1- Operations are about transforming inputs into outputs and generate revenue to
maximize the owner’s wealth. In doing so production must satisfy the need needs
of customers, who put quality, customization and price. But success goes beyond
quality. It requires understanding that quality like cost is like-for like competition.
That is why operations strategy must be in line with financial objectives of the
firm. What are your thoughts on this?
2- Let me add one important point that Without the integration between the
operation management and financial management the operations would be done
in blindness. Rauch (2012) concludes that “Finance is what keeps the
organization going and poor operational strategies and decisions without
considering finance will cause problems and may even end up in bankruptcy”.
One of the keys to be successful in business is the co-operation between
operations and finance, striving for the same goal, clear communication and fast
response. What is your view point on this?
3- Let me add that all these strategic decisions need to be mindful of the financial
implications and the required finance to make the operational strategy happen.
Operational strategy is directly related to finance in that the finance available
informs the actions to be taken and the outcomes of the processes undertaken
result in operating profits or losses which in turn affect the operations
management in the future in a cyclical manner. What are your thoughts on
these?
4- Let me add that it is evident that without integration with accounting/finance,
decision-making in the above mentioned areas is impossible. Poor operation
strategy and decisions, adopted without considering finance, can easily ruin a
company. Do you agree with this?
5- Can you further add some real business example to your concluding statement
” Above three basic functions are fundamentally existing in all organizations, no
matter the organization is a private firm, a government agency or a not-for-profit
organization. “?
6- The inefficient management methods employed by most banks that have gone
bankrupt in the recent times is as a result of such pressures, unethical practices
such as granting loans without much documentation and collateral had to be
employed to save them from disgraced among their other competitors in the
industry. It is usually a risk and there is this belief that in business risk is
necessary to survive,for some it pays off while for some it does not. What is your
opinion on these points?
7- Generally, organizations which embraced the power of IT see a significant
improvement in terms of operations against the financial budget. Most
importantly, automation has been widely encouraged by organizations which aids
in better return of investment and cost reduction in operations since it is able to
detect and minimize, if not eliminate defects and/or waste efficiently.What are
your thoughts?
Let me add that operations primary goal is productivity and delivery of the best possible
goods and services. McNamara (2009) stated “Operations management focuses on
carefully managing the processes to produce and distribute products and services.”
Productivity must be managed at the lowest possible input cost to control output cost
providing the consumer with lower prices. Balancing the input and output costs is a
challenge. Operation expenses and overhead cost quickly add up and consumers of
today expect high quality and low prices. Finance and accounting are great benefits in
analysis of inputs and outputs and help identify how the business can achieve the
highest level of performance from all operations activities such as “managing purchases,
inventory control, quality control, storage, logistics and evaluations.” (McNamara, 2009).
How will you comment on these statements?
Let me add that managers need the ability to see the financial consequences of their
operational plans and optimizations. Methodologies such as Economic Value Added
(EVA) and performance indicators such as Return on Capital Employed (ROCE) are
designed to help managers understand that financial resources are limited and that
capital should be deployed where the return is highest. Also, since financial results are
the bottom line for every single business function and domain, managers can use them
as benchmarks to compare results from various parts of the organization. What do you
think about it?
Minimum 250 words in each answer with one academic reference for each Q with
Harvard style
