Introduction to Business Operations and Management

This report provides an introduction to business operations and management, including an explanation of what business operation means. It discusses the main functions of business operations, evaluates organizational operations management decisions, and provides a brief description of Rolls Royce, a luxury automotive manufacturer. The report also highlights the importance of understanding business operations for productivity, stability, and profitability.

Introduction to business
operation and
management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduction including an explanation of what business operation means. ................................1
Explanation of main functions of business operations................................................................2
Brief description of the company.................................................................................................4
Evaluation of organisational operations management decisions.................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business operations and management is all about monitoring, evaluation along with
streamlining business processes for enhancing efficient production or distribution of
commodities. Operations and management is specialisation branch in field of business that assist
in managing and running activities in successful, smooth and effective manner (Bird and
Mendenhall, 2016.). To understand business operations and management, Rolls Royce is
selected organisation which is manufacturer addition to distributor of variants of luxury
automotive. Its headquarters are situated at Goodwood, United Kingdom since the year 1998.
The report highlights what business operation means, main functions of business operations,
description of company and evaluation of organisational operations management decisions.
MAIN BODY
Introduction including an explanation of what business operation means.
Business operations means all actions which are mandatory for running organisation and
earning revenues. In other terms, activities in which a business is engage for enhancing values
and earning profits is said as business operations. It consists of wide types of tasks which are
performed at a location for achieving goals. When two of more business operations are
constituted then more values are created and provides in market to gain successful and
favourable outcomes. All the activities are optimised for generating sufficient funds which will
cover upcoming expenses as well as help in earning revenues for businesses. It guides the whole
entity as well as limits risks which helps in avoiding problems to work towards successful
outcomes. These are majorly used for converting raw materials towards desired and finished
goods to create worth for customers (Boella and Goss-Turner, 2019). These activities begins
from paper as well as ends in gaining satisfactory results. They provides a rough idea or direction
to lead further workings to achieve determined state. It encompasses fundamental imperatives
related to generating recurring income, enhancing worth of organisational assets and securing
income with values which collectively assist in maximising vales that are harvested from
available assets.
Business operations involves entire activities that are undertaken by organisational
workforce to deliver suitable services and products to end consumers. When all business
operations work together smoothly then it effectively enhances potentials of company. The
1

operations in such scenario will be at peak level which will reduce various costs along with
improve overall satisfactions of external population. Moreover, set of technology, people,
processes and assets which build and capture values to huge extent. For example, Rolls Royce is
an automotive company that is involved in converting unprocessed materials into tangible and
physical vehicles through its business operations which are streamlined properly. With the help
of its operations, managers eliminates bottlenecks which enhances processing time while
manufacturing, promotions and delivery (Schaltegger, Burritt and Petersen, 2017). Through the
operations, all the uncertain and challenges are successfully overcome to take leads and to
optimise production of revenues that are sufficient to compete as well as sustain in upcoming
timings. The field generally collaborates with others for implementing strategies, managing
activities along with guarantee customer retention. It also improves employs tactics for
protecting organisational property and goods. Different companies have different business
operations which are structured as per the requirement of company.
Explanation of main functions of business operations.
Business operations are essential and major activities of a company that are performed on
daily basis. It involves various functions that are responsible to create, promote and deliver
products in market (Fredendall and Hill, 2016). Within a company, activities that are performed
with purpose to earn money as well as keeping the entity running are operations of business. In
context to Rolls Royce, some of functions of business operations are as explained underneath:
Accounting: It is the major business operations function that includes procedure to
record financial transactions that arises in business. Process of accounting encompasses
summarising, analysing addition to reporting all the pertaining transactions so to preparing
budget for upcoming period, controlling financial policies, preventing errors, evaluating
performances, controlling cost and so on. In context to Rolls Royce, the main function of this
business operation is to keep exact and accurate record of all the financial transactions, making
journal of expenditure and preparing statements. Moreover, accounting function also work for
measuring addition to summarising business activities, sharing or interpret necessary information
with decision makers, communicating results to managers, overseeing work of personnels for
recording information accurately as well as protecting data.
Finance: The another business operation function which is responsible for acquiring
addition to utilising financial resources which are required for carrying out business effectively.
2

