February 28, 2010
The most over looked functions in any successful company is the Operations and Materials Management, commonly referred to as OMM activities. Operations are the functions or services that convert the input to a company into finished products and services. Materials management is the process that resources into and out of the operating system. To develop a good business sense you must understand how operations and materials management differ in various types of companies. The three companies I have chosen to examine are part of different industries, but Microsoft, In-N-Out Burger, and Dillard’s all share the success of a good business sense. Microsoft’s employees are selectively chosen and are programmed with prior advanced knowledge of software creation. They are expected to be pioneering and proficient with the software they create. Microsoft strives to bring user-friendly and efficient software to its customers and can only do so with employees who are team-oriented and motivated to challenge the competition (Microsoft, 2010).
Microsoft’s operating system is complex but revolves around a simple idea of staying ahead of the curve in software production. The company maintains a high competitive edge over competition by supplying operating systems to almost all PC’s. The company has also branched into game console sales and will soon open individual retail locations. The downside to monopolizing the software industry and driving out competition due to incompatibility with other providers is the amount of capital spent on lawsuits and government fines. Microsoft’s reputation in the computer world may be tarnished by overly competitive operating system (Microsoft, 2010).
Microsoft’s OMM costs include high salaries due to the very advanced and experienced nature of their employees. Employees are teamed and given specific goals to reach. With a challenging, but loosely controlled atmosphere, Microsoft gives its employees the room and materials to create groundbreaking software at a calm but rapid pace. Other, less expensive costs might include suppliers for equipment. Because so much of our technological items are imported, Microsoft can instead place production costs into advertising and distribution. E-commerce has further lowered the cost of distribution for Microsoft, who can now sell full operating systems and software over the Internet without the need for packaging expenses (Microsoft, 2010).
In-N-Out Burger, established in 1948, is a fast-food hamburger and fries restaurant that specializes in personalized and extremely efficient service. The business philosophy is simple: "Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment." (In-N-Out History, 2010, para. 2) Employees of In-N-Out Burger can be trained from scratch, are energetic, customer service oriented, and expected to deliver high quality food. Employees are polite and friendly at all times and maintain a clean environment in the entire restaurant thus following in the founder’s business philosophy.
The nature of In-N-Out Burger’s operating system is one of quality, since its inception in 1948 the menu and recipes have not changed. While other fast food restaurants use processed food or frozen food, In-N-Out Burger makes everything the old fashioned way. Also, another signature key to all In-N-Out stores is windows all around showing employees cutting vegetables for the burgers and potatoes for the fries right in front of the customers. In-N-Out’s menu only consists of burgers and fries, nothing more because the quality is so fresh and good that customers come back time and time again keeping the stores packed all day long.
In-N-Out Burger’s OMM costs include mostly food and salary. Employees at In-N-Out burger, unlike other fast food chains, have a low churn rate and are...