AOM4801 - Exam Questions PACK With
Correct Answers
What operations activities do you think will be involved at the online retailer Amazon? - correct
answer>>>At Amazon, a variety of operations activities are involved in ensuring efficient and
effective delivery of products to customers. These activities include:
• Procurement and sourcing of products from suppliers • Inventory management and control
• Order processing and fulfillment
• Transportation and logistics management
• Quality control and assurance
• Customer service and support
• Returns and refunds management
• Continuous improvement and innovation in processes and technologies
Why might the concept of opportunity cost be important when managers are considering
whether they are adding enough value? - correct answer>>>Opportunity cost refers to the cost
of an alternative that must be forgone in order to pursue a certain action or decision. When
managers are considering adding more value, they need to weigh the benefits of the potential
value against the opportunity cost of other options that could have been pursued. By
understanding the opportunity cost, managers can make better-informed decisions about
whether to allocate resources to a particular project or initiative, or whether to pursue other
opportunities that may provide greater value.
To what extent do you think that operations is the most important function of a business -
correct answer>>>Operations is a critical function of any business, as it is responsible for the
efficient and effective management of resources and processes that produce goods and
services. However, it is important to note that no function operates in isolation, and other
functions such as marketing, finance, and human resources are equally important in ensuring
the success of a business. The relative importance of each function depends on the nature of
the business, its objectives, and its competitive environment
Analyse how the operational decisions that managers make might affect the company's profits. -
correct answer>>>Operational decisions made by managers can have a significant impact on a
company's profits. For example, decisions related to sourcing and procurement of materials can
,impact the cost of goods sold and ultimately the gross profit margin. Similarly, decisions related
to inventory management, such as the timing and frequency of orders, can affect the level of
inventory holding costs and stockouts, which can impact sales and profitability. Transportation
and logistics decisions can impact the delivery time and cost, which in turn can affect customer
satisfaction and loyalty, and ultimately revenue and profitability. In general, operational
decisions that improve efficiency, quality, and customer satisfaction while reducing costs can
have a positive impact on a company's profits
The UK is increasingly producing services rather than goods. What do you think might be
different in managing the operations of services compared to manufacturing? - correct
answer>>>Managing the operations of services requires a different set of skills and strategies
compared to managing manufacturing operations. Some key differences include:
• Intangibility: Services are intangible, meaning they cannot be touched or seen before
consumption. This makes it more challenging to ensure consistent quality and customer
satisfaction compared to manufacturing products.
• Customization: Services are often customized to meet the specific needs and preferences of
individual customers, which requires greater flexibility and responsiveness in operations
management.
• Time and location: Services are often consumed at a specific time and location, which requires
careful planning and scheduling of resources to ensure availability and efficient use.
• Labor-intensive: Services are typically more labor-intensive compared to manufacturing,
which requires effective management of human resources, including recruitment, training, and
motivation.
• Quality assurance: Quality control in services is often more subjective and relies heavily on the
interaction between the service provider and the customer. This requires effective training of
staff to ensure consistent quality and customer satisfaction.
Can you think how the internet and information technology might be affecting operations
decision making? - correct answer>>>The internet and information technology have significantly
impacted operations decision-making by providing access to real-time data and analytics,
enabling faster and more accurate decision-making. Information technology has also enabled
automation of routine and repetitive tasks, freeing up human resources to focus on more
strategic and value-adding activities. The internet and e-commerce have also opened up new
channels for sales and distribution, allowing businesses to reach wider markets and operate on
a global scale.
, Can you think of three ethical issues or environmental issues involved in the operations
management of running a football club? - correct answer>>>Three ethical issues in the
operations management of running a football club could include:
• Treatment of players: Ensuring fair treatment of players, including proper wages, adequate
health and safety standards, and protection from discrimination.
• Fan behavior: Ensuring fan behavior is respectful and appropriate, including preventing and
managing incidents of racism, violence, and other unacceptable behaviors
.• Environmental impact: Minimizing the environmental impact of the club's operations,
including reducing waste, energy consumption, and carbon emissions, and promoting
sustainable practices.
What are some businesses that compete on the speed of response ? - correct
answer>>>Businesses that compete on the speed of response include:• Delivery and logistics
companies such as Amazon, UPS, and FedEx
• Fast food chains such as McDonald's and Subway
• E-commerce companies such as Alibaba and eBay
• Online streaming platforms such as Netflix and Hulu
Analyse how the speed of response and flexibility helps a business to compete - correct
answer>>>The speed of response and flexibility can provide a competitive advantage for
businesses by enabling them to respond quickly to changing customer needs and market
conditions. Businesses that can quickly adapt to new trends and technologies, and make timely
decisions, can gain an edge over their competitors. Speed of response can also help businesses
to improve customer satisfaction and loyalty by providing fast and efficient service, which can
translate into higher sales and revenue.
How can the operations process affect the other functions of a business? - correct
answer>>>The operations process can have a significant impact on other functions of a
business. For example, efficient and effective operations can lead to lower production costs,
which can improve profitability and enable the business to invest in marketing and research and
development. On the other hand, inefficient or ineffective operations can lead to higher costs,
reduced quality, and customer dissatisfaction, which can harm the reputation of the business
and negatively impact other functions such as marketing and sales. Operations management
also interacts with human resources, finance, and information technology to ensure alignment
of objectives and efficient use of resources.
