Business Essentials, 12/e

Summary of Learning Objectives

Objective 7-1

1. Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.

Operations (or production) refers to all the activities involved in making products—goods and services—for customers. In modern societies, much of what we need or want is produced by service operations, where success or failure depends on provider-customer contact. Many companies, such as General Electric, provide both goods and services. Employment has risen significantly in the service sector over the past 10 years. However, the 11 percent of the U.S. workforce employed in producing goods generate 32 percent of national income.

Production or operations adds customer value by providing ...