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HOW DOES AN UNDERSTANDING OF THE INFLUENCES ON OPERATIONS CONTRIBUTE TO BUSINESS SUCCESS?
For a business to be considered successful, it is necessary that the business understands the influences on its operations. A business can be affected by many different factors such as globalisation, technology, corporate social responsibility, legal regulations and cost based competition. These influences have the possibility to induce change, and create opportunities or threats to a business, which is why understanding these influences is key to a businesses success.
Globalisation is a main influence on operations. Globalisation is the removal of trade barriers and the integration of national economies into a global economy. The reasons for globalisation are to reduce labour costs and expand a business’ market to a global scale. The opportunities that can arise from globalisation is outsourcing of parts of its business to regions offering cheaper labour and manufacturing. Countries with no trade barriers can offer a cheaper solution to a business to sell their product in a country other than their own. However globalisation raises a risk of competition to smaller local businesses. This means that companies like Apple, who harnessed globalisation in the 90’s have been successful in expanding their business to all corners of the globe. This also means that smaller companies such as Creative (MP3 Brand) have more difficulty competing with a company who has been sourcing the cheapest labour and manufacturing for almost 20 years. This is why understanding a business’ operations can lead to a business’ success.
The improvement or technology also has an important influence on a business’ operations. Technology is the improvement and development of devices, machines, manufacturing techniques, and communications. Techonology can provide a business with the opportunity for lower cost manufacturing, robotics, shorter lead times and internet to communicate within the business and
For a business to be considered successful, it is necessary that the business understands the influences on its operations. A business can be affected by many different factors such as globalisation, technology, corporate social responsibility, legal regulations and cost based competition. These influences have the possibility to induce change, and create opportunities or threats to a business, which is why understanding these influences is key to a businesses success.
Globalisation is a main influence on operations. Globalisation is the removal of trade barriers and the integration of national economies into a global economy. The reasons for globalisation are to reduce labour costs and expand a business’ market to a global scale. The opportunities that can arise from globalisation is outsourcing of parts of its business to regions offering cheaper labour and manufacturing. Countries with no trade barriers can offer a cheaper solution to a business to sell their product in a country other than their own. However globalisation raises a risk of competition to smaller local businesses. This means that companies like Apple, who harnessed globalisation in the 90’s have been successful in expanding their business to all corners of the globe. This also means that smaller companies such as Creative (MP3 Brand) have more difficulty competing with a company who has been sourcing the cheapest labour and manufacturing for almost 20 years. This is why understanding a business’ operations can lead to a business’ success.
The improvement or technology also has an important influence on a business’ operations. Technology is the improvement and development of devices, machines, manufacturing techniques, and communications. Techonology can provide a business with the opportunity for lower cost manufacturing, robotics, shorter lead times and internet to communicate within the business and