Service Science
Links Service Management Simulation
This document should be used as reference for any questions about the course. Please read
the document to get a better understanding of what is needed from you to be successful in
the course.
Anders Gustafsson, Poja Shams, Claes Högström, Jörg Pareigis
2011-10-31
Welcome to Service Science and Links simulation! 3
Practical issues 4
Teachers involved in the course: 4
Access to Links simulation 4
Links course outline 5
Grading 9
Links Performance 10% 9
Multiple Choice Quiz on Links Manual 10% 10
Midterm & SWOT Presentation 10% 10
CEO meetings and PM presentation 30% 13
The Final Report & Presentation 40% 14
2
Welcome to Service Science and Links simulation!
This course is primarily focused on the Links simulation software.
The LINKS Services Management Simulation is a sophisticated, competitive, team-based services management simulation. LINKS firms market
and deliver “support services” (e.g., computing/IT support, financial management, health care, repair, or maintenance services) to households
(consumers) and major accounts (businesses) in multiple market regions. Each simulation round is approximately equivalent to a large Harvardstyle case study in terms of analysis, individual preparation, team meeting and discussion, and student time requirements. You will be divided
into 6 teams, with 5 service managers (students) per team. Each team will be a firm in the industry. You will all compete in the same industry.
LINKS engages participants in all aspects and challenges of services management:
Human Resources: hiring, firing, retaining, deploying, and compensating service personnel
Marketing: segmentation, market selection, differential advantage, marketing mix decisions, service design, and portfolio management
Service Operations: technology, productivity, capacity management, forecasting, and service quality management
A range of research study resources are available to LINKS firms, including service quality metrics, employee and customer satisfaction surveys,
competitive benchmarking studies, and retention statistics. LINKS firms are challenged to effectively integrate business processes to create value
for customers and shareholders. LINKS highlights the interrelationships among marketing activities, organizational capabilities, and service
operations (human resource management and technology), while enhancing and challenging participants’ management, analysis, planning, and
strategy skills. Management teams also encounter challenges and opportunities arising in organizational and group settings. These management
considerations are as important as analysis and decision making skills in achieving success in LINKS.
Learning Emphases
· Developing and executing a value-creating strategy for customers
· Crafting an effective marketing program to communicate value to customers
· Matching demand and supply (capacity) in a competitive environment
· Managing service quality and technology
· Managing service personnel (staffing, deployment, and compensation)
· Interpreting business performance metrics (e.g., employee job satisfaction and customer satisfaction survey data)
· Enhancing and encouraging fact-based analysis and decision making
· Experiencing competitive dynamics in an evolving marketplace
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Practical issues
Teachers involved in the course:
Professor Anders Gustafsson
[email protected], room 11A 325 (CEO groups 1 and 2)
Poja Shams
[email protected], room 11D 305 (CEO groups 3 and 4)
Claes Högström
[email protected], room 11D 361 (CEO groups 5 and 6)
Jörg Pareigis
[email protected], room 11D 386
Access to Links simulation
When you are registered in the simulation software, you will receive an access code. This access code can then be used to log in to your firm and
make adjustments. However, you may freely access, download, and print the participant's manual for LINKS at any time via the LINKS website
(http://www.LINKS-simulations.com). Thus, you may access the LINKS participant's manual, and begin reading it, before the registration
process.
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Links course outline
Week 45 November 7th to 11th
Tuesday Wednesday Thursday Friday
Week
Day
Lecture
Monday
Assignment
Read Links manual/Review of reports from first quarters of simulation
Links Activity
Start the industry
Links
Switches
Meeting with
CEO
Marketing decisions = off/Service design=off
Literature Introduction/Links basic introduction/ Access and Login
information/Links team formation/Collection of email addresses (Poja
Shams)
Meeting 1
Week
Day
Lecture
Monday
Assignment
Lovelock & Wirtz Chapter
4-5
Links Activity
Links Switches
PM 1-Presentation of overall
strategy for your company.
