Essay 1- Explain the impact of 2 influences on the strategic role of operations.
Introduction
The strategic role of operations is how the key business functions work interdependently to achieve the business’s goal such as profit maximisation which involves the use of cost leadership where you have the lowest cost of production than competitors in the market, creating a competitive advantage and product differentiation where goods and services from a business are changed in order to stand out and attract more customers in a market. To an extent the strategic role of operations is impacted by operation influences as it can hinder or enhance a business’s capabilities in achieving its business goals and the effectiveness of its cost leadership and what changes are used in product differentiation.
This is exemplified through quality expectations, which requires higher effort from the 4 key business functions to execute, as failure to do so can lead to the compromise of the business’s goal and reducing its effectiveness of cost leadership or product differentiation. Corporate social responsibility determines what needs to be internally done within the business to ensure legal compliance and ethical responsibility of the business as neglecting it can lead to further compromise of the business’s goals and operations management. McDonalds the world’s leading food service organisation and global outdoor, lifestyle and sports company Kathmandu are businesses that respectively demonstrate to an extent how operation influences impact the strategic role of operations.
Quality Expectations
Quality expectations refers to how well designed, made, and functional goods are and how well services are organised and delivered. Quality expectations to an extent impacts the strategic role of operations as it can affect the attainability of cost leadership and affects how product differentiation is approached by the business. It impacts cost leadership as depending on the design, material and functionality of the good, and the delivery and organisation of thee service it will influence the technology and human resources that is required to manufacture the product, whether or not economies of scale and standardisation can be achieved for the product as it depends on how expensive the production cost is and how much waste can be minimised in the production process and overall affects profit maximisation for the business. Furthermore, product differentiation is also impacted by quality expectations as it effects how the business approaches product differentiation as it can determine what changes and features can be applied to the good/service in which can lead to profit maximisation. For goods it’s based on the design quality of the product, durability and how fit for purpose the good is; for services it depends on the level of professionalism of the service, reliability, and level of customisation. In conclusion quality expectation to an extent impacts the strategic role of operations through affecting cost leadership by influencing how attainable it can be achieved and affecting product differentiation as it determines what features and changes can be applied to the product based on factors such as design quality and reliability.
Corporate Social Responsibility
Corporate social responsibility is where a business goes beyond their legal compliance cost and becomes accountable for their actions as well as partaking in social, environmental and ethical activities. Corporate social responsibility to an extent impacts the strategic role of operations in how cost leadership can be achieved and what features and changes can be applied in product differentiation. This leads to the cause and effect corporate social responsibility has on cost leadership as it causes businesses to be more aware of their actions and practices as a result they apply that to their production of products which leads to waste minimisation and lean production. Furthermore it affects product differentiation as with businesses being more responsible and aware of their actions it can lead to features and changes to the product to be more environmental and ethical. In conclusion corporate social responsibility to an extent impacts the strategic role of operations by influencing what actions a business can use to achieve cost leadership and how product differentiation is more focused on changes and features that are more ethical and environmental.
McDonalds and Kathmandu
McDonald demonstrates how quality expectations affects the strategic role of operations through how McDonalds incorporates feedback in order to differentiate a product based on quality expectations and it indirectly affecting its cost leadership whereas Kathmandu demonstrates how corporate social responsibility impacts the strategic role of operations through how the business incorporates lean production to reduce production costs which affects it’s cost leadership as well as affecting how it differentiates its products to be more environmentally friendly. McDonalds in 2011 received negative feedback on their coffee due to it not reaching quality expectations from customers which resulted in McDonalds changing the coffee in order to meet expectations of the customer which resulted in them selling 220 cups of coffee per year. This showcases the affect quality expectations has on product differentiation in a practical sense as due to the negative feedback surrounding the quality of the coffee, caused the coffee to differentiate into an enhanced version of itself which in turn indirectly affects cost leadership as a change in the product will lead to a change in the production of the product leading to a change in production cost which affect cost leadership. Kathmandu recycles 9.3 million bottles into gear hence displays how corporate social responsibility impacts the strategic role of operations as by utilising recycled materials into the production of goods it leads to lean production as it minimises more waste thus reducing production costs which in turn impact cost leadership and make it more effective. Furthermore, this impacts product differentiation as Kathmandu is changing the quality of their products to be more environmental and thus making itself different from other businesses in the market. In conclusion from the 2 business, it demonstrates how quality expectations and corporate social responsibility to an extent impact strategic role of operations as it can affect the effectiveness of cost leadership as well as changes are used in product differentiation.
Conclusion
In conclusion, to an extent the strategic role of operations is impacted by operation influences such as quality expectations and corporate social responsibility as it can influence the effectiveness of cost leadership and what changes are used in product differentiation. Quality expectations can impact the effectiveness of cost leadership as it can influence the costs and requirements for the production a product depending on the design, how well made it is, functionality of a good and the professionalism required and reliability of a service and influence product differentiation through determining what changes and feature will be added to a product. This is evident by McDonalds altering how effective their cost leadership and due to changing the production of their coffee after receiving negative feedback on it in 2011 and using that feedback based on quality expectations as a consideration when changing their coffee. Corporate social responsibility impacts cost leadership as it can lead to waste minimisation and lean production as businesses are more conscious of how their actions affect society, and affects product differentiation as products will be changed to be more environmentally friendly as evident by Kathmandu recycling 9.3 million bottles into gear as not only does this result in a more effective cost leadership due to waste minimisation and lean production being achieved through recycling bottles it leads to product differentiation as the gear produced by Kathmandu is environmentally friendly due to being made of recyclables.
