Observation of behaviour of company - service process matrix, Operation Management

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Observation of behaviour of company - Service Process Matrix

Schmenner observes that many service industries seem to be adopting competitive stances which imply moving up the diagonal. For example, banking and retailing are becoming more automated; fast food restaurants more standardised, and there are opportunities for professional service firms to specialise. Schmenner argues that the managerial pursuit along the diagonal is for two important reasons: managerial control and reduced cost. Both are responses to increases in competition and the opportunities in the growth of the services market. At the last count McDonald's has 28,000 outlets worldwide. It is worth reading the Economist which provides reports into the growth in global services and the percentage attributed to individual countries. At the moment the US followed by the UK have the greatest share of global services.


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