Question

Classify the following organizations as professional service firms, mass service entities, or service shops. In each case, explain the reasons for your classification. 1. One-stop shop providing public assistance with a range of government services, including the issue or renewal of drivers’ licenses, business licenses, and senior citizen concession cards. 2. Bus and coach company providing daily intercity express services. 3. Dental practice staffed by three dentists who specialize in orthodontic work. 4. Bicycle repair workshop. 5. Financial planning practice. 6. Airline company.

Answer 1

1. It is Professional Service as it provides services according to the need or situation of each and every customers.

3. Professional Services as it provides medical services to the clients.

4. Bicycle repair workshop are classified into Service Shops as it provides maintenance work to the customers.

5. Financial planning practice is classified into Professional Services as it provides its expertise financial knowledge to the clients.

6. Airline company as classified as Mass Service as it has low customer contact and high labour intensity cost.