4th quarter input end at 22:00
(16:00-US EST)
Week 46 November 14th to 18th
Tuesday Wednesday
Thursday
Friday
Links lecture on research reports (Jörg
Pareigis)
PM 2Results of quarter 4 and actions taken for
quarter 5.
5th quarter input end at 22:00(16:00-US EST)
Marketing decisions =
on/Service design=on
Meeting 2
Meeting with
CEO
5
Week
Day
Lecture
Monday
Assignment
Lovelock & Wirtz
Chapter 6-7
Tuesday
Week 47 November 21th to 25th
Wednesday
Thursday Friday
Quiz on Links user
manual
Links Activity
PM 3Results of quarter 5 and actions taken
for quarter 6.
6th quarter input end at 22:00(16:00-US
EST)
PM 4Results of quarter 6 and actions taken
for quarter 7.
7th quarter input end at 22:00(16:00-US
EST)
New service
introduction
Links Switches
Meeting 3 (Optional)
Meeting with
CEO
Week
Day
Lecture
Monday
Assignment
Lovelock & Wirtz
Chapter 8-11
Links Activity
Week 48 November 28th to December 2nd
Tuesday Wednesday
Thursday
Friday
Midterm presentation of SWOT-analysis (Poja
Shams, Claes Högström & Anders Gustafsson)
PM 5Results of quarter 7 and actions taken
for quarter 8. SWOT-analysis.
8th quarter input end at 22:00(16:00-US
EST)
New region
introduction
Meeting 4
(Optional)
Links Switches
Meeting with
CEO
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Week 49 December 5th to 9th
Wednesday Thursday
Week
Day
Lecture
Monday
Tuesday
Assignment
Lovelock & Wirtz
Chapter 12-14
PM 6Results of quarter 8 and actions taken
for quarter 9.
9th quarter input end at 22:00(16:00-US
EST)
Links Activity
Friday
PM 7Results of quarter 9 and actions taken
for quarter 10.
10th quarter input end at 22:00(16:00-US
EST)
Links Switches
Meeting 5
(Optional)
Meeting with
CEO
Week
Day
Lecture
Assignment
Links Activity
Links Switches
Meeting with CEO
Week 50 December 12th to 16th
Monday
Tuesday
Wednesday
Thursday
Friday
Lovelock & Wirtz Chapter 15
Final Report
Final Report
Final Report
Final Report
11th quarter input end at 22:00(16:00-US EST)
Meeting 6
7
Week
Day
Lecture
Monday
Tuesday
Week 51 December 19th to 23rd
Wednesday Thursday Friday
Final Report and Presentation (Poja
Shams, Claes Högström & Anders
Gustafsson)
Final Report
Assignment
Links Activity
Links Switches
Meeting with
CEO
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Grading
Grading Elements
Grading Basis Grading Weight
Links Performance
Team-Based
10%
Multiple Choice Quiz on Links Manual Individual
10%
Midterm & SWOT Presentation
Team-Based
10%
Links PM
Team-Based
30%
Final Report & Presentation
Team-Based
40%
In total, a maximum of 100 points could be achieved on the course; 10 points for the Links Performance, 10 points for the midterm assignment
and presentation, 10 points for the individual quiz performance, 30 points for the PMs, and 40 points for the final report and presentation. The
total points needed to achieve a certain ECTS credit is shown below:
ECTS
A
B
C
D
E
F
Total points
85
75
65
55
50
Complementary work required to pass
Links Performance 10%
This grade is based on performance from the team, industry and with
comparison to previous firm. From the team, students are graded on how
well they have performed in improving/sustaining the growth of company.
Important key factors are KPI (key performance indicators). Within the
industry, students are graded on how well they have performed in
competition with the other teams. The teams will also be graded on how
well they have performed compared to data from 540 other game runs, as
seen in the chart.
