Introduction to Business Operation and Management

This report provides an introduction to business operations and management, focusing on the main functions of business operations and the evaluation of operations management decisions. The chosen company for analysis is Walmart, a retail corporation operating in multiple countries. The report covers the procurement, logistics, marketing, selling, and e-commerce functions of Walmart.

Introduction to
business operation
and management

Table of Contents
INTRODUCTION...........................................................................................................................1
Main functions of business operations...................................................................................1
Description of chosen company.............................................................................................2
Evaluation of the organisation operations management decision..........................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business operations comprise of activities conducted on routine basis for enhancing the
value of organisation and profit. The main motive of smooth functioning of such actions is to
help entity grow with the time (Choi, Chan and Yue, 2016). Management undertakes numerous
responsibilities in different departments such as legal, marketing and many more in order to
expand the capacity issues. There may be challenges which may impact the business activities
negatively. Therefore, a strong decision-making plays an important role for maintaining stability
in the company. In this report, Walmart has been chosen which is a retail corporation of
American origin and operating in multiple countries. It has headquarters in Arkansas, United
States. This assignment is going to cover main functions of business operations of chosen
company, evaluation of various operations involves in management decisions followed by a
conclusion.
Main functions of business operations
Business operations refers to the actions required for running the organisation for making
money on daily basis. It includes a co-ordination of systems, technology, equipment, human
resource and processes for carrying the functions. Synchronization is significant in attaining
goals and objectives of a corporate. In the context to Walmart, the main functions covered in its
daily-routine business operations have been elaborated below:
Procurement- This function is related with the obtaining the goods from the
manufacturer. There are suppliers of Walmart who make products as per the specifications
provided by it. This is the very first step in which it tries to effectively procure the goods which
can meet the expectations of customers. During this activity, Walmart ensure that products meet
the quality standards. Also, it takes into consideration that costs are kept as low as possible in
order to sell them at low prices to final consumer (Coleman and Packer, 2018).
Logistics- This function refers to moving, storing and handling of products in order to
deliver them at the right time. It is important to make the products available in the right locations
so that target customers can buy them without have to wait. Walmart is very particular about
delivery of its goods without any delay so that end users do not have to suffer. It helps company
reduce unnecessary costs associated with the availability of products. Also, it assists in
maintaining the stock in the warehouse.
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Marketing- It is one of the main functions which is related with making customers aware
about the products. This involves persuading them them with attractive advertisements. This
activity may require expenditure but without this function customers can never know about the
products that are available in stores. Walmart uses different modes of advertisements such as
newspaper, TV etc. Also, the marketing team ensure that it reach the target customers.
Promotional offers- It is a part of marketing activities but carried on frequent basis.
Walmart emphasize on keeping the prices low and attract customers with its promotional offers
such as discounts, buy one get one, combo pack and many more. Also, there is this scheme of
everyday low price which is not only used by Walmart but also by other retailers around the
world. This has seen positive outcomes as compared to earlier approaches (Thomas, 2018).
Selling- This function relates with the selling of items to customers in order to cater their
needs. Pricing strategy plays a great role in this and the selling price should be according to the
capabilities of individuals who are being targetted. Walmart follows every day low price
approach in which prices of goods are kept low to make them affordable for large number of
customers. It is important to attract and retain the loyal customers for a long time.
E-commerce- Walmart also operates on e-commerce websites in order to make the goods
easily available with to the customers. There is a separate team that handles the matters related to
online business activities of Walmart. By taking into the importance of digital platform in future
years, it has shifted the business operations online which can help it gain more customers.
Furthermore, it has added benefits such as anywhere shopping, no time restriction etc.
There are other main functions as well which are ancillary to the main functions but there
should be a co-ordination between these functions in order to achieve the goals and objectives.
Furthermore, Walmart should have better control on these activities in order to accomplish the
tasks.
Description of chosen company
Walmart Inc. is an American company in retail industry which comprise of chain of
hypermarket, grocery stores and discount department store. It has headquarters in in Bentonville,
Arkansas, United States of America. It is a multinational company operating in more than 27
countries by establishing physical outlets. Also, there are 10 countries in which it carries
business through e-commerce websites. It was founded by Sam Walton in the year 1962 and was
officially incorporated on 31st October, 1969. It has about 55 different names under which it is
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operating worldwide. As per the data released by Fortune Global 500 in 2019, it is recognised as
the largest company by revenue in the world. The revenues is US$514.405 billion also, it has the
largest private employer in across the globe with 2.2 million employees. It is known for its
quality products which are available at affordable prices so that large number customers from
different income classes can purchase them. The management of corporation emphasize on the
quality standards and make efforts to take good decisions relations to operations (Official profile
of Walmart, 2020).
Evaluation of the organisation operations management decision
Operation management is the activity that help in performance of different functions in
accordance to pre determined standard and stipulated period of time. This is one of the important
