Role Flashcards
What is the Role of Operations?
Operations refers to the activities of business that acquire and combine inputs. Changing them into finished goods + services
–> Value Adding Process
Outline the Strategic Role of Operations?
Contibute to the strategic direction of the bus. by maximising profits / revenue through the value adding process aswell as minimising costs to increase efficiency. –> Productive efficiency
Describe the use of Cost Leadership
The Business aims to be the lowest cost of operations compared to its competitors. –> able to offer greater value via lower prices
Bus. achieves cost leadership by minimising expenses, using minimal inputs to gain maximum outputs or bulk buying for cost savings.
–> Small profit margin on products, however revenue is generated through high volume of sales.
–> Effects quality of products as cheaper materials are sourced.
Interdependence: Finance
Finance provides budgets and funds to be able to purchase materials -> also monitors cost centres to identify areas of high expenditures so operations can use strategies to minimise wastage
Operations provides products which can be sold for a return. Also minimises wastage to increase efficiency and maximise revenue
Interdependence: Marketing
Marketing conducts market research to identify target market needs + wants. They also are concerned with distributing the products using distribution chains
Operations create a product that can be promoted and sold. Also provide prototypes so marketing can gain feedback on the product.
Interdependence: Human Resources
HR provides operations with highly skilled and motivated staff that are suited for the job
Operations provides HR with the job design and tells HR what tasks needs to be fulfilled and specifications needed for the job i.e what skills are needed.
List the different Business Industries
- Primary
- Secondary
- Tertiarty ( Quaternary, Quinary )
Describe the Primary Industry
- Acquisition of Raw Materials
e. g. Agriculture, Mining, Fishing
Describe the Secondary Industry
- The use of RAW MATERIALS, Labour + capital equipment to TRANSFORM into Finished products
e. g. Construction, Engineering, Factories
Describe the Tertiary Industry
- Primary function is to provide a service –> Service sector
E.g. Doctors, Hair Dressers
Describe the Quaternary Industry
- Teriary Sector that provide information services
e. g. Banks, Telstra Tech Support
Describe the Quinary Industry
- Teriary Sector bus. that provide services traditionally performed in the home.
e. g. Cleaning services, Child care centres, Car wash.
