Author Description
Managing Service as a Strategic Profit Center shows you how service operations can be a highly profitable line of business, either on a stand-alone basis or as a key part of a manufacturing or distribution business. When run strategically, a service operation can generate profit margins of 25% to 35% or more (pretax), with a return on investment of 50% to 80% or more annually! This innovative guide by Donald Blumberg explains how to: manage service strategically, using advanced financial and accounting concepts; position, market, and sell service; price service using value-in-use pricing strategies; use advanced technology and systems to direct and deliver service in an efficient, cost-effective manner; discover new strategic service opportunities.
Menrva's Summary
THE THESIS
This book investigates how service operations can be transformed from a cost center into a high-margin strategic profit center within manufacturing and distribution organizations. Donald F. Blumberg, an expert in service management, utilizes financial modeling and operational analysis to demonstrate that service divisions can achieve pretax profit margins between 25% and 35%. The text provides a framework for integrating service into the broader corporate strategy to maximize return on investment.
THE SCOPE MAP
What You Will Find
- Financial and accounting models for service profitability
- Value-in-use pricing strategies
- Methodologies for positioning and marketing service offerings
- Technological integration for service delivery efficiency
Scope Limits
- The text focuses primarily on industrial and manufacturing service contexts rather than pure service-sector businesses.
- It does not cover human resources or organizational culture management in depth.
THE AUTHORITY PERSPECTIVE
Professionals in operations management frequently cite this work as a foundational text for understanding the financial mechanics of service-based business models. Experts highlight the author's focus on quantitative metrics as a practical tool for managers seeking to improve bottom-line performance.
Page Count:
232
Publication Date:
1991-01-01
Publisher:
McGraw-Hill
ISBN-10:
0070061890
ISBN-13:
9780070061897
Business
Marketing
Service Operations
Management
Strategic Planning
New Used & Rental Textbooks
Finance