Mert KAYGUSUZ

070050497

“THE SEARCH FOR SYNERGY: WHAT MARKETERS NEED

TO KNOW ABOUT SERVICE OPERATIONS”

Christopher H. LOVELOCK

Answers

1- Do you think that conflict in service businesses can become a factor of motivation for
improvement? State your arguments.

In real life business, there are always some conflicts that challenge the entire
organization. Especially in the departments where there are huge interactions with the
customers such as service businesses; several disagreements usually happen. In order to
decrease or make all these problems disappear, it is essential to create a harmony in the
triangle of benefits constructed by three vital elements of a strong organization; management,
employees and suppliers, and of course customers.

Regarding all these information that I have tried to analyze, I think that conflicts in the
business environment can create motivation. Obviously, “the amount of conflict” is an
important factor as too much contradiction can make the problems impossible to solve.
However, if there is a very balanced and modern conflict atmosphere in the working
processes, business environment can strengthen the employees in a very motivating way. If
we want to give an example about this subject, we can surely discuss the conflict between
operational efficiency, and customer satisfaction. In my opinion, a successful management
system looks to that situation with empathy, and tries to find an optimum philosophy by
considering all the variables, such as customer surveys, company profits, production
procedures, service techniques etc. Consequently; I believe that as different perspectives
enrich the business systems, “a reasonable dose of conflict” can make the organization more
effective and efficient.

2- Do you think that “buy” decisions in services may increase productivity in some
cases? If your answer is yes, give examples and explain. If your answer is no, state your
arguments.

In some cases, “buy decisions” can be more profitable for the company than the “make
decisions”. In complex business structures, it is sometimes impossible to focus on each task
with the same attention. In that point, using the external sources to complete the assignments
can be a better choice for the company’s interests. Thanks to that strategy, which means
charging outer suppliers for specific duties; the organization can focus better to its core
businesses. Using another firm for food services can be an accurate example of buy decisions.
In my opinion, if an organizational structure tries to accomplish every task by its
internal forces, it can not act effectively; but if it tries to use other sources in order to get its
specific works done, the firm can be more profitable. As a result, although there are several
risks of the buy decisions such as losing some of the controlling and responsiveness, buy
decisions can be very helpful for a firm if used carefully.

3- How do managers in service organization benefit in formulating their operations

strategy while searching for compatibility among the four basic forces represented in
Figure 1 on page 393?

Four Basic Forces in Service Organization

- What do we want? : Primarily, a management system should be aware of its major

demands such as company goals, target markets etc.
- What do our employees and suppliers want? : Then this “professionally conscious”
managing organism has to understand the main needs of its own employees and
suppliers.
- What do our customers want? : After that, the key element of the structure,
customers should to be considered in detail.
 - What can we do? : Furthermore, the company has to understand its own potential.
That means, it has to be realistic, as the organization has to determine what they are
capable of.

Moreover, it is also very important to understand the six interaction pairs formed by
the four circles. We can also evaluate them briefly in order to comprehend the essence of this
system.
Imagine we are the head of the management:

 If what we want is compatible with what we are able to do,

 If what we want does not contradict with what the employees and suppliers want,
 If what we want matches what the customers want,
 If what the employees and suppliers want fits into what the customers want,
 If what the employees and suppliers want can be done by the organization,
 If what we can do is the exact action that the customers want, the management can be
considered quite successful.

If the corporation accomplishes all these goals without any errors, it can maximize the
common space among these four principal factors.

4- Do operations managers favor standardization or customization? Why? How do

marketing managers feel about it? Discuss your arguments.

As the operations managers always look for new solutions with the purpose of maximizing
the profits and minimizing the costs, standardization is a much better option for them. By
making all the service procedures typical, the company can serve more with less labor.
Furthermore, not only the quantity of the labor, but also the skill level of the workers can be
decreased by using the standardization processes rather than the customization. Marketing
managers, on the other hand, point out the advantages of the customization. In today’s
business world, custom sales made with personal caring gains a huge importance in the
marketing area day by day. A great majority of the customers start to feel disturbed about the
identical, machine-like services that they get. Marketers are aware of the fact that, the future
of the delivery system design lies in the connection of these two approaches. That means, they
should make the standardization practices as custom as possible. (For example letting
customers choose their garnishes in Pizza Hut restaurants)

5- Do you share the marketers’ worry that “operations-oriented employees may be

unresponsive to customer needs?” If your answer is yes, what policies do you
recommend overcoming this difficulty? If your answer is no, state your arguments.

In some aspects, I also share the marketer’s worry about the operations – oriented employees.
In my opinion, as the operations – oriented workers are too focused on achieving the firm’s
goals; they sometimes face with some problems related to customers’ needs. That’s why, the
presence of the marketers is also very important in professional business constitutions.
Marketers can construct a very functional link between operations – oriented employees and
the customers. They not only try to prepare the employees for diverse customer based
challenges, but they also shape its own customers by emphasizing the organization’s
fundamental values. Customers who become more active in the service processes and workers
who care more about the customers’ demands can be considered as a sign of an effective
marketing strategy.

6- Suppose that you are the general manager of a service business and there is conflict
between the operations and marketing managers. How do you approach to overcome
this dispute?

I believe that a good manager is someone who always tries to find an optimum
solution when he/she faces some conflicts. Let’s say, I am the general manager of a service
business and there is conflict between the operations and marketing managers. First of all, I
have to think about the two different sides of the disagreement. Operations managers,
employees who work hard in order to reach company’s aims; and marketing managers, who
work in a very significant part of the firm trying to find the possible promotion and selling
strategies. I have to make a decision in a very democratic and modern way, so I call the head
of the each department for a discussion. I let each of them talk about their hesitations, and try
to make them meet in a common idea. After all, they all work for increasing the company’s
value. That’s why, if I make them reasonable explanations, they can surely agree. As a result, I
believe that a manager is not someone who knows and tries to do everything. He is someone
who inspires people to do things.