Analysis of Business Systems at Mo's Meals - Unit 34 Report

This report provides a detailed analysis of the business systems employed by "Mo's Meals," a small UK-based company. It begins with an introduction to business systems, defining various processes and functions within the organization, including financial management, production, and customer development systems. The report evaluates the advantages and disadvantages of different business systems and their impact on sustainable business performance. It then identifies and assesses both internal and external factors, such as political, social, economic, and technological (PEST) factors, influencing the business systems and processes. The report uses PEST analysis to evaluate the impact of the environment on business systems and concludes with a summary of findings and recommendations.

Business
Systems

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1. Determine the overall environment where businesses operate and further define functions,
systems or processes....................................................................................................................3
P2. Evaluate the different types of business systems along with its advantages or
disadvantages ..............................................................................................................................6
M1. Evaluation of business environment or business systems that is related to the sustainable
business performance...................................................................................................................7
TASK 2............................................................................................................................................7
P3. Identify internal or external factors which impact business systems or processes................7
P4. Evaluate the benefits and limitations of internal or external factors that impact upon
systems or processes....................................................................................................................9
M2. Critically evaluate the impact of environment on business systems and its application with
the help of appropriate theory....................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Business systems is the set of organizational policies, equipment, human
resources, technical facilities and other business activities. There are various rules &
regulations build which required to governed (Bourgeois, 2018). This assessment is
based on “Mo’s Meals” that is a small UK based company and operated from last four
years. This report cover business systems, processes or functions. Evaluation of
different systems along with its benefits or drawbacks and how it will contribute for the
sustainable performance. Along with this, it includes the internal or external factors with
the help of appropriate theory such as PEST. In addition, Mo's Meals wanted to provide
post sales services where they use customer development system or customer’s
services process to enhance their sales or revenue.
MAIN BODY
TASK 1
P1. Determine the overall environment where businesses operate and further define
functions, systems or processes
In the current business environment of “Mo’s Meals” there are some systems
which help the organizations to perform their task or functions appropriately. In order to
run their operations, managers have to perform various functions, systems and process
and all are discussed below:
Business systems: It is the collection of business processes which required to
perform in order to achieve organizational goals & objectives (Business Systems, 2020).
These systems are connected with the workflow or generate value proposition which
delivered to the consumers. Managers of Mo's Meals perform all the required functions
and demand. So they follow some required systems to run their operations such as:
Financial management system: In this system, Finance Director of Mo's Meals
organize or monitor the flow of cash which they generated through delivering food to
their clients. This system includes the financial transactions, financial metrics and
accounting. This system contributes in the organization through managing flow of cash
which helps in improving overall performance.

Production system: Here, managing director of Mo's Meals ensure that
production and packaging will be done effectively which maximise the efficiency of
operations (Haak-Saheem and Festing, 2018). This system helps the organization to
execute their products & services and further delivered to the customers in order to
create value, service quality, economic benefits etc. It will further helps in improving
business performance or productivity.
Customer development system: In this system, organization manage the
customer experience during the process of purchasing goods and availing services.
Further this system helps the administration to include some inputs which they collected
from clients. In order to enhance their operational performance, they need to provide
post purchase services.
Business processes: It include the various processes which help the Mo's
Meals company to produce their foods and directly delivered to the consumers
(Business Processes, 2019). Some of the important process discussed below:
Production process: manufacturing of goods is the essential process to run
business operations. In Mo's Meals company, there are total 12 cooks & assistant
included in the production or packaging process. It will be managed by managing direct
of Mo's Meals and ensure that every actions will be performed in well manner. This
process helps in manufacturing goods and contribute to generate more revenue which
increases the overall performance of the business.
Finance department: This function plays important role in the business process
where they manage all the expenses and finance related activities. Financial director of
Mo's Meals also manages the delivery or logistic functions which included 8 people and
they perform other task as well. This process contributes in the organization to manage
their financial resources and spend as per the requirement which improve its efficiency,
effectiveness or performance.
Customer service: After delivering food, it is very essential to provide customer
service because consumers required some additional information about the products or
services. So they contact with the company or resolve their issues or query which they
have. After sales services contribute to make customer loyal which further increase the
business performance.

