Evaluating Service Marketing Strategies: Virgin Trains Report

This report critically evaluates service marketing management approaches – process improvement, human aspects, and managing resource capacity – within the context of Virgin Trains. It examines the purpose, application, and limitations of each approach, considering how effective managem...Read More

Running head: SERVICE MARKETING
Service Marketing
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................2
Process Improvement:................................................................................................................3
Human Aspects:.........................................................................................................................6
Managing Resource Capacity:...................................................................................................8
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11
Appendix:.................................................................................................................................13

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Introduction:
The significance of the process improvement is perceived to be considerably high
amongst the companies operating in the contemporary world of business and one of the prime
factors that influence the companies in the same, is the increasing level of business
competition. As per the comments of Lohrmann and Reichert (2016), the concept of the
process improvement is regarded as the proactive actions that the companies are undertaking
for identifying, analysing and enhancing the quality of the business processes that they are
currently using. According to Page (2015), the process improvement is much needed for the
modern companies to operate in the intensely competitive business market. Page (2015)
further mentioned that the business environment is changing in a rapid manner with the
impact of globalization and in such situation, the business organizations are seen to face an
increased level of competition from the part of the competitor organizations. In order to
tackle the same, the business companies are facing the necessity to employ the most
productive and flexible processes and in such situation, the application of the process
improvement techniques enable the companies for identifying the faulty business processes
and recover them for the desired improvement in their performances. Other than this, the
efficient management of the human aspect from the part of the companies, places the
companies in a better position to tackle the demand of the market in a quality oriented
manner.
As per the comments of Milani, García-Bañuelos and Dumas (2016), the success of
the companies in managing the intense level of business competition in an efficient manner,
is seen to be dependent on their ability in managing the capacity of their resources in a
professional manner. In such situation, the management of the resource capacity from the part
of the modern business organizations is seen to hold a higher degree of success for the

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companies. The study is primarily based on the assessment of the impact of three different
service marketing management approaches such as the process improvement, human aspects
and the management of the resource capacity on the business activities of a selected
organization named as Virgin Trains. The study highlights the purpose, application and
limitations of the above mentioned approaches with a precise consideration towards the
business actions of the selected business entity.
Process Improvement:
Purpose:
It becomes important to understand the concept of Process Improvement for the
efficient elaboration regarding the contribution of the same in the improved management of
the business from the part of the company. As per the comments of Sallos, Yoruk and García-
Pérez (2017), the application of the process improvement initiatives places the companies in a
better position for analysing the faulty or unproductive processes and at the same time, it
increases the efficiency of the companies in identifying the processes are perfectly aligned
with the business demands their companies tae facing. Along with that, the process
improvement techniques enhances the ability of the companies in reducing the practice of the
faulty and unproductive business processes and increases the suitability of the business
processes in accordance to the demands of the business. The concept of Process
Improvement is represented in a more visible manner by Kocaoglu and Acar (2015) with the
claim that the process improvement is a certain methodology that fights against the dismissals
in the execution of the processes which leads to delays in the projects, decline in the
productivity and demoralizes the employees. As per the comments of Bakotic and Krnic
(2017), the process improvement is regarded as an ongoing process of business where it
identifies the tangible areas of improvement. According to the esteemed opinion of Nicholds

