Operations
Outline the strategic role of operations
Cost Leadership
Goods and Service Differentiation
Outline TWO Strategic Roles of Marketing
- Profit Maximisation
- Increased Market Share
What are the objectives of financial management
profitability
growth
liquidity
solvency
efficiency
Describe the purpose of WHS legislation.
Protect employees from any injuries sustained at work, enforce safe working environment.
Outline the 4 V's
1. Volume Flexibility: how quickly the business can adapt to increase/decrease demand
2. Variety: the variety in products made
3. Variation in demand: a business adapting to demand in relation to inputs required eg: materials, HR
4. Visibility: customer contact/feedback
Outline the THREE channel choices used for distribution
1. Intensive Distribution: saturate market - local shopping (eg: milk, bread)
2. Selective Distribution: moderate proportion of all possible outlets (eg: clothing & furniture)
3. Exclusive Distribution: use of one retail outlet in a large geographical area (eg: luxury car)
Describe the purpose of an overdraft.
Overdraft - when a bank allows a business or individual to overdraw their account up to an agreed limit and for a specified time, to help overcome a temporary cash shortfall.
Overdrafts assist businesses with short-term liquidity problems; for example, a seasonal decrease in sales.
Costs for overdrafts are minimal, and interest rates are lower than on other forms of borrowing.
Describe TWO types of separation.
Voluntary separation: resignation, relocation, voluntary redundancy or retirement.
Involuntary separation: contract expiry, retrenchment or dismissal.
Redundancy: a person’s job no longer exists due to technological changes, organisational restructure, merger or acquisition.
Retrenchment: business dismisses an employee because there is not enough work to justify paying them.
Dismissal: employees involved in serious misconduct, poor performance or redundancy (must be fair and reasonable).
Unfair dismissal: dismissal was harsh, unjust or unreasonable or not a case of genuine redundancy (can make a remedy application to FairWork).
Explain the use of technology on the transformation process with the use of an example.
process layout can streamline the manufacturing process and create a more efficient production line for businesses, therefore they may be able to manufacture additional goods in the same period of time, thus leading to more goods produced to be sold and therefore increased profits.
Personal Selling: Involves the human aspect of marking (sales consultant)
Relationship Marketing: Long-term development of business-customer relationship (loyalty programmes)
Explain how government can influence the financial management of a business. Use an example to support your response.
ASX:
Reduces fraud and unfair practices in financial market and products
Ensure companies adhere to laws
Collects information and makes it public
Has powers to enforce the Corporations Act
Company Taxation:
All incorporated companies are required to pay tax on profits
Tax is levied at a flat rate of 30%
Paid before profits are distributed to shareholders
How are performance appraisals of employees beneficial to employers?
Developmental: focuses on individual skills of employees - develops skills so that employees they can be more useful to the business. Developing employee skills can also make them feel valued at the business therefore reducing staff turnover or absenteeism.
Administrative: Can be used to plan training for teams to improve overall skills. Can also be used to set KPI's to hold employees accountable in achieving the business's strategic goals.
Discuss the use of outsourcing as an operations strategy.
Adv: cost savings, simplification, access to skills & additional resources
Disadv: Possible increased costs, loss of control over quality, loss of corporate culture
How does customisation help the business to achieve its strategic role of marketing?
Customisation - used to change the way a product can be advertised based on the needs of each country to satisfy the market.
Used to achieve Strat. Role. as satisfying the needs of your market can lead to increased interest in business and therefore increased profits & marketshare
Discuss why a business may choose to use debt finance rather than equity finance to acquire new stores.
Debt: Instant cash to expand however interest on repayments can be high
Equity: No interest, can be slow to aquire the funds
Discuss the influence of the economic cycle on human resource management.
Economic Boom: Increased consumer consumption = increased production = increased need for skilled employees (acquisition needed, more spending on training and development)
Economic Recession: Decreased consumer consumption/spending = lower levels of productivity/manufacturing = retrenchment (separation)