Process Design Matrix : A Service Industry Company And Young Living Essential Oils

Goals in the company are to find the right product for the customer’s particular needs and build a relationship with the customers

Process design focuses the organization on the issues that are most important, helps management and employees think critically and strategically, and generate the right level of consensus and commitment necessary to move the organization forward. The success of any organisation is dependent upon a sound understanding of its operating environment, and on well crafted and well executed plans.

Additionally, Starbucks focuses on the customer satisfaction aspect, setting them apart from their competition. The purpose behind an organization 's presence is to give items or administrations that address the issues of its objective clients and benefit them definitively. The part of clients is basic to the organization 's survival and achievement. Through the purchase choices they make every day, they select which organizations will flourish and which will fizzle. They likewise give profitable criticism to the organization about its items and client benefit level (Hill, 2017). This criticism empowers the organization to enhance what it offers and to think of altogether new answers for client needs in view of what its clients requested. For some organizations, clients additionally assume a key part in the organization 's advertising endeavors by prescribing the organization 's items or administrations to other potential clients (Hill, 2017).

In the manufacturing company of Wrangler Jeans (manufacturing environment), the output is better described as goods. These goods have a tangible sense to them. These goods to a consumer can be felt, seen, touched and manipulated as desired. However, with the services environment consumers are more of an intangible product offered. Plainly put these explanations give us the distinct difference between these two environments with regards to how the consumer is able to see these products. As an example with these companies Wrangler Jeans manufacturers pants that are worn by a consumer, whereas Verizon provides services for consumers including television and cell service.

Tangible goods, or rather manufactured goods, have been the dominant medium of exchange for centuries. However, recent decades have proved that it is no longer the case as there has been a prevalence of being service oriented (Vargo and Lusch, 2004:1-2). Services, as defined by Vargo and Lusch (2004), are  “the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (p.2).” Utilizing services gives businesses an edge, a competitive advantage, particularly in an evolving competitive market, something which Metalfrio is definitely part of (Vargo and Lusch, 2004:9).  Those businesses that learn to adapt tend to do well. In addition, Vargo and Lusch (2004) write this shift to services is also a shift from producer perspective to a customer perspective (p.2). Thus, it leads to more of a collaborative effort where co-creation leads to adding value to the service rather than a product having value (Vargo and Lusch, 2004:6). Also, customers rather develop relationships with those that can provide a range of related services over an extended period of time, thus allowing businesses retain their clients for the long term (Vargo and Lusch, 2004:13). Overall, service oriented marketing is a direction that businesses should be headed towards to ensure that they can remain relevant and competitive in the

Goods and services are both areas of operations, this means that they will change the state of any input into output. In order to achieve this they will need to have a transformation process according to the type of service or goods they have to offer this is all part of satisfying customer needs.

Every company will focus on supplying a service, product, or both. How and where the product is made plays a crucial role in the company’s success. In order to help visualize how the products are made process maps are formatted. These process maps can help to identify areas that need improvement. In order to implement improvement, process development will be implemented. The form of good that a company supplies is also important and to ensure that the best product is distributed product development is conducted. Target Corporation is a complex company, which provides consumers with their necessities.

Through sustaining the customer relationships, leaders of the company have realized that “becoming nearer to the consumer” is vital for the progression.

All organizations produce goods or services through the transformation process. Simply stated, every organization has an operations system that creates value by transforming inputs into finished goods and services outputs. For manufacturers, the products are obvious: cars, cell phones, or food products. After all, manufacturing organizations produce physical goods. It’s easy to see the operations management (transformation) process at work in these types of organizations because

2. The difference is that for service company they must provide customer satisfaction and for a manufacturing company they must provide product satisfaction. To achieve global success a service company must have a good communication with their customers by having well trained employees. The element is having excellent customer service. An obstable to global expansion is the high

Why do I say the customer? Because it is apparent that in modern times more and more businesses alienate the customer and only focus on profit. Take for example the success of Sam Walton, the founder of Wal-Mart, who had one philosophy, “Buy low, sell cheap, high volume, fast turn” (Packer, 101).  Walton figured out that people were cheap and he exploited that knowledge to raise his riches. Wal-Mart grew exponentially fast and lost management over its roots, what once started as a business for people in need with perhaps great customer service is now known for driving smaller stores out of business with terrible customer service.

The market research team has also discovered that Starbucks’ customer base is evolving. The customers tend to be younger and less well educated. Regardless of this insight, customer behavior remains the same. According to Figure A in the case study, the typical customer visits just five times a month. I believe this is in part due to Starbucks’ inability to meet customer expectations and increase satisfaction. In order for the company to increase the frequency of customer visits, customer satisfaction must improve. Thus, the ideal, most profitable consumer for Starbucks is one who is a

The lean principles can be applied to service operations, as service operations are “organized systems of production processes” with the same potential for improvement through implementation of lean precepts as manufacturing operations (Benson, 1986 in Duclos et al., 1995). Manufacturing employ processes that add value to the inputs used in creating final products, which is in a way similar to services (Canel et al., 2000). Silvestro et al. (1993) classified service processes into three major headings of professional, service shop and mass. These three majors headings are further classified into six different dimensions of equipment/people focus as the main element of the service delivery is provided by equipment or people; customer contact time per transaction; the

The major differences between goods and services in operations management are their goods, inventory, customers, labor and location. One major difference in the tangibility of their output. For example, a service firm would entail consultancy, training or maintenance, this is an intangible product. These services are not tangible object, but still provide a “product” for the customer. A good would be a tangible for the consumer. A company manufactures a certain product and the consumer is able to physically receive it. For example, A manufacturer such as Coke, Nestle, Honda and BMW. Another difference between a service and goods is their inventory. Service forms do not hold inventory, they provide a service when their customers ' need it. Manufacturers produce goods which creates an inventory. Inventory levels are created through supply and demand. A lot of companies only have a certain level of inventory in order to utilize their “space”. In addition a major difference between goods and services is their customer relationship. There is a high customer contact in the service industry. The service industry caters to their clients; meaning they adjust their service to the needs of the customer. For example, a consulting firm may only need to do four hours of work with a certain customer and twelve hours with another. In manufacturing goods there is low customer contact. Manufactures can produce their customers goods without having them submit an order, because they can

In the past, manufacturing firms have increasing invested in R&D, employee training, modernization of machines and quality control to increase their value proposition to customers. However, with the decrease in transportation costs and development of infrastructure in low-labour cost locations, manufacturing is facing a very stiff competition for sustenance in developed economies. This has induced a change from a transactional mind-set to a relationship mind-set in manufacturing firms which aim increase their value proposition to customers by providing services (Quinn et al. 1990). This business model transformation of adding services as a “pervasive part” of the manufactured product was termed as servitization by Vandermerwe and Rada (1988). In order to provide decision support to managers, researchers have been studying various aspects of this business model transformation phenomenon. In our literature review we studied articles that identify the precursors of servitization.