Operations Strategies at Marks & Spencers Clothing Industry - Assignment Example

? Operations strategies at Marks & Spencer’s clothing industry Executive Summary Operations strategies form important bases for structuring the business strategy of any firm. A firm can use operation strategies to out-compete other organizations and stay top in the market. Most firms use operations strategies to stay top in the market. Such strategies relate to the cost, quality, service, flexibility, of production in the company for instance at Marks and Spencer. The product design process is important for the success of any firm. This is because it governs the cost and time for delivering of new products. M&S develops measures that reduce the cost of production. Most of the strategies are in the product design process. They include integrating the product design process and the designing the product. This also reduces the time it takes for a new product to reach the market. Most companies segment their market in order to manufacturer products specific to certain market segments. M&S does its segmentation by developing sub-brands for its customers. The company has three product ranges the classic range, autograph range, and Per Una range. The company manufactures these products according to the needs and expectation of the three different ranges. The qualifier for the Classic range product its classic and stylish identity, which define most of the classic range products. Another characteristic of the classic range is its good quality. Such order winning characteristics and qualifiers lure the customers into buying these products. The qualifier for Per Una is its high-fashion design trends that make it suitable for teenagers and the young generations full of new expectations. The autograph range display unique designs that are suitable for the design-lovers. All the three clothing ranges at Mark and Spencer relate to some specific operations objectives. These are quality, speed and cost. The classic range manufactures quality products from fabric of very high quality. In terms of speed, the Per Una is an exception since it has to catch up with the changing trends in the clothing industry. The Per Una range also tops in terms of the cost objectiveness. The manufacturing process and the location of distribution stores all depend on these three operations objectives. Tables of Contents Introduction Operations strategies include all actions that a firm conducts to support the main business strategy. Through development and implementation of such operations strategies firms create strong foundations in their markets thereby outcompeting other competitor firms. Through a particular operations strategy that firm will be able to develop products that win the market by outcompeting products from other companies. To make products succeed in the market, firms set their operations strategies in relation to cost, quality, service, flexibility, and other factors. The situation is similar even in the clothing industry. For instance, Mark’s and Spencer’s use some operations strategies in order to remain successful in the market (Johnson, 2003). This forms the core of this paper. Effects Product design process The product design process is important in developing products that will eventually succeed in the market. The design process must be very innovative (Hsiao, 2004). This process makes products as per the requirements of the customers. In most cases companies use feedback from customers to manufacturer products that meet the needs and requirements of the target customers. Good product designs heavily depend on individual designers (Hemoen, 2013). Marks and Spencer is one of the most successful retailers in the UK due to the numerous competitive advantages the company offers. This attaches to the design process that ensures the company offers good quality products at reasonable prices. The company’s competitive advantage is also because it only sells its own products. The company develops measures to reduce the cost of production through reducing the amount of materials and energy used during production. Plan A campaign is one of the initiatives the company uses to reduce the cost of product development process. The campaign includes simple packaging of the products, and recycling (M&S, 2013). All these are measures to minimize energy use in the product design process. Reduction of cost in the product design process can result in the overall reduction in the cost of products. Marks and Spencer uses such cost-benefit analysis to record profits and stay top in the market. Manufacturing products with affordable prices is one of the operations strategies that ensure high performance in the market place for Marks and Spencer’s products. In any firm time of delivering the product is very important. This becomes especially sensitive when it comes to products that are keen on the changing fashion trends. For a product set for a particular fashion trend to be successful in the market it has to reach the market when that particular fashion is still on. Otherwise, other companies will produce products that become successful. The consumers also have the opportunity to contribute to the overall design process of companies (Rawsthorn, 2012). To increase the time products reach the market, the designing process and manufacturing the product should be simultaneous. There should be little time between the various processes of manufacturing a particular product. This will ensure that the company delivers the new product into the market on time. The different functional areas within the company must work together to ensure that the new product reaches the market on time. The timing should also be proper to unleash the product in the market when the fashion is still on. Different products therefore differ in their prices and delivery time to the market (Boyaci, 2003). Customer segments and needs, order winners and qualifiers at M&S firm Segmentation forms an important step in the business strategy of any organization because it offers advantages to both the consumers and the company. Marks and Spencer has customer segments in which it treats a certain group of customers in similar ways. M & S uses demographic criteria to segment it customers. It targets the 30s age group with high income and executive occupation. M& S focuses on the customer segments and needs its business strategy to the extent that it develops sub-brand specifically for a given customer segment. For instance, the autograph range mainly targets the modern and urban look woman between 30s and 40s. Another high selling product range for the company is the Per Una, which introduces romantic patterns and knit items to women between the age of 30s and 40s. Segmentation based on fashion and quality is very strong and can even be more than segmentation based on price. Segmentation at M&S also focuses on the price in which most of the company’s products have premium prices. The design and operations strategies for manufacturer, distribution and supply of products are important factors to consider for any firm aiming at being a leader in the market (Ray, 2002). Marks and Spencer is one of the companies keen on design and operations strategies to satisfy customer needs. The company has three sub-brands including perfect and classic collection, Per Una, and Autograph range. All these ranges have different design processes and operational processes to meet the needs of different customer segments (UKEssays, 2013). The classic range, released in 2001 was to meet the needs of the classic stylish and mature customers. The