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‘During a period of business change, all managers will end up using high-risk strategies some of the time.’ Evaluate this statement with reference to a contemporary business case study - VCE - SSCE Business Management - Question 5 - 2022 - Paper 1
Question 5
‘During a period of business change, all managers will end up using high-risk strategies some of the time.’ Evaluate this statement with reference to a contemporary ... show full transcript
Worked Solution & Example Answer:‘During a period of business change, all managers will end up using high-risk strategies some of the time.’ Evaluate this statement with reference to a contemporary business case study - VCE - SSCE Business Management - Question 5 - 2022 - Paper 1
Step 1
Evaluate the statement: 'During a period of business change, all managers will end up using high-risk strategies some of the time.'
Answer
In evaluating this statement, it's important to consider the context of business transformation, where the need for rapid decision-making may indeed lead managers to adopt high-risk strategies.
For instance, one example can be found in the retail sector, such as Aldi, which stated that by 2025, it would remove a significant portion of packaging to streamline its operations.
This strategy illustrates the potential for high-risk decisions; while it aims to improve efficiency and appeal to environmentally-conscious consumers, there is a risk that such aggressive timelines could pressure employees and lead to operational challenges if the necessary adaptations are not made efficiently.
Furthermore, these high-risk strategies may create a culture of fear among employees, where they may perceive dire consequences if they question management decisions.
Thus, while it's not universally true that all managers must resort to high-risk strategies, the pressure of significant change can lead many to make risky choices in pursuit of business goals.
Step 2
Explain how two of the following strategies could be used to improve the efficiency of operations by Blartem Clothing: automated production lines.
Answer
Automated production lines can significantly enhance efficiency by streamlining the manufacturing process. This technology allows for faster production rates, consistent quality, and reduced labor costs. For Blartem Clothing, implementing automated lines could mean quicker turnaround times in producing their new range of activewear, minimizing human error and maximizing output during periods of high demand.
Step 3
Explain how two of the following strategies could be used to improve the efficiency of operations by Blartem Clothing: master production schedule.
Answer
A master production schedule (MPS) helps plan and control the manufacturing processes by specifying when products will be manufactured and in what quantities. For Blartem Clothing, an effective MPS ensures that resources are allocated efficiently, production meets demand, and bottlenecks are minimized, thereby enhancing the overall efficiency of operations as they transition to their new product line.