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B&M was formed in 1978 and they are variety retailers in the UK. B&M operate 450 stores across UK and employs. You should outline the essential components for 'effective business operations management' for B&M stores (B&M) in the UK. Use a soft systems methodology to evaluate the issues B&M might face if they decide to introduce facilities to enable their customers to order goods online and have them delivered to the door. Support your discussion with appropriate business operations models (i.e. operation strategy performance (priorities) model, customer value, the service gap model, four v's profile etc.)

1.You shout sleet with what &Ain &mg we Ncompafe to ere sector (*by customers Mn up lo the stores).

2. Retest?, the problems they may face going mane (the change)uPng Soh Systems Methocblogy (calico I ano),sas of need/problem to be solved).

3. Supped your clefunions with approprthle operations models (W.1alydoPM).

You should compare and contrast different models used by the sector in which B&M operates and recommend appropriate solutions for online shopping, make easier for customers to select and buy their products with fully integrated mobile applications (issues to consider centralised/decentralised inventory and delivery chain, customer value chain, cost implications, sustainability etc.). With reference to the parcel conundrum.

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. 04011110tded Wale acid moor).

By means of a business process plan illustrate the changes including AS IS" and 'TO BE". Detailed explanations of both plans are required and support your discussions with relevant literature. (Business process pbns mr feuded in de wed count but etebnation is iterated).

Discuss how the managers would turn performance objectives into operations priorities and the resources that would be necessary for effective implementation of the new process tabour six hundred wont).

Using a Balanced Scorecard, discuss how the business performance can be measured post implementation (refer to the last three years of comParty annual reports and any other relevant data for improvement and target trends for 138M).

(Selaroed Sette carde start se ne inatoded in itochrunt but   mstun on each prosperave aanatodd. about hundred sods foe oath prorpcdive) Your work should be referenced including in text referencing with appropriate literature and form a logical and concise discussion.

The essential components for effective business operation management for Ocado in UK include different types of innovative models that have been adopted by Ocado for maximizing its profit as well as improvement of the business operations (Chang 2015). The customer behavior has shifted from shops to online grocery store then retailers for adapting the existing business demands as the fundamental change for the decade that is solely focused on online channel as well as commitment to provision of the best customer experience available on the internet. The reduction of legacy bricks as well as commitment affirms the business activities to become a cost leader as well as create a virtuous cycle between the goal efficiency and investment of Ocado. The retail mission is to move the products of supply to the customer’s home as well as well constructed models. As per Chesbrough (2013), delivery of this mission on the other hand has the customer performing picking, packing and delivering process by themselves. The grocery retail Ocado has a very high business competitor of other markets through offering online services, extra work and additional cost for the return as well as represents the fundamental channels to the retail Industry. In grocery shops, Ocado has well defined objectives from the essential commitment of removing significant cost on the position of supply chain. The grocery store of the centralization of the picking operation from large warehouses has been done which provides a larger size of the supermarket aggregating activities for giving the functional skills as well as use of automation technologies. Through the automatic technologies, distribution of Ocado is done directly from the parking facilities as well as the local spoke sites around the region (Choi 2017).

Defective business operation management is that create value for the customers in Ocado operation within UK. Farag (2015) stated that it also includes removal of numerous cost incurred in traditional of system of cost reduction models. The registration cost of stock from various different centers of distribution also significantly reduces the cost of stock into the details that is equivalent of a supermarket as well as the cost of the physical store network (Fleisher 2015). Further expensive real estate and multiple stock locations the manual process of economies of scale as well as management is essential because it is in current progress due to growth on the business and operation. Other different benefits of a business operation management of Ocado is the end model that drives the virtual section between improvement of cost economics as well as growth and investment proposals to the customers. According to Green (2014), the model provides natural ways to the customer have to determine delivered products to the customer that should be fresh as well as should take less time for reaching the house. Stock available from a single store is also an added advantage for Ocado to make them able for making new arrangement of extension available to the customers through very quick central location that helps them to add products for learning effective market strategies without high risk of options to the market. Further, the stock under the significant knowledge that has been developed resulted in a leading industrial delivery metrics that determines the customer service position as well the commitment to environmental friendly products that has been a sustainable business practice (Holweg 2014). It is supported by the operating model deficiency of the model ensuring that waste reduction within the industry is very high as well as the total model is very much energy efficient for distributing the process to its customers.

