Business Studies Influences on Operations Function

Topics: Management, Corporate social responsibility, Sustainability Pages: 4 (1342 words) Published: August 13, 2013
Business Studies Essay;

Explain how the influences on operations can affect the management of the operations function.

A business has many influences that provide a duel effect on its operations. Not only can they cause the business to undergo change and continually adjust to the external factors in the business environment, but they also provide threats and opportunities in the operations process.

The first of the nine influences is Globalisation. This is the increased economic integration of the world’s nations. Many businesses now have established a global web strategy where different elements of the key business functions are conducted. This form of outsourcing not only minimizes costs but also increases efficiency. An example of this global web strategy is the ‘Apple IPod’, which obtains its hard-drive from Japan, 16 internal parts from US suppliers, 400 components from Asian suppliers and the final assembly in China. Some factors that have driven globalization include the deregulation of financial markets, removal of barriers to trade, advancements in transportations and communications. Globalisation affects the management of operations function as it has created many opportunities for Australian businesses to expand their overseas markets and allowed us to import and export raw materials which reduces costs and is ultimately more cheaper on operations which increases efficiency as they have more profit to increase the quality of their goods. It has resulted in a rapid increase in the volume of trade, capital, financial resources and labour that flows between countries.

Technology can be defined as the design, construction and/ or application of innovative devices, methods and machinery upon operations processes. This influence plays a very important role in the application of the operations function. Technologies such as mobile phones, laptops, computer and security devices enable people to communicate more easily and enable improved...
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