Business Operations and Management

Business Operations and Management

Introduction

Business operations are essential activities taking place in a business to support the sustenance and growth of the enterprise and increase its profit margin on daily basis. The business enterprises strive to manage these activities in the most optimal manner possible, essentially to minimize the cost in operation and elevate the profit margin of the company, benefit all the stakeholders involved. The workforce of an organisation help in achieving this by performing particular functions in the business such as manufacturing, management, accounting, and marketing. Business operations effectively evolve with the growth and development of the organisation, which is effective management by the function of management to prevent obstacles that might take place due to changes.

This report is going to thoroughly examine the concept of business operations. Furthermore, an analysis of the key functions of business operations will also be carried out. Thisreport will also provide an evaluation of the management decision of different functions of various business operations of the organisation Aston Martin. This report will conclude all the finding in the context of Aston Martin and its business operations along with a brief description of the company as well.

Brief description of the company

Originating from Britain, Aston Martin is one of the leading organisation in the luxury automobile industry.This public limited company is known on a global scale for manufacturing luxury sports cars. Founded in the year 1913,This global giant is currently owning 160 car dealerships ranging across 53 countries (astonmartin.com, 2021). Aston Martin has reportedly generated revenue of £997.3 million in the year 2019 (astonmartinlagonda.com, 2021). Moreover, this premium automobile manufacturer is currently headquartered in Gaydon, Warwickshire, England, the UKwith employing around 2,450 skilled workers worldwide.The fundamental vision of Aston Martin is to become a great automotive organisation from Britain that produces the most accomplished and beautiful art in the automotive industry all over the globe (astonmartinlagonda.com, 2021).

An explanation of the main functions of business operations

There exists a variety of organisational functions of business operations, each serving a specific purpose. However, to successfully carry out business operations in the most efficient manner, gaining sustainability and profitability in the market, these various functions need to work in collaboration. Following are some of the main functions of business operations which build the foundation of any company:

• Production

The function of production refers to the manufacturing of the goods or services using specific processes and systems. the production of products and services essentially varies according to the various aspects of the organisation such as capital, workforce, resources and facilities. The function of production greatly plays a vital role in the smooth operation of the business and performance of the organisation in the market (Nabokikhet al., 2017). in the leading organisation, the production function is organised, formalised, and systemized with the highest efficiency. The production manager is usually responsible for the function of production.The manager essentially performs the role of ensuring the quality of products or services meets the specified limit along with delivering the determined quantity of the production. The manager is also tasked with delivering the required goods and services on time and performing all the production functions with minimal funds and resources.

• Marketing

Marketing can broadly be defined as the process of providing the manufactured products and services to the customers, aiming to deliver satisfaction both to the customers and manufacturers. In simpler terms, the function of marketing essentially forms a processthroughwhichtransfer of ownership takes place between the consumers and the company, forming an exchange relationship (Hirunyawipada and Xiong, 2018). The function of marketing effectively revolvesaround the concept of 4P which has recently been upgraded to 7P. First P refers to the product where marketing function recognizes he demands from the consumers and designs the products accordingly after which Pricing strategies are determined accordingly to the market conditions. The third P refers to physical distribution where the distribution channels are laid out efficiently while the fourth P is a promotion which deals with promoting the goods or services among the target market. the other Ps are physical evidence, people and processes which play a significant role in the function of marketing, affecting the dynamics of business operations as well.

• Finance

The function of finance lay at the heart of the business operations and its overall performance in the industry. the finance function is primarily responsible for investment decisions which refer to budget planning and properly allocating the funds.It also plays a significant role in carrying out the financial decision in the company such as determining the financial structure, whether it should be fixed or working, long term or short term. Another important role of the financial function of an organisation in the context of business operations is dividend decisions and liquidity decisions (Nielsen, 2017). The finance function of an organisation essentially forms and develop relations with the financial markets consisting of major shareholders and economic institutions.It also takes responsibilities of issues concerning risk management share buybacks, and capital raising sources of borrowings. The financial function performs a vital role in providingknowledge regarding the finances with the most efficiency and supports effective management of business plans. This function helps in establishing the business and its growth and expansion.

• Human Resource

The HR function is responsible for managing the most valuable asset of an organisation, the people. The primary aim of the HR function is to increase organisational performance through effective management of human performance, usually by motivating the workforce and creating a healthy and safe environment for them. HR functions contribute greatly to the achievement of the organisational goals and increasing the organisational sustenance (Ahammad, 2017). One of the most fundamentals roles of the HR function is a selection which deals with identifying the need for more manpower, analysing the job, various nature of recruitment, selection the candidates and doing follow-ups. It also deals with training the newly hired candidates and supports the process of Human Resource Development. Moreover, the function of HR is also responsible for promotionsand transfers, along with managing the payroll and compensation of the employees in the company. HR functions primarily; aims to increased employee involvement and welfare activities. Hr function essentially maintains industrial relations such as trade unionism and industrial discipline as well.

