Management Systems In Business Enterprises -Myassignmenthelp.Com

Question: Discuss About The Management Systems In Business Enterprises? Answer: Introduction Operations Management is the process of administrating the business processes to develop highest level of effectiveness and efficiency possible in a company. It is one of the most important processes of an organization, which assists an organization in attaining its overall objectives. It includes using the resources from materials, human resources, equipment, materials and technology. The idea of operations management is primarily emphasized on administration and management of different processes and methods, which can be managed by the business entity for enhancing its capabilities and profitability. The major concern in this process is sustaining the balance between income and expenses, so that business entity can achieve increased net profit. There are some examples of operations management, like; decision making regarding implementing plants, strategies for expanding the business and utilization of data structure for innovation systems etc. In order to manage and implement the operations, an organization may face various issues and challenges. This report includes different challenges, which impact operations management in an organization, like; quality management, changes in the customer expectations, changes in job design, globalization etc. The Australian business, which is taken into consideration here, is BHP Billiton. The company is an international organization in Anglo-Australian metals, mining and petroleum business. BHP Billiton is dual-listed public organization that is headquartered in Melbourne, Australia (BHP, 2017). This report analyzes the effect of these challenges on chosen business and its operations. Furthermore, it includes some areas of operations management, which mostly impact the success of chose n business in todays competitive business environment. The three areas, which are discussed in the below report, are supply chain design, product and service design and resource management. Impact of Challenges on Business Operations management plays a vital role in alleviating the policies and processes of organization across different business areas, like; technology, finance and planning. Operations Management is very challenging as it employs highly technical approaches and methodologies (Anderson, Anderson and Parker, 2013). There are multiple challenges, which are confronted by organization on regular basis in managing business operations and processes, like; Technology changes, globalization, changes in customer expectations, changing job designs, quality management and global manufacturing. These challenges impact the business of BHP Billiton in the future. Following are some of challenges and issues, which can be confronted by BHP Billion; Changing Technologies The scope of technology in operations management has progressed over past few years and has moved from development of products into design, improvement and management of processes and systems. Changes and advancement in technology is one of the factors, which have been considered very important for every business organization in todays business environment. Technology is a factor, which has different impacts on business activities and processes and offers both intangible and tangible advantages to an organization (Aviv, Lariviere Terwiesch, 2009). These advantages support an organization in achieving competitive advantages, increased efficiency and productivity, quality products and services and enhanced customer satisfaction by delivering quality products. Changes in technology offer both positive and negative effects to an organization. BHP Billiton may have both impacts of technology changes. Apart from positive impacts, there are some adverse effects, which impact the operations and growth of this business. First and foremost issue is integration issues, which states that it is not essential that new installed and advanced technology will match with old and existing technology systems in the organization. If BHP Billiton incorporates new technology systems in its business operations, then it may face the issue related to employee resistance because employees make efforts to resist technology changes (Aaker and Biel, 2013). In addition, the organization will have to bear the training and development costs to train the employees about advanced technology. Integration issue will lead to develop a double data entry in the processes that will show on different places in the system. Thus, integration of new technology with existing can be proven as a threat for BHP Billiton. In this context, another challenge is backup and data recovery challenges. BHP Billiton needs to manage the data of its suppliers and customers. If any file gets erased accidently because of server crash, power cut and other technological issues, then the company may face the issues related to data and material information loss. So, it is very important to have a data recovery system for the organization to overcome technology related issues (Beardwell and Thompson, 2014). Continued Globalization of markets including 1st and 2nd world entrants Globalization is the process, by which an organization expands its marketing and business operations to international or global levels. Globalization offers the markets with different international stages to handle with the issues, so that it can improve the efficiency, quality and effectiveness of products and services. This is because of the development of enhanced and modern methods. Internationalization and modernization are the major factors, which assist the business environment and markets of an organization. If BHP Billiton expands its business globally, it may face various challenges, like; the company will need to understand and comply with the laws and political regulations of international markets. For example, the organization will confront the issues related to laws and taxes of the emerging market, in which it is expanding its business operations (Brown, Bessant and Lamming, 2013). In addition, the company will face the issues due to cultural and language differences. Thus, political and legal factors are the major challenges, which affect the operations management in the organization. Changing customer expectations The significant components of customer service are endless, but expectations of customers are not. In todays business environment, customers are always desired a reliable, efficient and friendly service, but with the emergence of enhanced technology, the expectations of customers have been changed with the passage of time. Customer is the king of market, so it is necessary to consider their expectations and needs for managing the organization and its