Introduction to Business Operations and Management
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This report provides an introduction to business operations and management, focusing on the functions of business operations and the evaluation of operations management decisions. It includes a case study of Marks and Spencer, covering finance, production, marketing, legal management, and more.
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Introduction to Business Operations and Management
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TABLE OF CONTENTS INTRODUCTION..........................................................................................................................3 MAIN BODY..................................................................................................................................3 Functions of business operations.................................................................................................3 Description of Marks and Spencer...............................................................................................5 Evaluation of the operation's management decisions..................................................................5 CONCLUSION................................................................................................................................8 REFERENCES...............................................................................................................................8
INTRODUCTION Business operations is a process or activity that the businesses pursue on daily basis with a aim of increasing the value of the enterprise and also maximize the profitability. This activity can be optimized to create adequate income. Revenue covered the expenditure and earn the net income for the businesses. The case study is based on the organization “Marks and Spencers (M&S)”. This report introduced the different functions of business operations and also the evaluation of the business operation's management decisions that include location strategies, quality control, production, supply chain, logistics and HR (Barnes, 2018). The objective of this report is to identify the functions so that the business can operate in the best possible way and can maximize the profit of their earnings. MAIN BODY Functions of business operations The business refers the workforce to make finished products and services whereas operations is responsible for taking resources like raw materials. The term business operations refers to the part of enterprise that give consumers the goods and services that they required. Business operations superiors are the go-to people of the enterprise. They help different department inside the company to accomplish the goal of the business (Reid and Sanders, 2019). Theirworkincludesnegotiatingcontracts,hiringpeople,understandinggeneralbusiness operation, guiding work teams for projects and addressing budget matters. The business management is responsible for managing the resources and creating the products and services which involves the organizing, planning, controlling and coordinating all the raw materials which are required for production of goods and services. For operating the businesses “Marks and Spencers” follow various functions to be performed by the businesses which are as- Financial Management-It's a operation function which refers to the area in the organization which are concerned with the expenditure, profitability, cash and credit so that the organization can fulfil or accomplish their objective as satisfactorily as manageable (Pronko and Spiridonova, 2020). Finance is important component for the operation's management of M&S as it is essential that all the finance functions helps the businesses to provide raw materials and planning resources to expand their business. The M&S maintain the relationship with the financial retail
store which includes the investors and institutions and also taking care of the concerns like capital raising sources of risk and borrowing management and share buybacks. Production Management-The production is the creation of goods and services which helps to certain processes. The manufacturing of the products are based on the demand arises from the customers in the market the M&S focuses towards the demand of the customers and produce the goods as per the requirement of the customers while using the company resources efficiently manufacture the goods and services (Naderi and et.al., 2019) it will increase the sales of the firm and also attract customers towards their organization. The production management helps the firm to handle the process of incoming materials, to the manufacturing process, with the output of the product and the feedback from the consumers this will help the company to make the necessary adjustments to fulfil the customers needs. Marketing management-This functions helps M&S to assure the customers about the products and services they are offered through many ways such as promoting activity, advertising TV, magazines etc. marketing is a process where the M&S promote the clothing, home products, food products and aware the customers about their goods and observe the view of the customers satisfactions (Jin, Miao and Park, 2018). Marketing purpose is to create a process through which producers and consumers are come together in the exchange relationship and transfer the ownership. The M&S utilize the marketing function to operate their business as they can observe themarketwhilepromotingtheproductsandidentifytherequirementsoccurredinthe marketplace. Legal Management-The M&S follow the legal rules and regulations at the time of import and export of the goods and services (Wolniak, 2020). The legal management deals with the important items such as licences, contracts, warranty documents and many more. Operation Management-This function direct the M&S to deal with the management and design of the products, services and the supply chain of the goods. Operation management concern with the directing, planning and the overall direction of the objective of the company. This function is to help the organization to convert the raw material into finished goods and services that customers will able to utilize (Hill and Hill, 2017). The M&S operates the management so that they can design their product as per the requirement occurred in the market and focus towards thesatisfactionof thecustomersandaccomplishthegoalofthefirmandincreasethe
