Unit 5: Chapter 23

An important part of any business model is operations. Operations occur in practically every business. Simply put, operations are the day to day activities required to maintain a business. A business has many operations, the largest of which are usually dedicated to their own departments. This can be difficult when first starting a business, as you have a lot of operations, and not a lot of people. As a business grows it gets easier, as you have more employees, each person has to do less of the operations. In order to manage this, employees will have a manager. For larger businesses, there can even be a chain of managers, with the owner at the top. A manager allows for operations to be delegated to employees, while taking on those of which the employees are not suited for.

While managers help oversee operations, policies allow for written guidelines which specify how certain things should be done. Managers enforce company policies to ensure that employees are doing things the right way. Policies can be put into place for a number of reasons, whether it be legal requirements, for efficiency, or what sets your business apart from other businesses. Common examples of policies include hours of operation, delivery, and handling returns.

An important set of policies in a business are customer service policies. Customer service policies dictate how your business interacts with its customers. Customers will be more likely to return to a business where they had good customer service. Happy customers will also share your business with friends and family, giving you word of mouth publicity. Getting repeat customers and word of mouth is very important, which is why customer service policies are also important. Examples of good customer service policies include: treat customers politely, do not keep customers waiting, ensure customers needs and questions are able to be answered, and provide customers with credible services. Part of customer service policies includes what to do with feedback and complaints. There are important because they allow you to see what could be improved. Customers often like to see that a business implements feedback, and this will lead to more repeat customers and word of mouth referrals. Operations and polices are a very important part of business, and should not be overlooked when working on your business model.

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