Year 12 Business Studies Past Paper PDF

Beginning Year 12 Business Studies  HSC Business Studies: Four Topics Operations Finance Marketing Human Resources 25% of course time 25% of course time 25% course time 25% of course time 5...

Beginning Year 12 Business Studies  HSC Business Studies: Four Topics Operations Finance Marketing Human Resources 25% of course time 25% of course time 25% course time 25% of course time 5 marks multiple choice 5 marks multiple choice 5 marks multiple choice 5 marks multiple choice 10 marks short answer 10 marks short answer 10 marks short answer 10 marks short answer Business Report (scenario) Business Report (scenario) Business Report (scenario) Business Report (scenario) OR OR OR OR Extended Response Extended Response Extended Response Extended Response (case study response) (case study response) (case study response) (case study response) Operations turns inputs into Finance provides, monitors Marketing determines customer Human Resources manage outputs using the + controls financial needs and wants, creates the the relationship between products, identifies the target production process. resources to all areas of the employees and employers. market, creates a marketing plan business. and implements strategies to They staff all KBF's to increase profit and market achieve goals. share. 4Ps + 3Ps Use case study examples of Global Businesses e.g., McDonald's, Qantas and Apple to learn how each Key Business Function helps a business achieve their goals. Examine the Role, Influences, Processes and Strategies of each KBF Role of Operations Management (DP1-DP3) Operations RIPS HSC Business Studies Topic 1: Operations (17 Dot Points)  Role of Operations: Syllabus Link to: Operations Syllabus + acronyms DP1: strategic role of operations management – cost leadership, good/service differentiation DP1 Strategic Role of Operations Operations achieves its strategic role through either cost leadership or differentiation strategies OR a combination of both. Kia is an example of a company that focuses on Cost Leadership. Rolls Royce is an example of a company that focuses on Differentiation. Differentiation focus at Rolls Royce Cost Leadership strategy at Kia  DP 1 strategic role of operations management – cost leadership, good/service differentiation Strategic long-term, broad goals affecting all KBFs. Managers of each function contribute to the strategic plan of the business. Operations Operations involves various processes that transform and add value to business inputs in the creation of outputs. Cost A business that uses the cost leadership strategy aims to have the lowest cost or be the Leadership most price-competitive in the market. Operations managers must find ways to minimise costs. Standardisation Producing products that are identical. Usually involves mass production in high volume, with no variety and at a low cost per unit. A way to achieve economies of scale Differentiation A business that uses the cost leadership strategy means distinguishing products (goods or services) in some way from its competitors. E.g. Grill’d distinguishes itself from McDonald’s via the quality and local sourcing of the ingredients ACTION: Copy this to your notes (good for flash cards) Achieving Cost Leadership via Economies of Scale Cost leadership aims to have the lowest costs or be the most price competitive in the market. Economies of Scale (EOS) are cost advantages created because of an increase in scale of business operations. Business can achieve CL via EOS by: 1. Buying inputs at a lower cost per unit by buying in BULK 2. Using more TECHNOLOGY and machinery which increases efficiency 3. STANDARDISING (making identical products). Usually involves mass producing items on an assembly line, in high volume, with no variety and at a low cost per unit. Case Study: McDonald's Cost Leadership via Economies of Scale The size of McD means they can use EOS achieve CL They achieve EOS by standardising products and buying in bulk They use tech to drive efficiency and reduce long term operational costs. Tech innovations include: ○ automated drink dispensers, ○ digital menu boards, ○ mobile app ordering, ○ self service touch screens. 2023 operational costs were similar to its main competitor Yum! Brands, who have over 55,00 outlets through brands including KFC ,Pizza Hut and Taco Bell Case Study: Qantas achieving Cost Leadership via EOS Qantas cut costs by $5 billion in past 6 yrs and plans to reduce by a further $330mil in 2024 EOS plays a critical role in the aviation industry. Overhead costs per passenger decrease as fixed costs are spread across more passengers. Qantas also secures bulk deals for fuel Extensive tech to cut production costs including online booking, ticketing, self- check in which reduces customer facing staff lowering labour Goods/Service Product Differentiation Product differentiation means distinguishing products (goods or services) in some way from its competitors. How Operations can differentiate Goods How Operations can differentiate Services Colour Varying the amount of time spent on Product Features (think of differences a services in phones) varying the level of expertise brought Product Quality (think Apple v Acer) to a service. Augmented features e.g. cars - can fit non standard features e.g. a spoiler, varying the qualifications and leather seating etc. experience of the service provider. Case Study: Qantas Differentiation Project Sunrise: A350 direct flights to London and NY Economy passengers: stand-and-stretch ‘wellness space’. Can stand and follow exercises on a video creating a destination for passengers away from their seat. This Wellbeing Zone includes a self-service snack and ‘hydration’ bar First Class - features to make customers feel like they are in a mini boutique hotel room - extra-wide fixed bed, separate recliner chair, personal wardrobe, dining table for two All classes - Customisable cabin lighting inspired by the colours of the Australian landscape and grounded in science to help minimise jetlag and improve customer wellbeing. DP2: Goods and/or services in different industries Overview: Goods and/or services in different industries The role of the Operations Manager is different depending on the type of goods or services that are produced by the business. The operations manager will follow different processes depending on the type of industry: - Goods or services - customised or standardised - perishable or non-perishable What is the role of operations here? What type of good or