Mg375 Midterm Study Guide
MG 375 Mid-Term Study Guide
Operations and supply chain management: the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services * Functional field of business * Clear line management responsibilities
Concerned with the management of the entire system that produces a good or delivers a service
Differences between services and goods: 1. Services are intangible 2. Services requires some interaction with the customer 3. Services are inherently heterogeneous 4. Services are perishable and time dependent 5. Services are defined and evaluated as a package of features
Servitization: Servitization refers to a company building service activities into its product offerings for its current users * Maintenance, spare parts, training, and so on
Success starts by drawing together the service aspects of the business under one roof
Servitization may not be the best approach for all companies
Efficiency: Doing something at the lowest possible cost
Effectiveness: Doing the right things to create the most value for the company
Value: quality divided by price
Triple bottom line: considers evaluating the firm against social, economic, and environmental criteria. * Social: pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts is business * Economic: the firm’s obligation to compensate shareholders who provide capital via competitive returns on investment * Environmental: the firm’s impact on the environment
Cost or price: One of the competitive dimensions used to attract customers. Make the product or deliver the service cheap. Every industry has a segment of the market that buys solely on the basis of low price. To be successful, a firm must be a low-cost producer; not a guarantee of profitability and success. Products and services are commodity like; cannot distinguish one from the other. Segment of
Operations and supply chain management: the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services * Functional field of business * Clear line management responsibilities
Concerned with the management of the entire system that produces a good or delivers a service
Differences between services and goods: 1. Services are intangible 2. Services requires some interaction with the customer 3. Services are inherently heterogeneous 4. Services are perishable and time dependent 5. Services are defined and evaluated as a package of features
Servitization: Servitization refers to a company building service activities into its product offerings for its current users * Maintenance, spare parts, training, and so on
Success starts by drawing together the service aspects of the business under one roof
Servitization may not be the best approach for all companies
Efficiency: Doing something at the lowest possible cost
Effectiveness: Doing the right things to create the most value for the company
Value: quality divided by price
Triple bottom line: considers evaluating the firm against social, economic, and environmental criteria. * Social: pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts is business * Economic: the firm’s obligation to compensate shareholders who provide capital via competitive returns on investment * Environmental: the firm’s impact on the environment
Cost or price: One of the competitive dimensions used to attract customers. Make the product or deliver the service cheap. Every industry has a segment of the market that buys solely on the basis of low price. To be successful, a firm must be a low-cost producer; not a guarantee of profitability and success. Products and services are commodity like; cannot distinguish one from the other. Segment of