Question

Give two real-life examples of actual companies for a service business, two examples of a merchandising business, and two examples of a manufacturing business. Of the companies you mention, which one would you prefer to be the CEO of? How would you manage that choice differently based on what type of business it is? For example, how would you lead a service business versus a manufacturing business? How would your concerns be different and how would they be the same？

Answer 1

(1): Service based companies: Microsoft and Intel.

(2): Manufacturing based companies: Apple and TOYOTA

(3): Merchandise based companies: Amazon and Alibaba

Manufacturing company manufactures a product while on the other hand service company provides service. Manufacturing business make the physical product, fore example: A soap company is manufacturing soap, it can sell the product directly to the end consumers or it can be into business to business (B2B). Service company provides service directly to end consumers or through channel, for example: accounting firms, IT companies. Merchandise business in the business where finished/final product is kept for sale. E-commerce companies do not make the products, they sell the products of different brands, they keep the finished goods inventory based on the order and demand.

I would like to be CEO of service company, there is lower risk in service company than in manufacturing based business. In manufacturing business, raw material, labor, overheads are required. Raw material prices keep changing based on the economic activities. Some manufacturing business may be cyclical. It depends upon the demand and supply of raw material, it need lot of investment to set up a plant or factory for manufacturing business while in service based business, it requires lower cost.