Strategic and Functional Roles of Services Environments Discussion Write discussion post with references (apa); “How do the strategic and functional roles

Strategic and Functional Roles of Services Environments Discussion Write discussion post with references (apa);

“How do the strategic and functional roles of services environments differ within a service organization? Give examples.

Reply to two discussion posts:

Post 1:

Strategic and functional roles differ within the service organization because the strategic roles are what does the planning and implementing of a process, whereas the functional roles are more of what needs to be done daily in order to run the organization. The strategic questions that need to be asked are:

Do we fully understand the specific type of service business we are in?
How can we defend our business from competitors?
How can we obtain more cost-efficient operations?
What is the rationale for our pricing strategy?
What process are we using to develop and test new services?
What acquisitions, if any, would make sense for our company?

It is the strategic roles to answer these questions and implement the solutions and/or answers. Now, the functional roles basically carry out these demands and help to reach goals. Functional roles are daily activities that are carried out to best service the business. For example, a restaurant knows and implements strategy on how they want every table to be handled from start to finish (creating strategy). Then, the functional roles come in and cater to the customers and their special needs in order to keep them satisfied.

References:

Thomas, D. R. (2014, August 01). Strategy is Different in Service Businesses. Retrieved fromhttps://hbr.org/1978/07/strategy-is-different-in-service-businesses

Post 2:

According to Lovelock and Wirtz (2011), service environments, or servicescapes, “relate to the style and appearance of the physical surroundings and other experiential elements encountered by customers at service delivery sites” (p. 255). Service companies have to intentionally create a viable servicescape bearing in mind that once it is designed and built, it will not be easy to change (Lovelock & Wirtz, 2011). There are strategic and functional roles of servicescapes that are embedded in the core purposes of creating a servicescape in the first place. The functional, or operational, side of the equation is best described by Davies (2011) as concerning itself with the development of a marketing mix that will “realize the set of defined business goals.” Davies (2011) goes on to describe the strategic side of the equation as concerning itself with “defining what the business needs to ‘be and become’ to consistently beat the competitors by delivering consistently better value.”

Depending on what the service is and who the target market is, the servicescape will need to tailored to that specific service and target market. A service organization may offer a variety of similar services with each one targeting a unique market; strategic and functional roles of the servicescape would differ for each service provided. Bitner (as cited in Han, Kang & Kwon, 2018) found that there are “three environmental dimensions: ambient conditions, spatial layout and functionality, and signs, symbols, and artifacts.” These dimensions will vary based on the service provided, the target market, and the business goals. The ambient conditions and signs, symbols, and artifacts are part of the strategic roles of servicescapes; spatial layout and functionality are part of the functional roles of servicescapes. For example, a massage company offers different types of massages as well as different levels for each massage. The design and layout in a massage room meant for an individual deep tissue massage will be different than that of a room meant for a couple’s massage and spa room. The differences can be subtle or overt, but either way, each room conveys a different feeling. The couple’s massage room is a higher level option that includes a spa experience, so the company may have luxurious bath robes, towels, and slippers as well as side-by-side massage beds, an area for pedicures and manicures, appropriate lighting and perhaps artwork with imagery of togetherness, love, etc. The individual room will have different lighting, a single massage bed, and artwork with imagery of solitude, relaxation, etc. These are examples of how the servicescapes can serve as differentiators (Chand, n.d.). Another example is the airline industry. The “package” that is presented and offered to business class customers is very different than what is presented and offered to economy class customers (Chand, n.d.). The strategic and functional roles of the servicescape for business class is luxury, comfort, space, and free extras. The strategic and functional roles of the servicescape for economy class is fair pricing, comfort, and extras that can be purchased while on the flight. The same company has to create different servicescapes for each of their offerings and the corresponding intended target market.

References

Chand, S. (n.d.). Service-scape: 4 Important roles of the Service-scape — Explained! Your Article Library. Retrieved from http://www.yourarticlelibrary.com/company/service-management/service-scape-4-important-roles-of-the-service-scape-explained/34079

Davies, S. (2011, September 28). What is Strategic Marketing in the Digital Age? Davies BDM. Retrieved from https://blog.daviesbdm.com/what-is-strategic-marketing

Han, J., Kang, H., & Kwon, G.H. (2018, March 13). A Systematic Underpinning and Framing of the Servicescape: Reflections on Future Challenges in Healthcare Services. International Journal of Environmental Research and Public Health. doi:10.3390/ijerph15030509

Lovelock, C. & Wirtz, J. (2011). Services Marketing: People, Technology, Strategy (7th ed.). New York: Pearson Education.