Business Operations and Management: Marks & Spencer Case Study Report

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This report provides a comprehensive overview of business operations and management, examining key functions such as human resources, marketing, production, finance, sales, accounting, and general management. It delves into the core activities that drive business success, emphasizing the importance of efficient internal processes. The report then applies these concepts to a case study of Marks & Spencer, a leading retail company. It analyzes Marks & Spencer's operational management decisions across various areas, including production, supply chain management, logistics, location strategies, quality control, and human resource management. The analysis highlights how these decisions contribute to the company's overall performance and competitive advantage within the retail industry, demonstrating the practical application of business operations principles. The report uses the Marks & Spencer case study to illustrate how effective operational strategies lead to increased value, profitability, and customer satisfaction.
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Introduction to
Business Operations
and Management
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Table of Contents
INTRODUCTION ..........................................................................................................................3
Main Body.......................................................................................................................................3
Main functions of business operations........................................................................................4
Company profile..........................................................................................................................5
Marks&Spencer operations management decision.....................................................................6
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business operations is the activity which are engaged to increase the vale and
profitability of the firm(Robinson,et. al., 2016). It refers to the managing the internal working of
business to increase the productivity of the firm and leads to generate higher revenue. There are
various operations in any organisation which perform their role in the achievement of business
goal. Marks&Spencer is the multinational company which is established in London, England.
This deals in home products, clothing and food products. This is founded by Michael Marks in
1884. It is the leading company in retail industry in UK. This report will cover the various
functions of business operations and evaluate the various operational management decision in
production, supply chain, logistics, locations strategies, quality control and human resource.
Main Body
Introduction to Business Operations.
It refers to the process of managing internal functions of the organisation that help in
effective and efficient working in the organisation and this leads to generate higher revenue and
profitability in the business. It is also concern with the financing the various business activity via
interest, dividend and so on. If the company is getting more return than investment, It means that
company is earning good profit. These operations will run effectively by analysing the market
properly and identify the needs and demand of the marketplace.
Main functions of business operations.
Business operations is the activity of managing the all the aspects of business in effective
manner that help in achieving the business goal. There are various functions of business
operations which perform their task in a right manner to meet the expectation of the customers.
It is concern with the manufacturing, production, supply-chain, human resources and controlling
all the activities in the business. Various functions of business operations are as follows:
Human resource: Employees are the backbone of any business. They are the main assets
of the business, which give maximum contribution in the achievement of business goal in
an effective manner. Human resource is responsible for choosing the best candidates for
their business operation so that company can increase their efficiency and increase their
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market share and profitability with large market segment. When the company hire skills
and talented employees according to their specialised area, they will work efficiency and
achieve the desired goal.
Marketing: It is the department which is responsible for advertisement of goods and
services to promote their sale in the market ( Pınarbaşı, 2018).These are the activities
which is engaged in the creating, communication the various aspect that give value to
customer. When the firm manufactures the goods and services, It is the second process
through which product can be promoted in the market via various promotional tools so
that potential customer came to know about the product and make purchasing for the
same. These promotional tools incurred high cost on their promotion of goods and
services and price of the good is the important factor while promoting any product.
Effective marketing impact the business for its future growth and profit.
Production and operation: This is the department which is engaged in the manufacturing
of the goods and services by using the firm's resources. Product and services are the
things by which company can increase their market share or can slow down their business
in the marketplace. It start from purchasing of raw material to getting feedback from the
customer. Suggestions from the customer leads to help in manufacturing and changes in
the product according to the preferences of the market. This department also engaged in
various stages of production cycle, scheduling, quality and cost control and maintenance
of machines. Quality goods will leads to create god brand image in the market and
generate higher sale.
Finance: It is the department which is responsible for raising the fund from various
sources to run the various operations of business in a better way(Linnenluecke, 2017). It
also prepare the list of current and future expenses than procure the funds accordingly for
the right allocation of funds according to the requirements is various department of
business. Funds are the main component which is needed to run the business activities
effectively. Funds raising and allocation is the duty of finance department, which does
their in right approach to achieve the business goal. It is responsible for bearing all the
profit and looses in the business and also manage all the monetary related aspect in the
business.
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Sales: It is the process of selling product and services by using various sales promotion
techniques. Promotion is the important tool by which company advertise their products
and services that directly effect the sale of the product and higher sale leads to generate
higher profitability in the company. Sales promotion technique includes discount, reward,
quantity gift and many more. These are the methods through which a firm can increase
their profitability and generate higher revenue.
Accounting: It is the process of recording, summarizing, analysing and reporting the
financial transaction of the various business activities and manage them in appropriate
manner with the aim of right allocation and usage of financial resources. It is the
important important factor by which any organisation can not survive in long term in the
market. This analyse all the expenses and income then take then the decision
accordingly. It helps in approaching the right balance sheet that show the growth or
failure of the business.
Management: this is the top level management, which involve CEO, directors,
operational-heads(Kapur and Kumar, 2016). These are the person who takes major
decision in the business with the aim of achieving the organisational goal in effective
manner by analysing the different aspects of business their risk and outcome. All the
function are conducted according to the decision making of the management.
Company profile
Marks&Spencer is the top leading retailing company which is dealing in clothing, food
product and home products. The headquarter of this company is in London, England. There are
959 stores in United Kingdom ( Hsu, et. al., 2017). Company become the first retailer to pre-tax
profit of more than £1 billion. It also listed in London Stock Exchange. It is the first top leading
company in retail industry which generate higher sale by meeting the expectation of the customer
in the large market.
