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Course profile

Service Strategy (MKTG7504)

Study period
Sem 1 2025
Location
St Lucia
Attendance mode
In Person

Course overview

Study period
Semester 1, 2025 (24/02/2025 - 21/06/2025)
Study level
Postgraduate Coursework
Location
St Lucia
Attendance mode
In Person
Units
2
Administrative campus
St Lucia
Coordinating unit
Business School

Special marketing requirements of service and not-for-profit organisations. Relevance and limitations of marketing theories and concepts, practical implications for Australian organisations. Understanding services, classifications, designing and delivering services, importance of people in organisation, quality service, managing customer service, developing strategies.

This course involves an in-depth exploration of services marketing strategy from the core perspective of managing service quality. The course will cover both the role of customers and service providers and their interface in achieving higher service quality that will result in greater customer satisfaction and loyalty to the service provider. Students will learn core theoretical concepts and frameworks in service strategy and theoretical debates such as the service dominant logic (SDL)ᅠand how these frameworks will be helpful to achieve enhanced quality outcomes not only in for−profit companies but also for services marketing activities in government services and not−for−profit organisations. An understanding of the relevance and limitations of concepts and theories to understanding customers and developing marketing strategy in service organisations is developed through discussion of insights from academic articles, case studies and practical, real−life examples.

Sustainable Development Goals - UQ Business School is a proud supporter and Advanced Signatory of the United Nations Principles for Responsible Management Education (UN PRME). As part of the largest global collaboration between business schools and the UN, the school emphasises its role in empowering students to drive societal transformation through the Sustainable Development Goals. The SDGs highlight that a thriving economy relies on a healthy environment, aiming to balance economic growth, social well-being, and environmental protection for a sustainable future.

Course requirements

Assumed background

It is assumed that students will have a basic knowledge of the principles of marketing.ᅠ

Before attempting this course, students are advised that it is important to complete the appropriate prerequisite course(s) listed on the front of this course profile. No responsibility will be accepted by the School of Business, the Faculty of Business, Economics and Law or The University of Queensland for poor student performance occurring in courses where the appropriate prerequisite(s) has/have not been completed, for any reason whatsoever.

Recommended prerequisites

We recommend completing the following courses before enrolling in this one:

MKTG7501

Incompatible

You can't enrol in this course if you've already completed the following:

MKTG2503

Restrictions

Quota: Minimum of 15 enrolments

Course contact

Course staff

Lecturer

Timetable

The timetable for this course is available on the UQ Public Timetable.

Additional timetable information

Please note: Teaching staff do not have access to the timetabling system to help with class allocation. Therefore, should you need help with your timetable and/or allocation of classes, please ensure you email business.mytimetable@uq.edu.au from your UQ student email account with the following details:

  • Full Name
  • Student ID
  • Course Code

Aims and outcomes

This course aims to develop students' understanding of services strategy through an exploration of relevant theories, concepts, principles and ideas, with a particular focus on the customer.

Learning outcomes

After successfully completing this course you should be able to:

LO1.

Develop an understanding of the role of service design and delivery in firm competitive strategy.

LO2.

Understand the significance of service quality focus in all aspects of service design and delivery.

LO3.

In a group setting, develop a comprehensive understanding of customer expectations and role of the customer in designing effective service strategies.

LO4.

Comprehend the role of service employees in effective service-based value delivery.

LO5.

In a group setting, synthesise service marketing concepts with operations management and human resources in the design and management of service organisations.