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and Mo (2016), the measurement of the success of the companies with the implementation of
the process improvement is conducted with an efficient evaluation of the product quality,
customer loyalty, productivity, customer satisfaction, improvement of the skills and expertise
of the employees, increment in the profit for ensuring faster return on investment.
Application:
Considering the case of of the chosen organization which is Virgin Trains, it is visible
that the process improvement from the part of the organization is expected to be associated
with considerable number of benefits for the selected organization. With a precise
consideration towards the business activities of the company, it is evident that the process
improvement will be significant for the success of the company when it comes to enhance the
quality of the services that the company offers. Being a transport service based company, the
organization has the necessity to improve their connectivity. With a close look at the business
actions of the company, it is understandable that the success of the company in increasing
their number of customers is dependent in expanding their presence. For the same, the
company is in need to develop efficient infrastructural presence and to expand their process
for increasing the strength of their connectivity.
Other than this, Virgin Trains is observed to face considerable number of issues in
ensuring the smooth management of their operational activities. The digital signalling system
that the company uses, is seen to be the main reason that limits the organization from
achieving optimal efficiency in relation to the smooth arrival and departure of the trains in the
destination stations (Turton 2020). As a result, the company is observed to be placed in a
vulnerable position in tackling the challenge of the accidents caused from the malfunctioning
of the signalling system. With the efficient management of the process improvement
activities, the company has the scope to improve to assess the faulty parts and procedures of

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their signalling system. At the same time, this will play a crucial role for the organization in
enabling the company for the desired incorporation of the technology and the innovative
processes in the signalling system. As a result, the desired incorporation of the technological
and innovative solutions in the control procedures of the company will certainly increase the
ability of the company in tackling the challenge of accidents. Other than this, the dependence
of the company on the ticketing system and the communication activities is observed to hold
a high degree of success for the organization and that is visible with the increasing usage of
the customers. As the modern transportation industry is largely influenced with the usage of
technology, the continuous advancement of the technology places the companies towards
repetitive changes in their processes.
With a detailed consideration towards such a fact, it becomes important for the
companies to continuously enhance the quality of their processes. Virgin Trains with their
ticketing system and the channels of communication faces such a necessity of improving their
processes. The efficient execution of the process improvement related activities has the
potential to place the company in a suitable position for identifying the factors that restrict the
ability of the company in conducting a sustainable business. The implementation of the
process improvement tactics enhances the ability of the company to conduct their customer
interaction activities and customer query handling in a more professional manner. Along with
that, the utilization of the new techniques related to the ticket booking system enhances the
ability of the company in achieving the desired accuracy and efficiency in managing their
ticketing activities.
Having said that it becomes important to identify the techniques that can be applied
for the process improvement in the company. The process improvement at Virgin Trains can
be managed with the execution of different techniques such as Kaizen, 5S model. PDCA
cycle, Sig Sigma, Cause effect Analysis or Total Quality Management. According to the

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comments of Kumar, Dhingra and Singh (2018), Kaizen has the potential to place the
company in a comfortable position for continuously improving their performances with
strong emphasis on the agile and lean practices. The 5S model has the capability to introduce
the desired consistency in the process improvement and standardize the process improvement
in an efficient manner. The PDCA cycle has the ability to provide the desired scope to the
company for identifying the challenges that they are facing, formulating a suitable solution
for resolving the same, the evaluation of the effectiveness of the solution and implementation
of the solution in a professional manner for the desired improvement in their processes.
Along with that, the cause and effect analysis increases the ability of the company to identify
the causes of their issues and the possible consequences of the same on the company in
managing the desired process improvement. Other than this, the Total Quality Management
has the ability to influence the organization in focusing on gathering long term success
through enhancing the customer satisfaction.
Limitation:
However, the primary limitation with the execution of the process improvement
activities, is the requirement of the substantial amount of monetary investment.
Human Aspects:
Purpose:
With a close look at the business actions of the company and the role of human
resources in the same, it is visible that though the company is trying their level best to
incorporate the automation in their services, a large section of the operational activities of the
company is managed by the employees of the company. The company is seen to utilize
human efforts for a range of activities which includes the ticketing booking, customer
interaction and query handling, train driving, maintenance of the signalling system along with

