Operations Management

Question 1

Adding value

Answer 1

Build a brand 
Deliver an excellent service 
Product features and benefits 
Offering convenience 
Lowering costs

Question 2

Benefits of adding value

Answer 2

Charging a higher price
Creating a point of difference
Protection from competition taking market share by lowering prices
Focussing a business more on its target market

Question 3

Invention

Answer 3

Action of inventing a new progress or device

Question 4

Innovation

Answer 4

putting a new idea or approach into action

E.g

improving or replacing business processes (inc productivity/efficiency or extend the range of quality offered)
Developing entirely new improved products ( meet rapidly changing customer needs)
Adding value to existing products ( gain POD of competition)

Question 5

Market orientated

Answer 5

A business philosophy that focuses on justifying customer needs or wants and meeting them.

Question 6

Product orientated

Answer 6

The company’s focus is solely on the products alone.

Question 7

Research and Development (R&D)

Answer 7

Creation of new and improved products to meet the needs of customers by

• lunching new ones
• Improving old ones
• Alternative materials
• waste reduction

Problems:

• cost
• risk putting £ into products that may not work
• limited protection of ideas
• changes in tech
• changes in customer needs
• Unemployment

Factors influencing it:

• level of competition
• product
• external environment
• specific issues

Product launch:

• market research
• product development and testing
• distribution of product to outlets
• promo launch

Question 8

Morphological studies

Answer 8

Can be used so that ideas can quickly be developed with a wide range of alternatives when designers are developing new product.