Unit 3: Strategies for success Operational strategies Resources Books Google video worksheet and answer sheet Worksheet table Student slide handout Astra

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





Log on!



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



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



Match the invention and innovation

A

C

B

D

E

G

F

H

I

K

J



Match the invention and innovation

A

C

B

D

E

G

FH

IK

J

F



Operational Objectives:Quality

Cost targetsVolume targets

InnovationEfficiency

Environmental targets

Scale

Location

Lean Production

Resource Mix

Innovation



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.



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!



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!



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



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



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



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


R&D & business

performance



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?



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.




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?




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




Innovation

Finance

Marketing

HR



Homework

AstraZeneca case study Qs 1&2



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

Documents

Unit 3: Strategies for success Operational strategies Resources Books Google video worksheet and answer sheet Worksheet table Student slide handout Astra