Discuss and explain the importance of input resources in transformation of product
The operation of input resources in transformation of product or services is divided into facilities and
stuff and transformed resources which can be mix with some materials who has information, customers
and services that will put into business processes that satisfy customer needs with the mixture of
intangible goods or product and with intangible services with the balance of both terms the
transformation will surely rise which all operation are becoming with large supply which through the
contributions of each operation that satisfy end costumer requirements with a supplier relationship with
the operation and the business process that need to often cut across functionally based processes of the
product and services
Differentiate cost minimization to value maximization and explain and discuss how does it affect the
profit of the organization.
Cost minimization – aims to achieve the most cost effective way of delivering goods and services to the
required level of quality.
When doing a cost minimization on the profit of the organization the business is left with insufficient
capacity to handle and will have unexpected short term increases in demand which can slow down the
organization. The cost reduction by one department may surprise or annoy other function because if
they are not properly communicated and coordinated the organization may die.
Value maximization – it aims to achieve an individual net worth by increasing the share prices for the
common stock in which that individual has invested which increase the total value of the profit.
The ultimate goal of the marketing and retention effort is to maximize the revenues that’s the customer
generate for the company that will assume a stable relationship between revenue and profit. It need to
maximize the time, frequency and the value that need to provide customers with the product or services
they seek, at competitive prices and with terrific customer services that will obviously the best way to
ensure the profit of the organization and will remain with the company high value and maximize its
profit.
Discus the positive and negative effect of forecasting and technology in the operation activity.