Chapter 5

• Explain the triple bottom line. What are the 3 Ps?

The TBL is an accounting framework that incorporates three dimensions of performance: social, environmental and financial. This differs from traditional reporting frameworks as it includes ecological (or environmental) and social measures that can be difficult to assign appropriate means of measurement. The TBL dimensions are also commonly called the three Ps: people, planet and profits. We will refer to these as the 3Ps.

• Name some ways that design of goods and services can affect (good or bad) the five specific OM strategies for competitive advantage.

o Quality - design of the product o Cost - higher quality = more cost, design of the product o Flexibility - building of product

• What is sustainability?

o Sustainability is maintaining resources, keeping the business profitable o Textbook answer: Refers to meeting the needs of the present without compromising the ability of future generations to meet their needs

• Explain the concept of the moment of truth in services. So, how can businesses try to make this "moment" better/positive?

o The moment of truth in services is (depending on the service) usually at the end. A haircut for example would be at the end once the stylist is done and the customer is evaluating how they like/how well the stylist did. In the restaurant industry, it can be when the food arrives or when the customer applies a tip. Businesses can try to make this moment better/positive is keep up

• How does product design affect sustainability? List several way. Consider the 3 Rs (not 3 Ps) when answering this question.

o Three R's Reduce, Reuse, Recycle Materials that are used to make the product Cost - financial stability Equipment - how much energy we use