Business functions: There are various functions which help the organizations to
generate more sales or revenue in order to achieve business goals & objectives
(Business Functions, 2018). Some of the related functions of Mo's Meals are mentioned
below:
Finance function: This function helps the business to manage their financial
resources and ensure that production cost will be minimum which further helps in
maximising profit margin (Kasemsap, 2018). Finance department liable for every
payment and transaction in respect of the business. This function helps the Mo's Meals
to manage their finance and estimate expenses as per the requirement in order to
enhance overall performance.
Manufacturing function: It is the primary concern of every organization to
convert raw material into finished goods and delivered to the customers with effective
logistic system. After producing goods, they need to focus on its packaging which is
very essential to make food fresh when it reached to the customers. It helps in
contributing organizations through producing goods and support to improve their overall
performance.
Logistic function: In this function manager of Mo's Meals ensure that delivery
and supply of goods will be done in well manner. It basically includes the ownership of
goods and company have to concern about it (Kumar, 2018). Food will be delivered to
the customers in good condition within given time period which further contribute to
increase their delivery system process or support to maximise operational performance.
Packaging function: It is one of the essential functions which is used to protect
or presence the goods from external damage and it can be happen at the time of
transporting goods from warehouses to customers.
Delivery functions: In this functions, management should timely deliver their
products to the customers for its consumptions. In order to improve operational
efficiency Mo's Meals need to deliver food on time.
Above discussed business processes, functions or systems help the Mo's Meals
to perform or run their operations in order to improve overall business performance and
provide sustainability.

P2. Evaluate the different types of business systems along with its advantages or
disadvantages
Advantages or disadvantages of different business systems are discussed below:
Business Systems Advantages Disadvantages
Financial management
system
It increases the visibility
within business operations
(Mendling and et. al., 2018).
It helps in balancing risk
and profit among the
operations.
Managers unable to
implement changes due to
its rigidity.
Due to various environment
factors company loss their
revenue such as increase in
raw material cost.
Operations management
system
It helps the organization to
implement strategic
planning, objectives,
processes etc.
It manages the entire
productions process which
include the human
resources, production,
inventory, logistics etc.
Operations of the company
depend upon various
components. So it will affect
the production or profit
margin.
Coordination issues occur
from manufacturing to sales
process of goods.
Customer development
system
It helps in increasing
customer’s loyalty regarding
business products.
Effective customer services
will maximise the demand
through refer goods to
others such as family or
friends (Mursu, Soriyan and
Korpela, 2018).
Customer focused business
identify consumer's need &
wants and it negatively
effect on company's
creativity.
Demand of individuals
always change, so business
need to manage resources
accordingly such as finance,
time or human resources.

M1. Evaluation of business environment or business systems that is related to the
sustainable business performance
At the time of performing various activities in the organization, managers
implement various systems to achieve business goals & objectives. But there is some
constriction which affect the business growth and ability to perform such as change in
the price of raw material will impact the overall estimation of budget. Increase in the
price of raw material will maximise the production cost which automatically raise the
price of final product. It can minimise the demand which automatically reduces the
production. Basically, it will affect the continuous growth planning of Mo's Meals and
also affect the production function of the company.
TASK 2
P3. Identify internal or external factors which impact business systems or processes
In the business environment there are various factors which affect the
organizational process or systems and it mentioned below:
External factors: This analysis will be done with the help of PEST and identify
that how these external factors affect the current business system of Mo’s Meals.
Further discussion mentioned below:
Political: This factor includes the political stability, government rules &
regulations, tax policy, trade restrictions, trade policy etc. In context of Mo’s Meals that
is small size company and offer prepared meals. Due to increase in tax rates Mo’s
Meals face lots of issues and it directly affect the revenue. So manager of Mo's Meals
need to review their production system and try to minimise their production cost so they
can generate revenue.
Social: In this social factor, organization evaluate the individual behaviour
regarding products & services (Täuscher and Laudien, 2018). Such as Mo’s Meals
company which offer prep meals that is very good concept which is very popular among
the busy people who does not have enough time to cook for yourself. Change in the
lifestyle of customers affect the overall demand of company. So organization need to
manufacture food after analysing demand of customers in the society.

