Assignment 1: Business Operation and Management

(An Individual Portfolio)

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Table of Contents
Task 1: Contemporary Research................................................................................................3

Introduction............................................................................................................................3

Key Operational Issues and Respective Causes.....................................................................3

Solution to the Problem..........................................................................................................4

Task 2: Case Study of Aldi........................................................................................................5

Comment Whether the Model Similar to Aldi will work in other industries.........................5

Discussion of Sacrifices needed by Customers to have access to the Identified Shopping

Experience..............................................................................................................................5

Task 3: Business Ethics..............................................................................................................6

Task 4: Class Discussion............................................................................................................8

Presentation............................................................................................................................8

Reflection.............................................................................................................................12

References................................................................................................................................14

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Task 1: Contemporary Research
Introduction
Research Topic: “Impact of Brexit on the Operational and Logistics Cost of the Companies
of the UK and Price Inflation”

Brexit is an agreement that occurred between the UK and European countries following the
government of the UK withdrawing itself from the Union or Group of countries belonging to
Europe, and this occurred on 31st January 2020 (BBC, 2022). With the implication of Brexit,
the tax-free and cordial trade activities were going between the companies of the UK and
Europe got curbed, and this eventually increased the operating cost and logistics charges. The
hike in the operating cost due to Brexit reduced the percentage of trade from European
nations, and this eventually increased the cost of goods or commodities in the UK, which
eventually adversely affected the operational competence of British companies.

Key Operational Issues and Respective Causes

The first and foremost operational issue, which is highlighted in the research work, is related
to a reduction in the efficiency of doing trade business with European nations by British
companies, and this occurred to the imposition of strict document checking and tax collection
policy. After Brexit, the authority of European nations curbed the right of free trade from the
government of the UK, due to which British companies were forced to pass through strict and
prolonged document checking processes on the border and this policy was imposed from both
sides (McKinsey, 2022). The outcome of the implementation of a strict document-checking
policy is that European companies who were exporting their products to the entities of the
UK were denied to do business with the British firms further due to higher investment of
finances and time in passing borders and meetings. With the non-business continuation-
related decision of European companies due to the strict and prolonged document checking
process on the UK-Europe borders, British companies became inefficient in procuring
essential raw materials at minimum cost, and this eventually augmented operating costs. The
result of the hike in operating and procurement costs is that the companies of the UK became
marginally inefficient in producing their goods or service at a minimum cost, and this
eventually reduced the paying capacity of British customers, which eventually took the form
of inflation (Deloitte, 2022). In short, the occurrence of Brexit has increased the operating
cost of British companies, and this has eventually disabled them from continuing their
operational activities at minimum cost with higher profit margins.

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Solution to the Problem
The management of British companies might reduce the degree of operating cost related
problem of Brexit by finding an alternative to European goods from domestic suppliers or
non-European countries, as it will help them to meet their operational needs at a reduced cost.
Apart from it, by procuring necessary goods from European markets in bulk quantity
together, British entities will be successful in reducing their purchase cost, and this will
eventually help in curbing the operational issue.

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Task 2: Case Study of Aldi
Comment Whether the Model Similar to Aldi will work in other industries
On the evaluation of the operational competence of Aldi, it is found that it meets the grocery
items related needs of targeted customers by setting up small stores having limited and
exclusive kinds of products so they might find their essentials in minimum travelling and
time. Since the products which the management of Aldi is selling through small stores are
exclusively available at its operational outlet, only its customers get forced indirectly to visit
the outlet, preferably over others. It means that the exclusive and small store-outlet-based
business model of Aldi might be possible in other industries as well, like the Fashion industry
but with the condition that only exclusive items might be sold without any alternative to any
other stores (Aldi, 2022). For example, if a company opens an exclusive outlet of sports items
and cloth of a Nike Brand in those areas where any other stores in the same brand are not
operational, then it will be successful in limiting potential customers to itself, and this will
eventually augment its market competitiveness as well. With the adoption of an exclusive
item, retailing-related business model like Aldi, the management of the respective store will
be successful in generating the feeling of limited availability among its potential customers,
and this will eventually help it to have the edge over the existing large outlets or superstores
(Sloman and Jones, 2017). In short, a business model like Aldi is possible to deploy but with
the condition that the determined product or service might not be available in a nearby area
with the same name and exclusiveness.

Discussion of Sacrifices needed by Customers to have access to the Identified

Shopping Experience
On the analysis of the exclusive store-related business model of Aldi, it is found that the
primary thing which customers who like to enjoy the shopping experience have to sacrifice is
related to the behaviour of checking out the traits of multiple options belonging to the same
product line. For example, if a customer visits an exclusive model-based retail outlet to
purchase a desired kind of product, then the respective individual becomes inefficient in
checking how the exclusive commodity available at the store is better than similar brands
(Tandon and Kiran, 2019). It means that customers will not be successful in understanding
the comparative traits of exclusive products in comparison to their rivals, and this might force
them to sacrifice comparison-based shopping patterns or behaviour (Lou, et al., 2020).

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Task 3: Business Ethics
Business ethics refers to the execution and continuation of a determined kind of operational
activity without conducting any unethical practices directly or indirectly at any point in time
to meet the determined aim and objective related to competitiveness (Roberts, et al., 2017).
Before the fiscal year 2016, the management of GlaxoSmithKline (GSK) was manufacturing
and retailing its pharma products to customers of the UK and other parts of the world by
promoting its technical functionalities, and the practice was being performed by its rivals as
well. The presence of a higher number of pharma product manufacturing and retailing
companies disabled customers from understanding which medicine was better and how it
should be decided whether a picked one was better and competitive or not (GSK, 2022).
Hence, to support the customers of the UK and other parts of the globe in making an ethical
and informed decision, the business head of GlaxoSmithKline decided to make public the
exact result of each R&D (Research and Development) associated with its products.

