Business Operations and System - Assignment

Business operations and
system

Table of Contents
INTRODUCTION..............................................................................................................1
PART-1............................................................................................................................ 1
1.Evaluating the essential components for effective business operation management
of Cargills......................................................................................................................1
2. Identifying the issues and challenges of Cargills if the company introduced hybrid
facilities for their customers..........................................................................................2
PART-2............................................................................................................................ 3
Root definition and CATWOE analysis for Cargil in their new Process........................3
Business process mapping for Cargill..........................................................................7
PART-3............................................................................................................................ 7
Examining that how managers turn performance objectives into operation priorities
and required resources for effective implementation of to be process.........................7
Balanced Scorecard..................................................................................................... 9
CONCLUSION............................................................................................................... 12
REFERENCES...............................................................................................................14

INTRODUCTION
Business Operation and system is referred as a collection of the business
processes in order to attain the main goals of the organization in efficient way. It is wide
collection of the business processes that helps in delivering the effective objectives of
the firm. This report is based on the business operations of Cargills food city which is
the largest modern retailer in Sri Lanka. This study will present the effective business
operations of the company using soft system methodology which allows the proper
management of business activities as per the business process modelling. It will also
identify various issues and challenges involved with the introduction of hybrid facilities
within the organization.
Moreover, this study will provide different operation models of used by the firm in
order to sustain in this competitive market. Furthermore, it will help in creating a
complete understanding about costing solutions of the firm along with the appropriate
solution with its reasoning.
Problem statement- Issues faced by Cargills in Sri Lanka for operating as hybrid
facilities to allow customers to continue shopping.
PART-1
1. Evaluating the essential components for effective business operation management of
Cargills
Business operations can be termed as the activities which enable the
organization to transform a range of basic input material into the finished product with
respect to the final consumption of the end user. Cargills is providing food, agriculture,
financial and industrial products to all people around the Sri Lanka as they are doing
their business from last 36 years. With the help of this only company will be working
towards success factors. They are providing best food for many manufacturing
companies like KFC as well. One of the biggest success factor is their effective
marketing evaluation and use of marketing metrics as well.
Cost of operation
This is one of the most important requirement as organizations are majorly
responsible for the production of goods and services (Artto, Ahola and Vartiainen,
2016). In order to deliver the services to customer it is very important to minimise the
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cost of production which influences the buying decision of consumer. Cargill company is
mainly aimed at offering low cost services and products to their customers which leads
to simplicity and maximum efficiency at every stage of the business process. Cargill
company performs the retail operations and continuously putting their efforts to satisfy
the customer requirements by offering fast services at lower prices. This company
produces privately labelled products which mainly eliminates the extra cost for the
suppliers. Meanwhile, this enterprise involves low cost of labour because employees
are well trained that they can perform the work in every field.
Furthermore, Cargill is also focussing towards the online presence of the market
so they have to consider a proper attention towards the manufacturing and distribution
channels of the firm. This company also stores the goods in warehouse in order to meet
the demands and supply of the goods. So centralised ERP system will help company in
finding the effective supply chain solution.
Quality
Cargil company focus in providing the quality based products to customers which
can be easily affordable by large number of consumer. As per the safety standards,
food items directly impact on the health of the people so Cargil food city have to strictly
meet the safety standards while producing the food products. So the company fulfils
these standards by purchasing the quality based raw material in bulk which not only
result in standard quality but also minimise the overall cost of the product. In order to
maintain required nutritious value in food product, the company is also using sugar free
substances which reduce the calories and also the use of the salt is also substituted
with the nutritious element. It does not affects the tastes of the food. Thus quality
influences the customer value.
Time and Flexibility
Cargil Food city provides the goods and services at the stores but these stores
are generally small in size which may lack in attracting large number of people towards
its products. Meanwhile, acquiring the Hybrid facilities has benefited the company in
creating the value for the customers. So large number of people takes keen interest in
ordering food online and thus it has helped in increasing the sales as well as profitability
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of the firm. It minimise the time consumption of the people along with the flexible
services online which contains offer details, opening hours, variety of products etc.
2. Identifying the issues and challenges of Cargills if the company introduced hybrid
facilities for their customers.
Cargill is currently dealing with more than 366 stores and all the outlets of the
company mainly covers all the districts of the world (Xia and Wu, 2017). This company
is mainly targeting middle class people for the consumption of goods and services. So
the company has introduced the hybrid facilities in order to increase the market
segment and attract large number of buyers through the online marketing as well as
selling of the goods.
