Comprehensive Business Report: Operations Management Analysis at Asda

This business report provides an in-depth analysis of Asda's operations management. It begins by defining operations performance, supply chain strategy, and capacity and inventory management. The report then reviews relevant literature, identifying critical issues faced by Asda, such as employee skill gaps impacting supply chain efficiency. It examines the organization's responses, including the application of theories like transaction cost economics, social network theory, and game theory. The report explores how managers perceive these issues and suggests ways to interpret and evaluate the findings, including the use of monitoring and 360-degree feedback. Finally, the report offers suggestions for improvement, such as implementing total quality management and conducting market research to identify best practices. The report emphasizes the importance of skilled employees in achieving organizational goals and objectives.

Business Report-
Operations
management

Table of Contents
INTRODUCTION...........................................................................................................................1
Address the following:.....................................................................................................................1
1. Operation's performance.........................................................................................................1
2. Supply chain strategy..............................................................................................................1
3. Capacity and inventory management......................................................................................2
LITERATURE REVIEW................................................................................................................2
1. Critical issue or problems engaged in ASDA.........................................................................2
2. How organization is responding to this issue..........................................................................3
3. Different ways through which managers or practitioners perceive the issues and responses.3
4. Ways can one interpret and evaluate the findings in light of the literature.............................4
5. Suggestion for improvement...................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Operation management can be defined a business practise which is adopted in
order to increase the efficiency of performance level within the organization. In other
words, it can also be determined as converting labour and materials into services and
goods so as to maximize the profit of the company (Radnor and Bateman, 2016).
Present report is about Asda which is American owned and provides its customers with
grocery products. It was founded by J.W. Hindell in the year 1949. This report covers
topics regarding operation performance, supply chain strategy, capacity and inventory
management. Further, it covers relevant theories which will be covered in the form of
literature review.
Address the following:
1. Operation's performance
Operation's performance can be defined as a process in which all the business
unit in the organization ensure that they do work in together so that organizational goals
and objectives can be achieved (Drake and Spinler, 2013). There are different
strategies with the help of which organizations aim at improving their performance of
operations. With this respect, it includes strategies like product design, supply chain
design, inventory, process design, scheduling, quality management, layout, etc. These
type of strategies enable to make the organization achieve their desired goals and
objectives.
2. Supply chain strategy
Supply chain can be defined as a dynamic and complex demand and supply
network. In other works it can be determined to a system in which people, information,
firms, resources, etc. are involved in making the product or services reach to customers
from suppliers. Strategy chain strategy is a process which involves the cost benefit
(Hazlett, McAdam and Walker, 2013). It enables to leverage the core competencies of
the company so as to achieve the desired goals. Through operation's organization aim
at reducing their cost of their product and services. This enables to attract customers
and in increasing profit and revenue of the firm.
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3. Capacity and inventory management
Capacity management can be determined as a process in which information
technology is managed. In addition to this, the main aim is to make sure that the
resources related to IT are shaped in order to meet the future and current requirements
of business and that also in a cost effective manner (Fleury, Shi and Cordeiro, 2013).
On the other hand, inventory management is defined as science which helps to specify
the placement and shape of goods which are stocked. This is used mainly at different
locations in order to precede planned and regular course of production. Large amount of
products ans service are developed to meet the demand of customers. However, it is
important that they manage properly so that their production can be saved and cost can
be reduced.
LITERATURE REVIEW
1. Critical issue or problems engaged in ASDA
According to Bendoly van Wezel and Bachrach, 2015 “organizations face
different type of issues among which it becomes difficult to over come them until they
have proper managing system through which they could actually over come them”
(Bendoly van Wezel and Bachrach, 2015). In accordance with the case, one of the main
issues which ASDA is facing in their supply chain. In this context, the employees do not
have proper knowledge and skills because of which they are not able to deliver the
goods at different stores in proper time. Thus, they are not able to meet their customers
needs and requirements. As a result, this has affected the growth and profit of the cited
organization. The wants and needs of customers are not limited and it is very important
firm make sure that they fulfil it effectively and efficiently. As per Rue, Byars and
Ibrahim, 2012 “the ultimate aim of any organization is to gain maximum profit and it is
important to achieve it by meeting up their requirements” (Rue, Byars and Ibrahim,
2012). However, every cited firm that is ASDA is facing serious issues because of
unskilled employees. Organization is not able to meet their minimum demands of
service users on time.
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2. How organization is responding to this issue
Matta, Chahed and Dallery, 2014 stated that “firm need to make sure that all their
business operations are moving on proper direction so that organizational goals and
objectives can be achieved” (Matta, Chahed and Dallery, 2014). In accordance with the
case, management is planning to make use of different supply chain theories with the
