The Real World of Management - Assignment Example

The Real World of Management Table of Contents Part 3 Outlining Essential Components for Effective Business Operations Management for Aldi Supermarket (Aldi) in the UK 3 Evaluating Potential Issues to be faced by Aldi through Using Soft System Methodology 5 Operation Strategy Priorities Model 7 Compare and Contrast of Different Models Used by Online Retailing Business Industry 8 Recommended Delivery to the Customer Conundrum 9 Part 2 10 Root Definition, CATWOE and Detailed Rich Picture Illustration 10 Illustration of Changes in the Business Process Plan including “AS IS” and “TO BE” 12 Part 3 14 Strategy to Turn Performance Objectives into Operations Priority and Resources 14 Measuring Business Performance of Aldi During the Post Implementation of SSM 17 References 20 Part 1 Founded in the year 1913, Aldi Albrecht Discount (Aldi) is one of the oldest and widely renowned German-based family companies in the global retail industry. The company operates its range of retailing operations through strong discount supermarket chains across the leading and growing markets around the world. During the period of 1960s, Aldi had been observed to expand its strong retail chain by establishing 300 retail stores in different provinces across Germany. In relation to the present business environment, Aldi performs a wide assortment of retailing operations through its two major and independent groups such as ALDI Nord (North) and ALDI Süd (South) (Emsell, 2011). The organisation currently operates in more than 17 different countries through its independent retail chains. With regard to the current retail business operation of Aldi in the United Kingdom, the organisation operates 500 stores with a market share of 3.6% in accordance with the business performance of the year 2013 (Yeomans, 2013). The organisation operates a conventional form of retail business operations through encompassing a number of global brands under its independent retail domain. Outlining Essential Components for Effective Business Operations Management for Aldi Supermarket (Aldi) in the UK Defining an effective set of components in the business operations management has long been witnessed as an integrated process for an organisation to make more efficient use of the operational functions (Kumar & Suresh, 2009). In relation to the current business functions of Aldi in the UK market, the organisation generally incorporates a strong set of practices that enables it to increase its independent operations of retailing. However, due to the emerging competitiveness in the current UK retail business industry, it is essential for Aldi to practice different other essential operations management components to achieve competitive advantage in the respective market of the UK. A few of the major and highly essential components for Aldi have been briefly discussed to increase the business efficiency of the organisation in the growing UK retail industry. Operations Efficiency Developing an efficient framework regarding the different functional activities of operations management can be regarded as a major component to increase the overall performance of an organisation. In relation to the growing and competitive scenario of the UK retail industry, Aldi should highly focus on increasing efficiency of each functional attribute along with their performance in different sectors of the organisation’s operations management process. In order to increase the efficiency of the retail activities, it is essential for Aldi to take adequate measure to improve the performance of its supply chain activities. In this context, the selection of an effective supply chain model would enable the organisation to reduce potential threats from different segments of its supply chain management operation (Griffin, 2006). Reliability and Adaptability Reliability and adaptability can also be considered as effective components that have major influences on the operations management process of an organisation. In order to achieve the predetermined goals of Aldi, it is essential for the organisation to maintain adequate reliability while performing retail functions in the competitive UK market. In the similar purview, the operational activities of the organisation should also focus on meeting the growing demands of the retail customers that are driven by the changing trend of their purchasing decisions. Correspondingly, it is also essential for Aldi to maintain adequate accountability of its operational functions while performing business operations in the emerging retail industry of the UK (Ketchen & et. al, 2008). Conversion Process The conversion process can be considered as a key concerning factor associated with the structure of a particular operations system including planning along with management and improvement activities. Therefore, it would also play a crucial role for Aldi to build a strong position in the UK’s retail industry. The continuous development of the conversion process would help the organisation to monitor each supply chain activity ranging from the procurement of goods to their final deliverance to the consumers (Kumar & Suresh, 2009). Evaluating Potential Issues to be faced by Aldi through Using Soft System Methodology Soft System Methodology (SSM) In relation to the developmental stages of the SSM framework, it has been considered as a ‘learning and meaning development tool’ which helps to critically evaluate issues to be faced by an organisation while implementing business concepts in the real world. With regard to the SSM methodology, it involves seven major stages that can enable to critically evaluate potential issues to be faced by Aldi while performing its retail