Assessment

Assessment summary

Category Assessment task Weight Due date
Presentation Critical analysis of service strategy case study
  • Team or group-based
10%

Week 4 - Week 13

Starting week four, student groups will be presenting their assigned case study analysis during class

Examination In-Semester Exam
  • In-person
30%

In-semester Saturday

29/03/2025 - 12/04/2025

Paper/ Report/ Annotation Major Project - Service strategy analysis
  • Team or group-based
30%

23/05/2025 3:00 pm

Examination End of Semester Examination
  • In-person
30%

End of Semester Exam Period

7/06/2025 - 21/06/2025

Assessment details

Critical analysis of service strategy case study

  • Team or group-based
Mode
Oral
Category
Presentation
Weight
10%
Due date

Week 4 - Week 13

Starting week four, student groups will be presenting their assigned case study analysis during class

Other conditions
Peer assessed.

See the conditions definitions

Learning outcomes
L02, L03, L04, L05

Task description

In this assessment, using case studies, student groups will examine and critically evaluate how the service strategy is managed in real world business organizations. Student groups will be assigned a selected set of case studies that are aligned with seminar topics. In the analysis, students are required to use service strategy concepts and frameworks that were discussed in class and come up with observations and recommendations on how service strategy of the firm can be improved.  A detailed guide will be provided on Blackboard. Presenters must do their best get the class involved following the presentation.

Peer assessment: For this assessment, all student groups must undertake a peer assessment as per specified form. This form will be provided on Blackboard. All completed forms must be attached to the assessment submission as an Appendix.

In the event a group is in dispute on the individual contribution of group members in preparation of the assessment marks will be apportioned based on the outcome of the peer assessment.

AI Statement:

All assessment tasks in this course prohibit the use of AI. Assessment tasks evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.

Submission guidelines

ONE electronic copy is to be submitted to Turn-It In as a Word document, and is to be submitted by the due time and date.


Deferral or extension

You may be able to apply for an extension.

Late submission

A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.

In-Semester Exam

  • In-person
Mode
Written
Category
Examination
Weight
30%
Due date

In-semester Saturday

29/03/2025 - 12/04/2025

Learning outcomes
L01, L02, L04

Task description

The mid-semester exam will be a 'concept check' to ensure that students have gained a clear understanding of service strategy concepts and frameworks that were discussed in class. This knowledge will be critically important for students to use such concepts and frameworks in other assessments in the course. 

The exam will be conducted in person and arranged by the Central exams. Students will complete the exam on the assigned date. More instructions to follow.

AI Statement:

All assessment tasks in this course prohibit the use of AI. Assessment tasks evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time 10 minutes
Duration 90 minutes
Calculator options

Any calculator permitted

Open/closed book Closed Book examination - no written materials permitted
Exam platform Paper based
Invigilation

Invigilated in person

Submission guidelines

Deferral or extension

You may be able to defer this exam.

Major Project - Service strategy analysis

  • Team or group-based
Mode
Written
Category
Paper/ Report/ Annotation
Weight
30%
Due date

23/05/2025 3:00 pm

Other conditions
Peer assessed.

See the conditions definitions

Learning outcomes
L01, L02, L03, L04, L05

Task description

This project report involves studying and critically analysing the service strategy of a service organisation using service strategy concepts and frameworks that were discussed in the course.

Guidelines for selecting the service firm are;

  1. Must be well-established with over several years of existence
  2. Must have a properly developed and functional website through which the firm make sales to customers
  3. A smaller service firm will be better for this assessment as such firms generally have service strategy issues that may interest you. Larger service firms generally have established service processes with frequent service quality controls and you may not find any issues to study and report! 
  4. The owner/managers must be willing to be interviewed by you. Normally smaller service firms would like external help to understand their issues and recommendations for service enhancement. You may promise them to provide your completed/assessed report or recommendations. 

If you have any doubt about the firm you have selected, talk to the course coordinator early in the semester. 

OVERVIEW

  • You are required to complete a written report that illustrates how the key concepts/frameworks from the course are applied to focal service firm.
  • The purpose of this report is two-fold:
  • First, it allows you to apply various concepts introduced during the semester.
  • Second, it allows you to acquire a deeper understanding of one particular service firm and the industry in which it operates (hopefully one you are interested in and/or hope to work in).

