The needs and preferences of customers and the performance and activities of competitors are two major influences on the objectives of the operation. The fundamental purpose of operations is to create a service in such a way as to meet the needs of the customers. What customers find important the operation should regard as important as well. The needs and preferences of customers shape the importance within our operation.
Competitors are the points of comparison against which the operation can judge its performance. The improvement which matters most is that which takes the operation past the performance levels achieved by our competitors.
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