Business Operations Analysis: Vodafone, Samsung, and Toyota Strategies

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This report delves into the core aspects of business operations, examining the day-to-day activities that drive organizational success. It explores various business functions, such as marketing, research and development, and human resources, highlighting their significance in achieving company goals. The report identifies and analyzes key challenges in managing business operations, including customer satisfaction, skills gaps, technological advancements, and social responsibility, and proposes potential solutions. Furthermore, it evaluates the strategic planning approaches of Vodafone and Samsung, comparing their strategic and operational planning frameworks. The report also examines the supply chain management practices of Toyota, focusing on Just-in-Time (JIT) and Total Quality Management (TQM) methodologies. The report provides a comprehensive overview of business operations, offering valuable insights into strategic planning, operational efficiency, and supply chain management, making it a useful resource for students studying business development.
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BUSINESS
OPERATIONS
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Table of Contents
INTRODUCTION...........................................................................................................................1
Q 1a. Various Business Function................................................................................................1
Q1 b. Four major challenges involved in managing business operations and offer solution......2
Q2. Evaluation of business operations and strategic planning of Vodafone and Samsung........4
.........................................................................................................................................................8
Q3. Supply chain management of Toyota .................................................................................8
CONCLUSION .......................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business operations are the day to day activities which every firms perform in their
organisation so they can earn profit. The work of various departments like marketing, finance,
human resources etc. are some of the main activities that is done in an enterprise (Henri, Boiral
and Roy, 2016.). This report will discuss about business functions, different challenges in
managing companies operations will also become significant part of this report. Strategic
planning in a manufacturing and service sector will be included in this file. Some important
concepts like product development and market development will be explained in this assignment.
Supply chain management of a real organisation will get cover in this project. Just in time (JIT)
and total quality management (TQM) will be the main approach which will be discussed in this
report.
Q 1a. Various Business Function
Business operation define day to day activity of the organization which is used by the
Tesco to generate more profits. Tesco is a retail which provide quality services as well as
products to their customers in order to achieve higher success at market place. In this
management is more important because it is an effective which helps in controlling and dealing
with various peoples in order to achieve organizational goals and objectives (Amoako-Kwakye,
2012). It is an art of receiving things complete through people. In this there are various business
function which helps in achieving organizational goals in appropriate manner.
Marketing Function: It is important function of the Tesco to define effective marketing research
and plan in which they develop their products. For this they use various promotional activities,
advertising, distribution of sales and also define the better customers relation which helps in
improving overall performance of the company in effective manner.
Research and development: This department having important function in which they
investigate all the business activities in order to improve their product quality which helps in
improving the existing activities in effective manner. For this Tesco undertake various research
to identify the current trends of the market and also evaluate the customers preferences so that
they deliver quality services to their customers in order to get higher satisfaction.
Human resource: One of the important function of HR is to recruit right person for right job so
that they easily perform their task and get better results. With the help of this Tesco improve
their overall performance level ion appropriate manner.
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All these function are more important for the company to get better success at market
place which directly affect on the organizational performance so that it is important to manage
these business function in best way.
In this various level is also include which helps in make effective decision for the
organization in order to improve the overall productivity of the Tesco.
Strategic decision: These type of decisions are taken by top level management with in the
organization and they take all types of decision which is follow by the every level to manage
and perform all the task in appropriate manner (Galindo and Batta, 2013).
Tactical decision: In this middle level management include all these decision which is taken by
top level management so that they easily formulate their process and also provide operational
level so that they perform their work with more efficiency.
Operational decision: In this all the direction and decision are followed by the lower level
management which helps them to perform their operational activities and they also take
operational decision in order to make better working environment at workplace (Heizer, 2016).
All these level are interrelated with each other because all the decision are formulated
within them which helps in taking best action about all the business operation. It helps in
improving performance of the company at market place.
Q1 b. Four major challenges involved in managing business operations and offer solution
Managing operation is more important for the Tesco to achieve their desirable goals and
objectives in systematic manner. With the helps of this company easily improve their
performance level and also capture large market share from its rivals. Without management
nobody can able to get success so that it is important for an enterprise to manage their activities
of operations in effective so that they take strong place at market place and easily achieve best
success (Hill and Hill, 2012). At the time of operating business operating various issues as well
as problems are faced by the company which lead in reducing the brand image at market place.
Challenges Explanation Solutions
Customers satisfaction Customers satisfaction is one
of the complex situation for
the Tesco because without
satisfaction company can not
One of the best solution of
getting customers satisfaction
provide quality services to
their customers at affordable
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achieve success and also
reduce their sales in market
place. Some time company
fails in inviting customers
toward their products and
services which reduce their
goodwill at market place
because they do not provide
quality products to their
consumer so that they
dissatisfied with their services
(Sarkis and Dhavale, 2015).
