HSC BUSINESS STUDIES 2019

Operations
The focus of this topic is the strategies for effective operations management in large businesses.
Role of Operations Management
1. Role of Operations Management
 Operations refers to the business processes involving transformation or production of inputs into outputs.
 Businesses try to minimize production costs so retail prices are as low as possible.
 Operations management is concerned with those business activities that plan, schedule and control the
business inputs that are transformed into finished goods and services.
 Effective operations management adds value to businesses through increasing productivity, lowering costs &
improving quality, strategic competitive advantage through lower costs & differentiated goods

A. Strategic role of operations management

Businesses must compete in a market where consumers can easily purchase the goods and services of their
competitors. As a result, businesses must develop a competitive advantage over their business rivals. Three
strategies include:
(i) Cost leadership
- Involves aiming to have lowest cost or be most cost competitive in market
- Operations managers must also minimize costs so business remains profitable
- Should create economies of scale = producing increased quantities decreases fixed cost per unit
- Market share is gained by appealing to price-sensitive customers by providing them either with the lowest
price in the target market or the lowest price compared to the value customers received.

Example Case study: KMART

A strategy where a business aimed at obtaining an advantage over its competitors by being the lowest cost
manufacturer within its industry was KMART. Their EBIT (earnings before interest and tax) improved and was
better than David Jones in 2012. This was achieved by:

1. Stopped buying merchandise such as bonds from pacific brands

2. Used their own designed merchandise and had it made in low wage countries e.g. China, Bangladesh, Vietnam and
Indonesia tended for the work.
3. Minimised expenses in things like the supply chain

Low cost can be achieved through economies of scale: Small profit margin + high volume of sales = revenue

- Economies of scale = more units produced the cheaper each unit produced becomes
e.g. bulk buy for lower cost per unit or ↑ production with tech/machinery
Areas where low cost may be achieved:

 Outsourcing product serving so businesses focus on core function.

 Exclusive access to a large number of low-cost inputs.
 Distributing the product using dealers who work with lower profit margins.
 Maximise efficiency (minimise waste and saving time).
 Using technology.
 Produce faster

Disadvantages

 Competitors can use the same strategy to achieve lower costs as small businesses are able to reduce costs
faster.
 Businesses’ products are not perceived to be equal to competitors.
 Changes in technology could affect a business that has invested into low cost manufacturing.
 Some businesses still cannot make profit because of failures to keep up with competitors.
 (ii) Good/service Differentiation
- Offering goods or services distinguished from those of competitors
- A differentiation strategy is likely to be used successful where the market is competitive or customers have highly
specific needs for which they are willing to pay a premium. May achieve a larger market share because it is
different.
- Differentiation sources in goods:
 Product features
 Product quality
 Varying augmented features (add-ons or additional benefits e.g. option for built in GPS in a car)
- Differentiation sources in services:
 Amount of time
 Qualifications or experience of service provider
 Quality of materials/technology used in service delivery
- Differentiation created through cross branding or strategic alliances e.g. Woolworths-Caltex. Adds
value to products by offering consumers additional benefits from purchasing a product

B. Goods and services in different industries

- The character, range and type of products will shape the nature of the operations process.
 Standardised goods = mass produced, usually on an assembly line. They are uniform in quality & generally
produced with a production focus.
 Customised goods = vary according to customer needs & produced with a market focus.
 Services can be both standardised & customized (e.g. fast food standardized whereas accounting services are
customized)
 Goods can also be classified as perishable and non-perishable:
Perishable goods Non-perishable goods
 High standards of safety, quality &  More durable than perishables
cleanliness in all operating processes  Includes household and business
 Very short distribution goods
 Appropriate, sturdy packaging & cold  Requires effective inventory
storage management

Services – non-tangible
Manufacturing outputs - tangible Commented [jc1]: Tangible: Asset that has physical form
C. Interdependence with other key business functions
Marketing
- Research nature of goods consumers want
- Marketing strategies to encourage purchases
Human resources
- Provide suitable staff & organize training based on requirements of operations
- Uses leadership style + rewards to ensure quality work is done by employees in operations
Finance
- Budgets & makes funds available for inputs, equipment, repairs/ maintenance.
- Minimizes production costs to maximize profit margins

