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 F H I K J F

Unit 3: Strategies for success Operational strategies Operational Objectives: Quality Cost targets Volume targets Innovation Efficiency 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… Copyright Copyright protects material, such as literature, art, music, sound recordings, films and broadcasts. Designs Designs protect the visual appearance or eye appeal of products. Patents Patents protect the technical and functional aspects of products and processes. Trade Marks Trade 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 Pharmaceuticals Aerospace Electrical Machinery Chemicals Motor vehicles Mechanical Engineering Na Other manufacturing

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 Sweden3.8 2Finalnd3.5 3Japan3.1 4South Korea2.6 5Switzerland2.6 6US2.5 7Germany2.5 8Denmark2.4 8Austria2.4 9France2.1 10Canada1.9 11UK1.8 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