Principles of Business Marketing and Finance Production Distribution

Production Activities • Product Research Applied Research -studies existing products to develop design improvements or new product uses Pure Research -research done without a specific product in mind with the goal of discovering new solutions to problems Product Design -new product idea is developed into a product to sell profitably Copyright © Texas Education Agency, 2011. All rights reserved 2

Production Planning Process • Production Resources -machines, tools, other equipment • Personnel -employees with

Inventory Management • Detailed account of a company’s materials, supplies, and finished products • Maintains the supply of all resources needed for production and the products produced Copyright © Texas Education Agency, 2011. All rights reserved 4

Manufacturing Procedures • Organizing the work area by type of process or assembly required • Improving Manufacturing – Need for faster production – Need for increased quality – Need for reduced costs Copyright © Texas Education Agency, 2011. All rights reserved 5

Continuous Process Improvement (CPI) • Increases the quality of work by reducing errors, inefficiencies, and waste • Achieves goals by improving the quality of work • Benchmarks-best practices among all competitors Copyright © Texas Education Agency, 2011. All rights reserved 6

Importance of Business Operation • Determines the Success or Failure of a Business Copyright

Types of Business Operations Facilities Management Just-in-Time Scheduling Logistics Safety & Security Information Management

Types of Businesses • Producers – Extractors – Manufacturers • Intermediaries-sell goods and services of producers to consumers and other businesses • Service Business-carries out activities that are consumed by its customers • Contingent Worker-no contract for long-term employment Copyright © Texas Education Agency, 2011. All rights reserved 9

Tools for Business Operations • Operational Plan – How work will be done – Who will do the work – What resources will be needed • Schedule-time plan for completing activities • Standard-specific measurement against which an activity or result is judged Copyright © Texas Education Agency, 2011. All rights reserved 10

Product Planning • Product-everything a business offers to satisfy a customer’s needs – Basic product – Product features-additions and improvements to the basic product – Options-customers are offered choices of features – Brand name-unique identification – Packaging-provides protection and security for the product – Guarantee or warranty-builds customer confidence Copyright © Texas Education Agency, 2011. All rights reserved 11

Product Planning Procedures • • Idea Development Idea Screening Strategy Development Production and Financial Planning • Limited Production and Test Marketing • Full-scale Production Copyright © Texas Education Agency, 2011. All rights reserved 12

Survey Says Assignment: • Select a product that is popular with your age group that you would like to start a business with. • Then prepare a five-question (non-leading questions) survey to determine feelings about the strengths and weaknesses of the product and possible ways the product could be improved. Ex: What cell phone brand do you prefer and why? Ex: If you could change one thing about your current cell phone it would be? • The survey should be typed and printed in class on Monday and given to at least 10 students. • Survey results will be turned in on Tuesday. Copyright © Texas Education Agency, 2011. All rights reserved 13