Business studies syllabus

Strategic role of operations management (Role of operations management)

The strategic role of operations involves long-term planning to achieve cost leadership and/or differentiation through effective processes.

Goods and/or services in different industries (role of operations management)

Goods are tangible items produced and sold, while services are intangible experiences provided to customers.

Interdependence with other key business functions (role of operations management)

Operations must coordinate with finance (funding), HR (staffing), and marketing (promotions) to succeed.

Globalisation (operations influence)

The integration of markets affects sourcing, standards, and competition.

Technology (operations influence)

Technology improves efficiency, speed, and quality in production processes.

Quality expectations (operations influence)

Standards customers expect in goods/services—reliability, features, durability.

Cost-based competition (operations influence)

Competing by reducing operational costs to allow competitive pricing.

Government policies and legal regulation (operations influence)

Operations must comply with industry laws and government standards.

Environmental sustainability (operations influence)

Minimising environmental impact through efficient and clean operations.

Corporate Social Responsibility (CSR) (operations influence)

Voluntarily going beyond legal obligations to consider ethical, environmental, and community impacts.

Inputs (operations process)

Resources like labour, materials, and technology used to produce goods/services.

Transformation processes (operations process)

Converting inputs into outputs via value-adding activities.

4 Vs (transformation process, operations process)

Volume – amount produced

Variety – range of products

Variation – changes in demand

Visibility – customer contact

Sequencing and scheduling (transformation process, operations process)

The length and order of activities

Value adding (transformation process, operations process)

Activities that add value to a product or service

Monitoring and controlling (transformation process, operations process)

Ensures operations meet planned goals by adjusting processes when needed

Gantt charts and Critical path analysis (transformation process, operations process)

Timeline of tasks and identifies the longest path of dependent tasks to complete a project efficiently

Outputs (operations process)

Final goods/services delivered to customers.

Performance objectives (Operations strategy)

Goals for quality, speed, dependability, flexibility, customisation, and cost.

New product or service design (operations strategy)

Developing offerings to meet evolving customer needs.

Supply chain management (operations strategy)

Managing flow of inputs, processes, and outputs to customers.

Outsourcing (operations strategy)

Hiring external parties to perform business functions.

Technology in operations (operations strategy)

Use of equipment and software to enhance operations.

Inventory management (operations strategy)

Managing stock levels of inputs and outputs to optimise cost and service.

Quality management (operations strategy)

Ensuring products/services meet standards through assurance and control.

Overcoming resistance to change (operations strategy)

Using strategies like communication and training to support change.

Global factors (operations strategy)

Operations affected by global risks, costs, and opportunities.

Strategic role of marketing (Role of marketing)

Achieving business goals by identifying and satisfying customer needs.

Interdependence with other business functions (role of marketing)

Marketing aligns with finance (budgets), HR (staff training), and operations (product delivery).

Marketing approaches (role of marketing)

Production (focus on output), Selling (push promotion), and Marketing (customer-centred).

Types of markets (role of marketing)

Resource, intermediate, consumer, mass, and niche markets.

Influences on customer choice (marketing influence)

Psychological, sociocultural, economic, and government factors.

Consumer laws (marketing influence)

Ensures product/service rights and protects consumers from deceptive conduct, including:

Deceptive & misleading advertising

Price discrimination

Implied conditions

Warranties

Ethical influences (marketing influence)

Marketing must avoid misleading messages and support social good.

Situational analysis (marketing process)

SWOT and product life cycle to evaluate the internal/external environment.

Market research (marketing process)

Gathering and analysing market data to make decisions.

Marketing objectives (marketing process)

Specific, measurable goals—e.g., increase market share or loyalty.

Target market (marketing process)

Group of customers at which marketing is aimed.

Segmentation, differentiation, positioning (marketing strategy)

Dividing markets, offering unique features, and shaping brand image.

Product (4 Ps, marketing strategy)

Includes product branding, packaging, quality and features.

Pricing (4 Ps, marketing strategy)

Cost-based pricing: Price = cost + profit margin

Market-based pricing: Based on customer demand and competitor prices

Competition-based pricing: Benchmark against competitors

Penetration pricing: Lower price to enter/boost demand

Promotion (4 Ps, marketing strategy)

Advertising: TV, digital, outdoor, celebrity collaborations

Public relations: Managing image and crisis communication

Sales promotion: Deals and bonus points offers

Personal selling: Travel agent collaboration

Relationship marketing: Frequent Flyer loyalty

Place/Distribution (4 Ps, marketing strategy)

Channels and logistics used to deliver the service.