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Multiple Choice Quiz on Links Manual 10%
To examine the individual knowledge of the course participants a multiple choice quiz will be handed out to the students. The best way of
scoring high on this part of the course is to study the links manual. We strongly recommend that you read the manual before taking the quiz. The
questions will be based on the different parts of the simulation. The following are some sample questions:
Your firm may choose to invest in telecommunications systems that directly support CSR service delivery. Such telecommunications systems can provide
sophisticated call handling capabilities, efficiently distributing customer calls to CSRs at peak call volume periods, automated voice response (AVR), and
menu-driven customer requests. If your firm chooses telecommunications systems support (TSS), which of the following statements is false?
(A) Separate TSS IT decisions must be made in each LINKS market region.
(B) If engaged, TSS charges only apply to CSRs assigned to the TSS division in any region.
(C) When you first initiate TSS in a region, you incur a onetime charge in each market region in which TSS is initiated.
There is an additional charge per CSR in each subsequent quarter in which telecommunications systems support is active.
“Our current-round unfilled orders represent customers who are waiting to repurchase our set top-box product. They are back-logged sales orders and they
are guaranteed thing in the next round!”
(A) This statement is false.
(B) This statement is true.
Midterm & SWOT Presentation 10%
The midterm will include a SWOT-analysis and an oral presentation of the SWOT-analysis. For the oral presentation, each team will be allocated
15 minutes of time for the presentation and subsequent question-and-answer period. Think in terms of a 10 minute presentation followed by 5
minutes of Q&A. Please rehearse your presentation to ensure that it falls within the time limit. The written part of the SWOT-analysis will be
turned in as a part PM-5 and your strategies in PM-5 should reflect your SWTO-analysis results. For the written part of the SWOT-analysis,
summarize your business and competitive situation (at this point in time in your LINKS event) in terms of strengths, weaknesses, opportunities,
and threats. Be realistic about the strengths and weaknesses of your firm when conducting SWOT-analysis. The analysis should distinguish
between where your firm is today, and where it could be in the future. Try to be specific in your description. When writing your SWOT, have
your competition in mind and don’t make it to complex and over analyzed. The SWOT must be short and no more than 1000 words. The SWOT
analysis should be used as a decision tool for coming quarters.
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Strengths
What are your firm's strengths relative to your competitors? What are your most important strengths? Why?
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Specialist marketing expertise
Exclusive access to natural resources
Patents
New, innovative service
Location of your business
Cost advantage through proprietary know-how
Quality processes and procedures
Strong brand or reputation
Any other aspect of your business that adds value to your service
Weaknesses
What are your firm's weaknesses relative to your competitors? What is impeding you from achieving your desired results? Prioritize your
weaknesses.
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Lack of marketing expertise
Undifferentiated products and service in relation to your competitors
Location of your company
Competitors have superior access to distribution channels
Poor quality of services
Damaged reputation
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Opportunities
How can you convert these strengths, weaknesses, and threats into opportunities for your firm? What considerations are most important for your
success?
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Developed market
Mergers, joint ventures or strategic alliances
Moving into new attractive market segments
A new region penetration
Loosening of regulations
Removal of international trade barriers
A market that is led by weak competitors
Threats
What organizational, competitive, and environmental threats do you face now and in the near future?
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New competition in your market
Price war with competitors
Competitors have new, innovative substitute services
New regulations
Increased trade barriers
A potential new taxation on your service
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CEO meetings and PM presentation 30%
The grade is based on how well you can motivate your decisions and how well you understand the market. It is also important that you can
communicate the performance of the firm in a way that your CEO gets a good overview of the decisions that you made and the consequences of
the decisions. Each PM should be no longer than 1000 words (use the word count function in Word).
Questions to answer for PM:
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Presentation of results from previous quarter. Discuss and analyze the consequences of your former decisions, both in the short run and in
the long run.
What are the largest problems that your firm faces?
What’s been your best and worst team decision to date?
Who is the best performing competitor in your industry? Why?
To customers, what differential advantage does your firm offer compared to competitors?
How is your firm currently organized (e.g., by function, by region, as a committee of the whole)?