Moreover, strategic management of the Cargill decided to move the organization
towards the hybrid system. This system allows the company to identify the trend and
customer buying behaviour. This allows to the company in minimising the cost and time
and thus resulted in increasing the sales of the firm through e-commerce approach. In
order to achieve the sustainable performance of business, various business operation
models are used to strengthen the main objectives and strategies of Cargills.
Operation strategy performance model is referred to the method by which the
key operations and decisions are made that are consistent to the overall strategic
objectives of the firm (Aschauer, Gronalt and Mandl, 2015). In order to match with the
highly competitive industries in the market, company need to develop effective
operation management strategy for increasing the overall performance of the business.
On the other hand ,Customer value is one of the effective model which helps in
building the strong value with the customers. Customer satisfaction is one of the great
concern which need to be fulfilled with every aspect of the business. So Customer value
model is a data driven representation which predicts various possible situations in terms
of innovative products according to the marketing demands of customer. In order to
calculate the customer's lifetime value, Cargill company need to identify its average
purchasing value and then multiply the number by the average purchase frequency.
However, Service gap model model allows Cargill company to identify the
actual gap between the supply and demands of the customer (Xia and Wu, 2017). The
gap model also helps in identifying the service quality of products. Basically, it is a
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framework which help the company in understanding the customer satisfaction level.
When seeking to meet the customer expectations, this model mainly identifies the four
factors such as customer experience, customer perceptions, service delivery, service
delivery practices and customer health.
IT is recommended for the Cargills Food city to adopt mix strategies which help
in retaining the customers with as per the good quality of the of the product. In order to
carry out the hybrid facilities within the firm, company have to focus towards the
operational efficiency as well as customer value strategy. But in order to maintain the
balance between the demands of the product, company need to identify the Service gap
model.
Manufacturer model- Under this manufacturer will take raw materials for
creating products and assemble them to pre-made components into products like that of
car manufacturer which may be selling all the products directly to its customers or to
outsource sales for some another company.
PART-2
Root definition and CATWOE analysis for Cargil in their new Process
Employing technological advancement within the company has forced the
managers to increase the sales via adopting the hybrid system (Rosemann and vom
Brocke, 2015). This system is aimed at automated operations, effective logistics and
increased sales by effective marketing in order to increase the market share within two
years. ROOT is part of soft system methodology (SSM) which will be describing the
system of interest which normally starts with A system to should be using to include
mention about al key elements of systems.
CATWOE Analysis
This is one of the main technique for business analyst as they use it to identify
what it is that business should be trying to achieve, what are the problem areas and
how would a stakeholder their ideas will affect to all those who are involved within.
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Figure 1: CATWOE Analysis
(Zur, Muehlen and Shapiro, 2015)
Component Details
C Customers There are huge customer approaches in for the products which
are provided by Cargill company. This is one of the largest
modern retailer food city which mainly consists of large number
of loyal buyers. This organization have provided the optimum
solution for buying the goods and services online. This saves the
time and energy and thus this strategy attracted a large number
of people towards online market of the Cargill company. It have
also provided the easy choices and secured online shopping
experience as this company delivers the food online so these
services are easily accessible services which engage in large
number of customers in buying food online. This will include all
process users where people are defined and understand how
process and system will be affecting them. If Cargills is providing
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their customers all products for lower price and if they start rising
up their prices then customers would surely not liking it. It is very
much essential for them to think about their customers every
minute
A Actors Employment of the new strategies and innovation within the
company require the development of skills and training of the
staff members in order to carry out the successful operations.
This company has adopted the hybrid system which includes the
sales of the products from stores as well as online. So
manufactures, vendors, managers and logistic owners have to
maintain the stock within the warehouse for the online
consumption. The chain will affect IT, staff, distribution system,
and people doing marketing research. This will include all people
who are taking part in implementation process of change and
transformation. They all will be affected by decision which
company is taking and sometimes suffer the most as well.
T Transformatio
n
Changes in the strategies, logics and technology have
transformed the way in which Cargill industry perform the
operations and work within the company. Presence of online
market also saves the intermediate and duplicate process which
is increasing the cost. This will consist of all possible changes
and transformation which is brought by company either in
process or system.
W Weltanchauun
g
Now, Cargill will be determined as a new competitor in market
which allows the company to change the traditional method of
supplying the product (Zur, Muehlen and Shapiro, 2015). Online
marketing and selling of the product is captures new customers
who are keenly participating into online shopping. This will be
considered too as possible wider level impact of transformation
of process of system.
