Introduction to Business Operations and Services: Strategies for Improvement and Market Share Gain

This report covers the practices and process involved in business operations and services, improvement strategies, and operational strategies for gaining market share from Mercedes Benz. It also discusses tools and techniques for business operations and services. The report suggests operational strategies that Audi and BMW can implement to gain market share from Mercedes Benz.

INTRODUCTION TO
BUSINESS
OPERATIONS AND
SERVICES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
i) Explain how you would introduce a companywide operations improvement strategy. This
improvement strategy must include the tools and techniques................................................1
Practices involve in the business operations and services......................................................1
Process involve in the business operations and services........................................................2
Operation improvement strategies..........................................................................................3
Tools and Techniques of business operations and services....................................................5
ii) Operational strategies that Audi and BMW can implement to gain market share from
Mercedes Benz.......................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business operations refers to the activities of the organisation where personnel are
engaged to perform these functions. Business operations are necessary for the organisation
because they contribute in planning, productivity and profit of a business concern. The
operations are consisted of many activities such as operating, financing and investing activities.
The operations of the business involves the elements such as process that assist the employees in
developing the products and services. The other is people which help in performing the function
of the organisation(Luo, S. and Choi, T.M., 2021). The next is equipments enable the employees
in making production of the products and location is also matter where the operations of the
business are carried out that are necessary for the production of the products. The business
operation management enable the organisation to minimise the cost and increase efficiency in
manufacturing the goods. This help the organisation in gaining the competitive advantage. In this
report, Mercedes Benz has been taken into consideration which is an automobile company that
involves in the activities of manufacturing of car. The report will cover the practices and process
that are involved in the business operations and services. Further, it will discuss the techniques
that help in taking various decision which are related to the business operations.
MAIN BODY
i) Explain how you would introduce a companywide operations improvement strategy. This improvement
strategy must include the tools and techniques.
Practices involve in the business operations and services
The operation management defines the practices of the business operation and services as
methods which enable the employees to enhance their awareness about organisational structure,
workplace, use of technology and management system in order to perform the task of the
business. The workers are able to convert the raw material into finished products in order to
maximise the profit of the organization(Helmold, M. and Terry, B., 2021). The operation
manager have to perform various tasks in order to improve the productivity and growth of the
organisation. Therefore, the manager is responsible for many aspects of the company and
highlight all those practices that are used to increase the productivity by decreasing the waste. In
relation to the Mercedes Benz, the operation manager have to perform various practices which
are described as under:
1

 Equipment upgrades: As regard with the Mercedes Benz, a manager is required to
analyse the the working function of the equipment that are used to make the production.
When any deficiency is found so these are get updated in order to improve the
productivity of the workers. Therefore, the manager of Mercedes Benz the equipments of
the car such as gear box cases, engine cylinder heads, engine locks , flywheel and so on
so that help in manufacturing of the cars.
 Communication and coordination: The manager of Mercedes Benz enhance the
coordination among the employees worker through effective communication so that the
operations of the business can be performed in an effective manner(Ovuakporie and et.al
2021). This also enable the organisation to improve the productivity as the information
are sent easily from one department to another so that the operation can be speed up and
can be done effectively.
 Revenue collection: It is the responsibility of the operation manager to make bill and
collect revenue by analysing the procedure of collecting the revenue. In relation to
Mercedes Benz the ways are created by the permutational manager to collect the revenue
quickly in order to ensure that the organisation have cash in hand and can fulfil the
necessary need of the business. This enable the organisation to develop the collaboration
among the departments and the supplier as well and help in gaining the competitive
advantage.
 Training: The operation manager work with the human resource department so that the
help can be made to the departmental manager to make more efficient ways for the
employees in performing the functions of the business operations(Choi, and et.al., 2021).
With reference to Mercedes Benz, the operation manager analyse the function of the
organisation and find out the requirement of the training to improve the performance of
the company.
Process involve in the business operations and services
The process of operation is a method of producing the goods and serviced in a continuous
flow. This assists in defining the activities of the business process that are divided into several
categories. The process of operation can be primary, essential and core process however, these
are essential according to the task which deliver value to the customers by providing effective
services of producing the products(Aaldering, L.J. and Song, C.H., 2021). The operational
2

