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BIG Construction uses timber to build new houses - VCE - SSCE Business Management - Question 2 - 2022 - Paper 1
Question 2
BIG Construction uses timber to build new houses. Prior to 2022, the business purchased all of its materials from overseas suppliers. During 2022, the business was... show full transcript
Worked Solution & Example Answer:BIG Construction uses timber to build new houses - VCE - SSCE Business Management - Question 2 - 2022 - Paper 1
Step 1
a. Explain the relationship between operations management and this objective for BIG Construction.
Answer
Operations management is crucial for ensuring that BIG Construction can fulfill its market needs effectively. By effectively managing the operations related to sourcing materials, scheduling tasks, and coordinating workforce activities, the company can align its resources with customer demand. With the appropriate materials and workforce management, the company can minimize delays and ensure timely project completion, thus directly contributing to its objective of fulfilling a market need.
Step 2
b. Explain how not being able to source enough building materials, such as timber, might affect one of the following key performance indicators (KPIs): the rate of productivity growth.
Answer
The KPI of productivity growth measures the ratio of outputs to inputs over a specific time. In BIG Construction's context, the inability to source enough timber can lead to delays in construction activities. This can result in a reduced output, as fewer houses can be completed in a given timeframe. Consequently, the productivity growth rate may decline, reflecting inefficiencies that can arise from inadequate material supply.
Step 3
c. Propose and justify one strategy that BIG Construction could use to seek new domestic business opportunities.
Answer
BIG Construction could diversify its product offerings by expanding into commercial building projects, such as offices or retail spaces. This strategy Not only allows the company to tap into a new customer base but also mitigates risks associated with fluctuating demand in the residential market. By diversifying, BIG Construction could improve its market share and stabilize its income, helping to secure new domestic business opportunities.
Step 4
Explain how global outsourcing can be used by Blartem Clothing to ensure that one business objective can be met.
Answer
Blartem Clothing can utilize global outsourcing to reduce production costs while maintaining quality standards. By outsourcing manufacturing to regions with lower labor costs, Blartem can allocate resources more effectively to other critical business objectives, such as marketing or product development. Additionally, outsourcing can provide access to specialized skills and technologies, ensuring that Blartem remains competitive in the market.