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Hsc Business Studies 2016

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Submitted By kbranezac
Words 14614
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Topic 1: OPERATIONS
Operations can be defined as the process of converting a good or service into a finished product.

Roles of operations management
Operations management refers to the management of that process e.g. the allocation and maintenance of machinery and resources.

Strategic role of operations
The strategic role of operations management involves long term management issues (3-5 years).

Cost leadership
Involves producing goods or services at the lowest possible cost. If a business can keep its costs low then it will maximise its profits giving the business a competitive advantage over its competitors.

Good/service differentiation
By differentiating its good/services a business will make its output stand out from its competitors and therefore capture greater market share.

Goods and/or services in different industries
Goods and services in different industries will always be differentiated from one another. They will always try to differentiate themselves from their competitors in order to attract customers.

Influences on operations
There are seven major influences on operations: * Globalisation - Globalisation is known as the increasing economic and financial integration of economies globally. The term broadly refers to the global alterations that are taking place to eliminate national boundaries from the key business functions. * Technology – Technology has also had a great influence on production. Businesses must access the latest technology in order to compete effectively. Newer technology makes the production process cheaper and more efficient. Recent technologies include robotics, computer assembly lines, computer aided design (CAD), computer aided manufacturing (CAM), scanning systems and barcoding, wireless computer systems and superfast broadband and smart phones and satellite navigation. * Quality

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