Impacts of the Business Environment on Organizational Operations

The Fair Company has to operate within a framework of specific environmental factors that will promote effectual relationships between the firm and its surroundings. Based on the above information, there are two major effects of business environment on the Fair Company’s operations. To illustrate, this organization will be greatly affected by economic-based factors. In consideration of unfair economy, this firm may experience lots of challenges while trying to survive. For instance, the bad financial system will subject the organizational members to unemployment or make them lack enough money to cater for their needs. Similarly, a poor economy can contribute to high-interest rates, a thing that will, in turn, discourage clients from spending, hence, causing a reduction in organizational sales (Eruemegbe, 2015, p.6). On the other hand, even in the great economy, the consumer may lack enough money, thereby, indicating that the company will not be able to run its operations such as production in an effective manner. In the illustration, the economic changes can be accompanied by reduced resources, therefore, affecting the quality of organizational products as well as the level of advertisement. Secondly, the contribution of the stakeholders associated with the company can also influence its operations. Conversely, the members playing various roles in this organization normally have a legitimate share of the company’s output. In confirmatory, the institutional subscribers may involve suppliers, consumers, marketers, employees, and the community in general (Eruemegbe, 2015, p.11). Based on the above information, it is clear that the institutional functioning will be influenced by the expectation of the stakeholders, hence, being forced to come up with the strategies that align its operations with the subscribers’ needs. 

The Way Cost, Delivery, Innovation, Flexibility, and Quality Relate within the Organization Based on Institutional Operations’ Strategy

Fair Company competes with its opponents in the marketplace through majoring on competitive priorities such as quality, cost, innovation, flexibility, and delivery. To be specific, the quality revolves around the reliability of product performance, environmental concern, and certification (Stohm and Berglund, 2015, p.32). Owing to the above information, this company is supposed to focus on quality by utilizing advanced technology, and convenient delivery system as well as using flexible tactics that cut the institutional costs and expenses. Moreover, the company is supposed to consider the innovative factor in all its operation. In this case, the management should ensure that the firm is utilizing the modern scientific invention in order to be able to make timely delivery, manufacture a quality product, reduce operational costs, and improve the company’s flexibility while transacting various business activities (Stohm and Berglund, 2015, p.30). On the same note, flexibility denotes the firm’s capability to deploy or re-arrange resources while responding to transformation regarding predetermined agreements that are instituted for the sake of the clients. 

Furthermore, the flexibility, delivery, cost, and quality also seem to relate to each other as far as organizational operations are concerned. Indeed, Fair Company utilizes the above competitive priorities to outweigh its opponents within the same sector. For example, this company can offer high-quality products and services with fewer defects, hence, managing to compete with its rivals through cost leadership plan through minimizing manufacturing cost and set-up time (Stohm and Berglund, 2015, p.34).  Conversely, the high-quality products and services will enhance the client’s loyalty to the brand, hence, aiding the company to distinguish itself from other firms within different segments of the market. Besides, flexibility refers to a multidimensional construct operating as an economical tool used by the firm to manage capacity and demand during the process of responding to transformation concerning clients’ expectations and needs. 

In addition, the flexibility can have a greater implication on Fair Company. To illustrate, elasticity is a factor that determines the company’s capability to handle changes relating to the delivery schedule of the organizational products and services (Stohm and Berglund, 2015, p.34). Moreover, the flexibility is also necessary during the introduction of new products or parts, hence, it enhances that company’s easiness to adjust its duties, customize its goods and services as well as tackling product mix changes in an effective and efficient manner (Stohm and Berglund, 2015, p.37). Based on the above information, it can be argued that the flexibility, cost, quality, innovation, and delivery plays a vital role during the process of creating, developing and sustaining the Fair Company’s competitive advantage. 

Fig.1 (Stohm and Berglund, 2015, p.7)

According to figure, it is clear that priorities such as cost, delivery, quality, flexibility and innovation are suitable for bringing about improvement as well as provided the company with capability of attaining higher performance (Stohm and Berglund, 2015, p.7).

Task 1.2

Assessment of the Design and Process Layout Systems for Facilitating Attainment of the Operations Strategy

There are major two design and process layout systems that will enhance Fair Company’s capability to attain the operations strategy. First, the ease of future change or expansion is a factor that will aid this company to easily adjust or expand its operations in order to be able to meet the varying production needs. At this point, the firm should have a facility design that enables the organizational management to run its activities in an effective manner. Moreover, the utilized facility must also clearly identify the raw materials entering into the firm as well as indicating the finished products leaving at the other end (Bonney, 2000, 200).  Second, this company should have layout systems that ease support and communication. At this point, it is advisable to lay facilities that will enhance communication within different departments as well as promoting the interactions between the clients and vendors (Stohm and Berglund, 2015, p.42). In relation to the above information, organizational should be located in points that aid the management to monitor the operating areas in an effective manner (Stohm and Berglund, 2015, p.20). Correspondingly, the above two design layout must be used in high-volume repetitive tasks, whereas the process layout should be applied to promote the production of various goods and services. 

