Q1. Discuss the meaning of the term ‘value-added’. Q2. Discuss the various impac

Question

Q1. Discuss the meaning of the term ‘value-added’.

Q2. Discuss the various impacts of outsourcing.

Q3. Discuss the term ‘sustainability’, and its relevance for business organizations.

Q4. Many organizations offer a combination of goods and services to their customers. As you learned in this chapter, there are some key differences between production of good and delivery of services. What are the implications of these differences relative to managing operations?

Q5. One way that organizations compete is through technological innovation. However, there can be downsides for both the organization and the consumer. Explain.

Explanation / Answer

Q1) The term 'value-added' means the amount of value that is added to a component/product at each stage of the production/manufacturing process.

Q2) Below are various impacts of outsourcing -

1. Ease of responding to fluctuating demands

2. Relatively lower costs compared to internal manufacturing

3. Capability to manufacture items for the OEMs who don't have the capability thus creating new business opportunities.

Q3) Sustainability is a term used to sustain the resources and the ecological balance without over-exploitation or depletion. It is highly relevant to the current business organizations that are expanding their business at a rapid pace by depleting natural resources, emitting greenhouse gases, occupying lands. dumping industrial wastes etc. Sustainability has become a component of corporate social responsibility of the firms where the firms are expected to create and implement sustainability initiatives to effectively handle the environment and emission related issues.

Q4) The implications of the differences between goods production and service delivery with respect to managing operations include -

1. Services are more dependent on human resources and high technology systems whereas production of goods require huge equipment and machinery along with human resources.

2. Services have lower capital expenditure whereas production of goods has high capital expenditure.

3. Space and safety requirements are higher for goods production.

Q5) Below are the downsides of technological innovation for the organization and consumer -

1. For the organization, it leads to heavy investment and a failure will result in huge loss of revenues. It requires a lot of user training to handle new technologies effectively.

2. For consumer, it results in increased cost of the product or services in some cases. It also leads to quick phase out of existing products that they purchase.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.