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Operations Management

This exercise is the first opportunity for you to test your understanding of the Harvard Referencing Style.
You will utilise this style in your studies at the University of Liverpool to reference a wide variety of
To complete this exercise:
�Search through the guide and find an example of each of the 10 items listed below:
o Book
o Chapter in a book
o Conference paper
o Electronic journal accessed online
o Podcast
o Publication with three authors
o Publication with more than three authors
o Secondary referencing
o University module lecture notes
o World Wide Web document
�Using the above examples, create an appropriate reference list. Be sure to write each correctly and
to alphabetise your list as required by Harvard style.

Levitt discusses the need for, and potential benefits of, the industrialization of service. He
describes specialization as essential to achieving meaningful economies of scale and, thus,
productivity, and likens the notion of specialization to the concept of division of labor in
manufacturing. Specialization continues to be critically important, although the term focus is
more commonly used today. Davidow and Uttal (1998) echo these thoughts when calling for
service companies to develop and execute focused strategies. These authors describe the need
for defining fairly narrow customer segments (in contrast to more broadly defined market
segments) in order to simultaneously achieve high levels of customer satisfaction and
efficiency, and, consequently, profitability. They emphasize the central role of customer
expectations in this context and describe the need for managing them, i.e. setting them to
appropriate levels.

Thakor and Kumar discuss their research into consumers’ perception of what
characterizes professional services. Consumers consider those services to be ‘more
professional’ that are perceived to require higher levels of expertise and lower levels of manual
labor, and that possess higher levels of credence qualities. Similarly, ‘more professional’
services are deemed more critical, recommendations play a more important role in service
selection, and involve a higher lack of clarity as to the nature of service actually required.
McLaughlin et al. (1995) provide a detailed discussion of focus in professional service
organizations. Drawing on empirical research of outpatient surgery centers, these authors
define the notion of focus, discuss benefits and disadvantages, and develop a framework
aiding managers in making micro-focus decisions. Ojasalo (2001) investigates the specific
nature of customer expectations in the context of professional services and describes them as
often being fuzzy, implicit, and unrealistic. He describes the potential effect of such
expectations and professional service providers’ failure to meet them on perceived service
quality. The author discusses the potential negative effects of appropriately managing such
expectations on “perceived short-term quality/satisfaction and the related potential positive
effects on long-term quality/satisfaction”.

Meyer Goldstein (2002) describe the service concept’s role in driving design and
planning decisions at all levels of new service development. The service concept is described
as essential to creating organizational alignment by linking a service organization’s strategic
intent to its customers’ needs, and as linking the ‘how’ and ‘what’ of service design. Kwortnik
and Thompson (2009) research the case of ‘Liberty Cruise Lines’ to understand the service
operations challenges originating from service design decisions taken from a service
marketing perspective. They advocate the use of the service operations model, which includes

the service promise and concept as one of its essential elements. The authors emphasize the
need for coordination between service marketing and operations during ongoing operations
rather than only during new service development. Furthermore, they suggest bridging the
service marketing-operations gap with service experience management, a new function
integrating service operations and marketing. Malhotra and Sharma (2002) agree that the
interface between service marketing and operations is critically important. They emphasize the
importance of cross-functional interactions and joint decision-making across these disciplines,
and introduce a simple marketing operations integration framework, which identifies
opportunities for inter-functional integration. A cross-functional approach to service
management is seen as essential for effective service design and delivery.

Heskett, Jones, Loveman, Sasser, and Schlesinger (1994) describe the service-profit
chain, which identifies the drivers of profitability and revenue growth in service organizations.
Customer loyalty is identified as the primary driver and in turn originates from customer
satisfaction and service value. In turn, service value originates from employee retention and
productivity, which both result from employee satisfaction. Employee satisfaction primarily
originates from internal service quality, which enables employees to deliver results desired by
customers. According to these authors, the results for customers that constitute service value
are defined by the service concept, which is the central element of the service-profit chain.

Several authors notice the increasing emphasis on the customer experience as part of
delivering services to customers. According to Verma et al. (2002: 117), “[s]ome researchers
argue that several developed nations have moved beyond the service economy to
the experience economy”. Fynes and Lally 2008 agree on the growing importance of the

experience element of a service and advocate progressing from mere service concepts to more
explicit experience concepts. This notion puts increased emphasis on the service
experience element of the service concept as described by Johnston and Clark (2005: 37-63).

Davidow, W.H. & Uttal, B. (1989) ‘Service companies: focus or falter’, Harvard Business Review, 67
(4), pp.77-85, Business Source Premier [Online]. AN: 8909250509 (Accessed: 4 October 2009).
Fynes, B. & Lally, A.M. (2008) ‘Innovation in services: from service concepts to service experiences’
. (eds.) Hefley, B. & Murphy, W. Service science, management and engineering: education for the
21st century. SpringerLink [Online].
Heskett, J.L., Jones, T.O., Loveman, G.W., Sasser, W.E. Jr. & Schlesinger, L.A. (1994) ‘Putting the
service-profit chain to work’, Harvard Business Review, 72 (2), 164-170, Business Source
Premier [Online]. AN: 9405100929 (Accessed: 6 September 2009).

Johnston, R. & Clark, G. (2005) Service operations management: improving service delivery. 2nd ed.
Prentice Hall: Harlow, UK
Kwortnik, R.J. Jr. & Thompson, G.M. (2009) Unifying service marketing and operations with service
experience management, Journal of Service Research, 11 (4), pp.389-406, Sage
Levitt, T. (1976) ‘The industrialization of service’, Harvard Business Review, 54 (5), pp.63-74, Business
Source Premier [Online]. AN: 3867393 (Accessed: 4 October 2009].
Malhotra, M.K. & Sharma, S. (2002) ‘Spanning the continuum between marketing and
operations’, Journal of Operations Management, 20 (3), pp.209-219. ScienceDirect [Online].
McLaughlin, C.P., Yang, S. & van Dierdonck, R. (1995) ‘Professional service organizations and
focus’,Management Science, 41 (7), pp.1185-1193, JSTOR
Susan Meyer Goldstein, Robert Johnston, JoAnn Duffy, Jay Rao (2002) ‘The service concept: the
missing link in service design research?’, Journal of Operations Management, 20 (2), pp.121-
134, ScienceDirect [Online].
Ojasalo, J. (2001) ‘Managing customer expectations in professional services’, Managing Service
Quality, 11 (3), pp.200-212, Emerald

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