Asses the importance of production with the service industries

Production is important within service industries as well. Although businesses such as bank, insurance companies and internet service providers do not supply physical goods that can be seen or held, they do have to organise their resources to meet customers demands as completely as possible.

One of the most important issues in production is quality. Marks and Spencer compete just as strongly on the quality of their goods and service as they do on price .For example; it is vital for washing machine manufacturer to produce a high-quality product. If the machine is not reliable or does not have a wide range of functions, customers are most likely to purchase a competitor’s product. Exactly the same demands are placed on a bank. It has to offer customers efficient and high-quality financial services, such as cheap banking, widely available cash machine and a range of associated financial products such as insurance, pension and life assurance.

Marks and Spencer rely on a reputation for quality to maintain and increase their market share. Dissatisfied customers are often lost forever, and they may persuade other consumers not to purchase from a company that had supplied an unsatisfactory products .As UK markets become more open to competition from foreign producers, quality is likely to become an even more important factor in winning business.

Another consideration for Marks and Spencer is product differentiation. Increasingly customers expect to buy products that meet their exact needs. This complicates the production for M&S.M&S is moving away from the mass production of standards products and adopting a more complex process of production to achieve a greater range of differentiated products.

Links with other departments

Although production has links with a number of other departments within Marks and Spencer, some relationships are particularly critical .The finance department has to make sure that production is carried out with agreed cost .If production cost escalate then profits may be eroded. This relationship between finance and production must therefore be strong and effective if Marks and Spencer is to meet its profit objectives.

The relation ship between production and marketing is vital for Marks and Spencer. Marketing can provide production with crucial information and what customers actually want. The marketing department can liase with production in testing any new products on a sample customers and feedback opinions to ensure the final product is acceptable to consumers. More market research and closer links between production and marketing may have avoided this situation. Communication between these two departments or functions can also assist businesses in setting price to make sure a profit is earned.

Achieving objectives

Profit maximisation –by using resources –people, machinery and production space –as efficiently as possible to make Marks and Spencer competitive in the markets in which it trades
Producing high quality products-by monitoring quality to ensure that finished products meet the quality standards expected by customers.

The human resources function

Marks and Spencer’s human resources management is now taking on the role previously carried out by personnel management. There is a very clear distinction between personnel management and human resources management. Personnel management considers the task involved in managing people –recruitment, selection and so forth-as separate elements .It does not take into account how these elements can be combine to achieve Marks and Spencer objectives. The personnel management approach makes decisions relating to recruitment, training and pay system independently, without considering the impact the individual decisions have on each aspects of management and the achievement of corporate objectives.

In contrast, human resource management (HRM) elevates the effective use of a Marks and Spencer’s labour force to an issue to be considered by senior mangers as an essential element of the Marks and Spencer’s strategy.

Marks and Spencer Core Purpose and Values define the way we do business, how Marks and Spencer treat their customers, their people, each other and their suppliers. They help to define Marks and Spencer responsibility to the communities where Marks and Spencer business strategy continues to deliver strong results. Marks and Spencer philosophy of ‘making quality accessible to all’ underpins these wide-ranging responsibilities.

This approach has raised the profile (and salaries) of those employed in human resource management.

The human resources function engages in a number of activities to ensure employees are utilised effectively. These activities are carried out with the aim of contributing to the achievements of the Marks and Spencer objectives. Marks and Spencer need for employees is regularly monitored and incorporated into a workforce plan. This sets out likely future needs for labour and how (through training and recruitment) these needs might be met. In order to fulfil the workforce plan, managers responsible for human relations audit existing human resources and put into action a plan to develop the right number of employees with the correct skills to take the organisation forward.

Achieving the workforce plan involves the human resource function in a number of day-to-day activities.

Recruiting employees –both internally and externally
Training new and existing employees
Monitoring and maintenance of good working conditions
Dealing with disciplinary matters and grievances
Overseeing industrial relations, by seeking to avoid disputes and maintain harmonious relations and constants production.
Health and safety
Developing and monitoring an employee appraisal system designed to assess performance, set targets for achievement and identify any training needs.

