Effective Business Operations Management for LIDL UK: Hybrid Facilities and Customer Value

Outline of Essential Components for Effective Business Operations Management

Using the specific operations performance objectives it can be argued that LIDL UK is focussed on satisfying its customers’ requirements for fast and dependable services at a reasonable market price, through strategic partnerships that assist its customers to improve the services they offer (value for customers). Specifically you should: 

1.Outline the essential components for ‘effective business operations management’ (creating value for the customer) for LIDL’s operation within the UK.

2.Use a soft systems methodology to evaluate the issues LIDL UK might face if they decide to introduce hybrid facilities to allow their customers to continue shopping in store, as well as ‘order goods online and have these delivered to the door’ to compete in the market place. Support your discussion with appropriate business operations and business process models (i.e. the five operation objectives and the Four Vs (volume, variety, variation and visibility), customer value, the service gap model etc.). 

3.You should compare and contrast different models used by the sector in which LIDL UK operates and recommend appropriate solutions to continue being competitive in the market, make easier for customers to select and buy their products (issues to consider centralised/decentralised inventory and delivery chain, customer value chain, cost implications, sustainability etc.). 

4.Comparison of different solutions with costing and choose one solution to take forward with reasoning. Business process issues to consider: What are the main elements of the service concept, and are these pf equal importance to all customers? What tradeoffs have had to be made in the design to deliver a quality service package to all of LIDL’s customers.

5.With reference to the parcel conundrum (http://www.bbc.co.uk/news/magazine18709348) recommend how LIDL UK should respond to this conundrum (keeping in mind the possible technological and environmental (CO2) impact). 

For the new system you should include Root Definition, CATWOE and produce a detailed “Rich Picture” (hand drawn) to fully illustrate your answer. Your rich picture must indicate the problems well as the solution.

By means of a Business Process Plan (BPP) illustrate the changes including “AS IS” and “TO BE”. Brief explanations of both plans are required and support your discussions with relevant literature. You must follow the Business Process Management (BPM) standards covered in the class. Part three is the implementation of the new process (“TO BE”); failure not to include the BPP may result in marks not awarded for part three

Discuss how the LIDL’s managers would turn performance objectives into operations priorities and the resources that would be necessary for effective implementation of the new process (“TO BE” business process plan).

Using a Balanced Scorecard, discuss how the business performance can be measured post implementation (refer to the last three years of company annual reports and any other relevant data for improvement and target trends for LIDL UK).