l1 business processes

7/30/2019 L1 Business Processes

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AIM: This unit focuses on the understanding andskills needed to manage activities in the

workplace to improve effectiveness and efficiency.


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INTRODUCTION Every business has a reason(s) why it operates.

A sole trader or a large company will have plans not only for

the immediate future but also for the long term, 5-10 yearsin the future.

PLANS to increase productivity, increases efficiency thus

increasing profit.

Therefore better systems makes the business moreefficient.


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INTRODUCTION

AIM

MISSION(SMART)

CORPORATE OBJECTIVES

DEPARTMENTAL OBJECTIVES

INDIVIDUAL TARGETS


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BUSINESS AIMSAn aim is where the business wants to go in the future:

its goals/objectives .

It is a statement of purpose e.g. we want to grow thebusiness into Europe.

Making a profit this is the most common (andobvious) type of aim

Sales growth

business aims to sell more of itsproducts or services. This does not always relate toprofit as you may sell more products but at a lowerprice.


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MISSION STATEMENT

A mission statement sets out the business vision and valuesthat enables employees, managers, customers and even suppliersto understand the underlying basis for the actions of thebusiness.

Usually brief and fairly general. Direct and to the point.Qualitative Aims e.g./ to be the best in the industry, To be the lowestcost producer in Europe

Help the business FOCUS

Provide a PLAN for the FUTURE

CLARIFY for all stakeholders what the business is trying to do ToINSPIRE.


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BUSINESS OBJECTIVES In order for a business to complete its aims, it must make

them easier, or more manageable to do.

Business objectives are measurable targets of how toachieve aims.

They are stepping stones in achieving overall aims.

E.g. A businesses aim is to raise profits by 20% in 3 years.

An objective could be to lower costs in production by 10%. Another objective to complete the aim could be to

improve customer satisfaction to allow repeat custom.


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CULTURE

A set of values or beliefs shared by people in anorganisation. The way we do things here. Norms ofbehaviour.

All companies have a culture, whether it is recognized andconsciously shaped or not.

A company culture can benefit a company or be detrimental,depending on what it is. A company culture is responsible forhow things are done at the company, including what decisionsare made and how theyre made.

Uniform Communication Hours Environment Bars / Computer area


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INTERRELATIONSHIPS OF

FUNCTIONSAll functions of the business have to work together to

achieve the aims/goals of the business.

E.g If a company intends to maximise profit then each

functional area must be accountable for increasingprofit.

How could the following increase profit? Production reduce wastage, use cheaper raw material, use

less staff. Marketing use cheaper mediums of marketing (local

newspaper instead of national paper, advertise on internetinstead of TV)


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INTERRELATIONSHIPS OF

FUNCTIONS

HR recruit a higher standard of employee, train existing

staff to work more effectively. ICT/Administration Use less or cheaper electronic

equipment.

Finance calculate where redundancies can be made, give

less money to each departments budget.


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INTERRELATIONSHIP WITH

PROCESSES It is important to manage processes as well as functions.

All of the people in the organisation should understand theinterrelationship of processes and how these processes

contribute to the overall business goals of the organisation.

E.g the launch of a toothbrush.

Production team has to work closely together with thedesign team to ensure the quality is very good. They alsohave to work closely with the marketing team so that theycan concentrate on how to sell and advertise thetoothbrush.


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BUSINESS PROCESS MANAGEMENT Business Process Management (BPM) provides

methodology and tools to identify, measure andimprove companies processes operations. Thus

improving the organisations business performanceand its relationship with customers and suppliers.

It is a new way of seeing things that happen in theorganisation, how they can be managed, analysed and

improved. There are principles and models that are of effective

process management which will be discussed in theother lectures.


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EXTRA READING Textbooks Harrison A et al Cases in Operations Management 3rd Edition (FT Prentice Hall, 2003) ISBN: 0273655310 Naylor J Introduction to Operations Management 2nd Edition (FT Prentice Hall, 2002) ISBN: 0273655787 Oakland J S and Porter L J TQM: Text with Cases 3rd Edition (Butterworth-

Heinemann, 2003) ISBN: 0750657405 Slack N et al Operations Management (FT Prentice Hall, 2003) ISBN: 0273679066 Journals/newspapers A daily broadsheet eg The Times, The Guardian, The Financial Times Many professional and academic institutions publish journals relevant to this unit.

Examples are: Production, Planning & Control International Journal of Productivity & Performance Management The TQM Magazine


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WEBSITES Websites can provide reports on research and current theories as well

as case study materials. Examples are: www.businesscases.org/newInterface Provides business case studies.

www.dti.gov.uk/mbp Department of Trade and Industry www.efqm.org Management advice for European businesses www.hbsworkingknowledge.hbs.edu Harvard Business School www.hse.gov.uk Health and Safety Executive www.hsl.gov.uk Health and Safety Laboratory

www.managerwise.com Provides information on management practice www.praxiom.com Praxiom Research Group provides information on ISO 9001:2000 quality standards www.quality.co.uk Provides advice on quality management


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RECAP Every business has a reason(s) why it operates. An aim is where the business wants to go in the future. A mission statement sets out the business vision and

values. Business objectives are measurable targets of how to

achieve aims. All companies have a culture, a set of values or beliefs they

follow.

All functions of the business have to work together to achieve theaims/goals of the business. Business Process management (BPM) provides methodology

and tools to identify, measure and improve companies processesoperations.


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Overall aims of a business task

Guess the company

______s vision is to be the world's best quick servicerestaurant experience. Being the best means providingoutstanding quality, service, cleanliness, and value, sothat we make every customer in every restaurant

smile."


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ANSWER


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Guess the company

B_____ aims to be the place for health and beautycustomers. We want to secure market leadership in theUK and build on our brands growing successinternationally


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ANSWER


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Guess the company

_____s mission is to provide a global tradingplatform where practically anyone can trade practicallyanything."


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ANSWER


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Guess the company

"To make the world's information universallyaccessible and useful"


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ANSWER


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THANK YOU !...

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