Soft System Methodology for Ofo Operations Management in Hong Kong

Running head: SOFT SYSTEM METHODOLOGY
SOFT SYSTEM METHODOLOGY
Name of the Student:
Name of the University:
Author Note:

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SOFT SYSTEM METHODOLOGY
Table of Contents
Introduction:................................................................................................................................2
PART ONE:.....................................................................................................................................3
Business Operations Management of OFO in Hong Kong. Analyze OFO Operations
Management Components:..............................................................................................................3
The Problems Situation:..................................................................................................................6
The selected business models to tackle/address the problems:.......................................................7
PART TWO.....................................................................................................................................9
Soft Systems Methodology:.............................................................................................................9
Step 1. Locating the problem:......................................................................................................9
Step 2. Expressing the problem issue:.......................................................................................10
Step 3. Deriving the root definition:..........................................................................................10
Step 4. Conceptual model:.........................................................................................................11
Step 5. Comparing conceptual model with real life situations:.................................................11
Step 6. Analysing feasible solutions developed and modifying the same:................................11
Step 7. Implementation:.............................................................................................................11
Rich Picture:..................................................................................................................................12
Root Definition:.............................................................................................................................14
CATWOE Table:...........................................................................................................................14
PART THREE:..............................................................................................................................15

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Performance Indicators and Operations Priorities according to solutions proposed:....................15
New Resources required:...............................................................................................................15
Principles of BSC:.........................................................................................................................16
Setting up Four perspectives of BSC for organization selected with brief discussions/
explanation.....................................................................................................................................16
Conclusion:....................................................................................................................................17
References:....................................................................................................................................18

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Introduction:
One of the biggest challenges which business organisations are facing is meeting the
requirements of multiple stakeholder groups. The multinational companies are coming under
greater amount of pressure to comply with the stakeholders’ requirements. The situation turns
out to be more challenging when the interests of different groups of stakeholders conflict.
Business organisations have to tackle challenging situations like this extremely strategically. The
challenge is escalated due to the fact that failure in meeting the demands of one of groups of
stakeholders on prolonged basis actually attracts negative movement from other groups of
stakeholders. The need to form strategies to meet the demands of stakeholders would provide the
context on which the entire research would stand. The backdrop of the research would be
provided by Ofo, a bike sharing company based in China and having its presence in more than 21
nations in the world (Ofo.com. 2019). The issue which the company is facing is government
actions in its own home country namely, China and in host countries like Malaysia. The second
issue which the case study would deal with is that large numbers of bikes are abandoned on the
biking ways by users after using which are vandalised, thus rendering them useless
(Dimsumdaily.hk. 2019). Moreover, the system of Ofo apps often malfunctions. Moreover, the
customers who suffered due to failure of the app were not given refunds. The issues culminated
due to the fact that the bike sharing companies do not provide proper parking instructions to
consumers about parking bikes post usage. The issues intensified to the extent the companies had
to cease operations in Hong Kong (Lee 2018). The consumers after using the bikes of the
company left them on the sidewalks which blocked the ways for the passers-by to walk. This
issue faced by the pedestrians led to several pedestrians lodging complains against the bike
sharing companies. The situation became serious for Ofo when the Hong Kong government

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started perceiving the increase numbers of bikes as a social challenge and even a security
challenges to the public. The Government of Hong Kong in response to the issues has moved to
place restrictions on the number of bikes which bike sharing companies would be able to make
available on road. The move is also aimed to check the business expansion of the bike sharing
companies (Forbes.com. 2018). Thus, Ofo is facing a challenging situation to operate in ways so
as to ensure satisfaction of the several groups of stakeholders involved in the situation namely,
government, consumers and passers-by which can be interpreted as society at large. The aim of
the paper would be analysing the situation which Ofo is facing to point out strategies which the
company can take to deal with the challenge.
PART ONE:
Business Operations Management of OFO in Hong Kong. Analyze OFO Operations
Management Components:
The operations management of Ofo in Hong Kong consists of 10 operations management
decisions. The ten decision making operations of Ofo are provided in the checklist below:
SL
no
Operational management
decisions
Application by Ofo
1 Designing of services Ofo operates in bike sharing sector and provides
services of bike sharing.
2 Quality management The quality management strategy of the company
consists of maintaining high quality of services. The
company makes a large number of bikes available to
consumers in order to serve maximum number of

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customers and to maintain minimum number of
consumers waiting in queue to avail bike sharing
services.
3 Price capacity and design The company maintains highly advanced technology
which enables the system receive and process large
numbers of bookings for bike sharing.
4 Location The location strategy of Ofo consists of presence in
over twenty one host countries like Hong Kong. The
company enjoys strong presence on the digital space
which enables customers book bike sharing slots
without any hassle.
5 Layout strategy The layout strategy of Ofo is aligned to its
operational needs. The operations of the company
which mainly consist of receiving orders for bike
sharing from consumers and making bikes available
to them for hire runs on the technologically
advanced digital platform of the company. The
company makes booking services available to
consumers on the apps supported on both smart
phones and laptops which enable the consumers
book slots as per their convenience. The consumers
in order to enjoy the services have to open account
with the company by paying an initial payment. The