TOM 453 chapter 1 notes

TOM 453 chapter 1 notes - The Role of Services in an...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Role of Services in an Economy Economy Service Definitions Service Perishable a Intangible a Output is not a physical product a Created and used simultaneously a Types of Services Types Business Services e.g., consulting, auditing, Business advertising advertising a Infrastructure Services e.g., communication, Infrastructure transportation, utilities transportation, a Personal Services e.g., health care, Personal restaurants, child care restaurants, a Government Services e.g., military, Government education, public safety education, a Economic Evolution Economic From manufacturing-based to service-based a Early 1900s, 30% of total employment was Early in the services sector in a Now, it is about 81% (Source: Bureau of Now, Labor Statistics – latest figures are for 2009) a Stages of Economic Development Development a Preindustrial society • agriculture, mining, fishing • low productivity, low technology a Industrial society • goods production • division of labor, use of machines a Postindustrial society • services • quality of life, information technology Trends in Services Trends ‘Experience’ economy (e.g., Rainforest Experience’ Café) Café) a Social trends (e.g., aging population, growth Social of two-income families) of a Employment Projections: 2008 to 2018 From U.S. Bureau of Labor Statistics, From Occupational Outlook Handbook, 2010Occupational 2011 edition a Most rapid growth a • Professional and service occupations a Most rapid decline • Agriculture / Production occupations Agriculture Largest Service Companies Largest Fortune 100 companies (based on annual Fortune revenue) revenue) a 2010 list (based on 2009 financial info) a Which service firms do you think would be on the list? on Fortune 100 Service Companies Fortune a Wholesale / Retail / Grocery • • • • • • • • • Wal-Mart (1) CVS (18) Kroger (23) Costco (25) Home Depot (29) Target (30) Walgreen (32) Lowe’s (42) Best Buy (45) Fortune 100 Service Companies Fortune a Financial / insurance services • • • • • • • • • • • • Bank of America (5) J.P. Morgan Chase (9) Citigroup (12) AIG (16) Wells Fargo (19) State Farm (34) Goldman Sachs (39) MetLife (51) Aetna (63) New York Life Insurance (64) Prudential (65) Allstate (68) Fortune 100 Service Companies Fortune a Communications / entertainment / software • • • • • • AT & T (7) Verizon Communications (13) Microsoft (36) Walt Disney Co. (57) Sprint Nextel (67) Time Warner (82) Fortune 100 Service Companies Fortune a Logistics / transportation • • a UPS (43) FedEx (60) Health • • • Cardinal Health (17) UnitedHealth (21) Medco Health (35) ...
View Full Document

This note was uploaded on 10/19/2011 for the course TOM 453 taught by Professor Kumar during the Spring '11 term at Cal Poly Pomona.

Ask a homework question - tutors are online