Essay definitions- influences

Question 1

Globalisation

influence

Answer 1

process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange.
Benefits: access to
* low cost suppliers
* higher quality inputs
* more inputs

influence

Question 2

cost-based competition

influence

Answer 2

derived from determining breakeven point and then applying strategies to create cost advantages over competitors. In highly competitive markets, cost-based competition can shape the operations function in competing businesses.
Advantages: encourages
* improvement
* cost minimisation
* productivity

Question 3

quality expectations

influence

Answer 3

Are the standards expected surrounding quality; the ability of a product to meet customer expectations. This may include:
* fitness for purpose
* quality of design
* durability

Question 4

technology

influence

Answer 4

application of innovations in design, construction, production methods, and equipment for practical purposes.
Advantages:
* cost reduction- increased productivity, EOS
* productive improvements- leader, increase quality

Question 5

Government policy

influence

Answer 5

methods used by government that encourage/incentivise businesses to act/behave in ways to achieve desired outcomes.
Advantages:
* business can get ahead of policy- CSR, consumer wants
* find new efficient ways to operate business

Question 6

legal regulation

influence

Answer 6

All businesses must comply with laws and regulations. These often stem from Govt polices which set down a broad direction/approach for which behaviours they want to be legislated.
Advantages:
* avoid additional costs and expenses
* minimise disruption
* improved quality