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the maintenance of the infrastructure utilized for the services (Virgintrains.co.uk. 2020). In
managing these activities, the success of the company is primarily dependent on the skills and
expertise level of the employees. As per the comments of Hanaysha (2016), the companies
that are operating in the transportation industry put strong emphasis on reducing the service
errors as the same has considerable amount of detrimental consequences. With a detailed
consideration towards the mentioned fact, the companies working in the transportation
industry, have special consideration towards the continuous improvement of the skills and
expertise of their employees.
According to the comments of Chen (2017), majority of the modern transportation
industry based companies are conducting substantial amount of investment for setting up the
desired infrastructure which can provide an accurate scope to the employees for their desired
professional improvement. As a result, the companies achieve a much required breathing
space from the detrimental impact of the reputational damage which can take place with the
increment in their service errors. With a detailed consideration towards the significance of the
human resources in the management of the business actions of Virgin Trains, it is
understandable that the continuous professional development of their employees has the
capability to place the company in a better position in enhancing the quality of the services
that they offer to their customers. Along with that, Muñoz de Bustillo, Grande and
Fernández-Macías (2016) mentioned that the efficient maintenance of the work- life balance
from the part of the employees who are working in the transportation industry, is much
required for continuously enhancing their efficiency and to ensure they are not committing
repetitive service errors as a result of their work stress or fatigue. Having said that, Erkmen
and Hancer (2015) mentioned that the companies that work in the transportation industry
have a massive role to play in ensuring that the employees get the desired period of rest.

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Application:
Considering the expanded areas that Virgin Trains covers, the pressure of business
demands on their employees is also pretty substantial. In such situation, the company is
required to undertake certain precautionary measures for tackling the business challenge with
includes scientific and appropriate distribution of the operational activities on the employees
of the company, initiation of the employee engagement activities amongst the employees and
providing a sufficient period of rest to the employees of the company. Other than this, the
efficient management of the employment relations from the part of the company is much
requires to manage human aspect of their business. The formation of the wage and work time
characteristics of the employees as per the industry guidelines, the provision of rewards for
recognizing the additional efforts of the employees working for the selected organization, the
appropriate management of the workplace health and safety requirements of the employees of
the company are observed to have greater significance for the company in managing the
human aspect of their business actions. As a result, the success of the company in managing
the activities associated with the employment relations in a professional manner is crucial
increasing the quality of their services.
Limitation:
The limitation that the company faces in managing the human aspect, is the lack of
appropriate funding for initiating the employee engagement activities.
Managing Resource Capacity:
Purpose:

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The company is observed to have conduct an efficient business through managing
their tangible and intangible resources in a professional manner. The efficient management of
the resource capacity is crucial for the success of the organization as it prepares the company
for the sustainable management of their business. According to the comments of Mehmood et
al. (2017), there are several purposes for the management of the resource capacity such as the
resource utilization, cost controlling, improvement of efficiency, problem identification and
elimination of the same in an effective manner. According to the comments of White (2016),
the ability of the companies in efficiently assessing their resource capacity is considered to be
crucial for the success of the company in utilizing the resources in a professional manner. The
objective for the companies with the resource capacity evaluation and the utilization of the
resources, is to ensure that the companies achieve greater revenue with the consumption of
the least amount of resources.
Application:
With a detailed consideration towards the operational activities of the company, it is
evident that the organization has collaborated with Box for the management of their resource
capacity. With the formation of the association with Box, the company is successful in
achieving stable resource management. The association is playing a crucial role in enabling
the employees to access the information from any of their devices so that it provides the
desired flexibility to the employees in managing their operational activities in a more
effective manner. In addition to this, one of the prime requirements for the company’s ethical
and secure business actions is the digital security. The association of the company with Box
provides extra level of digital security and encryption for the safe and secure management of
the information from the part of the company and the users of the same (WIRE 2020). In
addition to this, the collaboration of the company with Box played a massive role in utilizing
the infrastructure of the company in enhancing the level of the customer satisfaction which is

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prominent with the fact that the company uses the workflow capability of Box for the purpose
of introducing the Onboard Entertainment System (WIRE 2020).
Limitation:
The limitation of managing resource capacity is the development of substantial
amount of infrastructure.
Conclusion:
On an ending note, the company is seen to manage a stable business doings in UK.
The expansion to new routes and the increment in the revenue of the company portrays the
success of the company in managing their business in a successful manner. However, the
company requires to improve their processes for the betterment of the signalling system, the
customer communication activities and for the improvement of the human aspect of their
business. In addition to this, the company has the necessity to improve their infrastructural
strengths for the desired improvement in the management of their resource capacity.