Finance function of business operation works for planning resources along with providing funds
to different departments to help in business expansion (Greco, Figueira and Ehrgott, 2016). It
involves those activities that are related to acquiring addition to conserving capital funds to meet
all needs together with entire organisational objectives. In case with Rolls Royce, activities of
finance function includes raising financial capital, safeguarding company assets, budgeting and
tax compliance. Furthermore, finance function also emphasis towards internal auditing,
controlling costs presenting new investment opportunities, managing cash flows, sourcing long
tern funds and managing taxation.
Sales: Sales in important business operation function as it is responsible for smoothing
processes, making usage of researches in better manner and ensuring effectiveness of
organisational sales. Activities of sales function are related to planning and devising strategies to
ensure all workings are in sync towards boosting probabilities of positive results, providing
training and on-boarding to salesperson, directing tasks towards goal attainment, evaluating
results, building relationship and allotting sales territories addition to quotas.. At Rolls Royce,
sales function requires identifying customers along with potential customers, promoting
automotive products, actual selling and follow ups. It is more than handing products or receiving
prices. Sales function has direct linkage with organisational products, services, workings along
with its customers.
Production and operations: This business operation function has a goal for using
organisational resources for producing products and services in efficient manner as per
customers want (Hopkin, 2018). Within Rolls Royce, production and operation function involves
activities related to handling incoming materials, procedures of production, commodities that are
going out of company's door as well as taking feedbacks from customers. Along with with, it
also ensures to make required adjustments for purpose of fitting customer needs. Moreover, it
also includes set of defined, repeatable addition to controlled tasks or rules that transforms inputs
and resources of enterprise into final outcome that is product and service.
Management: The management function of business operation is all about using people
as well as resources of company effectively and efficiently so to reach goals with proper
planning, organising and controlling. It is responsibility of management to assure availability of
proper tools with all employees for accomplishing assigned responsibilities. In context to Rolls
Royce, activities or tasks that are part of management function includes planning workings for
3

upcoming duration, organising resources in such manner that leads to working towards closer to
realizing established plans, leading organisational members to work with coordination to others
and monitoring progress for fulfilling goals (Rothaermel, 2016). Along with this, activities that
are part of management function includes delegation, training, managing change and employee
appraisals that are mandatory for running organisation as well as generating income.
Brief description of the company.
Rolls Royce is well popular and luxury automotive maker which was established in 1998
at Goodwood in United Kingdom. It is pre-eminent engineering enterprise that majorly emphasis
towards world class power addition to propulsion systems (Rolls Royce, 2020). The company
provides integrated solutions to aerospace together with marine or industrial power system
segments with vision of providing better power for modifying the world in better aspects. The
organisation is popular for making engines for best airliners as well as advance military aircraft
for the world. There are more than 50000 employees working with the company on diverse
number of countries. In the year 2019, it generated net income of £ 1,311 million. Moreover, till
the year, the company have assets of £ 32,266 million as well as total equity of £ 3,376 million.
Moreover, it works for creating automotive as equivalent to haute couture that is forthcoming of
luxury mobility. Along with this, Rolls Royce pioneer technologies which deliver safest, cleanest
along with competitive solutions for power vital needs of the planet. The company sets strategies
by accounting trends which will describe upcoming needs of customers across the world. Its
business system includes cutting edge technologies, dynamic technology management,
compelling customer proposition and creation of long tern values.
Evaluation of organisational operations management decisions.
Operations management decisions are said to those decision that are taken by managers
of company to ensure working to attain objectives (Hugos, 2018). In context to Rolls Royce,
different decisions are taken for managing different operations. Some are evaluated below:
Production: Production is all about combining diverse material inputs as well as
immaterial inputs so to make final output that can be easily consumed or used. It creates an
output which have value as well as contributes in individual utility. As Rolls Royce is
multinational company whose managers makes decision to produce new models of luxury cars in
the market. It produces commercial as well as military engine aerospaces for broad customer-
base. It has been evaluated that to manage operations related to production, managers of Rolls
4