help of which they will be able to over come the issue faced by ASDA. With this respect,
it includes theories like Transaction cost economies, as per Sanders and Ganeshan,
2015 “in this theory the ultimate aim is to reduce the cost which is incurred during the
business operations” (Sanders and Ganeshan, 2015). In this context, there are mainly
three type of attributes which influence the decision making. It includes degree of
uncertainty, frequency of transaction and asset specification. However, another theory
which will be used is Social Network Theory, according to Benzarti, Sahin and Dallery,
2013 “this theory understands the social aspect and relationships with different types
and this includes individual with firm, organization to organization, employees to
employees, etc.” (Benzarti, Sahin and Dallery, 2013). In addition to this, it includes
analysis of relationships and that also from different perspectives like financial, social
and technical elements. Lastly, Game Theory will be adopted and this enables to
identify the cooperative and conflicting behaviour of rational and intelligent decision
makings from different scenarios.
3. Different ways through which managers or practitioners perceive the issues and
responses
The managers understand the seriousness of the issue which they are facing. In
this context, they are analysing the situation and aim at making use of different
strategies which will enable to make the issue is resolved (Schwarz, Hall and Shibli,
2015). With this respect, managers are monitoring employees that in what all areas they
are facing issue. This is done in order to provide them proper training so that they will
be able to provide them training accordingly. ASDA is a growing organization and it is
important that in order to maintain their growth, it is important that they provide their
services and goods effectively and efficiently. Further, the cost of product is also
affecting as they are not able to deliver their products to the stores. As discussed
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above, there are different theories which enable to make the resolve the issue.
Managers will make use of these theories and this will enable to make
4. Ways can one interpret and evaluate the findings in light of the literature
According to Radnor and Bateman, 2016 “there are different theories with the
help of which one can evaluate the literature” (Radnor, Z. and Bateman, N., 2016). In
this context, there are different theories like one to one interaction, monitoring, 360
degree feedback, etc. Among these theories, monitoring will enable to analyse the
areas in which they lack. Monitoring provides the organization to make proper strategies
which will enable to monitor the issues. Further, one to one interaction can be made
which enable to know the employee's expectation. This will be also helpful in resolving
any type of conflict if they are facing among managers or employees. Workers
perception can be determined effectively and the motivation level with which they are
willing to work can be identified. This will enable to develop strategies by analysing the
issues which they face. This way organization will be able to over come the problems
which they are facing currently. Lastly, 360 degree feedback can be used as this will
help to identify where employees stand according to other workers (Drake and Spinler,
2013). The employees working in a team know what are all the skills, capabilities or
knowledge of the other workers working with them. Through 360 degree feedback the
areas can be determined ion which employees lack.
5. Suggestion for improvement
There are many things which can be done in order to improve the current issues
which are been faced by ASDA. In this context, cited organization is suggested that they
make use of total quality management. According to this management system, total
quality of the product and services will be looked. This will enable to focus on areas
through which better services can be provided to employees (Hazlett, McAdam and
Walker, 2013). Further, proper training and development can be arranged with the help
of which the areas in which employees can be improved and their understanding,
knowledge and skills can be enhanced. In addition to this, market research can be
conducted and this will help in identifying the technology or methods which are used by
its competitors in supply chain management. Accordingly, proper step can be take
which will enable to over come the current issue.
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CONCLUSION
From this report, it can be articulated that organization s has to look after all the
business operations which are undertaken. There are different type of strategies which
can be adopted by the firm in order to improve the supply chain. However, it is very
important that they have skilful and knowledgable employees who will be able to make
put on their efforts in achieving the organizational goals and objectives.
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REFERENCES
Books and Journals
Bendoly, E., van Wezel, W. and Bachrach, D. G. eds., 2015. The handbook of
behavioral operations management: Social and psychological dynamics in
production and service settings. Oxford University Press.
Benzarti, E., Sahin, E. and Dallery, Y., 2013. Operations management applied to home
care services: Analysis of the districting problem. Decision Support Systems.
55(2). pp.587-598.
Drake, D. F. and Spinler, S., 2013. OM Forum-Sustainable Operations Management:
An Enduring Stream or a Passing Fancy?. Manufacturing & Service Operations
Management. 15(4). pp.689-700.
Fleury, A. C. C., Shi, Y. and Cordeiro, J. H. D. O., 2013, June. Building an analytical
framework for the study of emerging country multinationals’ operations
management. In International Conference on Production Research-ICPR. 22..
Associação Brasileira de Engenharia de Produção-ABEPRO.
Hazlett, S. A., McAdam, R. and Walker, T., 2013. The role of operations management in
public sector policy and practice alignment: a local government analysis.
Production Planning & Control. 24(10-11). pp.988-1001.
Matta, A., Chahed, S. and Dallery, Y., 2014. Modelling home care organisations from an
operations management perspective. Flexible Services and Manufacturing
Journal. 26(3). pp.295-319.
Radnor, Z. and Bateman, N., 2016. Debate: The development of a new discipline—
public service operations management. Public Money & Management. 36(4).
pp.246-248.
Rue, L., Byars, L. and Ibrahim, N., 2012. Management: Skills & Application. McGraw-
Hill Higher Education.
Sanders, N. R. and Ganeshan, R., 2015. Special Issue of Production and Operations
Management on “Big Data in Supply Chain Management”. Production and
Operations Management. 24(7). pp.1193-1194.
Schwarz, E. C., Hall, S. A. and Shibli, S., 2015. Sport facility operations management: A
global perspective. Routledge.
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