Evaluation of Issues Related to Introducing Online Ordering and Delivery Facilities

A major problem that is being faced by Ocado in grocery business in UK includes many products that are regularly brought online and can be impossible to be sold fresh online like fish. According to Kang (2016), the things are very difficult to sell online and the major problem in online grocery is perishable consumers. They are reluctant to have their fruits, vegetables as well as chicken to be selected by other individuals. The second major problem is the price as most of the product that are sold online is very highly priced compared to the groceries that are bought by the customers by themselves from the market. As per Krajewski (2013), consumers also does not like the shipping and service cost that is incurred on the products and they also apply on the charges for the individuals for picking up there vegetables, fish, chicken and selecting the best product. The selection and choosing of the best product in online grocery makes the customers reluctant to buy online vegetables, chickens and other grocery items.

The operation strategy performances include customer operations for integrating customer engagement as well as operation services for creating a distinctive customer experience with support (Li 2016). Ocado revenue as well as probability of the rules innovation development needs to be done accurately and precisely. Implementation of technology will help Ocado to improve market experience for providing confidence and trust providing them high quality products.

The customer care that has been identified between the customer expectations as well as customer perceptions includes the groceries that are selected by the online grocery Ocado that is not very much accepted by the customers of Ocado. According to Longoni (2015), more knowledge is gained between consumer expectation as well as management perception. This is another problem, which is faced by Ocado in the online shopping.

The most important issue in online grocery shopping is unwillingness of the customer to change most of the customer’s perception that waits to pay the delivery charge, which is taken by Ocado. Other challenges include difficulty in penetrating small towns by Ocado as the people of small towns prefer buying the grocery themselves. From the market, the gross margin is also a thing that focuses on horizontal expansion instead of vertical expansion (Lun 2016). Most of the people do grocery shopping and not very much willing to take or buy from online grocery. Further the homemakers are usually not tech savvy and thus do not prefer online grocery shopping. The inventory management is also not very much efficient and up to the mark as well as the infrastructure for Ocado to provide fresh fruits and vegetables to the customers is very poor (O'Loughlin 2013) .

Comparison and Contrast of Different Operations Models in the Sector

The 4 V's of operation management within Ocado is the volume dimension, variety dimension, variation dimension as well as disability dimensions. According to Pantaleo (2014), the volume dimension provides high volume but low cost in the production. The volume of the operation is the key by which the business is organized and hence official operation is important for Ocado to perform a systematic work to standards as well as check the process. The vanity dimension is an example for distance between different types of products that is available in Ocado. The variation dimension is also the prefabricated customized standard pricing as well as control of cost that is done very easily that includes courier companies taking the package online for the retail store (Peltier 2013).

Different types of business model that is used by electronic commercial business such as the Ocado involves business to business, business to consumer, consumer to consumer, consumer to business, business to government, government to business and business to citizen models. As per Reim (2015), the business-to-business model follows product line in which product is supplied from one business to another business for example the wholesaler places an order on the company's website which is also delivered to them by the company. Business to commerce is the model, which is followed by businesses providing the product directly to the customer. Ocado follows this business to consumer business model in which customers places the orders into the Ocado website and Ocado provides the order to the customers respectively. Consumer to consumer business model is another business model in which the consumer uploads to the internet that needs to be sold to the other consumer of the business (Sepehrirad 2015).

