Organizing to Produce Goods and Services

Student Tip

Operations is one of the three functions that every organization performs.

To create goods and services, all organizations perform three functions (see Figure 1.1). These functions are the necessary ingredients not only for production but also for an organization’s survival. They are:

  1. Marketing, which generates the demand, or at least takes the order for a product or service (nothing happens until there is a sale).

  2. Production/operations, which creates, produces, and delivers the product.

  3. Finance/accounting, which tracks how well the organization is doing, pays the bills, and collects the money. ...

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