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'The production process is the way in which a business develops products which are then

offered on the marketplace, where they can be purchased to satisfy a need or want.

The term 'product' - or output - refers to both services and goods.

Services are intangible and consequently cannot be possessed. A service is a benefit or

assistance provided to the customer. Types of services include profesional experience

such as lawyers or doctors, computer server access, or movement of goods like the postal

service delivering mail.

Goods, also known as wares, come at the end of the manufacturing process.

They are tangible items that can be seen and touched and are cither durable or

non-durable. Non-durable goods deteriorate in time (.g. food or medicine).

This is known as having a shelf life. Instead, durable goods such as electronic devices have a much longer shelf life.

The diagram below illustrates the three parts of the production process.

Inputs* are necessary

for the transformation

process to produce

outputs. For example a

jeans manufacturer must

have a factory where

the jeans are made, as

well as the machinery

and torkers who make

the jeans. He also needs

to design and purchase

the material and parts

to transform them into

the finished jeans to be sold. The productive efficieney of a firm is determined by

how well this process is organised. Using the minimum number of inputs to produce

a maximum number of outputs is the objective of most manufacturers. This ratio will

reduce the cost per unit of production and allow the company to sell the goods at a

lower price. Some manufacturers, for example those n the luxury goods market, are still

interested in production costs but are able to sell their products at much higher prices.

Ideally, the goal of the production process is to provide products and services to meet

the needs and wants of customers in the shortest posible time at a competitive price.

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1.What is the production process?

C The method a company uses to develop its products.

2.Services and goods are also known as...

B outputs.

3.What does the term 'shelf life' mean?

B The time certain goods can be kept and still used.

4.Productive efficiency is a result of...

A a well-organised transformation process.

5.According to the text, a manufacturer should ideally try to...

C offer its services or goods at competitive prices.

1.trousers - G (Goods)

2.refuse collection - S (Service)

3.teaching - S (Service)

4.tablet PC - G (Goods)

5.advertising - S (Service)

6.motorbike - G (Goods)

7.taxi company - S (Service)

8.police - S (Service)

9.transport - S (Service)

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Management Processes:

"Management processes are the actions necessary to keep everything else running smoothly."

Sales Processes:

"Businesses need to sell their products, or they won't succeed; these processes are the procedures businesses use to make sure they bring in revenue."

Supporting Processes:

"These processes include the business procedures and departments that are critical to the operation of a business but aren't directly connected to sales or product delivery."

Operational Processes:

"These processes are the most fundamental parts of a business because they're directly responsible for creating and delivering products and services."

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1.A gum base is poured into a mixer and color and flavoring is added.

2.They pour in glucose syrup to the mixture.

3.They blend the ingredients for about 20 minutes to put everything together.

4.The mixture is ready when it looks like a bread dough.

5.They transfer the mixture to another machine.

6.Another machine squeezes the mixture to the size of bubble gum.

7.The machine squeezes the mixture to create thin strips of gum.

8.A chamber cools the gum for 15 minutes at between 3-7 degrees Celsius.

9.A machine cuts and wraps the bubble gum.

10.A machine weighs and packs the bubble gum into boxes which are sealed to keep it fresh.

a) They pour glucose syrup into the mixture.

Glucose syrup is poured into the mixture.

b) They blend the ingredients for about 20 minutes to put everything together.

The ingredients are blended for about 20 minutes to put everything together.

c) They transfer the mixture to another machine.

The mixture is transferred to another machine.

d) The machine squeezes the mixture to create thin strips of gum.

The mixture is squeezed by the machine to create thin strips of gum.

e) Another machine squeezes the mixture to the size of bubble gum.

The mixture is squeezed by another machine to the size of bubble gum.

f) A chamber cools the gum for 15 minutes at between 3-7 degrees Celsius.

The gum is cooled by a chamber for 15 minutes at between 3-7 degrees Celsius.

g) A machine cuts and wraps the bubble gum.

The bubble gum is cut and wrapped by a machine.

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Yoko: Excuse me. You look familiar. Did you use to live in New York?

Jack: Yes.

Yoko: Did you use to work at NYU?

Jack: Yes. I taught music there for a few years.

Yoko: Oh. Did you know Hugh Young? He was a music student.

Jack: Hugh Young? Yes, I remember Hugh. Most people thought he

was.…. uh. a little peculiar. Do you know what he's doing now?

Yoko: Yes. He's a millionaire in Houston now.

Jack: Well! I guess people don't find him peculiar anymore.

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How Oreo cookies are made - Describing processes

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Dear costumer ,

I hope this email finds you well. My name is valentina, and I represent Valentina, a cosmetics company passionate about delivering high-quality beauty products. I am excited to introduce you to our latest product: our new line of lipsticks.

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Some key benefits of our new lipsticks include: -Intense pigmentation that lasts for hours.

-Moisturizing formula enriched with natural oils and vitamins.

-Wide variety of shades to suit every occasion and skin tone.

-Cruelty-free and vegan, reflecting our commitment to ethical beauty.

We believe these lipsticks will be a perfect addition to your beauty collection and can help attract new customers to your business. We’d love to offer you a free sample to experience the quality of our product firsthand.

Please feel free to contact me at 310-265-7646 or reply to this email for more details or to place an order. Thank you for your time and consideration. We look forward to hearing from you soon!

Best regards,

[valentina]

Sales Manager

Valentina Cosmetics

Contact: 310-265-7646

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T,F,T,F,T,T,T,F,T,F

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1mixed

2planed

3free market

4free market

5planed

6mixed

7planed

8mixed

1. Which system do you think is most common in the world nowadays? Why? The most common system today is the mixed economy because it balances government intervention with free-market principles. It allows private enterprises to thrive while ensuring access to public goods like healthcare and education. Governments can also intervene to stabilize economies during crises. 2. Which economic system is in place in your country today? In most countries, including where I am based, a mixed economy is used. Markets generally determine prices and resource allocation, while the government regulates certain sectors and provides essential services. 3. Has it always been the same? Do you think it is successful? Why/Why not? Economic systems tend to evolve. Many countries have shifted from planned or purely free-market systems to mixed economies. The success of this model depends on factors like stability, equality, and growth. A mixed economy can foster innovation while reducing extreme inequalities.

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The private sector is composed of different kinds of business organizations which are owned by individuals or groups, usually with the aim of making a profit. These businesses vary in size and structure, from one-person organizations to SMEs and multinationals.

Sole traders

A sole trader or single ownership company is a business that is run by one person. It may have one or more employees. It is the most common form of ownership in the United Kingdom.

Sole traders are often successful because they can offer better customer service (e.g., repair specialists); they can be sensitive to the needs of customers and, as sole decision-makers, can react more quickly to demands. Many customers may also prefer to meet the owner face-to-face, and being part of the local community, a trader has the advantage of being more involved with local people, in local events, and even in politics.

1. Disadvantage: Limited purchasing power
2. Advantage: Total control of the business
3. Disadvantage: Difficulty in achieving economies of scale
4. Advantage: Easy and inexpensive to start
5. Advantage: Privacy in business affairs
6. Disadvantage: Difficulty in raising finance
7. Advantage: Sole ownership of profits
8. Disadvantage: Unlimited liability

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2.6 Private sector - reading challenge (2)