Maintain high level of
satisfaction required more
funds like company invest in
quality raw material,
technologies, better
distribution channels. So that
its create more challenges in
front of organization. Maintain
better satisfaction is one of the
biggest task for the company
which helps them in improving
overall performance of the
company.
price. For this it it is important
for the marketing department
to undertake various research
to identify their needs and
demand in appropriate manner
so that company easily provide
quality services to their target
customers according to
requirements. It helps in
increasing the satisfaction and
also improve performance of
the company at market place.
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Skills Skills is also an important for
the company to complete their
task in effective manner. So
that recruit skilled and
experiences employees is one
of the important responsibility
as well as challenges for the
Tecso.
For selecting skilled
employees it is main
responsibility of human
resource department to select
right person for right job so
that they perform their task in
appropriate manner and get
positive results.
Technology Technology up gradation is
one of the big challenge for the
Tesco because it requires huge
amount and experts for using
technologies.
For resolve this challenges it is
important responsibility of
finance department to maintain
their funds. So that they
upgrade their technologies
timely basis (Zairi, 2012).
Social Responsibility Social responsibilities is also a
big challenges for the
company because it also
required more amount to
maintain the social welfare in
their country.
For resolve this, it is important
for the company to manage
their fund and introduce
attractive as well as quality
products in front of investors
so that they invest their money
in the organization which helps
in completing all the social
responsibilities in appropriate
manner.
Q2. Evaluation of business operations and strategic planning of Vodafone and Samsung
Comparison strategic planning and operational planning of Vodafone service industry
Basis of comparison Strategic planning Operational planning
Meaning It is the planning to achieve the
vision and mission of the
Operational planning is the
forecasting and estimating in
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organization. It uses various tools
like SWOT analysis, PESTEL
tools, Ans Off matrix's, etc
(Carroll and Shabana, 2010.). to
make a strategic plan
advance about how much to produce
in future to satisfy customer's
demand (Kojima, 2010). It uses
various tools like Gantt chart, Six
Sigma, Kaizen, Economic order
quantity, etc.
Time Horizon It is long term planning, because it
consumes lots of time in
researching the service market.
Vodafone has to do internal as
well as external analyses before
launching its product and services
in the market.
It is short term process because it
only plans about how much SIM
cards and dongles to be produced in
next session. Strategic planning
makes its works easy by give the
information about how much to
produce in next year.
Modifications It's effect is long lasting, thus no
space for modification is left in
plan. Any change can effect whole
organizational structure of
Vodafone.
Operational plans changes every
year, because each year demand for
Vodafone services is changing.
Performed by It is performed by Top Level
Management, as lots of research
work is needed in strategic
planning. And its effect is long
lasting so responsibility is also
high.
It is performed by middle level
management specially by
production department.
Scope It has wide scope because it can
change the whole economy
(Zikmund, 2013). It is done on a
macro level, as it considers
political and economical factor,
while making strategies for
It has narrow scope because it can
only effect Vodafone company by
not fulfilling the demand gap. It can
also affect companies image by
delivering bad services to its
customer's. But bad reputation can
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Vodafone. It can effect inflation
and economy of UK.
be managed through good public
relations with media like BBC.
Emphasis on It effects by planning vision,
mission and objectives of a
Vodafone (Lun, Shang, Lai and
Cheng, 2016.).
It is affected by planning routines of
Vodafone.
Generic strategic planning for the Vodafone: The company can use this strategic planning
which can help to them to survive in the high market competition. Differentiation strategy can be
used in this which can help to them to make better change in their plans from the other
companies (Lun, Shan and Cheng, 2016). Most of the companies which are working in the
telecommunication industry are providing 4G services but company their data speed slow so the
company can provide the real speed of the data transmission which can differentiate from the
other companies working in the same industry. They can use premium pricing for this but they
have to provide a high data speed.
Intensive strategies for the Vodafone: Market and product development are the two
development strategies which can be used by the company to enhance the number of customers
and beat the market competitions. Market development can be done by using attractive
promotional strategies and campaigning in which company can communicate about their
different kind of plans which can help to them to increase the interest of other markets. Market of
the Vodafone can be divided in to the different segments which can be based on the age, income
and profession on which they can segment their products and promotional strategies.
Product development can be done by the company by analysing the needs of the people,
so they have to take regular feedbacks of their regular customers by which they can design their
packages (Krajewski, Ritzman and Malhotra, 2013). They can separate their packages in
different data and calling combinations which can help to them to attract their targeted people.
This will be help full for the company to develop new products and plans for their different
targeted customers which can help to them to make a better sales. So these kind of product
development strategy has to be adopted by the Vodafone which can help t them to provide a
variety of products and make a lead on the market.
