Thought for the day:

Operations Influences on Operations Management

Get an A Knowledge Application & Analysis Evaluation A Grade Understand Define, Clarify, describe, extract, identify, outline, recall, recount, state summarie Compare, Contrast, distinguish,, construct, calculate, explain. Apply, Examine, Analyse, Interpret, Formulate. To what extent, Evaluate, discuss, justify, advise, recommend. Band 6 Band 5 Band 4 Band 2/3 Show a video… get students to anser tr cross off what covered in pyramid

Target Learning ObjectiveWho?Keywords  Understand the influences on Operations: globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation and environmental sustainability And define corporate social responsibility ALL D/C Band 3/4  Explain the the difference between legal compliance and ethical responsibility MOST B/C Band 5  SOME A Band 6

Starter: Brainstorm influences on business operations.

Influences globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation and environmental sustainability  Knowledge

It is the increasing integration of the international economy The Economist described it as the “The Death of Distance” Deregulation of world product, capital and labour markets designed to increase financial and factor mobility and movement of goods and services Globalisation involves fundamental changes in economic geography – including the spatial division of different stages of production – The geographical separation of manufacturing from research and development – The expansion of “global sourcing” Increased specialisation in particular goods and services and faster shifts in the balance of comparative economic advantage A reduction in the economic power of governments – e.g. to raise taxes? Greater global economic interdependence What is Globalisation?

Activity  Define  Explain questions. In pairs answer the questions 25 mins A3 = Globalisation

Factors Behind The Rapid Expansion of Global Trade Fall in Sea Transport Costs Declining Air Freight Costs Fall in communications costs Decline in tariff and non-tariff restrictions Rising Real Living Standards Liberalisation of Domestic Markets

Import Bring in to the country Export Take out of the country

Exchange Rates Australia dollar strong AUSD$1 = SING$2 So if Australia wants to sell for AUD$20 (to make $10 profit) will have to sell for… SING$40 If AUD keeps getting more expensive then will have to increase selling price (to maintain profit margin) Australian dollar weak AUSD$2 = SING$1 So if Australia wants to sell for AUD$20 (to make $10 profit) will have to sell for… SING$10 If AUD keeps getting weaker.. Can be cheaper..

Activity  Define  Explain In groups of four. Q A3 Sheets = Currency (first half of sheet)

Country Gains from Trade The limits to specialisation and trade Other reasons for gains from trade – decreasing costs – differences in demand – increased competition – trade as an ‘ engine of growth ’

Arguments for Restricting Trade Methods of restricting trade – tariffs – quotas – administrative barriers – other Arguments for restricting trade – infant industry argument – changing comparative advantage – to prevent dumping – to prevent establishment of a foreign-based monopoly – to spread risks – externalities – pursuing national interests (but against world interests) exploiting monopoly power protecting declining industries – non-economic arguments

Activity  Define  Explain In groups of four. Q 5 – 8 A3 Sheets = second half of sheet (trade)

Technology a very important role in the application of the operations function of business. Technology may be defined as the design, construction and/ or application of innovative devices, methods and machinery upon operations processes. Think: Mobile phones, laptop computers, desktop computers, gaming consoles, security devices Such technologies enable people to communicate more easily and enable improved processes. In this way, technology can be seen to be both a range of devices as well as a range of enabling processes.

Technology in operations Technologies can be applied to, and integrated with, the range of processes that characterise the operations function in business. At an administrative level, technology assist with organisation, planning and decision making and are in control of operational processes. At a processing level, technologies are used in manufacturing, logistics and distribution, quality management, all aspects of inventory management, supply chain management and sourcing. See Table 2.1

Target Learning ObjectiveWho?Keywords  Understand the influences on Operations: quality expectations, cost-based competition, government policies, legal regulation and environmental sustainability And define corporate social responsibility ALL D/C Band 3/4  Explain the the difference between legal compliance and ethical responsibility MOST B/C Band 5  Complete extended questions SOME A Band 6

Activity  Define  Explain In Groups… Pull out five main points for your topic – how it influences operations. Write on the A3 Paper. 5 mins Swap tables… add to the paper ….. Now return to each table and note all the main points. (6 tables = 2 of each) Quality & Cost – Based competition Government Policies & Legal regulations Environmental & CSR

Activity  Define  Explain ….. Now return to each table and note all the main points. Under each heading Quality Cost – Based competition Government Policies Legal regulations Environmental CSR

Activity  Discuss  Explain Explain the the difference between legal compliance and ethical responsibility ‘Business must act in a socially responsible and ethical manner because current legislation is inadequate… discuss