business process can be identified through a process which include the several steps which are
depicted as under in relation to Mercedes Benz:
 Evaluate input and output: This step of the process helps in making evaluation of the
inputs that are all the resources such as material, cognition and human resources that are
required in manufacturing the products. The evaluation of the output is done by making
the distribution of the potential resources in order to minimise the cost(Vivaldini, M.,
2021). In relation to Mercedes Benz, the company use the inputs such as employee,
knowledge and experience for manufacturing of car that provide the higher cost to the
company but on the other hand the cost of the output get decline when the use increases.
 Asking for feedback: This is the second step where the organisation requires feedback
from the employees and the customers as well. The company collect the feedback from
the employee regaling the identification of their need to manufacture the products or the
description of the procedure. In context to Mercedes Benz, it requires feedback from the
customers about their services to know their satisfaction level. The opinion of the
customers are also considered which they require to be included in the products.
 Make process analysis: The process is examined by the manager in order to analyse
potential risk such as extra tax, cost of capital and so on. In relation to the Mercedes
Benz, the company think about the process of manufacturing of the products at minimum
cost within minimum time so that the return on investment can be managed and reduced
the error rates.
 Analyse results: This is the final step where the outcomes is analysed by measuring of
the data before initiating the process of operations(Tseng and et.al 2021). As regard with
the Mercedes Benz, the company optimise the process of operation when it finds any
shortcoming while making analysis so that it can improve the process in order to provide
additional value to the products and services which are delivered to the customers. This
assists the company in getting the positive outcome that have direct impact on the
business.
Operation improvement strategies
Mercedes Benz is well for the quality and reliability but from the few years kit lags
behind from its competitors in terms of sales and profits. Therefore it is required by the
3

company to improve the process of operations by adopting some strategies so that the
performance and financial result can be improved. The strategies are described as below:
 Focus on order fulfilment: The organisation must have the right tool to meet the
demand of the customers and fulfilment of the business operations. The company is
required to implement the advance replacement software to maintain the routine so that it
can enhance the productivity of the employees(Tseng and et.al 2021). This helps the
organiotion in improving the quality of their product and able to fulfil the demand of the
customers.
 Provide regular training: The employees of a business concern mat have best practice
method so as to increase the operational efficiency. In relation to Mercedes Benz, the
company provide training to the employees in order to improve their skills and enhance
their knowledge. It also establishes the various couching and mentoring program to
update the best practices for better efficiency.
 Set measurable goals and track progress continuously: To improve the operation of
the business, Mercedes Benz is required to set the measurable goals so that it can be able
to track the progress easily. The company can compare the actual outcome with the set
benchmark to identify the gap and shortcoming in the performance. This assist them in
improving the operational process by maintaining the issues.
 Streamline communication: The company have understanding to engage the customers
with the organisation by improving their operational efficiency and providing their better
services(Mohamadi-Baghmolaei, and et.al 2021). Mercedes Benz uses the customers
service management system to improve their customers service. It enables the company
by streamlining the communication for the customer in order to assist them effectively
and quickly.
 Outsource IT tasks: The company can outsource its IT task to save the time and avoid
the loss of data bad reduction in operational efficiency. This is the best strategy which
support the organisation to provide their best services to the customers. It also helps a
business concern to stay in the competition and enhance the satisfaction level of the
customers.
 Leverage technology: An organisation must have right technology so that it can easily
access to the data which assist an organisation to improve its operational efficiency(Chen,
4

and et.al., 2021). The company should have high technology and actionable report which
help in improving the business operation and provide effective outcome.
Tools and Techniques of business operations and services
Tools that are required by a business concern in order to increase the productivity of the
organisation and enhance the growth by improving the business operation.
 Collaboration: The company have good collaboration with their partners such as crowd
strike, UBS, FTX and so on which assist in performing the business function
effectively(Zhao, and et.al 2021). The company can increase the performance of the
business which leads to the growth of the success.
 Project management: The manager of the organization have to make various decision
regarding scheduling, work assignment and sequencing of the various project. Therefore,
the company have effective project management which are done according to the
schedule. This helps the organisation in saving the time and appropriately completion of
the projects.
 Continuous improvement: The manager identify the benchmark and allow the
employees to find the gap and make improvement over it so that performance of the
business can be improved(Madhani, P.M., 2021). In relation to Mercedes Benz, the
organization involves the employees in the business process and allow them to make
continuous improvement which help them in saving time and increase the revenues as
well.
There are various techniques that assist Mercedes Benz to improve the productivity and
gaining the competitive advantage. The techniques are described as below: Six Sigma: It is a technique that can be adopted by the company to improve the
productivity of the business as it mainly focuses on the manufacturing process and enable
it to reduce the defect rates(Cerquitelli and et.al 2021). Therefore, Mercedes Benz is the
luxurious brand that can adopt the DMAIC cycle in six sigma for improving the
manufacturing process that has been explained as under:
◦ Define: This help the organisation in identifying the issues of the manufacturing
process and find out the ways to improve the process and accomplishment of goals.
◦ Measure: This establishes the baseline with the right matrices so that performance
can be measured easily.
5