Economic: This factor includes the various elements which impact the overall
growth of the company. So before making any kind of strategies, managing director of
Mo’s Meals need to evaluate this and build policies accordingly to maximise their
production and revenue. Company enjoy the growth last 2 years but due to limited
resources organization unable to expand their business or get economic growth and
further affect the financial management or operational system. In the inflation period,
banks provide loan on high rate of interest which impact the demand of Mo's Meals
regarding finance. So further lack of financial resources impact the production system of
business.
Technological: Change in the technology always beneficial for the organization
to get market growth. It includes the way that how company distribute their products &
services to the consumers or make their shopping experience good. This factor includes
the research & innovation in the market to make their products different from their
competitors. In context of Mo’s Meals, they offer unique services which is required in the
market for those people who have busy schedule. Company started to work with
catering business as well as supermarkets to increase their products demand but they
face difficulty due to ineffective supply management. It further affect the operations or
influence the other business systems. Company does not have separate research &
development department which impact their innovation as well as production.
Internal Factors: It includes those factors which impact the business process or
systems of the company. Some of them mentioned below:
Organizational structure: Mo’s Meals has flat organisational structure which
affect the process as well as systems because there is no hierarchy between
management or staff members. Company have around 20 people and due to flat
structure they face difficulties to convey information. It can lead waste of time, bad
decision making, limited production etc. these aspect impact the business systems or
process such as production, finance etc. Further it influences the after sales services
such as customer development where management collect information as per client
experience and used in future decision making process.
Organization systems: Current system of Mo’s Meals is very slow which affect
the overall system and where order come into administration section which transferred

into company's order. Top level transfer order to the production section and then middle
level to the accounts sections and finally move to the admin section. This process will
take around one week that is not beneficial for the company and will limit the growth or
production of the business.
Above mention both factors affect the business system or process and in result, it
will minimise the production which directly affect the overall revenue of the company
and its economic growth.
P4. Evaluate the benefits and limitations of internal or external factors that impact upon
systems or processes
Internal factors:
 Benefits: Internal factors help the business to getting growth such as Mo’s Meals
introduce unique concept if selling prep meals that is beneficial for the company
to generate revenue. Because of this innovative idea, business getting growth
within two years. Mo’s Meals could expand their business through working with
supermarkets or catering companies. Limitations: There are various factors which managers of Mo’s Meals need to
consider before making any strategies. Due to insufficient distribution of goods,
overall growth of the organization reduces. In addition, huge competition in the
food & beverage sector small entities will surely affected. Along with this, lack of
financial resources Mo’s Meals unable to management logistic and deliver goods
within required timescale.
External factors:
 Benefits: There are various external factors which positively affect the
organization such as social behaviour or attitude of consumers regarding prep
meals. Because of unique concepts of selling prepared meal will help the people
and they can save lot of time which they invested for the cooking (Witt and et. al.,
2018). In addition, technological factors also beneficial for Mo’s Meals because
with the help of innovation idea of prep meals provide them success in minimum
time. But company need to work on their distribution channel for the supply of
goods.

 Limitations: External factors affect the business process and systems because
political or economic factors influence the operations negatively. Due to lack of
resources business unable to expand their operations. When UK's government
provide financial grants to the small organizations than it will be beneficial for
them to get market growth. But due to small organization, government unable to
focus on them because of less popularity in the market. So economic or political
factors negativity affect the business. So managers of Mo’s Meals need to
evaluate these external factors or formulate strategies or policies accordingly.
Above mention internal as well as external factors affect the business systems or
process which further influence the demand of foods and profit margin of the company.
So managing director need to formulate strategies accordingly and implement in well
manner.
M2. Critically evaluate the impact of environment on business systems and its
application with the help of appropriate theory
From the above discussion it has been critically evaluated that, with the help of
PEST or other internal factors business identify growth and which one become barrier
for the company. Huge competition, lack of financial resources, small organization, lack
of awareness regarding company among the consumers etc. All these factors affect the
business operations. After analysing all the components by using above mention
framework will help the mangers of Mo’s Meals to build strategies and policies as per
the requirement or able to achieve desire success in the market.
CONCLUSION
On the basis of above observation, it has been concluded that every small
organisation faces various difficulties in the initial years because of their size, lack of
resources or popularity among the consumers. So mangers of the company need to
evaluate all the external or internal factors before making any policies or strategies. In
order to manage their systems or processes they need to identify various elements and
how they contribute in the operations in order to provide sustainable business growth or
enhance performance.

REFERENCES
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Online
Business Functions. 2018. [Online]. Available Through:
<https://businessfinancearticles.org/types-of-business-function>
Business Processes. 2019. [Online]. Available Through:
<https://www.marketing91.com/8-types-of-business-processes/>
Business Systems. 2020. [Online]. Available Through:
<https://www.businessmapping.com/blog/twelve-business-systems-
organizations/>