Operations Influences

Question 1

Globalisation

Answer 1

Globalisation is a reference to the removal of barriers of trade between nations.
Globalisation is characterised by an increasing integration between national economies and a high degree of transfer of capital, labour, intellectual capital and ideas, financial resources and technology.

Question 2

Technology

Answer 2

Globalisation is assisted by communication developments such as email, phone, internet (particularly service-basedbusinesses which can operate online). The operation also allows for new production methods.
Examples of operationaltechnology include things like:
Robotics
Computer Aided Design
Information Technology
Sophisticated and Automated Factories

Question 3

Quality Expectations

Answer 3

The expectations that people have of businesses determine the way that products are designed, created and delivered to customers.

Quality expectations people look for are:
Quality of design
Level of customisation
Durability
Fitness for purpose

Question 4

Cost-based competition

Answer 4

This is when a business brings a cost leadership approach to the operations function. That is, they focus on reducing costs to a minimum while maintaining profit margins.
This results in operations management:
Introduced technology
Outsourcing
Strategic alliances
Restructuring
Economies of Scale
Global Sourcing

Question 5

Government Policies

Answer 5

All businesses operating in Australia are subject to policies applied by three levels of government – Local, State and federal. Government policies have a big impact on operations.
For example, their economic policies (monetary, fiscal, etc.) have a direct impact on the level of economic activity and therefore the demand for its products/services

Question 6

Legal Regulation

Answer 6

Legal regulations that businesses must comply with include:
WH&S
Training and Development
Fair Work and Anti-Discrimination
Environmental Protection
Dangerous goods

Question 7

Environmental Sustainability

Answer 7

Business operations should be shaped around practices that consume resources today without compromising access to those resources for future generations.
There are two main aspects to environmental sustainability. These are the sustainable use of renewable resources and a reduction in the use of non-renewable resources.

Question 8

Corporate social responsibility

Answer 8

Corporate social responsibility is an open andaccountable business action based on respect for people, the community and the environment
It involves doing more than just complying with the laws and regulations

Question 9

To show commitment to ethical behaviour businesses will develop, implement and publish a code of conduct which could include:

Answer 9

Supporting charities and local communities
Promoting human and civil rights in Australia and overseas
Consultation of the community prior to a significant change to the business.

Question 10

Being socially responsible involves:

Answer 10

Taking actions or making decisions that are morally and ethically correct and are in the best interests of the community
Issues such as noise levels, waste management and pollution.

Question 11

CASE STUDY

The effects of globalisation for qantas include:

Answer 11

Outsourcing: Maintenance for planes and technology are both outsourced by Qantas to reduce running costs
New Markets: 70% of Qantas operations occur in global market. Global recognition of the Qantas brand name has resulted in increases in share price.
Competition: Qantas struggles to compete on global market, with 70% of the other 40 airlines flying to and from Australia receiving financial subsidies from their government

Question 12

CASE STUDY APPLE

Answer 12

Apple has a standardised product, in large scale production plants, gaining economies of scale to target global consumers.
Most of Apple’s products have been made by other businesses overseas enabling Apple to mass produce innovative products at low costs.

Question 13

CASE STUDY

Dominos

Answer 13

The use of electric bikes and scooters and research into the use of electric delivery cars (being trialed with Renault in the UK)
Reduction of food waste with PULSE food management system reducing overstocking of ingredients
Reduction of sodium and fat in Domino’s foods.
In 2015 they removed all artificial colours, flavours and preservatives.

Question 14

rules and principles a business must follow to be a good corporate citizen

Answer 14

Corporate social responsibility is an open and accountable business action based on respect for people, the community and the environment

It involves doing more than just complying with the laws and regulations

To show commitment to ethical behaviour businesses will develop, implement and publish a code of conduct which could include:

Supporting charities and local communities

Promoting human and civil rights in Australia and overseas

Consultation of the community prior to a significant change to the business.

Being socially responsible involves:

Taking actions or making decisions that are morally and ethically correct and are in the best interests of the community

Issues such as noise levels, waste management and pollution.

Question 15

8 influences

Answer 15

globalisation. technology, quality expectations, cost-based competition, government policies, legal regulations, environmental sustainability