operations through online (Solomon, 2008). The following figure depicts the major seven stages of SSM along with their structural sequences. Figure 1: Soft System Methodology Framework (Solomon, 2008) Stage1. Problem Situation: Unstructured The stage signifies the situation in which Aldi would face difficulties after the implementation of online retailing in the UK market. The organisation would seek for adopting relevant measures to overcome the potential difficulties. Stage2. The Problem Situation: Expressed In this stage, the problems to be faced by Aldi would be expressed by avoiding structuring the potential issues along with determining to keep evaluating its online business strategy. Stage3. Root Definition of Relevant Systems The stage intends to recommend effective and systematic thinking regarding the situation in which Aldi would face issues associated with its online business. In this stage, the root classification of the relevant system is defined. Moreover, the stage would also focus on selecting effective measures to address the situations relating to the issue associated with online business and delivery of goods to the door of customers. Stage4. Formulating Conceptual Models This particular stage would enable the organisation to define effective conceptual models in line with the situation raised by the implementation of online retailing in the UK market. Stage5. Comparison of Stage4 with Stage2 The conceptual models that have been selected by the company would be compared with the actual online business strategy formulated by Aldi to perform online business in the UK. Stage6. Feasible and Desirable Changes In order to effectively deal with the potential issues, the stage would enable Aldi to ascertain the desirable level of the management along with enabling to evaluate feasibility associated with the problem situation. Stage7. Action to Improve the Problem Situation In this stage, the situation handling team of Aldi needs to explore potential accommodation by evaluating the possible external aspects relating to the different ideas and interests regarding the proposed new strategy of accepting orders online and delivering order to customers’ door (Solomon, 2008). Operation Strategy Priorities Model With regard to the aforesaid stages associated with the issues to be faced by Aldi, it has been ascertained that there are a few situations that are likely to be faced by the organisation while retailing online in the UK market. By considering the situations driven by the issues, Operation Strategy Priorities Model can be effectively structured with regard to their priorities that can enable Aldi to prudently address the potential issues to be faced by the organisation while performing retail online in the UK market. Figure 2: Operation Strategy Priorities Model Compare and Contrast of Different Models Used by Online Retailing Business Industry In relation to the emerging development in the online retail industry, there are a number of issues faced by the companies associated with inventory and delivery chain, customer value chain, and cost implications among others. However, the organisations are likely to address effectively and increase business efficiency in the respective online retailing business industry (Groebner, 2004). A few of the major strategies that are likely to be practiced by the organisations to mitigate a number of issues while retailing business online are explained below. As being an e-grocer in the UK online retail industry, the business performance of Aldi may face issues associated with its own delivery network. In this context, the issue might be originated to assign along with meet the prerequisite delivery time windows. In relation to the potential issues relating to inventory and delivery chain, Aldi may face a major threat in the competitive UK online retailing industry. In order to address the issue, Aldi would be required to dynamically assign the delivery time windows to each online consumer as soon as a new order is placed (Hays & et. al., 2004). Moreover, the company should also focus on effectively adjusting its delivery networks in accordance with the orders along with inventory functions of the company. Through this process, the online retailing functions of Aldi would be able to address potential issues relating to inventory and delivery networks. The online retailing functions of Aldi should highly focus on performing a dynamic assigning procedure of its range of online delivery functions. The process would enable Aldi to effectively assign orders in accordance with its inventory functions. The strategy would also help Aldi to create and adjust appropriate delivery routes of its transportation facilities to deliver goods as per the orders of each customer in the UK. Recommended Delivery to the Customer Conundrum In order to reduce the risk derived from customer conundrum, the dynamic delivery strategy of products to the final consumer may be influenced by potential hazards relating to environmental (CO2) and technological impacts. In order to reduce the potential impact of environmental related issues, it would be effective for Aldi to build its strong network in more frequent and shorter distances. The strategy would help the company to reduce its impact on the natural environment or CO2 production while delivering products to the customers. Additionally, the company would also focus on tracking customers through the help of different navigation tools from the social media sites. Through this process, it would be easier for the Aldi’s product delivery network to easily locate the final consumers in different counties across the UK (Bomford, 2012). Part 2 Root Definition, CATWOE and Detailed Rich Picture Illustration