Global Considerations in Operations
Questions & Exam Practice
Key Concepts Check In
- Define the following terms:
- Global sourcing of inputs
- overseas manufacturing
- Global outsourcing
- Identify one reason a business may source inputs globally.
- Identify one disadvantage of global outsourcing.
- Outline one way overseas manufacturing may improve the effectiveness of operations.
- Outline one way global sourcing of inputs may improve the efficiency of operations.
- Explain one difference between overseas manufacturing and global outsourcing.
Deep Dive
- Explain why businesses may choose to source inputs from overseas.
- Analyse how global sourcing of inputs may improve both the efficiency and effectiveness of operations.
- Explain how overseas manufacturing can provide businesses with a competitive advantage.
- Compare global sourcing of inputs and overseas manufacturing.
- Explain the relationship between global operations strategies and business objectives.
- Discuss how global sourcing of inputs can improve the effectiveness of a business;s operations.
Content in Action
- An Australian furniture manufacturer sources timber from sustainably managed forests in New Zealand because the timber is higher quality and more readily available than local supplies.
Explain how global sourcing of inputs may improve the effectiveness of the business’s operations. (4 marks) - A sporting goods manufacturer has established a production facility in Vietnam to manufacture its products for the Australian market.
Analyse how overseas manufacturing can improve both the efficiency and effectiveness of the business’s operations. (6 marks) - An Australian accounting firm outsources payroll processing to a specialist business located in the Philippines.
Discuss how the accounting firm can use global outsourcing to improve its operations (4 marks) - An electronics manufacturer has decided to source inputs from overseas suppliers.
Discuss the considerations that should be taken into account when making this decision. (4 marks)