Evaluate the response of operations management to external influences. - HSC - SSCE Business Studies - Question 27 - 2016 - Paper 1

Operations management plays a crucial role in responding to various external influences, which can significantly impact its effectiveness and overall business success. The key external influences include:

1. Globalization

Globalization has led to increased competition and opportunities across borders. Operations management must adapt to different market dynamics, comply with varying regulations, and leverage global supply chains. Companies often modify their operations to be more cost-effective while maintaining quality standards.

2. Technology

The rapid advancement of technology necessitates continuous updating of operations processes. Automation and data analytics are examples where operations management is required to incorporate new technologies to improve efficiency and responsiveness to market demands.

3. Customer Expectations

With the rise of consumer awareness and expectations, operations management must focus on product quality, customization, and quick delivery. Aligning operations with customer preferences often necessitates changes in production methods and inventory management.

4. Government Policies

Policies such as regulations on safety, environmental standards, and trade can heavily influence operations strategies. Compliance with these policies is essential not only for legal adherence but also for maintaining a positive corporate image.

5. Social Responsibility

Increasingly, organizations are expected to address social and environmental issues in their operations. This includes adopting sustainable practices and ensuring corporate social responsibility (CSR), which can affect sourcing, manufacturing, and waste management processes.

Conclusion

In conclusion, operations management must continuously evaluate and adapt its strategies in response to these external influences. This dynamic response helps organizations maintain competitive advantage and meet stakeholder expectations.