requirement of these customers is comfort, high quality, style and fitness. A qualifier for the Prefect and classic range of M&S products is that it shows the traditional woman. A qualifier is a competitive characteristic a product must show to enable it compete effectively in the market. The most important qualifier for the Classic range product is the fact that it blends both the classic and style at the same time. The product also lures the customer by its reasonable price affordable to most consumers. Qualifiers are the attributes customers expect from the products they are purchasing (Mahadevan, 2010). An order winner is a characteristic of a product that that lures a customer into purchasing that particular product instead of its alternative from a different company. Order winners make customers view a given product as superior to the other similar products in the market (Walters, 2006). An order winner results into distinctive competence. Improving distinctive competence involves adjusting the price and quality of the product, service, and flexibility of the firm. Another order-winning characteristic of the classic range is the fact that its products maintain good quality even after several times of washing. The customer segment for this range represents people with busy lifestyles, wear the clothes everyday therefore wash several times. Quality will be of essence to such group of customers (UKEssays, 2013). Announcement of the Per Una range was the most successful M&S sub-brand in 2008, topping 25% of Marks and Spencer’s women ware sales up to ?500m in 2008 (Bearne, 2010). The qualifier for Per Una is that it follows high-fashion designs for customers who love catwalk-inspired pieces. The customer segments and need for Per Una is between 25 to 35 years of age. The segment for this range is for customers who follow fashion shows closely. The most important order winner for the Per Una range is that it offers teenagers and the young generation with high-designed collections, which follow up to date fashion trends. The products are also available at affordable prices. The third sub-brand for Marks and Spencer is the autograph range. This range targets a segment of customers who particular treasure cutting-edge designs. These customers love wearing the best designs in the market. Offering the most unique and specific designs form the qualifier and order-winning characteristics of the autograph range of Marks and Spencer products. This targets customers found in high social levels in the society. The products bring out the best shapes of people wearing them therefore forming the best choices for people looking for looks other than quality. The autograph range also has designs specific not only to the youths but also to the kids (UKEssays, 2013). Classic ranges Autograph range per una range Customer segment Over 45 30s-40s 25-35 Customer needs classic style and mature customers Modern look New romantic patterns Product range Products for the mature Products for Products for the youths Design changes Maintains the classic look Cutting-edge designs Up to date Flashy looks Price affordable Moderate prices Affordable prices Quality High quality High quality High quality Sales volumes SKU 25% of M&S sales in 2007 Order winners Classic and stylish Unique and best designs New teenage designs Order qualifiers Maintains quality even after washing Fashionable design High-fashion design Operations priorities Meet needs of the traditional woman Transform with the changing trends Innovate new designs with changing fashion demands Polar diagram analysis of Operations performance objectives Operations performance objectives for the three clothing ranges at M&S include quality, speed, dependability, flexibility and cost. These operations performance objectives form the base for performance measurements (Neely, 2000). These performance measurements quantify specific action in organizations (Pearson, 2000). Figure 1: Polar diagram of the operations performance objectives Polar diagrams are very useful for representing operations performance objectives depending on their relative contribution to the business strategy of the firm (Nigel, 2007). Quality Quality involves producing the best products, which adhere to the specification set by the design processes (Barnes, 2008). Producing quality products is one of the strong holds of Marks and Spencer. The classic range manufactures products using high quality materials to maintain the quality aspect. The autograph range focuses on producing such quality in the market, while per Una concentrates on both market and product quality. Speed Manufacturers concentrate on releasing their finished products on time into the market. Classic range of products ensures that it has its products in the market to counter the time effect. Per Una reduces the time on product design to deliver products into the market. This is ensures that the products reach the market on time. Per Una has to release its products faster into the market to meet the new trends. Time between customer request for a product and time of receiving that product is equally important (Greasely, 2006). Cost It is important to consider the cost of manufacturing products. The production has to be cost objective (Elrean, 2005). Classic collection reduces the cost of its products by having large volumes of products in the market through reducing operation costs (UKEssays, 2013). Manufacturing products at lower cost is very important to the classic range than the other two clothing ranges. Some people however, criticize autograph of being pricey yet it lacks is not as exclusive as the price demands (BBCnews, 2001). Dependability This mainly involves reliability and delivery of products on time (Anil, 2009). It is clear from the paper that the Per Una delivers its products on time than autograph and classic. The classic range may adjust delivery time of the products. Flexibility Flexibility is the ability to change and adopt into a new strategy (Mario, 2006). Due to the high frequency of products under the Per Una, and autograph, these two ranges of products are very flexible that the classic range. The location of the product offers a place where the customers can purchase the product. Mark and Spencer use both physical stores and virtual stores as distributing channels for its products. The latest development in the product distribution channels is the extensive use of the internet. The M&S website offers information about the company as well as online selling. The site has individual pages for purchasing different products. In the physical stores, women’s items are in one place therefore, it is easy for customers to find these products. Therefore needs to release its products faster than the other three products (UKEssays, 2013). The manufacturing process therefore has to the quality, time, and cost of delivering the products in the market. The location of the distribution channel has to be in line with these operations performance objectives. Conclusion Operations strategies include are important for a firm as it supports the main business strategy of the firm in question. Firms set their operations strategies in relation to cost, quality, service, flexibility, and other factors. The product designing process will affect the operations performance strategies for Mark and Spencer Company. Segmentation is important in the business strategy of M&S because it helps in leading the clothing market. Operations performance objectives for the three clothing ranges at M&S include quality, speed, and cost. 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