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O Owners Owners of the Cargill include Director, CEO, Managerial level
employees who are considered as an owner of new process. By
using the data and information, this company is able to develop
the plan and therefore this allows the owners in effective decision
making. He is always regarded to as decision maker for
company who is having control over system and transformation
as well. He would be deciding over whether system should be
implemented or not and if implemented who all will be involved in
it. The main responsibility will also be his only for leading out
suitable change for resolving problem and issue.
E Environment In order to increase the sales and profitability of the company, it
allows the manager to identify the waste management of the firm
and thus it helps in delivering the customized services to by
effective calculations of stock and market share. All the ethical,
legal and sustainable requirement which must be followed is
included in this section. As if any of them are not followed
properly then it will surely be creating problem for system and
company.
To be Process of Cargill Food City Are as follows:
This functions of the system will be followed as store-Warehouse-procurement-
finance-supplier-marketing
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Business process mapping for Cargill
Business process modelling is the discipline in operation management in which
people use various methods to discover and analyse the performance by improvising
the corporate business process.
As Is Process
Cargills food city has been using the traditional method for storing the goods and
this process allows the company in ineffective and inefficient inventory storing methods.
This company earlier uses telephonic communications with the consumers in taking the
orders which is time consuming process. So this process will provide large opportunities
to change the system in automated way which mainly improve the sales and efficient
customer approach of the company. This will be regarded to as is process for Cargills
as they are following it for many number of years for storing goods and is regarded to as
ineffective.
To be Process
This process helps in suggesting Cargills company in order to change the
technology for improving the operations of the company (Peltier, 2016). It engages large
number of people in accessing the online services. It will speed up the counters and
easy access, and also allow the company for the quick and easy access, accurate
updates of inventory system. This system will help in monitoring the demand and supply
by accurate means. To be process will also allow the Cargills in identifying the customer
behaviour, current trend and geographical changes within the area.
PART-3
Examining that how managers turn performance objectives into operation priorities and
required resources for effective implementation of to be process.
As per the process mapping of Cargills there is a huge requirement for changing
the whole process in order to compete in the market. According to the the new System
which is employed in Cargill for expansion of the business operations Business process
Model is advancing a To be process system which will help in performing the automated
tasks in order to accomplish the organizational goals (Rossi, Lipsey and Henry, 2018).
As per “To be process” which provides the easy accessibility of the products and large
variety of displayed stock that provide wide range of opportunities for the consumption
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of goods and services online. In order to achieve the main objective, manager generally
perform a proper research in order to incorporate the better system that enable the
mobile application for the customers. So it allows the customer in providing the
navigation search function that enables consumer to view the detail description along
with the secure payment processing system which allow them to create a user ID and
Password which avoids hacking. These selection needs help the manager in
determining the performance objectives as a operation priority of the business.
According to Berghuis and den Butter, 2017, store manager need to make sure
that all the stock is fully inspected and meet the standardised input material into the
system. Effective implementation of new system, may involve various problems related
to the skills development and unawareness about technology. So in order to resolve
such issues, managers need to provide new training sessions and educate them about
the use of new changes within Cargills food city. Managers need to promote the
communication at workplace in order to motivate the workforce for implementation of
the such new process within the system.
According to Zur Muehlen and Shapiro, 2015, managers need to encourage
their employees by giving appreciation and rewards that will help in proper
implementation of the new process within the firm. For the effective delivery process of
the products within Cargill’s managers also have to implement proper GPS or tracking
system. Managers also need to determine the layout and online process of the store in
order to attract large number of customers for the products and services. This system
will also allow Cargill’s Food city Manager to take decisions regarding the vendors and
supply chain agreement which is concerned with the automation of work within the
warehouse along with reduced cost and risk. It will help increasing the product
availability and inventory performance which helps in easy implementation of demand
and supply using inventory system. This allow the vendors in managing the accounts of
the product which ensures the refilling process as per the alert and notification from the
new system regarding the stock (Business Operation And System, 2018).
As per finance department, managers also need to instruct the employees in
order to upload all the past records into new inventory system as per the changing
model (Artto, Ahola and Vartiainen, 2016). Since the new system will perform the
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automated tasks then also managers of the Cargills food city need to timely monitor the
system. As payment will be automatically credited to the suppliers as per the inventory
system.
In addition to this, Implementation of new system will also allow the Marketing
manager in order to identify the Car gills food city target market and also promotion of
the Hybrid system. Marketing manager also attempt various modernizing techniques
through social media market and maintaining the strong customer relationship via online
reviews and feedbacks.
