1. operations strategies Flashcards
1
Q
What are performance objectives?
A
- goals that relate to particular aspects of the transformation processes.
- Enables business to be more efficient, productive and profitable.
2
Q
What are the six main performance objectives that can be allocated to particular key performance indicators (KPIs)?
A
- Quality
- Customisation
- Flexibility
- Dependability
- Speed
- Cost
3
Q
What is quality determined by and how are they used in business?
A
Determined by consumer expectations used to inform the production standards applied by the business
3
Q
What are the types of quality performance objectives?
A
- Quality of design
- Quality of conformance
- Quality of service
4
Q
What does quality of design involve?
A
- understanding of consumers and their preferences.
- how well a good is made or a service is delivered
5
Q
When does design process begin and what factors does it influence in production?
A
- Prior to creation
- Design determines inputs, the arrangement of transformation processes, and how they perform in relation to production.
6
Q
What are indicators of a high-quality design for a product?
A
high-grade materials, care and presentation, aesthetic appeal, functionality, robustness, and longevity.
7
Q
What is quality of conformance?
A
- focus on how well product meets standard of prescribed design
- measure of how consistently product achieves conformance with desired specifications
8
Q
What three factors are in the quality of design and delivery in services?
A
- Service reliability
- Does the service meet client needs
- Is the service delivery responsive to consumer expectations
9
Q
What is speed (performance objectives)?
A
time taken for production times and operations process to respond to changes in market demand
Requires changes in input levels and processing times = align consumer expectations.
10
Q
What is the goal of speed as a performance objective?
A
- Aims to satisfy customer demand asap
- Goals = reduce wait, shorter lead, speedier processing times
11
Q
How can a business achieve shorter speed?
A
- fewer procedural and technical bottlenecks - cost leadership (minimising costs of defects)
- smooth internal communications.
12
Q
case studies for speed as a performance objectives?
A
MCDONALDS
- Plant and process layout design for logical placement of ingredients and equipment
- Drive through capability worldwide - stand out, differentiation good through speedy service
AMAZON
- Next day or same day delivery makes their good more appealing to consumers
13
Q
What is dependability in general and for goods and services (performance objectives)?
A
- refers to how consistent and reliable a business’s products are.
- Goods - how robust the item is before it fails.
- Services - consistency of service standards and reliability.
14
Q
How can dependability be measured for goods vs services?
A
- Goods - By number of warranty claims
- Services - number of complaints received
15
Q
How dependability can be used in operations management to achieve the strategic role of operations and the performance objectives.
A
- Improve customer satisfaction
- Provide unique customer service
16
Q
What is flexibility?
A
Refers to how quickly operations can adjust to changes in the market.
17
Q
How can operations team can achieve flexibility?
A
- Increase capacity of production - use equipment better
- Buy new technology
- Change product design
- Services - increase providers skill level
18
Q
What is the effect of enhancing flexibility on the strategic role of operations and performance objectives?
A
- Increased customer satisfaction
- Differentiated customer experience and goods
19
Q
case study for flexibility as a performance objective?
A
UBER EATS
- Flexible to change order within first few minutes
20
Q
What is customisation?
A
Refers to the creation of individualised goods and services that meet specific needs of customers.
21
Q
What are some ways products can offer differentiation?
A
Products can differ in features such as colour, size, and functionality.
22
Q
What is mass customisation?
A
- Allows mass produced items to be personally modified to specific customer requirements
23
Q
Why is full customization rare and costly?
A
- requires creating products after receiving specific orders
- higher costs compared to producing standardized products
- only adaptable businesses or those in niche markets offer this.
24
How can customisation be used in operations management to achieve the strategic role of operations and the performance objectives.
- enhance customer satisfaction
- differentiate themselves from competitors
- effectively respond to market demands
25
case study for customisation as a performance objective?
CUROLOGY
- Provides customised skincare formulas depending on the needs of each customer through an online form
Unique formula - suits every customer
26
What is cost as a performance objective?
refers to the minimisation of expenses so that operations processes are conducted as cheaply as possible.
27
What are the methods of minimising operations costs?
- Technology use
- Reduce waste
- Reduce supplier costs
- Manage inventory efficiently
28
What is the effect of minimising costs on the strategic role of operations and performance objectives?
- Reduce expenses for efficient operations
- Better product pricing
- Acquire better inputs = improve product = differentiated
29
case study for cost as a performance objective?
