operations influences HSC questions

Question 1

Multiple-choice question

The term compliance costs refers to expenses associated with meeting (1 mark)
(A) competitor prices.
(B) legal requirements.
(C) consumer demands.
(D) supplier constraints.

Source: Q13, 2015 HSC paper

Answer 1

Answer: B

Question 2

Short-answer question

North Coast Manufacturing makes customised furniture for its clients.

How could technology influence the transformation process at North Coast Manufacturing? (2 marks)

Source: Q23a, 2015 HSC paper

Answer 2

Sample answer: New technology could be introduced at North Coast Manufacturing to improve production
efficiency and quality. This could lead to improved profits.

Question 3

Multiple-choice question

Which of the following is an example of legal compliance for a sports store? (1 mark)
(A) Paying taxes on time
(B) Offsetting carbon emissions
(C) Induction of new employees
(D) Paying dividends to shareholders 

Source: Q17, 2014 HSC paper

Answer 3

Answer: A

Question 4

Short-answer question

How might a business benefit when an operations manager acts in an ethically and socially responsible manner? Support your answer with relevant examples. (4 marks)

Source: Q21a, 2012 HSC paper

Answer 4

Sample answer: Bad publicity from a lack of respect for human rights or from low environmental standards can result in loss of sales and profits for a business. Acting in an ethical and socially
responsible manner will avoid this risk. A business that conducts its operations in an ethically responsible manner may also have a more motivated and productive workforce who will contribute to higher profits, as employee trust and commitment to the business is higher.

Students may take an alternative approach that, if correct, should be rewarded.

Question 5

Short-answer question

Why might a business be resistant to meeting its corporate social responsibilities? (4 marks)

Source: Q21b, 2012 HSC paper

Answer 5

Answer: Meeting their corporate social responsibilities may cost a business money, especially in the short run. For example, reducing pollution and treating employees more ethically may be more expensive than polluting air and water and exploiting workers. A business may decide not to pay these expenses in the hope of achieving a higher profit.

Students may take an alternative approach that, if correct, should be rewarded.

Answers could include:
Financial costs, inertia of management

Question 6

Extended-response

Assess strategies that management may use to respond to influences on operations. (20 marks)

Source: Q27, 2013 HSC paper

Answer 6

Sample answer:

Operations strategies:
• Performance objectives – quality, speed, dependability, flexibility, customisation, cost
• New product or service design and development
• Supply chain management – logistics, e-commerce, global sourcing
• Outsourcing – advantages and disadvantages
• Technology – leading edge, established
• Inventory management – advantages and disadvantages of holding stock, LIFO, FIFO, JIT
• Quality management – control, assurance, improvement
• Overcoming resistance to change – financial costs, purchasing new equipment, redundancy
payments, retraining, reorganising plant layout, inertia
• Global factors – global sourcing, economies of scale. scanning and learning, research and
development

Influences:
• Globalisation, technology, quality expectations, cost-based competition, government
policies, legal regulation, environmental sustainability
• Corporate social responsibility

[Students may take an alternative approach, which, if correct, should be rewarded.]