Business Operation Management

Business Operation Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Presenting Ocado’s operating model...........................................................................................3
PART 2............................................................................................................................................7
Presenting root definition, drawing CATWOE table and rich picture........................................7
PART 3............................................................................................................................................9
Assessing the resources that are required for the effectual implementation of new process.......9
Stating the extent to which performance objectives are related to operational priorities..........10
Use of balance scorecard in measuring company’s performance..............................................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
Business operation management may be served as a process which is highly concerned
with making control on production process. In the strategic business arena, it is highly required
for the company to manage its operations and functions more effectually. Hence, operation
management is highly significant which in turn lays emphasis on planning and execution of
strategies in the right direction. By undertaking the aspects of operation management firm can
streamline its business operations and functions properly. The present report is based on Ocado
which is one of the leading online supermarkets of UK. Such firm has no chain of stores and it
delivers products to the customers directly from its warehouse. Ocado is also listed on the
recognized stock exchange of London such as FTSE 250 (Ocado Group, 2017). In this, report
will provide deeper insight about the operating model undertaken by Ocado. Besides this, it will
also shed light on the new model that can be undertaken by firm for building competitive
advantage. It also depict the sources that need to be undertaken for meeting operational priorities
or requirements.
PART 1
Presenting Ocado’s operating model
In UK market Ocado has built its distinct image in the mind of customers under the
category of online retailer. The main objective of the business unit is to maximize customer’s
satisfaction by fulfilling their needs on time. Hence, Ocado lays high level of emphasis on the
aspects of strategic partnership with the motive to deliver products to customers at affordable
prices. Thus, Ocado has developed unique model which in turn resulted into that now large
number of individuals prefer to purchase products or services from such online retailer. In
addition to this, now most of the individuals prefer to purchase products or services from online
store. The rationale behind this, online store offers high level of convenience to the individuals
and enable them to do shopping whenever they want (Hill and Hill, 2012).
Besides this, now trend towards working women has increased significantly as compared
to prior times. Thus, they do not have enough time to go outside for purchasing general
merchandise. Along with this, online stores also provide opportunity to the customers to make

comparison of prices which are charged by different retailer for the similar kind of products or
services. Thus, all such are the main reasons due to which customers prefer to do online
shopping rather than going to physical store (Krajewski, Ritzman and Malhotra, 2013). By taking
into account such aspect, it can be stated that now online store are highly significant which in
turn helps business in attaining success to a great extent.
Operation management of Ocado in the present times
 Product: Grocery items
 Price: Following penetration pricing strategy for attracting large number of customers.
 Place: Offering products through online store
 Promotion: Laying focus on both social media marketing and traditional modes
In the context of Ocado, key components of operation management include following
which are vital for organization growth and success:
 Supply chain management: In the present era, customers stick to the retailer who
delivers products on time. By considering this, it can be presented that with the motive to
strengthen supply chain aspect Ocado considers the strategy of partnership.
 Efficiency: Enhancement of efficiency level of both human and non-human aspects such
equipment is highly required for better business as well as operation management. Thus,
Ocado focuses on raising efficiency level with for doing delivery of products within the
shortest time possible.
 Quality control: In order to manage business operations and functions more effectually
Ocado focuses on making control on quality level to a great extent. In the case of online
retail store, satisfaction level of customers is highly influenced from the aspect that
products are delivered on tine or not. Thus, building and maintenance of high quality is
one of the main aspects which are highly required for effectual operation management.
Cited case situation presents that Morrison which is one of the leading supermarkets of
UK planning to do contract with Amazon for strengthening the online store and related services.
Such strategic move of Morrison’s may result into high level of competition within the
marketplace. Moreover, in the recent times, role of Amazon in offering online services are highly
significant. It offers cloud computing platforms to individuals, companies and government. In
addition to this, it allows users as well as customers to access products or services 24/7/365.