WALMART
- Global example of successful cost leadership
1. Has over 2800 suppliers
2. Constant movement of stock from supplier to stores up to the point of sale.
3. Set up warehouses to manage growing e-commerce presence.
30
What is supply chain management?
integrating and managing the flow of supplies throughout the inputs, transformation processes and outputs to best meet the needs of customers
A sequence of processes that enables businesses to coordinate supplies throughout operations to meet customer needs.
31
What are the three aspects of supply chain management?
- Logistics
- Ecommerce
- Global sourcing
32
What is logistics?
Distribution, including transportation, use of storage, warehousing and distribution centres, materials handling and packaging.
- essential for ensuring efficient flow of products from suppliers to customers
- impacting customer satisfaction and operational efficiency.
33
What is distribution?
Distribution is the method of delivering goods or services to the customer.
34
What is transportation and distribution concerned with?
The various modes of transportation involved in physical movement of inventories.
35
What is storage?
storage involves finding a secure place to hold stock until it is required
36
When is storage necessary?
1. When there are numerous sales outlets
Where demand is variable and needs responsive supply chain
37
What is warehousing?
Warehousing the use of warehouses for the storage, protection and, later, distribution of stock which have associated costs.
38
What are some of the costs associated with warehousing?
- Premises
- Insurance and security for stock
- Stacking and moving stock
Carrying excess/redundant stock
39
What is a distribution centre ad how does it differ to a warehouse?
same purpose as warehouses
not intended for long term storage
- strategically located to minimise the time take to supply stock to retail outlets.
40
Why is materials handling important?
- because some products require particular skills, care or attention when being moved.
- particular standards and methods of operating need to be applied
41
How is materials handling regulated?
Government regulations
- require dangerous goods be stored and handled in particular ways
- requires packaging to be of a particular standard and to carry warnings.
42
What is ecommerce?
the buying and selling of goods and services via the internet and relevant to particular forms of sourcing.
42
How this can ecommerce used in operations management to achieve the strategic role of operations and the performance objectives?
- expand market reach by accessing a global customer base
- increasing sales opportunities.
- enhances customer experience through personalized shopping- satisfaction
- automating order processing, inventory management, and logistics, leading to greater efficiency.
- analytics tools on customer behaviour and preferences - enabling data-driven decision-making.
42
What is e-procurement?
use of online systems to manage supply, which allows suppliers direct access to the business’s level of supplies
42
case study for a B2B arrangement?
- Samsung is a major supplier to Apple in its production of the iPhone.
- Apple also has B2B relationships with Intel, Panasonic and Micron technology.
42
Non-captive (outsourced to third parties through the market) External providers/vendors
(onshore and offshore)
ONSHORE
Unilever India, using Capgemini in Bangalore and Dairy Farm in Hong Kong using Capgemini
OFFSHORE
British Airways (UK) using WNS Global Services (Mumbai, India) or General Motors using AT&T
(Americas)
42
What is sourcing/procurement/purchasing?
the purchasing of inputs for the transformation process
Sources or inputs are drawn from a range of suppliers.
42
What is global sourcing?
Acquire supplies or services without being constrained by location, to engage with the suppliers that best meet its sourcing requirements.
- global sourcing means buying or sourcing from wherever the suppliers are that best meet the sourcing requirements.
42
What is the creation of shared services centres as an outsourcing option?
- In house outsourcing option
- Creation of in house centre that performs work for multiple subsidiaries.
42
What is B2C?
the selling of goods and services to consumers over the internet, with payment usually by credit card.
42
Case study for global sourcing in supply chain management?
- APPLE
- company sources components and materials from various countries around the world
- strategic approach to global sourcing
- allowing it to deliver high-quality products efficiently while maintaining strong profit margins.
42
case study for a B2C arrangement?
- Agoda.com
- sells accommodation to travellers on behalf of hotels
42
What are the four factors influencing choice of source/suppliers?
- Consumer demand
- Quality of inputs required
- Flexibility and timeliness of supply
- Cost of supplier
42
What does a business need to do when determining which sources to use (choosing a supplier)?
- Assess consumer demand to know volume of inputs
- Match quality of inputs to desired quality of outputs
- Assess how responsive and flexible supplier is
Evaluate costs against other suppliers
42
How this can ecommerce used in operations management to achieve the strategic role of operations and the performance objectives?
