Operations
Strategic Role of Operations
Cost leadership
Good/service differentiation
Types of Markets
resource, industrial, intermediate, consumer, mass, niche
Equity (ordinary shares)
(new issues, rights issues, placements, share purchase plans)
Stakeholders
employers, employees, employer associations, unions, government organisations, society
Communication Process
opinion leaders, word of mouth
Influence on transformation processes
volume, variety, variation in demand and visibility (customer contact)
Factors influencing consumer choice
psychological, sociocultural, economic, government
Global market influences
economic outlook, availability of funds, interest rates
Social
changing work patterns, living standards
recruitment
internal or external, general or specific skills
Influences
globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environmental sustainability
Ethical influences
truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging
planning and implementing
financial needs, budgets, record systems, financial risks, financial controls
Rewards
monetary and non-monetary, individual or group, performance pay
Physical Distribution Issues
transport, warehousing, inventory
Overcoming Resistance to Change
financial costs, purchasing new equipment, redundancy payments, retraining, reorganising plant layout, inertia
implementation, monitoring and controlling
developing a financial forecast; comparing actual and planned results, revising the marketing strategy
limitations of financial reports
normalised earnings, capitalising expenses, valuing assets, timing issues, debt repayments, notes to the financial statements
Workplace Dispute Resolution
negotiation, mediation, grievance procedures, involvement of courts and tribunals
External Sources of Finance - Debt
short-term borrowing (overdraft, commercial bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing)
Global Factors
global sourcing, economies of scale, scanning and learning, research and development
Promotional Mix
advertising, personal selling and relationship marketing, sales promotions, publicity and public relations
cost controls
fixed and variable, cost centres, expense minimisation
effectiveness of human resource management
corporate culture, benchmarking key variables, changes in staff turnover, absenteeism, accidents, levels of disputation, worker satisfaction
financial ratios
liquidity – current ratio (current assets ÷ current liabilities)
gearing – debt to equity ratio (total liabilities ÷ total equity)
profitability – gross profit ratio (gross profit ÷ sales); net profit ratio (net profit ÷ sales); return on equity ratio (net profit ÷ total equity)
efficiency – expense ratio (total expenses ÷ sales), accounts receivable turnover ratio (sales ÷ accounts receivable)