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Assess strategies that management may use to respond to influences on operations. - HSC - SSCE Business Studies - Question 27 - 2013 - Paper 1
Question 27
Assess strategies that management may use to respond to influences on operations.
Worked Solution & Example Answer:Assess strategies that management may use to respond to influences on operations. - HSC - SSCE Business Studies - Question 27 - 2013 - Paper 1
Step 1
Performance objectives – quality, speed, dependability, flexibility, customisation, cost
Answer
Management can adopt performance objectives to enhance operational efficiency. By prioritizing quality, the organization ensures high standards in products and services, which can lead to better customer satisfaction. Speed in operations allows for quicker delivery times, thereby meeting customer demand effectively. Dependability ensures consistent performance, while flexibility enables the organization to adapt to changing market conditions. Customisation allows businesses to tailor their offerings based on customer preferences, ultimately enhancing competitiveness and loyalty. Moreover, closely monitoring costs helps to maintain profit margins.
Step 2
New product or service design and development
Answer
Management strategies can also focus on innovation in product and service design. By investing in research and development, organizations can create new offerings that meet customer needs and anticipate market trends. Effective designs can improve operational processes by reducing waste and increasing efficiency. Incorporating feedback from customer interactions is essential, as it can guide the design and development phase towards market-relevant outcomes.
Step 3
Supply chain management – logistics, e-commerce, global sourcing
Answer
An effective supply chain management strategy is pivotal in responding to operational influences. This includes the optimization of logistics to ensure timely delivery of materials and products. Embracing e-commerce capabilities can enhance market reach and improve sales processes. Furthermore, global sourcing allows management to acquire materials and services at competitive prices, thereby improving cost efficiency and operational leverage.
Step 4
Outsourcing – analysis and advantages/disadvantages
Answer
Outsourcing certain functions can be a beneficial strategy for management. By analyzing which tasks can be outsourced, organizations can save costs and focus on their core competencies. However, it is essential to consider the disadvantages, such as potential loss of control over certain processes and the impact on employee morale. A thorough assessment will help management make informed decisions regarding outsourcing.
Step 5
Inventory management – leading edge, established
Answer
Effective inventory management strategies are crucial for operational success. Management must consider both cutting-edge technologies and established methods. Leveraging new technologies can improve tracking and forecasting, while established practices can offer stability. Utilizing methods like Just-in-Time (JIT) inventory can reduce holding costs and increase responsiveness to market demands.