Detailed Business Operation and Strategy Report: Oak Pub, Huddersfield

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This report provides a detailed analysis of the business operations and strategy of the Oak Pub in Huddersfield, UK. It begins by summarizing the key priorities for operations management within the first 90 days, focusing on problem identification, policy formulation, planning, resource control, and communication. The report then emphasizes the importance of developing and implementing a specific operations strategy, highlighting the significance of cost management, quality assurance, timely service delivery, and flexibility. Furthermore, it explores the crucial role of operations in designing new services and products, including outsourcing design capabilities, identifying profitable products, and leveraging product components and mass customization. The report concludes by emphasizing the importance of effective operations management for the Oak Pub's success in a competitive market, recommending strategies to improve existing products and services.
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Business operation and
strategy
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Understanding the scope of operations management role by summarising the list of key
priorities for the first 90 days.................................................................................................1
Importance of developing and implementing a specific operation strategy...........................3
Role of operations in designing the new services and products at the OAK pub..................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Business operation management is analysed as an important function that is responsible
for the management of the process of development of goods and services. For the regulation of
effective business operations, organisations have to plan, organise, coordinate and control all the
resources which are required to produce their products and services (Slack, 2015). Present report
is based on analysis of Oak Pub Hudderfied situated in Yorkshire, UK. Further, scope of
operations management role and key priorities have been discussed along with the importance of
development and implementation of a specific operation management strategy. At last, role of
operations in designing new services are also discussed.
Understanding the scope of operations management role by summarising the list of key priorities
for the first 90 days.
As per the given scenario, it is analysed that effective management of business operations
requires development and implementation of effective operational strategies. In Oak Pub,
department of operations management needs to perform some specific duties and priorities their
task in order to develop new products and services for meeting the customer requirements. It is
also stated in the case study that Pub has recently seen decline in their sale because of ineffective
management of operations. As per Jacobs, Chase and Lummus, (2014), operations managers are
essential for any large organisation as they perform their functions effectively in order to
cooperate with the management and accomplishment of organisational objectives. Moreover,
there are some important roles needed to be performed by operation management in Oak Pub
which are as follows: Identification of problems: Within 90 days of operations management, managers have to
apply various methods in order to analyse the problems which have created the situation
of decline in sales of Pub (Bharadwaj and et.al., 2013). Reasons behind decline in sales
will be in effective products and services, no proper delivery of services, high cost,
competition, substitutes and in effective services management. Proper analysis of reason
will provide major support in analysing the steps which are needed to be taken in order to
regulate effective business and raise the profitability. Policy formulation: Second priority for effective management of business operations is
to formulate policies. Managers in Pub should operate and function on daily basis within
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a prescribed set guidelines. They should monitor function of their employees at
operational level and motivate them to perform their job effectively. Training must be
provided to employees to make them competent for delivery of proper customer service.
Policies will involve disciplinary actions which are to be taken when employees break the
company rules. Planning: effective management of operations will be possible when the managers
develop and implement proper plans and activities effectively. They have to determine
which products are purchase and sold along with the proper demonstration of prices.
They must plan and coordinate acclivities among the various departments to determine
what type sales promotions the company needs to engage in. Controlling resources: Most effective function which tends to raise the sales and
profitability is management of resources (Khalili Shavarini and et.al., 2013). In Oak Pub,
managers need to identify the requirements of resources in day to day operations along
with their cost and ensure that employees will make optimum utilisation of resources.
Operations manager must regularly view financial statements to make sure that pub is
operating as efficiently and profitably as possible. Communication: Most effective and core responsibility in operation management is
communicating with the other professional in management for effective regulation of
business. In this context, operations managers are responsible for putting together the
financial statements which are considered as essential for top managers
Competitive priorities: The major key of developing an effective operation's strategy lies
on analysis of ways to create or add the value for customers (Heizer, 2016). Further,
specifically value is added through the competitive priorities which are adopted to
support a given strategy Skinner and other initially identified four basic priorities. These
four priorities are cost, quality, delivery and flexibility. In OAK pub, operational
management will have to adopt these strategies for increasing effectiveness in their
business processes. They should deliver high quality services to their customers at
competitive prices and provide them flexibility to enjoy their services.
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Importance of developing and implementing a specific operation strategy
In every business, operations strategy plays an important role in providing a plan for the
operations functions so that the organisation will be able to make effective use of resources.
Operations strategy specifies the policies and plans developed and implemented by managers of
Oak Pub for using the organisations resources in order to support their long term competitive
strategy. In this, company will develop a plan for operations functions to provide appropriate
support to the business strategy. Below given points will determine the importance formulation
and application of a specific operation strategy such as: Cost: Formulation and implementation of operations strategy is important in Pub as it
helps in evaluation of projects costs and also demonstrates the cost allocation to funds the
operations of business (Chang, 2016). Through further planning and undertaking
financial studies and projections, operations strategy implementation process will save
the money in end by reducing the unforeseen costs. With specific strategy, managers will
be able to get effective analysis of cost which they have to meet in their operations. Quality: In organisation, operations strategy is usually developed to raise the quality of
product for providing satisfaction to customers and increasing the sale. In OaK Pub,
implementation of strategy will provide support in increasing product's primary operating
characteristics, conformance, feature, durability, reliability, service ability and perceived
quality of products and services (Lawton, 2017). It tends to raise the demand of product
among customers and help in attaining competitive advantage over rivals. Time: Super services will be considered by the term customers service which means
rapid delivery, on time delivery and convenient location (Nankervis and et.al., 2013).