Is this organization “best” for the current problems/challenges faced by your firm?
What actions will you take for the coming quarter?
What methods have you used to analyze the market?
Who has done what? It is obligatory to write an overview of the different responsibilities of the team members. This will be attached as
an appendix in the end of each rapport. Each member will write their own diary of what they have done for the firm.
A recommendation is to write memos (why are we doing this?) for all your decisions before you input them into the simulation. This
will help you for your PM and your final rapport.
It is important to read the literature assignments for each week. Even though, you don’t need to refer to the literature in the PM, you
will need it for the final rapport.
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Final Report & Presentation 40%
The final is done as a two part assignment with a written report and an oral presentation.
Written report
As the simulation activities are finished, you are supposed to analyze the progress of your company throughout your management period. Discuss
and analyze the current state of your company based on literature. In the final report this is very important! Examples of questions to think
about are:
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Overall, what were the results of your decisions (not every decision but the decisive ones)? Include both positive and negative decisions.
Could you have done anything different? If so, what would the possible consequences have been?
What have you learned from the simulation?
Based on this reflection of the past and the current state of your company, each team will present a firm-wide marketing plan for the next four
quarters. This is a firm-wide marketing plan, not simply a plan for a single product/service in your portfolio. Think about firm-wide issues and
industry-wide developments. While you will have to say something about each of your active services, do not spend an equal amount of time
and effort on each. Focus your report where the needs (the challenges in the next four quarters) are the greatest as you look ahead for the next
four quarters. Also, include the decisions that you made based on the SWOT analysis and the outcome of those decisions.
Obviously, your market analysis and assessment must be fact-based, requiring the use of a variety of financial and marketing data. With
considerable experience managing your business, your management team should be able to pay particular attention to customer satisfaction and
service quality issues. Use the literature as a part of your reasoning for your marketing plan for quarter 12 to 15. Hint: refer to the literature….
In preparing a plan, please remember that you should provide detailed information, rather than generalities. For example, instead of saying, “we
will raise price,” the plan might say, “the price of product/service x will be increased by 5% to $20/unit.” Do not forget to explain why you will
make the specific changes.
Your final rapport should not be more than 4000 words. You are allowed to use appendix, but we might not read them.
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Presentation
The final report will be presented with PowerPoint slides. Each team will be allocated 30 minutes of time for the presentation and subsequent
question-and-answer period. Think in terms of a 20 minute presentation followed by 10 minutes of Q&A. Please rehearse your presentation to
ensure that it falls within the time limit.
Some presentation hints follow:

Your first overhead slide should identify your team name, team number, and team members.
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Your second overhead slide should identify your current organizational structure.
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Your third overhead should overview the past financial and market performance of your firm.
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Your fourth overhead slide should identify your current product portfolio (which services are in which “parts” of which markets, how are
they positioned, how are they performing).
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Additional overheads will follow with the specifics of your marketing plan for the next four quarters. As part of this marketing plan,
forecasts of industry demand, market shares, sales volumes, revenues, and profits are required.
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Your last overhead should highlight 3-5 key learnings that your group is taking away from participation in this simulation. Presumably,
these learnings will have something to do with the analysis-strategy-planning-management paradigm used in this course.
After each presentation, there will be 10 minutes of discussion about the substance of your team’s presentation. The other management teams are
expected to participate in the discussion after each presentation (e.g., by asking questions).
Given the short time available for the formal oral presentation, all team members need not participate in the formal presentation. Nonetheless, all
group members are expected to participate fully in the post-presentation discussion. Indeed, it should be expected that the instructor will direct
specific questions to team members who did not actually participate in the formal oral presentation.
Evaluation Mechanism
Each team’s final report will be handed in at the final seminar (e-mail and hard copy) to respective group CEO.
The Final Report & Presentations serve as the LINKS Debriefing Session, counting for 40% of the final course grade. Grading will be based on
the team’s analysis of the issues in the report, their oral presentation skills, and the post-presentation discussion.