With the support of the R&D outcome disclosure-related ethical approach, the management
of GlaxoSmithKline empowered its global customers to go through the entire development
and testing process of each medical product or therapy, and this eventually helped them to
understand their respective competence. The primary purpose of the ethical approach of
GlaxoSmithKline was to inform global customers and its employees how it was dedicated to
developing and selling only medicine that was efficient in treating medical conditions without
any side effects. To increase the possibility of an ethical and informed decision-making
process among global patients or customers, the business head of GlaxoSmithKline
strategically made its medical journals and R&D outcomes on its portals, and this eventually
helped every stakeholder to understand the credibility of its claimed product or service. The
disclosure and open availability of R&D outcomes of the medicine of GlaxoSmithKline has
supported its employees to sell its products without any hidden terms and conditions, and this
has eventually augmented their efficiency to deal with diversified customers in comparative
style.

Until the management of GlaxoSmithKline had not decided to share the outcome of its R&D
performed over its clinical product or interventions, its sales and marketing representatives
were not efficient in selling its medicines in comparative style to hospitals and customers,
and this has reduced their performance (GSK, 2022). On the other hand, with the R&D
outcome disclosure related to ethical practice, the team of GlaxoSmithKline became

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successful in empowering its customers to understand how their products were better than
others in terms of treating claimed diseases using medical journals. In short, the ethical
business practice of GlaxoSmithKline regarding disclosure of R&D outcomes has increased
the performance and confidence of its employees in terms of selling its medicines with more
competitiveness over its rivals.

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Task 4: Class Discussion
Presentation

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Reflection
On the analysis of the overall individual presentation, it is found that I have been successful
in creating an effective visual presentation about the impact of marketing on the operational
wing and overall performance of an organization like M&S. The primary objective which I
had decided at the beginning of the presentation preparation work have been successful in
meeting the benchmark in the context of the selected company. With the support of
individual presentation work, I have been successful in understanding the impact of
marketing on the strategic performance of an organization and its operational wing in a
theoretical context. To increase my experimental understanding of the organizational

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significance of marketing, I have been successful in understanding how the marketing
department of M&S affects its operational department in terms of making inventory
procurement and product display-related decisions (Chang, et al., 2018).

On the evaluation of the process of the presentation development, the primary positive aspect
which I experienced during the innovative work is related to understanding the implication of
different functional wings of an organization in the real business world. For example, I have
learned how the marketing department works in an organizational framework and how it
helps the operation wing understand the current and future requirements. With the
experimental learning, I have been successful in understanding the significance of different
organizational wings, like marketing and operation, in making overall business performance
better, and this has helped me to augment my employability. In short, the experimental
activity has assisted me in developing an understanding of the real working environment of
an organization, and this has eventually assisted me in having an edge over my fellows to get
the desired kind of employment.

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References
Aldi. (2022). About Us. Retrieved from Aldi: https://corporate.aldi.us/en/about-us/

BBC. (2022). Brexit: What you need to know about the UK leaving the EU. Retrieved from
BBC: https://www.bbc.com/news/uk-politics-32810887

Chang, Y., Wang, X., and Arnett, D. (2018). Enhancing firm performance: The role of brand
orientation in business-to-business marketing. Industrial Marketing Management, 72(1), 17-
25,DOI: 10.1016/j.indmarman.2018.01.031.

Deloitte. (2022). deloitte-uk-brexit-industry-insights-logistics. Retrieved from Deloitte:

https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/international-markets/
deloitte-uk-brexit-industry-insights-logistics.pdf

GSK. (2022). Strategy. Retrieved Nov 05, 2022, from GSK:

https://www.gsk.com/media/7469/strategic-report.pdf

GSK. (2022). Sustainability. Retrieved from GSK:

https://www.gsk.com/en-gb/responsibility/esg-resources/

Lou, S., Feng, Y., Zheng, H., Gao, Y., and Tan, J. (2020). Data-driven customer requirements
discernment in the product lifecycle management via intuitionistic fuzzy sets and
electroencephalogram. Journal of Intelligent Manufacturing, 31(7), 1721-1736; DOI :
10.1007/s10845-018-1395-x.

McKinsey. (2022). brexit-the-bigger-picture-rethinking-supply-chains-in-a-time-of-

uncertainty. Retrieved from McKinsey:
https://www.mckinsey.com/featured-insights/europe/brexit-the-bigger-picture-rethinking-
supply-chains-in-a-time-of-uncertainty

Roberts, L. D., Chang, V., and Gibson, D. (2017). Ethical considerations in adopting a
university-and system-wide approach to data and learning analytics. Big data and learning
analytics in higher education, 12(1), 89-108; DOI : 10.1007/978-3-319-06520-5_7.

Sloman, J., and Jones, E. (2017). Essential economics for business. London: Harlow.

Tandon, U., and Kiran, R. (2019). Factors impacting customer satisfaction: An empirical
investigation into online shopping in India. Journal of Information Technology Case and
Application Research, 21(1), 13-34; DOI : 10.1080/15228053.2019.1609779.

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