Business Studies : Operations

Great Tigers Quietly Chase Giraffes Leaping Everywhere Carefully

Globalisation, Technology, Quality Expectations, Government policies, legal regulations, environmental sustainability, corporate social responsibility

Globalisation

The integration of different national economies into a single market by removing trade barriers,

Cost—based Competition

As a business aims to make profit, this involves keeping costs to a minimum. This can be done by purchasing inputs in bulk or by reducing waste.

Corporate Social Responsibility (CSR)

Refers to a business doing the “right thing” for society. This has a responsibility to all stakeholders, customers, suppliers, factory workers in a developing country, etc.

Legal Compliance v Ethical Responsibility

Legal compliance expects that all businesses must follow and obey all relevant law that apply to them, including paying taxes, correct wages, and ensuring safety to all. Ethical responsibility covers the rest of the things expected by society that is not covered by law. This includes treating employees with respect, recycling waste products, etc.

Define operations processes.

A: Operations processes are the procedures that use inputs and transformation processes to create outputs (goods or services) that satisfy customer needs and help the business achieve its objectives.

What are the three stages of the operations process?

• Inputs = resources used

• Transformation = process of converting inputs

• Outputs = finished goods or services sold to customers

What is an input?

A: An input is any resource used in the production of a good or service. Inputs are combined during production to create value for customers.

Why are inputs important?

Inputs provide the resources needed for production. Operations managers must source the rights inputs to ensure efficient production, high quality, and customer satisfaction.

Define transformed resources.

A: Transformed resources are inputs that are changed or converted during the production process into finished goods or services.

Card 6

Q: What are the three transformed resources?

A: Materials, Information and Customers (MIC).