In Chapter 3 we looked at five major characteristics of services that distinguish services from manufacturing. Can you relate them to the provision of a haircut?
Consider how the factors intangibility, simultaneity, perishability, no transfer of ownership and heterogeneity apply to the various services that you use: public transport, your bank account, meals in restaurants, the postal service, your annual holiday and so on.
A service business has collected some figures relating to its year just ended.
|
|
Budget
|
Actual
|
|
Customer enquiries:
|
New customers
|
6,000
|
9,000
|
|
|
Existing customers
|
4,000
|
3,000
|
|
Business won:
|
New customers
|
2,000
|
4,000
|
|
|
Existing customers
|
1,500
|
1,500
|
|
Types of services performed:
|
Service A
|
875
|
780
|
|
|
Service B
|
1,575
|
1,850
|
|
|
Service C
|
1,050
|
2,870
|
|
Employees:
|
Service A
|
5
|
4
|
|
|
Service B
|
10
|
10
|
|
|
Service C
|
5
|
8
|
Required
Calculate figures that illustrate competitiveness and resource utilisation.
Text Book: Economic and Financial Analysis for Criminal Justice Organizations By Daniel Adrian Doss, William H. Sumrall III, David H. McElreath, Don W. Jones.