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In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales - VCE - SSCE Business Management - Question 1 - 2012 - Paper 1
Question 1
In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales. Currently these four organisat... show full transcript
Worked Solution & Example Answer:In the chocolate industry, four large-scale organisations dominate the market, collectively accounting for 92% of all chocolate sales - VCE - SSCE Business Management - Question 1 - 2012 - Paper 1
Step 1
Step 2
c. Identify and justify two performance indicators that Websters could use to measure the success of the business's change in focus.
Answer
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Customer Satisfaction Rate: Measuring customer feedback through surveys can provide insights into how the quality shift impacts customer perceptions. Increased satisfaction would justify the focus on quality.
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Product Defect Rate: Tracking the number of defects or returns reflects the quality of the production. A decrease in defects over time would indicate improvement and success in the quality shift.
Step 3
d. Describe and justify one management practice or process from each of the three phases of the employment cycle that could apply to Websters as it changes its focus to compete on quality.
Answer
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Recruitment Phase: Implementing a rigorous selection process focusing on quality-oriented skill sets to attract talent who prioritize quality.
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Training Phase: Offering comprehensive training on quality management practices to enhance employee proficiency in delivering high standards.
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Performance Management Phase: Establishing a performance appraisal system that emphasizes quality achievements and incorporates quality metrics into employee evaluations.
Step 4
e. Describe one difference between the operations management of a manufacturing organisation, such as Websters, and a service organisation.
Answer
The primary difference is that manufacturing organisations deal with tangible products that can be stored and inventoried, while service organisations provide intangible services that are consumed at the time of delivery and cannot be stored.
Step 5
f. Analyse the ethical and social responsibility issues associated with the two options (as stated on page 2) that Mr Webster is considering to develop the capabilities of the staff.
Answer
Investing in staff development (option one) addresses ethical responsibility by enhancing employee skills and potential, contributing to job satisfaction and morale. Conversely, investing in high-tech equipment (option two) raises concerns about possible job displacement and the social responsibility of ensuring staff are not negatively impacted by technological advancements.