Applied of Commercial and Quality Principles in Engineering

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B1BD is a medium sized engineering organisation based in Sheffield. The purpose of this report is to explain“how key business activities and trade considerations could influence B1BD and create a “competitive advantage for the company”. The main purpose of functional areas is to ensure that all important business activities are carried out efficiently. This is essential if the business is to achieve its aims and objectives.

How key business activities could influence B1BD and give it a competitive advantage

  1. Human Resources (HR):
  2. HR are one of the most important department of B1BD. The role of the Human Resources department is to recruit workers, interview them to identify whether they have the skill and knowledge of the work or the task they may be given in the future. This is a crucial task for B1BD as Human Resources must recruit appropriate people who will benefit B1BD, therefore B1BD will not invest more money to training and building someone skills for that task or the particular job. The stages of recruiting new employs is by B1DB Human Resources to first of all advertise the job on different platforms. It then goes through a screening process of applications, if B1BD think there is an applicant that match their criteria for the job. Then the applicant get an interview. The process of screening is very useful to D1BD HR department, because it make the process very easy and very quick to hire someone. This is because it easy to identify and clarify if the applicant has the quality for the job. The interview process is also very important for B1BD as it will give a good idea of if the applicant is truly skilled and truly to the standard for the job. Therefore, B1BD will now decide whether the applicant is suitable for the job or not. It is crucial of B1BD HR department of employing the right person for the job to avoid any loss of money on training new staff. It is crucial of the HR department of employing the right person to save money and time.

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    Other important aspect of B1DB having a good HR department is not only to recruit new employees, but also to ensure that the applicant hire is clear of hat is expected of him from B1BD. HR has the endure that a criminal check is done to ensure that B1DB doesn’t get a bad brand image. HR is also responsible of dealing with workers support that the employees may require such as learning difficulties, accommodation, and transport. Therefore, the HR department duty is to identify whether the candidate is skilled enough in order for them to sacrifice and invest in someone that may need extra help. By doing so HR will help B1BD to have a good brand image as a business. HR also ensures that the workers are well looked after while at work. The reason for that is because the business will be accountable of anything that will happen or could happen to the workers. This could be a small thing such as a misunderstanding between staff members to something catastrophic as a fatal injury at work. Therefore, the duty of HR department is to maintain a good work ethic and also to ensure staffs are comfortable at work. On the good side, this means that B1BD will gain competitive advantage over its competitor.

  3. Delivering services
  4. Delivers services could help B1B get a strong brand image and it can give the company a competitive advantage. This is because providing a delivery services will be easier and faster for their customer goods and products to be deliver. Therefore, the customer will be pleased which means; they are more likely to gain the customer loyalty and trust which can lead to a repeat of purchase. However, having a delivery service means that more money will be spend on vehicle and drivers which, can be expensive than delivering the goods with a company like Royal Mail or DHL that already have the facilities to do the job.

  5. Sale
  6. Sale is a department that is very crucial for the growth of a business especially B1BD. Sale department is almost like a bridge connecting the business to the customer. Therefore, is vital for the sale department to maintain a high expectation of services to the customer, this is because the sale department is the source of hoe the business make a revenue or a lost. Sale department also deal with making sure that B1BD never run of revenue, therefore their target is to allocate when, where and how to get as much customer ads possible. Example of “when”: The sale department of B1BD can decide to target as much customer during the time of Christmas period. Places like the airport and malls will receive a huge amount of people shopping. Therefore, by b1BD targeting that period could lead to a boost of sales over their competitors.

    Sale department also deals with the relation with other organisations to increase their revenues. This would be a good way of B1BD to gain more customers and also to maintain their business running. For example, if a medium size business similar to B1BD, the 2 organisations could team up which could be beneficial for both businesses. Therefore, B1BD will have less competitor to compete against, it will increase the popularity of both organisation and help both businesses to expand. Sale department have a huge influence on how the company relate with its customer. This is because if the customers are satisfied with the service they have received it may lead to the business to gain a strong brand image, a repeat of purchase and even the customer can recommend the organisation to others, which could potentially be a future customer of the organisation. Which means, the B1BD would gain more customer and an advantage over its competitor.

