Chapter 2: Influences on operations management Flashcards
Influences: Globalisation
Define Globalisation
The process of increasing interactions between nations.
Influences: Globalisation
Define tariffs
Taxes placed on imported goods, making them more expensive and encouraging consumers to buy goods produced domestically.
Influences: Globalisation
What are quotas?
Limits placed on the amount of a particular product that may be imported from a particular country.
Influences: Globalisation
What are subsidies?
Government grants given to businesses to encourage them to operate in the country and/or to help them compete with overseas businesses.
Influences: Globalisation
What are embargos?
Embargoes ban the import of goods from a particulat country; producers generally require a license to export goods to a certain country, with the number of licenses generally limited, acting as a partial embargo.
Influences: Globalisation
Identify 2 positives of globalisation
- New customers in overseas markets
- Access to new technology
- Access to finance from overseas sources
- The ability to source cheaper inputs overseas (supplies, labour, etc. ) to lower production costs.
Influences: Globalisation
What is a disadvantage of globalisation?
Exposure to competition from overseas businesses.
Influencers: Globalisation
What does the supply chain refer to?
The range of suppliers a business has and the nature of its relationship with those suppliers.
Influences: Technology
Outline three advantages to a business of utilising technology in its operations.
- Efficiency and productivity
- Informed decision making
- Improved customer experience
Increased Efficiency and Productivity: Technology can automate routine tasks, streamline processes, and improve overall efficiency. This can lead to increased productivity, reduced labor costs, and faster turnaround times.
Enhanced Decision Making: Data analytics and business intelligence tools can provide valuable insights into market trends, customer behavior, and operational performance. This information can help businesses make more informed decisions and identify opportunities for growth.
Improved Customer Experience: Technology can enable businesses to provide personalized experiences, enhance customer service, and foster customer loyalty. For example, online chatbots or virtual assistants can provide instant support, while mobile apps can offer convenient access to products and services.
Influences: Technology
Describe threats or challenges posed by technology.
Influencers: Globalisation
What does sourcing refer to?
It is a key aspect of supply chain management, and refers to how a business acquires its inputs.
What does the global web refer to?
The nextwork of locations around the world that the business has chosen for different parts of the production process and suppliers from which inputs are sourced.
Influences: Quality expectations
Define quality
How well goods are designed, made and functional and the degree of competence with which services are organised and delivered.