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Sample of a Written Marketing Plan
This is only an example! You are expected to input other information beside the ones mentioned in the example. Creativity and use of
literature is encouraged.
Recent Market Developments:
The key market developments last year included ..[major competitive development and activities, major repositionings of competitive offerings,
new entrants, changes in customer values and perceptions, new trends possibly uncovered, key technological developments, major regulatory
developments, ...].. . The importance of these developments is that they indicate ..[what do they mean? how will they influence future marketing
activities and efforts of you and your competitors? how can these market developments be exploited for maximum benefit? ...].. .
Our Performance in the AAAAAAAA Market:
From 200X to 200Y, the market for AAAAAAAA grew by about B% to C units. Our sales of AAAAAAAA increased by D% to E units, which
resulted in our profits increasing by F% to $G. Our market share grew from HH.H% to II.I% overall. By major market segment, our
performance was ... .
History
Industry/Segment Sales Volume
Industry/Segment Market Share
Product Sales Volume
Price
Revenue
- Variable Costs
= Gross Margin
- Fixed Costs
= Profit
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Forecast
Competitive Analysis:
Our major competitors in the AAAAAAAA market are J and K. We estimate that their current market position and performance is ..[market
shares, sales volumes, growth rates, profitability].. . Their current offerings have these major advantages and disadvantages compared to our
offering: ... . Their current strategies seemed to be oriented toward ... . In the near future (the 200Z planning period), we believe that their
marketing thrusts will be as follows: ..[expected changes (or even no changes) in product, price, ...].. . Thus, the major opportunities and threats
appear to be ... .
Customers and Success Factors:
To compete successfully in this market, we must respond to customers' concerns for: (1) ...; (2) ...; ... when they choose a source of
supply/brand/ manufacturer/retailer. The importance of these particular buying factors is indicated by ..[our research, on-going discussions with
key customers, ...].. . Of particular note is the increasing importance of ... and ... to our customers. With regard to our major customer segments,
notable variations in success factors include ... . The major opportunities and threats appear to be ... .
Major Assumptions:
Our major assumptions for the 200Z year include:
(1) Customers: ...
(2) Competitors: ...
(3) The Environment (Economy, Technology, Regulatory Environment): ...
Goals:
Based on this analysis of our situation, our goals for this planning period are to ..., to ..., and to ... [expressed in terms of volume, market share,
growth, revenue, customer satisfaction, awareness, availability, ... parameters].
Our Marketing Program For AAAAAAAA:
To meet these challenges and opportunities, our marketing program will have the following major components:
(1) ...
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(2) ...
(3) ...
[Be sure to consider all service elements.] The results of this marketing program are forecast to yield sales of L units (M% increase), revenues of
$N (P% increase), an overall market share of QQ.Q% (an increase of R.R% from 200Y year), and profit of $S (T% increase).
To achieve these results, investments of $U will be required in support of ..[system development, facilities expansion, temporary staff addition ,
special consulting projects, ...].. .
Competitor Reactions to Our Marketing Programs:
Competitive reaction to our marketing program is expected to be ..[will they notice? if they notice, is there anything they can do? if they can do
something in response, will they?].. . This reaction will impact on our marketing program as follows: ... . This reaction, and its influence on our
marketing program, has already been taken into account in our financial and market performance projects.
Implementation Issues and Procedures:
To implement this plan successfully, the following implementation challenges exist: ... . Our program for meeting these implementation
challenges includes ..[strategies, tactics, emphasis, actions, activities, ...].. . Specific responsibility assignments and time deadlines for key
aspects of this marketing program include ... .
Contingency Plans:
Major contingencies include: ... . In this event, our plan would have to be revised to ..[changes in emphasis, new initiatives, ...].. .
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Components that can be in the rapport
 Executive summery
 Strategy
 Vision
 Mission
 Market analysis
 Competitors
 SWOT-analysis
 Customers
 Marketing Plan
 Market Size
 Forecast
 Price
 Profit
 Reference
 Appendix
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