Business Operations Analysis: Volkswagen's Strategic Planning and SCM

This report provides an analysis of Volkswagen's business operations, encompassing an examination of three key business functions – marketing, finance, and human resources – and their interrelationships. It delves into the major challenges faced in managing these operations, such as customer satisfaction, technological advancements, and internal/external environmental factors, along with potential solutions. Furthermore, the report evaluates the reinforcement of business operations and strategic planning within the manufacturing industries, specifically within Volkswagen. The study then analyzes the SCOR model, a framework for supply chain management, as implemented by Volkswagen. The report covers strategic and operational planning, generic and intensive strategies, and the importance of the SCOR model for improving supply chain efficiency. The report concludes by summarizing the core aspects of Volkswagen’s business operations and highlighting the importance of continuous improvement. This assignment, contributed by a student, is available on Desklib, a platform offering AI-powered study tools for students.

Business Operations

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
LO1..................................................................................................................................................1
A) Analyse three key business functions and the relationships between them ..........................1
B) Major challenges involved in managing business operations and its solutions ....................3
LO2 .................................................................................................................................................4
2) Evaluate the reinforcement of business operations and strategic planning within.................4
the manufacturing industries .....................................................................................................4
LO3 .................................................................................................................................................5
3) Analyse one model and one framework of supply chain management in Volkswagen ........5
CONCLUSION................................................................................................................................7
REFERENCES:...............................................................................................................................8

INTRODUCTION:
Departments are the main pillars of every organisation. They perform several activities to
achieve goals and objectives. Each department is having their own roles and responsibilities.
Business strategies are developed and implemented according to functions of department
(Ajmani and Kumar, 2017). Business operations consist of different tasks and activities that
help in achieving business mission. The success of business depends how the overall work is
integrated within enterprise. This assignment will throw light on different key functions and
relationship between them. Also, challenges involved in it are discussed.
For undertaking present assignment, organisation selected is Volkswagen. The cited firm
belongs to auto mobile sector and operates globally. However, existence of the company on such
a great level requires effective business operations (Steel, 2016). Thus, this report will help in
developing a relevant one.
LO1
A) Analyse three key business functions and the relationships between them
A business performs many functions in day to day operations. These functions consist of
different activities that are performed by business. The role of each function is decided by top
management. It helps in clarifying their goals. Overall efforts of functions are integrated that
results in achieving business mission and vision (Ramakrishnan, 2015). Business has different
function such as research and technology, operations, information technology, etc. There are
many functions that exist in an organisation. These are as follows:-
Marketing Function- This function plays a crucial role in marketing and advertising product. Its
main role is to develop strategies and plans on how to promote their product. Apart from this,
they perform different duties and task Volkswagen marketing function emphasis on increasing
customer satisfaction by providing them high quality services Moreover, their role is to promote
business mission and vision to attract more customers. It effectively communicates with R&D to
gather data and information (Matt, Hess and Benlian, 2015). On that basis, it takes decision on
developing product. Market research is done by sales force to collect data on marketing activities
that is implemented by Volkswagen.

Finance – Finance department is main pillar of business. It plays a vital role in allocating funds
to various departments. Their main goal is to ensure that there are enough funds available to
implement strategies. It controls overall incoming and outgoing of finance. On the basis of that it
create reports on what is the current position of Volkswagen. Business success is dependent is its
strategic planning and analysis (Jia, and et..al 2015). It develops budgets so that further
strategies can be made. An effective relationship is maintained between finance and other
departments. This helps in analysing requirement of each department so that funds can be
provided to them. Moreover, profit and loss is calculated to predict financial position of firm. It
also maintains financial statements so that reports can be developed.
Human Resource- HR performs responsibility related to workforce within business. It provides
experienced manpower that can perform activities in order to achieve goals and objectives.
Recruiting and managing employee is done by HR (Akhtar and et..al. 2018). They ensure right
person at right place. In addition, they develop job roles and responsibilities and accordingly
select candidate. Monitoring employee performance and maintaining records is done by them.
HR coordinates with other department to identify any vacancy so that it can be fulfilled. They
create report on requirement of employees in overall enterprise. Providing leaves, training is
main duty of HR.
In every business, mainly three types of decisions are taken by manager and leaders. It
depends upon what and where that decision is required to be taken. Every decision is having its
own impact on business operations (Chowdhury and et..al 2016). The decision taken is
implemented at every level within organisation. Generally, decisions are classified in three
categories that are as follows:-
Strategic Decisions – It refers to those decisions that are taken to develop strategies. This
includes developing plans, goals, objectives, etc. that have to be achieved in specific time period.
Usually, it is taken by top level management. Then it is applied in overall organisation. The
success of Volkswagen depends upon this decision. It provided platform for growth and
development. Decisions made are only related to strategies and plans (Allee, Schwabe and Babb
2015). CEO, COO and directors are involved in taking strategic decisions.

