Topical 02: Explain one way in which operational management decisions might add value to a product.

[Sir Afzal Shad]

Explain one way in which operational management decisions might add value to a product. [5]
Topical Past Paper Question 02

Answer
[KN] One way in which operational management decisions might add value to a product is through the implementation of quality control measures.

[AN] Operational management can identify and address potential defects, errors, or inconsistencies in the production process before products reach the customer.

[AN+] This helps minimize the risk of product recalls, returns, and customer complaints, which can damage the brand reputation and result in financial losses for the business.

[AN+] Additionally, a reputation for high-quality products can differentiate the company from competitors, enhance brand loyalty, and attract new customers.

[AN+] Customers are willing to pay a premium for products that they perceive as being of superior quality, which can lead to increased sales and profitability for the business.

--- Example for understanding, not to include in answer ---
For example, a smartphone manufacturer that implements stringent quality control measures to ensure that each device meets performance and reliability standards can command higher prices and enjoy a loyal customer base, leading to increased market share and profitability.