IB Business Management - Role of Operations Management

Which business function deals with planning, organising and controlling the different elements and stages of the production process?

• Operations management

• Marketing

• Human resources management

• Finance and accounting

Answer explanation

Operations management is the business function which deals with which goods and services are produced and how they are to be produced.

Which of the following is the correct statement about operations management in the primary sector?

• It includes car manufacturing using automated production processes.

• It includes business consultancy services.

• It includes fishing, forestry and mining.

• It includes tourism and hospitality.

Answer explanation

In the case of the primary sector, operations management may involve mining, fishing and forestry.

_ Management is the business function that combines inputs (such as human and financial resources) to produce outputs (goods and services).

Which statement below refers to an organisations operations management?

• The logistics of getting their products to customers.

• The production of goods or services.

• The preparation of financial accounts.

• The hiring of workers to produce physical goods.

Answer explanation

Operations management is about the production of goods and provision of services, in order to meet the needs and wants of customers.

Which term describes taking human factors into account when making sustainable business decisions which may affect workers and the local community?process of using resources to their best advantage, ensuring profitability and financial sustainability?

• Ecological sustainability

• Social sustainability

• Economic sustainability

• The triple bottom line

Answer explanation

Social sustainability refers to organizations being aware of their social responsibility to workers (as internal stakeholders) and local communities (as external stakeholders). This means that working conditions are fair and acceptable and the local community is not adversely affected by the operations of the organization.

_ is the ability of an organization or an economy to continue its business activities indefinitely, without jeopardising opportunities for future generations.

Which type of sustainability occurs when businesses operate responsibly as employers by encouraging and fostering equal opportunities in the workplace?

• Ecological

• Social

• Economic

• Paternal

Answer explanation

Social sustainability happens when businesses operate responsibly towards their employees by promoting or encouraing and fostering equal opportunities in the workplace.

Which type of sustainability assesses how well a business uses green technologies and recycling?

• Political

• Social

• Ecological

• Economics

Answer explanation

Ecological sustainability assesses how well or responsible a business is with its use of resources by adopting green technologies and actions to recycle.

Which factor of production refers to human effort in the production process of manufacturing goods and/or providing services?

• Land

• Labour

• Enterprise

• Capital

Answer explanation

Labour is the factor of production referring the human effort in the production process, i.e. the physical and mental efforts of employees.

Which term considers taking economic, social and ecological factors into consideration when making sustainable business decisions?

• Social sustainability

• Ecological sustainability

• Economic sustainability

• The triple bottom line

Answer explanation

The triple bottom line is when an organisation considers not only financial outcomes but also the wellbeing of the natural environment and society as a whole.