SCHOOL OF ARTS AND COMMUNICATION
BMM3003: Introduction to Business Operations and
Management
Contents
Introduction ..................................................................................................................................... 3
Main Functions of Business Operations ......................................................................................... 4
Company Overview ........................................................................................................................ 6
evaluation of the company’s operations management decisions .................................................... 7
Production ................................................................................................................................... 7
Supply Chain ............................................................................................................................... 7
Logistics ...................................................................................................................................... 8
Location Strategies ...................................................................................................................... 8
Quality Control ............................................................................................................................ 8
HR ............................................................................................................................................... 9
Conclusion .................................................................................................................................... 10
References ..................................................................................................................................... 11
Introduction
The term business operation means activities that a business performs to keep the business running
by increasing the value of the company and making a profit. Operations encompass all aspects of
running a corporation, from funders to management to staff. These activities are very important to
perform efficiently because if these activities can be performed efficiently, the business will be
more profitable by reducing the cost (Nickels,2008). Proper business operations enable a company
to beat out other businesses in the market and achieve a competitive advantage. Business
operations managers plan, manage, and channel many activities such as raw material procurement,
research, and development, production, sales, service, marketing, purchasing division, staffing,
and so on. A successful business operation includes the function of workers, necessary workflows,
and various forms of equipment used to optimize business strategy and increase the company's
worth. Companies that excel at business operations understand that their personnel must be capable
of solving problems on their own. Everyone within the organization should have been provided
with the tools, data, and authorization to solve the day-to-day difficulties that arise (Artto and
Dietrich, 2007).
These operations vary from business to business because they are performed on a
daily basis.
For example, in the retail industry, the business has to maintain a good amount stock of products
that has sufficient demand in the market and should provide an amount of money that customers
are ready to pay. This implies that the company must develop a precise inventory system in order
to recognize what is in inventory at any one time and to reduce occurrences of dead stock. On the
other hand, if it's a service company, then the company service business's operations are divided
into two parts: the front-end and the back-end. On the front end, it should focus on ensuring greater
customer satisfaction. In the back end, In each department, management should hire the right staff
who have sufficient knowledge about their duty.
In this case study, we are going to demonstrate Marks & Spencer company's functions of business
operation. Understanding the procedures of a given industry can help a business succeed
(O'Regan,2002). It would not only improve employee performance but would also boost
productivity.
Main Functions of Business Operations
Business functions are notions that describe the nature of an organization's job or its position within
the business world. Actually, the planned business operations of a company often determine its
overall structure. By evaluating the information and organizational structure, the company's
business line, business processes, and any other pertinent information, business functions are
determined. Organizational structure and business functions are not related to each other, and they
are independent of products and services so that when business demands change, the organization
can quickly adjust to a changing market. The main functions of business operations are:

