Evaluation of Business Operations and Management at Dacia Renault

This report provides an in-depth analysis of Dacia Renault's business operations and management practices. It begins with an introduction defining business operations and providing an overview of Dacia Renault. The main body explores key functions such as operational strategy, production, supply chain, logistics, location strategy, quality control, leadership, and human resource management, providing explanations and examples within the context of Dacia Renault UK. The report then evaluates the company's operations management decisions, focusing on leadership styles (bureaucratic and situational theories) and HR management (Fayol's theory), highlighting merits, issues, and potential improvements for each. The analysis considers aspects like employee satisfaction, team working, and organizational structure, as well as limitations in terms of innovation, productivity, and adaptation to change. The report concludes by summarizing the key findings and suggesting areas for further development within Dacia Renault's operational framework.

Business Operations and
Management

INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................2
Functions of business operations............................................................................................2
An evaluation of the company’s operations management decisions......................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Definitions
Business operations are defined as the functions in an organization to keep it running and to
gain profit from those operations within the firm. In other words, it is defined as the activities
conducted by the staff of a business in order to generate revenue and sales and to cover expenses
in an organization (What are Business Operations?, 2020).
Explanation
Business operations are the core activities or functions without which the running of any
firm cannot be possible specially any profit organization because their aim is to make more and
more sales and revenue. These operations includes strategies, production, logistics, supply chain,
quality control, HR, leadership, processes, staffing, technologies and many more (Zurich and
Documentation, 2018).
Overview of Dacia Renault
It is one of the leading automobile manufacturer international firm. It is founded in 1966
and headquartered in Romania. In 1999, the government of Romania sold Dacia to the Renault
group which is a French car manufacturer after 33 years and now Renault group is known as the
parent organization of Dacia. It’s chief executive officer is Christophe Dridi. It’s production
output is approximately 3,49,528 and number of employees are approximately 14,294.
Report’s Outline
The following discussions are based on the various types of business operations including
functions and their explanations with examples in context of Dacia Renault UK.
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MAIN BODY
Functions of business operations
Operational strategy
It is defined as the strategies made by the upper level management to achieve the goals or
objectives of a firm either short term or long term. These strategies are used for the effective
management in an organization so that it leads to the smooth functioning of it. Most of the
strategies includes cross functional interactions, corporate strategies, strategies related to
customer driven, core competencies development and development of product or service of the
firm (Barnes, 2018).
Productions
It is defined as the technical relationship between the inputs of raw materials and outputs
of final product. Quantity and quality of output totally depends on the physical inputs. Every
business uses this concept of minimal use of input and maximum gaining of output with low cost
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and more revenue generation. Land, labour, capital and entrepreneurship are the factors of
production which includes the concept of economy. Moreover it consist four stages that are
development, pre-production, production and post-production and each having legal tasks.
Supply chain
It is defined as the handling or controlling the flow of goods and services which usually
includes the management of movement and storing of raw materials, inventory which is work in
progress, finished products and the process of order fulfilment from the origin to the
consumption point. Components of supply chain management are plan, source, make, deliver and
return. It’s stages includes the introductory stage, growth stage, maturity stage and finally decline
stage. It’s three pillars includes cost, service and strategy (Cook and Billig, 2017).
Logistics
It is defined as the overall operations management of an organization from starting to an
end in order to organize and implement the goals to meet the customers expectations as well as
the expectations of an organization also. There are various types of logistic management and
those are supply management, movement of material and it’s distribution, production
management, product return and reverse logistic. Things required for smart logistics are strong
plan, backup plan, automate and learning from mistakes.
Location strategy
It is defined as the plan where the company decides it’s location to sell their products or
service in order to meet their objectives of more sales and revenue generations. Location must be
compatible with the target market and target customers to fulfil their needs and desires of
products. Many companies purchase the premium locations for more selling of their services and
to gain attention of their offerings from the customers. Premium locations are generally the
locations which are the most crowded and people travel almost every day so that the company
could be eye catching by a lot of customers (Dincer, Hacioglu and Yüksel, 2018).
