Operations

Question 1

What are the 4 key business functions

Answer 1

Operations, marketing, finance, human resources

Question 2

What are the two strategic roles of operations

Answer 2

Cost leadership and good/service differentiation

Question 3

What is cost leadership

Answer 3

Being the market leader by charging lower prices. To achieve this a business needs to have lower costs.

Question 4

what is good/service differentiation

Answer 4

Being a market leader by producing a product with different features or higher quality than its competitors

Question 5

What are the 8 influences on operations management

Answer 5

Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environmental sustainability and corporate social responsibility

Question 6

What does interdependence with other key business functions mean

Answer 6

connections, reliance and all business functions working together to achieve the strategic goals of the business

Question 7

What is globalisation

Answer 7

Globalisation refers to process of increasing connections and relationships worldwide - made possible by increased trade between nations.

Question 8

How does Globalisation influence Holden

Answer 8

Global sourcing allows GM Holden to purchase supplies at a lower cost. Global exporting allows them to export around the world. Negatives has increased competition as imported cars are cheaper.

Question 9

What is technology and where is it used / why is it useful

Answer 9

technology refers to the design and construction of innovative devices. Its used in either the administration or manufacturing. Although expensive to set-up, technology can create more efficient procedures and improve quality, improving profitability in the long-term.

Question 10

What is leading technology

Answer 10

refers to technology that is cutting edge, technology so new that in many cases lacks technical support, involves high costs for purchase and training but gives the company a competitive advantage

Question 11

What is established technology (give 3 examples)

Answer 11

technology that has been around and readily available.eg. e-commerce, POS, CAD + CAM

Question 12

What is economies of scale

Answer 12

As a business grows outputs increase and unit cost prices fall. however a point is reached where a business can get too big and becomes inefficient

Question 13

What is supply chain management

Answer 13

is the relationship businesses have with their suppliers. logistics, e-commerce and global souring all come under supply chain management.

Question 14

What is logistics

Answer 14

logistics broadly speaking means distribution, transport and storage.

Question 15

What is e-commerce

Answer 15

refers to the processes of conducting business using online services

Question 16

What are the six performance objectives

Answer 16

Quality, speed, dependability, flexibility, customisation, cost

Question 17

What is quality expectations

Answer 17

refers to the customers expectation of certain levels of quality in the good and service

Question 18

What is cost-based competition

Answer 18

is the competition between companies to have the lowest prices, for a business to have the lowest price they must first perform the operations process most cost efficiently as possible

Question 19

What is government policies

Answer 19

Are laws and regulations which affect how a business operates

Question 20

What is environmental sustainability

Answer 20

Environmental sustainability refers to the practice of ensuring that there are sufficient resources for future generations.

Question 21

What is corporate social responsibility

Answer 21

refers to a business doing more than just obeying the law. often requires a company doing things on behalf of the community and people

Question 22

What are the 2 inputs

Answer 22

Transformed and transforming resources