Chapter 2: Influences on operations management Flashcards
(59 cards)
Influences: Globalisation
Define Globalisation
The process of increasing interactions between nations.
Influences: Globalisation
Define tariffs
Taxes placed on imported goods, making them more expensive and encouraging consumers to buy goods produced domestically.
Influences: Globalisation
What are quotas?
Limits placed on the amount of a particular product that may be imported from a particular country.
Influences: Globalisation
What are subsidies?
Government grants given to businesses to encourage them to operate in the country and/or to help them compete with overseas businesses.
Influences: Globalisation
What are embargos?
Embargoes ban the import of goods from a particulat country; producers generally require a license to export goods to a certain country, with the number of licenses generally limited, acting as a partial embargo.
Influences: Globalisation
Identify 2 positives of globalisation
- New customers in overseas markets
- Access to new technology
- Access to finance from overseas sources
- The ability to source cheaper inputs overseas (supplies, labour, etc. ) to lower production costs.
Influences: Globalisation
What is a disadvantage of globalisation?
Exposure to competition from overseas businesses.
Influencers: Globalisation
What does the supply chain refer to?
The range of suppliers a business has and the nature of its relationship with those suppliers.
Influences: Technology
Outline three advantages to a business of utilising technology in its operations.
- Efficiency and productivity
- Informed decision making
- Improved customer experience
Increased Efficiency and Productivity: Technology can automate routine tasks, streamline processes, and improve overall efficiency. This can lead to increased productivity, reduced labor costs, and faster turnaround times.
Enhanced Decision Making: Data analytics and business intelligence tools can provide valuable insights into market trends, customer behavior, and operational performance. This information can help businesses make more informed decisions and identify opportunities for growth.
Improved Customer Experience: Technology can enable businesses to provide personalized experiences, enhance customer service, and foster customer loyalty. For example, online chatbots or virtual assistants can provide instant support, while mobile apps can offer convenient access to products and services.
Influences: Technology
Describe threats or challenges posed by technology.
Influencers: Globalisation
What does sourcing refer to?
It is a key aspect of supply chain management, and refers to how a business acquires its inputs.
What does the global web refer to?
The nextwork of locations around the world that the business has chosen for different parts of the production process and suppliers from which inputs are sourced.
Influences: Quality expectations
Define quality
How well goods are designed, made and functional and the degree of competence with which services are organised and delivered.
What is globalisation?
Process of increasing interactions between nations economically, culturally, socially and politically.
What are the main drivers of globalisation?
- Transportation: Shipping, aeroplanes reduce distance.
- Communication: Phones, satellites, internet remove barriers.
- Government Policies: Relaxed restrictions on product and financial movement.
What are some effects of globalisation?
- Greater movement of goods, services, people, investment and information worldwide.
- Accelerated from the 1970s due to tech advancements and policy changes.
What are tariffs?
Taxes placed on imported goods, making them more expensive and encouraging consumers to buy domestically produced goods.
What are quotas?
Limits placed on the amount of a particular product that may be imported from a particular country.
What are subsidies?
Government grants given to businesses to encourage them to operate in the country and/or to help them compete with overseas businesses.
What are the advantages of globalisation?
- New customers in overseas markets.
- Access to new technology.
- Access to finance from overseas sources.
- Ability to source cheaper inputs overseas.
What are the disadvantages of globalisation?
- Increased competition from global companies.
- High risks in overseas expansions (cultural, language, market complexities).
How has Qantas reduced costs through globalisation?
By outsourcing functions like aircraft maintenance and IT operations to lower-cost locations.
What is the global web strategy in supply chain management?
Strategically locating production facilities and suppliers around the world to optimise costs, reduce risks, and improve efficiency.
What is the difference between imitators and innovators in supply chain management?
- Imitators: Focus on cost-effective production of existing products.
- Innovators: Prioritise unique inputs and processes to create differentiated products.
