Thought for the day:

1. Thought for the day:

2. OperationsInfluences on Operations Management

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

5. Starter: Brainstorm influences on business operations .

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

7. What is Globalisation? • 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

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

9. 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 Factors Behind The Rapid Expansion of Global Trade

10. Import Export Take out of the country • Bring in to the country

11. Exchange Rates Australia dollar strong 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.. • 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)

12. Activity In groups of four. Q 1 - 4 A3 Sheets = Currency (first half of sheet) • Define • Explain

13. 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’

14. 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

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

16. 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.

17. 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

19. Activity • 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 • Define • Explain

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

21. Activity 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 • Discuss • Explain