3C Characteristics of Manufacturing and Service Businesses

Question 1

What is the definition of Characteristics of a Manufacturing Business?

Answer 1

Manufacturing businesses use resources and raw materials to produce a finished physical good.

Question 2

What is the definition of Characteristics of a service business?

Answer 2

Servicing businesses provide intangible products, usually with the use of specialised expertise.

Question 3

What are 3 similarities between a Manufacturing Business and a Service Business?

Answer 3

1. Both service and manufacturing businesses aim to optimise their operations to produce
   high-quality outputs at a low cost of production.
2. Both service and manufacturing businesses have to deal with suppliers during the
   process of managing operations.

3.Both service and manufacturing businesses aim to optimize efficiency and effectiveness
in their operations.

Question 4

What are 3 differences between a Manufacturing Business and a Service Business?

Answer 4

1. Manufacturing produces an tangable output whilst Service provides an intangible output
2. Manufacturing is CAPITAL intensive whilst Service is LABOUR intensive
3. Manufacturing involves STANDARDIZED production whilst Service involves TAILORED production