Business Operations and Management

This document provides an overview of business operations and management, focusing on the meaning of business operations and the main functions involved. It also includes a brief description of Mercedes Benz and analyzes the company's business operation management decisions. The findings and conclusions of the analysis are also discussed.

Business Operations and Management
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Explanation of meaning of business operations..........................................................................3
Main functions of business operations........................................................................................4
Brief description of Mercedes Benz............................................................................................6
Analysis of company’s business operation management decision600........................................6
Findings.......................................................................................................................................8
CONCLUSIION..............................................................................................................................8
REFRENCES...................................................................................................................................9
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INTRODUCTION
Business operation and management is a systematic procedure of planning directing and
controlling operational functions of an business organization. Managing business activites is vital
part for manger as business operations are the main part of entity and success of business
organization is truly depend on the skills of mangers to maintain coordination among all function
of business. In order to understand the concept of business operations and management Mercedes
Benz has been taken. It is most popular company of auto mobile sector in all over the world.
Mercedes manufacture car, bus, truck, sports car. The company is famous for providing
luxurious products and service to their customers. In this report meaning of business operation
and functions included in operational activites has been classified and it also covers essential
managerial decision take by organization to run their activites successfully has been analysis.
TASK1
Explanation of meaning of business operations
Business operations refer as activities and actions taken by organization on their daily routine to
earn financial gain by their daily routine activites. Management is process of planning,
organizing directing and controlling activites to run business organizations successfully.
Thus business operation and management is a systematic process of managing daily activites
of a running business organization in order to maximize profit by minimizing cost of
producing, selling, and distribution related activites. In other words, it is a strategic tool used
by mangers of the business entity to achieve competitive advantage by enhancing day to day
activites of company (Cho and Chan,2015).
Business operations and management play essential part for an organization as success of
business depends on how efficiently mangers control and mange their daily routine active,
how they coordinate between all department as each department depends on another and it is
necessary required to manage all these activites to archive predetermine goal of company.
Business operations and management covers all the part of organizing meetings,
conversation with employees, supervising and directing people, training, recruitment,
promotional, marketing activities which will help in run day today business activites.
Managers of an organization considered all these part and then built effective plans and
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policies through which they manage their operational activites. With the implementation of
effective policies organization will be effectively utilized heir scars resource and
successfully achieve their predetermined goal.
Main functions of business operations
Every business organizations needs to carry out some specific day to day activites , these
activites help in maintain their position in market economy. Main functions of business
operations are differ from one to one organization as every business organizations set up
with different vision. Business functions can be dived into 6 major functions, manager of
business organizations needs to formulated policies and mange their management process
functions in a way through which they maintain coordination between each function of
business as all functions are connected with each other and success of business depends on
effectively coordination among all these function. Following are the business functions
every organizations follow accordingly their own way:
 Accounting: It is essential part of each business organization whatever it is small
or large. Accounting is a process of systematically recording transactions. Business
organizations need to record each transaction data to recognize amount of profit
earn or expenses incurred on daily basis. Managers hire person for accounting
process, they uses various software like, tally, saral, to record transaction of
business organizations. It will help in measuring financial condition and provide
essential information to mangers which will help in decision making process (Gill,
2017).
 Financing: This word refers define as allocation of monetary fund in effective by
which business organization achieve maximum benefits by their business activites.
Finance function considered preparation of financial statements, making of
budgets, analysing and interpretation of financial performance of company to their
stakeholders. It is also important function of business entity as it will help
identification of future profit and minimizing risk elements. Financing also
included payment of tax liability, interest penalties, and taking dicing regarding
investment in securities for raising capital fund of business. Manager takes decision
regarding their working capital by which they pay their current debt amount and
maintain cash flow to run their daily routine business activites.
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 Production function: In this function entities manufacturing products according to
the need and demand of market economy. Business organizations follow a
systematic process of producing products, it included all the daily routine activities
which considered purchasing of raw material, managing stock, allocation of
resources to manufacturing actives, supervision of work directing works for
production process.
Sales: After production of products main function of organization by which they generate
cash inflow is selling their product to their customers. In sales activites managers identify
their target market are then decide their key customer, in sales function they formulate
plans and strategies to attract their customer by providing effective facilities. It is essential
function for service sector organizations their income is totally demands on effectively
they provides their service to customers(Chang, Yeh, and Liu, 2015).
 Marketing: It is one of the most important functions of business operations
activites. This function includes all activites which help in enhancing brand value
of an organization. In marketing function manager’s plans for those strategies
which help in enhancing sales volume of their products. In this function
promotional activites, plans, polices, method by which they attract their customers
are considered. Marketing includes creation of marketing plans, making customer
relationship policies, and uses of effective advertisement methods, providing beat
customers services to their client, using social media, newspaper, and other
promotional tool in a way which directly helps in increasing target market area of
company.
 Human resource function: It also considered as business operations activites.
Managers need to hire effective work force in order to properly used organization’s
capital. For this purpose they recruit select and hire new employers, they retain
their present employers due to some reasons. Manager of business organization hire
individuals which have great skills , they also provides them training to enhance
capabilities of their workforce all activities which help in recruiting, and training
employers considered as business operations activites.
 Management: This term define as systematic process of planning, organizing,
directing and controlling business organizations activites in order to achieve
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predetermine goal. Manager is a person who has art of getting things done by
others. It is one of the most essential function management is continuous process,
and sales, financing, production operations all are the part of this function.
