case studies for topics in hsc business studiesweb/@bus/documents/doc/uow236615.pdf · operations...

Case studies for topics in HSC Business Studies© Mohan Dhall 2019

Role of Operations Management

Students learn about: *

role of operations management *

strategic role of operations management – cost leadership, good/service *differentiation

goods and/or services in different industries *

interdependence with other key business functions *

© Mohan Dhall 2019

2

Case Studies on Role

Cotton On*

Tarocash*

LEGO*

Bunnings*

Aldi*

Best n Less (cost leadership)*

© Mohan Dhall 2019

3

Influences on Operations

globalisation, technology, quality expectations, cost-based competition, *government policies, legal regulation, environmental sustainability

corporate social responsibility *

the difference between legal compliance and ethical responsibility *

environmental sustainability and social responsibility *

© Mohan Dhall 2019

4

Case studies on Influences

Globalisation, economic: LEGO*

CSR and legal: Reckitt Benckiser $6 fine (Nurofen)*

Govt policies: Ladbrokes*

JB HiFi*

Woolworths*

Dominos*

Apple Inc*

© Mohan Dhall 2019

5

Operations Processes

Inputs *transformed resources (materials, information, customers) *transforming resources (human resources, facilities) *

Transformation processes *the influence of volume, variety, variation in demand and visibility (customer contact) *sequencing and scheduling – Gantt charts, critical path analysis *technology, task design and process layout *monitoring, control and improvement *

Outputs *customer service *warranties *

© Mohan Dhall 2019

6

Operations Processes

© Mohan Dhall 2019

7

Case studies on Processes

Woolworths*

Aldi*

KFC*

Flight Centre*

Samsung*

Uniqlo*

Zara*

© Mohan Dhall 2019

8

Operations Strategies

Performance objectives – quality, speed, dependability, flexibility, customisation, cost *New product or service design and development *Supply chain management – logistics, e-commerce, global sourcing *Outsourcing – advantages and disadvantages *Technology – leading edge, established *Inventory management – advantages and disadvantages of holding stock, LIFO (last-in-first-*out), FIFO (first-in-first-out), JIT (just-in-time)

Quality management *control *

assurance *

improvement *

Overcoming resistance to change – financial costs, purchasing new equipment, redundancy *payments, retraining, reorganising plant layout, inertia

Global factors – global sourcing, economies of scale, scanning and learning, research and *development

© Mohan Dhall 2019

9

Case studies on Strategies

TAL – Sykes – outsourcing to Manila change of address and verification *details (CBA and Macquarie Bank outsource to the same firm in Manila)

Telstra and D-Link modems*

Orica – SCM - Rationalisation*

Kmart*

Bunnings – Amgrow - Global sourcing and global finance*

WalMart*

Aldi – domestic sourcing, price/quality nexus*

© Mohan Dhall 2019

10

Role of Marketing

Strategic role of marketing goods and services *

Interdependence with other key business functions *

Production, selling, marketing approaches *

Types of markets*

Resource, industrial, intermediate, consumer*

Mass, niche *

© Mohan Dhall 2019

11

Careful with types of markets…

Types of markets*

Resource, industrial, intermediate, consumer*

Mass, niche *

© Mohan Dhall 2019

12

Case studies on role of marketing

Apple Inc*

Bing Lee*

Muffin Break*

Goodman Fielder*

© Mohan Dhall 2019

13

Influences on Marketing

Factors influencing customer choice*Psychological, sociocultural, economic, government *

Consumer laws *Deceptive and misleading advertising (Trivago and “best price” promise)*

Price discrimination (Garuda Airlines $19m, Air New Zealand, Qantas, Singapore *Airlines, Cathay Pacific – a total of 14 other airlines fined $130m)

Implied conditions *

Warranties *Ethical*

Truth, accuracy and good taste in advertising (Unilever), products that may *damage health, engaging in fair competition, sugging

© Mohan Dhall 2019

14

Case studies on influences on Marketing

Fitness First (premium), Anytime Fitness (global), Virgin Active (premium), *Fernwood (women only), Plus Fitness

Unilever Dove and Lynx/Axe brands*

Reckitt Benckiser – Nurofen pain specific medication*

Lululemon*

Takata*

© Mohan Dhall 2019

15

Marketing processes

Situational analysis – SWOT, product life cycle *

Market research *

Establishing market objectives *

Identifying target markets *

Developing marketing strategies *

Implementation, monitoring and controlling*

developing a financial forecast *

comparing actual and planned results*

revising the marketing strategy *

© Mohan Dhall 2019

16

Case studies on marketing processes

Samsung*

LEGO –*

interaction between demand planning, SCM, manufacturing and production*

Blackberry*

Encryption*

Software*

© Mohan Dhall 2019

17

Marketing strategies

Market segmentation, product/service differentiation and positioning *Products – goods and/or services *

branding *packaging *

Price including pricing methods – cost, market, competition-based *pricing strategies – skimming, penetration, loss leaders, price points *price and quality interaction *

Promotion *elements of the promotion mix – advertising, personal selling and relationship marketing, sales promotions, publicity *and public relations the communication process – opinion leaders, word of mouth *

Place/distribution *distribution channels *channel choice – intensive, selective, exclusive *physical distribution issues – transport, warehousing, inventory *

People, processes and physical evidence *E-marketing *Global marketing *

global branding *standardisation *customisation *global pricing *competitive positioning *