Content of the Report

The following eight sections (listed below) are to help you demonstrate your understanding of the concepts from class and ability to apply them to the chosen service firm. This project gives you the opportunity to critically analyse the service offering of a firm and make recommendations for improvements and how to close any gaps that were identified.

You must include the following sections in the main body of your report. The points listed in the sections below offer a framework for the content of each of the sections (i.e., you do not need to answer each question sequentially - the questions are a guide for you to think about what should be included in the section).

1. Industry Analysis

  • Analyse the industry that the firm is operating in, from a services marketing perspective e.g. current trends, competitive, social & technological forces (think broadly).
  • Where would you locate this industry on the “tangibility” spectrum? Why?
  • What are the unique services marketing challenges this industry faces?

2. The Service Offering and The Customer Gap

  • Briefly introduce the firm (provide a very short background).
  • Describe and critically analyse the firm’s service you have chosen (use services marketing theory and concepts as well as secondary research sources).
  • Who is the intended target market (the customer) of the firm's service?
  • Include a brief discussion of "The Customer Gap" (this could be based on your personal experience).
  • How well does the company understand customer expectations of service quality?
  • How well does the company understand customer perceptions of service quality?

3. Service Provider Gap 1: Listening Gap

  • Market Research Orientation
  • Are the amount and type of market research that has been undertaken, adequate to understand customer expectations of service?
  • Does the company use this information in decisions about service provision?
  • Upward Communication
  • Do managers and customers interact enough for management to know what customers expect?
  • Do contact people tell management what customers expect?
  • Relationship Focus
  • To what extent does the company understand the expectations of different customer segments?
  • To what extent does the company focus on relationships with customers rather than transactions?
  • Service Recovery
  • How effective are the service recovery efforts of the organisation?
  • How well does the organisation plan for service failures?

4. Service Provider Gap 2: Service Design and Standards Gap

  • Systematic Service Design
  • Discuss service development/design as it pertains to your firm's service.
  • How effective is the company’s service development process?
  • What new service innovations have been introduced in this firm/industry? (Use appropriate illustrations and/or examples.)
  • Discuss the success/failure of this/these innovation(s).
  • Presence of Customer-Defined Standards
  • Discuss customer defined service standards as they pertain to your firm's service
  • How effective are the company’s service standards?
  • Are they defined to correspond to customer expectations?
  • How effective is the process for setting and tracking service quality goals?
  • Appropriate Physical Evidence and the Servicescape
  • Are the company’s physical facilities, equipment, and other tangibles appropriate to the service-offering?
  • Are the company’s physical facilities, equipment, and other tangibles attractive and effective?
  • What role does physical evidence and the service-scape play? (Using images may be helpful here.)
  • How might the service-scape be used as a source of competitive advantage?

5. Service Provider Gap 3: Service Performance Gap

  • Effective Human Resource Policies
  • How effectively does the company recruit, hire, train, compensate, and empower employees?
  • Is service quality delivery consistent across employees, teams, units, and branches?
  • What are the roles of employees in co-producing the service?
  • Effective Role Fulfilment by Customers
  • What are the roles of customers in co-producing the service?
  • Do customers understand their roles and responsibilities?
  • Effective Alignment with Service Intermediaries
  • If relevant, discuss service delivery channels including intermediaries and electronic channels.
  • How well are service intermediaries aligned with the company?
  • Is service quality delivery consistent across the outlets?
  • Alignment of Demand and Capacity
  • Discuss how this firm may be managing demand and capacity.
  • How well is the company able to match supply with demand fluctuations?

6. Service Provider Gap 4: Communication Gap

  • Integrated Services Marketing Communications
  • Analyse and discuss service marketing communications as they pertain to the firm's service.
  • How well does the company communicate to customers about what will be provided to them?
  • Does the company avoid overpromising and overselling?
  • How well do different parts of the organisation communicate with each other, so that service quality equals what is promised?
  • Pricing
  • Analyse and discuss pricing of the firm's service.
  • Is the company careful not to price so high that customer expectations are raised?
  • Does the company price in line with customer perceptions of value?

