BUSINESS OPERATIONS AND SYSTEMS.

Running Head: BUSINESS OPERATIONS AND SYSTEMS 0
BUSINESS OPERATIONS AND SYSTEMS
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FEBRUARY 22, 2019

BUSINESS OPERATIONS AND SYSTEMS 1
Executive summary
Business operations and its models adopted by a company are very critical while
conducting business successfully. The report will include analyzing the best solution for
the firm, for the problems faced by B&M in UK while considering various business
operations tools. One of the major problems for B&M is that the company does not have
a hybrid model.
Considering service gap model, it was analyzed that one of its major competitor is using
hybrid model that is gap for B&M. V’s model reflects the way the four v’s affect the
operations process of the, it includes volume, viability, variety, variation in demand,
visibility.
Soft system methodology initiated by root definition which mainly includes solution to
business problem identified that will include introducing the new delivery system, which
introduces to the mixed delivery system, this is the system where the customer can get
the order delivered to their doorstep by the delivery agent, or they can collect the order
from the store.

BUSINESS OPERATIONS AND SYSTEMS 2
Contents
Executive summary......................................................................................................................1
Introduction....................................................................................................................................3
Part 1...............................................................................................................................................4
Value to customer.....................................................................................................................4
1. The service gap model...............................................................................................5
2. V’s model.....................................................................................................................5
3. Customer value analysis...........................................................................................5
Alternative Problem solutions..................................................................................................6
Proposed solution.....................................................................................................................7
Part 2...............................................................................................................................................9
Rich picture................................................................................................................................9
Root definition............................................................................................................................9
CATWOE model......................................................................................................................10
Business process plan...........................................................................................................11
AS IS process plan.............................................................................................................11
TO BE process plan............................................................................................................12
Part 3.............................................................................................................................................13
Implementation stage.............................................................................................................13
Balance scorecard..................................................................................................................14
Conclusion....................................................................................................................................16
References...................................................................................................................................17

BUSINESS OPERATIONS AND SYSTEMS 3
Introduction
Operations management of an organization is responsible for the maximum possible
efficiency in an organization through the administration of business practices. It includes
converting labor and material into final products and services with the most efficient way
to maximize organization profit (Norman & Verganti, 2014).
For analyzing the operations management, the report will consider an organizational
case of B & M, UK. Various business operations will be used in the report to analyze the
best solution for the firm, for the problems faced by the organization (bmstores, 2019).

BUSINESS OPERATIONS AND SYSTEMS 4
Part 1
Value to customer
B&M is operating a business through a large number of stores in the United Kingdom,
for creating value to the customers, some of the component that is responsible for
effective operations management for the company.
1. Capacity planning - Discounted prices are one of such value to customer, B & M
are providing the discounted prices on most of the products in grocery and non-
grocery items due to its effective components for instance, its sourcing
capabilities, the company’s sourcing capabilities are so strong, which are held
responsible for providing minimum prices to the customers.
2. Product selection - Grocery items of the company are sourced from FMCG firms
of the United Kingdom, and third-party distributors, offering to provide payment in
cash, larger volume sourced. Therefore, the company is able to source the goods
at lower prices in exchange for payment terms.
3. Location facilities - Another value creation to the customer is through well-sited
locations, the products are available to the customers at various locations, and
these include rural location, which the company took advantage in UK weak
economy condition from 2007 to 2011.
4. Cost control - The store locations are also responsible for the lower price
product, and lowered rent sites are chosen by the company to reduce the cost to
the company and increase the margin to gain win-win situation (Kaynak, 2018)
Soft system methodology is a one of the methods for organizational process modeling
and this use solve management is change or any general problem solving. One of the
major problems for B&M is that the company does not have a hybrid model. It can be
said that environment is dynamic, the company decided to bring hybrid change through
its operations; this included the shopping experiences provided to the customers
through brick and motor store as well as through online shopping experience, which
were held responsible for some issues, which can be evaluated to use soft systems

BUSINESS OPERATIONS AND SYSTEMS 5
methodology. Some of the operations models that can be analyzed for identifying the
problems are,
1. The service gap model
According to this model, the service is considered a major aspect for the customer
expectations. The gap in the service is identified, that is the gap between the actual
services provided by the company, and what the customers are expecting. In the case
of B&M, the hybrid change to integrate the online services, the customers would be
expecting the fast online delivery and the latest technology like tracking system. One of
the major competitors of the company is Argos that has hybrid model, which is
competitive advantage for that company (raconteur, 2019). This could be a problem for
the company initially to reach up to customer perception and expectation (Sodhi &
Tang, 2014). Moreover, the company is required of more employees in order to attain
the service quality due to increase in the job roles, the service gap could increase in
case the company is unable to train or recruit competent employees.
2. V’s model
This model reflects the way the four v’s affect the operations process of the, it includes
volume, viability, variety, variation in demand, visibility. In the case of B&M hybrid
change, major issues lie in the volume aspect, where managing lead times could be a
problem due to an increase in the business process (Hitt & Xu, 2016).
3. Customer value analysis
It is another model, which is presented in a grid form reflecting the level of price
perceived by the market and level of quality perceived by the market. The issue with
B&M change could lead to a decrease in quality with the same prices as before (Slack,
2018). Considering the coordination operation model, which is characterized by
supplier data, product, or shared customer but the business units are autonomous that
car is responsible for control over the process design of business. Through this, it can
be said that while the hybrid change in B&M, inventory management could be one of
the major problems, like complexity could be increased in-store execution. Moreover,
services quality is a major problem identified (Tukker & Charter, 2017).