3.2.1 operations management

Question 1

define operations management

Answer 1

involves coordinating and organising the activities involved in producing the goods or services that a business sells

Question 2

define efficiency

Answer 2

efficiency is how productively a business uses its resources when producing a good pr service.

Question 3

define effectiveness

Answer 3

is the extent to which a business achieves its stated objectives.

Question 4

explain the relationship between the business objective to improve efficiency and operations management

Answer 4

operations strategies may include using technology to automate the production process. this may increase a business’s productivity in terms of production speed, as well as reducing the amount of resources discarded in the production process.

Question 5

explain the relationship between achieving the business objective to meet shareholder expectations and operations management

Answer 5

a possible operations strategy could be creating a website for customers to purchase products online. this may increase online sales, which can lead to higher levels of profit and increase dividends for shareholders.