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Business System Management

You are required to write a report. Referenced using Harvard format and presented in a format suitable to be presented to the two directors of the company detailing the current business system in use and how it impacts on the current organisational structure and external business factors.

The current organisational structure and systems are described below in the scenario, any details that are not fully stated in the scenario that you consider necessary to be able to write the report should be made and stated.

Submission of the report is through Turnitin by the stated submission date

LO1 Evaluate the contribution of business systems to organisational performance

LO2 Analyse the internal and external factors which have an impact on systems and processes

Scenario

“Mo’s Meals” is a small company, providing prep meals, the company has been in operation for the last 4 years. They have enjoyed a significant rise in orders and profit in the last two years but are now getting towards the limit of capacity for their current organisational structure and systems. They work very closely with numerous catering companies as well as supermarkets and are starting to have to turn away some orders due to their inability to supply the goods within the timescale required by clients.

Their current organisation and systems have been in place since they started when the company was founded and had a total of 8 employees, they have since expanded and now employ 20 people and are looking to expand further. The Managing Director runs the production and packaging side, which employs 12 cooks and assistants. The Finance Director manages the admin side, which also includes delivery and logistics and employs 8 people who tend to perform all the required functions dependant on demand.

In the current system, the orders come into the admin section by phone and email, they are then transferred onto the company order forms which are in triplicate. The top form goes to the production section, the middle form goes to accounts and the bottom form stays in admin. Production will collect the forms as and when they have time, which can be as infrequent as once a week. They then see how the order fits in with their production schedule and mark up a wall planner with the required deadlines. The required raw materials are identified for the orders received and the delivery schedule is created. Once these procedures have been completed the order is acknowledged and a confirmation is sent by admin with a proposed delivery date to the customer by post. Accounts are then sent a costing by production for labour and materials and machine usage and the total cost of the order is again confirmed to the customer.

Once the orders start processing the production department notify admin and they contact the distribution company by phone and arrange collection and delivery of the goods to the customer. On receipt of the signed delivery note the accounts department then sends the invoice for the goods to the customer.

Task 1

You are required to read the scenario and then produce a report with two sections:
The first will discuss and evaluate the contribution of “Mo’s Meal’s” current business systems and business functions, and how they support organisational performance. Evaluate the current systems in use at “Mo Meal’s” and discuss their advantages and disadvantages. Identify any potential bottlenecks in the system and discuss the impact they may have on the ability of the business to continue planned growth. Evaluate if the current systems helping to make the business sustainable.

Task 2

The second part will analyse both the internal and external factors that have an impact on “Mo’s Meal’s” systems and processes resulting in this review of current systems used in the business.