Business Operations Summary Notes

Students should discuss how operations management plays a strategic role in achieving cost leadership and good/service differentiation. Cost leadership involves being the lowest-cost producer in the industry, while good/service differentiation involves offering unique or superior products/services compared to competitors.

Students should list and explain the key activities such as planning activities, purchasing inputs, managing inventory, selecting and implementing manufacturing processes, and developing strategies to gain a sustainable competitive advantage.

Students should discuss the impact of globalisation on operations strategy, including factors such as increased competition, access to global markets, supply chain complexities, and the need for standardization or customization of products/services.

<p>Students should explain the importance of corporate social responsibility in operations management, including its impact on reputation, stakeholder relationships, ethical considerations, and sustainability.</p> Signup and view all the answers

<p>Students can recommend a specific operations strategy, such as lean production, total quality management, technology adoption, supply chain optimization, or customer-centric approach, and explain how it can help the business sustain its competitive advantage.</p> Signup and view all the answers

<p>Labour law compliance refers to adhering to the legal regulations and standards related to employment and working conditions. This includes minimum wages, award wages, working hours, breaks, pay for various forms of leave, workers compensation, and work health and safety laws.</p> Signup and view all the answers

<p>Environmental and public health compliance regulations encompass laws and regulations aimed at preventing dumping, pollution (air, land, and water), and establishing standards for the operation and disposal of waste.</p> Signup and view all the answers

<p>Business licensing rules involve requirements such as specific levels of training or certification, operational conditions, restricted working hours, zoning restrictions, and content and disclosure restrictions.</p> Signup and view all the answers

<p>Taxation aspects include levies, duties, taxes on profits, and superannuation. Taxation can be used to incentivize certain practices or discourage specific activities, impacting business operations.</p> Signup and view all the answers

<p>Intellectual property regulations address issues related to moral rights, including copyright, patents, trademarks, designs, and other original ideas and artistic works, providing legal protection and safeguarding the rights of creators and innovators.</p> Signup and view all the answers

<p>The key characteristics of cost leadership strategy in operations include aiming to be the lowest cost manufacturer in the industry, leveraging economies of scale to negotiate large volumes of supply, and utilizing systems like cross-docking for efficient stock movement.</p> Signup and view all the answers

<p>Walmart exemplifies cost leadership through its slogans 'Every Day Low Prices' and 'Save money. Live better', its extensive network of over 100,000 suppliers, and its effective use of economies of scale to achieve cost advantages.</p> Signup and view all the answers

<p>The objectives of product differentiation include having unique or leading-edge outputs compared to competitors, which can be achieved through better quality, quicker supply, custom-designed outputs, more features, cross-branding, strategic alliances, and offering standardized or customized, perishable or non-perishable goods.</p> Signup and view all the answers

<p>Perishable goods require high standards, quick distribution, appropriate packaging, and may involve further processing to meet quality and freshness standards.</p> Signup and view all the answers

<p>Economies of scale create cost advantages through increased business operations scale, allowing for reduced average costs as production levels increase.</p> Signup and view all the answers

<p>Cost leadership is a strategy where a business aims to become the lowest-cost producer in its industry. This allows the company to offer its products or services at a lower price than its competitors, which can lead to increased market share and profitability. Cost leadership is significant in business operations as it helps minimize costs, achieve economies of scale, and gain a competitive advantage.</p> Signup and view all the answers

<p>Globalization influences business operations by removing trade barriers between nations and providing market opportunities, but it can also pose threats. Large businesses orient their practices towards the global market and use supply chain management to achieve economies of scale. Globalization impacts various aspects of operations, including procurement strategies and sourcing.</p> Signup and view all the answers

<p>The fast food industry and call centers are examples of highly standardized service delivery. These industries focus on providing consistent and uniform products or services to customers.</p> Signup and view all the answers

<p>The key factors influencing business operations include globalization, technology, quality expectations, cost-based competition, government policies, legal regulations, and environmental sustainability.</p> Signup and view all the answers

<p>Self-service is encouraged in industries like finance and travel to minimize costs, but drip pricing can be an issue in online transactions. Drip pricing involves revealing additional fees or charges gradually during the purchasing process, which can affect consumer trust and satisfaction.</p> Signup and view all the answers

<p>Government policies can create changes that benefit the business, but they are accessible to other businesses as well. Rules and regulations provide a level playing field for all businesses. Laws and regulations significantly affect the operations of a business, leading to compliance costs.</p> Signup and view all the answers

<p>Examples of laws that affect business operations include Racial Discrimination Act, Sex Discrimination Act, Workers Compensation Act, Disability Discrimination Act, Age Discrimination Act, Anti-Discrimination Act, Work Health and Safety Act, Environment Protection and Biodiversity Conservation Act, Superannuation Guarantee Act, Taxation Act, Corporations Act, and Fair Work Act.</p> Signup and view all the answers

<p>Business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations. Environmental sustainability in operations management is significantly affected by the rise in climate change awareness and the need to integrate long-term sustainable resource management into business planning and practice.</p> Signup and view all the answers

<p>Ignoring environmental responsibility can lead to fines, legal action, loss of investors, negative media coverage, and a loss of customers.</p> Signup and view all the answers

<p>Corporate social responsibility (CSR) refers to open and accountable business actions based on respect for people, community/society, and the broader environment. CSR places value on financial returns as well as social responsibility and environmental sustainability, going beyond just complying with laws and regulations.</p> Signup and view all the answers

<p>Technology can make production processes more efficient, providing a competitive advantage, but it can also be expensive for businesses. It gives access to new production processes and product lines, but can render existing products outdated.</p> Signup and view all the answers

<p>Quality expectations influence consumer satisfaction and supplier standards, impacting a business's success. For example, Adidas generated over $18.4bn in sales, with half from 200 million customised sport shoes, and Tiffany &amp; Co. is known for high-quality diamonds and offers replacement, repair, or refund for products not meeting expectations.</p> Signup and view all the answers

<p>Government policies significantly influence business operations. For example, carbon pricing and regulations on mergers and takeovers are examples of government policies affecting business operations, and various government policies, including taxation rates, environmental policies, and employment relations, impact business operations.</p> Signup and view all the answers

<p>Cost-based competition aims to minimize costs while maintaining profit margins, especially through mass customization.</p> Signup and view all the answers

<p>Technology in operations management includes MRP, Gantt Charts, and CPA for planning and decision-making.</p> Signup and view all the answers