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Analyse the effect of globalisation on operations management. - HSC - SSCE Business Studies - Question 27 - 2017 - Paper 1
Question 27
Analyse the effect of globalisation on operations management.
Worked Solution & Example Answer:Analyse the effect of globalisation on operations management. - HSC - SSCE Business Studies - Question 27 - 2017 - Paper 1
Step 1
Role of Operations Management
Answer
Operations management plays a crucial role in maximizing efficiency, minimizing costs, and ensuring quality in products and services. In a globalized economy, businesses must adapt their operations to different markets while maintaining cost leadership and delivering differentiated goods/services.
The strategic role includes managing operations across borders, overseeing production processes, and integrating supply chains globally.
Step 2
Global Factors
Answer
Globalisation influences operations management through factors such as:
- Global Sourcing: Companies can source raw materials and components from different countries, enabling them to reduce costs and access quality inputs.
- Economies of Scale: Global operations allow firms to achieve economies of scale, lowering per-unit costs due to increased production levels.
- Technological Innovation: Businesses leverage technological advancements to streamline operations, enhancing productivity across multiple regions.
Step 3
Interdependence with Other Functions
Answer
Operations management is interdependent with other key business functions such as marketing, finance, and supply chain management. This interrelation ensures that operations align with the overall strategy of the business, facilitating effective decision-making and resource allocation across global markets.
Step 4
Case Studies and Examples
Answer
Relevant case studies could include multinational companies like Apple, which sources components from various countries while maintaining stringent quality standards, and Toyota, known for its global supply chain efficiency and lean production practices. Such examples illustrate how globalisation impacts operational strategies and decision-making.