What are Operations?

Definition: Every business carries out various operations to meet its goals. A manufacturing firm’s business operations may include purchasing raw materials, converting these into finished products, and selling them. A service company’s operations would involve carrying out those activities that enable it to meet the requirements of its customers.

What does Operations mean?

The success of every business is dependent to a large extent on how well it manages its operations. Every firm must have the ability to identify potential customers, convince them to buy the products and services that it provides, and to carry out all the activities that are necessary to retain them.

When a new business is launched, its endeavor is usually to fulfill an unmet need in the market or to provide a product that is superior to that offered by the incumbents. But it is important to remember that a good business idea is not enough. It is also essential to have the ability to convert this idea into action on the ground. A company must have robust execution capabilities and should know how to run its operations efficiently and cost-effectively.

Example of Operations

Let us consider the business operations of the Coca-Cola Company. This giant corporation is behind 500 different brands and it sells its products in practically every country in the world. Its operations include:

⇨ The manufacture and sale of concentrates and beverage bases to various bottlers.

⇨ Managing and promoting the brands that it owns.

⇨ Coordinating the activities regarding the sale and distribution of its products.

The company has built up an immensely successful brand image over the years. Forbes business magazine ranks the Coca-Cola brand as the sixth most valuable in the world.


The core activities that a business organization carries out to meet its goals are referred to as operations. Operational efficiency is a crucial requirement for the long-term success of any business.