The Four Vs Operational Process Marketing Essay

An procedure has been recognized by scholars to include all activities mixed up in development of goods and/or services (Schroeder, 2000; Outdoors, 1989; Slack et al, 2007). Scholars similarly vary less on the opinion by recommending that although procedures might take different form(s) between organisations, its request involves a series of input; transformation of the source; and the creation/delivery of the result. Operational activities require a coordinated approach and management such that the 'transformation process' of input to outcome, produces a competent and effective service or product that will generate value(Schroeder 2000; Slack et al, 2007).

The context of Level in functions management identifies the size, rate or magnitude of efficiency of an organisation's products. It really is argued by scholars that the volume of the expected productivity from an operation would usually shape or determine the procedure carry out (Slack et al, 2008). The idea of volume will suggest that how big is output of company would determine the operational process of such organisation such that organisations with high volume of output, organisations generally have systematic and repetitive (standardised) operational processes which increases speed of the operation and in turn reduces unit cost of creation of goods/services as observed in large scale development/services exercises. However, in relatively small production/service outfits, there is usually less standardisation and higher overall flexibility in the creation process. (Kanigel, 1999; Slack et al, 2008)

Scholars have discovered that the type of operations fluctuate across establishments and typically within industries (Outdoors, 1989; Slack et al, 2007). This is epitomised by sectors including the manufacturing, funding and hospitality establishments as determined by (Slack et al, 2007). However the style of the 4Vs might suggest a rigid series of high size- low variety - low variation in demand - low visibility, (or the reverse for low volume level procedures), it is not often the case in today's global market environment as firm try an effective operational process blend to ensure efficiency and meet customers' needs. (Slack et al, 2007; Kotler et al, 2009)

The line attracted over the arrows in fig 7 above indicates the process characteristics at Standard Motors: As a global automobile company, with products sales in excess of 8. 35 million together in 2008 (Standard Motors, 2009: online) the quantity of its production is high. The business has over sixty four different models of vehicles which range from coupes, sedans, pickup trucks, vans, SUV, convertible and crossovers. The various models made available from the business is an assortment designed to give customers options to choose from (satisfying customer needs) in order to supercharge sales (an activity of value creation for the business) (Kotler et al, 2009). The vehicles are stated in the companies' making plants located in several region of the world (Basic Motors, 2010: online) with the development process concealed from the customer until the result (auto) is ready for utilisation implying low presence. With plant capacity some worthwhile fixed because of the machinery and equipment and resolved cost scheduled to workforce, fluctuating demand impacts the company. Although development can be reduced in terms of quantity of units of vehicles produced over an interval to cope with variation in demand, the resolved cost incurable would continue to be constant.

The enquiry in to the operational techniques of General motors and Zenvo motor vehicle indicate differing functional pattern in each organisation. While Basic Motors has a high Volume, middle variety, low variant, low visibility profile, Zenvo motor vehicle on the other hand has a minimal volume level, low variety, high deviation and low presence. The Power and weaknesses of individual operational procedures is highlighted below:

For Basic Motors although high level brings about a minimal unit cost of products, the necessary systemization of the production process requires a huge capital outlay. Furthermore because of the size of the business and its creation system, there is a huge limit to the versatility of their operation to varying demand. So a large deviation in demand would inflict the business with higher per device cost of product that may even lead to financial deficit for the company.

For Zenvo automotive, although the low volume of its functions requires less capital outlay, the production process means that the unit cost of producing each vehicle will remain high. With just one single model on offer, there is almost no variety as the solo model is the company's standardized product. This will limit the organization's potential to attract a wide range of customers. Nonetheless it can be argued that possibly the company is targeting a niche market (Kotler et al, 2009) nonetheless with little or no variety available, the company's ability to match differing customer need is limited.

The determined deficiencies of both companies' operational processes inform the basis of the suggested optimum solution; in organisations which take part in high level of operation, there's need to design flexibility into their system to help in the version of procedures to varying customer needs and demand factors. Large organisations should endeavour to lessen the time difference between creation and utilization by giving some level of presence through customer participation in development process especially product design. Organisations which however engage in low level of operational activities need to device means of reducing product cost of producing goods or delivering service.

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