- M must understand the capabilities and limitations of O during product design

- O produces that satisfy the wants and needs of the target market (M)
- F will make funds available to purchase inputs (O)
- O need to minimise production costs to increase profit margins (F)
- Investing in facilities and tech (F) can lead to faster processing speeds and less waste (O)
- O aims to produce high quality products that can be sold at high prices  high revenue (F)
- HR trains staff based on the requirements of O
- HR will have to manage employees that have been made redundant through changes in O
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2. Influences

A. Globalization, technology, quality expectations, cost-based competition,

government policies, legal regulation, environmental sustainability
(i) Globalization - Refers to the removal of trade barriers between nations.
- Characterized by increased integration of national economies & high flow of
money, labor, ideas, financial resources.
- Large businesses selling to global markets and meeting needs of global
customers
- Globalization creates new risks e.g. currency fluctuations, new competitors.
- Businesses establishing global supply chain to reduce costs:
 Global web = network of supplier’s business has chosen on basis of
lowest cost, lowest risk and maximum certainty in quality & timing of
supplies.
(ii) Technology - New technologies in production and operations has allowed for less energy,
less waste and faster production
- Administration tech assists with organization, planning and decision making
- e.g. Gantt chart, CPA, computers, telephone system
- Processing tech used in manufacturing, logistics, quality, inventory and
supply chain management.
- e.g. large machines used in assembly lines, robotics, CAD, CAM, CIM
- Improves communication and efficiency
-
- Robotics allow for greater precision in sophisticated production processes
and also easy standardization of products
 Includes CAD & CAM
(iii) Quality - Quality: How well designed, made and functional goods are and the degree
expectations of competence in which services are organized and delivered.
- Goods:
 quality of design
 fitness for purpose
 durability
- Services:
 professionalism of service provider
 reliability of service provider
 level of customization
- Key expectations:
- Goods: quality of design, fitness of purpose, durability
-Service: professionalism, reliability, customization
- Level of satisfaction will indicate whether quality has met expectations
(iv) Cost based - Derived from determining breakeven point then applying strategies to create
competition cost advantages over competitors.
- Base cost of a product involves fixed and variable costs
 - Ways to cut costs include purchasing bulk inputs, updating technology or
standardizing products.
(v) Government - Since policies can inform law making and lead to business opportunities,
policies operations mangers need be aware of current government policies and what
they comprise
 Includes required materials handling practices, OHS standards, public
health polices, environmental policies
(vi) Legal regulation - Compliance costs = expenses associated with meeting requirements of legal
regulation
- Federal and state law ensures:
 Safe operations (e.g. WHS in machinery use)
 Consumer protection (product minimum safety/quality standards)
 Minimal environmental impact
- Unions also play a key role in promoting safety in workplace operations as
well as industrial awards
(vii) Environmental - Practices that allow resources to be used today without compromising future
sustainability access
- Significantly impacted by climate change awareness and the need to
integrate long-term sustainable view of resource management.
- This can be seen in businesses efforts to reduce and minimize waste; recycle
water, glass, paper metals & reduce their carbon footprint.

B. Corporate social responsibility

 CSR: open and accountable business actions based on respect for people, community & the broader
environment  more than following the law and complying with regulations.
 Triple bottom line is crucial to CSR = business try to achieve all three aspects:
 profit
 social justice
 environmental protection
(i) The difference between legal compliance and ethical responsibility
- Legal compliance requires a business to abide by the minimum requirements set out under the law
whereas ethical responsibility sees a business meeting the minimum requirements and taking it
further by acting on social and environmental concerns
- Variation in laws between countries can make it hard to know what is ethical. Businesses may choose to
follow ethical standards from ILO (international labour organisation).

- A bus shows it values more than just profits by spending money to address these concerns
- Some areas of compliance that shape business conduct:
 Labour - minimum wages, working hours, WHS, workers compensation
 Human rights – discrimination
 Environmental and public health – pollution, waste disposal
 Taxation
- Regulatory differences between nations means compliance requirements differ
- Offshore outsourcing can reduce compliance costs e.g. lower tax, no WHS - ethical issue
- Differing laws/regulations between countries – can be hard to know how to be ethical
- Bus should consult with specialist interest groups or follow guidelines of international bodies e.g. International
Labour Organisation (ILO) standards
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(ii) Environmental sustainability and social responsibility

