Craft manufacturing describes the process by which skilled craftspeople produce goods in low volume, with a high degree of variety, to meet the requirements of their individual customers. Over the centuries, skills have been transmitted from masters to apprentices and journeymen, and controlled by guilds. Craftspeople usually worked at home or in small workshops. Such a system worked well for small-scale local production, with low levels of competition. Some industries, such as furniture manu
Author(s): The Open University

Operations in some form has been around as long as human endeavour itself but, in manufacturing at least, it has changed dramatically over time, and there are three major phases - craft manufacturing, mass production and the modern period. Let's look at each of these briefly in turn.

Author(s): The Open University

There are times when management problems seem too complicated and â€˜messyâ€™ to analyse. A technique, the fishbone diagram, can be used by both individuals and groups to help to clarify the causes of a difficult problem and capture its complexity. The diagram will help provide a comprehensive and balanced picture and show the relative importance and interrelationships between different parts of the problem.

Author(s): The Open University

The results of the evaluation reflect the scores that are awarded to each option and the weightings that are attached to the different criteria. A change in one or the other (or in both) will lead to a change in the results. Accordingly, when you construct a matrix of this kind be sure to think hard about the scores and weightings. A matrix like this can be used in many ways, for example, when interviewing applicants as part of a selection process.

Author(s): The Open University

A matrix is an arrangement of â€˜cellsâ€™ in rows and columns. A spreadsheet is a simple example of a matrix. Each cell is described by its position in a column, normally denoted by an alphabetical letter, and in a row, normally denoted by a number. So â€˜cell B6â€™ on your spreadsheet is the one which occupies column B and row 6. The size of a matrix is described by the number of rows and the number of columns (in that order).

A â€˜two-by-twoâ€™ matrix has two rows and two columns. A â
Author(s): The Open University

The origin is the point on the graph where the x axis value (the output) and the y axis value (the total costs) are both zero.

Author(s): The Open University

Bachelier, L. (1900) ThÃ©orie de la Speculation, Paris, Gauthier-Villars.
Banz, R. (1981) â€˜The relationship between return and market value of common stocksâ€™, Journal of Financial Economics, Vol. 9, pp. 3â€“18.
Barber, B. and Odean, T. (2000) â€˜Trading is hazardous to your wealth: the common stock investment performance of individual investorsâ€™, <
Author(s): The Open University

This applies to investments where the return is defined in generic terms but the actual amount of the return may fluctuate in an unpredictable manner. As we have seen, the most obvious example is the company share, but there are others, such as debt instruments (such as many bank deposits) where there is a contractual right to interest but the interest rate fluctuates according to some formula â€“ or even simply at the whim of the bank! An important example of this type of security is the Flo
Author(s): The Open University

The maturity of an investment is the date when the investor is contractually entitled to demand repayment of the investment and the associated return. Some investments (such as company shares, as discussed in Section 3.1) actually have no contractual maturity. Others â€“ such as demand deposits at banks â€“ are subject to contractual repayment
Author(s): The Open University

One of the characteristics of â€˜goodâ€™ information is that it should be balanced and present both sides of an argument or issue. This way the reader is left to weigh up the evidence and make a decision. In reality, we recognise that no information is truly objective.

This means that the onus is on you, the reader, to develop a critical awareness of the positions represented in what you read, and to take account of this when you interpret the information. In some cases, authors may be
Author(s): The Open University

You can find a lot of information about the business and management on the internet.

To find this information you might choose to use:

• search engines and subject gateways

• books and electronic books

• databases

• journals

• encyclopedias

• news sources

• internet resources.

Author(s): The Open University

• Can I do a simple search?

• Can I look at the information in both short and detailed form?

• Can I choose where in the record I want my search terms to be found?

• Can I search for phrases?

• Can I combine search terms?

• Can I use truncation?

• Can I use wildcards?

• Can I do an advanced search?

• Can I get a list
Author(s): The Open University

Whatever resource you choose to use to find information on the internet, many of the same principles apply. Each source that you use will probably look quite different from the one you tried before, but you'll notice that there are always features that are similar â€“ a box to type your search terms in, for instance, or a clickable help button. Different resources refer to the same functions using different terminology, but the principles behind them are exactly the same. The trick is to chec
Author(s): The Open University

Ansoff, H.I. (1965) Corporate Strategy, Penguin, Harmondsworth.
Galambos, L. and Sturchio, J. (1996) â€˜The pharmaceutical industry in the twentieth century: a reappraisal of the sources of innovationâ€™, History and Technology, Vol. 13, pp. 83â€“100.
Gambardella, A. (1995) Science and Innovation in the US Pharmaceutical Industry, Cambridge University Pr
Author(s): The Open University

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Grateful acknowledgement is made to the following sources for permission to reproduce material in this unit:

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For those equities in issue their current market value and some indicators of their performance are provided in the daily press. Table 3 shows the closing levels and the volume of shares traded in respect of a selection of companies on the London, New York, Frankfurt and Tokyo Stock Exchanges on 7 June 2005.

Author(s): The Open University

As we have discussed before, the creation of corporate regulation is often linked to perceived failures of corporations and their management to behave in the way society expect them to. Corporate governance is not an exception to this trend, and, as with accounting, different countries may well experience difficulties at different times. For example, the development of British codes of best practice, which began with the Cadbury Committee, can be related to governance scandals such as Polly P
Author(s): The Open University

While acting in ways that are seen to be legitimate is important for both individuals and organisations, social institutions are not immutable. Some people and organisations seem to have a talent for changing the rules of the game.

Some writers have referred to this as being an institutional entrepreneur. At the organisational level examples might include organisations such as Microsoft or Sun Microsystems working actively to establish industry standards which favour them. At the
Author(s): The Open University

While it is not possible to change our human natures, it is possible to immunise ourselves to some extent against common decision traps. Useful strategies include:

• Get in the habit of reframing problems. For example, if you are considering strategies for avoiding a loss of â‚¬10,000 try asking yourself if you would feel differently if you consider them as strategies for making a gain of â‚¬10,000.

• Think about the information you have
Author(s): The Open University

We have taken a brief excursion through three different perspectives on decision making (the rational-economic, the psychological and the social) and we have considered how we think about risk from these different perspectives. How can you use these ideas to improve your own and others' decision making? The first way is to use them to develop greater insight into the pressures and influences that may be affecting how you process information, think, and decide. By becoming more aware of these
Author(s): The Open University