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Comparison between strategic and operational planning of Samsung manufacturing company
Basis of comparison Strategic planning Operational planning
Meaning It is the process moving
towards in a particular
direction, the proper
allocation of resources is
crucial part of strategic
planning.
It is a plan which reveal the
clear picture about the
contribution of very
department and section in
attaining strategic goals.
Time horizon This type of planning is done
for a long period of time, it
cover lot of areas. Normally it
is done for at-least 3-5 years
but there is no hard and fast
limit and Samsung make it
more than 5 years.
Samsung do this kind of
planning for around one year.
Operational plans are made for
generally made for one year
but an organisation can also
make it on weekly or monthly
basis.
Modification Making changes in this kind of
plan is very difficult because
they last for long time. If one
thing is changed in the plan
then it will make impact on all
part of the business.
Operational planning changes
every year and it can easily be
altered by managers. They do
not affect every department or
section of the company.
Performed by Strategic planning is done by
top level management. They
may take suggestions from the
workers who are working at
ground level but they are
responsible for making final
call.
Operational planning is done
by middle level management,
in companies like Samsung,
manager do not need to take
any approval from the senior
manager who are sitting in top
level management but in small
companies managers may have
to take their permission for
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implementing these plans.
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Scope Its scope is wide because it
covers complete organisation.
If a small change in made in
strategic plan then it make an
impact on all the departments.
Its scope is narrow and
variations in plans do not make
a significant impact.
Emphasis on It mainly focus on attaining
organisational vision, Samsung
has some aggressive mission
and this strategic help them in
attaining these objectives.
It only emphasis on routine
work, long term goals are
ignored in this kind of plans.
Q3. Supply chain management of Toyota
Toyota is a leading company in auto-mobile sector, they are running their business in
many part of this world they were holding the position of table leader for long time. This
enterprise is known for their innovations in the industry and they are using various techniques for
reducing the cost of their business. Below are two of the main methods which Toyota is using
from many years:
JIT – Most of the approaches used in this company is related to minimising the cost by
making necessary changes in the production process but Just in time technique try to reduce the
expenditure by decreasing storage cost. Toyota manufactures motor vehicles, they need various
kind of material like glass, iron etc. If they store more raw material in their warehouses then it
will increase cost of production and if they will keep less raw material then they may face
problems in the middle of manufacturing process. JIT provide the correct time when purchasing
department should make an order. It analyse the response time of supplier and customer also.
This philosophy focuses on making long term relationship with limited number of suppliers
(Schulze, Seuring and Ewering, 2012). Toyota is using this system so they can manufacture the
exact quantity which is needed by company, if an enterprise know that what will be the actual
demand of customers then this can give them competitive advantage on the other players of the
industry.
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This approach play crucial role in eliminating the wastage, this ultimately make a positive
impact on the profit of Toyota. Their manufacturing cost is less then other players of the sector
and they have higher margin on every products because their storage cost is low. The role of
customers and suppliers are important in JIT model. Cited firm is not using this approach in
countries like India because they know that they are failing to find reliable suppliers and they
transportation system in these countries cannot be trusted. This enterprise should think about
starting using this model in some developing nations like India because they have attained
remarkable growth in last two decades and significant sectors like steel, iron, aluminium, glass,
etc. are now properly organised. They should also updated various soft-wares which they are
using in JIT model because in upcoming time, the demand of cars which can run by electric will
enhance along with hybrid cars.
Total quality management (TQM) – Toyota believes that wastage can happen by seven
factors, transport, inventory, motion, waiting time, over processing, over production, defects
(Netland and Aspelund, 2013). The TQM of cited company focuses on increasing the customers
satisfaction by making improvement in the products and service of the company along with the
culture that is present in the organisation. The buyers of the vehicles are the main area where
mentioned corporation concentrate because they know that if they will not get satisfy by the
product then whole efforts of the organisation will go in vein. Toyota used this system in 1980
and they produced best quality of auto-mobile, in that time, that is present in the world (Yang
and Yang, 2013).
When cited firm started using this technique, they found that the main reason behind the
defect finished goods is wear in the machines. This organisation was using American approach
of manufacturing, Americans did not believe in repairing their machineries which are used in the
production process. They use one until it get broken. When Toyota was using this method, they
realised that this approach is hampering their efficiency. Dirt and chips were they main cause
behind wear in machinery, this corporation implemented TQM model and they started repairing
of machineries whenever it get broken. This helped them in introducing a smooth and effective
production process (Chiarini, 2012). Most of the potential buyers get best product in appropriate
time because of TQM. The model basically focus on increasing the level of customers
satisfaction in the buyers by improving production procedure or any other process, the approach
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