Environmental sustainability
- Requires business to evaluate full environmental effects of their operations
- Growing expectation that products should be “clean, green, safe” so businesses have been
- Businesses expected to adopt greenhouse reduction measures & develop long-term sustainability
strategies
Social responsibility
- Management of social environmental & human consequence of its actions.
- Customers may stop buying if they discover a business exploits its customers, however they will reward SR
businesses by purchasing more

3. Influences

A. Inputs
- Inputs are resources used in the transformation process
 Four common direct inputs: labour, energy, raw materials, machinery & technology
 Transformed: inputs changed or converted in the operations process.
 The resource that give the operations process its purpose or goal.
 Two types of inputs:
(i) Transformed resources (ii) Transforming resources
Materials Human resources
Basic elements used in the production process, Effectiveness of HR determines how successful
consisting of raw materials and intermediate transformation & VA occurs.
goods.
Facilities
Information Refers to plant (factory/office) and machinery
Knowledge gained from research, investigation used in operations process.
and instruction, which result in increased
understanding.
 external (ABS, media
reports) or internal (financial
reports, production data)

Customers
Their choices shape inputs.

Capital-labour: machinery and tech displace people

 B. Transformation processes
Transformation: The conversion of inputs (resources) into outputs (goods + services)
Transformation processes: activities which determine how value will be added
Differs between manufacturing + service businesses:
i. Manufacturer - transforms inputs into tangible products
1. Usually mechanised - machinery, robots + computers
ii. Service organisation - transforms inputs into intangible products
Transformation processes and value adding
Addition of costs + inputs during transformation adds value
Cost - related to value
Processes incur costs (financial expense)
Expense → value creation
Value added through:
Physical altering of inputs
Transportation of goods or services
Protection _ safety measures
Inspection
C. Operations manager - selects optimal process by considering WHS, maintenance requirements,
employee availability, + other factors

(i) 4Vs influences (volume, variety, variation in demand, visibility)

Volume
- Amount of good or service to be product
- Volume flexibility = how fast transformation process can adjust to increases or decreases in demand.
- Responsiveness to required changes in volume is essential to effectively managing lead times (time taken
for order to be fulfilled)
- Lead times: the time it takes for an order to be fulfilled from the moment it is made.
- Quickly adjust to changes to avoid surplus = waste, increase inventory costs or shortfall=lost of sales.

Variety
- Mix flexibility: mix of products made/services delivered.
- Number of different models/variations a product or service offers
- Greater the variation made, the more the operations processes need to allow for variation
 low variety will allow business to produce high-volume of a standardized product for cost)

Variation in demand
- How much of the product is needed  increased demand requires more inputs from supplier, increased HR,
machinery & energy consumption
- ↑ demand = ↑ inputs, labour, machinery, tech, energy use
- ↑ demand may be hard to meet if suppliers cannot supply quickly, labour is not flexible, machinery
cannot adjust to capacity, ↑ energy and power are not able to be readily sourced
- ↓ demand = ↓ staff hours, slow production to avoid inventory build-up, supplier pressure
- Businesses try to forecast demand and act accordingly e.g. xmas toy sales, heaters in winter
Visibility (customer contact)
- Visibility is the degree in which customers can see and be involved in the operations process.
- Customer feedback/preferences shapes what the business makes
 HSC BUSINESS STUDIES 2019

 Direct contact: surveys, interviews, warranty claims, letters, blogs, verbal

 Indirect contact: review sales data as it indicates customer preferences, consumer reviews
- Degree to which customers can witness the operations process
 Low visibility = manufacturing
 High visibility = service-based
(ii) Sequencing and scheduling – Gantt charts & critical path analysis
- Scheduling and sequencing tools are used to identify all steps in the operations process and organize them into
the most efficient order to complete.
- Sequencing: Order of activities in the operations process.
- Scheduling: Length of time activities take within the operations process.

Gantt chart  bar chart that shows both the scheduled and completed work over a period of time. It is often used
in planning and tracking a project.

