HSC Operations Business Studies Extended response PDF

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Business Studies HSC Rank 1 Girraween Selective, response to previous HSC business extended response question....

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ANALYSE HOW OPERATIONS STRATEGIES CAN HELP A BUSINESS SUSTAIN ITS COMPETITIVE ADVANTAGE Operations strategies can play a significant role in helping a business sustain its competitive advantages. Outsourcing, technology, supply chain management and new product design and development are some of the strategies which can positively impact a business’s competitive advantage. Companies such as Apple, Amazon, Coca Cola and Woolworths have been extremely successful due to operations strategies which have helped them sustain their competitive advantage. Outsourcing is an operations strategy which can significantly improve and sustain a business’s competitive advantage. Outsourcing is the process of using an external provider that specialises in a particular business function to perform business activities. This is extremely advantageous for businesses as it allows them to focus on their primary function while significantly reducing their manufacturing costs by utilising cheaper labour overseas through offshore outsourcing. Off-shore outsourcing allows a business to increase their production capacity and mass produce goods using economies of scale which can further reduce the manufacturing costs. Businesses can profit from the lower compliance costs in developing regions of the world as opposed to highly regulated countries such as Australia. Outsourcing allows businesses to use specialised companies to produce a higher quality product at a lower price, attracting more customers, increasing sales and improving a business’s competitive advantage. Apple is a multinational corporation that has sustained its competitive advantage by outsourcing the manufacturing of its iPhones to Chinese company Foxconn. This allows Apple to cheaply mass produce its iPhones by using the cheap cost of labour and compliance costs. Apple continues to produce their iPhones in China and is aiming to start production in India as well to remain competitive as the low production cost allow Apple to gain a substantial competitive advantage. Outsourcing also allows Apple to improve the quality of their products, Apple buys its OLED displays for its flagship iPhones from smartphone rival Samsung due to the high quality of their displays. Outsourcing has enabled Apple to lower the manufacturing cost of its products through cheaper labour and compliance costs and benefit from higher quality products. This has increased Apple’s sales and market share, allowing the company to sustain its competitive advantage. Outsourcing can significantly improve a business’s competitive advantage and allow it to be sustainable. Technology is another operations strategy which can significantly improve a business’s competitive advantage. Technology is the design, construction and application of innovative devices, methods and machinery upon the operations process. Established and leading-edge technology can improve a business’s competitive advantage as it improves reliability, allows for greater economies of scale, increases quality and productivity. As a result, technology can help a business mass produce a higher quality product at a cheaper price resulting in an increase in sales, market share and brand reputation. Established technologies such as computer aided design (CAD) and computer aided manufacturing (CAM) have become key factors in the production and design of complex goods. CAD and CAM have increased efficiencies and productivity, reducing lead times and improving a business’s competitive advantage. Robotics helps shape the transformation processes to ensure they are of a high quality, consistent in standards, efficient and minimise waste. They remove human errors and the need for human labour, reducing the operations cost providing businesses with a competitive advantage. Amazon is a multinational company that improved its competitive advantage through its use of established and leading-edge technologies. Amazon uses leading-edge robotics in its fulfillment centres to efficiently transport goods around the warehouse. The robots are capable of moving 1.3 tonnes of goods. The robots transport entire shelves requested by a human to them, drastically increasing efficiency and reducing lead times. The robots also save space, allowing for 50% more items to be stored at warehouses. Robotics plays a huge role in allowing Amazon to fulfil its

same-day and next-day delivery promises, a service which has provided Amazon with a huge competitive advantage. Technology can significantly improve and help sustain a business’s competitive advantage by improving reliability, efficiency and meeting customer needs and expectations. Logistics is an operations strategy which can provide a business with a great competitive advantage. Logistics forms a major part of supply chain management which is the integration and management of the flow of supplies throughout the inputs, transformation processes and outputs. Logistics is the transportation, storage, materials handling, and packaging of goods. Logistics can greatly improve a business’s competitive advantage as it allows a business to provide effective and efficient services. Logistics can provide a business with a competitive advantage by adding customer value to a service such providing faster deliveries. Logistics can also provide cost advantages, partnering with suppliers and supply chain management companies can make activities and processes more cost efficient. This reduces the operations cost, allowing a business to sell a product for cheaper, increasing sales and market share, providing a competitive advantage. Effective logistics management reduces the waste of materials and time, a priority for businesses such as Amazon that are focused on meeting high customer expectations through their delivery services. BevChain logistics is a major business in beverage supply chain solutions. BevChain specialises in the warehousing and distribution of alcoholic beverages and allows suppliers such as Coca-Cola Amatil to quickly and efficiently deliver goods to a business. BevChain uses a program called ConnectiX that enhanced collaboration between BevChain’s logistics partners. ConnectiX allows BevChain and its partners to track and monitor the delivery of goods. BevChain allows its partners to gain competitive advantages as it provides a fast, quick and cheap logistics solution. This allows businesses to gain competitive advantages as they can reduce costs and meet customer expectations. New product design and development is another operations strategy which can significantly improve and help sustain a business’s competitive advantage. New product design and development is the creation, design, and development of new products. New product design and development enables a business to grow and attain a competitive advantage as it allows a business to offer an exclusive product no other business sells. It can attract new customers, increase sales, and market share providing businesses with a competitive advantage. New product design and development adds more functionality to a product through innovations in technology, this helps a business retain existing customers while expanding their customer base and increasing brand reputation and recognition. This can help sustain a business’s competitive advantage. New product design and development can increase product utility, enticing more customers, increase functionality, and allow for promotion increasing brand reputation. Tesla’s recently announced CyberTruck has increased the business’s competitive advantage as it has gained considerable attention from the outlandish design of the truck. Tesla’s CyberTruck adds functionality as compared to a standard petrol-powered pickup truck through the benefit of an electric motor. Tesla’s CyberTruck has provided Tesla with a competitive advantage as it has increased the business’s brand reputation, gained positive media dcoverage and attracted new customers....