BUSINESS ORGANIZATION- refers to a
structured entity that engages in economic
activities with the primary goal of generating
profit.
TYPES OF BUSINESS ORGANIZATION
1. Sole Proprietorship- owned and
operated by a single person.
2. Partnership- association of 2 or more
person
3. Corporation- A legal entity that is
separate and distinct from its owners.
They have a hierarchy of positions.
They can enter contracts, loan, and
borrow money.
4. Cooperative (CO-OP) – A cooperative
is owned and operated by a group of
individual.
5. Nonprofit Organization- are formed to
pursue a specific social, educational,
charitable, or religious mission rather
than to generate profit for owners.
6. Joint Venture- involves two or more
businesses collaboration on a specific
project.
INTERNATIONAL CONSUMER LAW- law
focuses on the protection of consumers to
defend, promote, develop, and pursue
consumer rights as the international basis of
consumer protection law.
 Consumer law dictates that the
customer should be subject to fair
treatment.
 Consumer law requires all products
and services to be of satisfactory
quality.
 Consumer law protects consumer
against unfair terms in contracts
including any hidden fees and charges.
THE RIGHT TO SAFETY- to be
protected against products, productions
process, and service that are hazardous to
health or life .
THE RIGHT TO BE INFORMED-a to
be given facts needed to make an informed
choice, and to be protected against
dishonest or misleading or labelling.
THE RIGHT TO CHOOSE- to be able
to select from a range of products and
services, offered at competitive prices with
an assurance of satisfactory quality.
THE RIGHT TO BE HEARD- to have
consumer interests represented in the
making and execution of government
policy, and in the development of products
and services.
THE RIGHTS TO SATISFACTION OF
BASIC NEEDS- to have access to basic
essential goods and services, adequate
food, clothing, shelter,, etcc…
THE RIGHT TO REDRESS- to receive
a fair settlement of just claims, including
compensation for misrepresentations,
shoddy goods or unsatisfactory services.
THE RIGHT TO A HEALTHY
ENVIRONMENT- to ensure that the
products they sell meet certain safety and
environmental standards.
“CHAOS WAS THE LAW OF
NATURE; ORDER WAS THE DREAM
OF MAN”- ALFREDO TORRES
CONSUMER PROTECTION LAW- are
made to protect consumers from
fraudulent business practices, defective
products, and dangerous goods and
services.
1. PRODUCT SAFETY- laws related to
product safety ensure that products
offered to consumers meet certain
safety standards.
2. TRUTH IN ADVERTISING-
businesses are required to provide
accurate and clear information about
their products and services in their
advertising.
3. CONSUMER CONTRACTS-
consumer protection laws often
regulate the terms and conditions of
consumer contracts, ensuring that they
are fair, transparent, and easily
understandable .
 4. CONSUMER PRIVACY- consumer
privacy govern how businesses
collect, use and protect personal
information’s provided by consumers.
5. UNFAIR AND DECEPTIVE
TRADE PRACTICES- prohibit
business from engaging in unfair or
deceptive practices that could mislead
or harm consumers.
PRODUCT LIABILITY- refers to the legal
responsibility of manufacturers, distributors,
suppliers, retailers, and other parties involved.
PRODUCT LIABILITY LAWS- vary by
jurisdiction, and they are often influenced by
consumer protection regulations and tort law.
PRODUCT DEFECTS- refer to flaws or
deficiencies in the design, manufacturing, or
labelling of a product that can make it unsafe
for its intended use.
3 MAIN TYPES OF PRODUCT
DEFECTS
1. MANUFACTURING DEFECTS- a
product that is different from its
intended design.
2. DESIGN DEFECTS- make the entire
line of products dangerous.
3. LABELING DEFECTS- inadequate
warnings or instructions for safe
product usage.
CONSUMER PRIVACY AND IDENTITY
PROTECTION- are crucial aspects of modern
society, especially in an era where personal
data is collected, stores, and shared extensively
in the digital realm.
CONSUMER PRIVACY- refers to the right of
individual to control their personal information
and how it is collected, used, stored, and
shared by businesses.