  7. Production
  8. Production is important to a company especially B1BD. This is because B1BD produce its own products. A production is the manufacturing line of something that can be sold to customer or to the public and to big companies. Having a good production ethic means that B1BD will increase it manufacturing output which can make a huge difference in terms of gaining a competitive advantage over its competitor. Having a manufacturing department means that B1DB will enable the business to track and oversees and the progression of the productions. Therefore, B1BD production output means that the more product the company cam sells, which can lead to a profit for the business. Also having a good manufacturing department reduce the cost of production this is because the department will focus of other ways of manufacturing that can lower the cost per unit per production. Therefore, that can lead B1BD to manufacture good quality product which means that id the cost per unit is less it means B1BD can sell their product art a low rate. Therefore, customers are more likely to buy their product compare to other companies, which will attract more customer as the more profit B1BD makes they are more able to produce specific product to their customers which will make the business stand out among other businesses.

The ways that B1DB can gain a competitive advantage

The ways that B1DB can gain a competitive advantage over its competitor as an engineering industry is by: Contracting out or out sourcing another business – is the process of agreement of a different company to provide services or goods to an organisation. Contracting out have its pros and cons.

The pro’s side of B1BD of contracting out will simplify things and save money for the organisation. The reason why is because B1BD will not have to train staff and to hire machining to perform a task needed for they products. B1BD out sourcing means that less money and time is wasted on advertisement and going through the process of screening and interviewing applicants. Therefore if B1BD decide to outsource a contractor, the contractor must make sure they follow the close they sign.

Tendering: is the process of allowing a business to bid for a particular job. The way that tendering can influence B1BD’s competiveness toward it competitor are it will allow the business to save money and time. This is because by tendering B1BD will build more relation with other businesses, which could help the business to expand.

Force majeure: in when an expected situation occur that could prevent a business or a person to meet the contract that was sign. For example: a war in a country, national shortage of metal or a natural disaster. Force majeure could have a huge impact B1BD as the business might miss their deadlines such as production or sale. Therefore, B1BD will lose money and customer, which will be bad for the business reputation and brand image. Therefore, it will be very crucial that B1BD sign a close that allow the organisation to set a paying scheme to their contractor. This will enable B1BD to not over spend any money until the job is achieved or completed. Another benefit of having a Force majeure in a close is that, it will enable the organisation to focus on other department need more attention. Therefore, company will excel more than its competitor.

How intellectual property rights may give the engineering organisation a competitive advantage

B1BD, can get a copy right on their product to gain advantage over it competitor, this means that no other organisation will be able to copy or claim B1BD designs features of their products. By having a copy right, means that B1BD only have the right to sell or produce that particular design. Which means that the organisation will make a huge increase of profit and also will gain an increase of customers. B1BD can offer a long term contract to another business by out sourcing businesses. By doing so the organisation will gain a competitive advantage because their production will be easy and quick. Also contracting out will enable B1BD to make less mistake on their production as specialise employees will be work for them. Another way that B1BD can gain competitive advantage is by alliancing with other company that could be a threat to the organisation. For example: Carry and PC world were 2 different companies that joined alliance to gain competitive advantage over its competitor such as John Lewi’s and Maplins. B1BD alliancing with another organisation will bring more customer to both organisation and it will increase the both brand images of both businesses. Finally, the way b1BD can gain a completive advantage over it competitor is by building a strong customer trust and relation. The way B1BD can gain customer trust is by having a way to reward customers. It can be done by having a loyalty card, special offers and discount card. This means that the customer is more likely to make a repeat of purchase which can means more profit for the business.

