Management process
the series of actions or functions taken to achieve a particular goal or objective
management processes
what is operations management
all the activities in which managers engage to produce a good or service
the 3 approaches to quality management are..
quality control, quality assurance, and quality management
a specific group of customers on which businesses concentrate their marketing efforts
target market
product, price, place and promotion
4p's
operations, marketing, finance and human resource
4 key business functions
distinguish between a good and a service
a good is tangible, service is intangible
the use of a system so that business achieves set standards in production
quality assurance
aim of marketing
satisfy the needs and wants of the consumer
the firm tries to determine what price the market is prepared to pay for the product
demand pricing
the use of external sources or businesses to undertake business functions or activities for the business
outsourcing
3 steps in the production process
inputs, transformation and outputs
why is quality control important for the business
it reduces problems and defects in the product by using inspectors at various points of the production process
when the total market is subdivided into groups of people who share one or more characteristics
market segmentation
The cost price is increased by a fixed percentage to arrive at the selling price
cost based pricing
each function relies on the others to perform effectively
interdependence of the key business functions
what are the two different types of inputs
transformed (materials, information, customers) and transforming (human resources and facilities)
benefits of implementing quality management practices
reduce waste and defects, reduce costs, increases productivity and profits, improves reputation and customer satisfaction
when the market is segmented based on the characteristics of the population
demographic
how do you calculate cost of production
cost+cost x markup % = price
transformation
process in which business undertake to gain understanding of consumers needs and wants
market research
two aspects of quality improvement
Continuous improvement
distinguish between mass, segmented and niche markets
In a mass market, the seller mass-produces, mass-distributes and mass-promotes one product to all buyers.
A segmented market is when the total market is subdivided into groups of people who share one or more common characteristics
The niche market is a further segmentation of the already segmented market.
the perception of the level of quality of a product in the mind of the consumer compared to alternative products on the market that competitors are offering
positioning