Q 2 what are the five powerful forces transforming the service landscape and

Q 2 what are the five powerful forces transforming

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Q 2: what are the five powerful forces transforming the service landscape and whatimpact do they have on the serious economy?Many forces are transforming our economies, making them more services-oriented. Theyinclude: Government policies:Changes in regulations (Ban on smoking in restaurants, whichimproved customer comfort). Governments establish many regulations and policies thatguide businesses. Some rules, like minimum wage, are mandatory, while other policiesmay influence your business indirectly. Businesses need to be flexible enough to respondto changing rules and policies. This is true not only at the national level but more locallyas well, as states and municipalities have their own sets of rules. Indeed, there are alsointernational treaties that can influence the way companies do business. Governmentpolicy can influence interest rates, a rise in which increases the cost of borrowing in thebusiness community. Higher rates also lead to decreased consumer spending. Lowerinterest rates attract investment as businesses increase production. The government caninfluence interest rates in the short run by printing more money, which might eventuallylead to inflation. Businesses do not thrive when there is a high level of inflation.Social changes:rising consumer expectations of service quality and convenience- whichhas resulted in service staff being trained to deliver good service). Significant socialchange occurs when a population shifts from one life stage to another. For example, ifyou do business in an area that sees an influx of children, the priorities of many in thecommunity, and many of your customers, will change. Couples with children watch theirbudgets and change the hours they shop, dine, play and do other activities. Parents aremore likely to vote for school bonds, decreasing the burden on businesses to fund these.If your area experiences an influx of new parents, consider adding photos of couples withkids in your advertising and on your website. Sponsor youth sports leagues or scouttroops to generate brand loyalty among parents. Conversely, if your marketplace is aging,conduct focus groups of older customers to see if you can determine how your currentcustomer base might see you in a few years. An upscale restaurant that’s been catering toyoung couples but is seeing its area increase in age can begin adding healthier meals to itsmenu, toning down the loud, live music and offering more group and party packages.Business trends:Growth of “franchising – chains” face the challenge of maintainingconsistent service standards worldwide). The economy has the ability to impactbusinesses in ways both good and bad. Ironically, good impacts can occur during badtimes and vice versa. For instance, during a weak economy the travel industry may sufferwhile the home improvement sees a spike in sales as more people decide to engage in do-it-yourself projects rather than hiring contractors or buying new homes. Businesses needto be alert to shifts in the economy so they can take advantage of unexpectedopportunities and react to unexpected threats.
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Advances in Information Technology:Growth of the net-new services are created togather various sources of info and repackage to provide value to customers). The spread
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