CMA Intermediate · Operations Management and Strategic Management · Designing of Operational Systems and Control
Which of the following is best described as a core objective of the operations function in terms of competitive priorities?
The operations function aims to deliver the required quality, cost, speed and flexibility to customers. These are the standard competitive priorities of operations, whereas raising funds and deciding dividends are finance functions and adding management levels is not an objective.
- ADelivering the required quality, cost, speed and flexibility to customersCorrect
- BMaximising the number of managerial levels
- CRaising funds through equity issues
- DDetermining the dividend payout ratio
Explanation
Operations contributes to competitiveness through quality, cost, delivery speed/dependability and flexibility. Fund raising and dividend policy belong to finance; managerial levels are not an operations objective.
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