Tactical Decisions –These decisions are taken by manager to implement strategic plans. Process
or procedures are made on how goals and objectives will be achieved. Generally, manager
creates roadmap on how strategy will be implemented and activities will be performed. Manager
develops tactics by using their experience (Cho and Chan, 2015) These decisions are taken at
middle level management and are applied at lower level.
Operational Decisions- It is taken at lower level management. Supervisors are involved in
taking this decision. It is based on how work will be performed by employees. In this,
supervisors decide which employee will perform what task and when. It is related to daily
activities that are performed in Volkswagen. However, the basis of operational decision depends
upon strategies. Supervisors control overall operations of Volkswagen.
B) Major challenges involved in managing business operations and its solutions
Every business faces challenge that has a great impact on its efficiency as well as it harms
its growth and development. These challenges have to be overcome in order to create growth
opportunities to business (Braithwaite and Christopher, 2015). A challenge always creates a bad
effect on business operations. It reduces its growth and productivity. Along with this, it gives
benefit to competitors by providing them competitive advantage. The organisational culture is
also highly affected. If not removed, it can have effect for long term. There are many challenges
that business can face. Some of them are as follows:-
Customer satisfaction- Customers are the reasons why business exists. They are the main
source of income for them. So, it is very important for business to maintain their customer’s
satisfaction. If not, then it can create a long term effect on them. It is very challenging task for
Volkswagen to increase customer satisfaction (Rantanen, 2016). This challenge can occur at
anytime in business. If operations are not properly performed then it will give direct effect on
products produced. It will affect its quality. This will lead to decrease in customer satisfaction as
they will not get goods according to their needs. For this Volkswagen can improve its product
quality. They can provide additional benefits' ion services so that customers can be retained. It
will help in increasing their satisfaction.

Technology- In recent time technology has been a major challenge for business. Change in
technology has made business operations very complex (Ajmani and Kumar, 2017). The
implementation of technology can give either positive or negative results. Besides this,
Volkswagen needs to make changes in product as there will be change in taste and preference of
customers. For overcoming this, proper strategies should be developed. Also, training must be
provided to employees on how to deal with change in technology.
Environment (internal and external)- They have effect on both internal and external
operations of Volkswagen. Change in internal factors can effect business operations. It can
reduce employee performance and product quality (Steel, 2016). This will result in decline in
profits and sales. Other than this change in external factors such as political, legal, social, etc.
will directly affect business. It will force Volkswagen to change its strategies. Solution for this is
Volkswagen must analyse market condition and external factors this will help them to make
strategy accordingly. Besides this, they can develop alternative plans to deal with critical
situation.
Economic changes – Any change in economy such as rise in inflation rate, decrease in income
level of people, etc. will affect Volkswagen. It will lead to decrease in sales and profits. Also, it
will create intense competition in the market. It will disturb the market condition. Companies
will find it hard to survive (Ramakrishnan, 2015). So Volkswagen should take effective
measures and decision on how deal with this. They must set its price accordingly to remain
survive.
LO2
2) Evaluate the reinforcement of business operations and strategic planning within
the manufacturing industries
Business operations are performed by doing proper planning. If plans are not made
properly and effective, it will lead to loss. So for achieving goals and objectives planning is
done. It provides a blueprint on what further steps are to be done. Also, it shows how goals will
be completed (Matt, Hess and Benlian, 2015). There is difference between operational and
strategical planning. It is stated below :-

Operational planning means deciding in advance what has to be done whereas strategical
planning is done to achieve vision of business. Operational planning is done for short term while
strategical is done for long term. Top level management is responsible for doing strategic while
operations are decided in middle level (Jia, and et..al 2015). Goals and objectives are
developed in strategic but in operational what activities will be performed daily is decided.
Strategic planning a having very wide scope while operational is having very narrow scope.
Generic strategic planning – It is a strategy followed by firm to increase its competitive
advantage in the market.
Intensive Strategies– It is strategy followed by firm to improve its existing product
performance. In this two strategies can be followed that are :-
 Product Development- In this firm focus on developing new products. These products
can either be launched in new or exiting market. It is done to attract more customers and
generate revenue.
 Market Development- Generally, it is followed when firm wants to expand its
operations in different markets (Akhtar and et..al. 2018). It is done by segmenting
markets and identifying people needs.
LO3
3) Analyse one model and one framework of supply chain management in Volkswagen
It is very essential for Volkswagen to improve supply chain management. It is because it
will help in producing goods at lower price and maintaining its quality. Besides this, it will help
in improving efficiency and productivity. This will be beneficial for Volkswagen to have a
smooth flow of operations. The model used in this is analysed below :-
SCOR model – This model is used by various companies to improve supply chain management.
It helps in effectively communicating with customers and suppliers. By this it is easy to fulfil
customers demand on time (Chowdhury and et..al 2016). It also helps in improving business
processes. This framework focuses on five areas of supply chain that are described as :-

