Analysis of Harrods Business Operations and Management Decisions

This report provides a comprehensive analysis of Harrods' business operations and management. It begins with an introduction to business operations and a brief overview of Harrods, a renowned department store. The main body of the report delves into the various functions of business operations, including production, marketing, finance, human resources, information, and innovation, illustrating how these functions are applied within Harrods. Furthermore, the report evaluates Harrods' operation management decisions, examining location strategies, human resource management, supply chain operations, production processes, logistics, and quality control. The analysis considers the company's operational strategy, forecasting, and capacity planning. The report concludes by summarizing the key findings and implications of Harrods' operational practices. The document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

INTRODUCTION TO
BUSINESS OPERATIONS
AND MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Functions of business operation...................................................................................................3
Description about the company...................................................................................................5
Evaluation of company's operation management decisions........................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business operation is known as assets which is owned by business, that could be tangible
or intangible. They engaged on daily basis activities for increasing the value of enterprises and
earn more profits (Mares, 2018). Harrods limited is department stores and one of the most
famous department stores in Europe. Companies have many departments including seasonal and
food mall that are well-known. This report explain about the function of business operation along
with the brief description of organization. Also, evaluates the company operation management
decisions including supply chain, quality control, HR, location strategies, logistics, leadership
and production etc.
MAIN BODY
Functions of business operation
There are various function of business operation such as:-
Production:-
In Harrods this function helps in creating and developing their products and services. The
production department in organization are essentially on money and facilities so that company
can run easily and can achieved their goals as well objective. In modern terms Harrods highly
organized, special mass production, therefore it overall entrusted to production manager. In
organization production manager have some responsibilities like ensuring products and services
with specified quality, fulfilling the quantity requirement furthermore meets with scheduling and
delivery times for goods and services. Along with this production manager have to perform
various function like planning, developing plant, purchasing and inventory management.
Moreover, controlling over production, measurement in work and maintenance of physical
environment.
Marketing:-
Marketing function help company for being satisfying their customer with having better
products and services along with fulfilling the satisfaction levels of customer with needs and
desired (Raju and Hasan, 2020). Harrods marketing function play important role for making their
products and services more developed that could be help company in earning more amount of
profits. Transfer of ownership and exchange of relationship that could be more benefits in
company taking place with completing tasks. Marketing manager must have to follow-up

products (for developing new products, packaging and branding), pricing (policies and
procedures for setting up their profitable), physical distribution (marketing channels,
warehousing and transportation) and promotion (advertising, sales promotion and publicity) this
all marketing mix help the company for developing more and make their market position against
the competitive.
Finance:-
This function is more basically important for company in making their budget and
accounts for helping them in future aspects. Along with having proper implementation and it
could be more to Harrods for taking decision in investing to some other business (Wolniak,
2020). Furthermore, developing financial decision and dividend that could be working capital
with short term and long term. In markets business have to maintain their relationship so that
could be happened when that have strong financial department. Major stakeholder might be more
capable in buying their products and services. While having proper financial function company
have many funds for making their production systems stronger and make them much capable
established business.
Human resources:-
HR function plays important in developing their more business with dealing into new
employee and hiring some employee. It is most concerned with effectiveness of human
performance in Harrods. Human resources in companies could be more important as they role for
company in making their market position with new policies and procedures through which
Harrods can easily get more customer. Function of HR can be selection, recruiting, job analysis,
induction, training, promotion. They also have various function such as employee involvement,
industrial discipline and worker could be participants in organization activities.
Information:-
Like other department production, finance, human resource as information function are
likely to be same and must be important for developing business (Jubery, 2018). In Harrods
increasingly identified the business which cannot be managed having assistance of efficient
number of information function. This function in business operation basically concerned with
recording all information regarding company and other features. The main purpose of
information for collected or gathering information through using various sources along with that
al information are being needed to organization.