© Mohan Dhall 2019

18

Case studies on marketing strategies

Masterton Homes: product*Mondelez International: Toblerone, Arnott’s Tiny Teddies*Market-based: Multigate Medical Supplies, Hyatt*Cost-based: Aldi*Competition-based: Virgin Airlines-JetStar, Myer-David Jones*Apple Inc (price skimming)*Mazda (price points)*

https://www.mazda.com.au/*

Ticketek (place/distribution)*www.gymandfitness.com.au*

© Mohan Dhall 2019

19

http://www.gymandfitness.com.au/

Role of financial management

Strategic role of financial management *

Objectives of financial management *

profitability, growth, efficiency, liquidity, solvency *

short-term and long-term *


© Mohan Dhall 2019

20

Case studies on role of financial management

Aldi*Profit – short-term or long-term*

Growth*

Liquidity*

Solvency*

Efficiency and SCM/Warehousing*

Yellow Brick Road*Five successive years of losses*

CBA*CommInsure*

© Mohan Dhall 2019

21

Influences on financial management

Internal sources of finance*Retained profits *

External sources of finance *debt *

short-term borrowing (overdraft, commercial bills, factoring)*

long-term borrowing (mortgage, debentures, unsecured notes, leasing) *

equity *ordinary shares (new issues, rights issues, placements, share purchase plans), private equity *

Financial institutions – banks, investment banks, finance companies, superannuation funds, *life insurance companies, unit trusts and the Australian Securities Exchange Influence of government – Australian Securities and Investments Commission, company *taxation Global market influences – economic outlook, availability of funds, interest rates *

© Mohan Dhall 2019

22

Case studies on influences on financial management

Dominos*

LEGO*

© Mohan Dhall 2019

23

Process of financial management

Planning and implementing*Financial needs, budgets, record systems, financial risks, financial controls *

Debt and equity financing*Advantages and disadvantages of each *

Matching the terms and source of finance to business purpose *Monitoring and controlling*

Cash flow statement, income statement, balance sheet *

Financial ratios *Liquidity – current ratio (current assets ÷ current liabilities) *

Gearing – debt to equity ratio (total liabilities ÷ total equity) *Profitability – gross profit ratio (gross profit ÷ sales); net profit ratio (net profit ÷ sales); return on equity ratio (net profit ÷ total *equity)

Efficiency – expense ratio (total expenses ÷ sales), accounts receivable turnover ratio (sales ÷ accounts receivable) *Comparative ratio analysis – over different time periods, against standards, with similar businesses *

Limitations of financial reports – normalised earnings, capitalising expenses, valuing assets, timing issues, *debt repayments, notes to the financial statements

Ethical issues related to financial reports *

© Mohan Dhall 2019

24

Case studies on processes of financial management

Dominos*Debt $17m to enter Belgium, France and Denmark*Cash flow sustained the borrowing costs*

FSE P/L*What is a “good ratio” or benchmarks?*

Efficiency AR Turnover ratio: 12x per year*Liquidity 2:1 – cash and cash convertibility*Solvency: 0.5:1.0 (context matters)*Profitability:*

GPR: 50% +*NPR: 2.8% (Woolworths but on a cash flow of $1.2bn per week)*ROE: 16% +*

© Mohan Dhall 2019

25

Financial management strategies

Cash flow management *Cash flow statements *

Distribution of payments, discounts for early payment, factoring *

Working capital management *Control of current assets – cash, receivables, inventories *

Control of current liabilities – payables, loans, overdrafts *

Strategies – leasing, sale and lease back *

Profitability management *Cost controls – fixed and variable, cost centres, expense minimisation *

Revenue controls – marketing objectives *

Global financial management *Exchange rates *

Interest rates *

Methods of international payment – payment in advance, letter of credit, clean payment, bill of exchange *

Hedging *

Derivatives *

© Mohan Dhall 2019

26

Case studies on financial management strategies

CSL*

Flu vaccine – 1% effective*

https://theconversation.com/the-flu-vaccine-is-being-oversold-its-not-that-*effective-97688

Dominos*

Amgrow*

BMW*

Manufacturing in China*

New York Times*

Sale and lease back*

© Mohan Dhall 2019

27

Role of human resources

Strategic role of human resources *


Outsourcing *

Human resource functions *

Using contractors*

Domestic, global *

© Mohan Dhall 2019

28

Case studies on role of human resources

Lion Nathan*

Trained chemists/food technologists*

St George Bank*

Former CEO – Gail Kelly formerly from Westpac*

Banking staff*

Optus*

Offshore outsourcing*

© Mohan Dhall 2019

29

Key influences on human resources

Stakeholders*Employers, employees, employer associations, unions, government organisations, society *

Legal*The current legal framework *The employment contract*Common law (rights and obligations of employers and employees), minimum employment *standards, minimum wage rates, awards, enterprise agreements, other employment contracts

Work health and safety and workers compensation *Antidiscrimination and equal employment opportunity *

Economic *Technological *Social*

Changing work patterns, living standards *Ethics and corporate social responsibility *

© Mohan Dhall 2019

30

Processes of human resource management

Acquisition *

Development *

Maintenance *

Separation *

© Mohan Dhall 2019

32

Strategies in human resource management

Leadership style *Job design*

General or specific tasks *Recruitment – internal or external, general or specific skills *Training and development – current or future skills *Performance management – developmental or administrative *Rewards – monetary and non-monetary, individual or group, performance pay *Global*

Costs, skills, supply *Workplace disputes*

Resolution*Negotiation, mediation, grievance procedures, involvement of courts and tribunals *

© Mohan Dhall 2019

34

Effectiveness of human resource management

Indicators *

Corporate culture *

Benchmarking key variables *

Changes in staff turnover *

Absenteeism *

Accidents *

Levels of disputation *

Worker satisfaction *

© Mohan Dhall 2019

36

case studies for topics in hsc business studiesweb/@bus/documents/doc/uow236615.pdf · operations...

Documents