Decision Making To Improve Operational Performance Flashcards
What are the four main departments of a business
The four main departments of businesses are marketing, operations, human resources and finance
Why does each department have its own objective
To support the business’s overall objectives
Why is it important that objectives of each department are aligned to the overall business
If they are not, individual departments may not be contributing to the success of the overall business
What would a cost objective involve
Cost objectives can be focussed on reducing or maintaining costs
What is an example of cost objective
a value retailer such as Poundland may try to reduce the variable costs of its products by reducing the amount of packaging used
What is an example of quality objective
Rolex prides itself on the quality of its product
What does dependability objective focus on
If a business is dependable, customers trust the business as they value reliability and this allows the business to attract customers and increase its selling prices
What is an example of a dependability objective
if a retailer is running low on stock, they may pay a manufacturer to distribute a product directly to the customer so that their supply remains stable and customer needs are met
What is an example of environmental objective
Amazon has created a piece of software which determines the most appropriate size box for packaging to reduce waste and their impact on the environment
When does added value occur
Added value occurs when businesses convert raw materials into a finished product and in doing so create a product which can be sold at a greater price than the cost of the individual components or materials used to make the product
What is an example added value objective
the actual components and materials used to create an Apple iPhone are worth much less than the purchase price of the product, as value is added because of Apple’s reputation as a manufacturer of smart phones
What can influences affecting a businesses choice of operational objectives be
Influences affecting a business’s choice of operational objectives can be internal or external
What will the objectives of other businesses functions influence
The objectives of the three other business functions will influence the choice of operational objectives
What will the type of product or service influence
The type of product or service produced will influence the choice of operational objectives
What does the availability of internal resources like capital and labour influence
The availability of internal resources such as capital and labour can influence the choice of operational objectives