Job roles in human resources

When I visited Marks and Spencer I ...

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Achieving the workforce plan involves the human resource function in a number of day-to-day activities.

Recruiting employees –both internally and externally
Training new and existing employees
Monitoring and maintenance of good working conditions
Dealing with disciplinary matters and grievances
Overseeing industrial relations, by seeking to avoid disputes and maintain harmonious relations and constants production.
Health and safety
Developing and monitoring an employee appraisal system designed to assess performance, set targets for achievement and identify any training needs.

Job roles in human resources

When I visited Marks and Spencer I have found out that the following job role have to be carried out within the human resources department.

Issues in human relations

Apart form the shift away from a straightforward personnel function, human relations within Marks and Spencer have seen a number of other changed .The trend for delaying has changed the responsibilities of those working in human resources management. In Marks and Spencer, the human relations function must now cope with matters such as training, recruitment and discipline that may previously have been the responsibility of middle managers.

Instead, responsibility for human relations has been given to managers across the organisation. Some business analysts that those closer to employees are perhaps better placed to manage the human resources effectively .It is, they feel, the duty of every manager to make the best use of the people for whom he or she is directly responsible.

The importance of human relations

For service sector organisations, wage cost are often the largest single business expense .For example, most colleges and universities in the UK spend over 65 per cent of the entire budget on stag wages and salaries. This means that its is vital for the profitability and commercial success of the organisation that the most effective use is made of their human resource. Even in manufacturing companies such ad Marks and Spencer, which incur relatively higher raw material and equipment costs, it is important that they make the most productive workforce. In Marks and Spencer, employees should be happy in their work and large numbers of employees should not leave M&S each year.

Productivity

Productivity is an important concept in Marks and Spencer studies. It refers to the relationship between the inputs into Marks and Spencer, such as labour and capita; equipment, and the outputs, the final product or service. A business increase its productivity if it cab increase output from a given amount of input; or, alternatively increase while maintaining the quantity of output .If Marks and Spencer can achieve greater output form each worker each day its productivity will have risen. Marking machine work faster can improve productivity.

Raising productivity offers Marks and Spencer substantial advantages. Marks and Spencer is able to reduce its price offers while maintaining profit levels because it’s cost of production have fallen.

Marks and Spencer –both manufacturing and service. Marks and Spencer can therefore gain a competitive edge if their workforce is more productive than those of their rivals. The productivity of labour is major determinant of the competitiveness of a business .IF business can be organised so that it achieves greater output per worker hour (or day or week) then its productivity has risen .Motivation, training and employing the right people are important contributors to high levels of productivity –all these factors and the responsibility of the human resources function.

Developing a skilled workforce –the human resources function engages in a number of activities to ensure employees are utilised effectively. These activities are carried out with the aim of contributing to the achievement of the Marks and Spencer’s objectives. Marks and Spencer need for employees is regularly monitored and incorporated into a workforce plan. This sets out likely future need as for labour and how (through training and recruitment) these needs might be met. In order to fulfil the workforce plan managers responsible for human relations audit existing human resources and put into action pan to develop the right number of employees with the correct skills to take Marks and Spencer forward.

The marketing function

When I visited Marks and Spencer I have found that the marketing department carries out a wide range of functions on behalf of Marks and Spencer. Essentially marketing is communications .The marketing department communicates with a number of groups inside and outside the business as is carries out its tasks.

Lets consider some of the marketing department’s relationship in more detailed.

Customers. Keeping customers satisfied is a key objective for Marks and Spencer and marketing plays a central role in attaining this target .The marketing department carries out the market the UK and across Europe

The importance of marketing

Marketing provides the organisation with information about its customers and its markets. Effective marketing can offer Marks and Spencer a number of benefits:

Early warning of changes in consumers taste and fashions through regular market research
Knowledge about competitors and information regarding competitors’ products
The means to present the M&S in a positive light through public relations activities
Allowing M&S to improve the quality of its products by coordinating and analysing customers complaints
Providing a catalyst for growth by forging relationships with distributors retailers and customers in new markets.
Supplying consumers with the products they want and giving high levels of customers satisfaction, which permit M&S to charge higher price thereby increasing its profitability.