With regard to the objective of performing online retailing in the growing UK market, the implementation of SSM would enable Aldi to efficiently perform its range of operations. The effective implementation of the system would provide adequate support to Aldi for improving its each supply chain activity while retailing online in the UK market. In order to critically assess the role of SSM to Aldi, the implementation of root definition and CATWOE model would help to critically assess the SSM system designed for Aldi to successfully achieve the objectives of retailing online in the UK retail industry. Root Definition The implementation of an effective SSM system would critically play an important role for Aldi to increase efficiency of its each online retailing activity in the emerging UK industry. The system would enable the organisation to build an effective framework for its range of order, processing and delivery functions. The implementation of SSM would facilitate Aldi to improve its order processing functions and adjust delivery system with respect to the priority of orders to be made by the customers. Additionally, the system would also provide a key support to the inventory management process of Aldi to effectively control inward and outward inventories and manage them to deliver to the appropriate place on time. The delivery of final products to the customers would also be improved through the implementation of the SSM. The system would enable the delivery process to integrate advanced technology based tracking system, which would highly focus on tracking customers from diverse locations across the UK. CATWOE Definitions Customer (C): The implementation of online ordering and direct delivery of order to their door would enable the customers to gain adequate benefit ranging from their order processing activities to obtain their final products within the expected time and cost. Actor (A): The execution of online ordering and allied system has been observed to improve the supply chain activities of the marketers involved in online retailing in the UK business industry. Transformation (T): The order processing and delivery functions would be highly improved to satisfy the ultimate consumers. The integration of social media in terms of tracking customers’ location would further help Aldi to achieve competitive advantage in the UK’s online retail industry. Weltanschauung (World View/W): It can be widely accepted that the execution of an integrated online ordering and delivery process can increase the efficiency of the online retailing functions as it involves major elements to deal with various types of issues relating to order processing and delivery among others. Owners (O): The proposed system would also enable Aldi to ensure adequate compliance with the trade regulations along with online business policies of the UK market. The delivery functions of the products to the customers would also focus on complying with the environmental policies and codes. Environment (E): The online ordering and delivery system to be implemented for Aldi would be financed by the company and it would ensure to effectively make budgetary control of each activity required to execute online retail in the UK. Rich Picture Figure 3: Rich Picture Illustration of Changes in the Business Process Plan including “AS IS” and “TO BE” Owing to the incorporation of the new system in Aldi, certain changes have to be introduced. The “AS IS” and “TO BE” framework can enable to determine the path of action of the plan accordingly. Table 1: AS IS and TO BE Analysis of the Business Plan Source: (Deloitte Consulting LLP, 2008) Part 3 Strategy to Turn Performance Objectives into Operations Priority and Resources In relation to the objective of building a strong identity in the UK online retail industry, it is also essential for Aldi to formulate an effective strategic operational framework relating to its workforces’ performance. In this regard, it is essential for Aldi to focus on formulating an effective strategy to effectively implement online ordering and direct delivery while performing its wide range of retail operations through online. In this regard, it is highly essential for Aldi to successfully align its operations priority and its vital resources. Therefore, the following factors would be significantly effective for the organisation i.e. Aldi while implementing SSM in the UK’s online retail business industry. Customer Interaction As being a new marketer in the UK’s competitive online retail industry, an extensive focus on interacting with customers is one of the major and most effective practices for Aldi. In order to make interaction with a large group of potential online consumers, the organisation should incorporate a strong communication system to identify the desires and expectations of the UK customers. In this regard, targeting customers through different social media networks along with the telecommunication and other conventional advertising media channels can be an effective strategy for Aldi before entering into the UK’s online retail industry (Remenyi, 2004). The process would also help the organisation to gain an in-depth understanding about the demographics along with the purchasing behaviour of the UK customer. Subsequently, it can be stated that interacting with customers prior to commence online retailing can facilitate Aldi to formulate combative strategy of offering its wide range of products in a more competitive pricing strategy (Solomon & Kim, 2011). Online Order Taking Taking orders online can be regarded as one of the initial and key factors for the retail organisations. In order to increase the efficiency of online order taking procedures, the business operations