Operations Management Within A Business Environment

Question 1

What are business operations?

Answer 1

The activities that a business does in order to grow in value and generate more revenue.

Question 2

Examples of operations management objectives

Answer 2

Cost and volume targets
Quality targets
Efficiency and flexibility targets
Environmental targets
Productivity targets

Question 3

Factors impacting operations objectives

Answer 3

Size and legal status of the business
Other objectives
State of the economy
Government
MPC
Legislation

Question 4

Why is it important to set SMART objectives?

Answer 4

To focus the business’ efforts and increase the chance of achieving their objectives.

Question 5

Added value

Answer 5

The process of making a product/service worth more than the cost of making it.
(The difference between the price of the good and the cost of the inputs involved in making it)

Question 6

Ways of adding value

Answer 6

Building a brand
Delivering excellent service
Product features and benefits
Offering convenience

Question 7

Benefits of adding value

Answer 7

Charging a higher price
Creating a point of difference from the competition
Protection from competitors trying to steal customers by charging lower prices
Focusing a business more closely on its target market segment