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References:
Bakotic, D. and Krnic, A., 2017. Exploring the relationship between business process
improvement and employees’ behavior. Journal of Organizational Change Management.
Chen, B.T., 2017. Service innovation performance in the hospitality industry: The role of
organizational training, personal-job fit and work schedule flexibility. Journal of Hospitality
Marketing & Management, 26(5), pp.474-488.
Erkmen, E. and Hancer, M., 2015. Linking brand commitment and brand citizenship
behaviors of airline employees:“The role of trust”. Journal of Air Transport Management, 42,
pp.47-54.
Hanaysha, J., 2016. Examining the effects of employee empowerment, teamwork, and
employee training on organizational commitment. Procedia-Social and Behavioral Sciences,
229(298-306), pp.298-306.
Kocaoglu, B. and Acar, A.Z., 2015. Developing an ERP triggered business process
improvement cycle from a case company. Procedia-Social and Behavioral Sciences, 181,
pp.107-114.
Kumar, S., Dhingra, A.K. and Singh, B., 2018. Process improvement through Lean-Kaizen
using value stream map: a case study in India. The International Journal of Advanced
Manufacturing Technology, 96(5-8), pp.2687-2698.
Lohrmann, M. and Reichert, M., 2016. Effective application of process improvement patterns
to business processes. Software & Systems Modeling, 15(2), pp.353-375.
Mehmood, R., Meriton, R., Graham, G., Hennelly, P. and Kumar, M., 2017. Exploring the
influence of big data on city transport operations: a Markovian approach. International
Journal of Operations & Production Management.

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Milani, F., García-Bañuelos, L. and Dumas, M., 2016. Blockchain and business process
improvement. BPTrends newsletter (October 2016).
Muñoz de Bustillo, R., Grande, R. and Fernández-Macías, E., 2016. Innovation and job
quality. An initial exploration. Quinne Working Paper 5-1.
Nicholds, B.A. and Mo, J.P., 2016. Estimating performance from capabilities in business
process improvement. Business Process Management Journal.
Page, S., 2015. The power of business process improvement: 10 simple steps to increase
effectiveness, efficiency, and adaptability. AMACOM.
Sallos, M.P., Yoruk, E. and García-Pérez, A., 2017. A business process improvement
framework for knowledge-intensive entrepreneurial ventures. The Journal of Technology
Transfer, 42(2), pp.354-373.
Turton, A. 2020. Signal fault brings train disruption between West Midlands and London.
[online] Expressandstar.com. Available at:
https://www.expressandstar.com/news/transport/2019/10/17/train-cancellations-bring-
disruption-for-passengers-between-west-midlands-and-london/
Virgintrains.co.uk. 2020. Buy train tickets, check fares and times - Virgin Trains. [online]
Available at: https://www.virgintrains.co.uk/
White, P.R., 2016. Public transport: its planning, management and operation. Routledge.
WIRE, B. 2020. Virgin Trains Chooses Box to Power Staff Cloud Content Management.
[online] Businesswire.com. Available at:
https://www.businesswire.com/news/home/20170518005090/en/Virgin-Trains-Chooses-Box-
Power-Staff-Cloud

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Appendix:
Company Overview:
Virgin Trains is regarded as one of the top most train operating company.
The company operates with the legal name of West Coast Trains Limited.
The parent organization of Virgin Trains is Virgin Rail Group which is a joint venture
between Virgin Group and Stagecoach.