Specific operation strategy will provide support to management in reducing the time of
delivery of services and products to customers which tend to resolve their grievances
such as ineffective delivery of services etc.
Flexibility: Environment of every organisation changes rapidly involving the customers’
requirements and expectation, the capability of enterprise to adopt these changes can be a
winning strategy (Dul and et.al., 2012). With effective operation's strategy, company will
be able fulfil two dimensions of flexibility such as ability to offer a variety of products
and services and customize them to the unique requirements of clients called product
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flexibility. Second dimension is ability to continuous raise the amount of production for
accommodating the changes in demand called volume flexibility.
Thus, it can be said that operation strategy has major importance in effective management of
business and operations of organisation.
Role of operations in designing the new services and products at the OAK pub.
New product and service design is an activity that involves planning as well as organizing
people, infrastructure, communication and important components of a product or service in order
to make improvement in quality and interaction between organisation and its consumers (Hill,
Jones and Schilling, 2014). In this context, it is analysed that operation management also plays
an important role in design of new and products service at OAK Pub to meet the customers'
expectation along with increasing the sale (PRODUCT DESIGN, 2017). Below given are the
points which determine the role of operations such as: Outsourcing design capabilities: In service sector, product design is considered as cross
functional because in diversified business, customers’ demands greater product's variety
and switch more quickly to the products (Armstrong and Taylor, 2014). In Effective
operations' management, managers tend to outsource the product design capabilities
which are considered essential for them to manage and coordinate the effective flow of
information among the supply chain participants (Jacobs, Chase and Lummus, 2014).
This will more effective because the Oak Pub will outsource its components to two or
more suppliers. Profitable products: Study has stated that effective product's management will help in
identification of more profitable products with less input to Oak Pub so that they will be
able to charge competitive and maximise adequate profits (Stark, 2015). Through
innovation and getting suggestions of employees, managers will able to design their new
products effectively. Operations will also provide complete information to employers
about the effectiveness and demand of products in market. Product components: Operations department in OAK pub also an important role in
identification and providing information about new products to consumers so that they
will be able to get higher profits (Yoon, Kim and Rhee, 2012). Customers demand greater
product variety and are quick to shift to new, innovative, full-featured products. For
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improvement of quality and designing innovative products and service, operation will
tend to analyse the customers’ requirements and analysis of competitors products to raise
the customers’ demands (Beuren, Ferreira and Miguel, 2013).
Mass customisation: It is the low expenditure, high quality and ample volume of
individually customized products (Tseng and Hu, 2014). Through mass customization,
Operations department in Oak Pub will raise the capability to quickly design and produce
customised products on an large scale at an effective cost which is comparable to the non
customised products.
CONCLUSION
This report has provided a complete understanding that it is important for enterprise to
manage its operations effectively in order to sustain in competitive market. Further, operations
strategy has major importance in effective management of business and operations of
organisation. Through implementation of effective and productive strategies, Oak Pub will be
able to make improvement in their existing products and services.
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REFERENCES
Books and Journals:
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Beuren, F.H., Ferreira, M.G.G. and Miguel, P.A.C., 2013. Product-service systems: a literature
review on integrated products and services. Journal of Cleaner Production, 47, pp.222-
231.
Bharadwaj and et.al., 2013. Digital business strategy: toward a next generation of insights.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Dul, J. and et.al., 2012. A strategy for human factors/ergonomics: developing the discipline and
profession. Ergonomics, 55(4), pp.377-395.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Khalili Shavarini, S. and et.al., 2013. Operations strategy and business strategy alignment model
(case of Iranian industries). International Journal of Operations & Production
Management, 33(9), pp.1108-1130.
Lawton, T.C., 2017. Cleared for take-off: structure and strategy in the low fare airline business.
Routledge.
Nankervis, A.R. and et.al., 2013. Human resource management: strategy and practice.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Stark, J., 2015. Product lifecycle management. In Product Lifecycle Management (Volume 1)
(pp. 1-29). Springer, Cham.
Tseng, M.M. and Hu, S.J., 2014. Mass customization. In CIRP Encyclopedia of Production
Engineering (pp. 836-843). Springer Berlin Heidelberg.
Yoon, B., Kim, S. and Rhee, J., 2012. An evaluation method for designing a new product-service
system. Expert Systems with Applications, 39(3), pp.3100-3108.
Online:
PRODUCT DESIGN. 2017. [Online]. Available through:
<http://www.referenceforbusiness.com/management/Or-Pr/Product-Design.html> .
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