Business Studies Syllabus Revision

Question 1

Discuss the balance between cost and quality in operations strategy.

Answer 1

Reducing costs may lead to reduced quality and vice versa.

About finding the balance in cost and quality, implementing cost strategies which won’t affect or improve quality.

Question 2

Examine the impact of globalisation on operations strategy.

Answer 2

Includes:
Global Sourcing - includes access to cheaper and more advanced resources but also having to relocate operations processes.

Economies of Scale

Scanning and Learning - Influenced by kaizen, continuous improvement.

Research and Development

Question 3

Identify the breadth of government policies that affect operations management.

Answer 3

Includes:
Labour Law
Environmental and Public Health
Business Licensing
Taxation
Trade Practices
Migration, Offshore Labour
Intellectual Property
Financial Accounting
Corporations Law
Human Rights

Question 4

Explain why corporate social responsibility is a key concern in operations management.

Answer 4

CSR places value on financial
returns as well as social responsibility and environmental sustainability. Can be attractive to consumers, vice versa.

Question 5

Explain why goods and/or services are central to both marketing and operations.

Answer 5

The marketing concept where all business functions are involved to satisfy customer needs.

If the success of the marketing plan means having a good or service ready by a certain date, the operations plan will need to be in place to make sure that happens.

Question 6

Examine why ethical behaviour and government regulation are important in marketing.

Answer 6

Ethical and government legislation discourages unethical marketing practices.

Can lead to significant marketing and business opportunities.
Can attract new customers and keep loyal ones.
Positive effect on employment relationships.
Attract more investors.
Improve reputation.

Question 7

Assess why a mix of promotional strategies is important in the marketing of goods
and services.

Answer 7

Since each element of the promotion mix has different benefits,
it’s important for businesses to use a mix of promotional strategies
in order to cater to the needs of everyone in their target market.

Question 8

Explain potential conflicts between short-term and long-term financial objectives.

Answer 8

Investing in long-term e.g. growth may lead to diminished short-term profits e.g. research and development.

Question 9

Analyse the influence of government on financial management.

Answer 9

ASIC enforces laws in order to protect consumers, making business act ethically.

Company taxation from 25 to 30% of net profits affects dividends and wage amounts.

Question 10

Identify the limitations of financial reporting.

Answer 10

Normalised Earnings
Capitalising Expenses
Valuing Assets
Timing Issues
Debt Repayments
Notes to Financial Statements

Question 11

Compare the risks involved in domestic and global financial transactions.

Answer 11

Exchange rate fluctuations, minimised with hedging and derivatives with:
Forward Exchange Contract
Options Contract
Swap Contract

Interest Rates have major impacts in profitability, makes businesses consider interest rates they use.

Methods of international payment risky since importer may not pay or exporter may not ship the good. Mitigated with:
Payment in Advance
Letter of Credit
Bill of Exchange
Clean Payment

Question 12

Analyse the influence of the global market on financial management.

Answer 12

Global Economic outlook affects demand and interest rates, impacting financial decisions of businesses.

Availability of funds from international lenders.

Interest rates movements increase risk, cheaper interest rates encourage businesses to borrow overseas.

Question 13

Discuss the influence of government on the process of determining employment contract.

Answer 13

Common law set by courts provides set of rights and obligations for ees and ers.

Ten National Employment Standards and minimum wage rates set minimum standards for employees.

Awards are legally enforceable terms and conditions specific to a business or industry.

Enterprise agreements must past a BOOT compared to a modern award.

Question 14

Explain how businesses exhibit corporate social responsibility in the management of human resources.

Answer 14

Presenting a safe and fair working condition which motivates and retains staff, failure may lead to increase in turnover and possible legal action.

Question 15

Analyse the causes of two workplace disputes and the strategies used to resolve them.

Answer 15

Employment and remuneration causes of workplace dispute. Can be resolved through negotiation (parties resolve it themselves), mediation (independent mediator assists with decision) or arbitration (arbitrator provides legally binding option to resolve dispute).

