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| Author: | Larsen, E. Ackere, A. van Warren, K. |
| Title: | The growth of service and the service of growth: using system dynamics to understand service quality and capital allocation |
| Journal: | Decision Support Systems
1997 : APR, VOL. 19:4, p. 271-287 |
| Index terms: | DECISION SUPPORT SYSTEMS GROWTH SERVICE QUALITY |
| Language: | eng |
| Abstract: | This paper discusses how system dynamics can help understand a service company's growth potential as well as its limitations. The model discussed here is being built for a European restaurant chain which grew from nothing to over 200 outlets in less than a decade. The model highlights two conflicting pressures: the need to spend on meeting customer expectations and hence build sales versus the need to meet profit targets from headquarters and thus win the capital to fund expansion. |
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