A.

Y 2021-2022 1ST SEM

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Research
Activity

Jaina Jane Andaya| BSIHM3-1

 OPERATIONS MANAGEMENT
Agenda
1. Relevance of the Article

2. Objectives of the Journal Article

3. Highlights of Findings, Conclusions,

and Recommendations

4. Three Points of Agreement

5. Three Points of Disagreement

6. Recommendations for Further

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Study
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Pullman, M., Verma, R., & Goodale, J. (1998)
Service Design and Operations Strategy

Relevance Formulation in Multicultural Markets

of the
A business that caters to multicultural markets, faces

unique challenges in developing the appropriate

service strategy. This research paper focuses on the

Article operations strategy of a business in the hotel and

tourism industry under the service business.

While the strategic implications of expanding services

from a domestic market to an international location

have been well documented, multicultural customer

segments at one location are a unique problem that

OPERATIONS MANAGEMENT has largely been neglected by researchers.

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Objectives Present a conceptual framework and method for

of the
determining the extent of service product and process

attribute standardization versus customization in these

settings.

Journal Presents an approach for modeling the preferences of

Article
different cultural segments, evaluating the differences

between the segments, and determining the

appropriate service strategy for service providers

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Highlights
of Findings,
Conclusions,
OPERATIONS MANAGEMENT

and
Recommendations
 OPERATIONS MANAGEMENT
A firm delivering a service to multicultural markets

must decide if it is worth trying to pursue strategies

that customize its service product and process

Highlights
attributes for the various cultural segments or pursue

a standardization strategy that is acceptable across

of Findings
segments. We suggested two propositions and a

methodology for evaluating service design strategy in

this market, we illustrate the use of the method in an

actual case, and the propositions were generally

supported. From this work, we see implications for

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other services, limitations from this study, and ideas

for future work.

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OPERATIONS MANAGEMENT
The results of this study have implications for

other types of services. To successfully develop

strategies in multicultural environments,

managers must be sensitive to the similarities

Highlights
and differences the segments have regarding

preferences for service product and process

of attributes. We could generally confirm that

segments have certain different preferences

Conclusion and that attribute preferences converge for

certain universal or well-known service

attributes. This result implies that the smaller

local services can compete against well-known

franchises by catering to the cultural norms of

specific segments.
 To summarize, we have presented

an approach for positioning service

and formulating a service strategy in

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a multicultural environment. The

case analysis at BCIT food-service

operations demonstrates the value

of DCA and market utility models for

service strategy development. Given

OPERATIONS MANAGEMENT

the calls for multi-functional

research from the editors of the

major journals, we hope that other

research teams will undertake similar

Highlights
projects to analyze interdisciplinary of
Recommendations
issues related to service strategy

formulation.
Three
Points of
Agreement

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First Agreement

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Danaher (1998) suggested that the
lack of research on operations
strategy for multicultural services
relate to the problem of tailoring a
service to different customer
segments.
Third Agreement

OPERATIONS MANAGEMENT
Research has shown that
customers from different cultures
Second Agreement
and nationalities have different
In a multinational setting, food and expectations from services and
beverage service design is a perceptions of the actual service
challenging problem due to delivered.
cultural differences in uncertainty
avoidance or the way people react
to uncertainties and ambiguities
inherent in daily living (Hofstede,
1980; Lee and Ulgado, 1997).
 /11 1. In a multinational setting, food and
beverage service design is a challenging
problem due to cultural differences in

THREE POINTS OF uncertainty avoidance or the way

people react to uncertainties and

DISAGREEMENT ambiguities inherent in daily living

(Hofstede, 1980; Lee and Ulgado, 1997).
2 . Heskett, on the other hand,
argued that total experience services
should not change the service
OPERATIONS MANAGEMENT

strategy or the service delivery

system for multinational settings
(Lovemen, 1993).

3. Generally, international travelers

attempt to avoid uncertainty and
choose food from their respective
cultures or internationally
recognized brand names
1 OPERATIONS MANAGEMENT
We considered the market share impacts

of catering to different national segments

in a specific service setting. Future

research is needed in determining the cost

and benefits of customizing certain

portions of a service versus a standardized

service offering.
3
Given the calls for multi-functional

2 research from the editors of the major

journals, we hope that other research

While this study examined food and beverage
teams will undertake similar projects to
service, there are many other service

industries that potentially face diverse national analyze interdisciplinary issues related to

customer segments. Examples of these are service strategy formulation

international airline flights, off-shore customer

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service centers, electronic commerce, theme

parks and destination resorts and cruise ships.