- Advantage of low overseas production costs
- Enhances product quality - business have more option to choose suppliers
- increases flexibility in production, enabling businesses to quickly adapt to changes in demand by utilizing multiple suppliers.
42
What are the advantages of global sourcing?
- Cost
- Expertise
- Access to new technology and resources
42
Captive or in house (do it yourself) (onshore and offshore)
ONSHORE
- Commonwealth Bank of Australia (CBA), Sydney
OFFSHORE
- Dell or Intel in Penang, serving all of Dell or Intel globally
42
What are the disadvantages of global sourcing?
- possible relocation of aspects of the operations process
- increased cost of logistics, storage and distribution, managing different regulatory conditions between nations
- Increased complexity of operations when sourcing from diverse locations.
42
What are business processes that can be outsourced?
- Operations
- Human resources
- Administrative work
- IT
- Finance and accounting
- Knowledge process outsourcing
- Legal process outsourcing
42
What is a business to business arrangement (B2B)?
- direct access from one business (the supplier) to another (the buyer), allowing the supplier to assess the needs
of the buyer and meet them in a timely manner.
- stock falls to a pre-determined point, replacement occurs even without a formal request from the buyer
42
What factors need to be considered when assessing whether and when to use outsourcing?
- Whether to outsource or not - will It be cheaper
- Which geographical location is better
- Which vendors to use
- details such as the management of the outsourcing contract, the length of contract, the KPIs and service levels are required.
42
What is outsourcing/business process outsourcing (BPO)?
Outsourcing involves the use of external providers to perform business activities.
- service performed by external provider that specialises in a business function
- Will be cheaper and with a greater effectiveness
- than same task done within business hierarchy.
42
What are the different forms of outsourcing?
1. Captive or in house (do it yourself)
2. Non-captive (outsourced to third
parties through the market)
External providers/vendors
42
What are the different options of outsourcing?
1. Creation of shared services centres
2. Use of ‘fee-for-service’ arrangement
3. Joint ventures
4. Use of a ‘build-operate-transfer’ approach
42
What is a business example of the use of joint ventures as an outsourcing option?
WNS Global Services (Mumbai, India)
- British Airways used for ticketing
WNS Global Services now provides ticketing for at least 26 other major airlines including Virgin Atlantic.
42
What is the use of ‘fee-for-service’ arrangement as an outsourcing option?
- low-risk, short-term strategy
- engaging a supplier for fixed services at a pre-determined price
allows business to test outsourcing market before making change.
42
How this can ecommerce used in operations management to achieve the strategic role of operations and the performance objectives?
- Advantage of low overseas production costs
- Enhances product quality - business have more option to choose suppliers
- increases flexibility in production, enabling businesses to quickly adapt to changes in demand by utilizing multiple suppliers.
42
What is the use of a ‘build-operate-transfer’ approach as an outsourcing option?
- involves offshore outsourcing and involves contracting with external organisations.
- use of contracts that detail agreed levels of service against pre-determined KPIs
- relocation of services to a new offshore location (build-operate) is then transferred to an independent vendor that the company contracts.
42
What is the joint ventures as an outsourcing option?
- business engages an outsourcing services provider but the provider is also free to outsource to other businesses in the same industry.
42
Case study for outsourcing?
APPLE
- company sources components and materials from various countries around the world
- strategic approach to global sourcing
- allowing it to deliver high-quality products efficiently while maintaining strong profit margins
42
What are the advantages of outsourcing?
1. Simplification
2. Efficiency and cost savings
3. Increased process capability
4. Increased accountability
5. Access to skills/resources lacking in business
6. Capacity to focus on core business or key competencies
7. Strategic benefits
8. Improvements to in house performance
42
What is technology as an operations strategy?
- Applies to and improves inputs, transformation processes and outputs to makes the managerial and administrative functions more efficient.
- Leading and established
42
What are the disadvantages of outsourcing?
1. Cost vs benefits
2. Communication and language
3. Loss of control standards and information security
4. Hierarchies
5. Organisational change and redesign
6. Loss of corporate memory and vulnerability
7. Information technology
42
What is leading edge technology?
Technology that is the most advanced or innovative at a point in time.
42
What are the benefits of leading edge technology to operations?
- Distinguish their operations processes
- Create products more quickly
- Achieve higher standards
- Less waste
- Operate more effectively
42
How technology can be used in operations management to achieve the strategic role of operations and the performance objectives?
- Helps create competitive advantage
- Differentiate the quality, speed, dependability, customisation and cost of products.
