The Service Industries Have A Long History Of Serving Customers Globally As Well As Globally

2195 Words9 Pages
1. The Organization The service industries have a long history of serving customers domestically as well as globally. Services are intangibles and they cannot be inventoried. This is a headache for services managers in organizing their business and making profits. In other hand, the managers look at these circumstances as a challenging. As a service manager, he or she should know its capacity, for example the number of rooms, the personal from low to high levels. The Harvard Business review explains, “A resort operator decided to increase the number of rooms in a lodging facility and not to expand the central services required to support the additional guests. In fact, the room rentals contribute up to 90% of total revenue and that tennis court, swimming pools, meeting rooms, parking areas, chat rooms, telephone hub. Etc. contribute almost zero in profit. So, the service managers thought those should be opportunity cost, as soon as the customers still coming to rent the rooms or He or she convinced to create imbalance in favor of revenue -producing activities. In opposite, the number of guest adjust itself to level of occupancy; the level services could support not to the level of room capacity. The room capacity beyond the level supported by the services was wasted. The benchmarking of “our” organization verse “their” organization (the competition): The Orlando, Florida lodging industries’ response to the announcement of Disney World’s opening is a

More about The Service Industries Have A Long History Of Serving Customers Globally As Well As Globally

Open Document