AS Operations

1. AS Operations

2. Understanding Operational Objectives What do we mean by “Operations Management”? Using all of the following terms, construct a definition: Goods and Services Cost Distribute Efficient Process Produce Time Resources

3. Learning Outcomes By the end of the lesson you will be able to… - analyse five operational objectives - apply understanding to airlines

4. Key Operational Objectives Watch the video by clicking on the logo and consider: What sort of objectives may a business such as Cadbury’s have in terms of its Operations? • Cost • Volume • Quality • Time • Flexibility • Environmental e.g H&M

5. Understanding Operational Objectives How may the operational objectives of the following two companies differ? Using the headings from the previous slide, explain the objectives that each may set.

6. Innovation • What is innovation and why is it important? • Search for an example of successful innovation in practice. • Explain how your example could lead to long term survival and growth for the business involved.

7. Discussion Points • Why is it important for a business to set objectives in each of these areas? • How could they contribute to a corporate objective of profit maximisation? • Which has the potentially biggest impact on profits in your opinion?

8. Review Questions To what extent are environmental objectives the most important to British Airways? (14 marks)

9. Influences on Organisational Objectives How may this scenario affect the operational objectives of a business? The availability of which other resources may also affect operational objectives?

10. Influences on Operational Objectives We have identified that availability of resources could affect operational objectives, but what else could? • Nature of the product (e.g BMW vs. Fiat) • Demand • Competitors behaviour

11. In pairs, choose two of these organisations to focus on. • Describe 4 operational objectives they may have. • Explain specific influences which may affect these objectives • Assess which of the two businesses is most susceptible to these influences, justifying your choice. Concordia The Lal Qila ASDA Wilkinsons

12. Achieving the Objectives: Operational Strategies The first category of strategy is scale Key terms to discuss and define: • Internal vs External growth • Economies of Scale • Diseconomies of Scale

13. Optimum Output Mix What happens to unit cost when economies or diseconomies occur? Cost per unit Economies of scale are outweighing diseconomies Diseconomies of scale are outweighing economies Lowest cost production Output Ideal level of output

14. Research Task + Home Learning Business Link would like you to produce a new fact sheet for their website. This sheet should advise businesses of the benefits and drawbacks of growth; more specifically, economies and diseconomies of scale. This guide should explain the following economies: • Bulk-buying (purchasing) • Technical • Specialisation And the following diseconomies: • Poor employee motivation • Poor communication • Poor managerial coordination Finally, the guide should advise managers on avoiding or minimising diseconomies.