Definition
Define: Cost Leadership
When a business is able to produce at the lowest cost compared to their competitors, generally pass through to consumers through lower prices
Strategic ___________ of operations _______________
role, management
Explain how a business may achieve cost leadership?
Through economies of scale, lower cost = lower prices = more customers.
Define: Product/Service differentiation
When a business focuses on unique/distinct features that separate them from their competitors.
_____________ leadership, good/service _____________________
cost, differentiation
Explain how finance and operations are interdependent with each other.
finance finds funds = operations produces products/services then generates a profit.
Define operations
goods and/or _____________ in _____________ industries
services, different
standardised = high volume, low margins
customised = low volume, high margins
Define: economies of scale
Cost advantage is created because the business scales up. i.e. cost per unit decreases as production increases.
________________________ with other ________ business ___________
interdependence, key, functions