Services & Goods Notes

A service is an economic activity where an immateria exchange of vaue occurs. A service is .

ntangibe: they cannot be touched, gripped, tasted, ooked at, etc. Thus neither potentia nor need for
transport, or storage. 2. Perishabe: An empty seat on a pane never can be utiized and charged after
departure. . nseparabe: Service requires some degree of interaction with customer. The hairdresser or
the piot must be in the same shop or pane with customer, respectivey, for deivering the service. .
Heterogeneous: Each service is unique. t is one-time generated, rendered and consumed and can never
be exacty repeated. 5. Evauated as a package: evauated considering (a) supporting faciities (b)
faciitating goods (c) impicit and expicit service

What is Operations Management? 7 nputs Outputs Transformation

processes that create vaue (= quaity / price). The “Process View” of organizations What is a
“process”? – A set of tasks that transform inputs into outputs Every organization has severa
processes that work to transform inputs into outputs. These processes can be anayzed at different
eves of detai – Their management can be different depending on the overa objective or strategy of
the business.

How to measure Efficiency? Productivity is a common measure on how we resources are being used.
defined as the foowing ratio: Outputs over
nputs

Strategy Formuation . Defining a primary task – What is the firmcompetitive arena? 2. Assessing core
competencies – What does the firm do better than anyone ese? – Core competencies can be firm’s core
rigidities if not aigned with customers’ needs . Determining order and order quaifiers – quaifications
for an item to be considered for purchase? – What wins the order? . Positioning competition? 5.
Depoyment