Future research should look at the

implications for different service types.

 Service Design and Operations

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Strategy Formulation in Multicultural

Markets

The research conducted by Goodale, Verma,

and Pullman focuses on the formulation of

operations strategy and service design of a business

that has multicultural markets. The paper aims to

provide a solution for the problems encountered by

the business in the tourism and hospitality industry,

including these are the marketing strategy, service

strategy, and designs to be used by the business.

OPERATIONS MANAGEMENT
The paper also presents on what the preferences of different cultural segments, evaluates the

differences between the segments and determines the appropriate service strategy for service

providers. The researchers conducted a detailed case analysis

Of food court operations at one of the busiest US international airport terminals, referred to as

Big City International Terminal (BCIT) using the DCA method. The information presented in the

article is based on the data collected from the BCIT terminal management, food-service

vendors, and customer choice data collected during 1998.

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Operating a business under the tourism and hospitality industry gives a

lot of pressure on the company. Not just because it needed to provide high-

quality service and products but because it caters to a wide range of customers,

the multicultural markets. In this industry, people are from all over the world. One

of the largest industries and a worldwide one. As a student of the hospitality

management program, I can also say that working in a multicultural industry

needs a lot of works and effort. Some challenges needed to resolve and one of

these is the operations strategy for the multicultural market. The company

should analyze every aspect of the business, whether it may be the products,
OPERATIONS MANAGEMENT

services, and the people operating it. Operations strategy, multicultural customer

segments, and delivering service should not be neglected. This kind of problem

should also be focused on since the industry is a fast-changing one and it’ll

need a lot of different operating strategies, service designs, and people who

understand it.
 /15 The research aims to show the different variables that affect the business by surveying all the

passengers in the BCIT. This survey shows that there are lots of variables that could answer the

question of the researchers the first one is the comparison of the importance of customization and

standardized services. It is a good idea that they compare customized services to standardized one.

It helps the research to be more specific and to easily find the answer to the problem. The used

framework shows that some services can be standardized while others are customized to address

individual customer needs. It also shows two opposing propositions. The proposed conceptual

framework focuses on the cultural norms of each multicultural market. In the evaluation of service
OPERATIONS MANAGEMENT

designs, cultural segments will prefer service product and process attributes that are in line with their

cultural norms. This falls under the importance of customization While, cultural segments will share

similar preferences for promoted attributes of service concepts that have a universal appearance.

The standardization force occurs because the service firm either manages customer expectations so

cultural segments expect a certain experience or determine which attributes have universal appeal.

Thus, an appropriate service design attempts to match attribute levels to cultural segments by

focusing on and addressing one or both of these forces.

 OPERATIONS MANAGEMENT

This study provides a solution to some of the problems that the multicultural business in the

service industry. It gave a clear description of what the business should apply when it comes to

catering to a multicultural business, especially under the tourism and hospitality industry. It is a

good thing that there are researchers who focus on one of the largest industries that we have.

In this fast-changing world, everyone should keep up with the changes and think of different

and unique ways on how to cope with these changes. And this kind of study is a great help to

people who are just starting in the industry and to those people who are deciding to be part of

it.

I agree that lack of research for the industry is one of the aspects why there are businesses

that are being closed. Since they don’t have enough knowledge on the operations strategy,

service designs, and the markets that they will encounter. One of the problems or

challenges of a multinational setting business is the cultural norms that its market has.

People tend to buy products and services based on the cultural norms that they have. And

yes, as a hospitality management student, customers from all over the world have different

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expectations, standards, and preferences from services and perceptions of the actual

service delivered.
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OPERATIONS
I beg to disagree that in an international setting, food and beverage design is a

challenging problem due to cultural differences because there are businesses

under the tourism and hospitality industry that are equipped to cater to

multicultural markets and can step up with other industries. On the other hand,

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total services should change the service strategy or the service delivery system for

multinational settings. If one wants to compete in a multicultural environment, that

business should step up its game. They should not be in their comfort zone

because the industry is a wide playground for every company. And lastly,

international travelers are quite adventurous and wanted to try new things, they

travel because they wanted new things, to experience them, and to go out of their

comfort zone.

In conclusion, this study is highly recommended for people in the tourism and

hospitality industry since it focuses on strategies that will help the business grow

and step up its game.

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Submitted
by
OPERATIONS MANAGEMENT

Andaya, Jaina
Jane S.
BSIHM3-1