1) Process of Transformation
Goods and services are both areas of operations, this means that they will change the state of any input into output. In order to achieve this they will need to have a transformation process according to the type of service or goods they have to offer this is all part of satisfying customer needs.
Table 1.1 shows us the simple input transformation output process.
Input transformation process output goods & services
Although most companies use the transformation process it is natural to see that they use it to provide different things to satisfy their customer needs. For example the AA will provide a service for their customers, as they are assisting to fix their cars, on the other hand Tesco's supermarkets are providing products such as foods and toiletries for customers. So we can say that they both have same input such as staff and facilities, however they use it in different ways.
If we look at Tesco's supermarkets in relation to the above, we can clearly identify that they are indeed a product providing business, as they sell foods, toiletries etc. to their customers.
Table 1.2 shows Tesco's input-transformation-output process:
Goods for sale Display foods and goods
Sales staff Customer service Foods and goods assembled with customer
Functional tills Sell goods
The table above shows a basic outline of the nature of Tesco's operations. It illustrates the simple fact of how they will take input such as goods for sale and take it through the transformation process, which in this case is putting goods on shelves or freezers within the shop floor. Then of course the output being customers buying their good, and Tesco meeting needs and achieving customer...