9.3 Operations Strategy

Cambridge International A2 Level Business Studies (9609)

2026 Syllabus Objectives

By the end of this topic, you should be able to:

  1. Explain how human, marketing, and finance resources influence operations decisions
  2. Describe the changing role of IT and AI in operations management
  3. Explain the need for flexibility in volume, delivery time, and specification
  4. Explain process innovation and its role in operations
  5. Describe the main features of an ERP programme
  6. Explain how ERP improves efficiency in: inventory control, costing and pricing, capacity utilisation, responses to change, workforce flexibility, and management information
  7. Explain the aims and purposes of lean production
  8. Describe Kaizen, quality circles, simultaneous engineering, cell production, JIT manufacturing, and waste management as lean production strategies
  9. Evaluate the limitations of lean production strategies
  10. Explain the links between lean production and inventory control, quality, employee roles, capacity management, and efficiency
  11. Explain the need for planning operations
  12. Describe network diagrams as tools to plan operations
  13. Identify the main elements of a network diagram: activities, dummy activities, and nodes
  14. Use network diagrams for Critical Path Analysis (CPA), including minimum project duration, critical path, total and free float, and how results are used in project management
  15. Evaluate the benefits and limitations of CPA as a management tool

Section 1: Resources and Their Influence on Operations Decisions

https://cambridgeassistant.com

What are operations decisions?

Operations decisions are choices managers make about how to produce goods or deliver services — for example, what equipment to buy, how many workers to hire, or how to organise the production process.

These decisions are heavily influenced by the resources available to the business. The three key resource areas are human resources, marketing resources, and finance resources.

1.1 Human Resources

Human resources means the people who work in a business — employees, managers, and contractors.

  • If a business does not have enough skilled workers, it may not be able to use advanced production methods or new technology.
  • To support a new operations decision (e.g., introducing automated machinery), the business may need to hire new staff or train existing staff.
  • Without the right people in place, operations decisions may be delayed or may fail entirely.

Example: A factory that wants to introduce robotic assembly lines will need engineers and technicians who can programme and maintain those robots. If these people are not available, the plan cannot go ahead as intended.

Sign in to view full notes