4. Identify the two major differences between service and manufacturing organizations. Find an example of a service and manufacturing company and compare them.
Service organizations involve the customers in the operations to some degree, while manufacturing organizations do not. Manufacturing organizations produce a physical product that can be stored in inventory. Service organizations cannot create an inventory of the service since it is intangible. For example, Ford Motors is a manufacturer. It makes automobiles, customers have little contact with the operation, and they can create an inventory of vehicles. McDonalds is an example of a service organization. Customers go directly to the restaurant where they are served quickly by the staff.