Business Operations Strategies Essay

Cost Leadership-Cost Leadership is a path of get a competitive advantage by finding the to the highest degree efficient panache of manufacturing the levelheaded or delivering the aid in the indus humble. A cost leadership strategy is where a ancestry aims to be the last cost manufacturer within its industry. Low cost grass be achieved by economies of scale in harvest-timeion and distribution, access to cheaper raw materials or inventing an innovative way of producing a harvest.Visibility-Operations good deal be governd with something such(prenominal) as what they bunghole see from the trading trading operations in action. Service ground artes bequeathing have a higher found level of visibility, eyepatch guests forget r arly see the operations process of a manufacturing based business. The implications for operations of a highly visible operations process ar that the feeling of labour will be signifi contributet. Operations will in general need to have sa nitary trained, highly skilled, adapt competent staff that argon able and willing to deal with the individual needs of clients. A end relationship with human resource will be essential. Speed is overly a crucial operator in operations as clients ordinarily have a much lower tolerance for delay. Short duration lags argon crucial in operations between the customer ordination and the deli actually. Otherwise the customer may get sick of waiting and expire onto a competitor.Overheard costs-This refers to the ongoing expenses of an operating business. belt expenses are all costs on the income statement except for direct labour, direct materials & direct expenses. Overhead expenses include accounting fees, advertising, depreciation, insurance, interest, legal fees, rent, repairs, supplies, taxes, telephone bills, travel and utilities costs. Over-head costs give the gate be classes under four titles such as Functional classification, mixture on the nature of expenditure Elem ent-wise classification and Classification on demeanor of expenditure. worldwideisation-Gives the consumer the opportunity to purchase fruits from the business will provide them with the best economic apprize for money. Globalisation is the integration of different national economies into a single mart where goods and assistants can be traded easily. This can increase the flow of goods, services, people, finance, and teaching around the world. It refers to the increasingly worldwide relationships of culture, people, and economic action mechanism.Cost Based Competition-A business can musical accompaniment it competitive edge by structuring a cost based competition with opposite businesses. A business can gain price advantage over its competitors by using in operation(p) strategies that lower costs. In this approach a business can conquer its prices lower than its rivals. This should increase the profit of sales and market share.Supply compass ManagementThe supply fibril management includes all the businesses directly coupled to one another to supply goods and services to one another. This is characterful in way of a business being able to consume sundry(a) resources necessary to produce a good or supply a service. Good suppliers are to be found that can provide good inputs with the best price and reli cleverness.TechnologyTechnology is the equipment and knowledge that are forthcoming to help businesses perform certain functions or fake products. Technology is in truth Copernican and actually crucial in businesses. The most significant bend is on businesses that fail to keep up with the progress in applied science by hanging onto equipment or operation methods where competitors have released new engineering giving them an advantage. Adapting new technologies may substantiate a business much competitive if the technology is widely adopted but it prevents the loss of competitiveness. regime based policies giving medication policies can be a very important influence on the operations functions of a business. They can wallop on the operations function include regulation, subsidies and grants, and taxes and tariffs that encourage or discourage flavours of operations or ways the operations functions are conducted.Corporate and Social rightCorporate social responsibility refers to the relationship between business and the kind caller and the way its relationship is perceived and managed. The focus of the responsibility is to check out the business activities have a positive impact on society and the stakeholders in the business. These days the community have high expectations about the deportment and the behaviour of a business.VolumeVolume is that amount of a product that is produced. Sometimes a business will be better slay producing more than what is needed to ensure they will have the products ready to be sold. This can work out to be cheaper in ways of getting the products made in bulk, this can be both conven ient for the vendee and the seller. An subject of this would be Dominos pizza. If they have their pizzas already made and cooked for people, it would be more convenient for them to just walk in and taint it groovy out of the oven rather than recounting the pizza and having to wait for the usual waiting period.Quality expectationsA business that is customer focussed will try to produce goods and services that will satisfy the desires of its customers. Customers always have their make idea of how a product should be and what quality it should be at. The business must keep their intentions in mind. An example of this would be at JB HIFI. A woman wants to corrupt a pair of ear phones. She enters the shop intending to debase a $20 headset but the shop does not have the product in her price range, the woman ends up disappointed and goes to another shop.Sequencing and schedulingThese are tools that are used to identify all steps in operations process and organise them into the most efficient way and order to complete. A key role of operations when scheduling and sequencing is to perform a detailed task analysis to determine the different dissipates of the stainless process of making a good or providing a service. there are many an(prenominal) factors come under scheduling and sequencing such as- What output and activities are used. When a particular activity will go. How long an activity will take to finish. What activities are independent and can therefore occur at the same time. What activities are related so that one can occur before the other What resources will be used and so onLegal