of Aldi should highly focus on the changing preferences of the customers. In this regard, in terms of a key performance objective, the online order taking services would focus on providing adequate assistance to each customer. In this purview, the online retailing website of Aldi should deliver extensive alternatives to the customers in accordance with their selected product categories. Moreover, the e-commerce software that Aldi will be using must provide shopping cart capabilities, catalogue display, and transaction processing system for helping the customers to easily place their orders while shopping online. The website should also ensure to communicate different modes of payment in accordance with the convenience of the customers (Williams, 2000). Online Inventory Management Managing inventories through online would also provide a major support to the managers of Aldi as a performance objective for improving its online retailing functions in the UK. The effective management of inward inventories would be an effective practice for the organisation to increase the efficiency of the proposed SSM system. In this regard, the management personnel along with other members of the organisation should significantly focus on aligning inventories with respect to the order taking functions of the organisation. The process would help to critically understand the volume of orders along with inventories to be delivered at the right time to the final consumers (Belew & Elad, 2011). Time Management Time management is one of the key factors, which can ensure to protect Aldi to face different potential issues associated with order processing along with the deliverance of final products to the consumers. In this context, it can be stated that the management functions of the organisation should appropriately prioritise orders in line with the date and time and deliver them as per the commitment made by the organisation to its customers (Holden, 2013). Employee Training and Development Providing continuous training and development regarding the online retailing functions to the management personnel and other staff is also an important factor as a part of performance objective which needs to be turned into operations priority to increase the performance of Aldi in the competitive UK online retail market. The employees are regarded as a key resource in the organization which needs to be leveraged in the new process. The staff members and management personnel would be rendered effective skill based practices in terms of making order and providing adequate assistance to each customer entering into the company’s e-commerce website. The training and development functions would further focus on improving communication skills of the personnel and executive members. The strategy would help the organisation to provide quality based customer service in case of any misperception or interrogations associated with online purchasing (Noe, 2007). Measuring Business Performance of Aldi During the Post Implementation of SSM In order to build long-term sustainability in the UK’s retail business industry, it is highly essential for Aldi to measure its performance after the implementation of online ordering system. The strategy would enable the organisation to critically understand its business performance along with the competitive position of the organisation in the respective industry. In order to evaluate the business performance during post implementation of online ordering, an effective practice of balanced scorecard can be utilised as a major tool for Aldi (Grembergen & Amelinckx, 2002). E-commerce Balanced Scorecard for Aldi Balanced Scorecard Chart Customer Orientation In relation to customer orientation, the factor would enable to critically understand the business performance of Aldi in terms of meeting expectations of its target groups of customers. Moreover, the factor would also facilitate Aldi to measure the satisfaction level of each online consumer and retain them to remain with the e-commerce services of the organisation. Additionally, the customer orientation factor would further provide crucial support to Aldi in terms of justifying and developing the performance of its e-commerce services in accordance with the changing consumers’ trends (Grembergen & Amelinckx, 2002). Business Contribution The factor in the balanced scorecard would detail about the business objectives that are achieved by the organisation through its e-commerce retail services. More significantly, the justification of business contribution would further help the organisation to critically evaluate e-commerce performance of Aldi in accordance with the budgetary plan (Grembergen & Amelinckx, 2002). Operational Excellence Measuring operational excellence would ensure Aldi to ascertain long-term sustainability in the emerging online retail business of the UK. In this regard, the identification of operational excellence would centrally focus on measuring security level of the e-commerce website including the user name and password or transaction records made by the users. Additionally, it would also ensure to provide adequate information regarding the development of the company’s e-commerce site (Grembergen & Amelinckx, 2002). Future Orientation The future orientation relating to the online retailing functions of Aldi would be focus on identifying the further developmental practices to improve the overall e-commerce activities of the organisation. It would enable Aldi to measure the importance of future developmental activities that can increase the online retailing performance of the company in the emerging UK’s retail industry (Grembergen & Amelinckx, 2002). 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