Unit 3: Business Operations

Question 1

What are ‘Business Operations’?

Answer 1

The activities needed for a business to function from day-to-day.

Question 2

What is a Supply Chain?

Answer 2

The network of Individuals/Companies who create a product and deliver it to the customer.

Question 3

What does a Supply chain consist of?

Answer 3

Suppliers, Manufacturers, Distributers and Retailers.

Question 4

What are the Factors a business will consider when picking a supplier?

Answer 4

• Price
• Quality
• Reliability [the delivery of product/service]

Question 5

What is Procurement?

Answer 5

When Businesses Find and Purchase things it needs.

Question 6

What is Logistics?

Answer 6

The movement of goods from one part of the supply chain to another.

Question 7

What are the Benefits of an effective Supply chain?

Answer 7

• Operations and processes are carried out in the most efficient and cost-effective way
• Receive the best price and value for goods
• Reduce Waste and unnecessary costs

Question 8

What is Job Production?

Answer 8

Producing individual and unique products. [Tailoring, Making Bridges Etc…]

Question 9

What is Flow/Mass Production?

Answer 9

Producing identical products [making canned-food]

Question 10

What is Lean Production

Answer 10

When a Business uses as few resources as possible and wastes as little as possible [a ways of improving efficiency]

Question 11

What is ‘Just-in-Time’

Answer 11

When Businesses only order/produce only the amount that will be guaranteed a sale.

Question 12

What is ‘Just-in-Case’

Answer 12

When Businesses order/produce extra ‘stock’ just in case of unexpected customer demands.

Question 13

Where can ‘Quality’ be shown in a business

Answer 13

Products, Service & Customer Service

Question 14

Benefits of of Maintaining Quality

Answer 14

• Offer Higher Prices; Customers are willing to pay more for Quality
• Increased Sales; Quality products are most likely to have repeat purchases
• Better reputation and Image

Question 15

Costs of Maintaining Quality

Answer 15

• Costly to Train Staff [to make products etc…]
• Inspections to see if Quality is good enough can cost both time and money

Question 16

How can a Business measure Quality?

Answer 16

• Customer Surveys [to see if they are satisfied with quality]
• Monitor complaints on quality of product
• Inspections

Question 17

What is Total Quality Management [TQM]

Answer 17

A business strategy making the consistency of quality the main priority.

Question 18

Pros and Cons of Total Quality Management

Answer 18

Pros: Increase customer satisfaction, repeat purchases, sales etc…
Cons: Training staff is required [can be costly and time consuming], the ‘extra-work’ can demotivate employees

Question 19

How can rapid growth in Business make it harder to maintain High Quality?

Answer 19

• Can become expensive to carry out all necessary inspection on the overwhelming number of order
• Solutions [like outsourcing, franchising or taking more employees] are costly

Question 20

How can a Business have good Customer Service?

Answer 20

1) Excellent Product Knowledge; So any questions from customers can be answered quickly and accurately
2) Positive Customer Engagement
3) Post-Sales Service

Question 21

Benefits of Good Customer Service

Answer 21

• High-levels of Customer Satisfaction
• Increase Repeat Purchases
• Customers will more likely spend more

Question 22

Dangers of Poor Customer Service

Answer 22

• Dissatisfied Customers
• Poor reputation there falling revenue