Quality control
It is defined as the process through which quality is improved or maintained of a product
so that the company can offer the best out of it’s resources to it’s customers to maintain loyalty
among them. It mainly generates the environment in a business that the staff also puts efforts to
give best quality to the best of their operations. It is important for every firm to look into this
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operation because many firms take it lightly and make their full focus on marketing and selling,
Quality control is also the one of the major function of any business.
Leadership
It is defined as the leading the subordinates of an organization to achieve the objectives.
Leaders are mainly decision maker, motivate the employees, lead the way, take care of employee
satisfaction and paves the way for success. There are many styles of leadership those are direct,
coach, support, delegate and many more.
Human resource and people management
It is defined as the management of people or employees. This department is mainly for
the workforce related like recruiting, selecting, vetting, hiring, training and development, on
boarding, paying, promoting, firing, handling grievances and many more. HR functions start
with the hiring of employees for the right profile and end with either termination of employees or
promoting according to the company’s policies (Grant, Wong and Trautrims, 2017).
An evaluation of the company’s operations management decisions
Leadership Dacia Renault’s leaderships: Leadership style that the company has adopted is the
bureaucratic style, this says that in big organizations, it is important to set some rules,
policies, procedures and norms in a company for everyone so that discipline and decorum
can be maintained within the firm. This is done basically for the better management and
operations because this style also states that although there are strictness in following
rules but every employee has a right to speak in order to initiate, innovate, creative and
decision making process in a group or team. Moreover, they have applied the situational
theory of leadership, it states that it is not necessary to keep only one style throughout,
but it needs to be changed according to the situations occurred in an organization so that
employees can be satisfied with their leader’s changing behavior according the different
cases in a firm (Hacioglu and Sevgilioglu, 2019). Merits the company is gaining: Company has gained a lot of things by adopting this
style like reduction in nepotism, centralization of responsibilities in a team, encourages
creativity among the employees, employee satisfaction because of job security at high
level, predictions are almost accurate, it gives the scalability in the upward direction and
it promotes familiarity. These all are the benefits which the firm has gained during the
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years by adopting the bureaucracy style, this has improved the operational management
and performance of a firm within the firm as well as in the market also. Issues related to it: There are some issues which are faced by the firm by adopting this
style of leadership like moving forward is difficult, limitation in the increment of
productivity in a firm, depends on the quota system, decision making is done on the
structure of cost, less freedom in being more creative, lacks efficiency and adaptation of
change can be difficult for the employees. So these were the issues or limitations faced by
the company by adopting this style of leadership. It is needed to be improved so that
company could gain everything best out of this style and only minimal limitations are left
to sort out (Hazen, Skipper, Boone and Hill, 2018). Improvements: Every coin has two sides, head and tail, same way, if adopting a style and
a theory of leadership has several good features and benefits then undoubtedly it must be
having some limitations also which are discussed. These limitations are required to be
improved like making forwarding smooth and easy, need to find out that where the
productivity is missing and sorting out that issue as soon as possible, making less
dependent on the system of quota, minimal cost in decision making either in the terms of
money or in context of time, try to free employees so that they can share their creative
ideas, working on efficiency of the firm and try to convince the employees that the
change is good an let that happen for the betterment of the firm. These were the areas of
improvement where the firm must look into it so that productivity could be increase of
the firm.