Moreover, the manager also monitors the whole process and eliminate the
unnecessary expenses along with the Waste management of the Cargills Food city.
Balanced Scorecard
Balance Score card is mainly used to monitor and supervise the strategic
implementation of the Cargills Food city. It is generally divided into four different
perspectives such as Financial, Customer, internal business and learning perspective.
Manager will be able to find the suitable solution to the problems of Cargills
organization.
Financial perspective
Objectives Measurement Target Initiative
Financial stability
Increased revenue 6.00% 1. Hybrid System
(Online+phhysical store)
2. Increased average basket
size by increased online
services.
3. Marketing campaign
4. Marketing expansion
Decrease Gearing 6.00% 1. Negotiation during the
credit period of supplier
2. maximised income for
interest
Non profit 10.00 1. Employing Streamlined
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% process
2. Training and development
of employees to adopt new
technology
Turnover employee 7.00% 1. Employee education and
training.
2. Motivation among
employee
3. Automated tasks
Managing
productivity
Decrease cost 6.00% 1. Automated system using
demand planning tool
2. Increased purchasing
power
3. Waste management
4. employing online marketing
methods
Increased usage of
resources
6.00% Monitoring the obsolete as well as
fixed assets of the company
From the above financial perspective, it has been analysed that financial stability
is one of the important aspect which helps in meeting the main objectives in the form of
sustainable development. Online presence of the industry increases the buyers which
ultimately maximise the overall sales of the firm.
Customer perspective
Objectives Measurement Target Initiatives
Customer
relationship
Market share total
percentage
5% market
share
1. Standard quality of
material used along with
more choices
2. Increased stock keeping
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unit
3. Customised services
and discounts
4. GPS and tracking
system for providing
home delivery to online
buyers. Easy payment
and store pickup
options.
5.
Number of Negative
feedbacks and
complaints
5.00% 1. Online review system
2. Return policy to
customer
3. Survey according to
customer point of view.
Google trend and
Brand rating
Increased
brand
name in
order to
list the
company
in top 10
rankers.
1. Promotional campaign
2. CRM
3. Sponsoring and
advertising
4. Brand ambassador.
In the above table, it has been discussed that customer perspectives are one of
the main concern which leads to the development of the successful business. Meeting
the standardised objectives will increase the customer loyalty.
Internal business perspectives
Objectives Measurement Target Initiatives
Online store
availability
Implementation of
new system
15
weeks.
1. IT consultants
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2. Creating the awareness
among employees.
Change in store
layout
Reduction of
customer waiting
time
20.00% 1. Automated inventory
system
2. Automated packaging
system
Minimization of
Stock request time
20.00% 1. Tagging of the products
as per radio frequency.
2. Automatic stock
updation.
Decreased duplicate
process and errors
From the above table, online process and employing the effective system within
the industry will be initiated by the IT experts. Efficiency and effectiveness has been
improved by handling the automated tasks.
Learning perspectives
Objectives Measurement Target Initiatives
To Provide proper
trainings and
education regarding
Improved technology
Average training
hour per employee
25 hours
annually
1. Expertise trainings
2. Knowledge transfer
sessions of seniors
3. Included KPI to training
hours
4. Questions and quiz
programs to evaluate
the knowledge.
Turnover rate of
employees
1. Change in culture
2. acquiring the ideas and
opinions from
employees.
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3. Employee survey
Employee
engagement events
Number of events Annually 3 1. Get together, meetings
2. Annual trips of staff
members
Motivation and
rewards of
employees
Evaluating key
performance
indicator
Satisfactio
n level
1. Bonus, increment
2. Rewards and
recognition
It has been discussed that employees derives the sustainable performance of the
firm so the workforce need to be satisfied and motivated to deliver the optimum output.
Training sessions and personality development helps in improving the skills among
employees (Robinson, 2017). Also evaluation of their performance and rewarding them
with monitory benefits motivates them for effective productivity.
CONCLUSION
From the above study it can be concluded that change in the technology will
bring various changes within the organization. Technology improvement incorporates
implementation of different types of system within the business. Also it has been
concluded that Cargils online presence help in increasing the sales and also help in
effective business operations which improves effectiveness and maximised profitability.
Moreover, it has been discussed Business process model discover various ways
which improves the automated performance of the business and it also focus in
improving the main performance of the business.
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REFERENCES
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Business Operation And System. 2018. [Online]. Available
through:<https://www.leanmethods.com/resources/articles/what-business-system-and-
why-do-you-need-one/>
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