- Outlines the activities needed to be performed, the order in which they should be performed and how long each
activity is expected to take.
- Advantages:
 Force managers to plan the steps and to specify the time required for each activity
 Make it easier to monitor actual progress against planned activities

Critical path analysis (CPA)  flow diagram showing the interrelationship of tasks as all tasks must be
completed for the project to be finished, the critical path is the longest path taken to complete the whole project.
 *ALWAYS CHOOSE THE LONGEST ROUTE

(iii) Technology, task design and process layout

Technology
- Up-to-date office and manufacturing technology help businesses remain competitive
- Many products designed and assembled using CAD and CAM
- Technology allows businesses to relocate dangerous or repetitive tasks away from employees
- This has enabled more efficient production, although technology is expensive it is usually more cost effective long
term.
Task design
 Breaking down a large task into smaller, manageable activities
 Employees therefore able to perform and complete the task successfully.
 Involves job analysis & can be done after conduction of a skills audit.
 Task Design  Job Description  Person Specification  Recruitment  Selection
 Task analysis is to see whether tasks can be done more efficiently

Process layout
- Arranging machinery according to what they do  product moves from department to department
- Allows for more flexibility & customization of the product
- Bus must consider the best layout to ensure:
 Enough physical space for the projected volume
 Effective use of equipment and tech
 Adequate location of stock and warehousing
 Work enviro conforms with legal requirements (WHS)

PROCESS LAYOUT
- Machines/equip grouped together by the function they perform e.g. hospital ICU maternity
- Process production: high-variety low-volume production
- Each product has a different sequence of production; machines arranged according to sequence

PRODUCTION LAYOUT
- Product production: manufacture a high volume of constant quality goods e.g. assembly line
- Equip arrangement relates to the sequence of tasks performed in manufacturing a product
- Work stations are arranged to match the sequence, work flows from station to station

FIXED POSITION LAYOUT

- Project Production: large scale, bulky activities e.g. building construction
- Product remains in one location due to its weight or bulk
- Employees, materials and equipment come to the product

OFFICE LAYOUT
- Efficient (minimal disruption), smooth workflow in a safe office environment
- Organized around workstations - desk areas with access to a computer, keyboard, phone etc
- Tailed for bus needs e.g. patients want privacy so layout of surgery reflects this
 HSC BUSINESS STUDIES 2019

(iv) Monitoring, control and improvement

Monitoring
- Monitoring: measuring actual performance against planned performance – op effectiveness.
- KPI’s relate to quality, speed, dependability, flexibility, customization and costs.
- Arranged around need to measure KPI's such as lead times, defect rates, inventory turnover

Control
- Assessing KPIs (key performance indicators) against predetermined targets and taking corrective action if
required.

Improvement
- Refers to the reduction of any inefficiencies and wastage, poor work processes and the elimination of any
bottlenecks
 *bottleneck = aspect of operations that delays improvement usually sought in quality, speed, dependability,
flexibility, cost improvements.
 Time: minimise bottlenecks, wait times etc.
 Process flows: smoothness of transitions between processes
 Quality: change standards, assess returns and warranty claims
 Cost: review expenses, assess per unit costs of production/delivery, find cheaper ways
 Efficiency: reduce waste, more output per unit input

D. Outputs
- Output: end result of business efforts – product that is provided or delivered to the customer.
- More subtle outputs that come with the good or service:
(i) Customer service
- Refers to how well the business can meet expectations of customers.
- Operations management is responsible for the provision & quality of the product, if customers are disappointed in these
things they will go elsewhere.
(ii) Warranties
- A promised made by a business to correct defects in products.
- Legally, all products must come with a guarantee it will serve its advertised purpose.
- Many businesses when selling a product over a certain value will offer written warranty valid for a period of time.
- Number of warranty claims will indicate whether transformation process requires adjustment

4. Operation Strategies

Performance Objectives
- Strategies are the actions taken by a bus to achieve its goals/performance objectives
- PO have targets and will be measured against the achievement of those targets (KPIs)
- PO may be based on past performance/objectives, competitors, industry standards
- Helps businesses becomes more efficient, productive and profitable COMPETITIVE ADVANTAGE!
 A. Performance objectives (i) Quality
- Often determined by consumer expectations which are inform production
standards.
- Objectives include: quality of design, quality of conformance, quality of
service.
- Quality of design: how well the product is made or service is delivered.
- Must understand consumer expectations and preferences.
- Generally high-quality inputs and processes = high quality outputs = high
prices
- Quality of conformance: how well the product meets the standard of a
prescribed design with certain specifications e.g. toy meets low quality
specifications = high conformance
- Quality of service: how reliable, suitable (meets specific customer’s needs)
and timely it is.
- Requires changes in input levels + processing times can be made in response
to demand
-
(ii) Speed
- Time taken for production and other operations processes to respond to market
demand. It aims to satisfy customer demands as soon as possible.
- Speed goals include: reduced wait times, shorter lead times, faster processing times.

