Business Studies HSC Operations

Summary:

The Business Studies HSC Operations note is a comprehensive guide to the Operations topic in Business Studies HSC. It covers the role of operations management and two strategic roles: cost leadership and good/service differentiation. Cost leadership is where a business aims to have the lowest cost of operations compared to competitors by achieving efficiency through various strategies such as economies of scale, technology, and cost control. Good/service differentiation refers to a business developing a unique product or service perceived as better or different from competitors. Three ways of achieving cost leadership through differentiation are through the physical appearance or styling of goods, providing adequate service at a minimum cost, and producing a good or service efficiently with maximum quality at a minimum cost. The note provides a comprehensive overview of operations management and its strategic role in achieving business success.

Excerpt:

Business Studies HSC Operations

OPERATIONS
Role of operations management
• strategic role of operations management – cost leadership, good/service differentiation

Cost leadership
– Where a business has the lowest cost of operations compared to its competitors.
– To achieve a low cost of operation, the business will attempt to achieve efficiency by using the least amount of input possible.
– Strategies to keep costs low: economies of scale, technology, control other costs and control production costs.

Good/service differentiation
– Refers to the differences between competing business products as consumers perceive.
– The business develops a good or service that is unique and that customers believe is better than or different to the products produced by competitors.
– 3 ways of aiming for cost leadership through differentiation are the physical appearance of the styling of goods, providing the customer with an adequate level of service at a minimum cost, and producing a good or service efficiency, that is, with a maximum quality at a minimum cost.

Goods and/or services in different industries
– Most businesses will produce a combination of goods and services.
– For E.g. although an airline may consider that it produces the service of transport, one of its outputs is particles of burnt fuel in the atmosphere