Business Studies - Operations - Influences

Operations influences

1. Globalisation

2. Technology

3. Government Policies

4. Legal Regulations

5. Environmental Sustainability

6. Cost based Competition

7. Quality Expectations

8. Corporate social responsibility

: These influences present both opportunities and threats to the business, and are predominately external.

Globalisation

: Globalisation refers to the breakdown of these national borders to trade, and has allowed our global economy to become interconnected and interdependent

Effects of globalisation include:

-Inputs sourced from any country

-Hire Specialised labour

-Product quality increases

-Improved standard of living

-Increased job opportunities

Technology

: Technology has an impact on the way goods/services are designed produced and delivered.

: has changed the types of products we use and consumer

Quality Expectations

: Refers to how well designed, made, or functional a good is.

: in case of services how well designed, performed or delivered.

: This influences OPS

-inputs purchased

-machinery used

-time required for processing

-Level of training required

Quality expectations (Quality of goods)

-Quality of design

-Fitness for purpose

-Durability

Quality expectations (Quality of service)

-Professionalism

-Reliability

-level of customisation available

Cost based Competition

: Cost refers to the amount incurred in order for business to generate income

: The competition between businesses in the same industry to have low costs is known as 'Cost based Competition'

: A business that minimises their costs is able to maximise profitability

A business can do this by:

-Restructuring workforce

-Increasing economies of scale

-Outsourcing

-Monitor remuneration

Government Policies

: In the same way that government make decisions and laws about what citizens can do, they also regulate the behaviour of business.

: Some government policies include

-The fair work act (2009)

-Workplace health and safety act (2011)

-The establishment of minimum wage (Reviewed yearly)

-Recycling and waste reduction act (2020)

-Protection of the environment operations act (1997)

Legal Regulations

: Very closely related with government policies.

: Policies are made which are then enforced by laws.

: The organisations that enforce government policies are:

-Australian securities and investment commission (ASIC)

-Australian consumer and competition commission (ACCC)

-Environment protection authority (EPA)

-Safe work NSW

Environment Sustainability

: Refers to the commitment of business to encourage in business practices that are not detrimental to the environment.

: Focuses on businesses using resources wisely and ensuring their sustainable use guarantees these resources heading into the future

: OPS does most harm to environment as it is responsible for manufacturing + production

Corporate Social Responsibility

: Refers to the policies and practices of an organisation that recognise social, environmental and ethical interactions between businesses.

: CSR policies seek to acknowledge that generating profit is not the only responsibility of a business and they must cater for the environment and other ethical issues

Legal Compliance vs ethical responsibility

: Legal compliance means that businesses have no choice regarding obeying laws/regulations.

: Ethical responsibility refers to businesses that go 'over and above' legal compliance.

: These businesses often benefit by having increased sales and enhanced reputation

Environmental sustainability and Social Responsibility

: Economic development should not come at the expense of environmental and social wellbeing.

: Businesses are facing pressure to achieve profits while also adopting policies that acknowledge climate change

: A socially responsible business seeks to achieve profitability and contribute to the greater good of society simultaneously