SGMT 3000 Lecture Notes - Lecture 4: Breakcore, Inventory Turnover, Gorilla Glass
24 Feb 2017
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Document Summary
Actions that managers take to improve the efficiency and effectiveness of one or more value creation activities. M(cid:272)do(cid:374)ald"s innovator in fast-food: responsive to customer needs, efficiency achieved through standardization of making the food and working closely with suppliers thus, lowered costs and prices while offering reliable quality regardless of location. Economies of scale: reductions in unit costs attributed to larger output. Fixed costs: costs that must be incurred to produce a product regardless of level of output. Large-scale production allows achieving greater division of labour and specialization. Specific employees are devoted to specific tasks. Specialists can execute a task more efficiently than generalists. Diseconomies of scale: unit cost increases associated with a large scale of output. A result of bureaucracy that is associated with large companies. Learning effects: cost savings that come from learning by doing figuring out more effective ways to accomplish tasks through time and experience.
