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terms of being efficient and effective, goods and services would be of poor
quality which will result in dissatisfaction of customers. Businesses strive to
meet and exceed the customers needs and expectations, in doing so they
will be able to maximize their profits.
In the dynamic business environment, globalization can be an issue
from all perspectives such as economic, financial, and even cultural because
now firms are extended their supply chain beyond their borders and doing
business with other suppliers and customers around the world. With different
companies manufacturing homogenous products in the same market, this
would be where operation management would play a major role because the
organization will have to come up with a strategy so they will be
distinguished among the other. This is when operation strategies will help in
achieving business goals and gain competitive advantage because the firms
processes will be more efficient and effective by providing customers with
goods at the best quality at the lowest price. This could mean employees
were trained or new technology was introduced or even backward integration
so that way the firms will be able to have increased productivity and
customers may be demanding more of the products. With increased sales
that would mean profit maximization for the firm.
Technology is also a factor where it is changing rapidly and it is
providing new and improved ways to facilitate the planning and control of an
organizations activities. With continuous development in technology is
creating tighter connections in the supply chain, improving the ability to plan
and schedule and increasing productivity. There is also the introduction of ebusiness, the benefits would be direct contact with customers, this way there
is no more guessing about demand is necessary, inventory costs go down,
product and service design improves. Also business processes conducted
online, the impact on operations would mean transactions costs are lower,
customer support costs decrease and e-procurement saves a lot of money.
With an e-business company, they will be able to save on cost and they can
concentrate on the quality of their products which will then result in
increased sales.
Competition is also a factor, time-based it is the ability to deliver
products and services to the market quicker than competitors. It has become
an advantage in markets where low price and high quality have ceased to be
market differentiators. Operations management can contribute to good
corporate practices by controlling the inputs, outputs and technologies used
in the transformation process that would mean the organizations processes,