Business Operations and Management: Report on Key Operational Issues

This report examines business operations and management, focusing on key operational issues. It summarizes two articles highlighting challenges such as poor global food supply chains and labor shortages in the food industry, offering potential solutions like international unity and job creation. A case study analysis identifies customer sacrifices in the ALDI business model, like limited brand choices. The report also explores the ethical approach of loyalty in organizations, emphasizing the importance of providing quality products and complete information to customers, which enhances customer satisfaction and motivates employees. The accompanying presentation further illustrates the impact of operational management on organizational development, concluding that effective business and operation management is crucial for organizational success.

Business operations and
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Summarizing two articles related to key operational issues........................................................3
TASK 2............................................................................................................................................4
Question 1....................................................................................................................................4
Question 2....................................................................................................................................5
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
The business and operations management is the administration of business activities and
practices that creates highest grade of efficiency that is possible in the workplace. The report is
consisting of four tasks. The task one includes two articles that shows the issues in the
operational management. Its cause and solution is included in the task one. Task two has a case
study and identification of its relevant problems in it. In the report there is a mini presentation
also, that shows the impacts of operational management in an organization.
TASK 1.
Summarizing two articles related to key operational issues.
Article 1.
The major issue in the operational management:
The main issue in the key operational management is the poor supply of food chain at the
global level. This issue has been occurred due to the pandemic disrupted in the global market.
The government is facing the shortage at worldwide level in order to overcome from the
challenge of food shortage in the world. The major proportion of food shortage is experienced by
the 13% of people from France and 8% in Denmark.
The reason behind the issue:
Pandemic is the major cause behind this operational management issue of food shortages
at global level. At the times of pandemic people are suffering from lack of sources, that includes
the food shortage as a major crisis among the people. The pandemic has disrupted the global
market chain. This leads to decrease effectiveness of food supply globally.
Solution to the cause:
The only solution that helps government and people from overcoming to this problem is
the unity among the nations and financial support to other countries (Kerzner, 2022). The
neighbour countries can provide financial support to other, so that one can overcome from the
crisis of facing food shortages after the pandemics.
Article 2.
Issue in the operational management:

The labour shortage in the food industry can also be termed as issue in operational
management. The food industry is already facing the issue of shortage in food supply in the
global market (Malinda, and Soediantono, 2022). whereas the shortage in labour is also be count
in issue of supplying of food in the international food market.
Cause of the issue:
The significant reason behind shortage of labour and shortage of food supply in the food
industry is, the shortages is driven from combination of various factors in the industry. Such as,
the noticeable factors are lack of heavy good vehicles. The heavy goods vehicle is used in
carrying the high amount of goods and products. But the lack of heavy good vehicles results in
shortage of supplying the good and products in the market.
Suggestion to overcome:
The solution that can helps in overcoming from the problem of shortage of food and
shortage in labour is, the organization can create job opportunities so that labours can get work to
do so. Creating job opportunities for labour results in over coming from the shortage of labour in
the market. The issue can also be resolved by providing heavy good vehicles to the industry. This
can make the transportation easy and the shortage of food and good supply can be resolved.
TASK 2
Question 1
Different customer experiences are offered by ALDI and similar stores. A similar
business model would work in some industries. The business model adopted by ALDI has
several features. Instead of operating on a 4000 square meters space, ALDI operates on a much
smaller area equal to 100 to 1500 sq. mt. Unlike many traditional supermarkets, the area of
ALDI stores is much smaller. This provides a number of advantages to ALDI. The prime among
them is that it is easier for the company to find sites that accommodate smaller stores (Brandes
and Brandes, 2019). Also, these sites can be found closer to target locations. This makes it
convenient for the customers who do not have to travel longer distances for grocery shopping.
Therefore, they tend to make frequent visits. Home furnishing industry can use similar model.
For example, consumers are in need of various articles of home furnishing every now and then.
Having access to a smaller store nearby would make consumers come there frequently. This

