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Globalisation: 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 outputs
2. variation is required for different cultures, so operations must adapt to produce more variety through the transformation process for example
3. 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 resources

Technology: -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 tax

Legal 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 health

Cost-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 output

Quality 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.

	Criado por shaycrystal4 mais de 10 anos atrás

	Copiado para Nota por shaycrystal4 mais de 10 anos atrás

Business Studies (Operations) Notas sobre Influences - created from Mind Map, criado por shaycrystal4 em 04-02-2014.