Topic 1- operations
Part 1: POSITION OF BUSINESSES MANAGEMENT
The role of operations supervision
The creation of goods as well as the provision of services simply by businesses. The transformation of inputs into outputs or products being sold. This requires:
selecting and employing manufacturing operations
Developing ways of gain a sustainable competitive advantage.
The tactical role of management
A strategic decision can be one that influences the business in the long run. The proper goals should be improve:
quality of results
Therefore , every strategic decisions will concentrate on lower costs to a industry benchmark through efficiency and producing a good or service that is different to and competitive against rivals in the market.
You will find 3 types of strategies that are commonly used by businesses to gain and keep a competitive advantage. These are generally:
A cost management strategy can be where a organization aims to end up being the lowest price manufacturer within just its market. The products would be the basic, no-frills type with fewer features, perhaps lower quality and using low-cost packaging.
Low costs can be accomplished through:
economies of level in production and circulation,
access to cheaper raw materials
exclusive use of a large way to obtain low cost advices
Distributing the item using sellers who work with lower profit margins.
The issues that operation mangers need to be conscious are:
Opponents can use similar strategy and may achieve possibly lower costs
The business's product is not really perceived by simply customers to be equal to the competitors since competitors offer better technology, features and service.
Developments in technology change buyer preferences
Buyers may even think that these types of вЂthrowaway are not eco sustainable
A very good competitor uses aggressive marketing with heavily discounted prices
A product or service may achieve a greater market share because it is distinctively different to their competitors. It may be achieved through:
Custom designed products
Area of businesses
More features and applications
A differentiated merchandise can command a higher superior price on the market as customers are interested in the product and build up brand loyalty.
Services and goods in different industries
may be reused
more capital intensive (machinery)
can be placed
Hard to change once created.
can easily be used by one customer once
more labour intense
even more interaction with customers
Simpler to change and customise.
There are a few similarities, that they both:
Must make predictions
Cope with customers and suppliers
Generate decisions regarding capacity
Interdependence of businesses and the organization
Specialisation вЂ“ where the business is segregated into distinct functions, every of which is highly skilled in its specific job or role.
Interdependence вЂ“ in which the different parts of a small business must rely on each other to perform their job or part.
There will be a continuing flow info between businesses and the additional key business functions: promoting, human resources and finance.
In marketing, study identifies the nature of goods customers' desire and marketing strategies motivate purchases.
Businesses must supply a product that has the features and quality customers demand as well as reliably distributing this product for the market.
The finance manager will create budgets and make funds available to purchase inputs, tools, repairs
Human resources will ensure that enough workers with the ideal skillsвЂѓ
Chapter a couple of: INFLUENCES
The positive effect
Globalization offers consumers a chance to purchase...