BU121 Study Guide - Final Guide: Critical Success Factor, Ford Model T, Greenwashing
Document Summary
Critical success factor provide quality goods and services. Production: creation of products by turning inputs into outputs, which are the final product. Person"s unsatisfied need or possession in need of care. A part of the process, greater contact = greater impact. Intangible, value the experience customized to each customer"s needs. Tangible (can be stored) can be customized or universal product. Manufacturing: set capacity ahead of demand. In short term, turn away customers or outsource at lower margins pepsi contracts out when they can"t meet demand: seasonality. Services: high contact set capacity to peak demand (restaurants, low contact set capacity to average demand (dry cleaning) Old style approach -> ford model t. Stable market conditions are ideal: needed since very little flexibility to make changes -> think about factors of production. Effectiveness: relies on standardization, mechanization and specialization, focused on keeping low costs and how you produce not effectiveness and what you"re producing -> focuses on achieving economies of scale.
