Summary
Summary Unit 4- decision making for operations
- Institution
- AQA
Notes on unit 4 from AQA a level business - decision making to improve operational performance.
[Show more]
1 review
By: avamcneill • 1 year ago
Available practice questions
Flashcards
26 Flashcards
£5.99
0 sales
Some examples from this set of practice questions
1.
What are some external influences on operational objectives?
Answer: - economic environment -competitor efficiency flexibility -technological change -legal and environmental change
2.
What are some internal influences on operational objectives?
Answer: -corporate objectives -finance -human resources -marketing issues
3.
What is the labour productivity formula?
Answer: output per period/ number of employees at work
4.
What are some ways of improving labour productivity?
Answer: -measure performance and set targets -streamline production processes -invest in capital equipment -invest in employee training -improve working conditions
5.
What is the unit cost formula?
Answer: total production costs in periods/ total output in periods
6.
What is economies of scale?
Answer: arise when unit costs fall as output increases
7.
What is labour intensive?
Answer: production that relies on using labour resources and is heavily controlled around employees
8.
What is capital intensive?
Answer: It is production that relies on using capital resources and heavily controlled around machinery
9.
What is capacity?
Answer: The capacity of a business is a measure of how much output it can achieve in a given period
10.
What is capacity utilisation?
Answer: the proportion of a business\' capacity that is actually being used over a specific period
Content preview
Unit 4- Decision making to improve operational performance:Internal influences on operational objectives:
- Corporate objectives
- Finance
- Human resources
- Marketing issues
External influences on operational objectives:
- Economic environment
- Competitor efficiency flexibility
- Technological change
- Legal and environmental change
Labour productivity = output per time period/ number of employees
Capacity utilisation = (actual output in time period/ maximum possible output per period) x 100
Unit cost = total cost/ units of output
Ways to improve labour productivity:
- Measure performance and set targets
- Streamline production processes
- Invest in employee training
- Improve working conditions
How to increase efficiency and labour productivity:
- Investment in technology
- Improvements in training and motivation
- Job design
- Reduction in the labour force
Economies of scale: economies of scale arise when unit costs fall as output increases
Capacity: a measure of how much output it can achieve in a given period
Capacity utilisation: the proportion of a business’ capacity that is actually being used over a specific
period
Why businesses operate below capacity:
- Lower than expected market demand
- A loss of market share
- Seasonal variations in demand
- Recent increase in capacity
- Maintenance and repair programmes
Dangers of operating at low-capacity utilisation:
- Higher unit costs
- Less likely to reach breakeven output
- Capital tied up in underutilised assets
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller isobelt235. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £5.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
64438 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now