SEVERAL KEY PRINCIPLES:
 DATA COLLECTION AND USE-
collect personal data should do so
transparently and with the clear
purposes.
 DATA SECURITY- should
implement robust security measures to
protect the personal data they collect
from unauthorized access.
 CONSENT AND CONTROL- ability
to provide informed consent for data
collection and have control over the
data they share.
 TRANSPARENCY- provide clear
and understandable privacy policies
that detail how data is collected, used,
and shared.
 THIRD- PARTY SHARING-
consumers should be informed and
consent should be obtained.
 CHILDREN’S PRIVACY- required
for the data of children, including
obtaining parental consent for data
collection and ensuring age-
appropriate content.
 INTERNATIONAL DATA
TRANSFER- organizations must
comply with relevant data protection
laws and ensure that appropriate
safeguards are in place.
IDENTITY PROTECTION- involves
measures taken to prevent the theft of
personal information for fraudulent
purposes, such as financial fraud, identity
theft, and cybercrime.
FEDERAL TRADE COMMSSION ACT
(FTC)- is a foundational piece of U.S
legislation that established. The act was
signed into law by PRESIDENT
WOODROW WILSON on September
26,1914.
FAIR CREDIT REPORTING ACT
(FCRA) – is a federal law in the UNITED
STATES that regulates the collection,
dissemination, and use of consumer credit
information’s, and balance between
protecting consumers rights and
facilitating responsible lending.
GRAMM-LEACH-BLILEY ACT
(GLBA)- also known as the financial
services modernization act of 1999.
Modernize financial services regulations
and promote competition among financial
institutions,
CHILDREN’S ONLINE PRIVACY
PROTECTION ACT (COPPA) –is a U.S
FEDERAL law that addresses the online
collection, use and disclosure of personal
information from children under the age of
13.
CONSUMER PROTECTION LAW- often
intersects with environmental claims,
particularly in cases where businesses
make statements or claims.
“AT HIS BEST, MAN IS THE
NOBLEST OF ALL ANIMALS;
SEPARATED FROM LAW AND
JUSTICE HE IS THE WORST”-
ARISTOTLE
MADE IN USA CLAIMS- statements or
labels used by businesses to indicate that a
product was manufactured or produced in
the UNITED STATES.
THE CAN SPAM ACT or
CONTROLLING THE ASSAULT OF
NON- SOLICITED PORNOGRAPHY
AND MARKETING ACT- is a US federal
law that regulates commercial email
messages.
TELEMARKETING SALES RULE
(TSR) is a set of regulations in the United
Stated that governs telemarketing
activities to protect consumers from
deceptive and abusive.
FAIR DEBT COLLECTION PRACTICES
ACT (FDCPA) – is a federal law in the
united states that regulates the behaviour
and practices of third- party debt collectors
who are attempting to collect debts on
behalf of creditors.
MORTGAGE CREDIT, AND DEBT
RELIEF SERVICES- are financial
services and programs designed to help
individuals manage their mortgage loans,
improve their credit profiles, and alleviate
or eliminate debt-related financial burdens.
MORTGAGE SERVICES:
 MORTGAGE ORIGINATION-
assist individuals in obtaining
home loans to purchase real estate.
– fixed rate or adjustable rate
mortgage.
 MORTGAGE REFINANCING-
to secure better terms, lower
interest rates, or cash out equity
from their homes.
 MORTGAGE
MODIFICATION- offer loan
modification programs to adjust
the terms.
CREDIT SERVICES:
 CREDIT REPAIR- assist individuals
in improving their credit scores by
identifying and disputing inaccuracies
on credit reports.
 CREDIT COUNSELING- provide
financial education, budgeting
assistance, and debt management.
 CREDIT MONITORING- keep
track of changes to credit reports.
DEBIT RELIEF SERVICES:
 DEBT CONSOLIDATION-
involves combining multiple
debts, such as credit card balances,
into a single loan or payment plan.
 DEBT SETTLEMENT-
negotiate with creditors on behalf
of individuals to reduce the total
amount owed.
 BANKRUPTCY SERVICES-
provide legal assistance to
individuals considering
 bankruptcy as a last resort for debt “LAW WITHOUT JUSTICE IS A
relief. WOUND WITHOUT A CURE’ –
WILLIAM SCOTT DOWNEY.
SHORT TERM LENDING- refers to
borrowing money for a relatively brief
period, typically ranging from a few
days to a few months.

