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Business Operation Service

Updated:2018-1-19 17:45:01    Source:www.tannet-group.comViews:388

Business operation encompasses three fundamental management imperatives that collectively aim to maximize value harvested from business assets, namely, generate recurring income, increase the value of the business assets and secure the income and value of the business. The outcome of business operations is the harvesting of value from assets owned by a business. Assets can be either physical or intangible. Business model of a business describes the means by which the three management imperatives are achieved. In this sense, business operations is the execution of the business model.

Functions of Business Operation
(1) Generating recurring income
This is the most straightforward and well-understood management imperative of business operations. The primary goal of this imperative is to implement a sustained delivery of goods and services to the business's customers at a cost that is less than the funds acquired in exchange for said goods and also self employee services — in short, making a profit.

A business whose revenues are sufficiently greater than its expenses makes profit or income. Such a business is profitable. As such, generating recurring "revenue" is not the focus of operations management; what counts is management of the relationship between the cost of goods sold and the revenue derived from their sale. Efficient processes that reduce costs even while prices remain the same expand the gap between revenue and expenses and derive higher profitability.

(2) Increasing the value of the business
The more profitable a business is, the more valuable it is. A business's profitability is measured on the basis of how much income it generates for the:
a. amount of assets its business operations employ — its business return.
b. amount of revenue it realizes — its business margin.

(3) Securing the income and value of the business
Desirability or demand for its goods and services;
Ability of its customers to pay for its goods and services;
Uniqueness and competitiveness of its business model;
Control exerted over the quality and efficiency of production activities;
Public regard for the business as a member of the community.

A business that can harvest a significant amount of value from its assets but cannot demonstrate an ability to sustain this effort cannot be considered a viable business.

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If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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