Perspectives on operations management - Essay Example

Perspectives on Operations Management Perspectives on operations management Outline: Introduction of Operations Strategy Operation Strategy fornew Wal-Mart Store Key Factor of Operations Strategy Implied Performance Objectives Justifications and Recommendation Perspectives on Operations Management Operations management strategy is simply a tool which can help the organizations to carry out their business in efficient manner. Operations strategies are the main key of measurement of performance of any business entity. The main concern of business entities is how they will survive and can continue their functions in effective manner. For this purpose, an efficient operations strategy set the long term directions for the business and these directions ensure the future success of any organization. An efficient operations strategy can help the business entities to win the race and stand at top of the crowd in competitive environment. Operations Strategies for new Wal-Mart store X Company is the chain of independent retail outlets in Hartwell in Essex and opening a new Wal-Mart store at edge of the town. The advice is needed about the potential operation strategy in response to the recent opening of Wal-Mart store. I have prepared a plan for the future business operation strategy for the new Wal-Mart store. There are some extracts of my research are mentioned below Operational Strategy According to many successful financial advisors, Operations strategy for any business has a direct impact on the profitability levels and corporate strategy. Structural design is the main element of the operations strategy. As the Company X is running its business as a retail outlet and want to set the new business operation strategy for new Wal-Mart store. There are some key points for the structural design of new operations strategy. Meet the target demand: As the company is opening its new Wal-Mart store at the edge of Essex. So the target customers are the people of Essex. In addition, the company can take advantage form the new customers because of the location of new Wal-Mart store. It is clear that, the company is going to meet with the high level of customer demand. In this case, the company need to ensure first that it have the capability to meet with the high level of demands. For this purpose, company should access the target demand level and take certain steps to meet with the target demand. Cost of the products: If the company want to win the competitive race, then it should set the prices of their products that are unbeatable. Management should set the prices that provide the good value for their products. Services: The management of the new Wal-Mart store should ensure to provide the high quality services to potential customer. The management should provide the services according to the customers’ necessity. Use of Technology: In current modern trends, technology is referred as a primary toll for an efficient operations strategy. In the case of retail business technology can be used in effective manner to manage the day to day operations of the business. For example, use of security cameras to keep an eye on any unusual activity or use of bar code reader to track all the sales in efficient manner. Layout and design of new Wal-Mart store: The secret of efficient operations strategy for any retail business lies in the layout and design of retail outlet. That’s why the management of the new Wal-Mart store should set a catchy layout and design for its new store that will save the time of potential customers. The layout should be in such way that enables the customer to access all the necessary things easily. The management should set the service layout that can create an open shopping environment that helps the customers to find the things what they are looking for quickly. Selection of Employees: Selection of staff for new Wal-Mart store is one of the primary factors that can help to develop good operations strategy. Skilled and trained staff can help to manage the routine operations in more appropriate manner. So the management should need focus to choose the quality staff team for their new outlet. Training of employees: The management of new Wal-Mart store should train their employee about the potential challenges. The management should inform their employees about all the key challenges of new business. Centralized or Decentralized: The concept of Centralization and decentralization is much important to develop an efficient operations strategy. This means that how the process in new Wal-Mart Store will work. For example, the management should ensure that people have an access to the cash counter and pay for their shopping easily. The concept of centralization and de-centralization can be used for this purpose, if the demand and the customers’ burden are so high then the management should make the cash counter for each department separately. On the other hand, if the management think that they can easily manage the burden then they can use the technique of centralization. This means that all the functions will be controlled from one centralized system. Implied Performance Objectives of These Strategies There are many performance objectives can be achieved through following these potential strategies. Some of the core objectives are mentioned below The first key factor of the potential operations strategy for the new outlet is meeting the target demand. If the management of the new Wal-Mart Store is able to get fulfil the target demand then it will clearly build the reputation of the new store. People will have the confidence that they can purchase everything form new Wal-Mart Store. The factor of cost of the products will capture the customer attention towards the products. If all the products are offered at reasonable price on new Wal-Mart Store then the people will prefer to buy form there and this factor directly increase in the revenues and profitability levels. The use of new technology for business functions can help the management to carry out the business operations in efficient manner. For example, the use of software to record the sales or use of Bar code reader device will help the management to know the level of sales each day and the company can keep an eye on the stocks. The layout and design factor enable the customer to access the products easily. This will save the time of the potential customer and increase the goodwill of the new Wal-Mart stores in consumers’ mind. Customer’s satisfaction is ne the main performance objective of any retail outlet. The strategy of Selection and training of employees help to achieve this performance objective. If the customers are satisfied form the staff behaviours then it is the strong possibility that they will come again for their shopping. There are many advantages can be achieved form the centralized and decentralized processing. For example, the threat of any fraud can be minimized through centralization of all processes. In short, all the key factors of the operations strategy for the new Wal-Mart store can help to achieve both of short term performance objectives and long term corporate objectives. Justification and Recommendations According to me the management of new Wal-Mart Store should take certain steps to implement above operations strategy. Some of the key recommendations are mentioned below The management of new Wal-Mart Store should introduce proper inventory counting procedure to keep an eagle eye on the stock levels. For this purpose, computerized techniques or costing methodologies such as EOQ model can be used. This step will help to fulfil the meet with the levels of demand. The management should set competitive and unbeatable price for their products. The price should be set in such way that proves the products can give the good value to consumer’s money. Price survey results or any other industry information can be used for this purpose. It is also recommended to management of new Wal-Mart store to use the latest technology for the maximum satisfaction and ease of the customers. Technology include such as business software, security cameras, computerized cash counter or any other those are related to same industry. Management should introduce proper selection criteria to select their employees. In addition, proper training courses are offered on monthly or weekly basis that provide the guidance to employees about the key challenges. As the Wal-Mart stores contain all the items. So it is recommended to the management of new Wal-Mart store that they should use mixed approach to carry out day to day operations. This mix approach includes both centralized and decentralized functions. For example, there should be a separate cash counter for each department. Like, electric department should have no concern with food department. This can create a decentralized approach and all the departments can carry out their function independently in efficient manner. On the other side, all the functions should be controlled by one main control department. For example, all transaction should form each department should be monitored through a main control system. References: WATERS, C. D. J. (1999). Operations management. London, Kogan Page. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=62425. SLACK, N., CHAMBERS, S., & JOHNSTON, R. (2001).Operations management. Harlow, Financial Times Prentice Hall STEVENSON, W. J. 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