Innovation:-
An innovation must be important for Harrods as company deals in selling clothing or
other products and services that are more required for having something innovation. Hence, in
terms of new product's development recognized about research and developments. Harrods
should give importance to innovation in business operation function because as they play similar
role in making their products something different from other brands (Fountaine, McCarthy and
Saleh, 2019). In general each business have various objective and that are developed while by
having their product differentiation along with making the use of innovative.
Description about the company
Harrods was founded in London in the 19th century and now this brand has grown so
much that it is recognized worldwide. It was founded by Charles Henry Harrod in 1824. The
store of Harrods is the biggest tourist attractions. The founder of the company had faced many
ups and downs in his life. He lost his parents and after that started draper's shop which also faced
major financial crash (A brief history of Harrods., 2021). Then Charles draw major setbacks and
launch Harrods which is the luxury department store. It is a retail company which is famous for
the products like bags, perfumes, beauty, electronics etc. it manufactures products for male,
female and children. Apart from the flagship store, Harrods also have in store boutiques. Harrods
shops can be seen at airports also. After that Harrods was sold to Qatar holdings in 2010.
Charles and Scott team knew that Harrods websites is lacking. As customer getting worse
experience from their online strategies and have very little investments in online business. The
user has poor quality of expectations. So any changes that are implementation to team along with
done through phrasing something new. Company things that other companies has developed
their business online while by creating their own sites and increasingly platforms users in world.
In addition, Harrods changes the ideas, do little investments in online and offering digital to their
customer in its store as well.
Harrods marketing concepts determines more reviews of customer satisfaction and look
reviews to hotel, restaurant, airlines that can be had some confident about their exchanges taken
place but with not organization. Company main tarted to upper class people who can easy buy
their expensive products along with the management of Harrods keeps in minds without carrying
any marketing activities. Organization has founded more things to make their customer attraction

while by using social media platforms through which they can simply get people. Company can
also offer them with some discount, loyalty card to customer (Ismail, Khater and Zaki, 2017).
Charles henry thinks that not much easy to find out the targeted customer in world of
competition and was not such considered when products first crafted in market. Mission of
Harrods : To have various number of stores in the world of luxury branded, maintaining the
levels of retailing standards along with profitability and expertise. Objective : The company
motto “ anything is possible”. Worked as per the customer expectations and aspires while by
unique. To provide exceptional services which ensures every experience of customer to
unforgettable.
Evaluation of company's operation management decisions
Operation management:
Operation management is that field of the company who focus more on planning, designing,
supervising, controlling in the context of manufacturing or other services. It ensures that
organization gives output in the efficient manner. Harrods operation management is responsible
for the high productivity at the global level (Garcia-Perez and et.al., 2019). Operations manager
supports the company to achieve the high performance.
Operational strategy:
Providing better goods and services and no compromise on the quality. Harrods operational
manager focus on the improvement of supply chains and company's operations. Reducing costs
so that can take the competitive advantage. Understanding the market trends so that opportunities
can be grabbed. Forecasting and capacity planning is also the major role of operation
management. Under this company forecast the global market so that can make strategies
accordingly.
Harrods operation management decisions on:
Location Strategy:
The objectives of operation management while taking the strategic decisions are the efficiency
and low costs of locations of operations. To reach the target markets company has planned to
minimize the costs related to production and transport on the consumer goods. The operations
manager of Harrods ensure the facility locations so that can easily get access to the suppliers,
target markets and labours. Like the company's production unit is close to the big consumer

markets. Company avoids those locations where political or cultural issues are there because that
can affect the productivity of operations (Saberi and et.al., 2019). This idea helps the company
business to remain productive. Delivery lead times also play important role as distribution
decisions are influence by delivery times.
Human resource:
The strategic decisions of the operation management include that sufficient human resource
should be there so that business can run smoothly. The operations also support the culture of the
organization. Harrods operation managers make sure that jobs are designed better and corporate
culture are proper aligned so that business performance and productivity does not hinders. The
operations management of company affects the human resource and the performance of the
business. Company knows the value of their employee and also provide training and
development to the employees. So that employee can develop skills related to the customer
service and how to provide good customer service (Kain and Verma, 2018). Workers should
solve all queries of customer and attain them nicely so that the sales of the company can
increase.
Supply Chain:
While taking the strategic decisions, operation management make sure that supply chain should
support the strategies of business. The supply chain of the company related to the consumer
goods is completely automated. The operation management strategy of the company help in
increasing the productivity (Khoreva and Wechtler, 2018). The managers of the company focus
on the decisions which is based on the supply and demand in the target market of Harrods.
Minimum time is taken by the company to address any issues to the parties related to the supply
chain as company have online database which is easily accessible over the data of supply chain
operations. The efficiency in the company's operations related to supply chain is maintained by
monitoring on the regular basis and problem solving technique. The strong supply chain increase
the performance of the company and has also become the strength of the company.
Production:
Production manufactures the goods or services which is the very important function of the
company. Production uses the raw materials, human resource, capital etc. to convert into outputs.
To manage the conversion process from inputs to outputs is the duty of operation management.
Production management primarily do production planning under which the production manager

