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What are business operations? GCSE Business
What is business operation?
Why must production costs be kept low?
The purpose of business operations
The term business operations refers to the part of the business that provides customers with the goods or services that they ordered.

Operations is responsible for taking resources – such as raw materials, finance and the business’ workforce – and using them to create finished goods or services. Operations then ensures that these goods or services arrive on time and to the right quality standards.

There are slight differences in how operations are defined in relation to goods and services:

Goods – When products are produced in a factory, everything that happens within the factory, from making goods to delivering goods, is classed as operations.
Services – When a business provides a service, the processes it uses are known as operations. For example, a dairy company that delivers milk to customers’ homes could have a website or app that customers use to order their milk. The company could also have some form of quality control to ensure customers are happy with the service they receive.