Global Factors (HSC SSCE Business Studies): Flashcards
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4 major global factors in operations strategy
4 major global factors in operations strategy
Global sourcing, economies of scale, scanning & learning, R&D
Global sourcing
Global sourcing
Purchasing supplies/services from anywhere globally
SLAs (service level agreements)
SLAs (service level agreements)
Contracts specifying expected service level from suppliers
Economies of scale
Economies of scale
Cost advantages by increasing production size/scale
Economies of scale relationship
Economies of scale relationship
Higher production → lower cost per unit → higher profit
MNCs (multinational corporations)
MNCs (multinational corporations)
Large businesses achieving economies across functions
Scanning and learning
Scanning and learning
Monitoring global best practices and adapting strategies
Kaizen
Kaizen
Japanese term meaning continuous improvement in all areas
R&D (research and development)
R&D (research and development)
Allocating resources to create innovative products/tech
Australia's global R&D ranking (OECD)
Australia's global R&D ranking (OECD)
107th globally