ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Business Management => Topic started by: melodyy123 on October 03, 2018, 11:39:05 am

Title: service vs. manufacturing
Post by: melodyy123 on October 03, 2018, 11:39:05 am
this is probably a really stupid question
but is a supermarket a manufacturing business or a service business?
i cant really see how it would be manufacturing, as they aren't producing the items themselves
but for service, don't the outputs need to be intangible?

thanks :)
Title: Re: service vs. manufacturing
Post by: fl982 on October 03, 2018, 02:04:36 pm
A supermarket such as Coles, Aldi, etc would be considered a service business as they sell products that have already been produced by other companies. The output being produced would be the service being given to consumers when the product is being sold, and hence involves a high level of customer contact. For example, when ordering specific items to cater individual preferences in the deli section of Coles. Thus, the output being given is the service of selling pre-made products which would be considered intangible as the service being given to customers cannot be physically stored or handled.
Title: Re: service vs. manufacturing
Post by: melodyy123 on October 03, 2018, 02:17:03 pm
A supermarket such as Coles, Aldi, etc would be considered a service business as they sell products that have already been produced by other companies. The output being produced would be the service being given to consumers when the product is being sold, and hence involves a high level of customer contact. For example, when ordering specific items to cater individual preferences in the deli section of Coles. Thus, the output being given is the service of selling pre-made products which would be considered intangible as the service being given to customers cannot be physically stored or handled.

ohh ok, yes i get it now! thank you so much! :)