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Chapter 10
Globalization of Services
Chapter 10
Globalization of Services
PAGE 170
PAGE 159
158
CHAPTER 10
GLOBALIZATION OF SERVICES
TEACHING NOTE
Successful service innovations involve two fundamental growth strategies: (1) duplication of the service in different geographical locations with multiple sites called a focused network strategy or (2) incorporation of new services at the original site, which results in offering a group of multiple services called a clustered service strategy. Some services combine both approaches and create a diversified network. Franchising is a common method to implement a multisite strategy that uses the entrepreneurial spirit of investors. The responsibilities of both the franchisee and franchiser are discussed in the context of a super organization. In todays borderless world, service firms find that a global presence is necessary because no domestic market is secure from competition. A discussion of the considerations in planning multinational operations includes: cultural transferability, network development, and host-government policy. The chapter concludes with seven global service strategies including offshoring services.
SUPPLEMENTARY MATERIALS
Case: Cleveland Clinic (HBS: 607143-PDF-ENG)
Cleveland Clinic is consistently ranked among the nations most eminent hospitals, and for decades has been a leader in pioneering cardiac care. Explores the methods, processes, and personnel that the hospital has cultivated over the years in order to develop its track record of excellence. In light of this, three expansion opportunities are explored and the operational fit of each is investigated. (expansion, service innovation, service delivery, healthcare).
Case: Four Seasons Goes to Paris (HBS: 803069-PDF-ENG)
Illustrates how Four Seasons manages hotels in countries with strong and distinct national cultures. Focuses on how the chain meets its exacting service standards in a variety of settings worldwide, with special attention
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