◦ Analysis: Mercedes Benz can make analyses to know the reason of underperformance
in manufacturing process.
◦ Improvement: The company can measure the performance and find out the areas that
are needed to be improved.
◦ Control: The improvement are implemented and measure with the standard
performance in order to carry out control.
 Business process management: This is another technique in the perpetration
management which is consisted of continue analysis, betterment and mechanization of
the procedure(Sen, A., 2021). In relation to Mercedes Benz, the manager of an
organisation make efforts continuously so that it can monitor the areas which are needed
to be improved. This also consist of the stages which include designing, modelling,
analysis, monitoring and optimisation.
ii) Operational strategies that Audi and BMW can implement to gain market share from
Mercedes Benz
Operation strategy refer to the decision that are made by an organisation in order to make
effective production and delivery of goods. all the steps that take by an organisation towards
manufacturing and delivery of the products so that the long term goals of the business can be
achieved(Kükrer, E. and Eskin, N., 2021). This enable the organisation to gain the competitive
advantage in the marketplace. The company can get many benefits by making the strategies for
the business operations such as it increase the employee efficiencies because the manager and the
employees know the goals towards which they are working and contribute their efforts in
achieving the goal of the business. By developing the operational strategy, the leaders are able to
learn more about the cost of the different departments. There are various operational strategies
that enable the organisation to have effective system for using work processes, personnel and
resources. The strategies are depicted as under:
 Customers driven strategy: This is an strategy which assist the organisation in meeting
the needs of the potential customers. The company analyse the environment constantly in
order to determine the impact of the external factors that may affect the profitability of
the business. Therefore, the company strive to adapt with the changing environment
which assist in enhancing the core competencies and strength. The industries are
monitored by a company to find out the opportunities and avoid the threat and brings
6

more customers. It assist on focusing on the new customers and reduce the cost of the
services.
 Product strategy: This is strategy is made to make the changes or add new feature in the
products in order to attract more customers and make them loyal for the organisation. It
is required by an organisation to maintain and update their existing products for those
customer who are willing to buy new products(Zhao, and et.al 2021). This strategy help
the businesses to improve the performance of the business and enable it to increase the
profit and revenue of the business. When the company proved high and improved quality
to the customers so their experienced are enhanced and they are encouraged for repeat
purchase. It also help in reducing the cost to improve competitiveness and increase the
profit margin.
 Market penetration strategy: In this strategy, the company focuses on increasing the
market share by offering their products on the lower prices as compared to the
competitors. The manager of the organisation choose the strategics in order to target the
new customers who have no experience of the brand, therefore, the products are offered
at the lower prices to encourage the customers to buy them. This strategy help the
organisation in generating the high sale quantity and allow to realize economies of scale
and lower the marginal cost. The market share of the company can be increased with this
strategy.
 Supply chain strategy: This is an strategy which help the business to deliver its finished
products to the customers. Therefore, an organisation select the path to minimise the cost
of the product by making purchases in bulk so that it can create value for the customers
by offering the product customisation. This help the company in improving the efficiency
of the deliver operations and assist in satisfying the needs of the customers and enhance
their experience and make them loyal for the organisation. Having good supply chain the
company is able to make good collaboration with the suppliers and provide better quality
product to the customers.
Mercedes Benz have adopted the product strategy as it make changes in the existing
products and offer to the customers to enhance their experience but it not always good as the
Mercedes famous three pointed star are not liked by the customers which effect the profit and
sale of the company. It is lagged behind from its competitors Audi and BMW in terms of sale
7

