Effective Management of Stock Inventory Obsolescence at Hogsmeadow Garden Centre

The case study of Hogsmeadow Garden Centre highlights the importance of proper management of stock and inventory control to ensure effective operation. The assignment suggests installing a computer-based information system to maintain stock records, track order creation, and optimize product availability. It also recommends ABC classification of stock, applying Pareto's principle to differentiate between high-value and low-value products. Furthermore, the assignment emphasizes the need for Don's strategy to focus on new services and products, with a marketing search before introducing new services. The study concludes that by implementing these strategies, Hogsmeadow Garden Centre can improve its operational performance, reduce costs, and enhance customer satisfaction.

Case study
“Hogsmeadow Garden Centre”
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Table of Contents
INTRODUCTION ..........................................................................................................................3
1. Three Micro processes along with a input transformation output model under the
operational performance criteria such as cost, quality, speed, dependability, flexibility............3
2. The Four V's of operational management................................................................................6
3. Types of seasonality or variation in demand, difficulty in running business and suggestion
to reduce the effect of seasonality ...............................................................................................7
4. Don’s strategy for the future of the business and its evaluation in the basis of operational
implications while suggesting effective Operation strategy........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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Illustration Index
Illustration 1: a input transformation output model for Restaurant ..............................................6
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INTRODUCTION
Operational management is the most crucial task of an organization that aims directing,
controlling and evaluating the process of conventing inputs into finished goods or services
(Chopra and Meindl, 2007). The report herewith is based on the case study of “Hogsmeadow
Garden Centre” which represents the popular destination of tourist in United Kingdom. This
reports explains the various aspects of operations management of the mentioned tourist area
(Meadow Grange Nursery, 2015). The input transformation output model under the operational
performance criteria is discussed for the micro processes of operational area of Hogsmeadow. At
last, business recommendation are made to the entity for attaining competitive advantages and
overcoming operational problems.
1. Three Micro processes along with a input transformation output model under the operational
performance criteria such as cost, quality, speed, dependability, flexibility
The transformation processes starts after putting the raw material to the process and the
transformed good are called as the output (Porter, 2009). According to the case study,
Hogsmeadow garden centre major task is to manufacture products and services which following
a operational process. The whole task is done through using "input-transformation-output"
process in which all the activities are designed to produce and deliver products and services to
customers as well as corporate client (Held, 2003). Following points represent that there are three
major areas of business i.e. Various plant and product retail areas, Restaurant and Display areas.
The each micro process has input transformation and output process.
Indoor sales area of Various plant and product retail areas
The first micro process is related to indoor sales area in which the Hogsmeadow Garden
Centre deals with retail products such as books and toys, picture gallery, kitchen equipments ,
outdoor eating equipments, dried flowers, gifts, stationary and all. The input process include
information regarding to the demand of customers and material (Andersen, Lawrie. and Savic,
2004). As well as the transformational process includes human resources and facilities for selling
such goods. The performance criteria is to provide quality products at reasonable prices. The
items in product retail areas are changed as per the demand hence, dependability refers to satisfy
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the demand of customers. The efficiency of workforce depends upon ability to meet the queries of
staff.
Restaurant
Honeydukes is the famous restaurant which is situated in Hogsmeadow Garden Centre. The
restaurant offers range of services that offers coffee, lunch and tea. The restaurant is partly self
serviced and partly assisted services. The input process of Honeydukes is ingredients of foods.
Staff, chefs and the information regarding demand of food and items per day. These inputs are
transformed through a process hence output is generated in the form of high quality foods and good
services. The performance criteria is quality food and better environment that is provided at the
best prices. The services are also rendered by the staff of restaurant to the customers. The
company is also promised to deliver fast services with fresh and tasty food (Chaston and
Mangles, 2000). The outputs are provided to the customers within a flexible environment for
which the atmosphere is designed with creative and innovative look. It has been witnessed that
the clean environment and superior services provided by the staffs encourage customers to avail
services of Honeydukes. The services are designed for all ages of people including children,
women and older people. As per the case study, it has been witnessed that on weekends the
demand from all ages is going to be seen instead of teenage children.
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Display area or Outdoor sales areas
The outdoor sales area produces products and services that are provided to the customers
who comes of Hogsmeadow Garden Centre. This area is processed with assembling customer
and goods together. This sales area is focused towards the people who love flora and fauna,
gardeners and elder people (Parks and et.al., 2004). However, the quality of sold products is too
high and the price is arranged as per the quality. The more quality items are more expensive. The
customers arrived in the garden area varies as per the time of year, day of the week, and time of
day. The staff such as carer of plants and atmosphere are the transiting resources but company
needs right number of staff with right skills.
