Questions and Answers
What is the main purpose of competitive advantage for a firm?
Which of the following is NOT a characteristic of a distinctive competency?
What must firms provide to meet order qualifiers in a market?
Which example demonstrates product leadership as a distinctive competency?
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Which criteria must a characteristic meet to be considered an order winner?
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What are competitive priorities?
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Which of the following best defines an order qualifier?
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How do competitive capabilities differ from competitive priorities?
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What is the implication of failing to meet order qualifiers?
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Which company's distinctive competency is characterized by low cost?
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Study Notes
Services vs. Goods/Products
- Goods can be resold, while reselling services is uncommon.
- Goods can be inventoried; services cannot be stored.
- Some quality aspects of goods are measurable; many service quality aspects are subjective.
- Selling goods is distinct from production, whereas selling services is often part of service production.
- Goods are transportable, while it is the service provider, not the service itself, that can be moved.
- Production of goods can often be automated, but service production is typically harder to automate.
- Goods are tangible, in contrast to services, which are intangible.
- Customer interaction is usually lower for goods and higher for services.
Manufacturing vs. Service Organizations
- Manufacturing is focused on tangible outputs; service organizations emphasize act-oriented outputs.
- Customer contact is generally low in manufacturing and high in service.
- Uniformity of output is high in manufacturing, while it tends to be lower in services.
- Labor content per unit is low in manufacturing but high in services.
- Measuring productivity is easier in manufacturing compared to services.
- Quality control and correction of problems are simpler in manufacturing.
Similarities in Manufacturing & Services
- Both sectors utilize technology.
- They confront issues related to quality, productivity, and customer response.
- Demand forecasting is necessary in both fields.
- Capacity, layout, and location are common concerns.
- Both sectors involve customer and supplier interactions, as well as scheduling and staffing.
Product/Process Continuum
- Organizations fall along a continuum from product-based (like automobile manufacturers) to service-based (like consultancies).
- Hybrid organizations exhibit characteristics of both manufacturing and service (e.g., fast-food chains).
Operations and Operations Management
- Operations encompass the processes that create goods and services, transforming inputs into outputs.
- Operations management oversees planning, coordination, and control of resources for production.
- It is crucial for both manufacturing and service organizations.
Transformation Process
- Types of transformation processes:
- Physical (manufacturing)
- Locational (transportation)
- Exchange (retail)
- Physiological (healthcare)
- Psychological (entertainment)
- Informational (communication)
Relevance of Operations to Specialization
- Knowledge of operations management is vital in various fields:
- Accounting: understanding operational fundamentals.
- IT: applying technology in operations.
- Strategy and General Management: incorporating scheduling and quality processes.
- Economics: focusing on efficient processes.
- Marketing: ensuring quality and delivery for effective marketing.
- Finance: managing budgeting and cost savings.
- HR: handling administrative interactions.
- Data Science: analyzing operations for improvements.
- Communication: effective information management is crucial.
Feedback Mechanisms and Outputs
- Effective feedback mechanisms can improve output quality.
- Outputs could include sales increases, reduced complaints, and customer satisfaction metrics.
Transformation Process for Organizations
- Service organizations (e.g., MBA institutes) focus on transforming student inputs into valuable attributes like leadership and analytical skills.
- Hybrid organizations (e.g., restaurants) must manage both service quality and food product quality, thriving on customer satisfaction to stay competitive.
Competitive Advantage and Priorities
- Competitive advantage comes from delivering greater value than competitors.
- Competitive priorities include cost, quality, time, and flexibility.
- Distinctive competencies differentiate a business, providing undeniable market access or increased customer value.
Order Qualifiers and Winners
- Order qualifiers are essential characteristics that allow a product/service to be considered by customers.
- Order winners are key attributes that secure customer purchases, requiring companies to exceed competitors in these areas for success.
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Description
This quiz explores the key differences between goods and services. It covers aspects like resale potential, inventory management, and quality measurement. Test your understanding of these fundamental concepts in economics and business.