(iii) Dependability
- How long products are useful before they fail  measured by warranty claims
- Consistency of service standards and reliability  measured by number of complaints

(iv) Flexibility
- Refers to how quickly operations processes can adjust to changes in the market.
- Flexibility best achieved by increasing the capacity of production or for services,
increasing the number of service providers.

(v) Customization
- Refers to creation of individualized products to meet specific customer needs.
- Production of many goods now based on mass customization (process allowing
standard, mass-produced items to be customized e.g. cars)

(vi) Cost
- Minimization of expenses so operations processes ae conducted as cheap as possible.
- Can lower costs by acquiring new technologies, use inputs better and minimize
wastage, reducing supplier/inventory/distribution costs

B. New product or service design and development

- Two different approaches that determine product design and development:
 HSC BUSINESS STUDIES 2019

 Consumer approach – preferences and desires of consumers identified in market research determine which
products are designed and developed.
 Changes and innovations in technology – enable new appealing products to be made with greater
functionality.
- Steps in product design and development:
Production,
Product
Market Prototype product
design and Product and
research, testing and launch,
prototype production
product assessment distribution,
with quality processes
concept and (and market eventually
parameters refined
specification testing) product line
decided
extension

- Important considerations for new products

 Quality - customers demand a level of quality, certain attributes and features
 Supply chain management - may ↑ suppliers, change timing or volume of supplies
 Capacity management - ↑ use or range of resources, require new tech and machinery
 Cost - inputs, time and energy
- Product utility: usefulness and value a product has from a consumer’s point of view

SERVICE
- Services are mainly Customised with the client as the starting point in design e.g. lawyer
- Some are standardised - have none or limited interaction with customers e.g. petrol station
- Tech breakthroughs help deliver services e.g. surgeon uses swabs, bandages etc.
- When designing, the explicit and implicit service required must be considered
 Explicit service: tangible aspect e.g. the application of time, skill, effort
 Implicit service: intangible feelings experienced e.g. satisfaction
- As the service is delivered the customer should feel they have been specifically catered for

 Global sourcing
- Sourcing (procurement): purchasing inputs for the transformation process
- Factors influencing choice of suppliers:
 Consumer demand - volume required
 Quality required
 Flexibility and timeliness
 Cost of supplier
- Global sourcing: purchasing supplies or services without being constrained by location
Sourcing from wherever the suppliers are that best meet the sourcing requirements

 E-commerce
- Many bus use online systems (e-procurement) to manage their supply chain
- Suppliers have direct access to a business’s level of supplies so if stock falls to a predetermined point the supplier
will supply without a formal request to do so - B2B arrangements
- Many consumers are now using e-commerce effecting the supply chain
- Bus may opt to sell directly to consumers over the internet in B2C transactions
- Due to the diversity of ordering options businesses must exchange info frequently so accurate stock levels can be
presented to customers
- Cheaper, efficient, allows smaller bus to compete but can be risky

C. Supply chain (i) Logistics

management - Focuses on moving inputs, resources and outputs through supply chain as fast as
possible. Involves:
 Distribution and modes of transportation
 Storage, warehousing & distribution centers
 Materials handling & packaging
(ii) E- Commerce
- Enables businesses to source through online links to suppliers through business-
to-business processes and also enables customers direct access to products
through business-to-consumer processes

(iii) Global sourcing

- Business seeks to find most cost-efficient location for manufacturing a product
- Expansion of supply chains over national boundaries

D. Outsourcing (i) Advantages and disadvantages

Advantages
- Business able to focus on core processes
- Access to expert, high quality services
- Less capital expenditure and increased cost effectiveness (e.g. training costs)
- Flexibility to change third party vendors

Disadvantages
- Less managerial control
- Difficulty in achieving and maintaining quality standards
- Security and confidentiality issues (e.g. if outsourcing payroll or HR)
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E. Technology (i) Leading edge

- Technology that is most advanced or innovative at any point in time
- Helps businesses create products quicker & to higher standard, with less waste and more
efficiency.
(ii) Established
- Technology that has already been developed and is used without question.
 e.g. IT for administration, robotics for complex manufacturing, barcoding & point-
of-sale (POS) data for inventory management

