Integrated Business Management Contents Executive summary 2 Introduction 3 Question a 3 Question b 4 Question c 5 Volume: 7 Variation in Demand: 7 Conclusion 8 References 9 Executive summary It is very important for each and every organization to evaluate their operational procedures. Here with the help of this study operational procedures of Hagen Style will be discussed. This study will include answers of three questions. Introduction Hagen Style is a German based company. The company has very good operational system. It is one of the most successful direct marketing companies in the Europe.
It is a 40 years old company. Over the years the organization has improved its direct marketing very well. The organization has very good operational strategies as far as direct marketing and distributions are concerned. But with the changing business scenario, the organization is facing some serious issues regarding their traditional ways of selling products. But the top level management of the organization is very confident about their operation systems. Here in this case study three very important and suitable questions will help to analyze the company’s operations management and its difficulties. Question a Operations management is very important in the company because the company has very high dependency on the direct marketing.
Over the years the organization has done their businesses on the basis of their highly efficient operational systems. The organization has very elaborate business operation. Each and every business operation is connected with each other. It is not possible for Hagen Style to overlook single operational steps. Each and every operational step has direct impact on the end results. From order receiving to order delivery is completed through different steps.
In between company’s product packing are mostly automated. It is very important for the company to mange those automatic steps related with packing. Operations management will help the organization to perform their different works more simple and effective ways. It will help the organization to improve their lead time. The company has very complex operational procedures. Operations management will help the organization in terms cost cutting. Proper operational management will save considerable money for the organization (Cunningham, and Harney, 2012). Operations management will help the organization to face different modern challenges in the business.
Proper Operations management will help the company to cop up with different modern business processes like catalogue marketing, super market business concepts and discounting stores. The company has very good operating procedures for large volume business. In case of small volume and customized business the company is not very comfortable. According to company’s vice president the company is not at all ready for small volume and more customized business. Operations management can help them in terms of this issue (Sekhar, 2009). Question b There are lots of reasons which are making the company a successful business organization.
Over the years the company has managed its business operation very professionally. The organization is having great industry position as far as different operations are concerned. Hagen Style has very low cost per order. It is a very significant reason for which the company is very successful. The organization has automated packaging systems. Automated packaging system has reduced its packaging errors significantly. As far as packaging errors are concerned the company is having a superior position in the industry. It is also a very valid reason for the organization’s success.
Apart from automated packaging system the organization has very well levelling and distribution process. Modern distribution process has helped the organization to reduce their time. With the help of appropriate distribution the company has able to reduce time span in between order receiving and order dispatching. It is also a very significant reason for Hagen Style to get success (Hill and Jones, 2009). The company has taken direct door to door marketing to a different level. The organization has two main distribution centres.
One is in Dortmund and other is in nearby Munich. Both these two distribution centres are very effective. These two distribution centres are the heart of company’s total distributions. Efficient and systematic operational process from these two distribution centres is also a very important reason for the success story of Hagen Style (Olve, 2006). Question c Here in this answer operation process of Hagen style will be analyzed on the basis of 4 V’s of the company. Four V’s are Volume, Visibility, Variety, and Variation in Demand. Volume: The company has very high volume dimension (Jespersen and Skjott-Larsen, 2005).
As the company has very high volume dimension so it has a characteristic of great repeatability in day to day process. It cause for high capital investments from the side of the company. It shows that the company has very less unit cost (Alan, Phil and Peter, 2014). The company is comfortable with large scale business. Its operational process is not suitable for small or customized businesses (Michael and Nigel, 2003). Visibility: Visibility dimension for the organization is low. Because there is no such systems are present in the organization through which customers can keep track on the status of their given orders.
Here sometimes representatives of the company give their orders with the help of internet and most of the customers are not familiar with internet (Mahadevan, 2009). Variety: Variety dimension of Hagen Style is low. Here in this case the organization has very well defined operating procedures (Mahadevan, 2010). And all these procedures are generally followed in a very routine wise. Operation procedures of the company are very much structured and standardize. Variation in Demand: The variation in demand has many significant implications which can be understand from the organizations characteristics.
The organization has low variation in demand dimension (Pearce, 2009). It has very low changing capacity (Reuvid, 2012). They are very good in what they are currently doing. But they are facing serious problems in distribution through new channels. According to the vice president of the company the company’s IT systems, dispatch procedures and packing lines are not prepared for any changes (Fitzroy and Herbert, 2007). Conclusion Modern business is ever-changing. Change is the only constant thing in this world.
In this case study Hagen Style is a very successful direct marketing company. The company is experiencing great success in terms their present business operations. The organization has very well structured business operational processes. But the organization is very little prepared to face any changes in their operational process. The present distribution system of the organization is very good but it has some issues related with new distribution channels. The company is very well equipped for large volume businesses but it has very limited capacity in terms of customize catalogue business.
References Alan, R., Phil, C. and Peter, B. 2014. The Handbook of Logistics and Distribution Management: Understanding the Supply Chain. New York: Kogan Page Publishers. Cunningham, J. and Harney, B. 2012. Strategy and Strategists. London: Oxford University Press. Fitzroy, P. and Herbert, J. M. 2007. Strategic Management: Creating Value in a Turbulent World. New York: John Wiley & Sons. Hill, C. and Jones, G. R. 2009. Strategic Management Theory: An Integrated Approach. London: Cengage Learning. Jespersen, B. D. and Skjott-Larsen, T. 2005. Supply Chain Management: In Theory and Practice. Copenhagen: Copenhagen Business School Press DK. Mahadevan, B.
2009. Operation Management: Theory and Practice. New Delhi: Pearson Education India. Mahadevan, B. 2010. Operations Management: Theory and Practice. New Delhi: Pearson Education India. Michael, L. and Nigel, S. 2003. Operations Management: Critical Perspectives on Business and Management, Volume 4. New York: Taylor & Francis. Olve. 2006. Balanced scorecard. London: John Wiley & Sons. Pearce, J., 2009. Strategic Management. New Delhi: Tata McGraw-Hill Education. Reuvid, J. 2012. Managing Business Risk: A Practical Guide to Protecting Your Business. New York: Kogan Page Publishers. Sekhar, G. V. S. 2009. Business Policy And Strategic Management.
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