ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Business Management => Topic started by: stramandinoli.chiara on October 03, 2018, 02:40:15 pm

Title: Business management question operations
Post by: stramandinoli.chiara on October 03, 2018, 02:40:15 pm

Hi Guys just wondering if someone can please clarify my confusion down below.

The question is " How can the operations function contribute to making a profit"


·       Using technology can lower the cost of production (less expenses)

 .    Making a high quality product= charging a higher price but making it for the same amount= profit.

 
However I am unsure about how to go about this one because this can be achievable if you are reducing the amount of money associated with waste (by using quality checks) but doesn’t implementing the systems cost money anyway so you wouldn't be making a profit??

Thanks
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Title: Re: Business management question operations
Post by: accountingpro on October 03, 2018, 03:01:55 pm

Implementing any system usually costs money. For example implementing robotics may have a massive upfront cost but the productivity gains it can deliver to a business will almost always pay for itself in a shortish period of time.
So implementing any strategy that reduces expenses may have an upfront cost but be ultimately worth it.

Title: Re: Business management question operations
Post by: stramandinoli.chiara on October 03, 2018, 03:05:46 pm

Quote from: accountingpro on October 03, 2018, 03:01:55 pm

Implementing any system usually costs money. For example implementing robotics may have a massive upfront cost but the productivity gains it can deliver to a business will almost always pay for itself in a shortish period of time.
So implementing any strategy that reduces expenses may have an upfront cost but be ultimately worth it.

okay so as long as you would mention that for the long term, it can increase  profit :) thanks