Business Operations Analysis: Brexit, ALDI Business Model & Ethics.

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This report provides a detailed analysis of various aspects of business operations management. It begins by examining the impact of Brexit and food product shortages on business operations in the UK, highlighting the challenges and uncertainties created by Brexit and the resulting supply chain disruptions. The report then delves into ALDI's business model, exploring its strategies for cost reduction and operational efficiency, and discusses the potential sacrifices customers may face under this model. Furthermore, it addresses business ethics, using Sports Direct as an example to illustrate how ethical practices and legal compliance can be integrated into management styles. Finally, the report includes a reflection on human resource management practices, discussing the challenges and positive aspects of managing employees effectively. Desklib offers a range of resources, including past papers and solved assignments, to support students in their understanding of these complex topics.
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................4
Adoption of similar business model with relevant example .......................................................4
Sacrifices that are to be made by customers under this business model .....................................4
TASK 3 ...........................................................................................................................................5
Business ethics ...........................................................................................................................5
TASK 4............................................................................................................................................6
Compiled in Appendix.................................................................................................................6
TASK 5............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDICES.................................................................................................................................9
TASK 4........................................................................................................................................9
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INTRODUCTION
The business operation refers to the activities that are conducted to run and manage
production process of the company (Barnes, 2018). In includes various activities like technology,
key operating expenses, personnel and key operating revenue. All these engaged in converting
the raw material into finished goods of company to offers the product of company into target
market. The business management refers to the practices of managers to manage the operations
of business as well as to guide and control the employees towards the achievement of
organisation goals. The activity focuses on planning, organising and determining of business
functions which are needed to run and efficiently manage a business. This reports highlights 5
tasks that is, contemporary Research, ALDI, business ethics, class discussion and collate the
portfolio.
TASK 1
Operation management is related to analysing and reviewing all the operations as well as
aspects of a company that assist firm to accomplish their specified goals (de Sousa Jabbour and
Et. Al., 2019). With the changing situations of world, many operation management issues have
started to take place in companies. The current two operation management issues that have been
in news are explained below:
Issue of Brexit- Brexit deal is the withdrawal of UK and north Ireland from European
Union (Dincer, Hacioglu and Yüksel, 2018). This decision taken by government has adversely
affected the operations of business in UK. It resulted in closing of many outlets of various
businesses due to Brexit bureaucracy. To understand the uncertainties created by Brexit,
University of Nottingham along with the team of Bank of England has conducted a survey of
around 7500 businesses in UK. The survey lists out that Brexit has adversely impacts the growth
and success prospects of companies leading to 6% reduction in investment and lowering
employment level by 1.5%. The researchers estimated that this decision will minimise
productivity of firms in future by half and resources will be allocated to low productivity instead
of higher productivity firms. The executives and marketing director of businesses have predicted
that Brexit will cut their sales by great number and maximise costs of operations. It has also
decreased national British income by 0.6%.
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Food or Consumer products shortage- Food shortage in UK has been creating major
headlines in newspaper these days. Supermarkets shelves are emptied and restaurants menus
have been modified due to insufficiency of raw food (Helmold and Terry, 2021). These issues
have been arising due to shift in demographics caused by Brexit and to some some extent
because of pandemic. This resulted in shortfall of drivers of heavy goods vehicle who are
responsible for transporting consumer products in UK. Pandemic resulted in labour shortage
which created issues in haulage and logistics. There are goods available but only few drivers are
accessible to deliver them. The government of UK, make plans to fill the gap of industry and
allows European drivers to operate in UK. But the researchers and analytics of UK have
predicted that the crisis will deteriorate with time when the demand for goods will increase when
the lock down will end.
TASK 2
Adoption of similar business model with relevant example
ALDI works on a business model whereby, it keeps a variety of products but in limited
lot at their convenience stores for offering services through a local backdrop. Where,
supermarkets such as Tesco, Sainsbury and Morrisons have spent varied resources on their
operations for setting up their large stores. Managers of ALDI has take help of this business
model by opening up of their various shops in local areas. This has helped them to reduce their
operational cost as well as improve their management practices. They are facing the issue of
shortage of staff who can maintain cash registers as well as perform stocking job in an efficient
manner (Ivanov, Tsipoulanidis and Schönberger, 2019).
This business model can be adopted in food and beverage industry by opening varied
outlets on a local level which provides varied services to customers in a easy manner. This
business model ought to work in UK's food and beverage industry as people are indulgent in
nature and they want to enjoy their life as well as willing to go for eatery. For example, Gourmet
Burger has many restaurant or food outlet in UK which helps them to serve a massive number of
customers.
Sacrifices that are to be made by customers under this business model
Undoubtedly, this business model which is adopted by ALDI provides excellent services
to customers as they can shop their grocery through a nearby convenience store and not going far
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for this. Customers can gain a variety of products nearby their house. Although, this exercise
create issues for customers when they want many products of same brand for the festivities or
celebrations. For this, they have to travel to far off market for procuring their groceries. ALDI
reliance on products of their own brand at their stores helps them to increase their efficiency
level and lowering their overhead cost. This has also help them to gain competitive advantage in
market. However, this can be a poses as an issue to customers as they have to buy similar
products form their stores. Customers are loyal to brand and get retained for long time. But there
may be time where they can get bored with the use of similar brands (Luo and Choi, 2021).