7. Service Quality Outcomes: Customer Satisfaction & Customer Loyalty & Profits

  • Discuss customer satisfaction and service quality as it pertains to the firm's service.
  • Which types of customers are loyal to this firm? Why?

8. Services Marketing Recommendations

  • Based on your analysis, what are the strengths and weaknesses of this firm’s service and services marketing approach?
  • Based on your analysis, what opportunities and threats do you see for this service firm?
  • Based on your analysis, what recommendations would you provide to the firm for future success?

Report Format:

  • Cover Page (not included in the word count)
  • Executive Summary, typically 1 page, (single line spacing, Times New Roman font) outlining the key points contained in the report, and importantly what problems you uncovered during your analysis of the service firm, and what key recommendations/strategies are you making? Dot points can be used in this section (not included in the word count)
  • Table of Contents (not included in the word count). (Single line spacing, Times New Roman font). Immediately following the Executive Summary should be a table of contents for your report. You may put the report together in any order you like, provided there is some logical reasoning (apparent to the reader) for the sequence you have chosen.
  • Main Body of the Report. (1 1/2 line spacing, Times New Roman font). You are expected to include each of the above eight sections in the report. You should revise each section, as necessary, as you develop the final report. The main body of the report should include an Introduction that sets up what is going to be discussed in the later pages.
  • Conclusion. (1 1/2 line spacing, Times New Roman font). The report should end with a brief Conclusion section that ties the entire project together and reveals major insights gained during the research process about your chosen service firm and industry.
  • References (not included in word count). (Single line spacing, Times New Roman font, in alphabetical order of first authors last name). You need to reference your work or ideas - at least 20, preferably nearer 30. Lecture notes should NOT be included in the reference list; the lecture notes are based on the course text book and academic sources.
  • Appendices (not included in the word count).

Word limit: 3500 words

Format: Report format

Research: Note that you are expected to use academic and industry/news references. You need to, at the very least, include key theory and models discussed in class/textbook, and also synthesise academic and industry secondary research, to obtain a passing grade.

Peer assessment: For this assessment, all student groups must undertake a peer assessment as per specified form. This form will be provided on Blackboard. All completed forms must be attached to the assessment submission as an Appendix.

In the event a group is in dispute on the individual contribution of group members for the submission of this assessment by the specified date as per submission guide, marks will be apportioned based on the peer assessment outcome.

AI Statement:

All assessment tasks in this course prohibit the use of AI. Assessment tasks evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.

Submission guidelines

One electronic copy is to be submitted to Turn-It In, and is to be submitted by the due time and date.

Deferral or extension

You may be able to apply for an extension.

Late submission

A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.

End of Semester Examination

  • In-person
Mode
Written
Category
Examination
Weight
30%
Due date

End of Semester Exam Period

7/06/2025 - 21/06/2025

Learning outcomes
L01, L02, L04

Task description

Instructions: You will select THREE (3) out of FIVE (5) questions to answer. Answers will be short essay type and should be 300-400 words long. Answers will be assessed on coverage of relevant issues and depth of analysis. Bullet points responses without appropriate details will be awarded only partial marks.  

AI Statement:

All assessment tasks in this course prohibit the use of AI. Assessment tasks evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time 10 minutes
Duration 120 minutes
Calculator options

Any calculator permitted

Open/closed book Closed Book examination - no written materials permitted
Exam platform Paper based
Invigilation

Invigilated in person

Submission guidelines

Deferral or extension

You may be able to defer this exam.

Course grading

Full criteria for each grade is available in the Assessment Procedure.

Grade Cut off Percent Description
1 (Low Fail) 0 - 29

Absence of evidence of achievement of course learning outcomes.

