Business Test 3
Operations Management
Management of people and machinery that convert materials into goods and services
What are inputs?
Raw Materials, resources
What does the conversion process do to the inputs
Add value
What are the outputs of the conversion process
Goods and services
Give an example of transformation process
Retail store.
1. Building, display, scanner
2. Attract customers, stores goods, sells things
3. Merchandise sold
What is tangible, and used/consumed after it's made
Product
consumer/used as it is produced, human element
Service
Planning the product steps
1. Market research (needs/wants)
2. Research and Development turn ideas into workable designs
3. Operation managers plan for materials, people, processes
What are the 2 operational systems
1. Mass production
2. Flexible production
What is mass production
large quantitites of standardized products
What is flexible production
smaller runs of similar products
What are the 4 productions process
1. Analytic
2. Synthetic
3. Continuous
4. Intermittent
What is analytic process
Breaking apart materials and turning it into something
What is synthetic process
Take pieces and components and turn them into something
What is continuous process
Ongoing improvemtns of products
What is Intermittent process
Machines produce different things at different times (lawyer)
What is the main question when deciding to produce somethig?
Whether to rely on people or machines (capital vs labour intensive)
List some things a business needs to consider when finding a new location.
1. proximity to suppliers, warehouses, services
2. Cost of insurance and taxes
3. Labour availability
4. Services that meet the employees needs
5. Space for current and future growth
6. Distance to market
7. Transportation links
8. Receptiveness of the community
9. Climate and environment
10. Energy services
11. Government incentives
12. Job of production managers
4 steps of production managers
1. Plan the overall production process
2. Select the most appropirate layout
3. Carry out the production plan
4. Control the production process
How do you plan the overall production process
put ideas into final plans, design the most efficient layout
What are the different layouts
1. Process
2. Product
3. Fixed position
4. Customer oriented
What is a process layout
Putting people in groups based off of similar skills
What is a product layout
Assembly line (cars)
What is a fixed position
The project is in one place, people go to it (boat, operation table)
What is a customer oriented layout
The company interacts with the customers
How do you carry out the production plan
1. purchasing the right materials and the right quantity, make or buy decision (make engines or buy them), value analysis (hwo can we improve)
2. Selecting and building relationships with suppliers
3. Managing Inventory (goal, ordering, materials)
Controlling the production process
production planning, rounting, scheduling, dispatching, follow up
What is quality
degree to which a good/service meets the demands/ requirements or the customer
How does our christian view affect quality
can be more restrivice (we cant provide some services), more expensive (we strive to give the best we can), golden rule (do unto others)
What is productions roles
planning and capacity, scheduling, floor management, safety
What is materials managements roles
right amount of materials, space, supplier considerations
Details about Maitenence
Schedule it, plan it, don't comprimise
Main purpose of operations
Make money, add value, meet the needs of stakeholders
People
Give regular feedback, define roles and responsibilities, empower your staff
What is marketing
Communicating, delivering and creating value to customers that benefit the company
includes the 4 p's
What is exchange
one thing for another, the heart of business, 4 p's
What is marketing strategy
Selecting a target market and developing an appropriate mix
What is marketing research
process to collect info about potential customers, primary and secondary sources, business intelligence
What are the bases for segmentation
geographical, demographic, psychographic, product-related, end-use
What is geographical segmentation
Region, populations, density, markets, geographically concentrated industries
What is demographic segmentation
Age, gender, income, education, family size, occupation, sales revenue, business markets
What is psychographic segmentation
Lifestyle, attitudes, opinions, behaviour, patterns, values
What is product-related segmentation
Comfort, safety, luxury, economy, convenience
What is end-use segmentation
Product design specifications for performance, design and price
What is consumer behaviour
Decision processes and actions of people who purchase and use products
What is the decision process of a consumer
1. Recognition of problem (new car)
2. Search for a product
3. Evaluate alternatives (gas, safety, space)
4. Purchase decision
5. Purchase act (buy it)
6. Post-purchase evaluation
What are the psychological determinants of marketing strategy
Perception, Learning, Attitude, Personality
What is perception
a person selects, organizes and interprets info from their senses (feeling, clothes, hearing)
What is learning
Brings changes in behaviour based on info and experience
What is attitude
Positive or negative feeling about something
What is personality
Individuals distinguishing character traits, attitudes or habits
Social determinants that impact marketing
Social roles, reference groups, social classes, culture
What are social roles
set of expectations based on position
What are reference groups
Groups with whom buyers identify and whose values or attitudes they adopt
What are social classes
ranking people into higher or lower positions positions of respect
What is culture
Integrated, accepted pattern of behaviour
What is relationship marketing
developing and maintaining relationships with partners
-customers are all unique
-buyer behaviour is not unique
What are the 4 p's
Product, place (distribution), price, promotion
What is product
A bundle of physical, service, and symbolic characteristics made to satisfy customer wants
Responsibilities as Christians for products
- show love to customers, so make good products that reflect our faith (no dating app, gun)
-cultural mandate and stewardship
What are competitive strategies
Price and Differentiation (product)
How do you classify products
-length of purchasing process
convenience (toothpaste), Shopping (jeans), Specialty (ethnic food)
Product life-style
1. Introduction
2. Growth
3. Maturity
4. Decline
5. New product development process
How to identify products
Branding - loyalty, image, emotions, design (nike)
What does packaging provide
attention, information, contents, convenience, economy, reduce enviro footprint
What is product quality
The degree a good/service/idea meets the demand of the cutomer
What is Placement
A plan that distributes the goods/services to customers
What are distribution strategies
Channels, Retailers, Wholesalers, Direct to customer
What is Promotion
The function of informing, persuading and influencing a purchase decision
What is the promotion mix
Personal selling and non personal selling (sales promotion, advertising)
What are the objectives of promotion
Provide information, stabilize sales, increase sales, differentiate product, remind, reinforce
What is advertising
Paid form or nonpersonal communication, the most important tool, efficient,
What are the 2 types of advertising
Primary demand: trying to sell all brands (milk in general)
Institutional: NFL could promote NFL in general
What is sales promotion
Direct inducements offering added value or some other incentives for buyers, support personal selling or advertising, convenient
Personal Selling
direct, 2 way communication with buyers and potential buys, contacts only likely prospects
Personal selling compared to advertising
effective, can be more expensive, harder to say no
What is public relations (PR)
communications and relationships with various public audiences
What does public relations do
publicity, greater impact, crisis managements, event marketing and sponsorships
What are the 2 different promotion strategies
Push: push the product on the consumer
Pull: Let society push the consumer in wanting the product themselves
What is Price
exchange value of a good/service
Common price objectives
Profit, Market share volume, meeting competition, image, survival, social/ethical considerations
What are cost-based strategies
break-even point, the price is great enough to cover costs
What does price have to do with competition
1. Follow the leader (let the dominant company make the price)
2. Adjust the price based on customer loyalty
3. Variation (competitors drop us too, market domination, customary pricing)
What is psychological pricing
1. Quality or premium pricing
2. Price lining (all tops are...)
3. Odd pricing ($3.87 vs. $4)
4. Multiple pricing (buy 3 get 1 free)
5. Bait and Switch (deal, but don't have product so buy more)
What is price discounting
1. Everyday low pricing
2. Price matching (competitors)
3. Trade discounts
4. Quantity discounts
5. Seasonal discounts
6. Promotional discounts