3.4.1 Operational Objectives

What is the primary purpose of setting operational objectives in a business?

• To increase the number of employees

• To focus on meeting specific targets

• To expand the business globally

• To reduce the number of products

Which type of operational objective is likely to involve maintaining or improving levels of quality?

• Costs

• Flexibility

• Quality

• Innovation

What might a company aim to do to achieve a cost-related operational objective?

• Increase the number of products

• Reduce the number of customer complaints

• Cut its fixed costs or variable costs

• Improve the quality of products

What is an example of a flexibility objective for a business?

• Increasing the selling price of products

• Reacting to what customers want

• Cutting carbon emissions

• Increasing capacity utilization

Efficiency objectives aim to make better use of resources to reduce costs and increase profit. Which of the following is an example of an efficiency objective?

• Employing people on zero-hours contracts

• Setting a zero-emissions target

• Increasing capacity utilization

• Adding value to raw materials

What is the focus of innovation objectives in a business?

• Reducing the number of employees

• Setting research and development targets

• Increasing the production time

• Decreasing the waiting time for customers

Which operational objective involves cutting carbon emissions or using a greater number of recycled raw materials?

• Speed of response

• Dependability

• Environment

• Costs

What does the speed of response objective aim to improve in a business?

• The quality of products

• The speed at which a business can operate

• The number of employees

• The cost of raw materials

What does the dependability objective ensure for customers?

• That the business is environmentally friendly

• That the business can depend on its suppliers

• That the business can increase its selling price

• That the business can reduce its costs

What is the formula for added value in a business?

• Added value = Sales revenue + Cost of bought-in goods and services

• Added value = Sales revenue - Cost of bought-in goods and services

• Added value = Cost of raw materials - Sales revenue

• Added value = Cost of raw materials + Sales revenue