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Illustration 1: a input transformation output model for Restaurant
(Source: Dallas, 2010)

2. The Four V's of operational management
Operational management is the central function of every organization. It includes various
processes that are carried out in performing business activities. As analyzed from the given case
study of Hogsmeadow Garden Center, three business processes have been assessed. Below given
table is an analysis of four chief V's that are dimensions of three functions at Hogsmeadow:
Dimensions (4 V's) Overview Regarding indoor, outdoor and restaurant
activities of Hogsmeadow Garden Center
Volume It refers to quantity
production of goods with
respect to cost. Volume
defines the success
behind effective
arrangement of goods
demanded by the
customers.
According to the given case study, range of
goods has been increased with the number of
items sold by indoor, outdoor and restaurant
area. The effective pricing of plants, associated
equipment, food etc. shows its effective
production in bulk. It infers that proper
structuring is required to be made for unit cost
and fixed overhead expenses for future profit.
Variety It refers to the attribute
that provides variety of
alternatives to meet the
customers demand
(Porter, 2009).
At Hogsmeadow, complete range of shrubs,
plants, stone ornaments, large number of
water-features, compost and peat, garden
sheds, playhouses, wooden furniture, fencing,
slabs etc. are there. The main objective is to
meet the demand of the customers. There are
professionally qualified staff at different
information centers who manages the
operations of indoor, outdoor and restaurant
activities at Hogsmeadow.
Variation It refers to the factors that
affect the seasonality and
alterations that occur
while doing business.
In the case study, staff at Hogsmeadow
generally faces the situation in case of change
in season. At time of high season, number of
customers is peak at late spring/early summer
and another at time of Christmas. However, it
variate at the time of low season. It includes
the loss of non-perishable goods such as
barbecues etc.
Variability It refers to the change in
preference of product
from among the ample of
alternatives (Porter,
2009).
As reveled from the Hogsmeadow case study
that variability dimension is effectively met. It
is archived by the retailer and restaurant
services of this sgarden center. With the
effective response of customers observed from
past few years, items at indoor sales areas have
expanded to pet, aquatic, garden lightning,
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books and toys, delicatessen, fresh and dry
flowers, kitchen equipment etc. Variability has
enabled the outdoor sales area with the
comprehensive array of outdoor stone
ornaments. Honeydukes restaurant is giving
best options of morning, lunch and afternoon
services to please its customers.
(Bhadur, 2008)
3. Types of seasonality or variation in demand, difficulty in running business and suggestion to
reduce the effect of seasonality
Seasonality type or variation in demand that apply to the Garden center
Seasonality type refers to fluctuations in sales and output which is associated with the
seasons of the year. At production and sales department of the organization, there are seasonal peaks
and troughs throughout the year. Seasonality or variation in demand and supply is observed through
products whose production is impressed by weather and year cycle. It is mainly observed in areas
such as garden centers. In context to Hogsmeadow, the supply of produced goods and items are
affected by seasonal factors (Fuller and et.al., 2008). However, demand for same is subjected to
seasonal fluctuation. For example, as per given case study, number of customers who come at
garden centers varies depending on time of year, day of the week and time of day. Also, the number
of customer remain peak at late spring and early summer period. There are some special goods
which Hogsmeadow put on display during Christmas.
Difficulty in running business
Seasonality type or variation in demand that apply to the garden center of the Hogsmeadow,
causes difficulty in running business efficiently (Deák, 2005). Business process of Hogsmeadow
faces the difficulty in ordering goods at the beginning of season. As per case study, weather is very
significant factor that determine its demand. Every year, it has to suffer a stock leftover, of 20% of
their total revenue. There are several products, which have to be discounted heavily, in order to end
the stock. The introduction of inventory control measure is to minimize the risk of damage and
obsolescence due to stock inventory. It demands a proper management of stock. It can be met by
proper warehouse which can manage such stock. Therefore, difficulty in running business is the
effective management of its stock (Emmett, 2013). It may affect the finished goods, customer
relationship and sales at Hogsmeadow.
