Podcast
Questions and Answers
Which of the following best describes 'operations' in the context of entrepreneurship?
Which of the following best describes 'operations' in the context of entrepreneurship?
- The act of securing funding for a new business venture.
- The interrelated business functions of production, procurement, and distribution. (correct)
- The process of creating a prototype for a new product.
- The marketing strategies used to reach target customers.
A company that primarily offers legal advice is an example of:
A company that primarily offers legal advice is an example of:
- Pure tangible goods
- Goods-and-services
- Pure services (correct)
- Consumer products
Which of the following scenarios exemplifies the concept of 'procurement'?
Which of the following scenarios exemplifies the concept of 'procurement'?
- A bakery sourcing flour and sugar from local suppliers. (correct)
- A restaurant serving meals to customers.
- A software company developing a new app.
- A retail store displaying its products for sale.
Which component of the 4M's focuses on the structured processes within production, procurement, and distribution?
Which component of the 4M's focuses on the structured processes within production, procurement, and distribution?
A small business owner is deciding what type of oven to purchase for their bakery. This decision relates to which of the 4M's?
A small business owner is deciding what type of oven to purchase for their bakery. This decision relates to which of the 4M's?
Which of the following describes 'distribution' in a business context?
Which of the following describes 'distribution' in a business context?
Which type of product requires minimal comparison and buying effort from consumers?
Which type of product requires minimal comparison and buying effort from consumers?
Materials and Parts, Capital Items, and Supplies and Services are:
Materials and Parts, Capital Items, and Supplies and Services are:
What is a prototype in the context of entrepreneurship?
What is a prototype in the context of entrepreneurship?
A company's profits and losses at a specific point in time can be found on the:
A company's profits and losses at a specific point in time can be found on the:
Flashcards
Operations
Operations
Interrelated business functions including production, procurement, and distribution of goods/services.
Production
Production
Manufacturing a product or producing a service to offer to target customers.
Product
Product
Something offered to a market for acquisition, use, or consumption to satisfy a want or need.
Service
Service
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Procurement
Procurement
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The 4 M's
The 4 M's
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Convenience Products
Convenience Products
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Prototype
Prototype
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Design Thinking
Design Thinking
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Balance Sheet
Balance Sheet
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Study Notes
- Operations are the interconnected business functions of production, procurement, and distribution of goods/services
- Production is the process of manufacturing a product or producing a service for target customers
- A product is what’s offered to a market for acquisition, use, or consumption to satisfy a need
- A service is a product consisting of human-related activities, benefits, and satisfactions offered for sale that don't result in ownership of a commodity
Market Offering Forms
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Pure tangible goods have no accompanying services like toys and soaps
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Pure services are primarily the service itself, such as legal or medical advice
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Goods-and-services are combinations found in places like car dealerships, hotels and restaurants
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Procurement involves sourcing supplies and materials for production or service delivery, including inventory handling and storage
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This involves identifying and choosing supply sources for manufacturing or service
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Distribution is the physical transport or flow of materials and communications to reach customers
4M's
- Methods refer to clear, detailed procedures in production, procurement, and distribution
- Machines are the equipment and facilities to make the product or service
- Materials are the necessary supplies to produce the product or service
- Manpower is the workforce needed to perform operations
Consumer Products
- Consumer products includes the products and services bought by consumers for their personal consumption.
Types of Consumers Products
- Convenience products are readily available, frequent purchases with minimal effort
- Shopping products are less frequent purchases
- Specialty products have unique characteristics and brand identification
- Unsought products are unknown to most customers
- Shopping products are of a nature that are usually purchased with minimum effort and comparison
Industrial Products
- Industrial products are purchased by organizations for further processing or business activities
Groups of Industrial Products
- There are two types of Materials and Parts: raw materials, and manufactured materials and parts
- Raw materials are agricultural or natural resource products
- Manufactured materials consist of manufactured components, mostly sold to industrial users
- Capital items are industrial products like fixtures and infrastructure for production
- Supplies and services in the industrial field are convenience products
Other Key Terms
- Market segments classify customers by demographic characteristics
- Entrepreneurs strive to compete successfully for more customers
- A prototype is an initial product/service version to test functionality and market acceptance
- Design thinking is a problem-solving approach used by designers for products/services
- A balance sheet shows a business's financial performance on a specific date
- An income statement shows profits and losses at a specific time
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