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operations - Coggle Diagram

- - - - will enable a business to save on cost of rent, the factory or wages
    - - good road, rail, sea or air links keeps costs low
  - - - reduces cost of transport
  - - - like 'silicon fen' near Cambridge is full of skilled ICT workers so an ICT business may locate here
  - - - this is a good look for any business
  - - - may encourage firms to locate in enterprise zones
- - - - business could lose sales as a result
  - - - potential problems
        
        if the supplier is short of materials the production would be delayed
        
        loss of sales
  - - - potential problems
        
        A business who produces a component may not get the materials it needs so cannot produce the components its customer needs
  - - - bad customer service will most likely lose customers
- - - - goods can be returned and refunded
        
        may gain a bad rep
  - - - the business must make sure of this
    - - may gain bad rep
      - pay lots of compensation due to an injury or death from their product
      - product is cut from sales and production
        
        loss of profit
      - business may be forced to close down
- - - - EG: a bridge, artwork, furniture, clothing
    - - likely high quality
      - higher price = more/ better profit
    - - high cost
      - slow production
  - - - batches can be varied to cutomers needs
      - cheaper than job production
      - no storage costs (most the time)
    - - machines cost money
      - may need extra stock
      - boring tasks
        
        leading to loss of motivation for workers
  - - - Large quantities
      - may gain economies
        
        leads to a reduce of unit costs
      - machinery/automation can reduce costs
      - computer controlled machines
        
        allows variation
    - - mass produced
        
        can lead to bad quality
      - large stocks
      - production can be disrupted
        
        less products
        
        less sales
        
        lower profit
      - boring repetitive tasks
        
        loss of motivation to workers
- - - - can increase sales
      - useful for advice
      - may be unavoidable
      - the customer can bargain with seller over price + services
    - - not always convenient
      - profits can be reduced due to bargaining
      - retailer costs are high
  - - - sellers may 'cold wall'
    - - can increase sales
      - may cost less than selling in a shop
  - - - markets have increased
      - selling 24/7
      - lower costs
      - web designers can help businesses appear attractive at little cost
    - - increase in competition
      - delivery systems need to be organised
      - need cyber security
      - must develop with technology
        
        costly
    - - prices can be compared to find their best deal
      - customers can buy 24/7
      - choice has increased
    - - customers can't ask questions about the product
      - goods are bought as seen
        
        customers must return often at their own cost
      - risk of bank fraud or personal data theft
      - not everybody has access to technology
- - - - stops poor quality products being sold
      - improved reputation
    - - doesn't prevent waste
      - inspection can be costly
      - it does not encourage workers to be responsible for quality
  - - - reduce wastage and costs
      - workers resposible
        
        motivation
      - improved reputation
    - - could lead to stressed workers
- - - - dependant on the quality of goods or services consumers want
      - rep of reliability of suppliers = important
    - - a business completes an order form stating what it wants and sends it to the supplier
    - - workers receive goods
      - need area to be stored