Making operational decisions

Businesses compete with rival businesses. Production costs must be kept low so that products can be priced competitively. The ability to do this is affected by production methods and technology.

Businesses must manage their materials effectively. They have a choice between keeping additional stock or using just-in-time stock control. They are affected by the relationship with their suppliers.

Quality is essential to a business’ success. Customers must be happy with the products and services they receive. If they are not, a business is unlikely to gain a good reputation or repeat customers.

Often, customers value good customer service above many other factors when making purchases. Offering good customer service is one way a business can stand out in a crowded and competitive market.