Influences - created from Mind Map

  GET (a) GL(o)C (or) QCGlobalisation: the process whereby, economies around the world are moving 'closer together' because barriers like protectionist policies and natural obstacles like distance and language are being reduced through technology and transport.-Impact on inputs: 1&2. Cheaper materials/labour from overseas may influence what inputs the business chooses and where it might allocate its factories-Impact on outputs: 1. potential to access new markets by selling overseas, resulting in an increase in the quality of outputs2. variation is required for different cultures, so operations must adapt to produce more variety through the transformation process for example3. more likely to face more competition, so operations must find ways to reduce costs/ create special variations of their products.Environmental sustainability:Awareness of the possible negative affects that business can have on the environment has led to the need for businesses to be environmentally sustainable (ecological sustainability).-Two main aspects of environmental sustainability:   -the sustainable use of renewable source so they can be used in the future   -a reduction in the use of non-renewable resourcesTechnology: -On an administration level, technologies like Critical Path Analysis assist with organisation, planning and decision making.-On a processing level: technology is used in manufacturing, logistics and distribution, quality management, all aspects of inventory management, supply-chain management and sourcing.-e.g. Woolworths has a system called 'StockSmart' that forecasts when stock must be replenished in their distribution centres.Government policies: Important government policies: interest rates, tax policy, government spending & competition policies.Changes in policies affect economic and social conditions. This influences operations as it must focus on their types of inputs and the nature and quality of their outputs. -e.g. Carbon Tax means operations will have to find ways to produce less carbon so they pay less carbon taxLegal regulation: Particular laws influence how practices and processes are conducted.-the operations functions include: transformation, value adding using labour, technology, finance, machinery and energy. -the laws for labour, environment and public health include:    -WHS   -training and development    -fair work and anti-discrimmination   -environmental protection   -public healthCost-based competition: -Break even point is determined (where total costs = total revenue), the business then tries to reduce costs to gain a competitive advantage.-C-bc recognises that prices cannot keep rising, so reducing costs is the a good way to maximise profits when revenues are fixed. -e.g. achieve economies of scale, buy bulk inputs, use automated production systems, eliminate waste, produce high volume outputQuality expectations: -Quality: how well design, made and functional goods are, and the overall degree of competence with which services are organised and delivered.-Quality expectations:   -influence the methods employed in operations management such as, material used and whether human labour machines are used.  -Are determined by corporate strategy, external factors such as customer attitudes and government regulations. 

Corporate social responsibility (CSR)-The open and accountable business actions based on respect for people, society and the broader environment (not just focusing on profitability).-this influences the business as it must find ways to make products without causing issues such as noise levels, waste management and pollution-if businesses are socially irresponsible, it may gain a negative reputation and profitability may suffer.-case study: A Brave New World Video/ Case study handout. -The difference between legal compliance and ethical responsibility-Legal compliance requires that a business follows the letter of the law-Ethical responsibility sees businesses meeting all of their legal obligations and taking it further by following the intention and 'spirit' of the law.-e.g. a business may decide to buy resources from a country abusing human rights. If it fills out the paperwork and observes proper procedures, it will be legally compliant, although people may refuse to buy their products as they may see this as an unethical act on the basis that it helps a dictorial government. -Environmental sustainability and social responsibility

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