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Suggestions to reduce the effect of seasonality
The reduction in effect of seasonality facet at Hogsmeadow is suggestible with the
introduction of ABC classification of stock. Pareto principle is applicable here, which refers to
differentiating various values and types of stocks. It is recommendable for this Garden Center to
install computer based information system. This will includes maintenance of stock record,
inventory record status, order creations etc. (Goddard, Dougill and Benton, 2010). Operation
strategy is needed to plan for Hogsmeadow where focus direction and future plans enable the
improvement in quality maintenance. It requires using high and fine quality of products, their range
and availability. Therefore, this garden centre is recommended to focus on two dimensions namely,
customer relationship and costing of its products and services.
4. Don’s strategy for the future of the business and its evaluation in the basis of operational
implications while suggesting effective Operation strategy
According to the Hogsmeadow Garden Centre case study , it has been witnessed that the
growth in customers number is attained by the organization but there is not seen much impact of
sales and profitability. As per the words of Don the demand of current products is going to be
increased in future however. He came up with the strategy to beat the existing and potential
competition in the market (Bisen and Srivastava, 2009). The owner decided to come up with new
product and services. According to Don , the major focus is to be given to the new services. This
strategy is quite impressive for this Garden Centre but can involve huge cost in research and
development and designing of new services. The company is suggested to put a marketing search
before comping up with new services.
Beside this, the company is suggested to identify the relative importance of competitive
factors such as higher quality of products and use of finest ingredients. Simultaneous, company
has to go for cost cutting for which it can purchase the ingredients in bulk. The entity has to
focus on some order winning factors for which product reliability is must. Along with the finest
products , the entity has to provide sufficient information is respect with the production of goods.
Thus, there should be visibility into products' information so as to provide a wide range of
products. The Hogsmeadow garden centre should have to focus of pricing of products and
customer services. However, it has to fit its business into global, economic, political and social
environment (Porter, 2009). The operation managers have to respond to customer demands as
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well as they have to seek for the solution of specific problems that are faced during the
manufacturing and selling of products. However, for improving the operational performance the
Hogsmeadow Garden Centre and operational department has to apply some cost cutting strategies
as well as inventory management techniques so as to be more professional in operating the business.
CONCLUSION
The operations and management of Hogsmeadow Garden Center has been analyzed. The
study was conducted by focusing on three micro processes. Don Dursley have identified the
significance of goods and customer management. The analysis of four V dimensions have helped in
evaluating the working of the operation process. Moreover, the installation of computer based
information system and inventory control were two vital suggestions provided to Hogsmeadow for
meliorating its future expenses.
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REFERENCES
Journals and Books
Andersen, H. V., Lawrie, G. and Savic, N., 2004. Effective quality management through third-
generation balanced scorecard. International Journal of Productivity and Performance
Management. 53(7). pp. 634-645.
Bhadur, R., 2008. Production and operation management. Book Enclave.
Bisen, V. and Srivastava, S., 2009. Production & operation management. Word-Press.
Chaston, I. and Mangles, T., 2000. Business networks: assisting knowledge management and
competence acquisition within UK manufacturing firms. Journal of Small Business and
Enterprise Development. 7(2). pp. 160-170.
Chopra, S. and Meindl, P., 2007. Supply chain management. Pearson Prentice Hall.
Dallas, P., 2010. Orchards in the Norfolk Landscape: historic evidence of their management.
contents and distribution.
Deák, J. Á., 2005. Landscape ecological researches in the western Marosszög (Hungary). Acta
Climatologica et Chorologica. Universitatis Szegediensis. 38(4). p. 39.
Emmett, M., 2013. Trialling and development of garden centre plants. acta hortic. 4(980).
pp.119-124.
Fuller, R. A. and et.al., 2008. Garden bird feeding predicts the structure of urban avian
assemblages.Diversity and Distributions. 14(1). pp. 131-137.
Goddard, M. A., Dougill, A. J. and Benton, T. G., 2010. Scaling up from gardens: biodiversity
conservation in urban environments. Trends in Ecology & Evolution. 25(2). pp. 90-98.
Held, G., 2003. Ethernet networks. Wiley.
Parks, R. W. and et.al., 2004. Benefits of specialisation in the management of pancreatic cancer:
results of a Scottish population-based study. British journal of cancer. 91(3). pp. 459-465.
Online
Meadow Grange Nursery. 2015. [Online]. Available
through:<http://www.meadowgrangenursery.co.uk/>. [Accessed on 3rd November 2015].
Porter, A., 2009. Operations Management. [Online]. Available
through:<http://lib.mdp.ac.id/ebook/Karya%20Umum/Karya%20Umum-Operations
%20Management.pdf>. [Accessed on 3rd November 2015].
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