2.3-Making operational decisions

Question 1

What is the purpose of business operations?

Answer 1

• To produce goods

- To produce services

Question 2

What are the types of production processes?

Answer 2

• Job (High skilled workforce, little automation, bespoke products)
• Batch (Producing products in batches)
• Flow (Constant flow of products, often standardised products)

Question 3

What are the impacts of technology of production?

Answer 3

• Reduces costs (due to automation)
• Improving quality
• Improving flexibility (the business can change the type and number of products being made at any point)

Question 4

Role of procurement and how businesses have a relationship with a supplier

Answer 4

Procurement: process of a business sourcing and buying its stock
Factors affecting relationship with supplier:
-Quality of materials from supplier
-Delivery (speed/cost/reliability)
-Availability
-Cost
-Trust

Question 5

What is procurement?

Answer 5

-The process of sourcing and buying stock

Question 6

What is logicstics?

Answer 6

-The organisation and transportation of goods

Question 7

What impacts on a business does supply decisions have?

Answer 7

• Costs
• Reputation
• Customer satisfaction

Question 8

What are the two ways of managing stock?

Answer 8

• Bar gate stock graphs (procure stocks when they reach a certain point)
• Just-in-time stock control (procure stock when they need it)

Question 9

What are the ways in which quality can be assured?

Answer 9

• Quality control (checked at the end)

- Quality assurance(checked throughout)

Question 10

What is the importance of quality?

Answer 10

-It gives businesses a competitive advantage as:
Good quality = loyal customers
Good reviews
Helps keeps cost under control as it ensures that the product is well made throughout and therefore won’t need to be scrapped

Question 11

What are examples of customer interest?

Answer 11

• Branding
• Sponsorship
• Advertising
• Sales promotions and special offers

Question 12

What are the stages of the sales process?

Answer 12

• Customer interests
• Speed and efficiency of services
• Customer engagement ( not much when buying a chocolate, but for a house customer engagement is important)
• Post-sales service
• Customer loyalty

Question 13

What are the two types of sales approaches?

Answer 13

• Hard approach (sales employees actively approach and engage customers)
• Soft approach (make themselves available to customers if they are needed)

Question 14

Importance of providing a good customer service

Answer 14

It is important as the business is able to then meet and exceed customer expectations and needs.

Question 15

What does a business use to measure customer service

Answer 15

Quantitative metrics: how many complaints, how many resolved problems, how long to make a sale
Qualitative metrics: uses a system called ‘mystery shopper’ and this shopper will experience a customer and gives feedback on the service they received.