Operations; Influences Flashcards
define globalisation
removal of barriers of trade between nations
leads to flow of capital, labour and goods
how is globalisation a threat to businesses
it is a threat as other businesses may effectively apple COST LEADERSHIP to undercut the market and dominate it
eg. outsourcing to China for cheap labour
why are businesses orientating their practices to the ‘global consumer’
as globalisation continues, consumers appear from all over the world, expecting a standardised product and that has the saem product design and quality
what are the 4 key aspects of supply chain management
supply chain
sourcing
global web
outsourcing
what is a supply chain and what does it need to be in order for a business to practice efficiently
it is the range of suppliers a business has,
needs to be reliable and predictable in order for a business to keep operations running smoothly eg. no delays, mishaps with quality
what is sourcing
how a business acquires its inputs
what is the global web and how is it chosen
it is the network of global suppliers has chosen
based off:
lowest overall cost
lowest risk
high certainty in quality and timing of supplies
what is outsourcing and why is it usually chosen to do
when a business buys inputs rather than producing it, often to achieve cost leadership
why is supply chain management (SCM) important
allows manufacturers to make as many products as necessay.
what is technology in a business (products and machinery)
the design, construction and application of devices
machinery in the operations process
what technologies are used in the administration of operations
gantt charts, critical path analysis (planning)
computers, telephone (office)
graphics, spreadsheets (software)
what technologies are used in the operations processes
assembly lines (manufacturing)
robots (cutting clothes, moving product) e.g. in amazon they use robots in warehouses to move product rather than humans
advantages of technology
saving time/faster production
reducing energy/materials wasted
achieving a competitive advantage
disadvantages of technology
expensive initially (purchase of machinery)
may create redundancies (CSR conflicts)
may use more energy (CSR)
what is quality in a business
how well designed, made and functinal a good is
degree of excellence of a product