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profitability and attract the customers by providing the good quality of products and services this will build the brand image of the firm in the marketplace. Information function of management-This function is equally important in the modern era for development of the businesses (Temnyshov and Belyaev,2020). The M&S adopt this function to recognize the modern business with effective information so that they can produce the goods as according to the demand of the customers arises from the market. Description of Marks and Spencer M&S is a British multinational retailer which is founded in 1884 by Michael Marks and Thomas Spencer in Leeds with headquarters in England, London that specializes in selling food products, home products and clothing. M&S currently having 959 stores across the UK including 615 that only sell the food products, through its advertising. It also offers the online food delivery services. Its brands are Per Una, Autograph, Limited, M&S energy, Rosie, Blue Harbour, M&S collection. The aim of the M&S is to inspire the customers and provide them good products enhance with the daily routines changes and improve the things for the better performance of their firm (Erasmus and et.al., 2020). The brand value of M&S will proposition with the quality of the product, value, services, trust world be consistent and innovation in the products. M&S build the business enterprise trading in 30 countries and with more than 300 retail stores in UK. The purpose of M&S is to inspire and engage the millions of peoples who visit to their stores in worldwide and attract the customers towards their products so that they will increase the market share. Evaluation of the operations management decisions Operation managementof Marks and Spencershows direction and control of the convert input into product or service. Operation management include all function as process are initiate by all business activities. This is the process of controlling, redesigning operations of goods and services of business (Hohenstein, Feise and Hartmann, 2014). There are 5 type of businesses operation management decision that affect the business operation if not chosen wisely. Strategic choice: Its help company to identify global strategies and competing priorities.
Process: It is an activity that produce goods and service and can be affected decision-making of the company. Quality: This includes all process and work of quality of product and service of company. Capacity, layout and location: This activity helps the company to know the system capacity, physical layout of department and new facilities of location. Operational decision: the management takes decision regards supply chain, HR, qualitycontrol,logistic,locationstrategicandproduction(Chen,Zhang, Delaurentis, 2014). Evaluation of M&S operation management decision: Production:It is the process of transforming raw material resource into finished goods. Management have to operate with efficiency in the market in today's business environment. The focus should be on quality, low cost of material and labour and remove all other irrelevant cost of production that are occurring for the product. Decision making help company to involve the efforts to attain the target goal by the operation manager. Operation manager have the several responsibilities for the production which are. Production planning:This the initial planning of production process that how goods will be produce, where the production will be done and how the facilities of production process will be laid down in proper way. Production control:operation manager evaluate the production process when it start and monitor the activities of the production. They control the production cost and make adjustments where needed by the company. Whereas, they also look into the purchase of raw material goods for the production. Quality control:Manager have the responsibilities which involved the efforts to ensure the quality of goods produce is according to the standard and are maintained (Heizer, Render, Munson, 2017) Supply chain:Supply chain management have become more demanded and complex over the time and needed highly professional trained for the company. The decision are made by the management that affect the product develop, manufacture, movement and sold in the market. Supply chain management involves pronouncement of raw material, producing into finished
goods and distribution of goods into the market. Supply chain management involve three levels in management: Strategic level:This is done by top-level management decision for the long term goals. This includes the whole supply chain process of M&S. Decision are made on product and service, current market trends and customer feedback for new product or existing product. Tactics level:This includes all short term and mid term decision of the supply chain. It is more specific process that are followed by company which ensure the quality of product and low cost in the production. Operational level:This involves day top day process, planning and decision-making for the smooth running of supply chain. This level run on the policy of strategic and tactics level. Logistic:This process is the flow of goods between the manufacturer to the end user of the product in order to meet the needs of consumers. Logistic include physical items like cloths, accessories. This depends on the type of business as logistic decision are diverse. This decision are made on the basis of customer service, logistic network design, outsourcing. Customer service:This is first and foremost important decision in logistic strategies. As, logistic involves delivering the right product to right customer at the right time with the right quality and cost of product. This is an output of logistic. Logistic Network Design: To achieve the target goal of the company, flow of material and information is important for business for timely achievable of goals. Outsourcing:This brings greater flexibility with low investment cost and risk, improve cash flow of business and lower labour cost. location strategies :The right location strategies is the key ingredient for the success of business. If the location is not correct according to business nature then it will find difficulties for the labour, transportation, material etc. Location help the business to get success and earn good profit by obtaining the optional location and identifies the company's need and objective location strategies. Location are chosen by seeing overall company strategy (Reid, Sanders, 2019) Quality control:The M&S have to be clear on the demand of customer and quality they want and meet those expectations. To manage the quality of product development of methods and techniques used by the company to maintain the quality product. Operation manager have use efficient employees and technology to maintain the quality that are want by customers.
