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Service Operation Management: Retail & Food Industry - Assignment Example

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Service Operations Management: Retail & Food Industry Al’s Store – Home delivered grocery and ready to cook meal service Name: Student Number: Assignment Due Date: 5 August 2011 Lecturer: Unit name & Unit Code: Table of Contents Executive summary 3 Introduction 4 Competitive Analysis of the Industry 5 Table (B): Competitive Analysis 6 New Service Offering: Home Delivered Grocery and Ready to Cook Meal Service all 100 percent organic 7 Figure (A) Al’s Store focus for Competitive Advantage 8 Targeting and Positioning of the New Service Offering 8 Changes in Internal Operations due to New Service Offering 9 Designing Operating System to Support the New Service 11 Customer Behavior toward N…
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Service Operation Management: Retail & Food Industry
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Download file to see previous pages The company in question, Al’s Store is a local partnership concern between two brothers catering to a suburban community. The company is facing threat of customer shift towards hypermarkets and superstores on account of low price and variety of items under one roof. Hence in order to retain market share management decided to create a niche for itself in the market by shifting to organic and healthy food options and offer online grocery shopping and ready to cook meal service (100 percent organic) with home delivery option. The service is targeted towards working adults of executive level who seek convenience and quality both while managing busy households. The entire setup would place some financial burden over the management that can be uplifted by adding a new partner or taking loan from a bank. For the new service additional workers would be hired and online shopping portal would be established and maintained. Technological changes such as purchase of real time inventory management software linked to supply chain management would be adopted. Delivery vans and drivers will be outsourced. Operations management would be designed keeping in mind the concepts of quality, reliability, speed, health and convenience being the focus of the new service which would shape the customer behavior in the favor of Al’s Store paving way for increased profits and eventually expansion in to other localities as well. Introduction Al’s Store is operating since 50 years in a suburban area close to the main business hub. They have 3 branches covering the entire residential suburb and a warehouse with central location giving all branches excellent reach and timely delivery. The store offers all food and non-food grocery items as well as medicines. Employees of the company are local residents. Upper management is well educated and trained, where as the low end workers such as cashiers, teller and helpers are local young adults given basic training of how to efficiently run the counter with good speed and offer effective customer support. Entrance of hypermarkets, one stop shops as well as busy lifestyle of people and their changing preferences related to quality, type and cost of grocery has taken away a toll on Al’s Store market share. Further time pressed lifestyle has shifted consumer’s preference to shop online to save time. Due to time shortage busy households are forced to eat out increasing their cost of living as well as making them compromise on food quality and health. The report is focused on re-assessment of the company’s strategy. A new service is being offered to overcome the company’s existing weakness and giving it a special uplift that is aimed at re-capturing the lost market share. The report shall discuss a systematic review of how the Service Operations Manager identifies, plans, markets, executes and maintains the new service offering without compromising much on company’s operating capacity and financials. Competitive Analysis of the Industry Super markets and grocery stores come under the retail industry. It is a highly competitive and ...Download file to see next pagesRead More
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