Business Operations

Business Operations Definition

The business operations can be defined as activities or deliverable business performs on a daily basis in order to sustain itself and enhances the value of the enterprise and derive income from it. These operations are performed by the employees.

Functions of Business Operations

  • The primary function is to help a business earn income as this could be only achieved by sustainable operations.
  • The business has to ensure that all resources and assets are utilized to their fullest to drive the business results and objectives.
  • They have to ensure that there is an establishment of good co-ordination among different departments namely accounting, finance, marketing, and sales.
Business Operations

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Industry Examples

The Service industry would have different sets of business operations as compared with the manufacturing and retail industry. The Merchandising industry has a model that believes in selling merchandise inventory quickly. Therefore, these types purely depend on the industry level it works.

The business varies with different industries and can be classified as follows: –

Examples business Operation

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#1 – Retail Industry

The retail industry deals with products that could be immediately sold to customers at a price that matches their paying capacity. The business operating in such inventory needs to have a robust inventory management system. The system should be so robust that the business should be able to differentiate between a dead product or a product in low demand with that of high demand.

#2 – Service Industry

The service industry can be bifurcated on the basis of the nature of business operations. They can be classified as back-end and front-end. The front-end business works with the customers and tries to meet their expectations. In order to meet customer expectations, they have to develop mechanisms that record the feedback given by the customer that allows them to prioritize their requirement and deliver optimized business outcomes.

The backend business should work towards supporting the front-end part of the business. They should help the front-end people with forecasts and projections that prevent the business to exceed their budgeted cost or expected costs.

#3 – Manufacturing Industry

Manufacturing businesses focus on transforming the raw materials into marketable finished products. In order to produce quality finished goods, they have to get access to quality raw materials from the suppliers. Additionally, they have to focus on how they can eliminate any potential bottlenecks that may arise in the manufacturing of products and then shipping them to the correct business outlet or warehouse.

#4 – Technology Industry

To have a high impact business, the technology business operating in the industry has to hire the right skill set that is required to execute the job function or project it has in hand. To meet the business requirement, such hires may be trained first on how to utilize tools and skillset to accomplish the job at hand.


The business operations tend to be different and distinct as per the business types, size, and industry. The operations of the online stores or E-store are different from the brick and mortar stores. Therefore, it is necessary to chalk out the broad elements.

The elements are primarily composed of the following elements: –


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#1 – Process

The process is termed as the backbone of the business operations. It has a lasting impact on efficiency and productivity. The processes can be performed both on a manual basis as well as with the application of automated software. The activities that form the part of the process should be documented carefully and should be named as the standard operating procedure.

Such standard operating procedures could then allow quality managers to go through such documents and in time drive continuous improvements.

#2 – Location

For running business smoothly, it is critical to shortlist a favorable business location. If the business is large corporate, then it should easily be accessible to its employees. If the business is small and led by a solo entrepreneur, then he can work from remote locations to drive value generation.

#3 – Technology

A business cannot sustain if it does not adopt the latest technology. Fruitful leverage of technology in the business drives operational excellence and sustainability.

#4 – Business Machinery and Equipment

This aspect focus on the hardware that is utilized by the business to run its business operations. In order to sustain its operations, the business should invest in the right machinery and equipment.

#5 – Staffing

For any business to meet its organizational needs and business targets must possess the right talent in place. The right talent should have the desired skill set and domain expertise to drive operational excellence thereby ensuring the sustainability of the business operations. Staffing needs of the organization varies with size and process needs.

A small process or organization may have limited staffing needs and may have a closed group of employees. A larger organization may have unlimited staffing needs so that they meet their business objectives.

How to Enhance Business Operations?

  1. Measurement of Key Performance Indicators or Performance: – The business should establish the right metrics and measures that help in the measurement of the milestones that are to be achieved by the business. It should establish the right goals and targets that could be met easily.
  2. Analyze and Understand the Trends Dominating the Industry and Markets: – To stay competitive in the industry, a business has to stay updated with the trends that are trending in the industry. The business should have the ability to learn from the trending topics and innovate from them to deliver projects that exceed the expectations of their customers or clients.
  3. Streamlining the Deliverables and Projects in Pipeline or Process: – The business should eliminate redundantly and non-value add activities and should attempt to streamline the process so that the business achieves the right business outcomes.


  • Streamlining of process.
  • Effective utilization of assets and resources.
  • It offers the opportunity of replicating innovations achieved in one process to be replicated in the process that have similar objectives.


  • Creation of Silos and departments within a business.
  • Lack of coordination among team members.
  • At times, the balance between the execution and business strategy may not be aligned with one another.


The business operations focus on the day to day activities performed in the business. Such activities help the business to earn profit or revenues or cover the cost of operations. The sustainability depends on the type of employees hired by the organization, the kind of technology utilized by the business to deliver business results.

Recommended Articles

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