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Operations Extended Response

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Operations Extended Response

How does an understanding of the influences on operations contribute to business success?

The success of every business depends on adapting itself to the environment within which it functions. A thorough understanding of the operational influences on a business is critical to ensuring the business is flexible, and can adapt to changing market circumstances. Without continually updated knowledge of the operational influences which consists of globalisation, technology, legal regulation, government policies, environmental sustainability, quality expectations and cost-based competition, the success of the business is questionable.

The success of a business can be measured through indicators such as strategic goals, market share, profitability, growth, efficiency, quality of output, business competitiveness/image, meeting the changing needs of customers and their contribution to the wellbeing of society.

Globalisation

An understanding of globalisation gives a business a direction for growth, and enables the business to identify the areas for growth and expansion of their activities. For example Google is an effective innovator that develops and distributes high quality, distinctive ideas that are transformed into products that are sold globally. They have utilised globalisation so as to mass produce innovative products at low cost. This has been essential to Google’s position as a market leader.

The knowledge to harness globalisation through outsourcing and creating a global network of suppliers can lead to decreased production and labour/regulatory/taxation costs and allows the business to expand and increase efficiency of distribution in a global market. It can also lead to increased awareness of the good/service delivered.

Global sourcing suggests a business locating sites from which either cheaper or better quality

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