Operation management Essay Example | Topics and Well Written Essays - 3000 words

Operation management - Essay Example Operation function is vital in every organization because of its core duty of being involved in production of both products and services (Michael 2003). Process management can also be defined in terms of management where the mangers receive more experience on managing various types of operations in an organization. Operational and process management is applicable in industries because every function in an industry requires a process for it to be accomplished. Process perspective in business The process perspective is crucial in the management of any business. The process perspective is used by organizations to develop a model where business is analyzed at various levels. Processes are modeled to appropriately serve the business purpose. It involves shaping the processes to ensure customers’ needs are satisfied (Michael 2003). Strategic impact in operations and process management Operations and process management can be very crucial in the success of a business in terms of reve nues, the capacity, investment and the cost incurred in the process of doing business. All the parameters that contribute a success or failure in business should all be under control for a business to be having stability and the ability to be determining its future. The operations function of a business should be laid down to enable a future orientation that will hold. Management of process Business objectives and the process are different and are focused in a certain way. Basically the operations of different businesses may be different thus the management for each of them would just be different according to their capacities. A process with very high capacity should be flexible enough to handle the challenges posed by the complexity of the system. While managing businesses of varied processes, the customer’s perception of the activities should be treated with the utmost sensitivity. Therefore managing the customer’s perception would be vital in realizing a proper pro cess is in place. A combination of various processes and low level of variety would result in low cost. In managing these activities, it is important to consider designing the operation, the processes and services, planning and delivery of the process. Also more important in consideration is the process of managing the performance. Operations Strategy A strategy formation has four major steps to follow; they include definition of the tasks, assessment of the competences, determination of the orders in terms of the winners and the qualifiers and the firm positioning. The priorities for competitive approach include the costing, consideration of the quality, the speed of implementing the process and the process flexibility. Reducing the cost of operations includes installation of automated machines which in turn improve delivery of activities in various processes. Basically such improvements are implemented in the inventory, and record-keeping. Quality is basically based on the custome rs’ satisfaction which implies that every employee is empowered to deliver good services to the customers and for the industries as the manufacturing, the goods produced are ought to be of high quality (Knapp 2010). This can be achieved a frequent check in through a report tracking in the organization. Each process may be evaluated in terms of its quality. Time of delivery, variety of products and services would be crucial in serving the customers interest and diversity. They will have the choice of

Events surrounding Royal Bank of Scotland acquisition of NatWest Dissertation

Events surrounding Royal Bank of Scotland acquisition of NatWest - Dissertation Example The analysis of the paper shows that the motives behind mergers and acquisitions of NatWest or other business consolidation across Europe are the synergies and various integrative benefits that can be derived in banking industry. Major impact of macroeconomic factors motivating such practices were domestic deregulation, lower interests rates leading to sliding interest income margin and rising growth. Moreover, the 1990s financial dominance was shifted from Eastern financial institutions to the Western banks and technological development especially in terms of IT, changes in corporate thinking and increasing importance of corporate governance practices and shareholder wealth creation were other major factors that motivated the banks to look for possible acquisitions. Therefore, costs reduction, revenue augmentation and NatWest’s wide presence attracted a much smaller banks like RBS to bid and acquire Britain’s one of the oldest banking institutions. The analysis of RBS annual reports provides valuable insight in to whether this has increased RBS’ shareholders’ wealth. The results show that there have been more than expected revenues and costs savings in post acquisition period while the net interest income, total income, and EPS have all increased in absolute terms. However, the comparison of RBS and NatWest with the market returns shows that no value is created for the shareholders in post acquisition period. The reason could have been that RBS continued its acquisition spree without consideration of shareholders, which shows poor governance practices in RBS Group.... Drivers of NatWest Acquisition 13 2.1.5 Structure of Global Banking Industry in 1990s 15 2.1.6 Impetus of Mergers in UK Banking Industry 16 2.1.7 Impact of Consolidation on Firms’ Efficiency 20 3. Chapter 3 22 3.1 Critical Evaluation and Analysis 22 4. Chapter 4 35 4.1 Conclusion and Recommendation 35 Reference List 37 Bibliography 44 1. Chapter 1 1.1 Project Background & Introduction The expansion of world trade as evident from financial and economic globalisation has provided substantial benefits to the countries. Much of these benefits have been a result of the mergers and acquisition activities that has taken place around the world in every sector. Improvement in cost to income ratio is one of the major reasons for merger and acquisition. At the same time, acquisition has another broad aspect. This helps in increasing market share and reducing competition significantly, which enhance firm’s presence and bargaining power over not only consumers but also suppliers. Th is paper is a critical analysis of one of these acquisitions that took place between RBS and NatWest at the turn of 21st century in UK. This project is outlined in four sections. The first section provides the research aim and objectives. The second section is the literature review, which encompasses the definitions of merger and acquisition, background of NatWest and RBS, drivers of NatWest acquisition, structure of global banking industry, and the impetus for consolidation in general and in UK banking industry and finally, the impact such consolidation has had on the structure and efficiency of the merged banks. The third section is the critical evaluation of the theories in the light of the acquisition’s effects on both the banks. And lastly, the fourth section concludes the paper. 1.2 Project