business operations (Chase, 2017). The organizations manufacture and deliver the products according to the needs and preferences of customers, which will lead to the organization in attaining its business objectives and goals. For an organization, demand and supply is totally dependent on the likes and expectations of customers. It is a significant factor that influences the growth and success of business of BHP Billiton. BHP Billiton may face the issues related to customer expectations as the expectations of customers change with the ma rket trends. The customers, who are going with the products and services BHP Billiton, have the expectation of innovative and upgraded products (Christopher Martin, 2016). If the company will be unable to fulfill the needs and expectations of customers, then there will be chances of declining its customer base and market share. It will diminish the sales and revenues of organization. Apart from this, if the expectations will be fulfilled by the company, then it will assist BHP in developing its customer base. Changing job designs Job design is a significant factor that is related to managing and organizing the tasks and responsibilities, so that it can assist the organization in accomplishing its overall objectives. This process also includes different methods and practices, which are very important for operating business operations smoothly (Christopher, 2016). Effective designing of job and duties is essential for completing the job successfully. There are several effects, which changes in job designing have on organization and its operations in the future. BHP Billiton may face various challenges due to changes in job designs. If there will be changes in the jobs and duties of employees at BHP Billiton, then they will feel demotivated and frustrated due to fluctuations in their job responsibilities. They will be less interested in performing their jobs and it will affect the processes and operations of organization. It will create issues in attaining major goals and objectives of organization. Employee retention and turnover ratio will lead to the higher expenses for the company and will be recognized as a threat for BHP Billiton (Galliers and Leidner, 2014). Furthermore, active changes in the jobs lead the employees to lower morale and frustration towards their job. It will affect the processes and operations of the company as the performance of employees will get affected by this. Thus, frequent changes in job designing will have adverse effects on BHP Billiton. Quality management Quality management is also considered as a significant factor that will carry the organization to the growth and success in competitive business environment. This factor is very important that assists the organization in offering satisfaction to potential customers. Each and every customer expects that organization offers quality products and services. If an organization will be able to attain this factor positively, then it will be profitable for the organization. It will assist the company in improving and enhancing its market share, creating brand equity and goodwill. Quality Management will assist BHP Billiton also in increasing its profitability and market share. The organization is offering metals, mining and petroleum services and it has various competitors in the Australian petroleum industry. Apart from these positive impacts, BHP Billiton will have some negative impacts, like; if BHP will not be successful to manage its quality of the products and services, then it will fac e several adverse consequences. For example, if the customers will not be satisfied with the products and services of BHP Billiton, then they will make steps to other brands like; BP Petroleum, Exxon Mobil etc. It will in turn decline the sale and market share of company (Heizer, 2016). The organization needs to consider and emphasize of the quality of its products and services. Global manufacturing Global manufacturing is the process that refers to the practices that a business organization manufactures the parts, assemblies, sub-assemblies and final products for other organizations. This process is completed by leveraging the cost, manufacturing capabilities, raw materials and effective supply chain system, which extends throughout the world. Global manufacturing can be very unfavorable for the organization in many cases. In the case of chosen business, BHP Billiton can manufacture the mining products and send them to other firms for purification and some other filtering objectives. It will be very expensive for the organization and it will increase the costs of goods sold (COGS) that will enhance the final prices of products. It will lead to decrease the demand for products and services of BHP Billiton (Hill and Hill, 2012). Eventually, it will adversely influence the market coverage and share of the company in Australian mining and petroleum industry. Impact of different areas of Operations Management Operations are the processes, which are adopted and implemented by an organization to attain its final objectives. The growth and success of an organization completely depends on management of its operations and business practices. There are various areas of operations, which are regarded very important in attaining growth and success for an organization. From all the operations, three areas are considered here to explain the impact of them on business of BHP Billiton (Hitt, Carnes and Xu, 2016). The following section of this report includes some areas of operation management in context of BHP Billiton. The chosen areas are, such as; supply chain design, resource management and goods and service design. It will explain that how these areas are impacts the growth and final success of the chosen organizations business. Supply Chain Design Supply chain management is an essential process for an organization, especially which is engaged in production and manufacturing activities. It is a process of managing products and services and comprises of storage and flow of raw material from work-in progress to final products. Supply chain process includes different areas, like; product flow, information flow, cash flow and process flow. Designing an effective supply chain system is an integral part of a business organization and it is very important for the delivery of products and growth and success of an organization. There are some advantages of supply chain design that will demonstrate the growth and success of BHP Billiton (Hoyle Rhiannon, 2017). From each and every organization, the customers have expectations that they receive right products and delivery should be done on predetermined time that will enhance the customer satisfaction level for organization. In addition, the products should be distributed to correct location in the given time