Discuss about the Operations Management for Retail Management.
Mechanism which refers to the administration of the business operations and practices so as to generate highest level of efficiency within the business organization can be termed as operations management. Primarily the key idea has been made focused on the management and administration of the operations or the methodologies which can be settled by the business organization for developing and enhancing the proficiency. This will in-turn lead accomplish a a hike in the level of effectiveness in the functionalities and operations executed by the business corporation. The process of operations management likewise comprises of the transformation of the raw materials and data into products and ventures so as to attain the best level of productivity leading to a higher profitability. The core concern of the concept is maintaining the balance between the expenses and the revenues so as to attain the most raised net profit for the business corporation. As described in details the procedure also involves the management which makes the optimum utilization of human resource, materials, mechanisms and tools and the creativity. The concept is a way more widespread term and manages varied range of complex functionalities within the business corporation. Making decisions regarding the implementation or installing the plants, mechanisms and strategies for extending the corporation and also utilizing the structure of data for innovation systems etc. are some relevant examples of operations management. The business entity also faces number of issues while executing various operations which are associated with this concept. Maintaining inventory levels, managing the WIP levels and raw materials procurement and dealing with raw materials and quality control are some of the functions which are being executed within the procedure of operations management. Additionally it also includes directing, outlining, controlling, the different methodologies within the business entity. The below summarized is analysis which has been executed over the concept of operations management for BHP Billiton (Heizer, 2016). The business corporation is a multinational brand name in the sector of Anglo-Australian multinational mining, metals and petroleum. The business corporation is a dual-listed public company which is headquartered in Melbourne, Victoria, Australia. Moreover the further report has been analyzed on challenges which can be faced by the operations management section within the organization.
The below described are some of the operational issues which can be faced by BHP Billiton:
Technological modification and up-gradation is the factor which has been considered as very much empirical for each and every business corporation. Technology is the term which has various impacts on the business operations and also allows enjoying both the tangible and intangible benefits (Oksbdc 2015). These benefits aid the firm in attaining better productivity, quality products, and customer satisfaction through better delivery of products etc. As every coin has two phases, same is here, there are both positive and negative impacts of the technological changes within the business corporation. The below presented are the issues of the challenges which can be faced by BHP Billiton:
Integration issues: It is not necessary all the time that the new technology released will match the older or to the existing systems. And this will lead to build a double data entry in the systems which will look in multiple places (Casey 2015). So integration of the new technology with the older one can be proven as a challenge for BHP Billiton.
Backup and disaster recovery challenges: If accidentally any of the file gets deleted, due to the power cut, server crash or any other technological miss-happening then the business entity can suffer the problem of data loss. So having a data recovery system is very much essential for the entity and the same can come-up as an issue for the corporation.
Globalization of markets means turning the marketing level to the international regions or extending the limits to all over the globe (Slack, 2015). The concept provides the markets with number of international platforms to deal in which in-turn enhances the quality, efficiency and effectiveness of the products and services. This all is due to the emergence of improved and contemporary mechanisms and methodologies. Modernization and globalization are the key players of the concept which aids the markets and the business environment of the business corporation. The below mentioned are some of the challenges which can be faced by BHP Billiton while going international:
While trading in the international markets the business entity will have to cope-up with the political environment of the different regions. For instance, the business entity will have to face a challenge as the tax laws and other norms of each and every region in which BHP Billiton is dealing (Krajewski, Ritzman and Malhotra, 2013). Moreover, the business entity will also have to face the challenges due to cultural differences.
Customers are considered as the king of the markets and hence their needs and requirements are one of the significant factors in influencing the business entity and the operations within the same. The products and services are designed and developed after considering the requirements of the consumers which enable the entity in accomplishing the desired objectives and targets. The demand and supply of the products and services totally depend on the consumer preferences, their likes, expectations, income levels etc. These are the relevant and significant factor which is considered as liable in influencing the success and growth of BHP Billiton. The below mentioned are some of the challenges which can be faced by the customer’s expectations:
The customer using a brand always has an expectation of an upgrade and innovation. This, if fulfilled by the business corporation will aid he business entity in the form of number of benefits. But if the firm fails to fulfill the expectations the entity may suffer severe losses such as a decrease in the market share as the consumers will try to switch to the competitors brand. This will also bring the sales bars to a diminishing level (Hitt, Carnes and 2016).