2 (Fail) 30 - 46

Minimal evidence of achievement of course learning outcomes.

3 (Marginal Fail) 47 - 49

Demonstrated evidence of developing achievement of course learning outcomes

4 (Pass) 50 - 64

Demonstrated evidence of functional achievement of course learning outcomes.

5 (Credit) 65 - 74

Demonstrated evidence of proficient achievement of course learning outcomes.

6 (Distinction) 75 - 84

Demonstrated evidence of advanced achievement of course learning outcomes.

7 (High Distinction) 85 - 100

Demonstrated evidence of exceptional achievement of course learning outcomes.

Additional course grading information

Grades will be allocated according to University-wide standards of criterion-based assessment.

Supplementary assessment

Supplementary assessment is available for this course.

Learning resources

You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.

Library resources

Find the required and recommended resources for this course on the UQ Library website.

Learning activities

The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.

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Learning period Activity type Topic
Week 1
Lecture

(1) Introduction: Competing on services

Course context: Why services are a core element in firm competitive strategy, Service-dominant Logic (SDL); Focus on service quality, Course expectations; Assessment - Major project (group)

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49 (4), 41-50.
Lusch, R. F., Vargo, S. L., & O'Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83 (1), 5-18.
[Formation of groups for assessments and tutorial activities discussion]

Learning outcomes: L01, L02, L03

Week 2
Lecture

(2) Gaps model and Customer service Expectations

Introducing the gaps model of service quality, gaps framework and closing the gaps, factors influencing customer expectations and issues. Tam, J. L. M. (2005). Examining the dynamics of consumer expectations in a Chinese context. Journal of Business Research, 58, 777-786.
Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49 (4), 41-50.
Additional Reading; Case Study: Zappos.com: Clothing, Customer Service, and Company Culture
[Tutorial: Sample case study discussion]

Learning outcomes: L02

Tutorial

Sample case study discussion and discussion questions.

Learning outcomes: L02

Week 3
Lecture

(3) Service perceptions and Service Research

Customer perceptions, satisfaction and service encounters, understanding customer requirements through research, elements of an effective research program
Chapter 4 & 5 Additional Reading;
[Tutorial: Sample case study discussion]

Learning outcomes: L02

Tutorial

Sample case study discussion 2 and discussion questions

Learning outcomes: L02

Week 4
Lecture

(4) Building Customer Relationships

Relationship value of customers, relationship development strategies and challenges
Chapter 6
Palmatier, R. W., Dant, R. P.; Grewal, D., & Evans, K. R. (2006). Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing, 70 (4), 136-153.
[Case study presentations starting this week]

Learning outcomes: L01, L02, L03, L04, L05

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L01, L02, L03, L04, L05

Week 5
Lecture

(5) Service Recovery

Impact of service failure and recovery and service recovery strategies - fixing the customer and the problem
Sivakumar, K., Li, M., & Dong, B. (2014). Service quality: The impact of frequency, timing, proximity, and sequence of failures and delights. Journal of Marketing, 78 (1), 41-58.
Maxham III, J. G., & Netemeyer, R. G. (2003). Firms reap what they sow: The effects of shared values and perceived organizational justice on customers' evaluations of complaint handling. Journal of Marketing, 67 (1), 46-62.

Learning outcomes: L02, L03, L04, L05

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L02, L03, L04, L05

Week 6

(31 Mar - 06 Apr)

Lecture

(6) Service Innovation/Design and standards

Challenges of service innovation, types and stages of new service development (NSD), service blueprinting and customer defined service standards
Scheuing, E.E. and Johnson, E.M. (1989b), モA proposed model for new service developmentヤ,Journal of Services Marketing, 3 (2), pp. 25-34. Hogan, S. J., Soutar, G. N., McColl-Kennedy, J. R., & Sweeney, J. C. (2011). Reconceptualizing professional service firm innovation capability: Scale development. Industrial Marketing Management, 40 (8), 1264-1273.
Business Research, 66(8), 1085ヨ1097.

