3.2 The relationship between operations management and business objectives

Question 1

Explain the relationship between operations management and business objectives? 3 marks

Answer 1

Operations management refers to all the activities in which managers engage to produce goods or services. Without an operations managment a business would have no product and therefore will not be able to acheive it’s objectives (desired outcome or specific results a business intends to acheive). Operations managment will implement stratergies involved in managing materials, waste, technolgy use and quality to increase efficiency and the acheivement of business objectives (effectiveness). For example an operations manager can implment waste minimisation stratergies such as ‘reduce’ which can lower the business’s costs/expenses, thus which can support the acheivement of business objectives such as to increase it’s profits.

Question 2

Define the term operations management

Answer 2

Operations management relates to all the activities in which managers engage to produce goods and services

Question 3

define business competitiveness

Answer 3

Business competitiveness: the ability of a business to sell products in a market

Question 4

define inputs

Answer 4

Inputs are resources used in the process of production

Question 5

give an example of how an operations manager can implement a strategy that works towards the achievement of a business objective

Answer 5

eg. The business objective may be to reduce costs (expenses) which can be acheived/works towards when an operations stratergy of ‘Just in time’ is used

another includes lean management operations strategy to minimize waste

Question 6

Compare efficiency and effectiveness 4 marks

Answer 6

Efficiency relates to how a well a business uses resources to achieve objectives whereas effectiveness relates to the degree to which a business has achieved its stated objectives. A key distinguishing factor between these terms is a business can be efficient however it does not necessarily mean the business will be effective. For example a business may be increase efficiency by implementing technology such automated production lines into their production processes which can reduce costs, however it does not guarantee that business objectives such as increasing market share will be met. A similarity between these two terms is in most cases if a business is more efficient (i.e uses resources more efficiently) this can lead to a decrease waste, expenses and increase quality, which can lead to business objectives being acheived.