The centralized and decentralized inventory and supply chain is another key aspect in business to consumer business models in which the business products are transferred to a common warehouse which is known as the hub, From the hub it is transferred to small sectors or spoke that is situated in different cities in a country (Tornjanski 2017). When order is placed from the customer to the Ocado website, they transfer the product to the hub that includes all the orders for a particular day within a deadline. The logistics of that supplier Ocado then supplies the product to small units as well as local homes situated in different cities. Pintelon (2014), from the local hub the product for the transfer delivery and logistic people supplies to the customers. The hub and spoke system was first invented by the Wal-Mart and is an effective system of business to consumer model. However spoke system is not very much applicable in case of Ocado as well as other business service to other market as the grocery store eCommerce deals with fish and other vegetable products that might get spoilt if they take too long for delivery. It also involves chicken which if takes long for delivery as well as retains in the warehouse for a long time will be spoilt (Zarei 2013). This model is not very much effective, as the customer, value chain should be improved by the product delivery in addition to the customers. The business of Ocado should ensure texting the customers whether they are home or not for delivery of the fish products and the freshness of the product. The cost implication in such business sustainability of the business is very high as well as e-Commerce has been rising by around 56% of the country’s that denotes most of the people prefer shopping from their home (Zikmund 2013).

The parcel conundrum is referred to as the situation in which the logistics firm are unable to deliver the products to the customers on time. Part of the problem of Ocado individual drive involves device for successful delivery of the person for the first time on the logistics company. According to Babin (2013), to counter the delivery to the door and successful delivery businesses needs to text on the performance of the delivery option. The delivery problem causes serious reduction in percent of the first time in UK as well as an estimated 1 billion GBP re-deliveries (Carr 2013). People often complain regarding the delivery performed by the deliveryman without knocking for saving their time over the courier to deliver laptops and other valuable items making the customers waiting before the delivery is provided. Thee logistic problem also involves logistics delivery person not properly delivering a product to the customers on time and leaving a note that they try to provide the delivery without completing as the person was not home. Customers paying for premium services also expect to get phone calls regarding the device, which is unsuccessful (Bbc.com 2017).

The parcel conundrum can be solved by tracking the courier services. Both courier services as well as the customers can adopt tracking service. The courier services should also be able to track the customers if they are home or not through GPS tracking devices similarly, customers should also be able to track the courier services 24x7 through GPS live tracking applications on phone that will help both of the parties to get an exact position of the individual’s position. Smartphone application should be divided by helping the courier as well as the customers to locate the position of both parties to avoid unnecessary and unavoidable circumstances and communication gaps (Yeh 2015). Lock boxes should be located in most of the customer’s houses outside including private the lockers in railway station. In case of failed delivery cases, logistics person should take a picture of the place of the delivery including the parcel and share it with their customers. All these are environmental friendly technologies, as the logistics will require traveling less to other customer’s house locations and just dropping the parcel in their railway locker secured by a pin. Thus, the total emission of CO2 will be reduced at much lower level.  

According to Chan (2017), these technologies if adopted by Ocado will help them to maximize their profits and effectively increase the efficiency of the logistics support. The customers will also be able to complain regarding the grocery items that need to be delivered to the on time. Moreover the logistic system within grocery online delivery should also provide high quality services as it involves the delivery of delicate products like vegetables, meat, fish and fruits that needs to be delivered on time or will get spoiled and rotten (Yue 2017). The customers are also very much selective as well as delicate regarding grocery items that are not provided to them in proper condition, which will make them upset and hence the delivery system should be highly efficient for Ocado.

Customer Behavior and its Impact on Business Operations Management

Activity

Sub-activity

Description

Information collection

Collecting information from sources

Different information sources regarding other similar business process in ecommerce need to be analyzed by Ocado. The problem definition is also done for all the major stages regarding the closed activities (McDermott 2015).

Performing CATWOE analysis

Process of identity transformation

The identity transformation requires sources of information regarding other e commerce business dealing with grocery online stores.

Identification of world view

The perception of the world regarding the e commerce of grocery store needs to be identified as well.

Identification of customers

The customers need to be identified for the business by Ocado.

Identification of actors

As per Bensoussan (2015), the major actors of the transformation process needs to be identified by Ocado.

Identification of the environment

Finally, the environmental analysis needs to be done with major constraints of the activity systems.

