Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
Define quality. |
A product that comforts to what the customer expects. |
|
What can quality do if the products are manufactured without mistakes? |
Reduce costs, as the cost of fixing the problem is not incurred. |
|
What does quality impact on? |
Dependability. |
|
Define speed. |
Refers to the time difference between a customer's request for a good/service and when it is actually received. |
|
Give an example as to why speed can often be an important consideration when customers choose between competing products. |
E.g. A customer needs a hip replacement, so therefore chooses the private hospital over the public hospital as the waiting period is shorter. |
|
Why can speed impact on the cost structure of a business? |
Immediate supply requires inventory, which increases expenses. |
|
Define dependability. |
Means consistently good in quality or performance. |
|
Does a lack of dependability drive customers away? Give an example. |
Yes E.g. Public transport not arriving on time, or late parcel deliveries. |
|
What is the positive of dependability? |
Businesses gain a reputation over time for consistently good quality or performance. |
|
What can happen if the dependability of a business has at least one mistake? |
This can impact on the reputation of a business. |
|
Define flexibility. Give an example. |
The ability to change things like the product/service the business offers E.g. The mix of products, the volume of products manufactured and the speed at which they are delivered. |
|
Why is flexibility important? |
Businesses operate in a dynamic environment. |
|
Define customisation and give an example. |
The ability to modify a standard product to meet individual needs of the customer E.g. Dell's 'build one to order' campaign. |
|
What is customisation a compromise between? |
The cost advantages of volume production and more effectively meeting customer needs by providing variety. |
|
All businesses strive for lower ... because this is one important way to be more competitive. Fill in the gap. |
Costs. |
|
What is the focus of low-costs? |
Productivity. |
|
What is the goal of cost? |
To get greater outputs with the same amount of inputs. |
|
Give three examples of ways to improve productivity. |
1. Training (giving employees the skills needed to do their work more effectively) 2. Using lower cost inputs (locating in China etc.) 3. Eliminating waste (improve quality = less waste due to work not having to be redone) |
|
What happens if a business fails to constantly improve the product/service in a competitive market? |
It will almost invariably lead to a loss of customers as competing businesses improve their product. |
|
Name and define the six stages of developing a new product/service. |
1. Generating ideas: Can come from a variety of sources E.g. Changes in technology, research and development, market research, customer suggestions, actions of competitors. 2. Concept development: Brainstorming. 3. Concept screening: Evaluating the concept and deciding which are worth developing and which should be dumped. 4. Preliminary design: The first attempt at setting out the specific product components and setting out the processes that will make the product. 5. Design evaluation and improvement: Evaluating the preliminary design and trying to improve it before it is tested in the market place. 6. Prototyping and final design: Testing the improved design in the market place before taking the risk of full scale production. |
|
Define supply chain management. |
Those activities that procure materials and services, transform them into products/services and deliver them to customers. |
|
What are logistics concerned with? |
All the businesses activities that acquire the materials, moving and storing them. |
|
Name the four distributing systems. |
1. Trucking 2. Rail-road 3. Shipping 4. Airfreight |
|
How can logistics be a source of competitive advantage? |
If the business can do their logistics more cheaply than their competitors. |
|
Define e-commerce. |
Refers to the use of the internet for all aspects of commercial transactions. |
|
Define e-procurement. |
Refers to electronic methods, primarily through the internet, used in the purchasing process. |
|
Define global sourcing and give reason for businesses adopting it. |
Where products are acquired outside the home country, as it reduces costs, due to sourcing from low-wage countries. |
|
Name four advantages of outsourcing. |
1. Reduce costs 2. Access to experience 3. Provide greater flexibility 4. Access to the best technology |
|
Name five disadvantages of outsourcing. |
1. Increased transportation costs 2. Loss of control in manufacturing 3. Danger in future competition 4. Human resource problems 5. Language problems can be significant |
|
Name and define the two types of technology. |
1. Leading edge: The foremost position, the very best and latest way of doing things. 2. Established: The way something has been done for some time. |