Influences

Question 1

What impact does the business environment have on operations management?

Answer 1

Cause the business to go through change

Impact operations process

Question 2

Define globalisation

Answer 2

Globalisation refers to the ability of nations to trade with each other, and for a company to operate in a global market.

Question 3

What is the result of globalisation

Answer 3

• opens up new markets
• allows businesses to utilise a global supply chain
• increased integration between national economies
• high degree of transfer of capital (facilities and machinery), labour, intellectual capital and ideas, financial resources and technology.

Question 4

Define supply chain

Answer 4

The range of suppliers a business has and the nature of the relationship with those suppliers.

Question 5

Where does a business select a supply chain from?

Answer 5

Global web

Question 6

Define global web

Answer 6

The network of suppliers a business has, chosen on the basis of cost, lowest risk, quality or timing of supplies.

Question 7

Define exchange rate

Answer 7

The value of one currency for the purpose of conversion to another.

Question 8

Define trade agreements

Answer 8

When two or more countries agree on terms that help them trade with each other and remove barriers, increasing global markets.

Question 9

What is the positive impact of globalisation on businesses

Answer 9

• access to more suppliers/inputs
• access to international markets which increases potential customers
• access to cheaper labour

Question 10

What s the negative impact of globalisation on businesses

Answer 10

• increased competition from cheaper imported goods
• access to cheaper inputs can reduce the quality of a business’s products
• if a business is found to be exploiting a developing country then this can damage their reputation.

Question 11

How does Zara take advantage of financial savings from globalisation?

Answer 11

By setting up its manufacturing warehouses in low cost labour countries.

Question 12

What is an example of a global trade agreement that Zara is apart of

Answer 12

Better Cotton Initiative

Question 13

What is the Better Cotton Initiative

Answer 13

• is a not-for-profit organisation

- makes global cotton production better for the people who produce it and the environment

Question 14

How does the Better Cotton Initiative affect Zara?

Answer 14

• grow their businesses.
• have stable, long-term sources of sustainable cotton.
• better for consumers as they can glance at the logo and know their clothes.

Question 15

What is technology?

Answer 15

Technology is the design, construction and or application of devices, methods and machinery upon the operations process.

Question 16

Advantages of technology?

Answer 16

• improved efficiency
• development of new methods of production and equipment
• business can perform functions more quickly reduced waste
• lower costs of production

Question 17

What does technology assist with at an administration level?

Answer 17

• organising
• planning
• decision making
• control of operations processes.

Question 18

What is technology used in at a processing level?

Answer 18

• manufacturing
• distribution
• quality management
• supply chain management

Question 19

How does Zara use inventory management?

Answer 19

Uses Just - in - Time which allows Zara to manage thousands of fabrics.

Question 20

What is the benefit of Just - in - Time allowing Zara to manage thousands of fabrics?

Answer 20

It gives Zara the capability to design clothes with available fabrics, rather than having to order and wait for the material to come in.

Question 21

How does Zara use distribution management?

Answer 21

Reading devices sort out and distribute more than 60000 items of clothing an hour.

Question 22

How does Zara know consumer needs?

Answer 22

Zara has a database that reports new trends and daily sale numbers.