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To what extent do influences on operations affect business success? - HSC - SSCE Business Studies - Question 27 - 2023 - Paper 1
Question 27
To what extent do influences on operations affect business success?
Worked Solution & Example Answer:To what extent do influences on operations affect business success? - HSC - SSCE Business Studies - Question 27 - 2023 - Paper 1
Step 1
Influences on Operations
Answer
Operations in a business are profoundly influenced by various factors, which can dictate the overall success of the organization. Key influences include:
- Globalization: This factor compels businesses to adapt their operations to meet global standards, affecting production, supply chains, and marketing strategies.
- Technology: The adoption of advanced technological tools improves efficiency and reduces costs but requires continuous adaptation to stay competitive.
- Customer Expectations: As customer preferences evolve, businesses must refine their operations to deliver quality products and services that meet these shifting demands.
- Cost-Based Competition: Companies often need to optimize their operational processes to maintain a competitive edge in pricing without compromising on quality.
- Government Policies: Regulations and compliance requirements can shape operational tactics, requiring businesses to adjust their approaches to legal standards.
- Corporate Social Responsibility: Companies today face pressure to operate sustainably, which can influence operational procedures and strategic decisions.
Step 2
Impact on Business Success
Answer
The extent to which these influences affect business success can vary significantly. For instance, failure to keep pace with technological advancements can lead to decreased market share, while ignoring customer expectations might result in diminished brand loyalty.
Moreover, operational efficiency can directly impact profitability. Businesses that skillfully navigate these influences often see improvements in both productivity and customer satisfaction, leading to long-term success. Conversely, neglecting these factors may lead to operational failures and a decline in overall performance.
Step 3
Examples from Case Studies
Answer
To support these points, businesses like Amazon and Tesla serve as examples where effective operational strategies aligned with technological innovation and customer expectations contributed to their success. In contrast, companies that failed to adapt, like Blockbuster, faced significant declines as they ignored shifts in consumer behavior and technological advancements. These case studies highlight how critical it is for businesses to evaluate and adapt their operations based on external influences routinely.