Operations
strategic role of operations management
cost leadership OR good/service differentiation
Role - Objectives of financial management
– profitability, growth, efficiency, liquidity, solvency – short-term and long-term
Role of Marketing - Types of markets
resource, industrial, intermediate, consumer, mass, niche
Role - outsourcing
– human resource functions
– using contractors – domestic, global
Outline
Sketch in general terms
influences
- Globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation, environmental sustainability
- corporate social responsibility – the difference between legal compliance and ethical responsibility – environmental sustainability and social responsibility
Influences - External sources of finance
debt – short-term borrowing (overdraft, commercial bills, factoring), long-term borrowing (mortgage, debentures, unsecured notes, leasing)
equity – ordinary shares (new issues, rights issues, placements, share purchase plans), private equity
Influences - Factors influencing customer choice
Psychological, sociocultural, economic, government
Influences
- stakeholders
- legal
- economic
- technological
- social
- ethics and corporate social responsibility
Discuss
Identify issues and provide points for and/or against.
operations processes
inputs
transformation processes
outputs
Processes - Financial Ratios
- liquidity / current ratio
– gearing / debt to equity ratio
– profitability – gross profit ratio / net profit ratio / return on equity ratio
– efficiency – expense ratio / accounts receivable turnover ratio
– comparative ratio analysis – over different time periods, against standards, with similar businesses
Marketing process
situational analysis – SWOT, product life cycle
market research
establishing market objectives
identifying target markets
developing marketing strategies
implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy
Processes of human resource management
acquisition
development
maintenance
separation
Make a judgement of value, quality, outcomes, results or size.
Assess
Strategies - Inventory management
advantages and disadvantages of holding stock
LIFO (last-in-first-out)
FIFO (first-in-first-out)
JIT (just-in-time)
Financial Strategies - Cash Flow
– cash flow statements
– distribution of payments, discounts for early payment, factoring
Marketing Strategy - Pricing & Pricing Methods
cost, market, competition-based
pricing strategies – skimming, penetration, loss leaders, price points – price and quality interaction
HR Strategies
leadership style
job design
recruitment
training and development
performance management
rewards
global
workplace disputes
Analyse
Stratgies - Global factors
Global sourcing, economies of scale, scanning and learning, research and development
Financial Strategies - Global financial management
exchange rates
– interest rates
– methods of international payment
– payment in advance, letter of credit, clean payment, bill of exchange
– hedging
– derivatives
Strategies - Global Marketing
global branding – standardisation – customisation – global pricing – competitive positioning
HR Indicatiors
corporate culture
benchmarking key variables
changes in staff turnover
absenteeism
accidents
levels of disputation
worker satisfaction
Recommend
Provide reasons in favour.