Business Operations - Volvo

Business
operations
VOLVO
Group
System

BUSINESS OPERATIONS - VOLVO
Introduction
VOLVO group is automobile industry based in Gothenburg. Volvo group is the second largest
manufacturer of trucks across the world. VOLVO is the Swedish multinational company, and its
main business operations include productions, distribution and sales of Cars, Trucks and Buses
and also other construction equipment (Vahlne, 2011). The company also supplies industrial and
marine drive system and other financial services. Volvo sold to ford motor company in the year
1999 but maintained independency but profited from the shared research and development. The
company has branches in 120 countries across the globe and provides jobs to 100000 employees
internationally (Statistics, 2018). Volvo covered wide network area across the world The
Company’s main mission is to provide more safety feature as safety has major role in automobile
industry. Safety is the priority as customer’s point of view of VOLVO group. The company has
sold around 14 million cars until now and this data shows the success of the company. The
company is well known for its innovations in Car industry and made large profit to Ford motors.
VOVLO has much business functional area in but the essential functions is customer service and
research and development as today’s world Technology is advancing therefore research and
development area has to be stay ahead for. This will help VOLVO to make advance its vehicle’s
design. To adopt market trend it is necessary for all the functions to work together (H. Netland,
2014).
This report will analyze the current operations functions of VOLVO and also the role of the
operation manager in the company. It will also evaluate how company should manage its
business process in order to achieve operational excellence.

BUSINESS OPERATIONS - VOLVO
I. Part 1
Functional Area
Volvo is the leading brand in the automobile industry. It is founded in 1927. The functional area
of the company supports the product’s service (Svensson, 2003). Customer service and research
and development are major functions are of the company. It is important that the research and
development and customer service work together to meet the customer’s requirement. Research
and development’s aim is to provide safety features. Challenging opportunities involves product
planning, program management, propulsion, and partnership strategy (Lee, 2015).
There are many functional areas in the organization such as design, research and development,
Purchasing, manufacturing, corporate communication, sales and marketing, Quality and
customer service, Information technology, Finance, human resource, and several others
(Zikmund, 2013).
Design: Design is a critical part of its operations. The design of the cars depends on its
Scandinavian origins, elegance new functions, and purity of line. The companies design team
divided into 2 teams one is creative and other is an operational team. These new team works
together with one motive to create the most exciting vehicle with good safety features (Ericsson,
2018).
Research and development: The Company’s research and development part help to provide
better technology to and other new features. VOLVO is the key contributor to the next
generation of exciting new Volvo cars. The team of research and development creates innovative
material and technology which helps to create better features and makes life less complex and
more enjoyable for its customers (Volvo, 2018).

BUSINESS OPERATIONS - VOLVO
Purchasing and supplier management: Purchasing part makes sure the supply of material and
service are having the right cost, quality of the products and technological level which is an
important aspect of the success of the company. This team has the mission to develop and
maintain better supplier base also cooperating with the other people who involved in the
company whether internal or external ways across the globe. The company has around 51000
suppliers in many countries across the world (Volvo Group, 2018).
Manufacturing: Manufacturing team ensures that vehicle that they build or design should meet
the expectations of the customer and business objectives. In the company, all the operation works
with lean, flexible and clean environment and production technology (Volvo group, 2018).
Corporate communications: To be a part of the global, communication team the company
builds a better relationship it the journalist, online influencers and lawmakers. The company is
responsible for internal communication with the staff globally.
Sale and Marketing: Our mission The Company’s mission is to ensure that all customer touch
points reflects its brand essence of “Designed Around You” and also that all services and
products deliver a better experience. Become some portion of the worldwide group that
supervises every single business action for Volvo Cars around the globe, including promoting
correspondences, client association, deals, and administration.
Quality and customer service: With quality and customer satisfaction the team recognizes that
what are the market trends and what are the expectations and market situation and meet all those
expectations. To deliver these services, the company serves all parts such as tools, methods,
targets, processes relating to customer satisfaction and quality (Volvo group, 2018).