Challenges to Business Success in Operations Management

Running head: ORGANISATIONAL MANAGEMENT
CHALLENGES TO BUSINESS SUCCESS AN OPERATIONS MANAGEMENT
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1OPERATIONS MANAGEMENT
Introduction
As opined by Zeng, Phan and Matsui (2015), the extensive usage of the process of
globalisation as well as different kinds of innovative and disruptive technologies had
significantly transformed the modern business world. Brewster, Mayrhofer and Morley
(2016) have noted that one of the important changes which had been witnessed in the
spectrum of the business world can be ascribed to the process of operations which is being
used by the contemporary business firms. The continuous changes in the field of technology,
the ever-increasing number of firms which are entering into the business markets of the
emerging nations, the changing quality standards and others have forced the firms to change
the operations management which is being used by them (Kato et al. 2015). Furthermore, it
had been seen that the choices related to the commodities or services which are available to
the customers had increased which had significantly enhanced the expectation of the
customers (Mahadevan 2015). The resultant effect of this is that the business firms in order to
fulfil the expectations of the clients or the customers are not only using the process of
effectively designing the commodities or services offered by them but also creating effective
job designs for the employees so that they would be able to deliver high-quality goods or
services to their clients or customers (Khanna 2015). These in short are some of the factors
which had precipitated the much-needed change within the couldron of the operations
management process used by the business firms. This paper intends to analyse how the recent
changes in the field of operations management or for that matter the challenges faced by the
operations managers are likely to affect the prospects of the modern business firms using the
case study of the Australian retail firm, Woolworths Group.

2OPERATIONS MANAGEMENT
Overview of Woolworths Group
The Woolworths Group, founded in 1924, is an Australian retail chain with extensive
retail interests in the nation of Australia and New Zealand (Woolworths.com.au 2019).
Furthermore, the firm is reputed for the large number of products or services like grocery
products to furniture, financial services, books and others that it offers to the customers
(Ibisworld.com.au 2019). More importantly, it is seen that the concerned firm has more than
992 retail outlets in the nation of Australia and New Zealand and for the year 2018 the annual
revenue earned by the firm was more than A$56.726 billion (Woolworths.com.au 2019). As a
matter of fact, in the recent times in order to enhance its profitability the concerned firm had
embraced the e-retail model of business and thereby started its “Woolworths Online”
initiative so as to effectively capitalise on the demand presented by the e-commerce model of
business (Ibisworld.com.au 2019). Moreover, it is seen that the concerned firm taking the
help of the different kinds of emerging technologies is trying to improve the efficiency of the
operations management processes used by it with the objective of offering the customers
cost-effective as well as superior quality services or products to the customers.
Impact of the challenges on Woolworths
Swink et al. (2017) have noted that the business firms during their business operations
face several issues or challenges that adversely affect their business or financial prospects. As
opined by Andreassen et al. (2016), the fortunes of the business firms substantially depends
on the efficiency with which they mitigate or tackle the adverse effects of the challenges or
the issues that they face during their business operations. Some of the most challenges or the
issues that the business firms commonly face during their business operations are on the score
of different emerging technologies, extensive usage of the process of globalisation, changing
customer expectations, job designs, the quality manufacturing processes used by the firm, the
manufacturing processes used by them and others (Huotari and Hamari 2017). An analysis of

3OPERATIONS MANAGEMENT
Woolworths on the basis of these challenges or issues is likely to yield significant
information regarding the concerned firm.
Brewster, Mayrhofer and Morley (2016) are of the viewpoint that the recent changes
in the field of technology had substantially transformed the business processes or the
operations management processes or principles used by the firms. For example, the firms like
Woolworths and others are taking the help of the different emerging technologies like
‘internet of things’, smart technologies and others to drastically change the operations
management processes that they had been using over the years (Ibisworld.com.au 2019). This
in turn had not only enhanced the efficiency or the effectiveness of the operations
management processes used by the concerned firm but is also one of the major factors which
had substantial enhanced the profitability earned by the firm as well.
The extensive usage of the process of globalisation and the entry of different business
firms into the Australian retail industry from the diverse third world nations had potentially
enhanced the business competition faced by the concerned firm. As opined by Fernie and
Sparks (2018), this had significantly enhanced the number of choices or options which the
customers have and this had increased the brand switch propensities among the customers.
Furthermore, unlike the earlier times when the major consideration for the customers before
buying a particular product or services were its cost and quality in the present times the
customers are also focusing on the aspects of brand image, value proposition, the corporate
social responsibility practices used by the firm offering the concerned product or service, the
manufacturing process used by it and others (Ramanathan, Subramanian and Parrott 2017). In
the particular scenario of the Australian retail industry, the firms Woolworths and Coles hold
more than 80% of the market share of the concerned industry on the score of the positive
brand image as well as the loyalty of the customers that they have. More importantly, the
products or services which are offered by Woolworths have been highly appreciated by the