What is Operation Management?

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Operation management is one of the three key strategic areas needed to run a company, the other two being marketing and finance. Operation management is an administrative area which deals in managing the production of goods and services in a company.

Operation management is responsible for efficiently managing the resources at hand to convert them into sellable goods and services. The core activities handled under operation management are planning, organizing, implementing and controlling the processes of production. The operation management involves handling resources such as people, equipment, technology and information, etc. to get minimum profit.

Operation management plays a central role in any company whether it is involved in manufacturing goods or providing services. For example, in a manufacturing company like a cosmetic company, operation management handles reproduction of goods that is cosmetics while in service providing company like cab services, operation managements focuses on providing services.

Two types of operations                                                     

Operation management includes two types of operations, one, strategic in nature and other, tactical. Strategic operations have long term consequences and often need great deal of finance and resources for their execution. For example decisions related to location, technology, labor and equipment.

Tactical operations have short to medium term effect on a company and involve lesser degree of finance and resources for execution. These are also flexible in nature as they can be changed or modified without adverse reactions due to such changes. For example decisions related to workforce schedule.

Two key areas

Thetwo key areasassociated with operations management are logistics and supply chain management. Operation management has great affinity with both these areas of business practices. Logistics is essential for the careful, considered and cost effective use of resources whileunderstanding of supply chain management is required to meet the demands of client.

An MBA in operation management or logistics and supply chain management equips students with the required knowledge and skillset to understand and get the grip of intricate complexities of business.

The Institute of Business Studies and Research is a business school located in Maharashtra which focuses on providing world class education in various business programs. IBSAR offers courses on specific areas of business management to train students in best way possible.

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Branding a service vs. Branding a product

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Branding is a very trending thing in the business world and we all are very much aware of the impact that it has on sale of the products and services. Well, it is worth noticing that branding a service is quite different from branding a product and there are a number of factors behind this. Read on to know more about it:

Experts from IBSAR say that the first thing that must be understood is that products are well defined physical items that can be evaluated before you choose to buy them. You can actually hold a product in your hand in order to examine it properly and on being fully satisfied with its properties you can buy it. On the other side, talking about services it can be said that services are intangible and are very personal. Service is an experience that the customer buys from you. So it is important to understand that while buying a service that customer puts a lot of trust in you. So, on the basis of this explanation the difference between branding a product and branding a service can be summarized through following points:

  • The basic reason is that products are made where services are delivered
  • Products are used where services are experienced
  • Products are touchable where services are emotional

Experts from IBSAR say that when it is about the branding of a product then there are special efforts made in order to beautify the product so that it can appeal to the maximum number of people. Moreover, the uses of the product are highlighted and the packaging of the product is also designed with a lot of creativity and thought. In simpler words it can be said that branding of a product includes everything that is required to make the product look irresistible in terms of looks and use.

When it comes to branding of a service then the sole motive is to win the trust of the customers. As it has been said that services can neither be seen nor be touched but they can only be experienced. Therefore the branding of a service includes coming up with strategies to make the service look useful and beneficial for the customers.

Ensure Excellent Customer Services with these Tips

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Customer service has been a thriving area since quite some time in business sector. Apparently, it is being said that the cost of acquiring a new customer is five times than that of retaining an existing one. There is a fundamental golden rule for good customer service that if you were the customer, you would have want to meet the same expectations. Rendering good customer service is often a matter of common sense but as it is well-known that common sense is not so common these days and entrepreneurs do not fall into this ambit either.

Hence, experts from IBSAR are telling some tips to deliver excellent customer service:

  • Great customer service begins with you. If you are being apathetic towards your customers, your employees will mimic it. In contrast, if you are enthusiastic and courteous, your troops are more likely to be so as well.
  • Emphasize on building long-term relationships with your customers. Short-term sales incentives can sometimes undermine long-term customer satisfaction. Refrain from that by building short-term programs which reward broader improvements.
  • Involve your customers in the events organized by company and make them feel that they are an indispensable part of the organization.
  • The little things make huge difference. Small gestures which anticipate customers’ needs or attend to their comforts, for instance offering a glass of cold water on a sweltering day, go a long way towards winning them over.
  • Communication is the most significant element in retaining customers. A personalized “Thank you” note or even a follow-up phone call a month or later makes your customers feel that you value them.
  • In retail businesses, loyalty programs or rewards cards drive repeat business as well as help you gather information about interests of the customers by monitoring what they are buying. Appreciate the presence of your customers.
  • Resolve the disputes of your customers without any delay. It’s already bad enough if your customer is unhappy with your product or service. But if your attempt to redress the problem is not encouraging enough, it is only going to make the situation worse.

IBSAR Mumbai is one of the best business schools which offers MBA in various disciplines.