Question 16

Examine the advantages of a diverse, culturally competent workforce for a global business.

Answer 16

Equal Employment Opportunity (EEO), diverse workforce makes business more CSR, more culturally aware, important in globalised business world.

Question 17

Identify operations strategies.

Answer 17

Performance Objectives
New Product Design and Dev
Supply Chain Management
Outsourcing
Technology
Inventory Management
Quality Management
Overcoming Resistance to Change
Global Factors

Question 18

Explain how globalisation has affected marketing management.

Answer 18

Includes Global Branding and Pricing with customization and standardization.
Competitive Positioning.

Question 19

Recommend strategies to improve financial performance.

Answer 19

Cash Flow Management
Working Capital Management
Profitability Management
Global Financial Management

Question 20

Explain the interdependence between human resources and other key business functions.

Answer 20

Effective HR is linked to profit and share prices gains. Stronger relationships between consumers and business. Better performance from ees.

Question 21

Compare the process of negotiating enterprise/collective agreements with the negotiation of individual contracts.

Answer 21

Ind contracts usually more common in private and higher paying jobs, more informal and offer less protection, still required to pass BOOT.

Question 22

Discuss the advantages and disadvantages of outsourcing in the global market.

Answer 22

Simplification
Efficiency and Cost Savings
Increased Process Capability
Increased Accountability
Access to Skills/Resources Lacking
Capacity to focus on core business
Improved in-house performance

Payback periods
Language barriers
Loss of control of standards and secure
Hierarchies
Organizational Change
Loss of corporate memory, vulnerability
Need for IT

Question 23

What are some cost controls Qantas has implemented? How are they effective?

Answer 23

Renting lower frequency flight terminals
Freezing wages
Outsourcing flight attendant roles
Partnering with Emirates and American Airlines

Reduced costs of $7 billion in the last 13 years.

Question 24

What are some cost controls Apple has implemented? How are they effective?

Answer 24

Lower-Cost Models
Used in-house components
Pegatron instead of Foxconn for budget
Relocation prod to India
Reduce depend on China
Acquired Intel

Apple has effectively minimised it’s costs from $3.1 billion in acquiring Intel chips down to just $697 million when using TMSC chips.

Question 25

What were some controversies regarding Foxconn?

Answer 25

Independent investigations coordinated by The New York Times and The Fair Labour Association citing excessive overtime and unsafe working conditions.

Question 25

What was the Qantas Outsourcing Scandal about?

Answer 25

High Court’s decision deeming the sacking of the nearly 1700 workers illegal, forcing Qantas to compensate the workers with $200 million.

Question 26

How has Qantas used Sale-and-Lease-Back?

Answer 26

Sell-and-leasing back Sydney Airport Terminal, reducing interest costs in 2018 by $73 million by paying off $1 billion of it’s debts in 2015.

Question 27

How has Apple controlled it's current assets and liabilities?

Answer 27

Pre-pays suppliers to ensure stock is available and uses FIFO with JIT used for more expensive components. Offering discounts for early payments, issuing reminders, credit checks, charges for late payment. Taking advantage of early discounts Seeking alternate suppliers with better credit terms

Question 28

How effective was Coca Cola's marketing campaign?

Answer 28

Coca Cola (CC) launched their “Share a Coke” Campaign. Young adult consumption of c rise significantly by 7%, driving sales of over 250 million Coke products in the span of 3 months, becoming their best summer in terms of sales, eve.

Question 29

How effective was Apple's Promotion Strategy?

Answer 29

Use of their relationship with social media and creating publicity through creative advertising along with their brand recognition. Ap has earned a 16% market share in 2022 Q2, second behind Samsung, as well as generating $365 billion revenue in 2021, 52% coming from iPhone sales.

Question 30

How effective was Chrysler's Jeep campaign?

Answer 30

"I bought a Jeep campaign" From 4600 unit sales a year between 1999 and 2009, to 18 thousand units in 2012 and seeing exceptional growth later, selling over 30 thousand units by the end of 2014.