They may want to switch to different brand.
TASK 3
Business ethics
Business ethics refers to the implementation of procedure and policies regarding various
topics such as bribery, frauds, corporate governance and discrimination (Muscatello, 2022).
Many business faced issues related to business ethics which can be influenced by behaviour
management, organisation structure and laws that are followed by the workforce of business.
For example: in Sports Direct, the managers use positive ethical approach in their management
style such as they follow divisional structure in their organisation. As divisional structure, they
delegate the responsibility and authority to all their workforce so they work with full dedication
and confidence by taking initiative to lead the task. The leaders use participative leadership
practice to work with staff members as they allow them to put some ideas and way of performing
a task in specific way in their group discussion. All the employees have the equal opportunities
to share their experiences, ideas, thoughts as well as problems that they faced while performing
some tasks to the managers so they considered it while assigning another task to them. Also, the
managers use various motivation techniques such as providing better training and development
program to improve the skills or knowledge of employees for their future development. Further
they use various techniques to measure the performance of employees then after they give
incentives, recognition, rewards, bonus and many more to the employees which perform best and
give their full efforts to complete the task on time.
The management try to make best and healthy environment for the employees by
providing them most effective plan for stress free working as well as by reducing their work load
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into small task which helps them to understand the task better (Pettinger, 2020). Also, the top
management of company conduct their business activities under various laws such as Equality
Act 2010 and Employment Act 1969. by using this laws in the internal activities of company
the management provides equal opportunities and salary to all, employees as per their job role
for their future development. Also, the management make effective processes and plans for the
working of their employees so they feel motivated and perform their task in most effective way.
They adopt various changes such as transform their way of working and provides various fringe
benefits to employees for their job security and retain them for long run.
TASK 4
Compiled in Appendix
The presentation I made about Human Resource Management gives me the insight into
the profession of human resource. The positive aspect of this profession from my point of view is
the ability to connect and motivate the employees of company and projects all of their efforts in
direction of firm's goals. In my opinion, this profession is the backbone of any organisation as it
deals with the workforce and provides them extensive knowledge about their work. Another
positive aspect of this profession I got know is the process of recruitment and selection of right
candidate on basis of their skills and talents so that it can maximise efficiency and productivity
of organisation. After researching thoroughly about human resource profession, I came to the
conclusion that it might create some challenges in organisation if the personnel responsible for
human management does not practices fairly and without any discrimination. I consider various
areas of this topic such as hiring, selecting, guiding, motivating, controlling and reviewing
activities of employees. The area of training and development is also associated with human
resource management.
TASK 5
This report comprises of four task whereby all tasks are in relation with topic of
operations management in business. Task one talks about impact of Brexit agreement and food
product shortage on business operations management. Brexit agreement can be understood as a
arrangement which marks the departure of UK from European Union. This practice has impacted
organisations of UK as they have to close down their operations which influence their generation
of sales. Food product shortage affects the spending and procuring practices of people. Task two
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has concluded a summarised case study of ALDI which provides an understanding of their
business model and also their implication on other industry. Task three summarises of varied
business ethics and sustainable practices adopted by managers of Sports Direct in their business
operations. Task four illustrates the understanding of human resource practices in an
organisation. It also delves into challenges and issues faced by managers in managing their
employees in an effective manner.
CONCLUSION
As per presented data, it is concluded that the operation and management activity focuses
on planning, organising and determining of business functions which are needed to run and
efficiently manage a business production process. The operations issues are related with Brexit
and consumer product shortage. The business ethics helps the management to conduct fair
practices with employees and customer to get profit. The human resource management has great
impact on overall operations and management of the company
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REFERENCES
Books and Journals:
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
de Sousa Jabbour, A. B. L. and Et. Al., 2019. Circular economy business models and operations
management. Journal of cleaner production. 235. pp.1525-1539.
Dincer, H., Hacioglu, Ü. and Yüksel, S., 2018. Strategic design and innovative thinking in
business operations. Series: Contributions to Management Science. Publisher: Springer
International Publishing.
Helmold, M. and Terry, B., 2021. Operations Management 4.0. In Operations and Supply
Management 4.0 (pp. 21-34). Springer, Cham.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2019. Global supply chain and operations
management: A decision-oriented introduction to the creation of value (Vol. 2). Cham,
Switzerland: Springer International Publishing.
Luo, S. and Choi, T. M., 2021. Great partners: how deep learning and blockchain help improve
business operations together. Annals of Operations Research, pp.1-26.
Muscatello, J., 2022. An innovative approach to operations management building partnerships
with local professionals. Journal of Education for Business, pp.1-3.
Pettinger, R., 2020. Introduction to management. Bloomsbury Publishing.
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.
Waters, D., 2019. Supply chain management: An introduction to logistics. Bloomsbury
Publishing.
Online:
Bloom. N and Et. Al., 2019. Brexit Is Already Affecting UK Businesses — Here’s How. [Online]
Available through: <https://hbr.org/2019/03/brexit-is-already-affecting-uk-businesses-heres-
how>
Patrick. C, 2021. Why are there food shortages in the UK? [Online] Available through:
<https://www.aljazeera.com/news/2021/9/3/why-are-there-food-shortages-in-the-uk>
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APPENDICES
TASK 4
Slide 1:
Slide 2:
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Slide 3:
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