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Pasha Campbell is setting up a new business in Melbourne that will manufacture and sell furniture - VCE - SSCE Business Management - Question 2 - 2011 - Paper 1
Question 2
Pasha Campbell is setting up a new business in Melbourne that will manufacture and sell furniture. Evaluate two positive and two negative contributions of large-sca... show full transcript
Worked Solution & Example Answer:Pasha Campbell is setting up a new business in Melbourne that will manufacture and sell furniture - VCE - SSCE Business Management - Question 2 - 2011 - Paper 1
Step 1
Evaluate two positive and two negative contributions of large-scale operations to the economy.
Answer
Positive contributions of large-scale operations include:
- Job Creation: Large-scale operations provide numerous job opportunities for local communities, boosting employment rates and improving livelihoods. Jobs range from manufacturing to administrative positions.
- Economic Growth: These businesses contribute significantly to the local and national economy by increasing the Gross Domestic Product (GDP). Their production capabilities often result in a higher level of output and efficiency.
Negative contributions include:
- Environmental Impact: Large-scale operations can lead to significant negative environmental effects, such as pollution and depletion of natural resources.
- Market Dominance: They may engage in anti-competitive behaviors, leading to monopolies that can stifle competition and innovation.
Step 2
Explain each of the steps in this process.
Answer
The strategic planning process typically consists of five stages:
- Defining Objectives: Identify what the organization aims to achieve in the short and long term and assess the current market position.
- Analysis: Conduct a SWOT analysis to evaluate strengths, weaknesses, opportunities, and threats relevant to the organizational objectives.
- Strategy Development: Formulate strategies that leverage strengths to capitalize on opportunities and address weaknesses and threats.
- Implementation: Put the strategies into action, allocating necessary resources and assigning responsibilities.
- Evaluation and Control: Assess the effectiveness of the strategies and make adjustments as required.
Step 3
Identify, describe and justify a facilities design/layout strategy that Pasha could use for manufacturing the furniture.
Answer
A suitable layout strategy for Pasha's furniture manufacturing could be a Process Layout. This setup allows for flexibility and efficiency as it organizes equipment based on the processes required for the furniture production.
Justification:
- Flexibility: Process layouts support a variety of products, which is essential in furniture manufacturing due to the customizability of designs.
- Work Efficiency: This design uses a systematic approach to minimize movement during production, ensuring workers can operate efficiently.
Step 4
Discuss how ethical and socially responsible management practices aid each of these elements.
Answer
- Inputs: Ethical management practices ensure that resources are sourced responsibly, considering the environmental impact and fair labor practices.
- Processes: Implementing sustainable practices during production not only enhances the organization's image but also complies with ethical standards, leading to better community relationships.
- Outputs: By ensuring that the products produced meet quality and ethical standards, organizations can build trust with consumers and enhance brand reputation.
Step 5
Explain how the requirements of Occupational Health and Safety (OHS) and job security will need to be addressed by Pasha.
Answer
Pasha will need to implement robust OHS policies that focus on creating a safe working environment. This includes:
- Regular Training: Employees should receive training on safety practices and emergency procedures.
- Safety Equipment: Provision of necessary safety equipment to all employees.
- Job Security: Pasha should incorporate policies that promote job security through fair employment terms and conditions, including clear communication regarding roles and expectations. This can help reduce turnover and enhance team morale.
Step 6
Describe and justify two management skills, other than communication, that Pasha could use while establishing her business.
Answer
- Leadership Skills: Effective leadership is crucial for motivating and guiding employees toward achieving business objectives. Pasha can foster a positive work culture, improve team dynamics, and drive overall performance.
- Problem-Solving Skills: Being adept at identifying and resolving issues swiftly will enable Pasha to navigate challenges effectively, making informed decisions that positively impact her business operations.