Characteristics service? Standardised? Economies of scale? Customised? Differentiation? Perishable? Cost Leadership? Non-perishable? Mass produced? Self Service? Increased complexity? Short lead times? Uniform in quality Action: Discuss as a class. Choose Assembly line at least 2 from column 1 and as many as apply from column 2 What is the role of operations here? What type of good or Characteristics service? Standardised? Economies of scale? Customised? Differentiation? Perishable? Cost Leadership? Non-perishable? Mass produced? Self Service? Increased complexity? Short lead times? Uniform in quality Rolls-Royce’s Bespoke Phantom Features 1 Million Stitches | Man of Many Action: Discuss as a class. Choose at Assembly line least 2 from column 1 and as many as apply from column 2 What is the role of operations here? What type of good or Characteristics service? Standardised? Economies of scale? Customised? Differentiation? Perishable? Cost Leadership? Non-perishable? Mass produced? Self Service? Increased complexity? Short lead times? Uniform in quality Action: Discuss as a class. Choose 2 Assembly line at least 2 from column 1 and as many as apply from column 2 What is the role of operations here? What type of good or Characteristics service? Standardised? Economies of scale? Customised? Differentiation? Perishable? Cost Leadership? Non-perishable? Mass produced? Self Service? Increased complexity? Short lead times? Uniform in quality Action: Discuss as a class. Choose at Assembly line least 2 from column 1 and as many as apply from column 2 What is the role of operations here? What type of good or Characteristics service? Standardised? Economies of scale? Customised? Differentiation? Perishable? Cost Leadership? Non-perishable? Mass produced? Self Service? Increased complexity? Short lead times? Uniform in quality Action: Discuss as a class. Choose 2 Assembly line at least 2 from column 1 and as many as apply from column 2  Action: Write in your notes Customised Goods Goods are those that are varied according to the needs of customers. The layout and complexity of operational processes will increase as the goods are differentiated by customisation e.g., Rolls Royce CASE STUDY: McDonald’s and Subway Subway led the way with their completely customisable sandwiches. Customers choose the bread, filling, individual salad items and sauce. The success of this influenced Maccas, and in 2015 they launched the Create your Taste Menu allowing customers to customise burgers. This added complexity impacted on speed and cost and the Create your Taste and Gourmet Creations were withdrawn. McD now focus on their core menu.  Action: Write in your notes Standardised Goods Standardised goods are those that are mass produced, usually on an assembly line. Uniform in quality and meet a predetermined level of quality. Costs associated with the production of the product can be minimised and economies of scale can be achieved. E.g. McDonalds Fries, McDonalds nuggets, Toyota cars  Action: Write in your notes Perishable Goods Goods that have a short shelf life. Examples include food, vitamins, medicines. Operations processes must focus on: high standards of quality, safety and cleanliness short lead times and fast distribution Well designed, robust packaging and cold storage Eg. McDonalds meat patties, they scan them for bone fragments and metal How Are McDonald's French Fries Made - Food Factory  Action: Write in your notes Non - Perishable Goods More durable than perishable goods. Examples include vehicles, clothes and electrical appliances. Operations must focus on quality and inventory management. Operations processes need to focus on: Quality Managment is critical as it can lead to product recalls or safety issues e.g. Qantas engine failure, milk recalls due to bacteria Inventory management strategies – to decrease costs and reduce waste much not to over produce and ensure inventory does not go out of date/fashion e.g. technology, clothing.  Action: Write in your notes Services in different industries Services can also be both standardised and customised. The fast-food industry is an industry that typically standardises the service. This differs from industries that are characterised by professionally educated and trained people e.g. Accounting, dental, medical, legal and so on are generally customised. When services are standardised a cost leadership strategy is being applied. DP3: Interdependence with other Key Business Functions (KBF’s) What is interdependence? Class discussion How are parents and teens interdependent? In other words, how do you rely on each other How are teachers and students interdependant? Interdependence means - being mutually depending on each other. - Relying on each other - Depending on each other Think! What are you dependent on your parents for? What are they dependent on you for? Example HSC Questions: How are marketing and operations interdependent? Example Answer: Interdependence refers to the mutual reliance of the four KBF's to achieve the overall goals of the business. Failure to work together towards the same goals will mean the business is not likely to achieve its objectives. For marketing to do one part of their strategic role, promoting the business’ products, it depends on operations to have the products available at the quality specified in the marketing plan. In turn, for operations to do its strategic role of producing the product for the business using cost leadership or differentiation, it depends on marketing, to provide the product designs. Interdependence of marketing with other KBFs ACTION: Formative Use your second exercise booklet 1. How is operations interdependent with finance? (4 marks) Interdependence writing formula: To answer an interdependence question (common in the HSC) use this proforma. ` Interdependence refers to the mutual reliance between the four key business functions where each can only achieve their strategic role by depending upon actions of the other KBFs. Failure to work together towards the same goals will mean the business is not likely to achieve its objectives. Interdependence occurs when each KBF is committed to the same business goals as the other key areas and they each work in a collaborative and coordinated way to achieve these goals. For example For Operations to perform its strategic role of achieving cost leadership and/ or differentiation it is dependent upon Finance to _________________________ In turn, Y depends on X for _______________________________________________________