period. Furthermore, after sales service is an extra specification that is needed to be considered by an organization to enhance the customer satisfaction level. These are the important factors, which will attract more and more customers and satisfy them with by adopting an effective and efficient supply chain system (Jacobs and Chase, 2013). With this, it will aid the growth of organization in todays competitive business environment. Supply chain system of an organization brings a variety of costs to decreasing level that are stated below; Purchasing costs: At BHP Billiton, supply chain design may impact the purchasing costs and bring it to decreasing level. Primarily, the retailers are dependent on the process of supply chain and fast delivery of costly products to avoid the storing expensive inventories in the stores for longer time. Along with this, making supply chain efforts can reduce the inventory costs for the organization (Johnson, Christensen and Kagermann, 2008). Moreover, manufacturers are also dependent on the delivery of raw materials to the manufacturing premises, so that they can avoid the shortage of material, because it can lead the production process to stop. There will be huge impact on the production and manufacturing process and eventually, it will affect the supply of products to customers and productivity and profitability of BHP Billiton will get affected by this. The raw materials from the suppliers are transformed to the finished goods through organizations assembling premises. These final products are transferred to transportation services and from transportation to retailers and then retailers to final consumers. However, supply chain systems of several manufacturers may have auxiliary, necessary and domestic suppliers (Kammar, 2016). Thus, effective designing of supply chain system is very important for an organization, so that it can manufacture the products and deliver them to customers on given time. Supply chain managem ent plays an important role in attracting the customers towards the organization, as they are more enticed by delivery of right product on right time. Goods and Service Design Products are the final results, which make the business organization able to generate the revenues and also support the organization in achieving goals and objectives. Goods and service design is the process of manufacturing a possible future product or service that includes its fit, form and function. Determining the best suitable method develops effective productivity and it is the best way for business operations (Khanna, 2015). Product and service design is a process of planning and organizing the human resources, organizational structure, communication process and components for enhancing the quality of products and services. For product and service design, it can be stated that it is the process of developing the products and services, which are to be sold by an organization to its customers. The products and services are the major factors, which are accountable for affecting the success and growth of the business operations of organization. Products are the supplies that are offered by a business entity after looking at the needs and expectations of their potential customers. Customer satisfaction level is totally dependent on various elements of products (Krajewski, Ritzman and Malhotra, 2013). One of the major factors of product is the designing the right products as per the needs and expectations of customers. This designing process refers to the identity of that product that develops a different image of that particular product in the marketplace. Furthermore, if BHP Billiton will focus on the development of products and services, then it will assist the organization in creating its better brand image in the mining and petroleum industry in Australia. In addition, it will help BHP Billiton in maintaining and achieving competitive advantage over its competitors. There are some specific factors of product and service design that assists the organization in increasing its profitability and possibility to get success. These factors for BHP Billiton are stated below; Increase in Market share The product and service design assists the business organization in enticing and affecting the customers. The product demand shows the market size of the business firm. As the company experiences increase in demand of products and services, the market share and coverage of that company will be higher over its competitors in the industry. BHP Billiton should engage in designing and developing the products according to the needs and preferences of customers, so that it can satisfy their demand (Li, 2007). It will enhance the demand for its mining and petroleum products and ultimately it will enhance the market share of BHP Billiton organization in Australian metals, mining and petroleum sector. An increased market share of the company shows its profitability and revenue generation capability and its market coverage over its competitors in respective industry. Increase in satisfaction level of customers As discussed above, that the customers are the king of market. This phrase is being repeated time to time by each and every organization. In todays competitive business world, this phrase actually positions true. The organization that has maximum customer satisfaction level has more chances for growth and success. The reason behind this is that if a firm measures its own customer satisfaction then it may assist it in optimally changing operations and marketing strategy. Customer satisfaction is the key for retaining the customers (Mahadevan, 2009). For achieving increased customer satisfaction level, it is essential to consider the needs and expectations of customers. If an organization manufactures and designs the products and services by considering the requirements and demands of customers, then it will provide them satisfaction. If the customer satisfaction level will be high, then it will enhance the repeat intention of customers to purchase the products from similar organizatio n. In addition, it will increase the brand loyalty of customers, which in-turn will hike the goodwill of company. Thus, customer satisfaction level is an important factor that is very beneficial for the growth and success of organization (Mangan, John, and Lalwani, 2016). BHP Billiton should emphasize on achieving maximum customers satisfaction level by considering their demands and needs. It will enhance the sales of company that will enhance the revenues and profitability of BHP Billiton. Increase in goodwill and brand equity Brand equity and good will are two major outcomes, which each and every firm wants to attain in its lifecycle. The firms make efforts to attain these both factors. Brand equity is regarded as an intangible asset