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Dane Red

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Essay 4- Assess the relationship between operations and other key business functions in 2 actual businesses.

Introduction

Operations is the business activities that create value to inputs by transforming them into outputs through the production. Hence the relationship of operations and other key business functions is vital for the success and longevity of a business. This is shown through the important relationships of operations with marketing and human resources. This seen through how McDonald’s (the world’s leading food service organisation) and Apple (which designs, manufactures, and markets smartphones, tablets, personal computers, and wearable devices) handle their operation relationships.

Operations and Marketing

Marketing is the activity or business of promoting and selling products and services, including market research and advertising. The effect of marketing and operations is that they influence the volume of a product as well as the amount of inputs required to produce products in a business. As a result, affecting production costs. The implications of this is that marketing and operations affects the total output of products for a business depending on the sales of a product and the efficiency and speed of the transformation process.

McDonalds and Apple demonstrate the impacts of the marketing and operations relationship. In 2013 Apple had to discontinue the production of the iPhone 5 due to quality issues as well as receiving negative publicity as a result. Furthermore McDonald’s in 2021 removed its McVeggie Burger due to lack of sales. This is important as this demonstrates the impact marketing and operations relationship has on a business. As through the sales and feedback from their products it affected both businesses’ production and volume of products. Therefore McDonalds and Apple demonstrate the importance of the marketing and operations relationship and how it can affect a business’s production of products and sales.

Operations and Human resources

Human resources is the personnel of a business or organisation, regarded as a significant asset in terms of skills and abilities. The effect of the operations and human resource relationship is that operations provides context as to the amount of human resources required. As a result, influence the production process of businesses. The implications of this is that operations and human resources are connected and influence the production process and the cost and amount of human resources.

McDonalds and Apple demonstrate the importance of this relationship. For Apple, in 2014 they had to employ 100000 factory staff to ensure they could meet production targets for the launch of iPhone 6 and iPhone 6 Plus. Furthermore McDonald’s has planned for the development of ‘On the Go’ stores. This is important as both businesses adjusted their human resources to match production. Apple had to increase its human resources to meet the increasing size of production. McDonald’s reduced human resources required in their ‘On the Go’ stores to improve the quality of their operations. Therefore, the relationship between operations and human resources is important to businesses as it influences the size and quality of human resources and operations as evidenced by McDonald’s and Apple.

Conclusion

In conclusion, the relationship operations and the other key business functions are vital to the longevity and success for businesses. Hence made evident by how the relationship of operations and marketing, and human resources impacting the performance of McDonald’s and Apple.
 

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