• Information function

In recent times, the function of information has become just as significant like other functions with the advent of technology. The information function plays a vital role in gaining competitiveadvantage in the market of the modern age.The function of information is concerned with storing all the data and information and keeping records which can be very crucial for forming business plans and strategies. The fundamental purpose of the information function is to collect all the necessary information, store it or generate information, and communicate it to the organisation which is essential for decisions and policymaking. Therefore, the information function, in particular, the IT cell acts as a backbone for all the business operations by providing valuable information for effective decision making. All the important roles regarding the information function are generallyentrusted to information manager which possessspecialised knowledge and skills to perform this function most efficiently. Modern businesses host a wide range of scope for the function of information.

• Innovation (R&D)

Innovation refers to adaption or creation of improving products, services, methods or process in a business. Innovation in an organisation can take place in many forms mainly by new methods of operations, new structure, new process, evolvedmarketing method in business practice. Innovation is essentially brought in an organisation by the department of Research and Development (Vendrell-Herreroet al., 2020). In the age of intense competition in the market, innovation has become the most important and effective method of gaining a competitive edge for which the function must be understood and implemented properly in the business operations. The department of Research and Developmentconstantly seek to invent various products, services and process in the business they support the function of innovation. Moreover, the function of innovation enhances the organisational productivity, performance and most importantly, the profitability of the business in the market.

An evaluation of the company’s operations management decisions: Production, Supply chain, logistics, location strategies, quality control and HR

Aston Martin has been dominating the market of luxurysports automobiles for a long time. To maintain such a competitiveedge in the industry, the business operations of this British company is effectively managed by the co-ordination between the different functions of the organisation. to comprehend this phenomenon, an evaluation of management decisions of Aston Martin’s operations is as below:

• Production

One of the most significant reasons Aston Martin has gained a marketreputation is its method of production. This company does not make car production in masses, instead, every car of ASTON Martin is designed and manufactured intricately which goes under 200-hours build process. Every car is inspected, sometimes by the CEO of the company to ensure that it meets all the set target and quality (theverge.com, 2021). However, the company had been found in trouble recently due to the halted production of its luxurious cars in the recent light of COVID-19 pandemic, leading to £10 million cost-cutting programme (theguardian.com, 2021).

• Supply chain

The most beneficial decision of the management of Aston Martin is its implementation of a more flexiblesupply chain to enhance business sustainability. Aston Martin currently has over 200 suppliers all over the world, mostly local which are believed to efficiently handle component complexity (astonmartinlagonda.com, 2021).However, Aston Martin has to recently adapt to supplying its automobile parts through air transport due to the phenomenon of BREXIT. This has caused additional expenses to the function of the supply chain of the Aston martin which has reflected in its lowered profit margin (theguardian.com, 2021).

• Logistics

In the year 2015, Aston Martin opened up a new warehouse and logistics facility near its headquarter, primary to support its Second Century Plan. This largest storage and distribution base of the company was fundamentally established to possess the right sources at right places at the right time which is essential for the manufacturing process of Aston Martin (astonmartin.com, 2021). The only drawback to this decision was it occupied multi million capital of the company’s funds which did not provide enough returns as the production and business operations of Aston Martin have halted due to the Pandemic, further deepening the losses of the company.

• Location Strategy

The management of Aston Martin has implemented an ambitious strategy called 'Second Century Plan’ basically aiming to enhance the profitability, ensuring product development by the organisation for the long term (astonmartinlagonda.com, 2021). This plan has three stages namely stabilisation of the business, improving the product portfolio, and strengthening the organisational core. However, the company did not anticipate the impact of COVID-19, resulting in lowered profit margin and strain on the sustainability of the company.

• Quality control

As discussed above, the company Aston Martin puts exceptional emphasis on the quality of automobiles it delivers. Everyone working in the production of Aston Martin is skilled and specially trained for a specific aspect. Most of the cars of Aston Martin are assembled and crafted by hands, which makes it all the more valuable in the market. customers from all over the world gather to watch the assembly process taking place in the operations of Aston Martin. This company makes only 5,200 automobiles every year (theverge.com, 2021). However, this decision regarding quality control puts limitations on the organisation’s productivity and performance in the market as well.

• HR

The function of HR in the organisation Aston Martin has played a huge role in aligning the organisational objectives to the aspirations of the workforce of the company. The company implemented ‘The Aston Martin way’ where a learning plan was strategized for the workforce to improve their skills and behavioural aspects. Moreover, employee surveys were carried out in Aston Martin to monitor the progress and determine the room for development. The only issues with such a strategy are that the company also needs to adopt various strategies to retain the employees as well.

Conclusion

The business operations run at the core of any organisation, founding its basis and providing a direction for the organisation’s future. Some of the main functions of business operations include production, finance, innovation, HR, marketing, and information function. The company Aston Martin has successfully recognised the potential of each of the business operation and implemented an organisational structure that best supports it. This has resulted in the organisation gaining competitive edge and dominance over its competitors on a global basis.

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