Business Studies Influences on Operations Function

1356 WordsAug 27, 20136 Pages
Business Studies Essay; Explain how the influences on operations can affect the management of the operations function. A business has many influences that provide a duel effect on its operations. Not only can they cause the business to undergo change and continually adjust to the external factors in the business environment, but they also provide threats and opportunities in the operations process. The first of the nine influences is Globalisation. This is the increased economic integration of the world’s nations. Many businesses now have established a global web strategy where different elements of the key business functions are conducted. This form of outsourcing not only minimizes costs but also increases efficiency. An…show more content…
All businesses operate in a political- legal environment. This influence directly affects the management of various key business functions as government policies change form time to time, most notably due to a change in government or a change in social expectations. Therefore, government policies are a notable source of change a significant influence on business operations. One recent political issue is the affect of climate change; this has been seen by the introduction of the carbon tax. Since policies can inform law making, also lead to many business opportunities, operations managers need to be fully aware of the contemporary government policies and what they comprise. Legal regulations shape the businesses practices/ procedure that must be followed. Compliance costs are the expenses associated with meeting the requirements of legal regulations. Australia is a country that has countless legal regulations that protect the welfare and fair trading of human resources such as ‘Racial Discrimination Act 1975’, ‘Sex Discrimination Act 1984’ and ‘Fair work and Discrimination’. However, not all countries have these laws. In Bangladesh, it is easily seen by the collapse of Raza Plaza (garment exporting factory). Due to the low amount of legal regulations, the owner of Raza Plaza was able to get away with harassing
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