Practice Extended Response (Business Report)

In your answer you will be assessed on how well you:

■ demonstrate knowledge and understanding relevant to the question

■ apply the hypothetical business situation

■ communicate using relevant business terminology and concepts

■ present a sustained, logical and cohesive response in the form of a business report

Scenario:

Emu Uniform Manufacturers Pty Ltd are a successful business based in NSW. They currently supply a range of school, sport and work uniforms to a large number of customers throughout Australia. They are known for their outstanding customer service and high quality products. Sales have been increasing for many years and they have recently received a large long-term contract to supply uniforms to a major company. This will require them to significantly expand their output. To do this, the business will have to outsource overseas or spend $5 million to expand its existing factory in NSW. 

Task:

You have been hired as a consultant to write a report to the management of Emu Uniform Manufacturers Pty Ltd. In your report:

• justify one strategy Emu Uniform Manufacturers can use to achieve cost leadership while meeting quality expectations throughout the production process

• discuss the benefits and drawbacks of outsourcing overseas compared with the factory expansion

Practice Short Answer Questions for Operations 

Define the term ‘operations’ (2 marks)

Discuss the balance between cost and quality in operations strategy (4 marks)

Explain how globalisation can lead to a company reducing staff numbers (2 marks)

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Source: HSC 2023, Business Studies Exam, Section II, Q.21

An Australian tyre manufacturer is expanding its business. In order to reduce operating costs and increase sales and profit, rubber will be sourced from the global market.

The business wants to:

• maintain quality outputs

• achieve economies of scale.

a. Outline ONE potential issue this business could face in relation to both cost and quality of outputs (2 marks)

b. Explain the benefits of achieving economies of scale for both the business and consumers (2 marks)