The economy can be analyzed using both market-driven approaches and production -driven for the classification of the sector. The North American Industry Classification System (NAICS) uses a market-oriented approach; the older Standard Industrial Classification (SIC) uses a production-driven approach.
In the context of a market-oriented approach, the economy includes goods-producing and service-providing industries. Production of goods industries include: natural resources and mining, construction and manufacturing; industries provide its services include wholesale and retail trade, transport (and storage), utilities, information, financial activities, professional and business services, education and health services, leisure and hospitality, and public administration.
As part of a production-driven approach, the economy includes product-driven and service-driven industries. Product-driven industries include companies that manage inventories available for sale as primary activities (regardless of whether they turn or not). According to this approach, the industries of retail, wholesale, and food are product-driven. (The kitchens of food service providers are equivalent to the factories.) Product-driven companies can have large cost accounting practices and operations to inventory management.
classifications of the sector can be applied to an enterprise as a whole (the primary sector), and to establishments within it, which can be several secondary industries. The plants are facilities that include plants (factories and warehouses) and subsidiaries (retail and wholesale outlets).
For example, the hospitality industry is based on the services; as part of the production-driven method, the bar and restaurant establishments within a hotel are product-driven. The entertainment industry is based on the services; as part of the production-driven approach, the retail establishments and bars within a theater are product-driven. The health sector is based on the services; as part of the production-driven approach, the establishment retail pharmacies within a hospital is a product-driven. According to the market-oriented approach, all these plants are a provider of services.
For example, a production company is producing goods in the context of a market-oriented approach, and product-driven approach with a production-driven. If you also operates a delivery system retail, stores are service providers under a market-oriented approach, and product-driven approach with a production-driven. If all sales revenue comes from its products, the company has two primary industries. However, if forced to choose, the selection should be based on basic skills - activities that it performs well. The company can be divided into two separate units: the production and merchandising. The merchandising unit is a unit of production internal customer. However, depending on the strategy and policy, the production unit could sell products to wholesalers and other retailers, and the merchandising unit could buy products from other manufacturers and wholesalers. As part of a market-oriented approach, the production unit is the production of goods and the merchandising unit is a provider of services, as part of the production method-driven, the merchandising unit is a product- driven.
The make-up of the economy changes overtime as newer industries emerge and grow older and more mature industries and decline. For example, the manufacturing industry is shifting from vertically integrated strategic outsourcing. strategic outsourcers can produce specialized components and assemble finished products. However, outsource the production of components for the utility of scale producers of specialties, strategic outsourcer can reduce production costs.
biotechnology and nanotechnology industries are emerging. The information industries are growing as the technology becomes increasingly ubiquitous, and knowledge is packaged in digital products. Knowledge is information that has been learned and maintained. In the future, knowledge will be retained for a long time in electronic form.
Products and services ...
The term "product" is associated with something that is tangible - the inventory resulting from agriculture, mining and drilling, construction, and production activities. The outputs are either finished products or components that are assembled into final products in downstream processes within the company or its customers.
The term "service" is associated with something that is intangible - capabilities is delivered to the point or time of sale, or shortly thereafter, or as a support service. Support services can be purchased at the sale for downstream use, or later, and are made up of elements such as warranties beyond those bundled with the product, preventive maintenance, and routine and extraordinary cleaning.
Features and characteristics of the products are easier to distinguish from those of services, events or activities that are driven, and may occur in the future.
The term "time of sale" means that when it's done a contractual agreement or contract between a buyer and a seller, and does not necessarily mean that when revenue is recognized and earned. Revenue is recognized and gained accordance with the accounting principles that fit the range of services, which can be a period of time.
a commodity is a product or service that is indistinguishable and interchangeable with another of the same type because there is little or no added value. Many raw materials are natural, such as products, minerals, oil and gas matters. Services can be commoditized too. The distinguishing factors of a supplier of raw materials are convenience, quality of service, and price.
Product-driven companies also offer delivery and support services. Delivery services include arranging for transportation, dealer preparation, training, and giftware. Support services include cleaning, repair and maintenance. To remain competitive over time, companies need to add the service with their product offerings that exceed customer expectations. However, if customers require these services, they must become part of the standard package. For example, toilet and color TV services are included in modern hotel rooms, even if the main purpose is to provide a place to sleep.
Although services are intangible, their effects are not. Transportation services move people, cleaning services remove dirt and stains, and repair services restore the work order items. Services require facilities, equipment and supplies that are bundled in when products are grouped, the company pays sales or use tax, if applicable .; when products are sold with services, the customer usually pays sales or use tax, if applicable.
service-driven businesses can produce tangible results. For example, dry cleaners produce clean clothes and pressed; professional service firms, such as architects, accountants, lawyers and consultants to produce reports; and engineers produce design drawings that can be processed in plants, equipment or other tangible products.
