Organizing Work in Service Firms Harvard Case Solution & Analysis

The cornerstone of an industrial practice to separate the complex tasks into simple for economies of scale, and in practice, the service sector followed by the change of the separation of high and low activity of contact with the customer, to cut costs. Low contact activities are removed from the front office jobs, standardized and centralized in some remote back-office to achieve economies of scale. Here the authors to question this principle, the choice of how to organize the back office provides strategic implications. Their model provides four approaches illustrating different strategies based on research of retail lending operations of the bank and, using examples from other service industries. Isolation of front-and back-office operations depends not only on cost, but whether the service strategy of the company is one of cost leadership, dedicated service, additional services, or cheap convenience. Every single strategy is a different set of trade-offs and important management issues. Isolation can be avoided cost savings, or adopted to improve responsiveness in the front office. "Hide
by Richard Metters, Vicente Vargas Source: Business Horizons 10 pages. Publication Date: July 15, 2000. Prod. #: BH051-PDF-ENG

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