- Minimise long term costs by improving efficiency
42
What is a case study for leading edge technology as an operations strategy?
WOOLWORTHS
Set standard in Australia in integrating leading edge technology into distribution centres
43
What is established technology?
Technology that has been developed and is widely used and accepted without question.
44
What are the benefits of established technology to operations?
- Functionally sound
- Establish basic standards in speed and productivity
45
What are examples of established technologies?
- Barcoding
- Point- of- sale (POS) data for inventory management
- CAD - computer aided design
- CAM - computer integrated manufacturing
- IT - information technologies FLASHCARDS NOT DONE
46
What is inventory/stock?
The quantity of raw materials, work-in-progress and finished goods that a business has on hand at any particular point in time.
- Significantly impacts transformation processes in operations strategies
47
What are the advantages of holding stock?
- Meet consumer demand with available stock to prevent buying from competitor (risk reduction)
- Offer alternatives if something runs out - still income not lost sales
- Reduce lead times between order and delivery
- Generate immediate revenue
- Stock can be moved to distribution centres - ensure orders are transported
- Reserve stock business can promote products in new markets
- Old stock sold at reduced prices - encourage cash flow - promotional tool
- Stock = current asset (if managed effectively can reflect sound financial management)
- Generate economies of scale -buy in bulk - reduced costs - discounted inputs
48
What are the disadvantages of holding stock?
- Expenses:
- Storage charges
- Spoilage
- Insurance
- Theft
- Handling expenses
- Invested capital, labour and energy into stock - cannot be reused
- Cost of obsolescence,- if stock unsold for long time
49
how does yakult manage their inventory/stock levels effectively?
CASE STUDY: YAKULT
- Can alter the amount of inventory they product depending on the demand levels
Make less when less demand
50
What are the main inventory valuation techniques?
1. LIFO (last in first out)
2. FIFO (first-in-first-out)
3. JIT (just in time)
51
what is JIT
JUST IN TIME
* order as required
* exact amount of material arrive as needed
* distribution centres
* required efficient supplier and supply chain
* responsive/flexible operations system required
52
what are the advantages of JIT?
- Retailers can display wider range of products as they need to store less
- Can order in resppnse to consumer demand
- Saves money - no expensive holding/insurance costs
- Minimises shrinkage costs and obsolence losses
53
what are the disadvantages of JIT?
- If supplier is delayed - whole production process is delayed
- Sudden increase in demand cannot be met
Ordering in smaller more frequent amount = increased expenses
54
what is a case study for JIT
Toyota orders parts as they are needed, avoiding spending money on storing excess inventory.
55
what is LIFO
LAST IN FIRST OUT
- assumes that the last goods purchased are also the first goods sold and therefore the cost of each unit sold is the last cost recorded.
- Most recent stock used first
- non-perishables
56
what are the advantages of LIFO
- Tax benefits - higher COGS = lower taxable income
- Mitigate rising inventory costs
57
what are the disadvantages of LIFO
- Lower profits due to higher COGS
- Outdated prices of remaining inventory
- Not accepted under international accounting rules
58
what is a case study for LIFO
Apple tries to sell new iPhone over the old ones.
59
what is FIFO
FIRST IN FIRST OUT
- assumes that the first goods purchased are also the first goods sold and therefore the cost of each unit sold is the first cost recorded.
- Oldest stock is used first
- perishable items
60
what are the advantages of FIFO
- Remaining inventory valued at current prices - more accurate
- Lower COGS during inflation = higher profits
- Globally accepted
61
what are the disadvantages of FIFO
- Higher taxes because higher profits
- Older inventory may become outdated
62
case study for FIFO
Coles sells the milk stock that came in first sooner.
63
What is quality management?
Refers to processes that a business undertakes to ensure consistency.
64
What are the three main quality management?
- Quality control - inspection, measurement and intervention
- Quality assurance - application of international quality standards
- Quality improvement - total quality management and continuous improve
65
How do quality management strategies assist a business in achieving the strategic role of operations?
- Minimise the chance of defects or errors - reduce costs - cost leadership
- Meeting standards - differentiate themselves from competitors
- Meeting and exceeding customer expectations
66
What is quality control?
Quality control reduces problems and defects in the product by using inspection at various points in production process.
- INSPECTION, MEASUREMENT AND INTERVENTION
- Business needs to have defined quality standards and parameters
- Standards broadly applied across the range of products and processes
- Labour must be appropriately trained
67
What is the process of quality of control?
