In: Operations Management
Marketing concept is to place your unique product on the global platform. This includes the availability of goods and services to customers at affordable prices (Webster & Lusch, 2013). The entire product cycle, right from manufacturing to modifying it in accordance to the preferences of the majority consumers. My experience with marketing strategy is that there are wide variety of products available. As compared to earlier days when theme park meant only those in the western world now there are more theme parks in the global market for same purpose. It then created diversity to some extent and notice consumers will go for the brand that hit the market, example Disneyland and Universal Studio. However, this may not be true to all products, as I personally have changed my preferences as time goes by. Another example, toothpaste still brings one name to my mind, even though there are several options available for day to day usages. Organizations began to conduct markets survey, study consumer behavior and eventually the result help to create products that suits the needs of the customers. So far there are no products has ever fail to meet my expectations even with something new in market that hits the store. Sometimes it is the mindset that restricts us from using another product from what we had been using for ages. Again, it does not restrict me from trying other products, however it sometimes so happens that after using a certain new product the satisfaction level is not as much as I had derived from the previous one which takes me back. The value of the brands in a competitive market can vouch for its survival. Value is subjective to how much the consumers would perceive the brand prior to making that decision. Therefore, it’s perceive as regard to the superiority of the brand as compared to unknown brand in the market. The way of marketing concepts has also changed a lot and because of many organizations are trying to be innovative and creative so that they are effective in the industry. There are various ways through which a business organization uses marketing strategies to help them in the business perspective, there are many platforms if we look at the trend of business marketing we will see that social media has emerged as one of the popular platforms in this context and the output has been surprisingly good. Social media has been selected as a platform because it exhibits each and daily, and the number can be high, therefore the platform is effective and will yield results. Using social media has been the most accepted way of marketing because organizations today are spending almost in this avenue because it is convenient and yielding proper results for the organization. In my own work experience, I learned organization need to be flexible and depending upon the demand of the industry and consumer demand, in order to sustain and excel in theme park business globally, using social platform ought to gain its popularity and Universal Studio Park in Beijing is using it as the platform of marketing, this is the future and the need to be available to sustain in the theme park industry. Consumers will evaluate the creditability based upon previous reviews in terms of how honestly it illustrates its model and quality features. Consumers comprehending in terms of the performance and brand’s expectations so long ensuring a long-term inspiration to consumers. Initially it was something new but today it is very common and with the Smart Phones and Tablets advancing every minute the process has become convenient for end users, and they have got used to this convenience to feedback. Therefore, social media is still the big thing in marketing and will rule the future of marketing.
Critically analyze perspectives on the operations management profession, expressing why operations is the key for long-term survival, in terms of cost, speed, dependability, sustainability, and maintaining a competitive advantage within the global market?
OPERATIONS MANAGEMENT:
Operations management is the management of processes that transform inputs into goods and services that add value for the customer.
Goal of Operations Management
The goal of operations management is to maximize efficiency while producing goods and services that effectively fulfill customer needs.
Countless operating decisions must be made that have both long- and short-term impacts on the organization’s ability to produce goods and services that provide added value to customers. If the organization has made mostly good operating decisions in designing and executing its transformation system to meet the needs of customers, its prospects for long-term survival are greatly enhanced.
For example, if an organization makes furniture, some of the operations management decisions involve the following:
If the organization makes good operations decisions, it will be able to produce affordable, functional, and attractive furniture that customers will purchase at a price that will earn profits for the company.
The Role of Operations Management in the Organization
Operations is one of the three strategic functions of any organization. This means that it is a vital part of accomplishing the organization’s strategy and ensuring its long-term survival. The other two areas of strategic importance to the organization are marketing and finance. The operations strategy should support the overall organization strategy. Many companies prepare a 5-year pro-forma to assist in their operation planning. The pro forma uses information from past and current financial statements in an effort to predict future events such as sales, and capital investments.
