The problems at NTM began several years ago when the previous chief executive took the decision to double production capacity. He could not have foreseen the worldwide recession and how this would reduce the demand for the textiles made in the factory. The following figures tell their own story and the cost impact on the business is now serious:

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text { Maximum capacity (million metres) } & 5 & 5 & 5 \\ \hline \text { Actual annual output (million metres) } & 4.0 & 3.7 & 3.0 \\ \hline \text { Selling price per metre } & \$ 3 & \$ 3 & \$ 2.7 \\ \hline \text { Annual fixed costs } & \text{ \$3m } & \text{ \$3m } & \text{ \$3m } \\ \hline \text { Variable costs per metre } & \$ 2 & \$ 2 & \$ 2.2 \\ \hline \end{array}$$

Calculate the capacity utilisation rates for Nassau in each of the three years.

Define the term ‘joint venture’.

Define the term ‘sustainable operation’.

With reference to one organisation that you have studied, examine the importance of innovation in different production methods.

With reference to one organisation that you have studied, examine the impact of innovation and ethics on crisis management and contingency planning.

Define the term ‘contingency planning’.

Evaluate whether mass customisation is a production method that should be adopted by all businesses.

Explain what is meant by ‘operations management’.

Senior management at Nissan were initially reluctant to build the new Qashqai at their Sunderland factory. However, a UK government grant of $\pounds3.26$ million helped to clinch the decision to invest a total of $\pounds95$ million into the new production facilities at this factory in the north of England. It secured $250$ jobs in this area of high unemployment.

Outline two benefits the regional economy would gain from Nissan's location in Sunderland.

What would be meant by the term ‘optimal location’ for a new Walmart supermarket?

Define the term ‘research and development’.

‘JIT is something of an exception. The cultural differences between countries are so strong that it is impossible for the management techniques of one country to be used effectively in another.’

Using a case study you have studied, discuss the validity of this statement.

Define the term ‘JIT stock control’.

Explain, with examples, the difference between invention and innovation.