Lesson 1

• MISSION STATEMENT

  ·      Defines the company’s business, objectives & approach to reach the objectives
• VISION STATEMENT

  ·      Describe the desired future position of the company. What you like to become. It is aspirational.
• Service Organization:

  Principle business is the performance of services. Their business is all about the performance of service.
• TYPES OF BUSINESS SERVICES

  • Travel Services
  • Consulting Services
  • Financial Services
  • Management Services
  • Construction Services
• Types of Business Services: CONSTRUCTION SERVICES

  ·      Used in building buildings, updating/modifying offices
• Types of Business Services: TRAVEL SERVICES

  ·      Gets travel bookings with a reasonable charge, with itineraries provided
• Types of Business Services: CONSULTING SERVICES

  ·      Services of an advisory & intellectual nature provided by consultants with professional skills
• Types of Business Services: FINANCIAL SERVICES

  ·      Helps businesses in taxation, valuation, depreciation/expansion.
• Types of Business Services: MANAGEMENT SERVICES

  ·      Cater to various aspects of managing independent services
• 3 Factors Linked to Economic Development:

  • Contractual Labor Arrangement
  • Increased Construction Activity
  • Changes in Tech
• Factors of Economic Development: Contractual Labor Agreement

  ·      Created opportunities in personnel supply. Reduces recruitment & staffing costs.
• Factors of Economic Development: Increased Construction Activity

  ·      Increase demand for engineering, architecture, surveying, landscaping & horticultural services
• Factors in Economic Development: Changes in Tech

  ·      Tech improved. Demand for computer services, repairs, tech support, software dev.
• Outsourcing & Offshoring

  ·      Began in the 1960s & 70s with the transfer of physical manufacturing processes to lower-cost areas.
• Offshoring & Outsourcing began in 1960s & 70s
• Outsourcing & Offshoring is controversial because jobs are lost to foreign nations.
• OUTSOURCING

  ·      A firm’s practice of paying another firm to perform a function/produce products that could be done/made in-house. Done with overseas firms with lower salaries.
• OFFSHORING

  ·      A business process relocated to a lower-cost location, often overseas.
• (3) Service Organization Structure:

  • Blurred Boundaries
  • Complex Skills
  • Organizational Options
• Service Organization Structure: Blurred Boundaries

  ·      Employees perform different roles and isn’t confined to one
• Service Organization Structure: Complex Skills

  ·      Demand for wider skill set, those skills are often more complicated
• Service Organization Structure: Organizational Options

  ·      Use structure based on services/ processes because structures base on job functions leaves employees to determine things while dealing with demands of several managers.
• · Providing desired services makes customer satisfaction to customer loyalty