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Challenge For A Service Organization

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A Challenge to a Service Organization
Leona English
SRV 340
Ashford University
Instructor Fritzenkotter
January 6, 2016

Challenge to a Service Organization
Defining Service There has to be an understanding of the complexity of services before one can begin to determine what challenges face the service industry and the most efficient means of facing those challenges to maintain success. A service organization provides intangible services for a monetary value as perceived by the consumer (Lovelock & Wirtz, 2011). A simple definition is that there are no physical items exchanged in a service transaction as opposed to retail where an item is given in exchange for a predetermined price point. This paper will provide …show more content…

Bureau of Labor Statistics (Service Organizations, n.d.), almost 100 percent of the new jobs between 1990 through 2002 were in the service industry. The forerunners of service organizations were health and wellness, human and social services and staffing agencies.
Slow Economic Times and the Service Industry While some industries flounder during slow economic times, the service industry, typically will not have the significant difficulties. Service organizations such as medical related fields, waste collection, and funeral homes are a few examples that will continue business as usual (Beattie, n.d.). Consumer demand remains constant in fields due to, in part; medical care, garbage disposal and funerals are daily activities in society. These industries may flourish during times of disease epidemics such as influenza and natural disasters such as hurricanes and flooding. (Service Organizations, n.d.). Locations that are prone to circumstances such as tornados in the central plains region of the United States which include Oklahoma, Missouri, Kansas and parts of Texas may have seasonal increases in the healthcare, waste management and interment fields (Carbin & Schaefer, 2009). In comparison, services that do well or may even increase during a recession include higher-education and technology organizations (Service Organizations, n.d.). For example, in a

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