There are two primary distinctions between these categories of organizations. As such, this will contribute to the success of the business. Legal compliance is when the business decides to go further than the requirements of legislation, however this often much more expensive for the business.
Given that the main goal of business is to generate maximum profit, it is easy to see why many businesses opt for the lowest level of compliance permissible, therefore pay he lowest costs possible. It has resulted in a rapid increase in the volume of trade, capital, financial resources and labor that flows between countries.
Government decisions affect the business rules and regulations, which directly affects the management of various key business functions. This means that the corporate decision-making is not Just simply about profitability but rather something that reflects on the community concerns and social expectations.
A very significant external factor that affects operations function of a business is that of laws and regulations. Service organizations, on the other hand, produce intangible products that cannot be produced ahead of time.
One of the main influences on operations management is globalisation. Conversely, at a processing level, technologies that apple uses in manufacturing assist with logistics, distribution, quality, inventory management and sourcing.
Consider a pharmaceutical company such as Merck.
As a result, it is important to understand how to manage both service and manufacturing operations. These include achieve economies of scale, bulk buy inputs, eliminate waste, produce standardized products for large markets, produce high volume output and use automated production systems.
Technology - The machinery, equipment and devices developed through innovation. This is where compliance costs come from. The marketing function of Merck is responsible for promoting new pharmaceuticals to target customers and bringing customer feedback to the organization.
Cost-based competition - blah blah blah supply chain management, outsourcing, economies of scale really can do most of the strategies in the syllabus for this if you think about it All influences and the strategies which are implemented in response can work to give the business a competitive advantage, cost advantage, etc.
It also involves businesses doing more than Just complying with the laws and regulations. Integration means joining together through trade, deregulation and technology.
In competing businesses, the action of competitors can have a huge impact on operations management. Because operations management is a management function, it involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services.
The second effect is the threats and opportunities influences present.
These businesses have low customer contact and are capital intensive. Last edited by Examine; 23 Nov at 9: First, manufacturing organizations produce a physical or tangible product that can be stored in inventory before it is needed by the customer.
Figure Organizational chart Operations management OM is the business function responsible for managing the process of creation of goods and services.Operations management (OM) is the business function responsible for managing the process of creation of goods and services.
It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services. The objectives that are set for the operations function of a business are affected by a variety of internal and external influences, as summarised below: tutor2u Subjects Events Job board Shop Company Support Main menu.
Business Studies Influences on Operations Function Words | 6 Pages. Business Studies Essay; Explain how the influences on operations can affect the management of the operations function. Business Studies Influences on Operations Function Essay Many businesses now have established a global web strategy where different elements of the key business functions are conducted.
This form of outsourcing not only. Nov 23, · Re: influences on operations function and strategies implemented in response Originally Posted by saally_ Some influences are different currencies, trade agreements, cultures, technology, robotics, CAD and CAM. Business Studies in Action value pack that suits your needs, Influences on operations management 3.
Operations processes 4. Operations strategies Wotif case study Influences in the business environment 4. Business growth and decline TOPIC 2 BUSINESS MANAGEMENT 5. The nature of management.Download