YEAR 12 TERM 4 Flashcards
What are all the operational strategies?
- Performance Objectives
- Outsourcing
- Technology
- Supply Chain Management
- Inventory Management
- New Product or Service Development
- Quality Management
What are the performance objectives and how do they impact operations
- Speed: Time it takes for the operations of a business put a product through the transformation process and to the customer
- Quality: This is the quality of a product
- Flexibility: How quickly the operation adjusts to changes in the market
- Customisation: Creation of products specific to the customer
- Cost: Minimisation of the Operation process
- Dependability: How reliable a product is.
How does new product or service design help a business?
Product Differentiation —> Provides a competitive advantage.
What do you put in an executive summary
Features, issues of the business (Stimulus). Then what im going to talk about (summarised intro)
What are the four V’s of the transformation process
Volume, Variety , variation and visibility.
How can supply management helo a business
Sourcing: Minimise cost or increase quality of product.
Ecommerce: Sell products globally online (supply management manged electronically)
Logistics: Cut down wait time to customers
What are the advantages of outsourcing
- simplification,
- efficiency, and cost savings
- Increased process capability
- Increased accountability
- Access to skill/resources lacking within the business
- Provides a capacity to focus on core competencies thus improving in house performance.
What are the disadvantages of outsourcing
- Cost and uncertainty associated with payback
- Issues with communication and language
- Loss of control of standards and information security loss of corporate memory and costs associated with IT, organisational change, redesign and management of hierarchies
Name two types of Technology and how they help?
Leading-edge- provides a competitive edge
Established - Reliable and can compete with competitors (standard)
What is LIFO, FIFO and JIT
LIFO (last in first out): The stock bought last would assume to have been sold first. May overstate costs and understate gross profits.
FIFO (first in first out): The stock bought first would assume to have been sold first. Stock costs may be understated and profits overstated. Stocks at the end over the period may be overvalued.
JIT (just in time): JIT aims to overcome the problem of the end of period stock valuation –> lean production method. It allows retailers to display a wider range of products as they need to store less and can order in response to consumer demand.
What is the cost leadership strategy
This strategy has the lowest cost out of all competition. This can be done by lowering the price of the good to the consumer or the cost to make the good.
What is the performance objective strategy
It is the amount of performance aimed at by management. By having this objective employee understand what needs to be done and pushes for these goals
What is specialization
Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade for other goods and services.
What are the four four distinct dimensions that account for every decision and action in a business
- Strategy: Who does your business serve? What are its core competencies and how will you leverage them? What are your business’s goals for the year? Questions like these all fall within the dimensions of strategy. It serves as the foundation and hub for all of the other dimensions, and having a weak strategy core often causes many businesses to put the cart before the horse.
- Operations: The dimension of operations is the realm of execution and productivity. In short, it covers getting stuff done.What separates a lot of good businesses from great ones is their execution. Businesses that get the right stuff done grow faster and more consistently than businesses that struggle with execution. Things such as planning, management and knowledge all fall in operations.
- Marketing: There’s a reason that so many of the gurus in business are marketers or salespeople: good marketing equals more money. We all know that cash-flow is the pulse of any business, and marketing is what gets you cash-flow.effective marketing ensures that a business’s resources are leveraged in the best way possible, thus making it a great way to keep money in your business as well as to make more. Many businesses work hard at crafting a wonderful offer, only to have a weak marketing campaign offset the return they might have gotten from their efforts. Spending a quarter developing an offer only to make a month’s worth of revenue is a much less effective use of resources than is spending a quarter developing an offer and making a quarter’s revenue from it.
4: Finances: What’s striking is that the more grounded you get in your financial reality, the more clarity you have about what your business has done and can do. Most people don’t need to have a daily sales report, but a monthly sales report may not give you enough time to react or plan. Additionally, a gross sales report may not show you which income stream is the breadwinner and which is the lead weight you need to drop.
What is the goods and services strategy
This is a strategy whereby the business seeks to be competitive on the basis of the special characteristics they possess in comparison to their competitors An example of this is ferrari.
