Week 6 – 7

Product

Anything that is offered to the market to satisfy a need or want.

Product Planning and Development Process

Stages that a product goes through including Idea Stage, Concept Stage, Product Development Stage, and Test Marketing Stage.

Idea Stage

The phase where the need for an idea is determined and promising ideas are identified.

Concept Stage

An idea is developed through interaction with consumers, and the refined product idea is tested for customer acceptance.

Test Marketing Stage

Provides actual sales results indicating customer acceptance.

Production Plan

A detailed plan that outlines a company’s production process, including equipment requirements, production capacity, and labor needs.

Primary Production Objective

To optimize resource utilization, reduce production costs, and improve productivity while maintaining quality.

Transformation Processes

Processes that convert inputs into outputs through various operations.

Location Criteria for Retail and Service Businesses

Factors such as trading area, retail compatibility, competition level, transportation network, and visibility that influence business location decision.

Central Business District (CBD)

The traditional center of a town, characterized by high customer traffic but also intense competition.

Sole Proprietorship

A business owned and managed by one person, who receives all profits and is responsible for all risks and losses.

Partnership

A business owned by two or more individuals who share capital, management responsibilities, profits, and losses.

Corporation

An artificial being created by law with rights, responsibilities, and limited liability for shareholders.

Cooperative

A group of individuals who voluntarily come together to start a business for mutual benefit, each contributing capital.

Management Team

A group of individuals with complementary skills working together to achieve the business objectives.

Span of Control

The number of subordinates reporting directly to a supervisor, affecting management structure and communication.

Flat Organization

An organizational structure with few management layers and a wider span of control, improving communication.

Tall Organization

An organizational structure with many layers of management and a narrower span of control, allowing for better supervision.