Operations Strategy: Product Design & Process Selection
ITEM-13: Conduct of Operations – Strategic Decisions
Design and Product Development
The goods and services a company can produce are varied, and their nature depends largely on the productive process design. If the company’s product meets consumer needs in quality and functionality, the company will see increased turnover. Product selection is key for organizational success. After selecting the product, the next step is designing it to meet market requirements, environmental constraints, and organizational
Read MoreEconomic Activities: Production, Marketing, and Consumption
Satisfying Needs Economically
Consumers seek to satisfy their needs with the least expense. The price of products depends on the quantity of goods and demand. When demand increases, prices rise.
What is Economic Activity?
Economic activity encompasses all human actions designed to meet needs. It involves finding the quickest and least expensive way to obtain products and services, given limited resources.
Production, Marketing, and Consumption
Production
Production combines natural resources, technology,
Read MoreMarket Economy Firms: Functions, Structure, and Strategies
Business Functions in a Market Economy
Firms coordinate production factors in a market economy. A fundamental feature of economic activity is the specialization of individuals in different roles to produce goods that meet the needs of the community, creating or increasing the usefulness of property. By transforming raw materials into products, companies create or increase the value of property, enhancing their capabilities to meet human needs. Firms take risks by paying in advance for the resources
Read MoreSales Transaction Management: Phases and Documentation
Administrative Management
- Assumes the following areas:
- Knowledge of documentation.
- Preparation of documentation.
- Treatment of documentation.
- Registration of documentation.
- Archiving of documentation.
- Control of the management process. In our subject: the sales transaction.
- Obligations inherent in the processes.
The Sales Transaction
- Is the process directly associated with the object. The company buys raw materials, goods, services, later sold to the market as processed product or service.
Phases of Sale
- Knowledge
Starting a Business: Essential Elements for Success
Business Project Essentials
A business project involves mobilizing material, human, and financial resources, assuming risks, and developing personal skills. It requires planning and aims to develop an economic activity for profit or social benefit.
Key factors for productive economic activity:
- Natural Resources: Raw materials, energy, supplies.
- Labor: Manpower and time dedicated by workers.
- Capital: Goods and financial resources needed for production.
- Organization and Entrepreneurship: Managerial, administrative,
Asset Property Classifications
Mass Property of Assets
Fixed or Non-Current Assets
Intangible Fixed Assets
These are assets that the company needs to produce, but do not have a corporeal materiality, such as a patent or a brand.
Expenditure on R&D
Costs of research are original and planned investigations that seek to discover new knowledge and understanding on scientific or technical grounds. Expenditure on development is the concrete application of achievements in research until commercial production begins.
Goodwill
A set of immaterial