Page 29 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes All the players echo similar views. But it could be slightly unfamiliar territory. But for
LBS, its strength might be that it was in the beauty business for over a quarter of a century,
tracking the aspiring Indian woman; its weakness could be that it was foraying into
experience and services which were intangible and difficult to measure for quality and for
maintaining consistency.
Questions:

1. What advantages did Lakme Beauty Salons start with and what were its inherent
drawbacks?
2. Analyse the beauty industry completely, its opportunities and competition.

3. Enumerate the different rationale for Lever to extend its product brand to services.
4. How can LBS overcome the inherent drawbacks and disadvantages from its offer
characteristics?

5. “HLL turned over a ‘new leaf’”. Explain the significance and irony of the statement
with regard to brand HLL.

Source: ORG-MARG sales audit report
1.4 Summary

This unit attempts to give an overview of the functions in as simple manner as possible.
In stage four a return to roots can be seen, which not a bad thing is. This will add new depth
and grounding to the literature on service management.

In operations it will allow us and encourage us to undertake research and make strong
statements about things which we understand (quality, design and improvement, for
example).

But somehow we need to add this depth and focus without losing the richness that has
developed as different functional areas have come together to share areas of common
interest.

Services sector is playing the role of growth driver in many developed and developing
economies.
The value of service output in many economies crossed 50 per cent in GDP and such
economies became service economies.

If services output in the unorganised sector and the value of hidden service sector also are
taken in the GDP calculation, there may not be any economy in the world that cannot be
called as service economy. Services sector registering consistent growth over other sectors
of the economies.
The reasons for such growth are basically two fold. One is from the industry and the other
is forming the final consumers. Services growth supports manufacturing industry as well
as services sector for further growth besides providing quality life to the consumers.

Therefore, services sector is the engine for the growth and development of any economy.
The service sector in India has grown significantly during the last three decades.
The major reasons for growth are Economic Affluence, changing role of women, cultural
consciousness of healthcare, economic liberalisation, export potential, retail revolution
knowledge process out sourcing, and real estate and construction services year by year
service sector is improving its position in the economy and signaling tremendous growth
potential in future.

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