Major Issues on Business Processes and Systems - Essay Example

Business Processes and Systems Business Processes and Systems Question Operational and marketing strategies within Pars Food Limited Marketing involves a process of distinguishing consumer wants for specific products and services and the subsequent effort to bring into close contact the consumers to the said products and services. It is highly based on four aspects namely; product, price, place and promotion which are also known as distribution (Silvestro & Johnson, 2001). There are general set of directions which meant to facilitate achievement of an objective. In the process of growth in a company, different people are assigned different areas of activity which require varied styles and knowledge to conduct. The main objective of marketing strategy lies in the verification of the nature, way, strength and relationship between environmental factors in specific situations and marketing mix essentials (Thompson & Strickland, 2008). A marketing strategy is developed in order to build, maintain and also defend a company’s competitive edge. Operations management involves production, warehousing, purchasing, shipping, maintenance and planning. Operational strategy involves a set of direction for specific tasks and personnel. It involves getting the company through a product from point A to B. Marketing strategies deal with long-term objectives of the company while operational strategies focus on the short-term. They are set to be achieved within a specific period. Marketing strategies are put in place so that the company can grow through competition with other companies in the same market (Phelan & Ferreia, 2002). Operational strategies on the other hand work depending on the set out marketing strategies. The strategies include such points as how to attract potential customers, how to maximize wants and how to meet customer satisfaction through efficient services. Marketing mix becomes a part of operational marketing in this way. Marketing strategies involve the optimization of marketing processes. This means that they ensure that demand of a specific product is channelled in the right direction. It involves the creation of more wants among customers which is of course at a reasonable rate. The marketing strategies employed must not only be implemented by through reasonable, sound and consistent practices. The strategies must also be dynamic and interactive. Operational strategies when adequately implemented get a company the most profit for the least amount of resources. The observation is that marketing strategies refer to a company’s long-term approach to positioning itself in its markets (Bhurian, Menguc & Bell, 2007). Operational strategies refer to the day to day approach of managing aspects such as pricing and advertisement. This in term shapes the long-term direction of the company. Armed with the above information, it is possible to evaluate the relationship between marketing and operational strategies at Pars Food Limited. The company has a strategy of competitive advantage and differentiation. This means that one of its marketing strategies is quality delivery. One of their objectives is to have the capacity to serve clientele from their location, wherever it may be. The intention here is to service delivery when needed thereby creating more wants. This will translate into steady supply and more profits. Of course that relates well with the company’s business strategy of sustainable profit. One of the company’s operational strategies is transport sourcing within the company. This is bound to reduce the current costs of outsourcing transport. Transport is an important aspect of operations in this company as its use is evidenced from the initial sourcing of the material to the final delivery of product to customers (Brooksbank, 2010). Delivery of service to customers wherever they may be is one of Pars Food Limited’s marketing strategies. Bearing in mind quality and consistence, it would be adequate for the company to have its own transport means for convenience purposes. Future prospects of having its own transport system relate with day to day activity of delivery of food on the doorstep to customers. Pars Food Limited has an operational strategy of increasing product range of “Pars Chilli Pepper Cheese Nuggets”. Additionally, the company intends to add a value pack of the “Pars Seasoned Twisters”. This will be in place of the surplus “Stake Cut Chips” which are slowing moving in the market. The overall marketing strategy involves increasing the market share in Europe. Variety of food products facilitated by the addition of the authentic, luxury and value pack are strategies in the operations of the company that have positive impact on the larger marketing strategy of increasing the market share. This is because more product variety means larger customer pool and subsequent great profits which will place the company higher on the market list. The company intends to invest further with regard to staff, equipment and storage. Currently, the company has about 300 employees in its ten different departments. It also lacks some equipment such as machinery to fully utilize its potential. Storage facilities are not enough to cater for all goods especially with the intended addition of some products. The general marketing strategy involves addition of resources to facilitate efficient production and distribution of food products. The operational strategy at hand involves an increase in 25 full time staff especially in the shop-floor, sales and marketing department. Part time staff increment is also intended especially in the shop floor and transport by about 30. The storage needed in the operations department as at now is good capacity freezers to cater for all products. With regard to equipment, the company intends to purchase a new cutting machine to be used for the manufacture of a product range, Twisters. With enough staff, equipment and storage, operations will run smoothly on a day to day basis. Additionally, Pars Food Limited will be able to achieve its general marketing strategy of increase in human and other resource. Marketing and operational strategies of Pars Food Limited are related in that the short-term approach of each strategy (operational) works towards the achievement of the company’s long-term objective (marketing strategy). The relationship between marketing and operational strategies is that they must be geared towards the same direction for the company objective to be achieved. The objective here lies in enhanced operational activities for better production and distribution which translates to more sales hence increased profits. Question 4: Importance of the role of recruitment and selection in improving the operational and financial performance of Pars Food Limited Recruitment and selection is a planned process which lies mainly under a Human Resource management strategy (Harnick, 2011). Recruitment in a company involves the process of identification and attraction of potential candidates