strategic role of operations

Question 1

what is the general role of operations management?

Answer 1

1. creation of goods and the provision of services
2. transformation of inputs into outputs or products to be sold

Question 2

What are examples of managing ( 5 points)

Answer 2

• planning activities

-purchasing inputs

-managing inventory (STOCK)

-selecting and implementing best manufacturing process for business

-developing strategies to gain competitive advantage

Question 3

why effective operations management is important?(4)

Answer 3

it’ll add value by:
-increasing productivity
-reducing costs
-minimising waste
-improving quality

Question 4

what is a strategic advantage?

Answer 4

strategic decision is one that affects the business long term.

Question 5

why is a strategic role important? what benefits does it create (5)

Answer 5

-to boosts profits

-improve business’s competitiveness

-improving efficiency

-the timeliness of production

-attributes of the product (cheap or unique)

Question 6

what is the strategic role of operations?

Answer 6

to carry out the processes to help the business achieve its objective/s

Question 7

what is the effect of a strategic role upon a business(1)

Answer 7

it gives them a competitive advantage

Question 8

what are the three general areas of long-term decision making:

Answer 8

-planning production and delivery

-controls to manage quality

-improving operations

Question 9

what are the two types of competitive advantages a business can earn

Answer 9

• cost leadership
  -product differentiation

Question 10

what is cost leadership?

Answer 10

a business that aims to be the lowest cost manufacturer within its industry.

Question 11

what are characteristics of products that are under the cost leadership procedure (4)

Answer 11

-basic
-no frills
-perhaps lower quality
-using low-cost packaging
-most price competitive

Question 12

how low costs are achieved (4)

Answer 12

• economies of scale in production & distribution

-access to cheaper raw material

-exclusive access to a large source of low-cost inputs

• distributing products using dealers who work with lower profit margins

Question 13

what are cons of cost leadership (5)

Answer 13

-same strats among all competitors

• competitors can offer better features and quality which outweighs low prices

-the avoidance of technology because its expensive but meets consumer demands

-if not environmentally sustainable

-the need for heavy marketing = needing heavily discounted price

Question 14

what is product differentiation?

Answer 14

a product that can achieve greater market share because it is uniquely differentiated to it’s competitors

(achieve brand loyalty) = main objective

Question 15

how is product differentiation achieved? (6)

Answer 15

-more augmented features
-cross branding/strategic alliances

Question 16

whats a pro of product differentiation

Answer 16

differentiated product leads to higher premium price in price

-builds brand loyalty
-attracts target market

Question 17

describe manufacturing outputs (5)

Answer 17

-tangible
-reusable
-more capital intensive (machines)
-hard to modify

Question 18

describe service outputs (4)

Answer 18

-intangible
- only used once
-more labour intensive
-more interactions
-easy to change and modify

Question 19

what are the types of goods (5)

Answer 19

-standardised goods
-customised goods
-perishable goods
-non-perishable goods
-intermediate goods

Question 20

what are the types of services

Answer 20

-standardised
-customised
-self service

Question 21

what is the key word that bring the KBF’s finance and operations together?

Answer 21

-budgets

Question 22

how do finance/operations generally work together

Answer 22

-finance managers should maintain budgets to allow operation managers to align the funds made for equipment and inputs

-investments = if finance invests in areas like facilities and new technologies, it can lead to faster processing speeds and less wastes

-routine maintenance

Question 23

what are solely finance roles that affect operations

Answer 23

-managing costs
-cost leadership
-collecting data and analysing financial performance

Question 24

what are solely operation roles that affect finance

Answer 24

-managing stock and outsourcing with budget

-producing profitable products

Question 25

what is the key words that generally illustrates operations/marketting relo

Answer 25

-features of a good

Question 26

how do marketing/operations generally work together

Answer 26

research utilised to identify consumer desires is conducted

-its then implemented into the operations process

Question 27

what are solely operation roles that affect marketting

Answer 27

-they produce and supply the products

-consumer demands satisfied should reliably distribute the product to the market

-innovations specified by marketting

Question 28

what are solely marketing roles that affect operations

Answer 28

-construct research
-develop new products. based on capabilities of operations when considering

NEW PRODUCT FACTORS

Question 29

the key word that links operations/HR

Answer 29

Standards placed upon capital and labour together

Question 30

how do HR/operations generally work together

Answer 30

-skills and experiences taken into consideration

-enough employees with appropriate skills to accomplish the operations process

-provide training/seminars

Question 31

what are solely HR roles that affect operations

Answer 31

-use leadership style and rewards

-ensure quality work is done by employees

Question 32

what are solely operation roles that affect HR

Answer 32

-technology in operations can regularly change leaving employees redundant

-outsourcing changing nature