Study | Business Administration

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Added on 2020-05-16

Study | Business Administration

Added on 2020-05-16

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Task 1: Process Architecture componentsInputs/ outputs Business operations are made of various components that make up its operationalprocesses. These components are classified into various categories such as inputs or outputs(Scheer 1999, p. 124). In this case, tangible observable business components are: customers whoare core part of business operations. Without customers there is no business operation as they aremain consumers of the subject product. As identified from the problem, product inflows to thestores are higher than out flows. The clear indication that is that, distribution of the product ishigher than consumption rate. To come up with solution on this, assumption might be that, thereis overproduction resulting to higher rate of inflow that outflow. The next input in businessoperation is product which is the center of business operations (Foquee 2010, p. 253). This is theentity which defines business process and activities that makes up entire business. Theassumption deduced from product as a component of business process is that, the product mightnot be fit for consumers, resulting to reduced consumption. The final tangible input in is cashwhich determines organizational ability to operate and capability of customers to acquireorganizational goods and services. The assumption on cash as business component is that,customers lack enough cash to invest in buying organizational product or the price of the subjectproduct might be higher. This ends up limiting customers’ ability to purchase the product whichin turn results to low outflow of the product from the stores. Mainly, according to Janeiro & Gil-Lafuente (2013, p. 334), the process components are representing organizational inputs formscore business operations.

InformationSimilarly, process architecture components can be intangible in any business operationmodel. In this case, the main focus would be on components that can be used to measureorganizational service delivery (Sheikh & Alnoukari 2012, P. 13). First, information collectedfrom business operations forms a vital business operations component. It is the outputcomponent that helps management of the organization to make viable decisions regardingsuccess of the business. In this case, all decisions and assumptions made would be based on theavailable information. It is through available information that organizational management woulddetermine why stores are getting filled. Once the cause is identified, it is the same componentthat would help in making appropriate decision regarding current state of the business (Scheer1992, P. 89). The assumption made when working on any data is that, information presentedabout business operations is correct and authentic. It should be reliable in making viable businessdecision regarding its success. Additionally, in 3PL business operations, time would be veryimportant component of business operations. According to Weske (2012, p. 334-335), timewould be used to evaluate when low product outflow began and what might have changed withinthat specific period that triggered a change in business operations. Important to note is that, timewould be used to measure the amount of resources required to revive business operations torequired standards. Assumption would be that, short and optimal time would be allocated torevive business in order to make sure normal operational procedures are back to normal. Finally,services offered in any business operations are quite important. Service delivery determinescustomers’ satisfaction and willingness to visit the same organization for the same service ordifferent one (Negash 2004, p 54). The assumption in this case would be that, services offered in

3PL are to the required standards and cannot be the cause of customer failure to consumerorganizational product. Flow UnitsFlow units are quite important as they determine the rate of stock turn over (Demirkan &Delen 2013, p. 420). It usually defines a chain of product flow through various stages as outlinedin a given business. In this case, the flow unit would be from raw materials acquisition, supplierof the materials, manufacturing which involves changing the subject materials into finishedproduct, distribution of the product to various stores and customers who acquires the product forvarious uses. Flow unit is business component that is made of various sub-components as it hasbeen outlined in this case study. It is through this flow unit that, our business entity is part of theprocess component. It is quite sensitive business because it deals with distribution of productsfrom manufacturing to the stores where customers’ purchase them for consumption(Frankenberger etal 2013, p. 270). Being part of the component, 3PL organization has been facedby operational challenges because stores are filled up yet customer turn out is very low. Since3PL operates between manufacturer and consumer, there is need to bring all the concernedentities on board in order to solve the problem facing the business. To solve the problem, 3PLshould look on possible causes of the problem. First, according to Scheer (2012, p. 32), there ispossibility of manufacturer producing sub- standard products that do not meet consumer needs. Ifproducts do not meet consumers need, there is possibility customers might be opting forsubstitute product. This problem speculation might be emanating from manufacturing stage insupply chain. The other possibility of the product outflow might be from hard economicsituations. When consumers are faced with hard economic situations such as high cost of living

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Study | Business Administration