Operations Management | Australian Retail Chain Woolworths
Added on 2020-04-01
13 Pages3716 Words39 Views
Business DevelopmentLeadership Management
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RUNNING HEAD: OPERATIONS MANAGEMENT 1OPERATIONSMANAGEMENTChallengesto BusinessSuccess anOperationsManagementFocusSubmittedby:
Challenges to Business Success an Operations Management Focus 2ContentsIntroduction......................................................................................................................................2Changing Technology......................................................................................................................2Continued Globalization of markets including 1st and 2nd world entrants....................................2Changing customer expectations.....................................................................................................3Changing job designs.......................................................................................................................3Quality management........................................................................................................................4Global manufacturing......................................................................................................................4The most influencing factors on Woolworths Operational Management process:..........................4Supply Chain Design...................................................................................................................4Managing constraints and margins...........................................................................................5Managing risk...........................................................................................................................6Balancing planned objectives with prepared objectives...........................................................6Managing inventories...............................................................................................................6The JIT Method........................................................................................................................7Resource management.................................................................................................................7Conclusion.......................................................................................................................................8References........................................................................................................................................9
Challenges to Business Success an Operations Management Focus 3Introduction The report is based on the Australian Retail chain Woolworths. The operational manager hascome across challenges due to operational disruption. The operational managers participate instabilizing the organizational policies and procedures in the organization like marketing,planning, technology and finance. It is difficult for an operational manager to manage thecompeting business practices in an organization. These dissimilarities in the business processhave a damaging effect on effectiveness and competence of providing goods with better quality.A pathetic communication process might hamper the process of order and invoice. The job ofoperation manager is to ensure that everyone in the organization is using the same process tocommunicate. Changing TechnologyTechnology comes with a different type of challenges. All these changes are very expensive tothe company. New technology requires employee training and development that creates problemat a later stage. These changes help in creating new products and services, thus forming entirenew market. Furthermore, development in technological products and procedure increases theproductivity and reduce costs (Birdi, et al 2008). Online shopping characteristically allowsshoppers to use to find specific models, brands or items. This technological up-gradationfacilitates customers to access the Internet and a valid technique of payment. Online groceryshopping has become popular considering the growing market trends. The online stores arealmost three times more efficient than traditional supermarkets. This change in the retail sectorhas eventually affected Retailers for most favourable picking and pickers or “personal shoppers”.Innovation and changes creates difficulty for an operational manager in implementing changes(Stevenson and Hojati, 2007).Continued Globalization of markets including 1st and 2nd world entrantsMany business organizations have become cynical with sales in the international marketplace.This is the reason that the old markets have become saturated. With plenty of internationalcompetitors, it is getting difficult to manage the business activities. Multinational companies thatstrenuous on distinctive consumer preferences have become perplexed and not capable to take inthe proper decision. The rationale is to gain long-term success by concentrating on everyindividual desire (Lambin, Chumpitaz and Schuiling, 2007). Increasing competition in the retail
Challenges to Business Success an Operations Management Focus 4sector from the foreign organizations like Aldi is posing threat to Woolworths. They had arrivedinto the market with extraordinary strategy. Under such a situation, it is tough to manage thebusiness functions in the most appropriate way. Globalization has increased the level ofcompetition in the country. Multinational business organizations tend to come up withcompetitive policies, hence creating a disturbance in managing the business activities. Aldi is anultra cheap German brand entered the Australian market with effective pricing strategies. Itthereby creates excess competition in the market creating an adverse situation for the operationalmanager. In order to gain competencies in the market, it is necessary to manage the businessactivities in an effective way. Woolworths has to formulate policies according to the marketdemand and interest of the upcoming market players (Slack, 2015). Changing customer expectationsCustomer’s expectations are changing at a fast pace changing the complete frame of a retailsector. It has become difficult to manage individual interest. For an operation manager, it isdifficult to incorporate the changes that are taking place in the business environment. Meetingtheir expectation is the important aspect in order to attain market competencies. With thechanging behavior of customers it is important for the organization to handle each and everyfunction in the best possible way. This is to gain organizational competencies. The ultimatepurpose of an organization is to match up with the Customer’s expectation. In order to deal withthe changing market behavior it has become important to manage consumer behavior. This willultimately help in gaining better results (Wheelen and Hunger, 2011). Changing job designsJob designs are important for the business in gaining business competency. A change in the Jobdesign is a core function of human resource management. The operational manager has to dealwith the changes and has to incorporate the changes into the system accordingly. This isimportant for dealing with the organization related issues. The requirement of contents,techniques and relationship of jobs allow in arranging technological and organizationalrequirements. A changing job design at Woolworths has affected the people in the organizationas well as the social and personal requirements. Every employee need to be aware of the changeswhich in itself is a difficult task. Details regarding a change need to be discussed among each
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