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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
Define 'market share'.
Answer
Market share is the percentage of the total users of a good or service held by a business. It is quantified as a percentage of total sales within a specific market context. For Websters, market share signifies how much of the chocolate market it controls relative to its competitors.
Step 2
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: Measuring customer satisfaction will help Websters assess the effectiveness of its quality improvements. High satisfaction scores indicate that the changes are positively impacting customer perceptions.
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Production Efficiency: Tracking production efficiency metrics, such as output per labor hour or reduction in waste rates, will provide insights into how effectively the new processes and equipment are enhancing productivity.
Step 3
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 competency-based recruitment process will ensure that new hires possess the necessary skills to contribute to quality management.
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Development Phase: Establishing a continuous training program aimed at enhancing employees' skills in quality control and operational efficiency will align workforce capabilities with quality goals.
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Separation Phase: Conducting exit interviews to gather information from departing employees about quality-related issues can provide valuable feedback for future improvements.
Step 4
Describe one difference between the operations management of a manufacturing organisation, such as Websters, and a service organisation.
Answer
In a manufacturing organisation, operations management focuses on the production and quality of tangible goods, involving processes like inventory management and production scheduling. In contrast, a service organisation emphasizes the delivery of intangible services, concentrating on aspects like customer interaction and service satisfaction.
Step 5
Analyse the ethical and social responsibility issues associated with the two options that Mr Webster is considering to develop the capabilities of the staff.
Answer
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Improving Current Staff Capabilities: While enhancing existing employees' skills promotes job security and corporate responsibility, it may neglect those who cannot adapt, leading to ethical concerns about fairness.
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Purchasing State-of-the-art Equipment: Investing in advanced technology could lead to job losses, raising ethical questions about the balance between efficiency and human employment. However, it may also foster long-term sustainability and reduced carbon footprints, aligning with social responsibility.