DEVELOPING GOOD BUSINESS SENSE
MARCH 20, 2014
INSTRUCTOR: DR. SHONDRIA WOODS-McAFEE
Each business has a way that it operates, an operation and materials management (OMM) process, which is unique to each company. It is a way that the company operates. It is the input and output process. I will be going over three different companies and discussing their unique operations and what they entail. (Jones, 2007)
The three companies I will be using for my examples are Subway, an Optometrist office, and an Old Navy clothing store.
For this company I believe they would use an OMM that was the most beneficial for their ...view middle of the document...
The optometrist would then do the custom procedure, and that would require some specialty equipment. To keep up with advances in eye technology there would be a need to upgrade equipment periodically. The operating costs for this business would be relatively low after the large initial costs to start up and acquire the necessary exam equipment and things of that nature. The optometrist would order patient specific lenses directly from the manufacturer at a discounted rate and charge the customer, or the customers insurance anywhere from $150 and up for the exam, then the cost of the lenses and frames. There would be a certain number of exams needed to fulfill any one person’s optical needs. I think the cost for operating and managing this type of business would be relatively simple. The makers of the frames would supply the doctor with samples and there would only be orders placed based on the customers need which reduces and actually eliminates the amount of waste of any type of unused product which reduces costs.
For this kind of company the highest cost for operating would be the initial startup cost for the exam equipment and the lease of the space as well as the pay for the employees. Because the doctor would most commonly bill insurance companies, they would be most likely paid very regularly.
Old Navy would cost the most to operate of the three types of business that I have chosen. The cost to manufacture the products would e relatively high as you need many manufacturers for the process of making all the products, and the cost to use and run the machinery and the cost for the employees. The company...