of Harrods decide that how and where the production will be done. They finalize the location and
arrange the resources which are used in the production (Montgomery,2020). Another job of
operation is related to the production control at this stage the decision-making is done related to
the quality and cost control and finding out day to day operations.
Logistics:
Logistics means managing the flow of goods between the staring point to the consumption point
so that the requirement can be met. The operation management of Harrods manage the resource
in logistics which include raw material, equipments, time, information etc. logistics related to
physical items include material handling, packaging, warehousing, inventory, security etc.
Quality control:
Quality control management is done so that the quality of the products or goods can be
maintained. It is systematic control which affect the product quality and is dependent on
machines, materials, equipments, labours, working environment etc. quality control help to
prevent the defect in the products before it reaches in the market (Maggioni, Santangelo and
Koymen-Ozer, 2019). Operations management make sure that the demand of customers are
fulfilled. Market trend should be analysed by the company so that can come to know about the
preference of customers and testing the products or services in production is must so that can get
quality assurance.
CONCLUSION
From the above report it had been concluded that company should maintain their business
operation function through which they can achieve their goals and objectives. Production,
finance, marketing and human resource as play important role in making their companies more
developed. Technology being used by company to become more advance in their marketing
strategies, otherwise in lack of technology come could not earn profits as well satisfaction of
customer. Supply chain in company strong for supplying their more products and services across
the countries. Furthermore, quality of goods must be important for them in making establishing
their companies objectives.

REFERENCES
Books and journals
Fountaine, T., McCarthy, B. and Saleh, T., 2019. Building the AI-powered organization. Harvard
Business Review. 97(4). pp.62-73.
Garcia-Perez, A. and et.al., 2019. Aligning Strategies–Business, Knowledge and Human
Resources. In Critical Capabilities and Competencies for Knowledge Organizations.
Emerald Publishing Limited.
Ismail, M.H., Khater, M. and Zaki, M., 2017. Digital business transformation and strategy: What
do we know so far. Cambridge Service Alliance. 10.
Jubery, I.H., 2018. Business operation management of RFL Autos.
Kain, R. and Verma, A., 2018. Logistics management in supply chain–an overview. Materials
today: proceedings. 5(2). pp.3811-3816.
Khoreva, V. and Wechtler, H., 2018. HR practices and employee performance: the mediating
role of well-being. Employee Relations.
Maggioni, D., Santangelo, G.D. and Koymen-Ozer, S., 2019. MNEs’ location strategies and
labor standards: The role of operating and reputational considerations across industries.
Journal of International Business Studies. 50(6). pp.948-972.
Mares, R., 2018. Human Rights Due Diligence and the Root Causes of Harm in Business
Operation. NEULJ.10, p.1.
Montgomery, D.C., 2020. Introduction to statistical quality control. John Wiley & Sons.
Raju, M. and Hasan, M., 2020. Internship Report on Business Operation of Yellowclothing. Net.
Saberi, S. and et.al., 2019. Blockchain technology and its relationships to sustainable supply
chain management. International Journal of Production Research. 57(7). pp.2117-2135.
Wolniak, R., 2020. Main functions of operation management. Production Engineering Archives.
26(1). pp.11-14.
Online
A brief history of Harrods., 2021. [Online]. Available through:
<https://www.historyextra.com/period/victorian/a-brief-history-of-harrods/>
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