within and/or outside the company. The purpose is to evaluate these candidates for future employment. After they are identified, the selection process begins (Compton, 2009). This second process involves the collection, measurement and evaluation of candidate’s information in this case their qualification for a specific position. This process in a company proves to hold a significant role in any organization because it determines the kind of skills abilities brought into the company. Different companies employ different strategies in recruiting candidates. Of essence is the importance of recruitment and selection in worker performance and company positive outcomes. Selection of a workforce is not just a mere replacement of departing workers. This process is aimed at putting in place employees who have the ability to perform at high level and who demonstrate in their line of duty, commitment to the company. Internal recruitment and selection takes place to give employees of the company a chance to work in the departments that they feel are competent in. This comes about after employees have furthered their educational knowledge or through experience in the company. It is usually cheaper than outside recruitment as positions are announced by word of mouth. In many cases, this is the first and most preferred method of recruitment for many companies (Gareth, 2007). Outside recruitment occurs when the company does not find potential candidates among its employees. This is usually done through advertisement in the media. It is more expensive than within the company recruitment. The effectiveness and performance of a company is largely determined by its workforce whose skills, knowledge and aptitudes are in turn determined by the recruitment and selection process. It is from this knowledge and skills that their future abilities that will benefit the company are demonstrated. If the process is done in an effective manner, undesirable costs are avoided. These costs may range from high staff turnover, dissatisfied customers and poor performance. In cases where recruitment and selection is not done effectively, the company does not evidence positive growth. This is because the workforce will be lacking in required skills and knowledge to perform their duties in operations. In such a situation, the company has two options; to fire and recruit afresh or to train the already workers (Nankervis & Morrissey, 2004). Both have financial implications to a company. In the first case, the recruitment process is costly with regard to advertisement logistics. It is also time consuming since the managerial staff has to sit and select potential candidates. In the second instance training programs are costly. This does not imply that they must be avoided. Rather, they must be put in place only to enhance skills of employees with regard to company operations efficiency. Pars Food Limited has strategic goals that are important in enhancing its performance. One such objective is the Total Quality Management (TQM) culture. This involves the process of continuous quality improvement. Such implementation is meant to involve the management, employees and in the achievement of quality as well as customer satisfaction. Another objective of the company lies in getting accredited by ISO9001 which is the standard measure of service and production. With the two strategies in mind, there is need for the Human Resource department to reassess its current practices and procedures. The first step lies in the recruitment and selection of operational consultants for the implementation of the two objectives. The HR department has conducted internal interviews and has plans to advertising outside the company. This has an impact on the financial status of the company. If internal interviews prove successful, then Pals Food Limited will have saved costs of outside recruitment and selection. It is also a sure way of achieving a lean and agile operation which translates to cost effectiveness and increased sales. If candidates are sought outside, the company has a chance of adding to its current workforce candidates with fresh skills and knowledge. This will benefit the company because the new ideas will be of great importance with regard to revamping the specific department. The training courses designed for the implementation of TQM and ISO9001 are meant to bring efficiency and effectiveness of employees. The HR department also plans to have food hygiene and customer service training for different departments. The impact on the financial department is that these courses are costly. During the initial phase of the training, the company will increase its expenditure to include the training costs. In addition, time spent training these employees will be at the expenses of different operations in the company. However, during subsequent phases, the company is bound to benefit financially. Firstly, accreditation to ISO9001 will help popularize the company which will help it increase its market share. Food hygiene training will ensure that the company economizes in some operations during production. This will increase production and reduce its costs. Customer service training will ensure that employees are equipped with skills of handling clientele. This will in turn ensure return customers. The result is an increase in sales which is a boost to the company’s financial earnings. On the other hand, Pars Food Limited seeks to recruit about seventy five new employees. With effective methods of recruitment, skilled and knowledgeable employees will be added to the company. This means that with further training on their specific department of operations, profits will increase. This in turn will enable the company to meet its financial obligations which include purchase of new equipment and machinery as well as new piece of land. This is a sure way of avoiding redundancies. References Bhurian, S., Menguc, B. & Bell, S. (2007). “Just entrepreneurial enough: The moderating effect of entrepreneurship on the relationship between market orientation and performance”. Journal of Business, 58(1). 9-17. Brooksbank, J. (2010).Operations strategy. New York, NY: Pearson Education Inc. Compton, R (2009). Recruitment and selection. New York: NY, Sage Publishing. Gareth, R. (2007) Recruitment and selection: A contemporary approach. Oxford, UK: Oxford University Press. Harnick, J. (2011). Assessment methods in recruitment, selection and performance. UpperSaddle River, NJ: Pearson Education Inc. Nankervis, A. & Morrissey, B. (2004).Effective recruitment and selection practices Phelan, S & Ferreia M. (2002). The first twenty years of the strategic management. strategic Management Journal 23, (1)1161 -1168. Silvestro, R. & Johnson, R. (2001). Strategic marketing planning: A state of the art Review.Marketing Intelieence and Planning, 7 (3)34-42. Thompson, A. & Strickland, A. (2008). Strategic management: Concept and cases. New York, NY: McGraw-Hill. Wood, R. & Payne, T. (2008). Competency-based recruitment and selection. Hoboken, NJ: Wiley & Sons. Read More