Chapter 2, Problem 3DQ

Summary Introduction

Interpretation:The difference of process strategies of EB and MD, and the way in which their choices relate to the customer introduced variability is to be determined.

Concept Introduction:

The process strategies are the business approach in which there isa transformation of raw material to finished goods. During the process of production, such a strategy is followed in which the efficiency and the flexibility of the production are improved.

Explanation of Solution

The objective of a process strategy is to make the production process in a continuous form that meets the customers' demand within a specific cost. The selected strategy should be affected for a long term period. So, during decision making regarding the process, the limitations of a process strategy are considered.

In terms of process and strategies, the EB and the MD differ from each other.

The EB is an e-commerce shopping website, its process strategies include the following steps:

a) It provides a platform for buying and selling products and services online. Hence, it follows person to person business strategy.

b) It is a safe platform for the service of online money transfer.

On the contrary to EB, MD is a larger business organization that provides restaurant service across the world. Its process strategies include the following steps:

a) For food production, raw materials are collected from different vendors.

b) Fast food items and breakfast items are produced.

c) For selling of soft drinks, sourcing is made from different manufactures

Based upon the customer’s requirements, customer variability is the process of customization of the product. According to the nature and the scope, customer variability is described as:

MD provides the food service to the customer which is face to face service. So according to the demand of customers, MD can provide customized service, which is not made by the EB.

MD requires physical presence to the service to the customers at outlets, but EB does not require as it provides its service through online.

So, depending upon the nature and the scope, the customer variability in each firm differs from each other.