1. Business defines quality standards + parameters then applies them across products and processes.
2. Tests are designed to assess the quality of products and processes
3. Failure to meet targets would need to be assessed
68
What is a case study for quality control?
- Yakult Australia Pty Ltd
- Bottles are randomly inspected for incorrect printing and lid seals
- Raw ingredient samples quality tested
- 100 tests for every batch
69
What is quality assurance?
Quality assurance involves the use of a system to ensure that set standards are achieved in production.
## Footnote
Application of international quality standards.
70
What are key features of quality assurance?
Key features include:
- Proactive approach
- Emphasises quality in design
- Measure against industry standards
- Whole business contributes to high quality
- Using procedures to prevent defects or errors.
71
What aspects of quality are important to quality assurance?
Important aspects include:
- 'Fitness for purpose' - how well product performs intended function.
- Desire to achieve 'right first time' - product doesn't need to be reworked.
72
How has quality assurance responded to globalisation?
Quality assurance has responded by:
- Responding to international emphasis on quality
- Establishing universal standards
- Example: ISO 9001 - international standard
- ISO - International Organisation for Standardisation.
73
What is a case study for quality assurance?
A case study is Yakult, which:
- Adheres to food manufacturing, handling and sanitation standards
- Utilises HACCP principles - internationally recognised food regulations
- Follows personnel and factory standards
- Provides food hygiene training for staff.
74
What is quality improvement?
Emphasises continuous improvement and total quality management.
75
What is continuous improvement?
Ongoing commitment to improving a business' goods and services.
## Footnote
Over time processes will be made more efficient and effective.
76
What are key characteristics to continuous improvement?
1. Staff are integral - all staff encouraged to demonstrate initiative.
2. All processes are looked to be enhanced.
77
What is total quality management?
Relies on continuous improvement in all functional areas.
Controls to ensure poor quality goods don’t reach consumers.
Each person has responsibility and is dedicated to identify quality issues and to find ways to remediate them.
78
What are mechanisms of quality improvement which enable it to be effective?
1. Quality circles - continuous small improvements in products.
2. Benchmarking - identify critical processes needing improvement, study competitors to improve own methods.
3. Key performance indicators - measure improvement in quality.
79
What is a case study for quality improvement?
Investment in research and development to enable them to continuously improve their products.
Partake in **KAIZEN CIRCLES** - brainstorming sessions where employees from different departments discuss problems and suggest solutions.
80
What is change?
Change is about the business responding to internal and external business environment.
## Footnote
How the business deals with the change determines the result.
81
What are the drivers of change in business environment?
Drivers of change include internal and external influences, legislation, economic conditions, social expectations, and technology.
82
What does change require from the business?
Change requires businesses to be dynamic, alter operations, facilitate learning of new skills, and can affect job losses and prospects.
83
How can resistance to change be classified?
Resistance to change can be classified into financial costs and emotional/psychological factors.
## Footnote
Financial costs include purchasing new equipment, redundancy payments, retraining, and reorganizing plant layout.
84
Why is it important to positively/effectively manage change?
Effective change management is important for staff wellbeing, customer satisfaction, maintaining competitive advantage, retaining staff, and reducing long-term costs.
85
why is purchasing new equipment a financial cost which may cause resistance to change?
Expensive investments in machinery - capital cost
Addtional costs will impact the profitability of the business
86
advantages of purchasing new equipment (overcoming the cost/change)
- Improved processing flexiblity
- Improved processing speeds
- Shorter lead times
- Higher quality
- Less wastage
Increase profit by reducing costs through increased efficiency
87
example of business overcoming purchasing new equipment as a financial cost
YAKULT - robotic arm
- Hired change agent
To install and train staff how to use new technology
88
why is retraining a financial cost which may cause resistance to change?
- Retraining costs arise due to reorganising the business' internal hierarchy
- Acquistion of new technology or software - means staff has to learn to be able to succeed
89
advantages of retraining (overcoming the cost/change)
- Staff develop greater skillset
- More beneficial to business - perform better bc more skilled
- More adaptable employees
- CSR
90
example of business overcoming retraining as a financial cost
Yakult retrained their staff that became redundant so they can continue working.
91
why is redundancy payments a financial cost which may cause resistance to change?
Redundancy - loss of work due to job skills that are no longer required or relevant to workplace, people lose their jobs.
