OBJECTIVES

 Define operations
 Study general operating policies
 Learn the importance of customer service policies

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 1
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
  Operations are the everyday activities that keep a
business running.
 Operations management is the management of the
everyday activities that keep a business running.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 2
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
  Most businesses set their hours of operation to what best serves
their customers’ needs as well as their own.
 The three C’s” for deciding whether to extend credit are:
 Character—The financial trustworthiness of the customer.
 Capacity—The customer’s current cash inflow.
 Capital— The customer’s total financial assets.
 Companies that sell products need to establish policies for handling
returns.
 Businesses set a delivery policy to make customers aware of their
delivery options, costs, and timetables.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 3
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
  Repeat customers come back again and again.
 Word of mouth is verbal publicity. Positive word of
mouth about a company can bring in new customers.
 The five fundamental elements for the treatment of
customers are:
 Courtesy
 Respect
 Prompt Attention
 Knowledgeable Employees
 Credibility

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education, 4
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.