The recording and movie industries employ technologies that can capture the sound and images. As of laboratories, these industries turn science into art. So, live entertainment shows (services) can be transformed into registered products. As a result, an event or activity can be reproduced, duplicated, distributed, and repeated to the public-at-large for an indefinite period. digital products behaviors affect production, distribution and purchase of traditional consumers, and endangering the intermediaries.
process control and information technologies have enabled seamless integration between designers and manufacturers. The process of "design-to-construction" becomes ubiquitous as design technology and computer manufacturing (CAD / CAM) allow a designer in one place to transmit the specifications to manufacturers in others. The drawings are virtual, and are translated into instructions that control production equipment in both local and remote locations. As a result, the production can be outsourced strategically to any manufacturer that can accept electronic projects anywhere, anytime. Because the process is perfect, the accuracy is greater.
As more companies adopt the model design to construction, dramatic changes will occur in the structure of industries. For example, in the publishing industry, books can be printed from electronic files at the request of receiving orders via the Internet, eliminating the need for physical inventory on sale at printers, publishers, and libraries. The electronic file representing a virtual inventory finished products from which physical products can be made in case of need. Consequently, inventory carrying costs are lower.
Both product-driven and service-driven industries is made by the centers that receive service calls outbound and inbound telemarketing and place. call center activities can be outsourced production similarly.
The concept of strategic outsourcing can be applied to almost any function in a company's intellectual property is protected provided. However, although management consultants can be used for the development of the strategy, the ultimate responsibility for the planning, implementation, execution and performance remains in-house with the function of government.
products and / or services ...
The expression "products and / or services" term collectively describes all types of products and services.
service-based industries are evolving into providers of both services "product-oriented" and "service-oriented." In order to differentiate services from product-oriented delivery and support services, the term "service-oriented" products provides greater clarity. Service-oriented products must be definable, duplicable and repeatable. They are intangible outputs of processes that are represented by tangible objects, packed into a definable form. Technology plays an important role in providing through hardware, software, and both voice and data telecommunications. "Hard" products are tangible and "soft" products are intangible.
For example, the traditional land-line telephone services were offered with some features that differentiate, especially in the style of equipment. Since the telephone system migrated from electro-mechanical to electronic, the deals have been transformed into service-oriented products with features such as call forwarding, caller identification, call waiting and voice mail. Mobile Phone Deals are product oriented services with wider functions and land lines characteristics. oriented products have built-in cell phone cameras, and they took her services and support services bundled in which account information, access to Internet, and application software for calculators, calendars, contact information, notes, games, music , photos and movies. mobile phone and computer technologies are converging.
The financial and business industries and professional services, service-oriented products are packed with items such as accounts, contracts, brochures, contracts, databases, documents, equipment, structures, policies, procedures and statements.
In the fields of leisure and hospitality, service-oriented products such as flights, hotel rooms, car rental and limousine services are packed with facilities, equipment and supplies. The types of facilities and equipment define specific offers. For example, an Airbus A380 makes it a different experience from a Douglas DC3 even if the core service is the same: to provide air transport. A hotel room with sea view makes it a different experience from the one with no windows at all, even if the main service is the same: to provide accommodation. The quality of the kits such as blankets, pillows, towels, newspapers, cable TV, internet access, and fruit baskets can affect the overall experience. Cadillac makes a different experience from a Chevrolet, also through the main service is the same: to provide a rental car to drive, or a limousine.
travel-related services providers bundle air, hotel, car rental, and limousine services in packages to make purchasing decisions easier for consumers. Demonstrations beam travel-related services with facilities for conferences and meetings for business.
consumer electronics, durable goods and services ...
manufactured products consist of consumables and durables.
supplies are changing or products are consumed as they are used and include food, clothing, personal care, health care, the provision of households, and the elements of office supplies. Media such as books, records, audio and video CDs and DVDs are classified as consumables - intellectual property is worth much more than the average.
durables are durable items of equipment such as appliances, furniture and vehicles.
Digital products may involve any support if they have delivered electronically different from the publishing house of the server and the user's electronic device.
The structures are the outputs of construction and are made of durable materials.
contractual or non-contractual and / or services ...
agreements are contract or tort-based depending on the kind of bid, and the nature of the relationship between buyers and sellers.
consumer products can be sold with the right of return for exchange or refund within a certain period of time. durable products can be sold with agreements that define warranties and maintenance.
products and services geared to the service may be sold under agreements that specify exactly what needs to be delivered and when, with the procedures for reporting problems or complaints.
In the negotiations, discussions should embrace specific functions and characteristics of soft and hard products, and delivery and support services. experienced negotiators pay attention to both tangible and intangible, because the total cost of ownership includes both.
Digital-building and digital production ...
As technology continues to develop, service-oriented products will become more common because it makes intangible items definable. The new knowledge-based industries will emerge.
The reproduction of software on physical media is classified as a commodity-production, and all other development activities and publishing are classified as a provider of services in NAICS. However, software and other digital products are resistant because they can last indefinitely, even if they have to be transferred between the storage media. The software products are developed by service providers, such as commercial enterprises and professional services, publishers, and "in-house" developers. However, the software development activities require the management disciplines of the project of goods- producing industries, such as construction and manufacturing, to succeed.
The "digital-construction" and "digital-production" industries are evolving: digital construction provides software; digital production provides smooth and service-oriented, information and knowledge-based products. However, through CAD / CAM processes, the software provides hard products too. In the future, almost all hard and soft products will be digital-building and digital-manufacturing processes.
The definition of product and / or services is a enterpriship (entrepreneurship, leadership, and management) of competence.
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