5.

1 The role of operations management

Operations management strategies and practices for
ecological, social (human resource) and economic
sustainability (AO3)

Economic Sustainability
Refers to development that meets the economic needs of
the present generation using existing available resources
without compromising the ability of future generations to
meet their needs.
General definition - the ability of an economy to support a
defined level of economic production indefinitely.
True sustainability encourages the responsible uses
of resource (to not overuse resources for private
benefits to sustain output of goods and services over
time)
The depletion of natural resources is a threat to
economic wellbeing as it affects the production of
products for future generation

Attention to these types of details has the potential

to increase the communitys investment in the
continued operation of the business, and improve its
chances for remaining a viable operation for a longer
period of time.
Business should be responsible in the supply of
resources as well as products
The generation of products must comply to the
efficient use of capital to ensure a sustainable
economy on the business as well as the nation.
Below are the ways to ensure a sustainable economy
in business and the nation:
o Putting a price on the priceless resources
should be defined in monetary terms and not
just free to avoid depletion and value the
ecosystems
o Sustainable economy in business ensures high
valuation of company in the eyes on investors
inculcating sustainable approaches such as
reduced CO2 emissions and socially-aware
governance practice will ensure constant
influx of capital from foreign investment
o Product differentiation and development will
encourage competition in a market avoid
monopoly as well as providing variety of
products to customers that comply to the
pricing standard of the society, also allow
company to operate efficiently by mitigating
risks on various products
o Introduction of efficient cost cutting strategies
for consistent economical operation that is
socially responsible as well as environmentally
friendly recyclable items used in products

5.1 The role of operations management

o

Provision of varied job position to counter high

unemployment rate in society ensure
efficiency in business operation as well as
providing job employment in society

o Constant

but appropriate
products to avoid inflation

production

of