Managers hire people to work in different organizations by maintaining
coordination between all the department functions.
All the above functions are considered as business operational functions which
each company follow accordingly their work.
Brief description of Mercedes Benz
Mercedes-Benz is a German based global automobile marquee and a division of
Daimler AG. The name first appeared in 1926. The founders are Karl Benz and
Gottlieb Daimler The headquarters is in Stuttgart, Germany. Mercedes-Benz is known
for Cars, trucks, bus, and sports cars. It is one of the largest sellers of luxury vehicles.
The first passenger road car to have brakes on all four wheels 1924.In 1936, the
Mercedes-Benz 260 D was the first diesel-powered passenger car. Mercedes-Benz was
the first to offer direct fuel injection on the Mercedes Benz 300SL Gulling. Mercedes-
Benz is currently active in four motorsport categories, Formula One, Formula E, and
Formula Three. Presently Mr. Ola kallenius is the head of Mercedes Benz.2.34 million
cars sold by Mercedes Benz in 2019.Some popular models of Mercedes Benz
passenger cars worldwide are A-Class , B-Class ,E-Class ,S-Class, GLA, AMG. While
the E-Class is the most popular product of Mercedes Benz.
Analysis of company’s business operation management decision600
Every company needs to take effective managerial decision regarding their organizations
operating function. It is essential for them for maintain their position in competitive
environment. Mercedes is one of the most famous organization of Germany. Success ratio of
Mercedes shows that their management department take effective decision for company
(Hammer, 2015).
Production: Mercedes is famous for their manufacturing products, it manufactures cars,
trucks, buses for their customers, their products are supplied to all over the world, Managers
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of this company formulated production related polices according as per their target market
area in which they produced their products. They implement different kind of polices due to
unequal geographical equation each market area required different feature in car, trucks and
other products of this company.
 Supply chain: It refer as a chain which started with management of raw material and end
with providing finished goods to company. Manager of Mercedes formulate effective
polices and implement supply chain management system by which they can control extra
activites. Mercedes used various software which help them to manage their supply chain
process with uses of software they can analysis their stock level, raw material require,
supplier who provides high quality of raw materials at discount prices etc
 Logistics: Mercedes is multinational company their target market area is included Indian,
American, Mid East Asia market thus they need to manage their logistic service facilities. It
includes transportation facilities. Management department of this company analysis all the
expense incurred in transportation cost and area, countries where their export their products.
 Location strategies: Managers of Mercedes prepare take decision and prepare plans
according to target market location. They try to implement those polices through which they
can easily provides their products to customer. In different countries Mercedes established
their showroom near by their target market area (Hsu, P Chuang, Lo, and He, 2017).
 Quality control: Success of an organization depends on their customers. Manager of
Mercedes prepare those plans which help in providing satisfaction to their customer, they
are famous for their high quality of services thus they never comply with their product
quality. Mercedes offers new features and innovating products in order to satisfy their
customers by maintain quality of their products.
 Human resources: Mercedes offers, sports car, luxury cars, trucks in market economy.
They need high skilled workforce for manufacturing and designing their products as it takes
large cost on manufacturing these product. Manager of this organization take rigid decision
regarding hiring their employers their policy are strict and it is very difficult to pass
recruitment test of Mercedes they only hire best individual those who have great potential
skills to contribute for organization (Saghafian, Austin, and Traub, 2015).
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Findings
From the overall analysis it has been find that different types of functions and activities are
required by firms to carry out their business. Thus it is necessary for business to take
decision regarding taking decision on the basis of analysing market conditions in order to
run effective business activities through which customers get best quality of products.
CONCLUSIION
From the above analysis it has been concluded that operational activites of business is play
vital role for achieving predetermine goal of organization. Thus it is compulsory required for
every business entity to formulate effective management system through which they manage
their day to day business activities which started with production department and end by
selling product to customers. Formulation of plans and budget are useless for all those
organization who did not manage their daily routine activities. Thus it is essentially required
to maintain strong position in competitive environment and to enhancing growth rate of
company mangers should manage their business activites.
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REFRENCES
Books and Journal
Cho, V. and Chan, A., 2015. An integrative framework of comparing SaaS adoption for core and
non-core business operations: An empirical study on Hong Kong industries.Information
systems frontiers, 17(3), pp.629-644.
Gill, A., 2017. Green sustainable operations: a case from service industry. International Journal
of Services and Operations Management, 26(4), pp.411-427.
Chang, D. S., Yeh, L. T. and Liu, W., 2015. Incorporating the carbon footprint to measure
industry context and energy consumption effect on environmental performance of
business operations. Clean Technologies and Environmental Policy,17(2), pp.359-371.
Choi, T. M., Wallace, S. W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management, 27(10), pp.1868-1883.
Hammer, M., 2015. What is business process management?. In Handbook on business process
management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Hsu, P. Y., Chuang, Y .C., Lo, Y. C. and He, S .C., 2017. Using contextualized activity-level
duration to discover irregular process instances in business operations. Information
Sciences, 391, pp.80-98.
Saghafian, S., Austin, G. and Traub, S. J., 2015. Operations research/management contributions
to emergency department patient flow optimization: Review and research prospects. IIE
Transactions on Healthcare Systems Engineering, 5(2), pp.101-123.
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