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Why Organisations Change the Goods and Services

Essay by   •  December 19, 2011  •  Research Paper  •  1,147 Words (5 Pages)  •  1,737 Views

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In this essay I will be explaining why organisations change the goods and services they provide. And I will be explaining this with the aid of at least one or two examples using either a source or various sources.

An organization is and described in many terms and also to many, it serves many purposes. However the main purpose of an organisation is to provide goods and services. No matter what kind of organization, charities, schools, governmental or international. Neither does it matter who the organization's target audience or the aim is. At the end of the day its main function is to deliver goods and services in the financial, industrial, social or commercial sector. (Wikipedia, 2011)

What are goods and services? This has to be broken into two. Goods are products provided by organizations and generally tend to be in physical form such as foods, electronics, and stationery EST. Goods are regarded to be tangible and also intangible. Though goods are generally known to tangible however with the advancement in technology and also the availability and reliability of technology, goods are fast transforming into intangible goods. (Wikipedia, 2011)

Tangible goods are that can be touched physically, it can be measured. Intangible goods tends to be in form of electronic or digital form and include things such as Music on the web, Video from the web, online and telephone banking, online shopping. There are different types of goods, and they are:

Inferior Goods are the products that see a decrease in demands and purchase due to the fact that the customer/buyer has seen an increase in wealth or wages and therefore able to purchase products of the same type but a better quality and known brand 'It has a negative YED'. For example, upgrading from a 1999 Microsoft home pc to an Apple IMAC. ( Tejvan, 2008)

Normal goods are where the customer/organization has had an increase in wages/funding/grant which leads to an increase in demand 'It has a positive YED'. For example a school/university is given a grant and they use it as an opportunity to order in a great quantity of Pc's and projector ( Tejvan, 2008)

Luxury Goods are 'A luxury good means an increase in income causes a bigger % increase in demand. It means that the YED is greater than one. For example, high Definition TV's would be luxury. When income rises, people spend a higher % of their income on the luxury good' ( Tejvan, 2008)

Whilst services is known to be a means of providing and selling goods which have been produced or manufactured. such services include counter services, immigration, waiters. And here due to the fact that goods tend to be in the form of a physical state, it is most related to as tangible. As for services, it comes in a non-physical state therefore it is related to as intangible. Tangibles are described as assets, items that are visible, touchable which means goods tend to in a physical form and intangible is the exact opposite. However there are such things as intangible's which can be related to goods (intangible goods). This tends to be in the form of electronic or digital form and include things such as Music on the web, Video from the web, online and telephone banking, online shopping. (Wikipedia, 2011)

Who the goods and services are meant for? Goods and services when being produced or executed, is always aimed at a specific audience. Possible audiences are:

Royals/President/Governors and associates this is where the organisations aim is to solely provide goods that are produced and the services that are rendered are meant for the Royals/President/Governors. For example goods that an organisation might be producing for this category can be from foods to vehicles and services such as the royal guards, secret service to official photographers.

An Organization's workforce

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