Formulation of definition of roots

The root for the formulation needs to be defined and approved for the process to continue and start over again by Ocado.

Table 1: CATWOE activity table

(Source: Created by the author)

Figure 1: Rich picture for Ocado

(Source: Created by the author)

Figure 2: As Is diagram for Ocado

(Source: Inspired by Hardman 2015)

The improvement of process is analyzed suing As-Is and To-Be diagrams that is an effective technique in transformation of the visions into results and achievements through the development and population of the BPMN diagram. The As-Is and To-Be diagrams has helped Ocado to support and improve its logistics. The main idea is that when an order is placed, Ocado will check for the availability of the order. Further the order will be processed and shipped to the warehouse. Then the order will be transported to the main hub subsequently to the local hubs and regional hubs. Finally they will be delivered to the customer by the delivery support of the logistics team.

Figure 3: To be diagram for Ocado

(Source: Inspired by Hardman 2015)

The managers can turn performance objectives into operational priorities through developing a strategy required for Ocado. The first stage encompasses the process as well as the strategies required by the organization to formulate in developing essential strategies. The management needs to share several common characteristics for clearly articulating quantifiable vision as well as achieving multi-time frame (Helo 2014). The gap of value needs to be analyzed and discussed around the specific and quantifiable strategic decisions as well as understanding the external and customer environmental impact performance. According to Pack (2016), the strategies that has been created by the organization through balanced scorecard method as well as the best practice organization should be minimize by undertaking the activities to formalizing the cause and effect relationship among the drivers as well as business outcomes. As per Shim (2016), rigorously developing the strategy map, the strategic objectives also needs to be scaled down as per the activity level for developing the small setup strategic measures.

It is required for monitoring the performance of the devised strategy as well as the fund portfolio used to be selected for driving the strategy for Ocado as well as well as any accountability. Specific measures and strategic objectives regarding the alignment of organization are also taken into account for exporting the organization business parties. The defined objectives by the manager has a distinctive characteristics adopting new strategies requested to people working as a team and accepting the change that is needed for the reason. It is also essential for the managers to understand organizational needs for communicating the strategies to the employees of the Ocado (Malhotra 2013). Organizational objective alignment of senior managers ensuring diverse operation on units of the business techniques needs to be functional ignoring total quality management operation and needs that is to be further developed and embedded into the financial management process. Number of the techniques of rolling forecasting drivers models as well as activity based costing should be in court for the increasing cost transparency as well as a real time selection for the project should be morning. Moreover testing in adopting the defined performance objectives of the organization need to be developed and aligned as well as operations along with the strategies and mature application of analytical techniques that needs to be determined. The relationship between the matrix as well as understanding the causes behind performance data needs to be checked as well (Cagliano 2015).

Cost Reduction Models and Supply Chain Management

The major resources that are necessary for implementing the process that has been revised for improving the logistics support for Ocado is advanced technological implementation of lock devices in which the persons can be dropped with their parcel that will be delivered with security pins. Ocado as well as customers for keeping a real time tracking on the position of both parties individual should adopt GPS tracking units.

Financial perspective

Customer perspective

Goals

Measures

Goals

Measures

To prosper, succeed and survive as the best online and offline grocery store

Checking the cash flow, quarterly sales as well as operating income through divisions and increased share in market as well as rate of equity.

Providing new products, responsive supply, supplier preferred and customer partnership

It helps in percent of the sales from new products, percent of sales from proprietary products, delivery on time, sharing key purchase accounts, ranking through key accounts and number of engineering efforts for cooperation.

Internal business perspective

Innovation and learning perspective

Goals

Measures

Goals

Measures

Capabilities in technology, excellence in manufacturing, productivity design and introduction of new products

It can be measured through manufacturing competition with geometry, yielding cycle time as well as unit time cost, silicon efficiency as well as efficiency of engineering and the introduction of plan and schedule.

The technology leadership as well as learning from manufacturing, market time and focus on products

To develop the time required for generation as well as time for maturation, percentage of products, which is equal to 80%, as well as introduction of new products compared to the competition.

