Business Studies Syllabus Revision Flashcards
Discuss the balance between cost and quality in operations strategy.
Reducing costs may lead to reduced quality and vice versa.
About finding the balance in cost and quality, implementing cost strategies which won’t affect or improve quality.
Examine the impact of globalisation on operations strategy.
Includes:
Global Sourcing - includes access to cheaper and more advanced resources but also having to relocate operations processes.
Economies of Scale
Scanning and Learning - Influenced by kaizen, continuous improvement.
Research and Development
Identify the breadth of government policies that affect operations management.
Includes:
Labour Law
Environmental and Public Health
Business Licensing
Taxation
Trade Practices
Migration, Offshore Labour
Intellectual Property
Financial Accounting
Corporations Law
Human Rights
Explain why corporate social responsibility is a key concern in operations management.
CSR places value on financial
returns as well as social responsibility and environmental sustainability. Can be attractive to consumers, vice versa.
Explain why goods and/or services are central to both marketing and operations.
The marketing concept where all business functions are involved to satisfy customer needs.
If the success of the marketing plan means having a good or service ready by a certain date, the operations plan will need to be in place to make sure that happens.
Examine why ethical behaviour and government regulation are important in marketing.
Ethical and government legislation discourages unethical marketing practices.
Can lead to significant marketing and business opportunities.
Can attract new customers and keep loyal ones.
Positive effect on employment relationships.
Attract more investors.
Improve reputation.
Assess why a mix of promotional strategies is important in the marketing of goods
and services.
Since each element of the promotion mix has different benefits,
it’s important for businesses to use a mix of promotional strategies
in order to cater to the needs of everyone in their target market.
Explain potential conflicts between short-term and long-term financial objectives.
Investing in long-term e.g. growth may lead to diminished short-term profits e.g. research and development.
Analyse the influence of government on financial management.
ASIC enforces laws in order to protect consumers, making business act ethically.
Company taxation from 25 to 30% of net profits affects dividends and wage amounts.
Identify the limitations of financial reporting.
Normalised Earnings
Capitalising Expenses
Valuing Assets
Timing Issues
Debt Repayments
Notes to Financial Statements
Compare the risks involved in domestic and global financial transactions.
Exchange rate fluctuations, minimised with hedging and derivatives with:
Forward Exchange Contract
Options Contract
Swap Contract
Interest Rates have major impacts in profitability, makes businesses consider interest rates they use.
Methods of international payment risky since importer may not pay or exporter may not ship the good. Mitigated with:
Payment in Advance
Letter of Credit
Bill of Exchange
Clean Payment
Analyse the influence of the global market on financial management.
Global Economic outlook affects demand and interest rates, impacting financial decisions of businesses.
Availability of funds from international lenders.
Interest rates movements increase risk, cheaper interest rates encourage businesses to borrow overseas.
Discuss the influence of government on the process of determining employment contract.
Common law set by courts provides set of rights and obligations for ees and ers.
Ten National Employment Standards and minimum wage rates set minimum standards for employees.
Awards are legally enforceable terms and conditions specific to a business or industry.
Enterprise agreements must past a BOOT compared to a modern award.
Explain how businesses exhibit corporate social responsibility in the management of human resources.
Presenting a safe and fair working condition which motivates and retains staff, failure may lead to increase in turnover and possible legal action.
Analyse the causes of two workplace disputes and the strategies used to resolve them.
Employment and remuneration causes of workplace dispute. Can be resolved through negotiation (parties resolve it themselves), mediation (independent mediator assists with decision) or arbitration (arbitrator provides legally binding option to resolve dispute).