Importance of Operation Planning and Control for Organizations as well as their Limitations and Advantages

Operation control and planning are normally carried out based on the company’s design since after designing goods and services, there is need to go an extra mile of producing them. In relation to the above information, control and planning focus on ascertaining that daily production practices are successful and effective. Moreover, the above practices play a role in facilitating the attainment of continuous production of goods and services, hence, facilitating regular distributions of products and services to the intended clients (Bonney, 2000, p.190). Furthermore, planning and controlling are essential for improving the entire productivity since it offers a suitable method for evaluating manager and workers’ efficiency. In addition, the above activities are helpful in handling an issue such as maintenance, operations, and design of the system utilized during the process of producing institutional goods and services (Bonney, 2000, p.198). Otherwise, the limitations of controlling and planning can only facilitate the reduction of uncertainties and they cannot necessarily bring about advancement within the organization. 

Explanation and Evaluation of Inventory Management and its Application within the Organization

Inventory management refers to the process of monitoring stock as well as records and it involves aspects such as overseeing and controlling ordering, storage and regulation of the sale products. The above terminology can be taken as a continuous process of supervising and administration of the goods that the firm will utilize during the production of items intended to be sold (Rajan and Francis, 2013, p.1). However, the notion of keeping inventory at a higher level can contribute to the repositioning of idle capital whereas when it is placed at the lower point it can lead to cost interruptions. Otherwise, the inventory is applicable to optimize the capital investment and order level (Rajan and Francis, 2013, p.2).  On the other hand, the inventory is useful in determining the stock items that need to be retained within the organization. In general, inventory management is essential for answering the questions regarding storage and distribution of data from different stores (Rajan and Francis, 2013, p.4). In relation to the above information, it is clear that inventory management is useful in promoting organizational growth and development. 

Fig. 2 (Rajan and Francis, 2013, p.5)

Fig. 2 shows the distribution of data as well as the control of information within an organization. In this case, the needed data is retrieved from the storage through the use data inventory principle and being delivered to different servers where the intended users can access them in a convenient manner (Rajan and Francis, 2013, p.5). 

Explanation and Evaluation of Lean Operations and its Application within an Organization

Lean operations refer to an aspect of running a company through focusing on satisfying clients whereas utilizing the least resources possible. The lean operations play a role in creating consumer value as well as eliminating waste, hence, it focuses on promoting organizational efficiency (Stohm and Berglund, 2015, p.53). The above concept seems to act as a revolution that aims at improving production capacity by facilitating the adoption of measures that help the company to respond to the existing crises (Vieira, p.3). Furthermore, lean operations are used in manufacturing firms as a tool for eliminating waste, minimizing costs, maintaining high-quality production, and increasing productivity (Vieira, p.1). Indeed, the lean operations help the company to increase its production, a thing that affects the organizational profits in a positive manner. 

Explanation and Evaluation of Quality Management and Discussion of its Application in an Organization

The quality management stands for an act of overseeing the entire tasks and activities required to maintain the desired excellence level. To illustrate, this concept revolves around the identification of quality policy, establishment, and implementation of quality assurance and strategizing as well as dealing with matters concerning quality control and improvement (Bonney, 2000, p. 201). Otherwise, the quality management is used in an organization to ascertain that the firm is capable of utilizing eminence activities, technology and resources in all its operations rather than focusing on the final product only (Stohm and Berglund, 2015, p.32). Basically, the quality management offers the principles for satisfying customer need and ascertain continuous improvement within the firm. 

Discussion of 2 Issues and 2 Trends in Global Supply Chain Management

The global supply-chain management refers to the distribution of products and services via the global network of transnational firms with an aim of minimizing waste and maximizing profits. However, there are two major issues affecting the effectual progress of the above activity (Stohm and Berglund, 2015, p.42). First, the individuals involved in this movement encounter problem while trying to stipulate unpredictable matters such as changes affecting economic systems. Moreover, it has been tricky for the company to monitor the financial stability and business practices of the all the entities and organizations present in a given market (Stohm and Berglund, 2015, p.44). On the other hand, there are two notable trending taking part in the management of the global supply chain that is, sustaining company’s flexibility and the establishment of using pricing strategy to outweigh the competitors (Stohm and Berglund, 2015, p.32). To be specific, different organization are always flexible to accommodate changes experienced during the financial crisis whereas others keep on adjusting their prices with an aim of attracting more clients.  

References

Bonney, M., 2000. Reflections on production planning and control (PPC). Gestão & produção, 7(3), pp.181-207.

Eruemegbe, G.O., 2015. Impact of business environment on organization performance in Nigeria study of Union Bank of Nigeria. European Scientific Journal, ESJ, 11(10), pp.1-17. 

Rajan, R. and Francis, F.S., 2013. Application of inventory management principles for efficient data placement in storage networks. arXiv preprint arXiv:1308.1471, pp.1-7. 

Stohm, M. and Berglund, S., 2015. Critical competitive priorities and capabilities in a high cost environment, pp.1-92. 

Vieira, L.F.S., Application of lean manufacturing methodologies to improve productivity: Fedima Tyres case study. Portugal, luissilvavieira@ gmail. Com, pp. 1-7.