Marketing is an influential factor assisting organisations to achieve objectives such ad growth and market share. Succesful marketing results in satisfied consumers and can lead to rising sales. By supplying consumes with the products they want and providing high levels of customer satisfaction. Marks and Spencer might be able to charge higher prices and increase its profitability.

Furthermore, by projecting a positive corporate image –the general public impression by which the business is view and judged by the society-the marketing function helps a business to grow and prosper. It is unlikely that Marks and Spencer with and ineffective marketing function will satisfy consumers and enjoy commercial success.

The activities of marketing include:

Marketing research, to find out what customers needs and customers opinions on proposed and existing products or service.E.g .use questionnaires
Promotion, to inform the customers that their particular organisation can fulfil these needs. E.g. provide customers with promotion offers such as buy one get one free
Sales, to provide the goods or service the customers now thinks she or he needs.

The contribution is vital in that it directly influence the number of sales that are made and therefore the profitability of M&S

When I visited Marks and Spencer I have found out that the following job roles have to be carried within the Marketing department

research and discover the needs of consumers. This research is likely to be an ongoing activity to ensure that Marks and Spencer is aware of changing taste and fashions. The department is also responsible for organising advertising campaigns, special, offers and others activities designed to promote the company’s products. The marketing function may also deal with customer complaints.
The production department. This is possibly the most important internal relationship between business functions. The marketing department discovers the needs of customers and advice the production function accordingly. If this channel of communication operates effectively, the business should be more able to meet the needs of consumers.
Distribution and retailers. The marketing function normally carried the responsibility for ensuring the effective distribution of products to wholesalers and retailers. It may also liase with retailers to gain prominent display position for the company’s products and to arrange special offers and promotions. With the development of the Internet, many firms now sell their products to consumers. This has placed additional responsibilities on the marketing department

Government agencies. M&S is an exporter, the marketing department may have contact with governments agencies in

Helping to achieve objectives

Core UK business –This is possibly the most important internal relationship between business functions. The marketing department discovers the needs of customers and advises the production function accordingly .If this channel of communication operates effectively, the business should be more able to meet the needs of consumers.
Internal –government agencies. Marks and Spencer is an exporter, the marketing department may have contact with government agencies in the UK and across Europe
Providing service to community –Customers. Keeping customers satisfied is a key objective for M&S and marketing plays a central role in attaining this target. The marketing department carries out the market research to discover the needs of consumers. This research is likely to be an ongoing activity to ensure that M&S is aware of changing taste and fashion .The department is also responsible for organising advertising campaigns, special offers and other activities designed to promote the company’s products .The marketing function may also deal with customers’ complaints.

The administration function

The scope of the administration department varies enormously between organisations. In a small business the administration function might incorporate a number of the functions .For example, some aspects if finance, personnel and marketing could come under the control of the administration department.

However, larger organisations like M&S are more likely to operate a specialist administration department. Atypical administration department has a number of functions

The provision of information throughout the M&S .It is common for a Marks and Spencer’s information technology section to be a part of the administration function .The IT system within a business provides management information for decision –making throughout the organisation
Clerical and support service. Information processing, data processing, filing and reception service can provide all areas of M&S. These duties play a vital role in linking together the activities of other function within the business.
Security and maintance. These service are essential to the smooth running of M&S and to the effective operation of other business functions such as a production in particular
For M&S the administration function takes responsibility for important public relations activities such ad customer service

Administration is heavily dependant upon the use of information technology. This technology allows Marks and Spencer to collect information from within and outside Marks and Spencer, to analyse it and to provide important data for decision-making. However, the benefits provided by information technology have also contributed to a situation in which a discrete or separate administration department is less likely. In effect, the technology enables small and separate ‘mini’ administration function to operate within other areas of M&S

The research and development function

The nature of research and development (R&B) varies enormously between Marks and Spencer. Traditionally, the term research and development is taken to refer to scientific research undertaker, by Marks and Spencer producing manufactured goods, high technology products or pharmaceuticals. However, R&D is equally important to firms providing services. Retailing business companies such as Marks and Spencer are constantly developing new products to give them a competitive advantage.

