3.7.1- internal+external on operational objectives

Question 1

the 5 internal influences on operational objectives

Answer 1

1. corporate objectives
2. finance
3. human resources
4. availability of resources
5. nature of the product

Question 2

what is a corporate objectives

Answer 2

objectives for the WHOLE business

Question 3

how does finance affect operational objectives

Answer 3

availability of finance to implement decisions

Question 4

how does human resources affect operational objectives

Answer 4

the training, motivation and skills will have an impact

Question 5

how does availability of resources affect operational objectives

Answer 5

well resourced with equipment and well known brands it is easier to produce high quality products

Question 6

how does the nature of the product affect operational objectives

Answer 6

some products suit mass production, other require individual methods of production, the impact of the product on the environment

Question 7

what are the 8 examples of external influences that affect operational objectives

Answer 7

1. market factors
2. competitors actions and performance
3. technological change
4. economic factors
5. political factors
6. legal factors
7. environmental factors
8. suppliers

Question 7

market factors means

Answer 7

if the demand changes, the business may need to modify its production levels, or if sales are falling introduce a new product.

Question 8

if a competitors performance is good the business may need to…

Answer 8

change something in response

Question 8

what can technology affect

Answer 8

businesses:
costs
quality
levels of productivity
decisions

Question 9

interest rates increasing causes…

Answer 9

more customers saving and not spending
business reduce costs as they don’t want to go for new loans as they will have to pay more from the interest

Question 10

interest rates decreasing causes…

Answer 10

customers spend more due to return on saving being low, business will try for more loans as the interest rates are low causing costs to be reduced.

Question 11

if businesses reduce costs against politicians wishes it causes…

Answer 11

conflict

Question 12

health and safety is an example of

Answer 12

an operations functions which is controlled by legislations

Question 13

environmental legislation and pressures which means

Answer 13

firms are much more tightly controlled in terms of the products they make and supplies they use.