Royce adopts various production strategies such as differentiation strategy and quality strategy.
With differentiation strategy, production managers tries to produce unique luxury vehicles that
are different from rivals. Along with this, by using quality strategy, the entity produces and sells
goods and services that have high quality. This helps in attaining all the determined objectives
and managing entire production procedure effectively.
Supply Chain: It is a network among organisation as well as suppliers for production and
distribution of products to prospective buyers (Penn and Pennix, 2017). In context to Rolls
Royce, the company operates with around 18000 active suppliers as well as 950 purchasing
individuals across growing products and parts. The mangers of the entity have made various
decisions related to supply chain practices. One of it is inbound network in which the
management team selects its partners to purchase materials for purpose of assembling or
manufacturing components to get finished car and then source them globally. The supply chain
partners are considered as logistic nodes that collaborates with various people in entire supply
chain.
Location strategies: Location is particular place or area wherein company plans to set
premise and perform activities. Decision for location is key ingredient for success of company, in
context to Rolls Royce, managers frame location decision after considering various factors such
as facilities, availability of labour, trade zone, external business environment, analysing
feasibility and many more. At present, the company manages operations by having official
presence in more than 50 countries by selecting effective location techniques. Moreover,
decision of location database strategy enabled it to perform initial location screening and then
selecting effective one to perform operations without hurdles.
Quality control: Decision for controlling quality is key component for managing
operations of company (Rezaee, 2016). For this, managers of Rolls Royce frame decisions to use
various quality control tools that are inspection and statistical quality control through which
quality of all its vehicles are checked and further determinations are made to improve them. With
the inspection decision, qualities are controlled of all vehicles and services with using effective
aspects product inspection, process inspection and inspection analysis which benefits in ensuring
quality of vehicles up to standards.
5

With the help of the operation management decisions, all the activities of Rolls Royce are
performed towards attaining objectives. Time to time, these decision are modified as per
pertaining situations so that delays in working are reduced and achievements are done prompty.
CONCLUSION
The above report concludes that business operations are those tasks or activities which
personnels of company undertake for achieving objectives. Major business operation functions
are accounting, finance, sales, management, production and operation. Understanding these
functions are essential for productivity, stability as well as profitability of an enterprise in the
competitive environment. There are various decisions that are framed by organisational
operations management in context to production, location strategies, supply chain, quality
control and so on to attain determined state.
6

REFERENCES
Books and Journals:
Bird, A. and Mendenhall, M. E., 2016. From cross-cultural management to global leadership:
Evolution and adaptation. Journal of World Business. 51(1). pp.115-126.
Boella, M. J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Fredendall, L. D. and Hill, E., 2016. Basics of supply chain management. CRC Press.
Greco, S., Figueira, J. and Ehrgott, M., 2016. Multiple criteria decision analysis. New York:
Springer.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Hugos, M. H., 2018. Essentials of supply chain management. John Wiley & Sons.
Penn, I. A. and Pennix, G. B., 2017. Records management handbook. Routledge.
Rezaee, Z., 2016. Business sustainability research: A theoretical and integrated perspective.
Journal of Accounting Literature. 36. pp.48-64.
Rothaermel, F. T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental
management: Striving for sustainability. Routledge.
Van Aken, J. E. and Berends, H., 2018. Problem solving in organizations. Cambridge university
press.
Wilton, N., 2016. An introduction to human resource management. Sage.
Online:
Rolls Royce. 2020. [Online]. Available through: <https://www.rolls-royce.com/>
7