OPERATIONS MANAGEMENT

operations management

2007

Operations Management

Introduction

The development of communications and internet technologies has generated a new model of the world 's economy , bless economy . The terminology refers to the existence of cross-nations or even cross-continents trade , commerce , and other economics process . In internet era , companies need to remember that the Web is inherently global - when a company launches a Web site , it is accessible by a worldwide audience

The situations suggest that internet has eliminated the countries boundaries in to enable international marketing . However , the level

of importance of location is different from one industry to another . For instances , companies in service sectors is more dependable to locations than those in manufacturing firms are . This is because customers are likely to reach the nearest company 's stores or outlets when they need to buy something it suggests that it requires careful attention for companies in services sectors

Concerning location issue , this will discuss about the importance of locations in service and manufacturing sectors . This will highlight those companies in service sectors have intense needs to have the best locations that their counterparts in manufacturing sectors of business Importance of Location in Marketing : Service Sectors and Manufacturing

Reading many success stories of entrepreneurs of the world , it always begins with a place where the business starts . HBS professor Nancy Koehn says when Estye and Joe Lauder started their business outside New York City . The couple was determined to build a large market for premium cosmetics

One of the earliest and most important decisions that the Lauders made about the brand concerned its distribution . Estye believed that where her products were sold would have significant consequences for the brand 's future and the company 's larger prospects . She ruled out drugstores , supermarkets , and other place to which she was strongly committed . Even if they had wanted to sell in chain stores , the Lauders could not afford the large sales force necessary to service such outlets (2004

What the story tells us is that business related to location where it begins , moves , and stays . Place here could be cities , provinces countries , continents , small stores , supermarkets , or hypermarkets

Regarding the importance of locations for companies in service sectors Gale (2006 ) reveals that companies in service sectors usually have two forms of products : tangible and intangible products . While , tangible products are goods that they sell , the intangibles one are service performances that the companies provide to customers

Due to the nature of companies in service sectors that deal with intangible goods or service performance , the most challenging issues in service sectors is about locations . This is true since site locations play important role in determining the success of the service company since usually the companies dictated by the location of consumers , which means they search for locations that approach the target customers locations or presences . In addition , service companies have also many barriers to entry especially regarding the need for multiple locations in addition to other factors like technology and quality...