OPERATIONS & STRATEGY
What is operations management?
Managing the production of goods and services efficiently.
What is human resource management (HRM)?
The function responsible for recruiting, training, motivating, and retaining employees.
What is the formula for profit?
Total Revenue − Total Costs (or TR − TC)
What is marketing?
Identifying and satisfying customer needs profitably.
What is a business?
An organization that provides goods or services to satisfy needs and wants, usually aiming to make a profit.
What is break-even output?
The level of output where total revenue equals total costs.
Name one non-financial method of motivation.
flexible hours, career development/training, recognition, positive work environment (etc.)
State one internal and one external source of finance.
(retained profit, bank loan, trade credit, shares/equity, grants) - All Acceptable answers
Name any two elements of the marketing mix.
Price, product, promotion, place (or people, process, physical evidence).
Name one primary and one secondary business objective.
Primary: profit maximization. Secondary: growth, social responsibility, or market share.
Explain one benefit of lean production.
Reduces waste, lowers costs, and improves efficiency.
Explain how organizational culture can affect employee motivation.
A positive culture increases job satisfaction and productivity, while a toxic one lowers morale.
Explain the difference between liquidity and profitability.
Liquidity measures short-term cash ability; profitability measures long-term financial success.
Explain one benefit of market research before launching a product.
Reduces risk by identifying customer needs and demand.
Explain one advantage and one disadvantage of being a multinational company (MNC).
Advantage: access to global markets and economies of scale.
Disadvantage: cultural issues, ethical concerns, or political risk.
Analyse how location decisions affect business competitiveness
Impacts costs, access to markets, labor availability, and logistics.
Analyse the impact of poor communication on business efficiency.
Leads to misunderstandings, lower productivity, and reduced employee motivation.
Analyse why a profitable business may still fail.
Poor cash flow management can prevent payment of short-term liabilities.
Analyse the importance of branding in competitive markets.
Builds customer loyalty, differentiation, and allows premium pricing.
Analyse how stakeholder conflict can arise when a business pursues profit maximization.
Higher profits may lead to cost-cutting, negatively affecting employees, customers, or the environment.
Evaluate the importance of contingency planning in operations management.
Helps firms respond to crises but may increase planning costs.
Evaluate the importance of strong industrial relations for long-term business success.
Reduces conflict, improves trust, and increases productivity, but may increase labor costs.
Define break-even and explain how to calculate the break-even point (in units).
Break-even = where total revenue = total costs (profit = 0)
Break-even output (units) = Fixed Costs ÷ (Selling Price − Variable Cost per unit)
Evaluate whether international marketing strategies should be standardized or adapted.
Depends on culture, costs, legal constraints, and consumer preferences.
Evaluate whether maximizing shareholder value should always be a firm’s main objective.
Depends on long-term sustainability, ethical concerns, and stakeholder expectations.