Job design is the concept which is concerned with the outlining and organizing the duties and responsibilities so as to accomplish the desired objectives for the business organization. The process also comprise of the methods and connections that are considered as very much essential for a success of a job. Job design have various impacts on the business organization and its operations. The below mentioned are some of the challenges which can be faced by BHP Billiton due to changing job design:
If the employees at BHP Billiton are performing and are feeling frustrated due to challenging job design ten there can be a development of demotivation in the employees and a lack of interest can rise. This will be proven problematic for the business entity (Khanna, 2015). Employee turnover ratio and retaining the same will incur heavy expenses for the firm and will be proven as a challenge.
Moreover, frequent shifting of the employees develops frustration in their job routine and which can also be the reason for the loosening of the interest and determination in the work. This will have negative impacts over the business organization.
Quality of the products has been considered as one of the significant factor which will drag the business entity to the top of success and growth in the business environment. This variable is an empirical aspect which aids the business entity in providing customer satisfaction (Brown, Bessant and Lamming, 2013). This factor if positively attained will be proven beneficial for the business entity as it aids in enhancing and increasing the market share, building the goodwill, brand equity etc. and the same will be in the case of BHP Billiton. But this all can turn to negative and will impose number of negative impacts over the business entity and the same demonstrated as follows:
As quality of the products is the first component and is a priority which is preferred by the consumers. And if BHP Billiton fails to adhere with the management of quality of the product and the management of the same then the business entity will have to face number of negative consequences. For instance, the consumers will be un-satisfied and will try and think to switch to other brands (Mahadevan, 2015). This will bring down the market share, sales graph to a diminishing level and will so tend the company to suffer losses. And all this can develop the concept of quality management as a challenge for the business corporation.
Global Manufacturing is the concept which comprises of the process and procedures under which the business entity produces the components, sub-assemblies, assemblies, and finished products for another company (Bianchi and Åhlström, 2014). This done by leveraging raw material, manufacturing capabilities, cost, and an efficient supply chain that spans all over the globe. This process can be proven very much disadvantageous for the business entity in some cases. For instance, in case of BHP Billiton the business entity can send the mining products for purification and other refining purposes to some other organization. This can be proven expensive. This will bring an increase in the cost of goods sold which will automatically increase the price of the goods. This can tend to a decrease in the demand for the products and will also affect the market share of the business corporation.
The operations are the functions and the activities which are executed within the organizational structure. The success and growth of an entity totally depends and are also connected on the same (Schwarz, Hall and Shibli, 2015). There are various operations which are considered as very much significant in the path of the success and growth. The below mentioned are some of the operations which are inter-linked with the business entity and are liable in influencing the success and growth of the business corporation:
The products are the outcomes which enable the business entity to earn the revenues and also aid them in attaining the desired objectives and goals. The goods and services are the players which are held liable for influencing the growth and success of the business. Products are the offerings which are served by the firm after considering the requirements and needs of the consumers (Brown et al., 2013). The satisfaction level of the consumers depends on a number of components of the products. One of an empirical factor of the products is the design of the same. The design of the product defines the identity which develops a distinct image of the same in the market (Schönsleben, 2016). Moreover, if BHP Billiton is focusing on the design of the products then it will be aiding the business entity to develop a distinct image of the brand. This will help the entity in sustaining and gaining a competitive advantage over the competitors. The below mentioned are some of the factors of the products design which aids the success and growth of the business entity:
Increase in the customer satisfaction level: The products and the services, if designed according to the demands and requirements of the consumers will provide them satisfaction. The more the satisfaction level, the more will be the demand for the nest time. Moreover, the consumers will be brand loyal which will be demonstrating a hike in goodwill (McCrie, 20150. This will be proven beneficial in the path of success and growth of the business entity.