Another way, that B1BD can gain competitive advantage is by reducing the prices of their products and to offer good quality products, by doing so the organisation will attract more customer as there are more likely to purchase a good quality product at a lower price.Intellectual property is the right given to an organisation to protect its design or product for a period of time. Intellectual property includes patent, copyright and trademark. This can give an organisation a competitive advantage as no other organisation can copy the design. Therefore if the business design or product is a new invention, the organisation will gain a huge profit because no other organisation can legally copy the design. Therefore, B1BD will gain all the customers as there will be no competitor to compete again with before their intellectual properties period runs out. Intellectual property also give B1BD the opportunity to sale a unique product that no other organisation can offer on the market which can give a competitive advantage over other organisations. It also allow the organisation to increase its profit and customers as if a customer require the product, they are more likely to buy the product from B1BD.

The Human Resources department: the way that HR can give a competitive advantage to a medium sized engineering organisation such as B1BD is by employing specialise workers or by having a strong and hard working team of employees that are willing to work to a standard of a specialise worker. This will enable B1BD to get task done quickly and affective. Therefore, having a team of specialise workers will enable B1BD to work efficiently which mean they will gain a competitive advantage over its competitors as they will be more organise and they will be able to meet all they production deadlines in order for their customer be satisfy.

Production: B1BD, can get competitive advantage by using recycle and cheap resources for their product.B1BD will gain a competitive advantage as they will spend less money of material which the extra money can be used to reinvest in another department of the organisation. Another way that B1BD can get a competitive advantage over is competitor is by recycling any waste that can be reused. Therefore, the business will spend less money on new resources that can be costly. Which means less cash out flow more profit for the business.

Sales: can give B1BD a competitive advantage as customers will be happier to buy a product at a lower price, as they will save money. This will give B1BD a competitive advantage because they will attract more customers who will be more willing to buy from B1BD rather than their competitors who will have a higher price.

Contracting: could give B1BD a competitive advantage for many reasons. For example, if workers are being contracted to work for B1BD they will be workers who have experience and know what they are doing. This means that they will do their tasks quickly and efficiently. This will save B1BD money and time, this is because they won’t have to waste time on money looking for workers who may not even be experienced enough. This gives B1BD a competitive advantage because the organisation could get certain tasks done easier and quicker, this means the organisation will run smoothly unlike their competitors who may not have contractors, they may be lacking and not get their tasks done quickly and efficiently. Patents could give B1BD a competitive advantage. This is because if B1BD patents their products and designs no one else could use them. This could give B1BD a huge competitive advantage because if the demand for that product goes up all the competitors will go to B1BD as any competitors won’t have it. This will give B1BD a huge profit and an excellent reputation, it will also allow B1BD to offer something completely unique to the public. Their competitors may lose business or even pay B1BD to use their products.

Political factor

The way that political factor can influence an organisation is base of the fact that the business need to follow and understand the law of that country. For example a country like England is a democracy country which mean that in terms of business no one is above the law therefore trading in England your free to do what you want as long as you don’t abused the law and regulation. therefore for the organisation is more likely to be successful as they is no limitation on the quantities of product that can be sold in that country , there will be no extra tariff which is taxes that need to be paid as a foreign organisation importing goods or services. Therefore the business will be successful. however the country is a dictator country you organisation will be at risk of not being successful this is because in a dictator country the government is about that law therefore the organisation will have to follow the government laws which that the organisation does have as much freedom of the business is less likely to succeed this is because the tariff maybe impose, import quotas which will limit the amount of good coming into the market. Therefore the organisation will lose a huge amount of money therefore the organisation will be forced to claim bankruptcy or move they trade to a different country.

Environmental factors

The way that the environment can influence a trade consideration is based on the fact that the organisation need to be taken into consideration how the environment can be affected by their organisation. This includes co2, noise pollution, sound pollution and habitat pollution. By the organisation taking all those factors into account will determined whether to take trade internally or externally. Trading internally will reduce the risk of environment factors. However the business will not be as successful this is because the organisation will only supply the goods or service the small percentage of the pollution therefore that can lead the business to be unsuccessful. However by the organisation trading them product to externally it will increase the risk factor of the environment. However they organisation will grow in term of profit this is because there will be higher percentage of people in demand of the service or good. Therefore the business will become successful and make a good turn up.

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