Service Operations and Business Ownership

These flashcards cover essential concepts from service operations, business ownership structures, marketing principles, and financial management relevant to your upcoming exam.

Intangibility

Services cannot be touched or seen before purchase; they are experienced.

Inconsistency

Service quality can vary depending on who provides it, when, and how.

Inseparability

Services are produced and consumed at the same time; you can’t separate the provider from the service.

Perishability

Services cannot be stored for later use; once the opportunity passes, it’s gone.

Make to Order

Products are made after the customer orders it.

Mass Customization

A standard base product with customizable features.

Mass Production

Large standardized product manufacturing.

Sole Proprietorship

Owned and operated by one person, with liabilities solely on that person.

General Partnership

All partners share liabilities and management.

Limited Partnership

Some partners have limited liabilities and no management role.

Franchise

A business model that allows people to operate under an established brand.

Four Ps of Marketing

Price, Place, Product, Promotion.

Target Market

The specific customer segment targeted for a product.

Segmentation

Dividing the market into distinct groups based on criteria like demographics and psychographics.

Quality Control

Establishing standards and processes to maintain product/service quality.

Operations Management

The management of processes that transform inputs into outputs.

Outsourcing

Hiring another organization to perform tasks, provide services, or produce goods.

Gantt Chart

Visual representation of a project schedule, showing tasks against time.

PERT Chart

Analyzes task sequences and dependencies, highlighting relationships and critical paths.

Equity Financing

Funding that doesn’t carry repayment obligation, providing extra working capital.

Debt Financing

Funding that doesn’t require giving up ownership but needs to be repaid.