Increase in the market share: The product design aids the business entity in attracting and influencing the consumers. The demand for the product depicts the market size of the business entity (Akalin, Huang and Willems, 2016). And as the product entity experiences an increase in the demand the market size ad share of the corporation will be high. So the BHP Billiton should design and develop the products for satisfying the consumers so as to increase the market demand which will finally result in an enhancement in the market share. An increase in the market share defines a
Increasing brand equity and goodwill: The customer satisfaction level have a direct link with the brand equity and goodwill of the firm (Fernie and Sparks, 2014). The more the customer satisfaction the more will be the brand equity and the goodwill. A high level of goodwill demonstrates the stability of the business entity and a stable business corporation is understood to be a successful one.
Supply chain has been considered as an integral part of any of the business corporation and is also essential in the success, growth and customer satisfaction (Wisner, 2016). The below mentioned are some of the benefits for the customers which in-turn will reflect in the success and growth of BHP Billiton:
The customers have an expectation of the correct product to be delivered and assortment of the same should be done which will be done, which brings enhancement in the satisfaction level. Moreover the orders should also be delivered at the right location and also the time of the delivery should be perfect (Bamford et al., 2015). The after sales service is an additional feature of the process which is required to be adhered by the company for increasing the satisfaction level of the consumers. All of the above mentioned are the points which enhance the satisfaction level of the consumers and will contribute in the success and growth of BHP Billiton
The supply chain brings varied range of cost to a diminishing level which are presented as below:
The resources are the modes which can be utilized by the business entity for revenue generation. BHP Billiton is the multinational corporation which has a wide range of resources and the same are segmented in various divisions. For instance, tangible and intangible resources, is the main segmentation for the business corporation which can be proven beneficial for executing and adopting the approaches of resources management (Ferguson and Souza, 2016). These resources are considered as very much significant for the business entity and are also very much liable in contributing towards the growth and success. The resource management involves the adoption of strategies and approaches which will enable the business corporation to make the optimum utilization of the resources. Financial resources are one of the significant resources which can be plays an integral part in the success and growth of the firm. This resource enables the business entity to invest more on the best and contemporary promotional mediums and platforms, which will develop a great awareness for the product in the market. Also, the entity will be able to hire a potential and expertise level of workforce which will serve the business entity to their best level (Bouchery et al., 2016). Moreover, a good financial stability will enable the business corporation to purchase a high quality of raw materials and which will in-turn will provide them with good quality of finished products. Human resource is the another segment which is also considered as one of the empirical factors in the concept of resource management. Human resource management will serve the business with the outcomes such as the attainment of the desired objectives and targets, increase in the goodwill, and enhancement of brand equity. One of the most valuable assets of the business organization is the workforce and the same is liable and held responsible for the execution of the overall operations and the functionalities. A well-managed human resource will lead the business organization to the gain a competitive advantage over the competitors and a competitive edge in the business environment. And hence the resource management within BHP Billiton can be considered as relevant and responsible factor which contributes in success and growth (Gupta and Starr, 2014).
Conclusion
In the limelight of the above executed analysis it has been inferred that the operations management is the concept which has been considered as a significant term in the success and growth of the business entity. The above presented report has been made focused on BHP Billiton which deals in mining activities. Moreover, the report has been segmented in two divisions, in first division the report includes some challenges which can be faced by the business entity and are liable in influencing the business operations in future. The second part comprises of the operations which are liable and are considered as significant for influencing the success and growth of the business corporation, There are number of operations in the business organization which contribute their working in the path of success and growth of the businesss entity and the same has been described I the above report.
References
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Bamford, D., Moxham, C., Kauppi, K. and Dehe, B., 2015. Going the distance: Sport operations management in the public and third sectors. Public Sector Operations Management, Routledge, pp.13-29.
Bianchi, M. and Åhlström, P., 2014, May. Additive manufacturing: towards a new operations management paradigm. In 20th International EurOMA Conference.
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Galliers, R.D. and Leidner, D.E. eds., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.
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