RegulationsLegal regulations are a very important influence on any business. It impacts on the operations functions of a business. Legal regulations are laws that regulate the ways things can be done. They are also important because of the potentially dangerous aspects with the use of the equipment in the business. Each State Government Have legal regulations tha t govern the behaviour of the employer and the employee in the work place, it is a legal requirement to provide a safe working environment.LogisticsLogistics are a colossal part of the functions of a business. It is a crucial aspect of the supply chain management. Logistics is important because it can be part of a source of a competitive advantage if a business can do their logistics activities more cheaply than their competitors. An example of this would be when Woolworths spent billions of dollars on overhauling their entire distribution system. This is what gave them their competitive edge over Coles.E trafficThis is one of the fastest growing aspects of supply chain management. The term E-commerce refers to the use of the internet for all aspects of commercial transactions. An example of this would be EBay. This is a web order where you can buy and sell your own personal items. Businesses also use this site to sell their products too. This gives them a wider range to sell thei r products to all over the world.Global SourcingGlobal sourcing is important in the supply chain of management because businesses are increasingly seeking raw material and component parts wheresoever they are cheapest. purchasing and selling raw materials around the world is very useful in ways of saving money and making money. Buying raw materials from other countries may work out to be cheaper than to buy the products from the country the business is based at.OutsourcingOutsourcing is a very significant in the development in current business practises. It is a supply chain of management strategy that can provide very significant value to a business. Outsourcing is the term used when goods and services that would normally be part of the business are obtained outside of the business.InventoryInventory is an area of operations that is undergoing significant change. It is often called stock and refers to the store of transformed resources waiting to be processed. To have an inventory can be very useful in the case of having an impulse of buyers. Having the stock already produced and ready for sale will be convenient for both the buyer and the seller.Economies of Scale (EOS)This is when the managers of a business design a factory to conduct the transformation process. They have to make the decision as to the capacity volume. Economies of scale in other wrangle mean the expansion of a business to minimise costs through the use of high volume and production. An example of this would be Wal-Mart, they are a massive franchise and are expanding all over the world.Product preeminenceThe Product differentiation strategy and is a very different way of developing a competitive advantage. A product differentiation is touch with developing products that are different from their competitors because they have benefits or attributes a customer values. This means that customers will be willing to pay more for a differentiated product.VisibilityCustomers appreciate being able to see what they buy and try it out before they get the product. This is an approach of having good customer service from the staff showing off the product to the interested customer. An example of this is at Athletes foot. The customer enters the shop and immediately gets attended from staff. The staff will then assist the customer in trying and showing the customer what he/she is interested in.Customer ServiceCustomer serive is a massive part of running a successful business. With helpful staff that is able to assist you, this makes things much easier for the customer and will make them more willing to buy the product. So either way with this approach everybody wins depending on how well the customer service.FlexibilityWhen a business is manufacturing a product or delivering a service in a dynamic environment the ability to change is important. A business must have the ability to make changes to suit the changes to keep up its competitive edge and keep up with the game. Flexibili ty is important for every business because businesses can fall bunghole and lose track of what else is happening within other businesses.WarrantiesWarranties are very important to customers. Potential customers often find that a number of competing products will effectively meet their needs. This is to do with products such as cars and white goods such as refrigerators, televisions etc. Warranties become an important part of the consideration in the customers choice.SpeedSpeed is a major factor within running a successful business. Customers appreciate riotous service and prefer to be in and out of the shop as quick as possible. Speed refers to the time difference between a customers request for a good or a service to when it is actually received.ControlDependabilityDependability is an important performance intent for many businesses. It means that the business is consistently good in its quality and its performance. This is a key performance indicator for all businesses. Having a unafraid business will keep customers coming back for more, and will keep people talking about the reliability of the business.Environmental SustainabilityEnvironmental sustainability is a massive concern to both the wider world and the community and of what the business has of impact on the environment. It is the ability to maintain the qualities that are values in the physical environment. Climate chance, Water, Waste etc.Quality AssuranceQuality agency involves establishing and using a set of procedures and/or processes that will prevent product defects from occurring in delivering services.Global factorsThere are a number of global factors that influence operations strategies. They include global sourcing, economies of scale, scanning and fixing and look for and development. Global sourcing is where products are acquired outside the home country and are bought from afield for cheaper sales.Scanning and LearningThis is the competitive global environment within which many large businesses operate which is constantly ever-changing. Technology as an example is changing at a very fast rate. Businesses need to scan and learn off other businesses what is going on in the market of other businesses.