Table 2: Balanced scorecard for Ocado

(Source: Inspired from Cagliano 2015)

Reference

Bbc.com, 2017, The parcel conundrum, Available at: https://www.bbc.com/news/magazine-18709348 [Accessed 16 May 20174]

Chang, D.S., Yeh, L.T. and Liu, W., 2015. Incorporating the carbon footprint to measure industry context and energy consumption effect on environmental performance of business operations. Clean Technologies and Environmental Policy, 17(2), pp.359-371.

Chesbrough, H., 2013. Open business models: How to thrive in the new innovation landscape. Harvard Business Press.

Choi, T.M., Chan, H.K. and Yue, X., 2017. Recent development in big data analytics for business operations and risk management. IEEE transactions on cybernetics, 47(1), pp.81-92.

Farag, F. and McDermott, P., 2015. Using soft system methodology to approach social value outcomes in public procurement. Proceedings of Going North for Sustainability: Leveraging Knowledge and Innovation for Sustainable Construction and Development, 3(2), pp.23-25.

Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective application of new and classic methods. FT Press.

Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective application of new and classic methods. FT Press.

Green, P. and Hardman, S., 2014. Service quality evaluation: a systems thinking approach. J Soc Sci, 39(2), pp.169-177.

Holweg, M. and Helo, P., 2014. Defining value chain architectures: Linking strategic value creation to operational supply chain design. International Journal of Production Economics, 147, pp.230-238.

Kang, S., Shim, D. and Pack, P.H., 2016. A Study on the Problems and Policy Implementation for Open-Source Software Industry in Korea: Soft System Methodology Approach. Journal of Society for e-Business Studies, 20(4), pp.12-23.

Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management: Processes and supply chains (Vol. 1). New York: Pearson.

Li, J. and Wu, D., 2016. Constrained Nonlinear Models for Optimal Allocations of Resources in Business Operations. Journal of Accounting and Finance, 16(7), pp.11-13.

Longoni, A. and Cagliano, R., 2015. Environmental and social sustainability priorities: Their integration in operations strategies. International Journal of Operations & Production Management, 35(2), pp.216-245.

Lun, Y.V., Shang, K.C., Lai, K.H. and Cheng, T.C.E., 2016. Examining the influence of organizational capability in innovative business operations and the mediation of profitability on customer satisfaction: An application in intermodal transport operators in Taiwan. International Journal of Production Economics, 171, pp.179-188.

O'Loughlin, R., 2013. Teacher perceptions of a language curriculum: A CATWOE analysis. Studies in Linguistics and Language Teaching, 24, pp.93-106.

Pantaleo, A., Candelise, C., Bauen, A. and Shah, N., 2014. ESCO business models for biomass heating and CHP: Profitability of ESCO operations in Italy and key factors assessment. Renewable and Sustainable Energy Reviews, 30(3), pp.237-253.

Peltier, T.R., 2013. Information security fundamentals. CRC Press.

Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models and tactics–a systematic literature review. Journal of Cleaner Production, 97(2), pp.61-75.

Sepehrirad, R., Azar, A. and Dabestani, R., 2015. Methodology of Soft Operational Research. The International Journal of Humanities, 22(3), pp.21-34.

Tornjanski, V., Marinkovic, S. and Jan?i?, Ž., 2017. Towards Sustainability: Effective Operations Strategies, Quality Management and Operational Excellence in Banking. Amfiteatru Economic, 19(44), pp.79-94.

Van Horenbeek, A. and Pintelon, L., 2014. Development of a maintenance performance measurement framework—using the analytic network process (ANP) for maintenance performance indicator selection. Omega, 42(1), pp.33-46.

Zarei, B., Azizian, S. and Ghapanchi, A.H., 2013. Road freight information systems: a soft system methodology approach. International Journal of Logistics Systems and Management, 14(2), pp.161-178.

Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods. Cengage Learning.

Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods. Cengage Learning.

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