aspect upon which organisational success is based. It is assumed that management has the duty to
take all the appropriate decisions to carrying the continuous operations of an organisation. There
are number of operations which are generally performed in each type of operation includes
production, supply chain, logistics, location strategies, quality control and HR. The organisation
considered for carrying this question analysis is Walmart. It is a retail organisation that operates
large number chain of hypermarkets, discount department stores and grocery stores. It is a
American organisation and operates the business in all over the world. There are number of
operations were performed within the organisation by its employees to serve products and
services such as HR, Supply chain, Logistics, Quality control and Location strategies. The
decisions related to carrying these operations is taken by he higher authorities and management
of an organisation. All works individually but at some point they support each other in
performance and completion of their functioning. The evaluation is done below regarding the
decisions taken by management for operating their different operations;
Human resource: This is the department prevails within the organisation for the purpose
carrying activities related planning of workforce along with talent management. This department
works within the organisation for the purpose of creating positive environment that thrive the
performance of employees. The approach basically used by an organisation to fill vacant places
within an organisation is matching of the passion and talent of candidates with the needs of
business. Innovation is the main lens which is used by an organisation to bring improvement in
existing processes. In this regard, currently the approach used by an organisation is a software
that automate the process of analysing the changes in workplace. The benefit associated with this
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approach will be flexibility. As such, it does not have negative impact but assumptions improves
cost.
Supply chain: Supply chain department within an organisation majorly contributes
towards success of entity. This department involved in the process of planning and management
of all information and activities that are involved in procurement, sourcing, conversion and
logistics. In order to effectively manage their supply chain Walmart undertake use of enterprise
resource planning system ( EIP) which is an integrated Computer Based system to manage
internal as well as external resources that include materials tangible assets, human resource and
financial resources (Why Walmart's supply chain is one of the world's best. 2016). With the help
of this tool company effectively execute the things and money in a proper manner. It also
reduces supply chain inaccuracies while increasing performance organisation. Supply chain
department effectively ensure moving of right items to right customers at the right time. With the
help of technology Walmart embrace their supply chain in order to track inventory and ensure
improve operations services.
Logistics: This department engage in the formation of ensuring geographical
repositioning of unfinished goods. In this they are also responsible for the finished inventory to
be placed at right place in cost effective manner. Within Walmart this, department operate
process related to integration of different aspects that are related to Information, material,
handling inventory, warehousing, transportation and packaging. In addition to this, this
department also hold responsibility of ensuring that overall process of logistic of company is
maintain according to the business goals in an economical cost manner. It has been identified
that Walmart is undertaking advantage of green Logistics as to perform their function in a
sustainable manner that derives organisation towards operational efficiency and long-term
sustainability.
Quality control: Quality control department within an organisation perform the function
related to test and verify product quality against organisational and government standards.
Quality control department within Walmart effectively ensure quality of all the batches
manufactured at each and every stage. In order to build long lasting relationship with their
customers Walmart effectively manage quality of their products with the help of intelligent
quality management system. This process is being used by company in all of their distribution
and supply chain centres. The main aim of this is to increase quality of fresh produce while
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making significant reduction in wastage. Further, it has been determined that that in order to
maintain competitive advancement in global market Walmart mainly focus upon quality of their
products as to provide satisfaction to their customers in a best effective manner. In addition to
this it has been evaluated that company continuously engaging in the process of making
improvement in their product and service quality as to ensure strong brand image in marketplace.
Company also take advantage of close aberrations with suppliers and undertake use of effective
strategies in order to provide high quality value added goods to their customers.
CONCLUSION
As per the above mentioned report it has been concluded that, business operation involved
different types of activities with the help of which accomplishment of goals and objectives of
organisation ensured in a well defined manner. It has been evaluated that there are different types
of responsibilities that has been undertaken by management such as marketing, legal etc. that are
required to be effectively manage by organisational unit in order to ensure effective marketing
positioning. In addition to this that has been evaluated that strong decision making play key
essential element as to duly maintain organisational stability. There are different types of
functions within business operations that are required to be effectively manage in order to fulfil
organisational goals along with ensuring high profitability and productivity.
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REFERENCES
Books & Journals:
Choi, T.M., Chan, H.K. and Yue, X., 2016. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics, 47(1),
pp.81-92.
Coleman, M.A. and Packer, C., 2018. Creating Supply Chain Management in an Operations
World.
Thomas, S., 2018. Keys to Successful Primary Care Operations. In Primary Care for Older
Adults (pp. 105-108). Springer, Cham.
Online:
Official profile of Walmart. 2020. [Online]. Available through
:<https://corporate.walmart.com/our-story/our-business>.
https://careers.walmart.com/corporate/human-resources
http://panmore.com/walmart-human-resource-management-hr-management
Why Walmart's supply chain is one of the world's best. 2016. [Online]. Available Through<
http://blog.cemat.com.au/walmarts-supply-chain>
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