that is determined by the perception of customers towards the brand and its products (McFarlane, 2014). A company can attain positive brand equity when its customers are ready to pay more for its products with well-identified brand name. Furthermore, goodwill is another intangible asset that includes value of company but it cannot be valued and recognized. Generally, goodwill is related to the acquisition of business. Good will and brand equity, both plays an important role in establishing brand image of an organization (Netessine Christopher, 2009). As mentioned in the above paragraph, it can be stated that there is a direct relationship among satisfaction level of customers and good will and brand equity of an organization. If the customer satisfaction will be high, good will and brand equity will be more than its competitors (Silva, 2005). BHP Billiton is a well-established organization in mining and petroleum industry and has a better goodwill and brand equity in the market. A higher goodwill indicates the strength of business organization and a strong business entity is considered to be more effective and successful. Resource Management Resource management is the effective and efficient management of resources of organization, when they are required. There are different resources, which are included in the category of organizational resources, like; human resources, financial resources, information technology resources, production resources, inventory etc. The resources are significant modes that can be used by an organization for generating revenues (Smith and Offodile, 2014). BHP Billiton is the international organization that possesses variety of resources and these resources are sectioned in different categories, for example, intangible and tangible resources. This is the major segmentation for a company that can be very beneficial for adopting and implementing different approaches and strategies of resource management. All of these resources are reflected as very important for organization and are accountable for the success and growth of business and its operations (Steenkamp, 2017). Resource management includ es the implementation of different methods and strategies that will make the organization able to optimally utilize the organizational resources. BHP Billiton has the major resources like; financial resources, human resources, information technology etc. Financial resources are the most important resources, which play an important role in the growth and success of organization. An organization can find out its profitability and revenue generation by looking at its financial resources. These resources make the company able to make more investment on best and modern promotional platforms and modes that will increase awareness of products and services among the population in the market. By utilizing financial resources, the organization will have ability to recruit the expertise and potential team that will serve the customers at their maximum extent (Swink, Melnyk, Cooper and Hartley, 2014). An organization with better financial stability will be able to buy a better quality of raw materials and finally it will assist the manufacturers in offer finished goods with high quality. Apart from this, human resources are other resources which are used as one of the major factors in order to manage resources. Human resources are the people, who are working with organization for attaining the goals and objectives of organization. Human resource management is the process of managing the people that right people are working on right position in order to achieve the organizational objectives. This process will serve the business of organization with the results, like; achievement of desired targets, enhancement of good will and brand equity. These resources are the most valuable resources of an organization and they are accountable for the implementation of business operations and strategies. If BHP Billiton will have well-organized human resources and workforce, then it will able to gain a higher competitive advantage over its existing competitors in Australian industry (Wynn, Turner, Banik and Duckworth, 2017). Goodwill and brand equity of an organization are the int angible resources, which need to be managed for attaining profits in the competitive business environment. These resources of an organization can be managed by delivery best quality products to the customers, so that they can achieve maximum customer level. Good will enables the organization in attracting more investors, who want to invest their funds in the company. It will attract more customers towards organizational products and services. Thus, the resource management at BHP Billiton can be reflected as very responsible and relevant constraints, which adds growth and success to the organization. Conclusion From the above analysis, it can be concluded that operation management is an aspect that should be considered a significant concept in order to achieve success and growth of an organization. The above report has been emphasized on the organization, i.e. BHP Billiton that deals in different business and operations like; metal, mining and petroleum. The organization is well-established in Australian industry. The report has included different issues, which may impact the success of chosen organization, like; changes in customer expectations, job design, quality management, globalization, global manufacturing. These challenges may impact the business operations of organization in the future. The organization needs to develop effective strategies to deal with these issues in todays competitive business environment. The next section of the report includes three areas of operation management which are very much important for the success of organization. There are various operations, from which three are chosen for this discussion, i.e. goods and service design, supply chain design and resource management. These areas off operations management contribute to the development and success of the business organization. Thus, the operations of BHP Billiton are also affected by these areas of operation management process. The Organization should develop some processes and strategies to handle all the processes of operations management. References Aaker, D.A. and Biel, A., 2013.Brand equity advertising: advertising's role in building strong brands. Psychology Press. Anderson, M.A., Anderson, E.J. and Parker, G., 2013.Operations management for dummies. John Wiley Sons. Aviv, Y., Lariviere, M. Terwiesch, C. 2009, "Operations management", Management Science Beardwell, J. and Thompson, A., 2014.Human resource management: a contemporary approach. Pearson Education. BHP, 2017, Our Approach, Retrieved from https://www.bhp.com/. 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