Production-orientated companies include Ford Motor Company and McDonald's. As production-oriented companies, both organizations focus on their own internal efficiency and the quality of their products. These companies look internally to decide how to conduct business. Production-oriented companies do not take into consideration how their products suit customer's needs to the same degree as companies that are market or sales oriented.Continue Reading
Production-orientated companies conduct business based on four underlying assumptions. First, they believe that success at building a product that is superior to the competition's makes the company economically successful. Second, they believe they can sell any of their products so long as quality is sufficiently high. Third, they assume they can make a profit if they sell enough products. Last, they believe that customers can be expected to buy all the products they can produce if the price is fair.
Companies that have recently introduced a new invention to the marketplace often rely on production orientation with great success. Later, when competition moves into the marketplace, their production orientation can cause them to lose customers to competitors that are market and sales focused. A famous example of extreme production orientation is Henry Ford, who, at the time when Ford Motor Company produced only Model-T cars, famously declared that his customers could have any color Model-T they wanted as long as it was black.Learn more about Corporations