industry would be benefitted by opening stores nearby localities and residential areas.
Furthermore, ALDI’s business model makes it rely on its own exclusive brand products (Schmid
and et.al., 2018). This can be adopted by other industries for example, the organizations
providing home furnishing products can keep their own brands in the stores which would help in
building brand awareness among the consumers.
Question 2
Customers have to make various sacrifices in order to have access to this shopping
experience. ALDI relies on its own exclusive brands for various products. Customers may have
different choices for brands. Their preferences may also be different. These needs related to the
brands may not be met (Ahmed, 2019). The customers may have to sacrifice the brand of their
choice and comprise on buying the products of the brands provided by ALDI. Secondly, only a
few variants of each product may be available at ALDI. Therefore, the customer may have to
sacrifice their desire to have more variants to choose from. They may also not get an updated
variant for a product and may have to sacrifice their choice of the same. Hence, it can be
analysed that limited choice is a sacrifice made by the customers for having this experience of
the ALDI stores (Sohl, Vroom and Fitza, 2020). Another sacrifice made by the customer will be
forego their desire to have a shopping experience of long duration. There are customers who go
to shopping as a leisure activity. Smaller store area would not provide this experience to them.
TASK 3.
The ethical approach of loyalty in an organization
The examples that are identified in practising or implementing the ethical approach of
loyalty towards the customers of organization. It is the duty of every organization to provide
proper knowledge and information to the customers about the goods and products they are
serving to their customers. Below mentioned are some loyalty aspects, that must keep aware by
an organization for its customers. They are as follows:
To provide quality products: Organization should provide quality product to its customer.
It creates a sense of loyalty base into the customer’s mind. By providing the quality products to
customers, the organization can capture or acquire more market sector in terms of loyal
customers of the product.

To provide complete information: It is the right of customers that they should know every
single information about the product that they are using. Organization must make sure that; they
will give complete fair information of the product to its consumers (Jung,and et.al., 2022.0.
Organization can provide complete and fair information on the packaging of the product, or on
its official website. From where the customer can get full knowledge and information about the
product they are using or willing to use.
Benefits of loyalty to employees of the organization;
Enhancement of customer’s satisfaction: The loyalty that is provided to the customers,
this will create a sense of upgradation in the satisfaction of the customer’s perception. To retain
customer’s loyalty, organization has to make them feel satisfied. So that satisfied customers will
build image of the product in the market.
Motivates to perform better: The enhancement in customer’s satisfaction will lead to
motivate the employees to perform even better than before. Customers satisfaction helps
employees and organization to perform better or to innovate something new for the customers.
Motivated employees in the organization will help the organization in attaining its objectives
effectively and efficiently (Bailey, de Puit, and Romolo, 2022).
Helps in product development: Customers loyalty helps the employees in the developing
their product as per the need and wants of the consumers. The development process is done
through the feedbacks and views of customers about the offered product in the market.
TASK 4.
Covered in PPT
CONCLUSION
From the above report it is conclude that the business and operation management has a huge
impact on the development of an organization. The report concludes two articles that shows the
impacts of food and labour shortages in the international market. The report also concludes case
study and ethical approach of; loyalty towards the customers and employees of the
organization. The operational management also impacts on the business area of an organization.

REFERENCES
Books and journals
Kerzner, H., 2022. Project management case studies. John Wiley & Sons.
Malinda, A. and Soediantono, D., 2022. Benefits of Implementing ISO 45001 Occupational
Health and Safety Management Systems and Implementation Suggestion in the
Defense Industry: A Literature Review. Journal of Industrial Engineering &
Management Research. 3(2). pp.35-47.
Jung,and et.al., 2022. Overview of NASA’s Extensible Traffic Management (xTM) Work.
In AIAA SCITECH 2022 Forum (p. 1916).
Bailey, M.J., de Puit, M. and Romolo, F.S., 2022. Surface Analysis Techniques in Forensic
Science: Successes, Challenges, and Opportunities for Operational
Deployment. Annual Review of Analytical Chemistry. 15.
Brandes, D. and Brandes, N., 2019. Bare Essentials: The ALDI Story. Linde Verlag GmbH.
Schmid, S. and et.al., 2018. Aldi and Lidl: from Germany to the rest of the world.
In Internationalization of Business (pp. 81-98). Springer, Cham.
Ahmed, M., 2019. The US Grocery Industry in the 2020s: Who will come out on top?. Global
Journal of Business Disciplines, 3(1).
Sohl, T., Vroom, G. and Fitza, M.A., 2020. How much does business model matter for firm
performance? A variance decomposition analysis. Academy of Management
Discoveries, 6(1), pp.61-80.
1