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Paddy 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
Paddy Campbell is setting up a new business in Melbourne that will manufacture and sell furniture. (a) Evaluate two positive and two negative contributions of large... show full transcript
Worked Solution & Example Answer:Paddy 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
Large-scale operations can significantly contribute to economic growth by creating jobs and enhancing productivity.
Positive Contributions:
- Job Creation: Large-scale businesses often employ a substantial workforce, providing numerous job opportunities. This reduces unemployment rates and contributes to overall community welfare.
- Enhanced Productivity: These organizations benefit from economies of scale, allowing them to produce goods at a lower cost per unit, which can lead to lower prices for consumers and increased consumption.
Negative Contributions:
- Environmental Impact: Large-scale operations can lead to significant carbon emissions and resource depletion, adversely affecting the environment.
- Market Dominance: They may engage in anti-competitive practices, driving small businesses out of the market and reducing consumer choices.
Step 2
Explain each of the steps in this process.
Answer
The steps in the strategic planning process typically include:
- Define Objectives: Organizations must clarify what they want to achieve in terms of growth, profitability, or market reach. This often involves a SWOT analysis to assess strengths and weaknesses.
- Analyze Environment: Understanding both internal and external environments helps identify opportunities and threats, guiding the strategic direction.
- Develop Strategies: Based on the analysis, organizations formulate strategies to meet objectives, considering resources and constraints.
- Implement Strategies: This step involves putting the developed strategies into action, allocating resources accordingly.
- Evaluate Strategies: Finally, organizations must continuously monitor outcomes against objectives, making adjustments as necessary.
Step 3
Identify, describe and justify a facilities design and layout strategy that Paddy could use for manufacturing the furniture.
Answer
A recommended facilities design strategy for Paddy is the Process Layout. In this setup, equipment and workstations are arranged based on the sequence of operations, which is critical in furniture manufacturing where various components are assembled.
Justification: This layout enhances workflow efficiency, minimizes material handling time, and allows for customization of products. Since furniture production often requires a range of specialized tasks, this arrangement supports flexibility and a streamlined production process.
Step 4
Discuss how ethical and socially responsible management practices will affect each of these elements.
Answer
Ethical and socially responsible management practices influence the key elements of an operations management system:
- Inputs: Sourcing materials ethically ensures that suppliers adhere to labor laws and environmental standards. This can enhance the organization's reputation and marketability.
- Processes: Incorporating sustainable practices in production reduces waste and energy use. This could involve adopting technology that minimizes the carbon footprint.
- Outputs: Products designed with social responsibility in mind can lead to higher customer satisfaction and loyalty. Ethical branding could increase demand, resulting in a positive market impact.
Step 5
Explain how the requirements of Occupational Health and Safety (OHS) and job security will need to be addressed by Paddy.
Answer
Paddy must prioritize Occupational Health and Safety (OHS) by creating a safe workplace, which includes:
- Conducting regular assessments to identify hazards.
- Providing training sessions for employees on safety protocols.
Job security can be addressed by fostering a stable employment environment and implementing fair labor practices. Establishing clear communication regarding job roles and providing avenues for employee feedback will enhance trust and loyalty among staff.
Step 6
Describe and justify two management skills, other than communication, that Paddy could use while establishing her business.
Answer
Two essential management skills that Paddy could leverage are:
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Leadership: Effective leadership will guide her team toward shared goals, inspiring trust and motivation. This is crucial during the startup phase for maintaining morale and productivity.
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Problem-Solving: The ability to identify challenges and devise effective solutions will be vital in navigating the complexities of setting up a new business. This skill allows for quick adaptation to unexpected issues, ensuring stability and growth.