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is not the focus of operations management; what counts is management of the relationship between the cost of goods sold and the revenue derived from their sale. Efficient processes that reduce costs even while prices remain the same expand the gap between revenue and expenses and derive higher
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Business operations encompass three fundamental management imperatives that collectively aim to maximize value harvested from business assets (this has often been referred to as "sweating the assets"):
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of a business describes the means by which the three management imperatives are achieved. In this sense, business operations is the execution of the business model.
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The more profitable a business is, the more valuable it is. A business's profitability is measured on the basis of how much income it generates for the:
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This is the most straightforward and well-understood management imperative of business operations. The primary goal of this imperative is to implement a
1419:: a recognized, respected and developed brand is highly valuable. Develop through research, design and marketing of companies name, logo and tagline.
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For example, petroleum deposits are worthless unless processes and equipment are developed and employed to extract, refine, and distribute it
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For example, the products that sell at the highest volumes and prices are usually considered to be the most valuable products in a business's
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at a cost that is less than the funds acquired in exchange for said goods and also self-employee services—in short, making a
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1193:. An example of value derived from a physical asset, like a building, is rent. An example of value derived from an
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The funds directly acquired by the business in exchange for the goods and services it delivers is the business's
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A business whose revenues are sufficiently greater than its expenses makes profit or income. Such a business is
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Maintain intangible assets: Maintaining intangible assets can protect elements that add value to a business;
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Example: developing an efficient business system and operating manuals allows the business to potentially be
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The intrinsic value and income-generating potential of an asset cannot be realized without a way to secure it
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Protect and maintain physical assets: protecting physical assets will also help protect the overall value;
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that states a
Knowledge editor's personal feelings or presents an original argument about a topic.
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Expand market: offer a product or service to a wider section of an existing market or to a new
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Show growth potential: create a business that has potential to be efficiently expanded;
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Multiple revenue streams: different sources of business income that support each other;
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A business that can harvest a significant amount of value from its assets but cannot
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For example, a luxury car can be leased out at a higher rate than a normal car.
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an ability to sustain this effort cannot be considered a viable business.
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The more valuable a product becomes the more recurring income it generates
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The more recurring income an asset generates, the more valuable it becomes
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Control exerted over the quality and efficiency of production activities
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Examples: regular maintenance and insuring viable physical assets.
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of value from assets owned by a business. Assets can be either
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1230:. The following basic tenets illustrate this interdependency:
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1350:: monthly to yearly based contracts for service or product;
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Public regard for the business as a member of the community
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personal reflection, personal essay, or argumentative essay
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Ability of its customers to pay for its goods and services
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Uniqueness and competitiveness of its business model
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Amount of assets its business operations employ—its
49:. Unsourced material may be challenged and removed.
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Harvesting of value from assets owned by a business
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1471:Securing the income and value of the business
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1456:anything believed to be an intangible asset.
1550:"How to recreate recurring revenue streams"
1222:Secure the income and value of the business
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167:Learn how and when to remove this message
109:Learn how and when to remove this message
1353:Examples: mobile phone contracts/plans.
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1586:"NAB- Increase value of your business"
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1383:amount of revenue it realizes — its
1368:Increasing the Value of the Business
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47:adding citations to reliable sources
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1361:Examples: sell printers and toners.
1216:Increase the value of the business
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1136:Business and economics portal
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442:Chief human resources officer
785:Enterprise resource planning
613:Financial statement analysis
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1392:Methods of increasing value
1342:Types of recurring income:
1289:Generating recurring income
1200:
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1284:Business operations topics
1226:The three imperatives are
1533:Resources in your library
447:Chief information officer
279:Limited liability company
1568:"How to develop a brand"
1506:Chief operations officer
460:Chief technology officer
394:Mergers and acquisitions
364:Constitutional documents
189:Management of a business
520:Environmental economics
500:International economics
451:Chief marketing officer
437:Chief financial officer
432:Chief operating officer
428:Chief executive officer
389:International trade law
183:Business administration
1334:. As such, generating
1089:International business
1074:Business judgment rule
419:Chief business officer
319:Annual general meeting
299:State-owned enterprise
289:Privately held company
147:by rewriting it in an
1413:or geographic market.
765:Customer relationship
701:Business intelligence
663:Financial institution
638:International finance
588:Cash conversion cycle
495:Development economics
456:Chief product officer
204:Management accounting
58:"Business operations"
706:Business development
550:Economic development
312:Corporate governance
209:Financial accounting
43:improve this article
1556:on October 5, 2014.
1524:Business Operations
1336:recurring "revenue"
1210:Generate recurring
1175:Business operations
1116:Business statistics
1099:International trade
1084:Business operations
780:Electronic business
685:Types of management
573:Financial statement
555:Economic statistics
423:Chief brand officer
379:Corporate liability
294:Sole proprietorship
274:Joint-stock company
1424:Management systems
1301:to the business's
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1079:Consumer behaviour
881:Product life-cycle
668:Capital management
633:Managerial finance
324:Board of directors
149:encyclopedic style
136:is written like a
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1554:the original
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1454:trademarking
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989:Architecture
983:Organization
949:Supply chain
775:Earned value
648:Stock market
525:Open economy
515:Econometrics
254:Conglomerate
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41:Please help
36:verification
33:
1572:For Dummies
1494:demonstrate
1407:demographic
1104:Trade route
1019:Engineering
1014:Development
866:Performance
809:development
770:Distributed
643:Liquidation
284:Partnership
269:Corporation
264:Cooperative
157:August 2018
1599:Categories
1513:References
1444:Examples:
1434:franchised
1400:strategies
1346:Long-term
1332:profitable
1268:profitably
1190:intangible
1179:harvesting
971:Technology
853:Operations
733:Commercial
726:innovation
716:Capability
608:Derivative
197:Accounting
99:March 2013
69:newspapers
1446:patenting
1303:customers
1295:sustained
1039:Structure
1024:Hierarchy
944:Strategic
831:Materials
821:Knowledge
798:Financial
738:Marketing
583:Factoring
578:Insurance
480:Commodity
473:Economics
1500:See also
1324:expenses
1201:Overview
1184:physical
1029:Patterns
1009:Conflict
994:Behavior
934:Security
911:Resource
896:Property
859:services
816:Incident
755:Conflict
711:Capacity
414:Chairman
369:Contract
1315:revenue
1177:is the
1004:Culture
954:Systems
939:Service
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906:Records
901:Quality
891:Project
886:Product
876:Process
855:
836:Network
805:
787:
760:Content
567:Finance
249:Company
143:Please
83:scholar
1521:about
1398:Growth
1307:profit
1218:assets
1212:income
966:Talent
922:crisis
848:Office
721:Change
85:
78:
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56:
1508:(COO)
1052:Trade
1034:Space
929:Sales
871:Power
826:Legal
696:Brand
691:Asset
214:Audit
90:JSTOR
76:books
1276:The
916:Risk
231:list
62:news
1452:or
1187:or
658:Tax
45:by
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