Operations management Essay Example | Topics and Well Written Essays - 2000 words

trading operations management - Essay ExampleHowever, in some situations, impalpable factors may lead to the distinctiveness of the lodge in a certain atomic number 18a. Some of the companies may not be aware of the intangible specialization and are therefore faced with serious problems in their attempt to raise from a certain trade segment. intangible specialization can be simply defined as specialization of a caller-out in a certain area due to some intangible factors mainly brought about by the routinized activities of the come with in performing its different operations relating to the production of the main product the company produces. The intangible factors include routinized and path-dependent decision-making routines that help in the regulation of the process and product design and renewal of the product (Maielli, 2005, p. 250). In addition, intangible specialization is mainly concerned with the internal routines and the accumulation of intangible capital in the ca lculative and manufacturing of certain products, making the company efficient in the production of such products, as well as other products. Intangible specialization may restrict the company in a certain sketch and hinder its attempt to change the area of its operation. It reduces the output mix flexibility of the company even if the company has expert flexibility in its production technology (Maielli, 2005, p. ... The company should therefore device means of reaping level best income from the area of specialization, as attempts to shift into other areas will be difficult in most cases. friendship of the intangible specialization also helps the company in formulation and application of strategies that will aid the shift to other areas in the supply chain. Intangible specialization is categorized into the evolution supposition of economic change. The theory emphasizes the importance and effects of routinized and path-dependent decision-making and output-mix decision-making (Mai elli, 2005, p. 250). In addition, intangible specialization usually affects the way a company reproduces the technical skills that aid in the manufacture of certain types of products (Maielli, 2007, p. 285). It usually comes up involuntarily as a response to the domestic market in the area of operation of the company. Intangible specialization may be good or a limitation to the company. This is mainly dependent on the strategies that the company formulates while factoring in the strengths and weaknesses due to its intangible specialization in a certain area of operation. One of the main benefits of intangible specialization is that it may help a company overcome different financial difficulties if efficient strategies are put in place to enable it to have output-mix optimization in the area where it has intangible specialization. 2. How did Intangible Specialization affect Fiats strategy and output-mix optimization in the 1970s? Fiat is an Italian company mainly involved in the ma nufacture of cars. The company has a strong reputation in the manufacture of city cars, though it also manufactures other types of vehicles. Intangible specialization has made the