and profits. Thus, it should get aware with the external environment factors such as social and
technological so that it can adapt with the changing environment. This help the company in
improving the performance of the business and provide higher quality goods to the customer's
which change their perspective and make them loyal to the organisation.
In relation to Audi, the company should adopt the supply chain strategy by making
collaboration with the supplier so that their products can be reachable to the customers. The
company should have better quality control which help in enhancing the experience of the
customers and provide satisfaction. This encourage them to buy their products and assist in
reducing the inventory and overhead costs. Effective supply chain help an organization to
mitigate the risk and improve the cash flows. Having a efficient supply chain, the company is
able to make data analytics. This provides visibility about the requirements of products in the
market.
With reference to BMW, the company should adopt the market penetration strategy to
capture the market. When the company provides its products at lower prices so it would be able
to gain more customers by increasing their market share. This enables an organization to enhance
their profitability and sales because the customers who were not able to buy it’s products earlier,
are now able to purchase. This will enhance the goodwill of an organization and gaining the
competitive advantage by overcoming the competitors. By adopting this strategy, an organization
can encourage the customers to switch for its products at lower prices with high quality.
CONCLUSION
From the above discussion, it has been concluded that, managing the business operations of
the organization improves the productivity and greater efficiency of a business concern. The
report has discussed about various practices of the business operations that are adopted by the
operation manager such as updating of equipment, communication and coordination which
provides assistance to the organisation. Further, it has explained the process or operation
management and the various strategies that are adopted by the operation manager in order to
improve the productivity. Moreover, the report has discussed the tools like collaboration, project
management and techniques like six sigma and business process management which enable the
organisation to maintain its process of manufacturing.
8

REFERENCES
Books and Journals
Luo, S. and Choi, T.M., 2021. Great partners: how deep learning and blockchain help improve
business operations together. Annals of Operations Research, pp.1-26.
Helmold, M. and Terry, B., 2021. Operations and Supply Management 4.0: Industry Insights,
Case Studies and Best Practices. Springer Nature.
Ovuakporie and et.al 2021. Differential moderating effects of strategic and operational
reconfiguration on the relationship between open innovation practices and innovation
performance. Research Policy, 50(1), p.104146.
Choi, and et.al., 2021. Managing extended supply chains. Journal of Business Logistics, 42(2),
pp.200-206.
Aaldering, L.J. and Song, C.H., 2021. Of leaders and laggards-Towards digitalization of the
process industries. Technovation, 105, p.102211.
Vivaldini, M., 2021. Blockchain in operations for food service distribution: steps before
implementation. International Journal of Logistics Management, The.
Tseng and et.al 2021. Smart product service system hierarchical model in banking industry under
uncertainties. International Journal of Production Economics, 240, p.108244.
Mohamadi-Baghmolaei, and et.al 2021. Advanced exergy analysis of an acid gas removal plant
to explore operation improvement potential toward cleaner production. Energy & Fuels,
35(11), pp.9570-9588.
Chen, and et.al., 2021. Vulnerability modeling, assessment, and improvement in urban metro
systems: A probabilistic system dynamics approach. Sustainable Cities and Society, 75,
p.103329.
Zhao, and et.al 2021. Effects of ion migration and improvement strategies for the operational
stability of perovskite solar cells. Physical Chemistry Chemical Physics, 23(1), pp.94-
106.
Madhani, P.M., 2021. Lean Six Sigma in finance and accounting services for enhancing business
performance. International Journal of Service Science, Management, Engineering, and
Technology (IJSSMET), 12(6), pp.141-165.
Cerquitelli and et.al 2021. Manufacturing as a data-driven practice: methodologies, technologies,
and tools. Proceedings of the IEEE, 109(4), pp.399-422.
Sen, A., 2021. DevOps, DevSecOps, AIOPS-paradigms to IT operations. In Evolving
technologies for computing, communication and smart world (pp. 211-221). Springer,
Singapore.
Kükrer, E. and Eskin, N., 2021. Effect of design and operational strategies on thermal comfort
and productivity in a multipurpose school building. Journal of Building Engineering, 44,
p.102697.
Zhao, and et.al 2021. Effects of ion migration and improvement strategies for the operational
stability of perovskite solar cells. Physical Chemistry Chemical Physics, 23(1), pp.94-
106.
9

10