Business Operations Management Report: Al-Muhaidib vs. Olayan Groups

This report provides an in-depth analysis of operations management, focusing on the Al-Muhaidib Group and the Olayan Group, both significant players in the food and commercial goods sectors. The report examines the core objectives of operations management, including planning, organizing, and implementing production and services to efficiently utilize resources. It highlights the competitive strategies of both companies, such as Al-Muhaidib's expansion into national and international markets and Olayan's food franchise model. The report further compares their approaches to business diversification, technological adoption, supply chain management, and marketing strategies, offering insights into their strengths and weaknesses. Recommendations include a focus on skilled employees, advanced technology, and effective distribution channels. The conclusion emphasizes the importance of operational activities in achieving profitability, growth, and competitive advantage, while also suggesting areas for improvement for both companies.

Critical Thinking

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Operation management is considered as an administration field that is more concerned
with formulating, managing and controlling the procedure of production and facilitating change
in business operations.. The two terms that are associated and have direct relationship with
operation administration are logistics and supply chain management. The report will focus on
evaluating the implications of operation management in Al-Muhaidib group which is an
international private group of companies dealing in food as well as commercial goods. Also,
there will be discussion on Olayan group that is also operating in the same sector.
MAIN BODY
The main objective of operations management is to support organisation in effectual and
efficient utilisation of resources. It has been identified from the above study that both the cited
companies are performing well in the market and giving stiff competition to each other. It
includes various activities such as planning, organising and implementing in relation to
productions, manufacturing of products as well as services. This process emphasizes on
supporting the firm in converting input into outputs in an effective and efficient manner. Al-
Muhaidib Enterprise is focusing on expanding its core business activities in national as well as
international market. Due to this plan, firm is able to develop a vast network of sales offices.
This has provided business entity an opportunity to provide goods as well as services to wide a
range of customers. It has given enterprise a chance to foster growth and achieve success in the
market (Wheelen and Hunger, 2017). On the other hand, Olayan group has established food
franchise that has enabled firm to provide high quality of food and effective services to its
customers
Al-Muhaidib company is totally is dealing in many sectors such as food as well as retail,
industrial, financial services, real estate and contracting and thus, changes in business
environment has less impact on its operational activities and also on its profitability. Whereas,
Olayan group is dealing only in single sectors its activities are much influenced by changes in
external environment. The company is order to reduce the effect of various environmental factors
has planned to diversify its business activities into many sectors by adopting partnership strategy.
Effective partnership has allowed business entity to diversify its operation into various sectors
such as construction, trading, food processing and restaurants, office equipment etc. It has
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provided firm an opportunity to increase its profitability and gain market share (Pitelis and
Runde, 2017).
The unique characteristics of Al-Muhaidib group is that it has become specialised in in all
facets of rice distribution and marketing. The company now has the distinction of being a major
player in the food industry. By expanding its product lines to include Pasta. Enterprise
emphasises on acquiring national as well as international products as well. This operational
activities have provided company an opportunity to become market leader in food industry. On
the other hand Olayan has company has gained expertise in producing burger. It has established
its major and big franchisee in international market as has employed local operators. This
activity has assisted firm in identifying the needs of domestic people and producing goods
accordingly. It has provided enterprise an opportunity to gain competitive advantage in
international market and gain customer loyalty. The another food option that is provided by
organisation is Chicken brand that has supported business entity in attracting more number of
consumers (Hudson, 2017)
Advanced and latest technology has been adopted by Al-Muhaidib group that has allowed
firm to improve its quality of food and provide quick services to its customer. On the other hand
Olayan group still using traditional technology for producing food. Updated technology has
allowed Al-Muhaidib to produce innovative food item. On the other hand, use of traditional
technology by Olayan has enabled firm to maintain or improve the quality of its food items.
In recent years Al-Muhaidib group has developed a production to distribution operation
that provide services to its customers. It has also led to the export well as exporting of goods
around the region. The Group is a partner in development with local interests and in regional
markets with major international brands. On the other hand Olayan group has developed its