Plan – In this planning is done regarding supply and demand of product. This is done by
communicating with customers and suppliers (The SCOR Model for Supply Chain Strategic
Decisions, 2004). In this rules are determined to improve business process. This helps in
measuring efficiency of supply chain. Rules are created relating to assets, transportation,
inventory, etc.
Source- In this it is decided how materials and resources will be managed. This is done by
analysing supplier network, inventory, agreements, etc. is also includes some other functions
such as when to receive supplier payment, transfer product, etc. with this it becomes easy to
manage and handle SCM process (Allee, Schwabe and Babb 2015).
Make- It consists of manufacturing and production. It includes overall production activities,
packaging, releasing product, etc. how the entire resources and network will be managed and
which facility will be used and where is analysed in it.
Deliver- It includes warehousing of products after it is manufactured. This steps involve
receiving order from customers and delivering product to them. Also, it contains steps such as
product life cycle, transportation, import – export of equipments, etc.
Return – In this it involves procedure of returning product. Volkswagen must define steps on
how product will be handled when it is returned (Cho and Chan, 2015). Generally, it this rules
are made to manage defective products, packaging, etc.
Total Quality Management (TQM)- This model focuses on improving product quality for long
term. It will help in increasing customer satisfaction and retaining them. The main of TQM is to
implement new methods and tools in production process so that product quality can be improved.
It allows employee to focus on quality rather than quantity. By analysing feedback of customer
changes are made in products. This enabled them to get better quality every time. Strategies are
developed on how to modify production process (Braithwaite and Christopher, 2015). Change
in one phase of process will force overall change. It is very beneficial in providing high quality
goods in the market.

Volkswagen will be highly benefited by this. It will provide efficiency to their supply
chain resulting in reduction of expenses. Moreover, they will be able to fulfil market demand in
time and control supply of product. This will help in maintaining market share and increasing
profits (.Rantanen, 2016).
CONCLUSION
This report concluded that business performs many functions in day to day operations.
These functions consist of different activities that are performed by business. Every business
faces challenge that have a great impact on its efficiency It harms its growth and development.
These challenges have to be overcome in order to maintain its efficiency and creating growth
opportunities. Business operations are performed by doing proper planning. If plans are not made
properly and effective, it will lead to loss. It is very essential for Volkswagen to improve supply
chain management. It is because it will help in producing goods at lower price and maintaining
its quality

REFERENCES:
Books and Journals
Ajmani, N. and Kumar, D., 2017. Achieving and Sustaining Secured Business Operations: An
Executives Guide to Planning and Management.
Akhtar, P., and et..al 2018. Essential micro‐foundations for contemporary business operations:
Top management tangible competencies, relationship‐based business networks and
environmental sustainability. British Journal of Management. 29(1). pp.43-62.
Allee, V., Schwabe, O. and Babb, M.K., 2015. Value Networks and the true nature of
collaboration. Meghan-Kiffer Press.
Braithwaite, A. and Christopher, M., 2015. Business Operations Models: Becoming a
Disruptive Competitor. Kogan Page Publishers.
Cho, V. and Chan, A., 2015. An integrative framework of comparing SaaS adoption for core
and non-core business operations: An empirical study on Hong Kong
industries. Information systems frontiers. 17(3). pp.629-644.
Chowdhury, I.N., and et..al 2016. Creating sustainable value through social business operations
at the bottom of the pyramid.
Jia, P., and et..al. 2015. Supplier selection problems in fashion business operations with
sustainability considerations. Sustainability .7(2). pp.1603-1619.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies. Business &
Information Systems Engineering. 57(5). pp.339-343.
Ramakrishnan, R.K., 2015, October. A Business Process view of Software: An effective
measurement model to assess the operations readiness of software under construction.
In INCOSE International Symposium (Vol. 25, No. 1, pp. 903-913).
Rantanen, J., 2016. Data and Inventory Management in Spare Part Business: Developing
Operations in the Case Company.
Steel, R.S., 2016. The Underground Rulification of the Ordinary Business Operations
Exclusion. Columbia Law Review. pp.1547-1594.

Online:
The SCOR Model for Supply Chain Strategic Decisions, 2004. [Online] Available Through :
<https://scm.ncsu.edu/scm-articles/article/the-scor-model-for-supply-chain-strategic-
decisions>