Marks&Spencer operations management decision.
Production: A good product satisfy the customer needs as well as represent the purpose
of their product in the market place. Mars&Spencer is the manufacturing company which
design their product in their manufacturing unit them meet the best quality and latest
design of the product (Hong, et. al.,2016). Mark&Spencer need design stage process to
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ensure the quality, flexibility, speed and cost of the product at reasonable price. This also
considered the prices and promotion of the product that reflect the sale of the product and
its profitability. Production is the process of collecting raw material and giving the new
shape to the product to increase the market value of the brand.
Supply-chain management: Supply chain is the important tool through which final
product will reach to the potential customer in a effective manner. This is the best supply
chain management that where the raw material is carried out for the manufacturing of
goods then sends it to the market. It is the important factor that reach out the product to
the final users by the supply chain management. The final product will carried by
supermarket and then reach to the final users(Hacioglu and Sevgilioglu, 2019). The
product reach to various grocery shop or the retailer and then reach to the final users.
When, company is facing high demand in the market, Mark&Spencer will purchase the
raw material in bulk to meet the demand of the customer and leads the organisation to
earn higher sale.
Logistics: this is the method of keeping ahead all the product of the company for the
further sale. It is the important factor in delivering the product to their final users. All the
stock is being kept in warehouse that is a place where all the inventory or final product
are kept for the further sale to the need and demand of the customer in the large
marketplace. All the logistics work is documented on paper. This is the delivering aspect
which need more paperwork that contains the type of product and the name of receiver at
a point of time. It also includes the location of the delivering the product and related
description.
Location strategies: Location is the important factor for any business. Location should be
feasible to buyer to reach the store easily. This play vital role in the growth of the
business(Gölzer and Fritzsche, 2017).If the store is in the hub of the city or at the centre
or the city where potential buyer can reach the store and shop according to their choices
and preferences. The production unit location is also the vital factor for the business. The
availability of raw material, labour, electricity can be easily accessible for the
manufacturing of goods in effective approach. Warehouse location is also considered as
important factor for supply chain and easy delivery of the product. but the warehouse is
near the store then the products will reach quickly. The right location play important role
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in growth and profitability of the business. Marks&Spencer is the leading retailing
company in London. This is the advantage of their location to increase the profitability of
the business and attract the large group of market for purchasing goods according their
choices and preferences.
Quality control: there is a separate department for measuring the quality of the product to
ensure that best product will be reach to their potential customer(Chang, 2016). It also
focuses on identifying the weak point of the product and correct it by apply various
strategies and them implement in the market for reaching potential customer. The final
product is tested by quality team and then further passes for the sale to their buyers. If
there is loop holes in the product the quality team will reject the product and keep that for
further changes and advancement. Marks&Spencer is manufacturing exclusive and
quality product. Quality of the product is the main point of attraction of the customer, so
it is necessary for the firm to produce best products to satisfy the need of the customer
and will leads to retention of the customer in their brand.
Human resource: It is the department which is responsible for recruiting and selecting the
potential candidate for the specific job role. This is the main department which increases
the productivity of the business. It also engage in motivation of the employees so that
they can work effectively to achieve the business goal. Marks&Spencer is leading
organisation and having best employees that are manufacturing the finest product to meet
the exception of the customer. It also do performance management for analysing the high
working employees in the organisation and reward them accordingly in better way.
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CONCLUSION
This is concluded from the above report that business operation are the major aspects of
the any organisation. There are various functions of the management which play important role
in profitability and growth of the business. Marketing department play important role in
promotion of the various product and services of the company to promote their sale. Human
resource is also a major department that select the potential candidate for the specific job that can
match the requirement of the job and meet organisational goal. This report covers the various
operation management decision that contribute to the growth and profitability of the business.
Supply chain management is the important factor that enabler the product to their potential
customer with quick delivery and right approach. It also determine the productiona nd operation
factor that says factor of production can be easily accessible to the firm that help in achieving the
business goal.
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REFERENCES
Books and Journals
Chang, J. F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Gölzer, P. and Fritzsche, A., 2017. Data-driven operations management: organisational
implications of the digital transformation in industrial practice. Production Planning &
Control, 28(16), pp.1332-1343.
Hacioglu, U. and Sevgilioglu, G., 2019. The evolving role of automated systems and its cyber-
security issue for global business operations in Industry 4.0. International Journal of
Business Ecosystem & Strategy (2687-2293), 1(1), pp.01-11.
Hong, S., et. al.,2016. Why firm size matters: investigating the drivers of innovation and
economic performance in New Zealand using the Business Operations Survey. Applied
Economics, 48(55), pp.5379-5395.
Hsu, P. Y., et. al., 2017. Using contextualized activity-level duration to discover irregular
process instances in business operations. Information Sciences, 391, pp.80-98.
Kapur, P.K. and Kumar, U., 2016. Special issue on reliability, infocomm technology and
business operations. International Journal of System Assurance Engineering and
Management, 7(4), pp.399-399.
Linnenluecke, M. K., 2017. Resilience in business and management research: A review of
influential publications and a research agenda. International Journal of Management
Reviews, 19(1), pp.4-30.
Pınarbaşı, F., 2018. The effects of strategic design on business operations. In Strategic Design
and Innovative Thinking in Business Operations (pp. 115-129). Springer, Cham.
Robinson, P.,et. al., 2016. Operations management in the travel industry. Cabi.
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