effect supply chain and logistics management that enables business entity to provide quick
services to its customer.
Effective marketing strategy has provided Al-Muhaidib group an opportunity to generate
brand awareness. Whereas effective partnership and franchisees has allowed Olayan group to
promote their products as well as services in international market. Olayan is famous for
producing chicken and burger. Whereas Al-Muhaidib is well recognised for providing good
quality of rice (Galati and Moessner, 2017)
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Al-Muhaidib is required to have focus on appointing dedicator operators and talented as
well as skilled employees. As this will assist business entity in increasing their operational
efficiency and improving quality of services. On the other hand it is essential for Olayan group
of companies to adopt advance technology as this will aid firm in increasing their production
capacity and operational efficiency. This activity will also allow business entity to increase their
competencies and maintaining good relationship with consumers.
The Olayan group has established its franchises at many locations that assist business
enterprise in communicating with customers. It has enabled enterprise to reducing marketing cost
and demonstrating the benefit of brand to consumer in market. This activity has provided firm a
chance to interact directly with consumer and encourage them to buy their products as well as
services. On the other hand, Al-Muhaidib is totally dependent on marketing personnel in order to
facilitate communication with customers (Vedung, 2017)
It has been suggested to company that it should conduct training programmes for their
marketing personal as this will assist firm in providing professional services to their client.
Whereas Olyan group is suggested that rather depending on its franchisee for interacting with
customer organisation should develop their focus on establishing their own stores. Whereas It is
required by Al-Muhaidib to develop its online website in order to interact with customer as this
will aid firm in identifying the needs and demands of consumer.
The other recommendation to Al-Muhaidib is that it should adopt effective as well as
suitable strategies in order to expand their business in international market. As this operational
activity will allow business unit to increase its profitability and fostering growth. On the other
hand Olayan group is required to emphasize on its operational activities rather than expanding its
business or diversifying its product line. This action will help enterprise in increasing its
efficiency and effectiveness.
The Al-Muhaidib group should select effective distribution channel and need to have
focus on logistics and supply chain management. As using this strategy the business entity will
able to reduce its cost of distribution and will able to increase its profit margins. Whereas it is
Olayan group to emphasize on inventory management as this can have negative effect on the
profitability and financial performance of organisation (Kew and Stredwick, 2017)
Al-Muhaidib can use six stigmas that is the techniques or methods used for improving the
quality of process. The organisation aims at making continuous efforts in order to accomplish
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stable and desire process outcome. It is essential for firm to remain committed to its strategies as
well as decisions related to improvement in quality of goods as well as services. On the other
hand Olayan group intends to achieve high financial return.
It is significant for Olayan to develop their own strategy rather than relying on plans that
has been formulated by other companies dealing in same industry. Whereas, Al-Muhaidib is
need to develop effective controlling system in order to control and monitor various operational
activities. This activity will assist business entity in ensuring its quality of products and
providing product at reasonable price to consumer.
Al-Muhaidib should take initiative or introduce innovation process in their business
activities as this will allow firm in attracting more number of customers (Bauer,Eckhard,Ege and
Knill, 2017).
CONCLUSION
It has been concluded from the report that operational activities play a significant role in
management. Thus, it can be said that operational activities have a great impact on the
profitability and growth of firm. An effective operational system can assist enterprise in reducing
its cost of production, improving the quality of products as well as services along with having an
effective control on activities. But still there are various areas of improvement that can help both
enterprises in achieving success and fostering growth.
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REFERENCES
Books and Journals
Hudson. M. (2017). MANAGING WITHOUT PROFIT. DIRECTORY OF SOCIAL CHANG.
Wheelen. T. L. & Hunger. J. D. (2017). Strategic management and business policy. Pearson.
Pitelis. C. and Runde. J. (2017). Capabilities, resources, learning and innovation: a blueprint for
a post-classical economics and public policy. Cambridge Journal of Economics. 41(3).
pp.679-691.
Galati. G. and Moessner. R. (2017). What do we know about the effects of macroprudential
policy?.
Vedung. E. (2017). Public policy and program evaluation. Routledge.
Kew. J. & Stredwick. J. (2017). Business environment: managing in a strategic context. Kogan
Page Publishers.
Bauer, M. W. Eckhard, S. Ege J., & Knill C,(2017). A public administration perspective on
international organizations. In International Bureaucracy (pp. 1-12). Palgrave Macmillan
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