COMMON TYPES OF SHORT

TERM LENDING;

1. PAYDAY LOANS- small, short

term loans typically due on the
borrowers next pay day.
2. INSTALLMENT LOANS- short
term loans that are repaid over a
fixed period through a series of
scheduled payments.
3. PERSONAL LOANS- unsecured
loans, meaning they do not require
collateral.
4. BRIDGE LOANS- short term
loans used by individuals or
businesses to bridge a financial
gap.
5. BUSINESS LOANS- immediate
cash flow issues.
6. LINE OF CREDIT- revolving
credit facility that provides access
to funds up to a predetermined
limit.
7. MERCHANT CASH
ADVANCES- receives an upfront
sum of cash in exchange for a
percentage of future credit.
8. INVOICE FINANCING-
accounts receivable financing,
allows business to obtain
immediate cash by selling their
outstanding invoice to a financial
institution at a discount.
9. PAWNSHOP LOANS- using
personal property as a collateral
10. ONLINE LENDERS AND
PEER TO PEER (P2P)- provide
faster approval processes and may
cater to borrowers with diverse
credit profiles.
 OPERATIONS- costing of all
activities directly related to producing
SERVICE IS A; goods or providing services.
- VARIABLE RESPONSIBILITIES OF OP;
- PERISHABALITY
- INTANGIBLE
- INSEPERABILITY

OPERATIONS MANAGEMENT-
management of sytems or processes that create
goods/or provide service.

KEY DECISION OF OPERATIONS

VALUE- ADDED- the difference between the
MANAGERS;
cost of inputs and the value or price of outputs.
- WHAT (resources/ amounts)
- WHEN (shedules/needed/ordered)
- WHERE (work to be done)
- HOW (designed)
- WHO (to do the work)

OPERATIONS INTERFACES
FOOD PROCESSOR

HOSPITAL PROCESS

MAJOR FACTORS IN DESIGN

OPERATIONS MANAGEMENT STRATEGY;
INCLUDES;
- COST
- FORECASTING - QUALITY
- CAPACITY PLANNING - TIME-TO MARKET
- SCHEDULING - CUSTOMER SATISFACTION
- MANAGING INVENTORIES - COMPETITIVE ADVANTAGE
- ASSURING QUALITY
- MOTIVATING EMPLOYEES
- DECIDING WHERE TO LOCATE
FACILITIES PRODUCT OR SERVICE DESIGN
ACTIVITIES;
 1. Translate customer wants and needs
into product and service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
OBJECTIVES OF PRODUCT----
MAIN FOCUS
- Customer satisfaction
- Understand what the customer wants
SECONDARY FOCUS
- Function of product/service
- Cost/profit
- Quality
- Appearance
- Ease of production/assembly
- Ease of maintenance/service
LIFE CYCLE OF PRODUCTS
1. Introduction
2. Growth
3. Maturity
4. Decline
STANDARDIZATION- process of making
your products and services consistent and
uniform/
MASS CUSTOMIZATION- a strategy of
producing standardized goods or services.
MODULAR DESIGN- form of
standardization in which component part
are subdivided into modules that are easily
replaced or interchanged, it allows;
- Ease diagnoses and remedy of failures
- Easier repair and replacement
RELIABILITY – the ability of a product, part,
or system to perform its intended function
under a prescribed set of conditions.
FAILURE- situation in which a product, part
or system does not perform as intended.
NORMAL OPERATING CONDITIONS; the
set conditions under which an item’s reliability
is specified.
IMPROVING REALIBILITY
- Component design
- Production/assembly techniques
- Testing
- Redundancy/backup
- Preventive maintenance procedures
- User education
- System design
ROBUST DESIGN- a power technique for
improving reliability. An engineering approach
focusing on the development of products,
mechanisms, and production equipment that
are insensitive.
CULTURAL DIFFERENCES- multinational
companies must take into account cultural
differences related to the product design.
MANUFACTURABILITY- is the ease of
fabrication and/or assembly which is important
for;
- Cost
- Productivity
- Quality
CONSURRENT ENGINEERING- is the
bringing together of engineering design and
manufacturing personnel early in the design
phase.
RECYCLING- recovering materials for future
use
- Cost savings
- Environment concerns
- Environment regulations
REMANUFACTURING- refurbishing used
products by replacing worn-out or defective
components;
- Remanufactured products can be sold
for 50% of the cost of a new producer
- Remanufacturing can use unskilled
labor
- Some governments require
manufacturers to take back used
products
DESIGN FOR DISASSEMBLY (DFD)-
designing products so that they can be easily
taken apart.
SERVICE- is an act, and something that is
done to or for a customer.

SERVICE DELIVERY SYSTEM- the

facilities, processes, and skills needed to
provide a service.

- Facilities
- Processes
- Skills
- Many services are bundled with
products

PRODUCT BUNDLE-the combination of

goods and services provided to a customer.

SERVICE PACKAGE- the physical resources

needed to perform the service.

TANGIBLE----- INTANGIBLE

- Services created and delivered at the

same time.
- Services cannot be inventoried
- Services have low barrier to entry
- Demand variability

SERVICE BLUEPRINTING- a method used

in service design to describe and analyse a
proposed service and a useful tool
conceptualizing a service delivery system.