BUSINESS OPERATIONS

    BUSINESS OPERATIONS

 A variety of operations keep businesses, especially large corporations, running efficiently and effectively. Common business operation divisions include;

1.                   Production.

2.                   Marketing.

3.                   Finance.

4.                   Human resource management.

                    Production

Production includes those activities involved in conceptualizing, designing, and creating products and services. In recent years there have been dramatic changes in the way goods are produced.

Today, computers help monitor, control, and even perform work. Flexible, high-tech machines can do in minutes what it used to take people hours to accomplish. 

Another important development has been the trend toward just-in-time inventory. The word inventory refers to the amount of goods a business keeps available for wholesale or retail.

 In just-in-time inventory, the firm stocks only what it needs for the next day or two. Many businesses rely on fast, global computer communications to allow them to respond quickly to changes in consumer demand. Inventories are thus minimized and businesses can invest more in product research, development, and marketing.

                                  Marketing

Marketing is the process of identifying the goods and services that consumers need and want and providing those goods and services at the right price, place, and time.

 Businesses develop marketing strategies by conducting research to determine what products and services potential customers think they would like to be able to purchase. 

Firms also promote their products and services through such techniques as advertising and personalized sales, which serve to inform potential customers and motivate them to purchase. Firms that market products for which there is always some demand, such as foods and household goods, often advertise if they face competition from other firms marketing similar products. Such products rarely need to be sold face-to-face.

On the other hand, firms that market products and services that buyers will want to see, use, or better understand before buying, often rely on personalized sales. Expensive and durable goods—such as automobiles, electronics, or furniture—benefit from personalized sales, as do legal, financial, and accounting services.

      HOW TO HANDLE CUSTOMERS
    It is common sense for a company to want to provide good customer service. Unfortunately, it is not always as common as we want it to be.

For the companies that have figured it out, such as Southwest Airlines (mentioned in the article), it works. They are a case study in how a low cost brand still delivers a level of service that is expected and appreciated; customer service that is common sense.

 What they don’t do is deliver a first-class service with a first class cabin, special phone numbers, etc. They don’t compete at that level by choice and as a result are great at what they choose to focus on

Let’s look at Southwest Airlines as an example. This major U.S. airline is the world’s largest low-cost carrier. Southwest keeps its planes in the air for more time than does its competitors, giving it a lower cost structure that has allowed it to charge lower prices and make regular profits in an industry where most generally lose money and go bankrupt.

The other difference between premium-priced airlines and Southwest – customers flying first class on a premium-priced flight expect their calls to be answered after the first couple of rings, while Southwest Airlines customers might be willing (and in some cases, are expecting) to wait.

This requires extra capacity for answering the phone and at the high end where customer service efficiencies are counter-productive.

 It does not make sense for every organization to provide best-in-the-world service. Instead, the winning approach is to gear service levels to your particular customers’ expectations. Here’s how this works:

Thus, you need a different approach to customer service depending on where you play.

• “Treat customers how we want to be treated,” starting with having a real human being answering the phone.
• Compensate sales people with salaries instead of commissions so they are driven to serve instead of sell.
• Recruit for fit, looking for caring, low-ego, team players, with the “responsibility gene” that makes it impossible for them to “leave a customer hanging” at the end of the day.
• Invest in transmitting values to new hires during their onboarding – through modeling behavior, learning from peers and training classes.
• Recognize and reward superior customer service publicly.

 Make the Choice that Fits Your Business

To be clear, either approach to customer service is a viable path to winning. Just don’t get caught in the middle, trying to charge a premium price for low-cost service. And every business is a service business today, in one way or another. Most importantly, if I’m one of your premium customers, answer the phone!

                                         

                                             Marketing

We’re all new leaders all the time. So remember all the time that leadership is about inspiring and enabling others to do their absolute best together to realize a meaningful and rewarding shared purpose. With that in mind, BRAVE leaders pay attention to their Behaviors, Relationships, Attitude,

The Goodyear Tire & Rubber Company developed its well-known blimp with many marketing goals in mind. The blimp not only makes the Goodyear name highly visible, but also demonstrates the technological expertise of the company and the quality of Goodyear rubber products. The company flies the blimp over crowds at professional sporting events to target an audience of likely tire purchasers.

                                      Finance

Finance involves the management of money. All businesses must have enough capital on hand to pay their bills, and for-profit businesses seek extra capital to expand their operations. In some cases, they raise long-term capital by selling ownership in the company.

 Other common financial activities include granting, monitoring, and collecting on credit or loans and ensuring that customers pay bills on time. The financial division of any business must also establish a good working relationship with a bank. This is particularly important when a business wants to obtain a loan.

                       Human Resource Management

Businesses rely on effective human resource management (HRM) to ensure that they hire and keep good employees, and that they are able to respond to conflicts between workers and management.

HRM specialists initially determine the number and type of employees that a business will need over its first few years of operation. They are then responsible for recruiting new employees to replace those who leave and for filling newly created positions.

A business’s HRM division also trains or arranges for the training of its staff to encourage worker productivity, efficiency, and satisfaction, and to promote the overall success of the business.

Finally, human resource managers create workers’ compensation plans and benefit packages for employees.