Learning outcomes: L01, L04, L05

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L01, L04, L05

Week 7
Lecture

In-Semester Exam

Learning outcomes: L01, L02, L03, L04, L05

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L01, L04, L05

Week 8
Lecture

(7) Physical Evidence and the Servicescape

Types of servicescapes, strategic roles of servicescape and guidelines for physical evidence strategy
Tombs, A., & McColl-Kennedy, J. R. (2003). Social servicescape conceptual model. Marketing Theory, 3 (4), 447-475.
Additional Reading; Case Study: People, Service, and Profit at Jyske Bank
[Major project submission and marking criteria discussion]

Learning outcomes: L01, L04, L05

Tutorial

Case Study Presentations and discussion questions

Good Friday Public Holiday - Friday 18 April 2025 - Check Blackboard for announcements about affected classes.

Learning outcomes: L01, L04, L05

Mid-sem break
No student involvement (Breaks, information)

In-Semester Break

Week 9
Lecture

(8) Employeesメ Role in Service Delivery

service culture and critical role of service employees, strategies for delivering service quality through people
Lusch, R. F., Vargo, S. L., & O'Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83 (1), 5-18.
Additional Reading; Case Study: Merrill Lynch: Supernova

Learning outcomes: L02, L03, L04, L05

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L02, L03, L04, L05

Week 10
Lecture

(9) Customersメ Role in Service Delivery

Importance of customer, customer roles and customer participation in service design/delivery

McColl-Kennedy, J. R., Hogan, S. J., Witell, L.. & Snyder, H. (2017). Cocreative customer practices: Effects of health care customer value cocreation practices on well-being. Journal of Business Research, 70 (55-66).
McColl-Kennedy, J. R., Snyder, H., Elg, M., Witell, L., Helkkula, A., Hogan, S. J., & Anderson, L. (2017). The changing role of the health care customer: Review, synthesis and research agenda. Journal of Service Management, 28 (1), 2-33.

Learning outcomes: L02, L03, L04, L05

Tutorial

Case Study Presentations and discussion questions

Labour Day Public Holiday - Monday 5 May 2025 - Check Blackboard for announcements about affected classes.

Learning outcomes: L02, L03, L04, L05

Week 11
Lecture

(10) Managing Demand and Capacity

Lack inventory capability, capacity constraints and strategies to match capacity with demand patterns

Pullman, M., & Rodgers, S. (2010). Capacity management for hospitality and tourism: A review of current approaches. International Journal of Hospitality Management, 29, 177-187.

Corsten, H., & Stuhlmann, S. (1998). Capacity management in service organisations. Technovation, 18 (3), 163-178.

Additional Reading; Case Study: JetBlue: High Flying Airline Melts Down in Ice Storm

Learning outcomes: L02, L03, L04

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L02, L03, L04

Week 12
Lecture

(12) Managing Service Promises: IMC & Pricing

Need for integrated service marketing communication, strategies to match services

Berry, L. L., & Yadav, M. S. (1996). Capture and communicate value in the pricing of services. Sloan Management Review, 37 (4), 41-51.

Additional Reading; Case Study: Michelin Fleet Solutions: From Selling Tires to Selling Kilometres.

Learning outcomes: L01, L04

Tutorial

Case Study Presentations and discussion questions

Learning outcomes: L01, L04

Week 13
Lecture

(13) Course review and final exam review

Learning outcomes: L01, L02, L03, L04, L05

Tutorial

Discussion questions

Learning outcomes: L01, L02, L03, L04, L05

Additional learning activity information

Sustainable Development Goals

This course integrates the following Sustainable Development Goals (SDGs) through lectures and assessment.

Goal 3: Good health and well-being

Policies and procedures

University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:

Learn more about UQ policies on my.UQ and the Policy and Procedure Library.