Introduction
The strategic role of operations is how the key business functions work interdependently to achieve the business’s goal such as profit maximisation which involves the use of cost leadership where you have the lowest cost of production than competitors in the market, creating a competitive advantage and product differentiation where goods and services from a business are changed in order to stand out and attract more customers in a market. To an extent the strategic role of operations is impacted by operation influences as it can hinder or enhance a business’s capabilities in achieving its business goals and the effectiveness of its cost leadership and what changes are used in product differentiation.
This is exemplified through quality expectations, which requires higher effort from the 4 key business functions to execute, as failure to do so can lead to the compromise of the business’s goal and reducing its effectiveness of cost leadership or product differentiation. Corporate social responsibility determines what needs to be internally done within the business to ensure legal compliance and ethical responsibility of the business as neglecting it can lead to further compromise of the business’s goals and operations management. McDonalds the world’s leading food service organisation and global outdoor, lifestyle and sports company Kathmandu are businesses that respectively demonstrate to an extent how operation influences impact the strategic role of operations.
Quality Expectations
Quality expectations refers to how well designed, made, and functional goods are and how well services are organised and delivered. Quality expectations to an extent impacts the strategic role of operations as it can affect the attainability of cost leadership and affects how product differentiation is approached by the business. It impacts cost leadership as depending on the design, material and functionality of the good, and the delivery and organisation of thee service it will influence the technology and human resources that is required to manufacture the product, whether or not economies of scale and standardisation can be achieved for the product as it depends on how expensive the production cost is and how much waste can be minimised in the production process and overall affects profit maximisation for the business. Furthermore, product differentiation is also impacted by quality expectations as it effects how the business approaches product differentiation as it can determine what changes and features can be applied to the good/service in which can lead to profit maximisation. For goods it’s based on the design quality of the product, durability and how fit for purpose the good is; for services it depends on the level of professionalism of the service, reliability, and level of customisation. In conclusion quality expectation to an extent impacts the strategic role of operations through affecting cost leadership by influencing how attainable it can be achieved and affecting product differentiation as it determines what features and changes can be applied to the product based on factors such as design quality and reliability.
Corporate Social Responsibility
Corporate social responsibility is where a business goes beyond their legal compliance cost and becomes accountable for their actions as well as partaking in social, environmental and ethical activities. Corporate social responsibility to an extent impacts the strategic role of operations in how cost leadership can be achieved and what features and changes can be applied in product differentiation. This leads to the cause and effect corporate social responsibility has on cost leadership as it causes businesses to be more aware of their actions and practices as a result they apply that to their production of products which leads to waste minimisation and lean production. Furthermore it affects product differentiation as with businesses being more responsible and aware of their actions it can lead to features and changes to the product to be more environmental and ethical. In conclusion corporate social responsibility to an extent impacts the strategic role of operations by influencing what actions a business can use to achieve cost leadership and how product differentiation is more focused on changes and features that are more ethical and environmental.
McDonalds and Kathmandu
McDonald demonstrates how quality expectations affects the strategic role of operations through how McDonalds incorporates feedback in order to differentiate a product based on quality expectations and it indirectly affecting its cost leadership whereas Kathmandu demonstrates how corporate social responsibility impacts the strategic role of operations through how the business incorporates lean production to reduce production costs which affects it’s cost leadership as well as affecting how it differentiates its products to be more environmentally friendly. McDonalds in 2011 received negative feedback on their coffee due to it not reaching quality expectations from customers which resulted in McDonalds changing the coffee in order to meet expectations of the customer which resulted in them selling 220 cups of coffee per year. This showcases the affect quality expectations has on product differentiation in a practical sense as due to the negative feedback surrounding the quality of the coffee, caused the coffee to differentiate into an enhanced version of itself which in turn indirectly affects cost leadership as a change in the product will lead to a change in the production of the product leading to a change in production cost which affect cost leadership. Kathmandu recycles 9.3 million bottles into gear hence displays how corporate social responsibility impacts the strategic role of operations as by utilising recycled materials into the production of goods it leads to lean production as it minimises more waste thus reducing production costs which in turn impact cost leadership and make it more effective. Furthermore, this impacts product differentiation as Kathmandu is changing the quality of their products to be more environmental and thus making itself different from other businesses in the market. In conclusion from the 2 business, it demonstrates how quality expectations and corporate social responsibility to an extent impact strategic role of operations as it can affect the effectiveness of cost leadership as well as changes are used in product differentiation.
Conclusion
In conclusion, to an extent the strategic role of operations is impacted by operation influences such as quality expectations and corporate social responsibility as it can influence the effectiveness of cost leadership and what changes are used in product differentiation. Quality expectations can impact the effectiveness of cost leadership as it can influence the costs and requirements for the production a product depending on the design, how well made it is, functionality of a good and the professionalism required and reliability of a service and influence product differentiation through determining what changes and feature will be added to a product. This is evident by McDonalds altering how effective their cost leadership and due to changing the production of their coffee after receiving negative feedback on it in 2011 and using that feedback based on quality expectations as a consideration when changing their coffee. Corporate social responsibility impacts cost leadership as it can lead to waste minimisation and lean production as businesses are more conscious of how their actions affect society, and affects product differentiation as products will be changed to be more environmentally friendly as evident by Kathmandu recycling 9.3 million bottles into gear as not only does this result in a more effective cost leadership due to waste minimisation and lean production being achieved through recycling bottles it leads to product differentiation as the gear produced by Kathmandu is environmentally friendly due to being made of recyclables.