RES70402 Service Strategy Assignment 1 Case Study on Bright Horizon: Delivering Excellence in Specialty Services

Question 1.A Case Study

Bright Horizon: Delivering Excellence in Speciality Services

Bright Horizon, a global leader in speciality beverages, operates over 2,000 retail outlets across Southeast Asia and is now preparing for expansion into the Australian market. Despite its success, the company faces pressing challenges in customer satisfaction and employee retention, prompting the need for strategic investments. With $15 million earmarked for human resource management and technological advancements, Bright Horizon aims to strengthen its service offerings and ensure a competitive edge.

Bright Horizon seeks to enhance customer satisfaction by improving service quality and delivery efficiency. The company also aims to reduce employee turnover by fostering a positive work environment and implementing better human resource practices. Furthermore, it is committed to maintaining its market position as a premium provider of speciality beverages through innovative service strategies.

Bright Horizon will focus on offering premium beverages by tailoring high-quality, unique options to meet customer preferences. The company also plans to design inviting and functional servicescapes to enhance the customer experience. A strong service philosophy will underpin these efforts, aiming to build long-lasting relationships through exceptional customer service and employee engagement.

Figure 1: Key challenges faced by Bright Horizon

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Introduction

Bright Horizon is a well-known beverage company with over 2,000 stores in Southeast Asia. As it plans to expand into the Australian market, the company is facing two main challenges: lower customer satisfaction and a high rate of employee turnover. These issues threaten the quality of service and brand consistency, which are key to its premium positioning (Albrecht, Breidbach, & Iyer, 2020). To address this, Bright Horizon should develop strategies to improve both its internal operations and customer service. The company also has a $15 million investment fund that can be used to strengthen human resource practices and adopt new technologies.

Research Problem

Bright Horizon is a specialised beverage company, which has over two thousand stores in Southeast Asia and is expanding to explore the Australian market. The company is facing two major organisational issues to date: reduction in customer satisfaction and a high turnover rate of employees. These problems are threatening the quality of the provided services, operational stability, and brand identity, which are some of the key pillars of the service structure-based business model. The central value that is used by the company is based on offering premium experiences via personalised service as well as high-quality beverages. Nevertheless, the rising customer dissatisfaction can signal the need to improve the service, and the high turnover rates can be an indication of a failure of the HR management system, such as low motivation, inability to develop a career, and poor cultural engagement. Together, these challenges affect Bright Horizon’s long-term growth and its ability to fit into Australia’s competitive market.

In addition, consumers of the internet age have their experience influenced by new technology, ease, and personalised experiences. The relatively low level of combined use of various advanced technologies, including digital ordering platforms, customer relationship management (CRM) systems, and artificial intelligence (AI)-driven analytics, might put Bright Horizon at a disadvantage compared to the local competitors who have already managed to use such tools to increase the level of customer engagement and the efficiency of operations. Given the $15 million fund, Bright Horizon should develop a service improvement plan that aligns its internal strengths with what customers expect. Bright Horizon must improve its service, people, and technology to enter the Australian market successfully.

Research Questions

• What are the key internal and external service-related challenges faced by Bright Horizon as it enters the Australian market?
• How can human resource strategies—such as training, engagement, and retention—be optimised to improve service delivery and reduce employee turnover?
• To what extent can technological innovation (e.g., CRM systems, digital ordering, and AI analytics) enhance customer experience and operational performance for Bright Horizon?

Research Objectives

• To critically examine the underlying causes of customer dissatisfaction and high employee turnover at Bright Horizon.
•  To explore and evaluate effective human resource strategies—such as structured training, recognition programs, and organisational culture development—that encourage employee motivation and service excellence.
• To assess the role of digital technologies, including CRM and AI-based analytics, in enhancing customer engagement, personalisation, and overall service quality.

Research Significance

The study is of great academic and practical value. Theoretically, the research can be viewed as adding value to emerging literature on service management, international business expansion, and strategic practice of human resources in the service industry. It brings together recent studies showing that engaging employees and using digital technologies can improve service quality and customer satisfaction (Morgeson, Brannick & Levine, 2022; Luo et al., 2021; Bharwani & Mathews, 2021). Combining several approaches, including Motivation-Hygiene Theory of Herzberg, the Servicescape Model developed by Bitner, the Service-Profit Chain or the Total Quality Management (TQM) theory, the study gives a cross-disciplinary insight into the integration of internal competences and external experience that contribute to organisational success. On the practical side, the results shall provide evidence-based advice to the leadership of Bright Horizon, which they can use to make well-thought-out strategic decisions on how to spend the 15 million investment fund. Identifying both weaknesses and high-potential improvements will guide the development of a service strategy suitable for the Australian market, while maintaining the brand’s premium position.

Furthermore, this research takes place in a fast-changing world where customer needs and digital technology are constantly evolving. It focuses on the need for agility, adaptability, and alignment in business strategy. The study explores key challenges like employee disengagement, weak digital presence, and difficulties in adapting a brand to local markets. These are not only issues for Bright Horizon, but also for many service-based companies expanding internationally. This research aims to close the gap between planning and real-world application. It provides useful insights into how businesses can improve customer experiences by investing in people, systems, and practices. These findings are especially useful and valuable to senior managers, policy makers, researchers working around service innovation, HRM and global business expansion.

Conclusion

Bright Horizon is at a critical stage as it prepares to enter the Australian market. The key challenges—customer dissatisfaction and high employee turnover—can be addressed through targeted investments in human resources and technology. By adopting a customer-focused approach, improving store experience, and engaging employees, the company can strengthen its premium brand image and achieve sustainable growth. The integration of service strategies, HR practices, and digital tools will be essential for long-term success.

Taylor’s University Sdn Bhd Co. Reg. No. 198601000495 (149634-D)
Taylor’s Malaysia Sdn Bhd Co. Reg. No. 200501005899 (682946-T)