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Unit 3: Strategies for success
Operational strategies
Resources
Books
Google video worksheet and answer sheet
Worksheet table
Student slide handout
Astra Zeneca case study and answers
AQA A2 Business Studies
Unit 3: Strategies for success
Operational strategies
Unit 3: Strategies for success
Operational strategies
Log on!
Unit 3: Strategies for success
Operational strategies
Understanding operational objectives
Operational objectives:•quality•cost targets•volume targets• innovation•efficiency •environmental targets
Remember this is hat all these strategies are trying
to achieve
Unit 3: Strategies for success
Operational strategies
Objectives
•Identify the business activities that fall within the description of
Innovation
•Explain two benefits and two problems of innovation and R&D
•Analyse the implications of innovation on other functional areas
•Analyse the factors that influence the level of spend on R&D and
Innovation
Unit 3: Strategies for success
Operational strategies
Match the invention and innovation
A
C
B
D
E
G
F
H
I
K
J
Unit 3: Strategies for success
Operational strategies
Match the invention and innovation
A
C
B
D
E
G
FH
IK
J
F
Unit 3: Strategies for success
Operational strategies
Operational Objectives:Quality
Cost targetsVolume targets
InnovationEfficiency
Environmental targets
Scale
Location
Lean Production
Resource Mix
Innovation
Unit 3: Strategies for success
Operational strategies
Operational strategies: innovation
Innovation: the successful exploitation of new ideas.
Research and development (R&D): the scientific
investigation necessary to discover new products or
manufacturing processes and bring them to the market.
Unit 3: Strategies for success
Operational strategies
Recap from AS
What production sector does R&D fall into?
Name the forms of legal protection for innovation:
1. Inventions and the technical and functional aspects of products and processes
2. Signs that can distinguish the goods and services of one trader from those of
another
3. The visual appearance or eye appeal of products
4. Material, such as literature, art, music, sound recordings, films and broadcasts
What is the collective term we use for the creations that are protected?
Whiteboards
Intellectual Property!
Unit 3: Strategies for success
Operational strategies
Intellectual Property includes…
CopyrightCopyright protects material, such as literature, art, music, sound
recordings, films and broadcasts.
DesignsDesigns protect the visual appearance or eye appeal of products.
PatentsPatents protect the technical and functional aspects of products and
processes.
Trade MarksTrade Marks protect signs that can distinguish the goods and services
of one trader from those of another.
You need to know these for
the exam!
Unit 3: Strategies for success
Operational strategies
Research task on IT
•Find out how much is spent on R&D in the US/UK
•What are the major R&D companies / industries?
•What is R&D money being spent on?
•Find R&D as a percentage of GDP (UNDP) Human Development report 2008
Unit 3: Strategies for success
Operational strategies
R&D as a percentage of sales in some UK manufacturing industry sectors
1995 2000 2001 2002 2003 2004 2005
Pharmaceuticals 28.0 35.9 35 36.1 32.5 34.2 33.3
Aerospace 11.3 8.5 10.7 11.8 14.1 16.9 22.2
Electrical
Machinery
3.6 3.8 4.1 4.8 4.7 4.3 4.2
Chemicals 2.5 2.6 2.0 2.4 2.4 2.3 2.6
Motor vehicles 2.5 3.2 8.4 2.9 3.4 2.5 2.0
Mechanical
Engineering
1.6 1.7 2.3 Na Na Na Na
Other
manufacturing
0.5 0.6 0.6 0.5 0.7 0.5 0.4
Unit 3: Strategies for success
Operational strategies
How does Innovation / R&D achieve operational objectives
Innovation
In pairs use the worksheet to brainstorm
how some of the firms you identified in
your research might use innovation / R&D
to achieve these targets
Operational objectives:•quality•cost targets•volume targets• innovation•efficiency •environmental targets
Unit 3: Strategies for success
Operational strategies
A UK government survey showed the main factors limiting innovation: • innovation costs• economic risks• costs of finance• government regulations• availability of finance• market dominated by established business• uncertain demand
Operational strategies: innovation
R&D & business
performance
Unit 3: Strategies for success
Operational strategies
R&D as percentage of GDP 2006
1 Sweden 3.8
2 Finalnd 3.5
3 Japan 3.1
4 South Korea 2.6
5 Switzerland 2.6
6 US 2.5
7 Germany 2.5
8 Denmark 2.4
8 Austria 2.4
9 France 2.1
10 Canada 1.9
11 UK 1.8
If R&D is such a good thing why
doesn't the UK spend
more on it?
Unit 3: Strategies for success
Operational strategies
A UK government survey showed the main factors limiting innovation: • innovation costs• economic risks• costs of finance• government regulations• availability of finance• market dominated by established business• uncertain demand
Explain why each of these factors might limit a firm’s level of
innovation and R&D.
Operational strategies: innovation
Unit 3: Strategies for success
Operational strategies
Impact on other parts of the business
Lets review the issues that
came out of the video
Google is built on innovation what impact does this have on the way
they manage staff?
Unit 3: Strategies for success
Operational strategies
Impact on other parts of the business
Innovation
1. What other areas could be impacted by a
company strategy to pursue innovation?
2. How would they be affected and why?
Draw a mind map to illustrate how other areas
are impacted
Unit 3: Strategies for success
Operational strategies
Impact on other parts of the business
Innovation
Finance
Marketing
HR
Unit 3: Strategies for success
Operational strategies
Homework
AstraZeneca case study Qs 1&2
Unit 3: Strategies for success
Operational strategies
Plenary
•Identify the business activities that fall within the description of
Innovation
•Explain two benefits and two problems of innovation and R&D
•Analyse the implications of innovation on other functional areas
•Analyse the factors that influence the level of spend on R&D and
Innovation