Correct Answers
What operations activities do you think will be involved at the online retailer Amazon? - correct
answer>>>At Amazon, a variety of operations activities are involved in ensuring efficient and
effective delivery of products to customers. These activities include:
• Procurement and sourcing of products from suppliers • Inventory management and control
• Order processing and fulfillment
• Transportation and logistics management
• Quality control and assurance
• Customer service and support
• Returns and refunds management
• Continuous improvement and innovation in processes and technologies
Why might the concept of opportunity cost be important when managers are considering
whether they are adding enough value? - correct answer>>>Opportunity cost refers to the cost
of an alternative that must be forgone in order to pursue a certain action or decision. When
managers are considering adding more value, they need to weigh the benefits of the potential
value against the opportunity cost of other options that could have been pursued. By
understanding the opportunity cost, managers can make better-informed decisions about
whether to allocate resources to a particular project or initiative, or whether to pursue other
opportunities that may provide greater value.
To what extent do you think that operations is the most important function of a business -
correct answer>>>Operations is a critical function of any business, as it is responsible for the
efficient and effective management of resources and processes that produce goods and
services. However, it is important to note that no function operates in isolation, and other
functions such as marketing, finance, and human resources are equally important in ensuring
the success of a business. The relative importance of each function depends on the nature of
the business, its objectives, and its competitive environment
Analyse how the operational decisions that managers make might affect the company's profits. -
correct answer>>>Operational decisions made by managers can have a significant impact on a
company's profits. For example, decisions related to sourcing and procurement of materials can
,impact the cost of goods sold and ultimately the gross profit margin. Similarly, decisions related
to inventory management, such as the timing and frequency of orders, can affect the level of
inventory holding costs and stockouts, which can impact sales and profitability. Transportation
and logistics decisions can impact the delivery time and cost, which in turn can affect customer
satisfaction and loyalty, and ultimately revenue and profitability. In general, operational
decisions that improve efficiency, quality, and customer satisfaction while reducing costs can
have a positive impact on a company's profits
The UK is increasingly producing services rather than goods. What do you think might be
different in managing the operations of services compared to manufacturing? - correct
answer>>>Managing the operations of services requires a different set of skills and strategies
compared to managing manufacturing operations. Some key differences include:
• Intangibility: Services are intangible, meaning they cannot be touched or seen before
consumption. This makes it more challenging to ensure consistent quality and customer
satisfaction compared to manufacturing products.
• Customization: Services are often customized to meet the specific needs and preferences of
individual customers, which requires greater flexibility and responsiveness in operations
management.
• Time and location: Services are often consumed at a specific time and location, which requires
careful planning and scheduling of resources to ensure availability and efficient use.
• Labor-intensive: Services are typically more labor-intensive compared to manufacturing,
which requires effective management of human resources, including recruitment, training, and
motivation.
• Quality assurance: Quality control in services is often more subjective and relies heavily on the
interaction between the service provider and the customer. This requires effective training of
staff to ensure consistent quality and customer satisfaction.
Can you think how the internet and information technology might be affecting operations
decision making? - correct answer>>>The internet and information technology have significantly
impacted operations decision-making by providing access to real-time data and analytics,
enabling faster and more accurate decision-making. Information technology has also enabled
automation of routine and repetitive tasks, freeing up human resources to focus on more
strategic and value-adding activities. The internet and e-commerce have also opened up new
channels for sales and distribution, allowing businesses to reach wider markets and operate on
a global scale.
, Can you think of three ethical issues or environmental issues involved in the operations
management of running a football club? - correct answer>>>Three ethical issues in the
operations management of running a football club could include:
• Treatment of players: Ensuring fair treatment of players, including proper wages, adequate
health and safety standards, and protection from discrimination.
• Fan behavior: Ensuring fan behavior is respectful and appropriate, including preventing and
managing incidents of racism, violence, and other unacceptable behaviors
.• Environmental impact: Minimizing the environmental impact of the club's operations,
including reducing waste, energy consumption, and carbon emissions, and promoting
sustainable practices.
What are some businesses that compete on the speed of response ? - correct
answer>>>Businesses that compete on the speed of response include:• Delivery and logistics
companies such as Amazon, UPS, and FedEx
• Fast food chains such as McDonald's and Subway
• E-commerce companies such as Alibaba and eBay
• Online streaming platforms such as Netflix and Hulu
Analyse how the speed of response and flexibility helps a business to compete - correct
answer>>>The speed of response and flexibility can provide a competitive advantage for
businesses by enabling them to respond quickly to changing customer needs and market
conditions. Businesses that can quickly adapt to new trends and technologies, and make timely
decisions, can gain an edge over their competitors. Speed of response can also help businesses
to improve customer satisfaction and loyalty by providing fast and efficient service, which can
translate into higher sales and revenue.
How can the operations process affect the other functions of a business? - correct
answer>>>The operations process can have a significant impact on other functions of a
business. For example, efficient and effective operations can lead to lower production costs,
which can improve profitability and enable the business to invest in marketing and research and
development. On the other hand, inefficient or ineffective operations can lead to higher costs,
reduced quality, and customer dissatisfaction, which can harm the reputation of the business
and negatively impact other functions such as marketing and sales. Operations management
also interacts with human resources, finance, and information technology to ensure alignment
of objectives and efficient use of resources.
