Operations and Technology Management - Assignment Example

Download file to see previous pages This makes it very difficult to accurately forecast in advance the designs so they stick to the traditional and common designs. They will not purchase materials in big orders because of the uncertainty of the forecast. Hence, this management strategy could be considered as very conservative and inefficient operation style. The effect of this goes beyond the initial production. In the event that the forecast is correct and replenishments are in order, the same cannot be produced immediately. Materials were pre-ordered a year before and may not be in manufacture anymore or such other delays may occur. So even if the design becomes in demand, M&S will not be able to cater to it immediately. Their slow response will lead customers to shop elsewhere like Zara who can "copy a successful competitor model and get it on its shelves within 7 days and all at low-to-middle range prices." What is needed is a change. But it is not a piece meal change, as can be seen in the effecexplanation. It requires changing to root causes of poor performance which according to Merrill Lynch is, "heavy organization, limited flexibility and over centralization."
1. He downsized in the effort to save costs and bring up the value of company stocks. This led to the closure of operations in Canada & 6 stores in France and Germany. This also led to the UK management staff cut of over 1000 employees including Simon Marks great grandson. The closure of operations and stores may be a smart financial move but in the long run may cost the company far greater losses in terms of customer "goodwill' and company profile. Peter Salisbury should have explored other avenues like selling by consignment of goods or maintain a booth within a large department store, or even franchising to maintain relations with customers and thus not to lose the important "goodwill." Without "goodwill" a company is nothing. Company employee goodwill should have also been maintained to make the employees feel secure in their work and thus work harder for the company. Downsizing even the number of management staff cannot be avoided but he should have maintained Simon Marks great grandson if he was worth it. How can a mere employee be secure in his work when even the relative of its founder who works as hard as him does not enjoy even a bit of leeway. Is the company going bankrupt that it can no longer give a little respect to the memory of its founding member What company profile does this action show the industry He forgot to look closely into the history of the company that it reached the peak of its glory when its patronage grew. People chose to buy M&S products because the company gave back to its employees in terms of social/ welfare services.
2. He moved to reorganize and decentralize through the "Return to Recovery Program" by rationalizing its supplier base. 77% of turnover was sourced from the UK which allowed close proximity to the buying team for controls and communication. This stopped or limited the sourcing of clothes to Hong Kong. Savings were obtained from having to obtain the sourcing from Asia, flying the same to UK for control ...Download file to see next pagesRead More