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Human resource:This function is used to hire the efficient employees for the company to achieve the target goal with minimum cost and maximum profit of company. This help the operation decision-making to achieve the target on timely and efficiently production target. CONCLUSION The above report on M&S conclude that operation management and decision-making is important part of the company and have to be done in efficient manner with right decision takes towards the target goal of the company (Demir, 2019). This includes the business operation and their function which are followed by M&S. The decision of operation management which can be affected through other department like HR, logistics, supply chain, location strategies and quality control. All these factors should be made efficiently for the success of the company by making correct decision on all those factors which helps in smooth flow of work in organization. Whereas, logistics, supply chain are involved in flow of goods from their origin to end user while HR, quality control and location strategies are involved in quality of product that are demanded by the consumers and need to fulfil their expectation arising in the market.
REFERENCES Books and journals Barnes, D., 2018.Operations Management. Macmillan International Higher Education. Chen, C., Zhang, J. and Delaurentis, T., 2014. Quality control in food supply chain management: Ananalyticalmodelandcasestudyoftheadulteratedmilkincidentin China.International Journal of Production Economics.152.pp.188-199. Demir,A.,2019.THEIMPACTOFSTRATEGICOPERATIONSMANAGEMENT DECISIONSONSHOPPERS'WELLBEING.AsianAcademyofManagement Journal.24(1). Erasmus,Jandet.al.,2020.Usingbusinessprocessmodelsforthespecificationof manufacturing operations.Computers in Industry.123.p.103297. Heizer,J.,Render,B.andMunson,C.,2017.PrinciplesofOperationsManagement: Sustainability and Supply Chain Management (Global editon). Pearson. Hill, A. and Hill, T., 2017.Essential operations management. Macmillan International Higher Education. Hohenstein, N.O., Feisel, E. and Hartmann, E., 2014. Human resource management issues in supply chain management research.International Journal of Physical Distribution & Logistics Management. Jin, H., Miao, Y. and Park, S.T., 2018. A Case Study of Marks and Spencer lost China.Journal of Industrial Convergence.16(2). pp.15-23. Naderi, M and et.al., 2019. Sustainable Operations Management for Industry 4.0 and its Social Return.IFAC-PapersOnLine.52(13). pp.457-462. Pronko, L. and Spiridonova, L., 2020. THE ROLE OF THE BUSINESS COMMUNITY IN THEEFFICIENCYOFBUSINESSOPERATIONS.BIOLOGICAL SCIENCES.49.p.16. Reid, R.D. and Sanders, N.R., 2019.Operations management: an integrated approach. John Wiley & Sons. Reid, R.D. and Sanders, N.R., 2019.Operations management: an integrated approach. John Wiley & Sons. Temnyshov, I.A. and Belyaev, A.M., 2020. Business Modeling In Business Operations of Manufacturing Company.MS&E.753(8). p.082027. Wolniak,R.,2020.Mainfunctionsofoperationmanagement.ProductionEngineering Archives.26(1). pp.11-14.