The Service Industry

Use single-spaced and font 11. The maximum length of the document is 5 pages excluding bibliography and appendices. Submitting a document of the maximum length is neither necessary nor sufficient for a high mark. 1. A service is an intangible (e.g. a haircut or hotel stay). Pick any service as long as you can answer questions 2, 3, 4, and 5. Use half a page or less. [10 marks] a) Describe a service that you bought in the last twelve months. b) When did you buy it? c) Where did you buy it? d) From which company did you buy it? (It has to be from a company, not from an individual.) e) How much did you pay? If applicable, provide the amount in the original currency and the equivalent in British pound. f) On a scale of 1 (low) to 10 (high), how satisfied are you with your purchase. Why? 2. For the service that you picked for question 1, answer these questions about an industry analysis. Explain each of your responses. [25 marks] a) Who are the relevant players? b) What is the weakest force? c) What is the strongest force? d) From the perspective of an incumbent, how attractive is the industry on a scale of 1 (low) to 10 (high)? e) From the perspective of an incumbent, will the industry’s attractiveness increase / decrease / stay the same over the next five years? 3.  For the service that you picked for question 1, answer these questions about an industry analysis. Explain each of your responses. [25 marks a) Who are the relevant players b) What is the weakest force? c) What is the strongest force? d) From the perspective of an incumbent, how attractive is the industry on a scale of 1 (low) to 10 (high)? e) From the perspective of an incumbent, will the industry’s attractiveness increase / decrease / stay the same over the next five years. 4. For the service that you picked for question 1, choose a different but related industry, and one that the company you bought the service from is not active in, and answer these questions related to diversification. [20 marks] a) Briefly describe the related industry. b) Draw the value chains for the company you bought the service from and for a typical company in the related industry. You may choose a level of abstraction as Page 5 of 8 in the S5 asynchronous video (“Step 1: Finding synergies”) instead of in the S3 asynchronous video (“Value chain activities – What are they?”). No need for a description as long as the steps in your value chains are clearly labelled. c) What synergies exists between the company you bought the service from and a typical company in the related industry? Explain. 5. Answer these questions about divestiture. Assume a company is active in the industry picked in question 1 (“focal industry”) and the related industry chosen in question 4 (“related industry”). Explain each of your responses. [20 marks a) Under what conditions, would a company exit from the focal industry using a selloff. Be specific. b) Under what conditions, would a company exit from the focal industry using a spin-off. Be specific This assignment contributes towards the achievement of the following stated module Learning Outcomes as highlighted below:  Describe the business model of a company  Conduct a competitive analysis of an industry  Suggest a value innovation for a company  Select among alternative diversification moves Select among alternative divestiture moves