Production

Marketing

Management

Accounting

Finance
Production functions of a business produce goods by converting raw materials into finished goods
and preparing those products ready for sale and delivery to the customer (Maravelias,2009). This
department determines how much quantity to produce and how much of each type of labor, raw
material, fixed capital asset, etc., will be used in its production, as well as how much of each will
be employed. For instance, it can determine the productive efficiency of a certain industrial
component. In order to produce a specific output, it could also be analyzed to measure the most
economical combination of productive components.
Marketing functions try to achieve an organizational goal by proper formulation, price, publicize,
market, and distribute ideas, products, and solutions. A company's marketing function is concerned
with promoting goods and services while assuring the availability of clients for the company
(Ferrell, 2021). It serves as the official representative of your business, organizing and producing
all items that reflect it. Understanding the demand and expectations of the consumer and ensuring
that the company's products and services fulfill those requirements is one of the many functions
that the marketing function plays. Additionally, the marketing department must develop a plan to
raise public awareness of the organization's goods.
The function of management is to oversee and coordinate the work of others so that their tasks
are accomplished successfully and efficiently. It is the practice of attaining business objectives by
coordinating, managing, leading, and assessing the efficient use business resources. Management
helps in obtaining group goals by providing individual efforts with a shared direction
(Aboramadan,2016). It creates a dynamic organization; An organization must adapt to the
requirements and intentions of the environment in order to achieve its goals. In order to succeed,
management helps adapt to these changes.
Accounting functions keep the record of the business transaction and analyze them and provide
financial information to interested users. Accounting's objective is to give financial information to
stakeholders (Ballantine, 2008). It facilitates the evaluation of business performance; Financial
statements show the financial situation of your corporation or small business as well as the results
of operations. Moreover, It aids in the budgeting process and future projections. When it comes to
business, using adequate accounting systems and procedures will help assure statutory compliance.
The finance functions of a business worry about acquiring monetary resources and allocating them
to other firm departments. Additionally, The finance department is in charge of budgeting and
providing the funds required for other organizational tasks, such as operations and marketing
(Swanson, 2004). Finance has to perform a variety of essential tasks in order for a corporation to
succeed, including financial reporting, portfolio management, forecasting, and liquidity
management.
Company Overview
Unilever plc is a multinational British consumer goods corporation which headquarters are located
in London. It is a fast-moving consumer product manufacturer and supplier. A variety of foods,
drinks, household products, cosmetics, beauty products, vitamin supplements, and nutritional
supplements are among the company's product offerings. With the addition of two large British
companies Unilever was founded. Since the company's foundation, it has built a profitable
customer relationship with the customer by providing greater customer value.
Alan Jope, Unilever CEO, Said, "We want Unilever to be known for building a stable of the most
purposeful brands in the world, demonstrating how sustainable business improves performance,
and being a leader in diversity and inclusion."
Products are sold to brick-and-mortar store partners, little family-owned businesses, online
retailers, and discount merchants. The company has activities in the Americas, Africa, Europe,
Asia-Pacific, and the Middle East. The head office of Unilever is in London.
As the developed world's health wellbeing client base grows, Unilever may seize the opportunity
to market to this category with existing and unlaunched product lines aimed specifically at the
health and quality of life conscious consumer.
Evaluation of the company's operations management decisions
The management of organizational processes inside a company to attain the highest level of
efficiency possible is the purpose of the management. It is concerned with producing things and
services from materials and labor as effectively as feasible. An operations manager oversees and
enhances how business operations run at a corporation, which involves anything from process
design to management systems (Schroeder,2016). Operations management (OM) at Unilever is in
charge of making sure good performance overall the company's worldwide consumer sector. To
support the business in making the ten strategic decisions that will increase efficiency and
profitability, operations managers create procedures and processes. Unilever, a market leader in
consumer goods, uses developing operations management techniques to maintain a highly
productive company.
Production
The development of items that are appropriate for the organization is the goal in this strategic
decision area. Continuous innovation to meet consumer expectations is the key to success.
Operations management at Unilever handles problems and obstacles in product development. A
wide range of consumer items are included in Unilever's marketing strategy, which generates a
wide number of considerations for this decision area. For example, the company must continue to
produce new soaps and lotions at a high rate while also developing beverages at a high rate. These
efficiency and productivity standards are the foundation for Unilever's consumer products
development and manufacturing. The company's operations managers guarantee design for
efficient output levels. These output levels line up with both organizational capability and market
demand.
Supply Chain
To support corporate initiatives in this area of strategic decision-making, operations managers
must ensure that the supply chain is in the right place. Controlling Supply chain management is
the transportation of products and services, and it covers all processes used to transform raw
resources into finished commodities. The method of operations management used by the
organization results in great productivity (Anderson, 2007). The consumer distribution network for
Unilever products is highly automated. Managers, for instance, concentrate on choices based on
differences in the target markets of Unilever's supply and demand. Because internet databases
make it simple to retrieve critical functional facts for the supply chain, data and process
management for people involved in the supply chain requires less administrative time. Regular
inspections and good problem-solving also maintain the operational efficiency of Unilever's
supply chain.
Logistics
Unilever's logistics department is accountable for ensuring that goods are delivered to customers'
locations in a secure, timely, and safe manner. It includes a variety of occupations such as
warehouse managers, dispatchers, and logistics coordinators for trucks. To create a new
nationwide distribution network to streamline Unilever Home & Personal Care's logistics
operations, the company collaborated with ProLogis, a supplier of distribution facilities and
services. The Unilever logistics manager Plans out every component of logistics, including how
items will be stored, how data will be handled from the place of the source to the destination of
delivery, how operations will be coordinated, and how services will be contracted out as necessary.
Location Strategies
In this area of strategic operations management decision-making, the company's goals are to
maximize operational efficiency and minimize operating costs. For its consumer products to reach
target markets, Unilever strives to reduce production and transportation costs. Unilever's
operations management ensures plant placements are as close as possible to target consumers,
suppliers, and labor markets as possible. The business stays away from areas where there are
political or cultural concerns since they adversely affect production efficiency. This strategy helps
to maintain the effectiveness of Unilever's business performance.
Quality Control
This section ensures that the goods are produced, maintaining a standard quality that meets the
consumer's expectations. The strategy used by Unilever entails incorporating regulatory standards
into standard operating procedures to meet product quality criteria (Mitra, A., 2016). The company's
overall and product development plans in quality management, business criteria, and local
requirements are established for certain product lines. These best practices for organizational
management were created using information from Unilever's market analysis as well as industry
norms for consumer goods.
HR
Throughout this role of strategic operations managerial decision, it is considered if the HRM
department is adequate to support company operations
(Mathis, 2008). Unilever's overall
organizational environment is boosted through operational measures in this area. Operations
managers, for instance, make sure that corporate culture and job design are aligned to increase
productivity and corporate performance. The management of Unilever's activities directly affects
the consumer goods industry's economic performance and human resource capacity in this
organizational component. Unilever hires the perfect employees through many evaluation
processes to get the right person. They provide a work-friendly environment that helps employees
to work comfortably.
Conclusion
An organization runs its daily operations through business operations. These functions need to be
performed effectively and efficiently. Otherwise, the profitability of the business will hamper. If a
company doesn't know how much to produce or the cost of production, and if it produces too much,
it will cause a big loss for the company. Operation Management is concerned with producing things
and services from materials and labor as effectively as feasible. Unilever's Operation Management
is maintaining high productivity globally of consumer goods. Being a leading company, Unilever
uses dynamic operations management strategies to maintain a highly productive company. It
places a strong emphasis on maximizing productivity through effective and efficient business
procedures. The great performance that follows ensures Unilever's long-term prosperity in the
worldwide consumer products market.
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