F. Inventory (i) Advantages and disadvantages of holding stock

management
Advantages
 Ensures customers served quickly &
dependability of delivery
 Bulk purchases = cheaper
 Older stock can be sold at reduced
price  encourages cash flow
 Ensures sufficient back up stock
Disadvantages
 Capital intensive = dead cash
 Holding costs (storage, insurance)
 Risk of stockpiled goods passing use
by date

(ii) LIFO, FIFO, JIT

LIFO  last in first out
- Stock purchased most recently is sold first (used for goods with no use-by-date e.g.
canned goods, machinery parts)

FIFO  first in first out

- Oldest stock sold first (ideal for perishables)

JIT  just in time

- Holding as minimal stock as possible and only bring in stock from suppliers as required
 increases liquidity of working capital as less cash tied up in inventory
 reduced costs of storing and securing stock

G. Quality Quality management refers to processes a business undertakes to ensure consistency,

management reliability, safety and fit for purpose of a product.
(i) Control
- Reduces problems and defects through inspection at various points during production
- Pre-determined quality targets are set for all products to meet
- May require that labor be trained to apply these standards throughout working process
(ii) Assurance
- Involves use of a system to ensure set standards are achieved in production.
- Measurements are taken and assessed against standards.
- Aspects important to QA include:
 Fit for purpose
 Achieving right the first time (so re-working isn’t required)
(iii) Improvement
- Focuses on two aspects:
 Continuous improvement  businesses ongoing commitment to improving its
goods/services
 Total quality management (TQM)  managing the total business to deliver
quality to customers; requires benchmarking, employee empowerment, a focus on
the customer and continuous improvement.
H. Overcoming Financial costs
resistance to change  Main financial costs associated with change include purchasing new equipment,
redundancy payments, retraining & reorganizing plant layout:

(i) Purchasing new equipment

- Purchase of equipment expensive however cost can be recovered through use (adds value
in transformation processes) and depreciation.
- Can achieve
 Improved processing speeds & shorter lead times
 More consistency in production
 Higher overall quality of products
 Reduced waste and losses from equipment failure
(ii) Redundancy payments
- Money given to employees when they are forced out of work due to their job skills no
longer being relevant. Payment depends on:
 Duration working for the company
 Level of pay they were on
 Amount of unused leave
(iii) Retraining
- May occur when job roles change requiring employees to acquire different work skills.
- Purchase of technology may also involve training or retraining on new software.
(iv) Reorganizing plant layout
- Requires extensive reorganisation of the layout within the facility; high costs can occur
when reorganizing.

Psychological resistance to change - inertia

- Internal stakeholders such as owners, managers and employees can become too
comfortable in a stable environment  major reason for resisting change
- Strategies to overcome resistance include retraining programs, work teams & a flatter
management structure.

Inertia
- Inertia: psychological resistance to change
- Uncertainty or fear of the unknown
- People may fear they will lose their jobs, find new tech intimidating etc

Strategies to overcome resistance to change

- Bus must anticipate and adapt to constant changing circumstances – not be unprepared!
- Be proactive (initiate change rather than react to events)
- To be constructive changes must:
1. Occur at an pace which can be absorbed by and integrated into the bus
2. Be evaluated to assess their overall impact
3. Be introduced into a workplace culture that supports employee participation

Change management strategies

- To manage change effectively business must:
1. Identify the source of change and assess whether processes need to be adjusted
2. Lower resistance by communicating with ees about the need for change, support
3. May need to use a change agent to assist in creating a culture of change
4. Apply change models such as Kurtz Lewin’s unfreeze-change-refreeze model
-
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I. Global factors (i) Global sourcing

- Sourcing goods and services from across national boundaries
- Often to access cheap skilled labour, cheap materials, tax breaks and low trade tariffs.
- Global web = strategy where business sources inputs, labour and finance from the
cheapest countries and distributing them to any nation that demands them.

-
(ii) Economies of scale
- Refers to cost advantages that can be gained by producing on a larger scale. It becomes a
global factor when businesses sell to global markets
(iii) Scanning and learning
- Scanning the global environment and learning the best practices
- May come from management journals, conferences, industry and business associations
(iv) Research and development
- Helps businesses create leading edge technology & innovative products and processes
- Global businesses often have extensive R&D facilities in many countries
- Investment in R&D is investing in competitive advantage