With reference to the below hypothetical business scenario, please answer the following questions. (Please note: this is for NSW Year 12 HSC homework)

Business Scenario:

Tinker Toys Ltd are a Sydney-based company who have all their products produced in India and China. They have recently shifted to predominantly selling their products on an online platform worldwide as well as in shops around Australia. The management team have recently launched a new range of electronic toys that will allow unlimited access for children (Ages 5-10) to social media.

Their sales have been exponentially growing since the company was first founded in 2016. However, now it is facing difficulty in maintaining customer satisfaction, particularly with a larger proportion of products being purchased online.

Some concerns for Tinker Toys Ltd now are:

• Managing the technological advancements required of their new technological toys.
• Media backlash over parental concerns related to social media access for this age group.
• Ensuring that inefficiencies and defects are eliminated in the production of their new product

Focus Topic: OPERATIONS

Questions:

1. Outline ONE advantage and ONE disadvantage of outsourcing part of the manufacturing process overseas.

2. Describe TWO ethical issues that Operation Managers at Tinker Toys Ltd should consider for this new range of electronic toys.

3. Recommend TWO strategies that Tinker Toys Ltd could implement to improve their efficiency.