People, processes, physical evidence (4 Ps, marketing strategy)

Extra Ps for services—staff, service flow, and environment.

E-marketing (marketing strategy)

Using digital tools to promote and sell.

Global marketing (marketing strategy)

Marketing across borders using standardisation or adaptation.

Strategic role of financial management (role of financial management)

Managing financial resources to meet long-term objectives—profitability, liquidity, growth, efficiency, solvency.

Interdependence with other business functions (role of financial management)

Finance supports HR (wages), operations (investment), and marketing (ad budgets).

Financial objectives (role of financial management)

Profitability, growth, efficiency, liquidity, and solvency.

Internal sources (financial influences)

Retained profits: Profits kept in the business instead of being distributed to owners or shareholders.

Debt finance: Borrowed money that must be repaid with interest (external source, financial influences) (short-term)

Short-term:

Overdraft: Bank allows withdrawal beyond account balance.

Commercial bills: Large, short-term loans issued by financial institutions.

Factoring: Sale of accounts receivable to a third party.

Debt finance: Borrowed money that must be repaid with interest (external source, financial influences) (long-term)

Mortgage: Loan secured against property.

Debentures: Issued by a company to raise funds, repayable at a future date with interest.

Unsecured notes: Loans with no collateral.

Leasing: Renting assets instead of purchasing.

Equity finance: Funds raised by selling ownership (shares). (external source, financial influences)

Ordinary shares: Most common type of shares issued to the public.

New issues: Shares offered to the public for the first time.

Rights issues: Existing shareholders offered more shares.

Placements: Shares offered to selected investors.

Share purchase plans: Small share offers to existing shareholders.

Financial institutions (financial influence)

Banks, investment firms, ASX, etc. provide financial services.

Government influence on finance (financial influence)

Includes ASIC regulation and company taxation.

Global influences on finance (financial influence)

Exchange rates, interest rates, and global conditions affect finance.

Financial planning and implementation (financial management process)

Involves budgeting, financial controls, and risk management.

Monitoring and controlling (financial management process)

Financial statements (cash flow, income, balance sheet) track performance.

Cash Flow Management (financial management strategy)

Cash flow statements: Monitor money in and out to maintain liquidity.

Distribution of payments: Spread expenses to manage cash effectively.

Early payment discounts: Encourage faster customer payments to boost cash flow.

Factoring: Sell receivables for quick cash.

Working Capital Management (financial management strategy)

Current assets control: Manage cash, receivables, and inventory for liquidity.

Current liabilities control: Oversee payables, loans, and overdrafts to prevent strain.

Leasing: Rent assets to preserve capital.

Sale and leaseback: Sell assets then lease them back to free up cash.

Profitability Management (financial management strategy)

Cost controls: Managing fixed and variable costs, cost centres, and expense minimization to improve profitability.

Revenue controls: Aligning marketing objectives to maximize sales and business growth.

Global Financial Management (financial management strategy)

Exchange rates: Manage currency fluctuations in global trade.

Interest rates: Assess borrowing costs and global conditions.

Hedging: Minimize risks from currency or price changes.

Derivatives: Use tools like futures/options to manage risk.

Payment methods:

Advance: Buyer pays upfront.

Letter of credit: Bank guarantees payment.

Clean payment: Pay without guarantees.

Bill of exchange: Promise to pay later.

Strategic role of HR (role of HR)

Managing human resources to support business goals via recruitment, development, and retention.

Interdependence with other business functions (role of HR)

HR works with operations (crew), finance (wages), and marketing (customer service).

Outsourcing (role of HR)

Hiring external firms for HR tasks.

Stakeholders in HR (HR influence)

Employees, employers, unions, employer associations, government, and society.

Legal influences (HR influence)

Includes Fair Work, WHS, EEO, and anti-discrimination laws.

Economic influences (HR influence)

Economic cycles affect employment levels and wages.

Technological influences (HR influence)

New tech affects job roles and requires training.

Social influences (HR influence)

Changing work patterns, living standards, and expectations shape HR policy.

Ethics and CSR (HR influence)

Fair and inclusive hiring, training, and treatment of staff.