ch01 - Chapter 1 The Nature of Operations Chapter 1: The...

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Chapter 1: The Nature of Operations 1 Chapter 1 The Nature of Operations
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Chapter 1: The Nature of Operations 2 Introduction
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Chapter 1: The Nature of Operations 3 McDonald’s Corp Facing increased competition Smarter and more demanding customers Less brand loyal Switched to hamburger bun that does not require toasting. Customers prefer taste of new bun Saves time and money
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Chapter 1: The Nature of Operations 4 Olympic Flame 10,000 runners 15,000 miles through 42 states in 84 days Two years of planning Must plan for no-show runners and rush hour traffic Cost of this operation in the neighborhood of $20 million
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Chapter 1: The Nature of Operations 5 Kmart Versus Wal-Mart Both chains started in 1962 In 1987, Kmart had 2,223 stores to Wal-Mart’s 1,198. Kmart’s sales were $25.63 billion to Wal-Mart’s $15.96 billion By 1991, Wal-Mart’s sales exceeded Kmarts Kmart still had more stores
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6 Kmart Versus Wal-Mart continued In year ending January 1996, Wal- Mart’s sales were $93.6 billion to Kmart’s $34.6 billion. During this time Kmart emphasized marketing and merchandising (such as national TV ad campaigns). Wal-Mart was investing millions in its
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This note was uploaded on 11/25/2011 for the course MBA 631 taught by Professor Donalde.stout,jr. during the Spring '09 term at Saint Martins University.

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ch01 - Chapter 1 The Nature of Operations Chapter 1: The...

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