Introduction to

operations managemnt
Unit 5.1
Outcomes
What is operations management?

is concerned with providing the right goods and services in

the right quantities and at the right quality level in a
cost-effective and timely manner.

Also referred to as production: The role of production is to

turn factors of production (inputs) into outputs by adding
value.

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Operations management and its relationship with other
business factors

Marketing

HR.

Finance.
 Marketing
Marketing implications: The
production method used
will affect both the quality and the
individuality of the
product. The output of an exclusive
product means that
it can be marketed at a high price
due to its uniqueness
and high quality.
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 HRM implications: The role
of operations management
HR has a direct impact on
human resource
management.
For example, a change in
production methods can
either reduce or increase
the size of the workforce.

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 Finance implications: FINANCE
Capital intensity and lean
production require heavy
investment in machinery and
equipment.
● Investment appraisal is required to
assess investment options as
fixed investment costs can be very
high.
● Contingency funds need to be set
aside for unforeseen
emergencies, e.g. machine
breakdowns.
● In labour intensive production, a
greater proportion of a firm’s costs
go towards remunerating workers
with financial benefits. 10
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ATL Skill (Research & Thinking) & Business Concept - Sustainability

Coca-Cola is the world’s most successful consumer

drinks company. However, this also means the
company is the planet’s largest plastic polluter.

Read this BBC article about the impacts of

Coca-Cola’s operations on the environment, and
answer the questions that follow:

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1. Coca-Cola was once associated with “teaching the
world to sing”. According to the author, what is it being
increasingly associated with today?
2. Who is the global chief executive of the Coca-Cola
Company?
3. How many plastic bottles does the Coca-Cola
Company produce each year?
4. What does the company aim to achieve by 2030?
5. What is Coca-Cola’s annual sales revenue?
6. What are the largest growth areas for the company?
7. When did the UK government introduce its sugar tax?
8. If Coca-Cola reduced its use of plastics by 5%, how
many plastic bottles would be avoided in the production
process?

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