

Leasing , Renting & Financing


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Is India now a Service Economy ???

A major shift to Service Sector from Last Decade

Service Sector has out-performed Agriculture &Industry.

Services sector accounts for 55.2% of Indias GDP(2009-10)

Growth by 10% annually (2009-10)

Contributing to about a quarter of total employment

Recording very fast(27.4percent) export growththrough the first half of 2010-11

Source: indiabudget.nic.in


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Service Prsnt

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