In: Operations Management
Describe how a company can be difficult to classify as a services or goods company. Provide at least one example of such a company where that classification might be difficult.
Answer: Often the operations of the companies have features of both product as well as service and this sometimes makes it difficult to classify it as goods or service company. For example Mc Donald’s is a fast food restaurant that provides both product as well as service to the customers. It sells products like burgers, french-fries and so on that are tangible, can be stored and also carried away by the customers or delivered at their doorstep and have a consistent quality. But at the same time it provides customers with a facility to sit and dine at the restaurant where it delivers customer service experience which is intangible, at times different in different stores and has to be delivered inside the store. Thus it can be seen that the overall service that Mc Donald’s provide is a mix of product and services. There are many such organizations that offer features of both product and service and this makes it difficult to classify them as goods or service company.