Flashcards
3.4.1 Setting operational objectives
Cards in this deck (13)
- 1Objective:*a quantifiable target which helps to coordinate activities
- 2Objectives Must Be:S.M.A.R.T
- 3Purpose of Objective:-help guide employees/motivate them
- give a sense of direction
-greater co-ordination of resources - 4External Influences:-Market factors: Growing market?
-Competitors actions and performance
-Economic factors
-Political factors: e.g. making cars more energy efficient as forced to - 5Internal Influences:-Corporate objectives: all work together and not go against mission
-Finance: available to use
-Human resources: available to use and limitations of
-Nature of product - 6Examples:-Costs
-Quality
-Speed of response & flexibility
-Dependability
-Environmental objectives
-Added value
-Efficiency - 7Costs:-reducing unit costs: lower enables them to charge a lower price or to enjoy higher profit margin
-reducing fixed costs: e.g. two premises on the high street
-reducing variable costs per unit: cheaper suppliers/manufacturers
*To improve sales= increase sales OR reduce costs - 8Quality:*features of a product/service that allow it to satisfy customers
-customer satisfaction ratings: quantitative/qualitative review on quality
-customer complaints: could damage reputation
-scrap rate: track production process to show if efficient (scrap is wasted money as it increases unit costs)
-punctuality: better punctuality, higher customer satisfaction
*Punctuality (%)=
(deliveries on times / total deliveries) x 100 - 9Speed of Responses/Flexibility:could be important as it makes them competitive e.g. Zara having a two week turn around to get from design to product sold on shop floor -> flexibility
- 10Dependability:-delivery dates are accurate and keeping customers informed of any changes e.g. Amazon
-extensive testing e.g. Dyson - 11Environmental Objectives:-reducing waste
-reducing carbon footprint
-minimising waste products/materials
-increase recycling
-self-sufficiency in energy use - 12Added Value:*USP gives product extra value
-increased spending on R&D
-achieving a certain number of patents
-developing a particular innovation e.g. google glasses - 13Efficiency:aim to make better use of resources in order to reduce costs and increase profits
-improving productivity
-increasing capacity utilisation
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- A level Business Studies (3.4: Decision making to improve operational performance) Flashcards on 3.4.1 Setting operational objectives, created by Ashleigh-Jade Jones on 23/05/2017.
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- Ashleigh-Jade Jones
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