- Financial cost because business must legally give workers redundancy payout.
- Level of pay depends on length of employment and industry
92
advantages of redundancy payments (overcoming the cost/change)
Workplace may become overall more efficient with increased technology use.
93
example of business overcoming redundancy payments as a financial cost
Yakult retrained their staff that became redundant so they can continue working.
NAB had loss of 6000 jobs due to new technology and digital transactions usage, replacing their jobs.
Holden stopped manufacturing cars, 3000 people made redudant. $85000 for non-trade production workers, $105 000 for highly skilled workers.
94
why is reorganising plant layout a financial cost which may cause resistance to change?
Reorgansing plant layout - cost may arise becuase of major changes such as the complete re-engineering of systems.
Plant - facilites such as factory or office in which a product is made.
Costs associated with rearranging machinery in factory:
- Transportation costs
- Costs of bringing power to new plant and equipment
- Downtime when moving from old to new equipment
- Loss of productivity while staff adapt to new layout
95
advantages of reoorgansing plant layout (overcoming the cost/change)
- Improve efficiency depending on the nature of the business
- Enable growth if new machinery etc has been implemented
96
example of business overcoming reorgansing plant layout as a financial cost
McDonalds have to reorganise plant layout to make space for new automatic drink dispenser facilities.
97
what is inertia as emotional resistance to change
Inertia - describes a pyschological resistance to change.
- Resist change when they have a feeling of uncertainty, fear of unknown.
- People feel job is threatened
- Find technology and equipment intimidating
98
example of busines ocercoming inertia during change
Telstra
- Transitions to a digital business model
- Staff were reluctant to adopt new digital tools or new roles
Provided training to ease transtion
99
what are some strategies to overcome resistance to change
1. Change agent
- assist with communication, logisitics, support, retraining, experts in change mangement
- Specialist to facilitate and support change
- Effective in reducing resistance
2. Creating culture of change
- motivating and rewarding
- Normalised change in business
- Culture where change is accepted and expected
3. Constant communication and involvement of staff
- flattening organisational structure - reduce hierarchy
- Communicate the reaons, justification and benefits of the change to the staff
- Why it needs to happen and how it will happen
- Makes staff feel valued and heard by involving them in change
4. Training and development of staff
- Training staff on how the change is going to work
- Providing them with skills needed to adapt to the change
5. Unfreeze/change/re-refreeze
- Pause, make the big change and then stark working again
- Make holistic change quickly
100
What are global factors?
They present opportunities when assessing operations strategies in managing a business due to the impact of globalisation on operations.
101
What are the global factors?
- Global sourcing
- Economies of scale
- Research and development
- Scanning and learning
102
What is global sourcing, specifically in operations?
- Businesses purchasing supplies or services without being constrained by location.
- Involves undertaking any business decisions leading to cost advantages - cost leadership.
- Obtain benefits from outsourcing.
- Sourcing of any business operations which give cost advantages.
103
What does global sourcing ensure?
- That the outsourcing decision is exposed to the global market.
- So decision is based on cost, efficiency, productivity, technical ability and ability to operate for more hours in day.
104
What is economies of scale?
- Cost advantages gained by increasing size or scale of production.
- Increase in scale of production = decrease in cost per unit = increase in profitability.
105
How does economies of scale become a global factor?
- When businesses respond to increase in demand and volume by making higher product volumes.
- Sourcing globally to meet global markets.
106
How is scanning and learning as a global factor important?
- Business benefit from scanning global environment.
- Effective global operations strategy.
- Identify and learn from best practice of other businesses.
107
List the features of scanning and learning which prove to be opportunities as global factors.
- Management journals.
- Industry and business associations.
- Conferences.
- Opportunities for businesspeople to learn from each other.
- Diversity of experience = learn how to develop flexibility and insight.
108
What is research and development?
- Helps businesses create leading edge technologies, create innovative products and solutions.
- Understanding consumer wants.
- Create products that better meet needs.
109
What is a case study for new service design and development?
Starbucks
- Mobile order and pay service
- Because lines were getting too long - long lead times
- Developed an app to order ahead of time and customise experience
110
What is a case study for each global factor?
1. Global sourcing - apple
2. Economies of scale - walmart
3. Scanning and learning - amazon analyses worldwide market trends, customer behaviors, and innovations to develop new products (amazon prime) through global insights.
4. Research and development - apple invests in worldwide research centres in order to develop innovative products.