By investing in research and development a business seeks to maintain competitiveness against its rivals. Competitiveness measures. Marks and Spencer’s performance in comparison with rival firms in the same market .A highly competitive firm has some advantages over other businesses. This competitive edge can take a number of forms:

Lower prices
More advanced and sophisticated products
A better image with customers
A good reputation for advice and after-sales service
Reliability in terms of operation and delivery dates

Type of research

Research and development can be broken down in to three components:

Basic research
Applied research
Development
Basic or fundamental research is undertaken mainly to achieve advancements in scientific knowledge that have commercial possibilities. This discovery of digital technology in broadcasting is an example of basic research.

Applied research then takes forward the scientific discover and attempts to develop it in a way that results I a saleable product. For example, digital communication technology has been developed to the point that radio and television broadcasting and systems have been designed to deliver digital broadcasting.

The development aspect of R&D uses the results from applied research to bring the product to the stage where it is marketable. Continuing the digital example, digital broadcasting services have been tested and are now in commercial operation.

The scope of R&D

The prime function of R&D is to develop new products that can give the firm a competitive edge in the market. This necessarily involves the R&D department in close liaison with staff in market research design and production.

Market research aims to identify the needs of consumers .This information is invaluable to those in R&D ,as they need to ensure that the is likely to be a demand for any products they develop .Market-oriented businesses place great emphasis on this relationship.
Design is an important stage in developing new ideas into saleable products. Designers attempt to bring together the needs of consumers and the new ideas and processes. Goods designers combine creative flair with a real sense of what the market requires.
High quality ideas need protecting; Marks and Spencer does not want rival businesses stealing their ideas .The law offers protection in the from of patents. Patents give the creators of a new product the sole right to produce it for a limited period of normally up to 20 years.
Goods ideas will not necessarily result in commercially viable product. The company needs bring in the production department to determine whether the product can be produced both on a large scale and cost- effectively. If the new product is expensive to produce, it may not be able to be priced at a level that consumers can afford.
However, if Marks and Spencer can overcome all the hurdles, new products can make high profits. Marks and Spencer has a product technologically superior to those of its rivals may be able to operate a price skimming strategy. This company intentionally sets a high price, only attracting those consumers willing to pay that price –this is ‘skimming the cream’ off the market.

R&D also focuses on new manufacturing processes as well as new products .For example; R&D departments may look for new materials to replace costly or scarce resources currently used in production. For example, many modern products contain plastic rather than more costly metals. Many drinks such as Coca-Cola and milk, are now packed in plastic or card containers rather than traditional glass bottles .R£D departments seek lighter and tougher packing to reduce transport cost and the likelihood of damage to the product.

Other duties conducted by the R&D function at Marks and Spencer could include;

Seeking to reduce or eliminate waste in production process to increase efficiency and profitability
Identifying and applying for government and EU financial support available to firms conducting research and development
Maintaining close links with universities and other organisations conducting scientific research
Producing high quality products-high quality ideas need protecting; Marks and Spencer does not want rival businesses stealing their ideas .The law offers protection in the form of patents. Patents give creators of a new product the sole right to produce it for a limited period of time normally up to 20 years.

Customer service

The needs of Marks and Spencer

Marks and Spencer is profit motivated or income maximising, its relationship with its clients/customers such be that they latter keep coming back. The achievement of customers’ satisfaction must be a major objective of Marks and Spencer, or the other objectives will not themselves be achieved. Marketing orientation is not just thinking about customers satisfaction, it is about achieving it. A customer-oriented organisation with the right products in the right place and ate the right price will soon achieve an increase in market share. The only problem might be the increased cost of customers’ service provision .In most M&S however; this cost should be absorbed by increased sales and profits because the customers stay loyal. Note also the growth of loyalty cards.

The right image