Page 613 - Introduction to Business

CHAPTER 16 Managing Business Operations 587

Portfolio Projects

Exploring Your Own Case in Point Starting Your Own Business
After reading this chapter, you should be ready to After reading this chapter, consider these operational
answer several fundamental questions about the aspects of your startup.
company that you have decided to study in depth. 1. Of the products that you plan to offer, which are
1. What percentage of the value in your company’s mostly goods and which are mostly services?
products comes from goods and what percentage 2. What is going to be your business strategy in terms
comes from services? of price, cost, and quality?
2. What process type(s) does it use? How is its 3. What type of production process are you going to
production capacity measured? use? What is going to be the capacity of your
3. Where is the company located? What is its layout? business? Where is your business going to be
4. What scheduling decisions does it face? How does located and what is going to be its layout?
it define quality? 4. How are you going to decide on your production
rate? Will you need to use MRP? Which items will
be produced in-house and which items will be
outsourced? How are you going to select your
suppliers? How will inventory be managed? What
schedules will be needed and how is quality going
to be defined and controlled?

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