Influences Flashcards
List the influences on Operations
1) Globalisation
2) Technology
3) Quality Expectations
4) Cost-Based competition
5) Government Policies
6) Legal Regulation
7) Environmental Sustainability
8) Coperate Social Responsibility (CSR)
What are the influences of Globalisation?
- Removal of barriers between nations (Countries more interconnected)
- Opportunity for bus. to expand internationally
- Facilitates greater trade, migration + financial flow
-GLOBAL SUPPLY CHAIN –> Allow’s bus. to reduce costs + improve quality of their inputs
What are the influences of Technology?
- Assists with organisation, planning + communications
- Technologies used in manufacturing, distribution, logistics, Quality management + inventory management (e.g. CAD, CAM, CIM)
- High Initial Costs (s/t profitability goals conflicted)
- Increase efficiency + productivity in L/t (Comp. Adv)
What are the considerations of Introducing New Technology
- Avaliable Finance (Lease?, Loan?)
- Time needed to introduce tech (Training / Install time)
- Technology used by competitors
What are some Customer Quality Expectations?
- Expectations about: Durability, Reliability, Fitness for purpose, Quality
- Quality of Inputs determine these factors
-For services, level lof professionalism / Customisation to suit neeeds
What is Cost-Based Competition?
When Customers form opinion based on price of product.
How can Cost-Based competition be achieved?
Through the Cost-leadership strategy –> Offer the best price for customers and provide best quality
How do Government Policies Influence bus.
- Encourage bus operations to be more innovative + competitive
by: Governments engaging in Free trade Agreements
- Reducing protection for domestic bus. from international goods entering Aus. markets
- -> Bus. must compete with foreign products.
e.g. by Reducing tarrifs - Reducing tax paid on imports or exports
Considerations: Taxation, WHS, Environmental standards
How do Legal Regulations impact businesses?
Compliance Costs –> Expenditure of time or money in conforming with legal regulations
- Failure to satisfy these regulations get large fines aswell as reputational damage.
e. g.
- Work, Health + Safety Act (2011) - Ensure provisions of safe work, systems + training for all employees
How does Environmental Sustainability impact businesses?
Ecological Sustainability:
- Use of production methods that allow use of resources today w/o compromosing future generations ability to meet needs
Precautionary Principle:
- Where environmental impacts aren’t certain, bus. should undertake actions that will least impact environment.
Reducing Carbon Footprint: (CO2 emissions)
- Social shift towards environmentally friendly practices is an opportunity for bus.
What is CSR and how does it Impact businesses?
-Duty of care a bus. has towards it stakeholders.
Defined by World Business Council for Sustainable Development as:
“The commitment of businesses to contribute to sustainable economic development, working with employees, their families, local community and society at large to improve quality of their life”
CSR is an Extesion of the TRIPPLE BOTTOM LINE
- Economic, Environmental, Social –> Bus. that consider all 3 are more CSR
CSR Issues include:
- Equality and Justice
- Human Rights
- Labour Standards
What is the Difference between Legal Compliance and Ethics?
Ethics:
- Making decisions that are morally correct
- Meet standards of behaviour that society expects
- Code of Conduct - to show commitment to Ethics
Legal Compliance:
- Procedures implemented to make certain that a company follows rules, regulations and laws established by WHS.
What are Some Ethical Responsibilities when outsourcing?
- Bus. participate in activities that bring highest possible standards, sustainability and socially aware bus. practices.
Ethical Responsibilities:
- Moral Obligation to protect jobs within the country - Outsourcing isn’t always global
- Not exploiting overseas manufacturing for cheap labour - Sweat shops / Minimal standards.
