Operations Globalisation And Costbased Competitiom Essay
1128 Words5 Pages
Explain how the influences of globalisation and costed based competition can impact on the operations process and valuate the importance of operations strategies in managing those
A business has four main areas that are interdependent on each other to run the business smoothly and successfully. These areas are: Finance, Human Resources, Marketing and Operations. The one we are concentrating on today is operations. Operations is all about production. It is the process involving the transformation of inputs into outputs that is; turning resources and raw materials into final products ready for consumers. Operations comprises a significant part of any given business, so influences that affect this area need to be addressed and monitored as changes to operations can be crucial to the business as a whole, and to achieving a business's ultimate goal: profit maximisation. There are many external influences that act on operations these include: globalisation, technology, quality expectations, cost-based competition, government policies, legal regulation and environmental stability. The most significant of these being globalisation and cost based competition. Operations strategies are affected and or needed for managing these influences.
Globalisation refers to the process of integration of economies leading to the removal of barriers and trade restrictions. In short, globalisation is the term given the process of the world slowly coming together as one. As globalisation is a relatively new concept, becoming popular in the 1980s, it has changed the way businesses manage operations. The main impact of globalisation is the higher degree of transfer of goods, capital, labour, intellectual capital and ideas, financial resources and technology between nations. It is known as the global web; the integration of supply chains throughout the world. This has changed supply chain