Strategic Operations Management: Lack of Effective Communication at H&M

STRATEGIC OPEARTIONS
MANAGEMENT
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Table of Contents
1.0. INTRODUCTION....................................................................................................................3
1.1. Problem statement................................................................................................................4
1.2. Practical rational...................................................................................................................4
1.3. Theoretical rational...............................................................................................................4
1.4. Research questions................................................................................................................5
2.0. Main Body (Literature Review)................................................................................................6
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19
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1.0. INTRODUCTION
Operations management is an integral process which is concerned with the operational
activities such as production, designing, controlling, monitoring and improvement of goods and
services. Strategic operations management is lined with targeted management of all operations
through which the quality of products and services can be enhanced. With the help of strategic
operations management, business can form effective and strategic decisions through which
overall success of the company can be made. Strategic operations management focuses on four
main components which comprises of strategy, innovation, supply and services which are offered
by a company. Through strategic operations management, company can provide quality goods
and services to their customers which will also help in enhancing organisations supply chain
activities. Through strategic operation management, a business can minimize labour, tariffs cost
and taxes. H&M (Hennes & Mauritz) is a Swedish multinational retail company which provides
fast fashion apparels and is operating in 74 countries with over 5000 stores. The company
provides offline and online mediums through which customers can purchase products which are
offered by them. The main motive of company is to provide fashionable products through which
they can meet the changing demands and provide products at best and reasonable price through
which they can maintain sustainably in the business environment and gain competitive advantage
from their operations. Hennes & Mauritz popularly known as H&M is a Swedish based company
which was established in 1947 (Webb, 2017). H&M is a multinational company with its
headquarter at Stockholm, Sweden. H&M deals in clothing and is mainly known for its
fashionable clothing for different age groups of men and women. It is the second largest cloth
retailer in the world which has widespread business across 74 countries and have more than 5000
established stores in the world.
It has been seen that many strategic operations like accounting, human resources
management, sales management, marketing and many other operations are present within a firm.
Many contemporary issues in strategic operations management are faced by a firm which
comprises of current problems that are affecting the people and staff of a firm that tends to
seemed unresolved. The main problem that has been currently faced by H&M company are
provided as below:
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1.1. Problem statement
The problem statement that has been analysed and evaluated under current investigation is
based on issue of lack of effective communication and motivation at workplace of H&M. It has
been analysed that the business operations of H&M company is currently present in more than
74 countries with around 5000 stores thus, maintaining effective communication is a vital issues
which is continuously affecting its operations and timely delivery of quality product (Mangla,
Govindan and Luthra, 2017). Beside this, it has been also analysed that lack of effective
communication also leads to problems in implementation of strategic operational decisions along
with creating many issues related with effective monitoring and control on those decisions at
operational level due to lack of communication.
1.2. Practical rational
The practical rationale of this project is to evaluate factors which affects the performance
of business and take corrective measures through which the brand image and goodwill of the
company can be maintained and organisation can gain competitive advantage from, their
operations. Though identifying such responsible factors organisation can maximise profits and
sale of the products and goods can be increase (Sledgianowski, Gomaa and Tan, 2017). The
identification of responsible factors will help in identifying improvement criteria which are
needed by H&M to perform managerial operations and thus it also helps the company in
maximising the profits of the company.
1.3. Theoretical rational
The theoretical rational of the research help business in improving managerial activities
of the business through which the company can sustain for longer period of time and thus it will
also help in meeting customer requirements and retaining maximum number of customers. The
managerial activities which are followed by H&M are identified and necessary corrective
measures are taken through which a company can perform all planed activities accordingly.
Through identification of such factors will help in evaluating managerial activities and
operations and their effectiveness for the organisation. Through identifying functions and
strategies of H&M their strategies, pans and procedures will be identified through which
improvement criteria will be evaluated and measure scan be taken through which employee ad
organisations performance can be improved. Through providing effective training to all
employees, H&M will be able to perform their managerial functions effectively.
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1.4. Research questions
The main aim of current investigation is to analysis about the contemporary issue in
strategic operations management faced by a organisation. The current project is focused on
analysing about the various strategic operations which are undertaken at H&M along with
determining about the issue of lack of communication as contemporary strategic issue which is
hampering the decision making and timely delivery of quality product and services.
Research objectives
• To review about the main operation at H&M along with analysis of operational
processes, techniques, planning and control systems used within a firm.
• To create awareness about the issue of lack of effective communication at workplace
of H&M along with analysing about SOM as a core function in all organisations
operational processes to have more effective and integrated strategic planning
process.
• To evaluate about the role of effective communication in leading a positive
relationship within value chain strategy, marketing, design, control, human resource,
procurement and other interactions involved in the managing of operational activities.
• To determine about the effective use of game theory and a range of practical activities
to resolve the issue of lack of effective communication to ensure improved strategic
operational decisions along with improved monitoring and controlling of those
decisions.
Research questions
• What are the main operation present at H&M along with analysis of operational
processes, techniques, planning and control systems used within a firm?
• What is meant by the issue of lack of effective communication at workplace of H&M
along with analysing about SOM as a core function in all organisations operational
processes to have more effective and integrated strategic planning process?
• How a vital role is lead out by effective communication in leading a positive
relationship within value chain strategy, marketing, design, control, human resource,
procurement and other interactions involved in the managing of operational
activities?
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• What is meant by game theory and a range of practical activities which are applied to
resolve the issue of lack of effective communication to ensure improved strategic
operational decisions along with improved monitoring and controlling of those
decisions.
2.0. Main Body (Literature Review)
2.1. To review about the main operation at H&M along with analysis of operational processes,
techniques, planning and control systems used within a firm.
As per the view point of He, B., Gupta, V. and Mirchandani, P., 2021, the term operation
within a manufacturing company or a service oriented firm mainly comprises of the set of
practical application and process that are applied by a company to combat various resources and
forces to come up within a finished product or services. It has been analysed that many
operations and activities are undertaken by H&M company to produce and come up with
fashionable clothing for different age groups of men and women a discussion and evaluation of
which is provided as below:
 Business technology: At H&M business technology plays a crucial role in operational
activities. It is mandatory to be acquinted with the technologies used in the business and
update them on the routine basis as per the requirrment (Biloslavo, Bagnoli and Edgar,
2018).
 Accounting: Accounting function is a major functioned performed in any organiation to
keep a track of the expenditures and incomestaking place in the organization.
 Human Resource: Human resource is another important function at H&M which helps in
staffing the right person, at the right place and at the right time.
 Controlling: Controlling function at H&M helps to decide the standards of the
performance and with respect to them the actual performance is measured and checked
for the deviations and further corrective actions are taken.
 Supply chain: The Supply chain management function at H&M helps in facilitating the
access to their products to their customers (Grover and Kar, 2017).
 Strategy & transformation: Strategies are a vital part of every organization. No
organization can prosper or achieve their organizational goals if their strategies are not
formulated and implemented. Hence it is an important function at H&M.
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