Role of Operation Management

Question 1

Strategic Role of Operation Management

Answer 1

Carry out transformation processes in order to help the business achieve profit maximisation

Question 2

Cost Leadership

Answer 2

Aims to have the lowest costs or to be the most price-competitive in the market

Question 3

Economies of Scale

Answer 3

Cost advantages that can be created as a result of an increase in scale of business operations

Question 4

Goods/Services Differentiation

Answer 4

The strategy of competing in markets based on product differentiation

Question 5

Examples of Differentiation (Goods)

Answer 5

• Product Features
• Product Quality
• Add-on / non-standard features

Question 6

Examples of Differentiation (Services)

Answer 6

• Amount of time spent on service
• Level of Expertise
• Qualifications and experience
• Quality of materials/technology

Question 7

Standardised Goods/Services

Answer 7

Mass-produced and do not differentiate from each other, whilst also having a production focus

Question 8

Production Focus

Answer 8

Goods built to a predetermined standard (e.g: toilet paper/gym classes)

Question 9

Customised Goods/Service

Answer 9

Produced to the personal specifications of the customer, usually made by hand, whilst also having a market focus

Question 10

Market Focus

Answer 10

Built to a standard specified by the customer (e.g: wedding dresses/personal trainers)

Question 11

Intermediate Goods

Answer 11

Goods that may be produced more than once (e.g: tree > paper > book)