Setting Operational Objectives

What are the four main functions of a business?

Marketing, operations, human resources, and finance.

Why is it important for departmental objectives to align with a business's overall objectives?

Individual departments may not contribute to the overall success of the business.

What is a cost objective in operations management?

Focused on reducing or maintaining costs, such as fixed and variable costs.

Give an example of a cost objective from a business.

A value retailer like Poundland reducing packaging to lower variable costs.

What do quality objectives in operations aim to achieve?

Improving or maintaining the quality of products or services.

Provide an example of a business known for its quality objectives.

Rolex is known for the quality of its products.

What are dependability objectives in operations?

Focus on ensuring reliability to gain customer trust and improve sales.

How does a retailer maintain dependability when running low on stock?

They may pay to have products distributed directly to customers to stabilize supply.

What are environmental objectives related to operations?

Objectives aimed at reducing environmental impact, such as waste reduction.

Describe an example of an environmental objective implemented by a company.

Amazon developed software to optimize box sizes for packaging to reduce waste.

What does adding value mean in the context of operations objectives?

Converting raw materials into finished products that can be sold for a higher price than the cost of production.

How does Apple illustrate the concept of adding value?

Apple products, like the iPhone, are sold for much more than the cost of their components due to brand reputation.

What influences a business's choice of operational objectives?

Internal and external factors.

How do other business functions influence operational objectives?

Objectives from marketing, human resources, and finance can affect operational objectives.

Why might a business focus on reducing costs in its operational objectives?

If competing on price, cost reduction becomes a priority.

What internal resource can influence a business's operational objectives?

Availability of capital and labor.

What role do technological advancements play in operational objectives?

They can enable improvements in production processes.

How do changing customer tastes impact operational objectives?

Businesses may need to adjust their offerings to meet new customer demands.

What effect does globalization have on operational objectives?

It increases competition, prompting businesses to remain competitive in pricing and quality.