Managers play a very important role within their companies. They make a lot of big decisions, including how to allocate resources and use them properly. Many companies have employees that do market research and analysis to gather important information on the market, needs, and resources. They use this information to allow the manager, CEO, CFO, and board to make the best decisions for their company. According to Keat, Young, and Erfle (2013), there are three different processes for answering these questions. The first is market process. This process looks at supply and demand, and need for an item. The second is command process. This process allows a central authoritative figure to answer these questions. The third process is known as traditional process. This process uses customs and traditions to answer the questions presented.
Doctors today have an array of tools to help them provide the best care possible for their patients. Arguably, the most important tool is the stethoscope. The stethoscope allows physicians to listen to the heart and lungs, as well as check the abdomen for bowel sounds.
When deciding to produce a stethoscope, it is important to look at the market. There are traditional stethoscopes, which can be broken into fetal heart rate detectors, fetal stethoscopes, pediatric stethoscopes, esophageal stethoscopes. There is also a market of newer stethoscopes that are electronic, connected via Bluetooth, and digital. The type of stethoscope a company decides to produce is determined by the market process, due to its' large need and demand.
When deciding how to produce and manufacture a stethoscope, research must be done on pricing and facilities. Once all the options for manufacturing are assessed, this then becomes an authoritative decision by a manager, CEO, CFO and or a board of the company. Due to this nature, this question is answered by the command process.
When deciding for whom to produce these stethoscopes, it simply becomes a matter of who needs one. From nurses, to physicians, to hospitals, to parents using an at home electronic stethoscope, there is a demand. Therefore, this last question is answered by the market process.
The company ended up using more than one process. Due to this nature, the company is not influenced or dictated by a single process, but instead has a mixed economy.