The Five Operations Performance Objectives
Flexibility inside the organization is also important as it speeds up responses to change, saves time and maintains dependability.
Mass customization: give each customer a customized product/service but being able to produce at high volumes to keep costs down. E.g. Apple – flexibility of design which gives the customer, within limits, the ability to design their own product.
Agility: this is a combination of all operations performance objectives but specifically focus on speed and flexibility. This is also the ability of operations and supply chain can respond to uncertainty in the market.
Performance objectives have both external and internal effects.
External effects of performance objectives |
Performance objectives |
Internal effects of performance objectives |
Short delivery times |
Speed |
Fast throughput |
Low price, high margin, or both |
Costs |
High total productivity |
Dependable delivery |
Dependability |
Reliable processes |
Frequent new products/services Wide product/service range Volume & delivery adjustments |
Flexibility |
Ability to change |
On specification products/services |
Quality |
Error-free processes |
Trade-offs between performance objectives
Trade-off refers when a company “sacrifice” one operations performance objective to improve another performance objective. The concept of “efficient frontier” is used to describe trade-offs and distinguish between repositioning performance on the efficient frontier and improving performance by overcoming trade-offs.
LONG TERM PLANNING FOR BUSINESS:
Any successful business that has been around for some time has, at its core, a framework of planning. Annual financial and business plans, long-term strategic plans, performance management plans and production plans all serve to place structure into daily operations.
Businesses need plans because they serve as a directional tool to keep everyone focused on set goals. When day-to-day operations become chaotic, as they can, the plan is a reference point to bring them back to order.
Businesses that don’t plan typically don’t survive in the long term. They may have everything else going for them, great product and the best staff, but at the first sign of trouble, they are like a rudderless ship. They may weather the first few storms, but eventually there will be a major crisis that causes them to flounder.
Good business operators know this, so it almost defies belief that many businesses operating long term, sometimes for 40 years or more, have no succession plan in place.
Every business owner should have a succession plan, no matter how small or large the enterprise. Many know it but have put the idea aside to get on with their day-to-day management.
It doesn’t have to be this way, especially when there are many business advisers available with the skills to help business owners put a succession plan together. Engaging the help of an accountant to work on it allows the owner to get on with running the business.
Succession plans pave the way for a smooth transition to new ownership. They set out guidelines, give direction when questions are asked, set actions and timelines for certain processes to occur, and cut through most emotions and illogical assumptions.
Anyone responsible for a business or organisation that has no succession plan is leaving the way open for all their hard work to come to nothing.
How operations affect profits
Operations should have a long term competitive advantage focus. Operations can contribute significantly to financial performance of the company e.g. reducing overheads of sales, forming operations teams that give added value. To reduce operating costs and improving customer service can equal or even exceed the benefits of improving sales volumes.
With Operations Management having such a major effect on business it is imperative that the organization must have some method of assessing performance of the operations management, operations function. This needs to done from the different perspectives:
1) How stakeholders view Operations Management 2) what top management expect of Operations Function 3) Set of detailed operational objectives
How Operations Management affect profits?
Operations should have a long term competitive advantage focus. Operations can contribute significantly to financial performance of the company e.g. reducing overheads of sales, forming operations teams that give added value. To reduce operating costs and improving customer service can equal or even exceed the benefits of improving sales volumes.
With Operations Management having such a major effect on business it is imperative that the organization must have some method of assessing performance of the operations management, operations function. This needs to done from the different perspectives:
1) How stakeholders view Operations Management 2) what top management expect of Operations Function 3) Set of detailed operational objectives
SUMMARY:
Operations management is a critical function of any organization and to balance the importance with that of stakeholders is not easy. Most important is that each stakeholder be made aware of the impact of their objectives on the operations. Through information dissemination Company One could get all stakeholders to understand the importance of a well-planned operations structure.
Operations Management is a very good guide for designing and development of an operations strategy and operations plan. Useful guides and case studies enhance the information.