1. What issues are raised by this case in relation to the formulation of a service operations strategy?

Answer: This example raises interesting questions relating to service strategy. Must successful services be highly focused in the market? Is there a general move towards service factories? In this example it would appear that marketing and operations strategy may be one of the same. Also, the activities of people management, marketing and operations management as functional management topics is being blurred. Service management crosses incorporates elements of all of these subject areas.