Human resource and people management Dacia Renault’s HR management: HR department of Dacia is divided into six major
areas those are staffing, training and development, payroll, labor and employee relations,
performance management and safety and health. All it’s functions are related to the
concern of employees. HR management of Dacia mainly uses the theory given by Henri
Fayol which is “if management is more efficient in providing the positive and motivated
working environment to the employees through which they can get job satisfaction then it
can result in more efficient working, commitment from the employees too with good
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motivation and dedication towards an organization”. This theory has adopted by the HR
people of the firm in order to maintain harmony in an organization because employees
are the assets of the firm and if not taken care of them than meeting objectives of the firm
can be impossible without them (Reid and Sanders, 2019). Merits the company is gaining: Advantages that a firm has gained by adopting this
theory is motivation to the employees by rewarding and compensating them, enhanced in
team working because they used the concept that team foster more growth and
development rather than the individual working and stability in the structure of an
organization by adopting top down approach in decision making from top level
management to the lower level or vice versa. These merits helped the firm in gaining it’s
employee satisfaction at every point, which is one of the most important operation to
consider because without the efforts of employees, firm cannot touch heights so in order
to maintain stability in the market, it is important to follow the management HR functions
and theories for better management in an organization (Slack and Brandon-Jones, 2018). Issues related to it: These HR theories of Henri Fayol consist disadvantages also which
affects the firm in a negative way in it’s operations like sales and profits. Some demerits
includes that theory is not teaching to analyze the research work, it does not focus on
practical implementation but only aims at management skills, it is an old theory so
practices which are mentioned in it are according to the old behavior of the firms and
does not match with the recent trend of managing the company, fourteen principles which
are given by Fayol are it’s from personal experiences rather than overall analysis of the
companies, this theory only focuses on the employee satisfaction rather than the customer
satisfaction and now a days, customers are given more priority in term of satisfaction
because they are the ones from whom the firm gets sales and revenues and it mainly
focuses on internal management of an organization instead of looking out some external
factors also like environment and market research and analysis. Improvements: There is always a scope of improvement in every demerit. Although the
principles of management given by Henri Fayol are considered as outdated in today’s
business world but it can be updated and improved. Research work can be implemented
in management skills also by gaining the knowledge of today’s theories and execution
and linking to them with the Fayol’s theories, by creating the relationship between
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personal experience and market research, employee satisfaction and customer satisfaction
and internal and external management, it can be updated by simply linking or creating the
relationships between them (Tarafdar, Beath and Ross, 2019).
CONCLUSION
It is concluded that business operations and management of any organization are the key
essential parts to run the firm. Depending on the size and type of business, there are various
operations and functions which are discussed above. Discussion are made on the Dacia Renault
car manufacturing company, out of so many operations discussed in first section, two of them are
discussed in second section in context of Dacia Renault. Those are leadership management and
human resource and people management. How Dacia Renault manages it’s leadership and HR
functions, merits the firm is getting through those functions, problems related with them or
demerits they are facing and finally the solutions or improvements that the company can adopt in
place of it’s demerits. Recommendations that are made after deep analysing and interpreting this
report is that company must work on it’s improvements as mentioned above so that they can
overcome all the demerits associated with it and can highlights or encourages it’s merits for the
smooth and effective functioning of an organization because disadvantages are always associated
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with every company in one or the other form but those firms can only succeed which can fight
against such problems in order to improve and maintain stability in a market.
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REFERENCES
Books and journal
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Cook, G.N. and Billig, B., 2017. Airline operations and management: a management textbook.
Taylor & Francis.
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.
Grant, D.B., Wong, C.Y. and Trautrims, A., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Hacioglu, U. and Sevgilioglu, G., 2019. The evolving role of automated systems and its cyber-
security issue for global business operations in Industry 4.0. International Journal of
Business Ecosystem & Strategy (2687-2293). 1(1). pp.01-11.
Hazen, B.T., Skipper, J.B., Boone, C.A. and Hill, R.R., 2018. Back in business: Operations
research in support of big data analytics for operations and supply chain
management. Annals of Operations Research. 270(1-2). pp.201-211.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Tarafdar, M., Beath, C.M. and Ross, J.W., 2019. Using AI to enhance business operations. MIT
Sloan Management Review, 11.
Zurich, B.L.L. and Documentation, X., 2018. Service operations and management. Master of
Science in Engineering, p.380.
Online:
What are Business Operations?. 2020. Available Through <
https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-
operations/>./
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