Convenience

service organiza-
tion
is one that transforms resources into an intangible output and creates time or
place utility for its customers. For example, E*Trade makes stock transactions for its
customers, Hertz leases cars to its customers, and local hairdressers cut clients’ hair.
In 1947, the service sector was responsible for less than half of the U.S. gross
national product (GNP). By 1975, however, this figure reached 65 percent, and by
2013, it was over 80 percent. The service sector has been responsible for creating
approximately 42 million new jobs in the United States since 1990.
4
Managers have
come to see that many of the tools, techniques, and methods that are used in a
factory are also useful to a service firm. For example, managers of automobile plants
and hair salons both have to decide how to design their facilities, identify the best
locations for them, determine optimal capacities, make decisions about inventory storage,
set procedures for purchasing raw materials, and set standards for productivity and
quality.
manufacturing
A form of business
that combines and
transforms resource
inputs into tangible
outcomes
service organization
An organization that
transforms
resources into an
intangible output and
creates time or place
utility for its
customers
460
Part 5:
Controlling
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
www.MyEbookNiche.eCrater.com

---