BM563 Operations and Service Management: Argos Case Study Report

This report examines the operations and service management practices of Argos, a British catalog retailer and subsidiary of Sainsbury's. The analysis begins with an overview of Argos' operational strategies, including its effective distribution channels and supply chain management, which enable efficient product delivery and customer service through various outlets and online platforms. The report then assesses the impact of these practices on the organization's efficiency, highlighting the importance of a well-structured distribution network and the challenges associated with international expansion. Furthermore, it explores the role of technology in streamlining processes, such as online ordering and inventory management, and discusses the adoption of digital solutions for sales, marketing, and customer service. Finally, the report identifies the supporting functions of operation management, including marketing, sales, and human resources, and explains how these functions contribute to organizational success by aligning with customer needs and achieving competitive advantages. The report concludes by summarizing the key findings and emphasizing the importance of adapting to evolving market dynamics and technological advancements.

BM563 OPERATIONS AND
SERVICE MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explaining the operation management practice that is performed by Argos...............................3
Analyzing how operation management practice impacts the organization in regards to
efficiency......................................................................................................................................4
Analyzing how technology could be embedded in this process and factors that has already
been achieved...............................................................................................................................5
What are the supporting functions of operation management practice and how they help in
organizational success?................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is the term that is used by the business to create high level of efficiency
within the organization. The chosen firm of the report is Argos. It is the British catalog retailer
that is operating in the UK it is also the subsidiary of Sainsbury. The present report will discuss
about the operation management practice that is performed by the Argos. Further it will also
analyze how this operation management practices Impact Company related to efficiency. Along
with this it will also evaluate how technology embedded in process and how it has been already
achieved. Lastly it will also support the functions that are linked with the practices and how they
will assist with ensuring organizational success.
MAIN BODY
Explaining the operation management practice that is performed by Argos
By using the business process redesign theory Argos have performed its operating management
practices that is they have very effective distribution channel it helps them to have different
outlets on the different location so did the customer can know about what are the product that are
sold by the company along with this by using these outlets the customer can also visit there is
stores and off online bear they can make the payment on the system and can collect items which
will help them to reduce their time. this is strategy or the practice his made for the customer as
they have to waste their lot of time at the time of buying the products but the effective
management of Argos as high level of supply chain and distribution channel which will help
their customer to get their product in less time and also the products are available at their stores
on the other hand it is also this success of the Argos. Along with this they also high supply chain
management but help them to provide services to their customers by using catalog system
(Abideen, Mohamad and Fernando, 2020). The customer can see the catalog at the time when
they are visiting their store and they can select the product they are looking for or if the product
is not available they can also book it online and can make the order of it at the time when it is
available or they can ask for home delivery. this is the reason Argos is the leading company and
the most successful which is having good supply change management system and effective

distribution channel which make them different from other competitor and companies (Chahal,
and et.al., 2020).
Analyzing how operation management practice impacts the organization in regards to efficiency
The effective distribution channel of Argos impact the organization related to efficiency (Argos
Unique Multi Channel Retailer Commerce Essay.2021). As Argos is known as one of the
merchandise which have wide range of products data related to home and general. they have to
face impact at the time when did thing for international market on the other hand the company
must also focus on global scale effort as they are established well in local markets (Al-Dulaimi
Wang and Chih-Lin, 2018). They have to face some push and pull factors at the time when
company drive and to internationalize. Market screening the multinational channel of Argos is
very unique which different value, choices and convenience is they sell their products at around
700 stores in UK and Ireland along with the advantage or buying product at online and over
phone. The current competitors of Argos are Zara home, British home stores and IKEA.
Efficiency has impacted by different distribution channels that are Sales force, qualified
management, infrastructure, wide market coverage, stable financial position, company size and
solid reputation. As effective distribution channel requires the relationship with market data
related to creating, maintaining and developing good relation with this customer at the time of
distributing products.
On the other hand it affects efficiency because the company has to create mutual relationship,
delivery and communication between its producers and distribution. Along with this the
companies also have to see that they create a long term relationships with their customers and
maintain and develop all the things that are needed by its customers. the impact is that at the time
of using this distribution channel the company have to face various factors that are related to
political, technological, legal and social factors that keep on changing time to time and because
of that the company also have to change its policies and strategies that are made by organization.
Further they also have to face different conflicts data related to this agreement at the time of
channels member, conceptions of existing situation and point of policy (Donohue, Özer and
Zheng, 2020). Efficiency is related to the use of resources in its best manner which will give
possible results if they are optimizing proper manner the company can reach its efficiency along
with improving their bottom line. Increasing supply chain management will also result in

increasing distribution channel efficiency at the time of implementing strategies that are related
to training, project plans an increasing their visibility towards supply change.
Efficiency can be increased in three levels that is at the time of picking the channel
intermediaries along with this increasing the focus that is on the supply chain management along
with this creating channel into single and strong manner. The impact that is faced at the time of
intimidator is that at the time of channel intermediaries they have to increase their distribution
channel and by reducing benefits letter given by channel intermediaries. The work of
intimidators is to sell and manufacture the product in the open market On the other hand
sometimes it also resulted in decreasing the sales value by increasing the cost of the products that
are sold by the company. Company has to focus at the time of consolidation as it will help them
too increase their efficiency related to distribution channel by creating it strong one. it will result
in cutting down the cost that are used at the time of managing the channel along with this it will
also lead to less oversight.
Analyzing how technology could be embedded in this process and factors that has already been
achieved
Technology plays an important role in the effective distribution channel as it helps the company
to hold the key factors data related to problems Anne applied it at the time of supply change
powerful changes is possible. By using technology the company can link their buyers and
supplies because of that business will gain extraordinary visibility at the time of supply change.
Technology also helps the organization to do their accountability over different decision’s better
remove by the company. for the short term actions the technology helps the firm to understand
what are the financial and operation impact better to be faced by the business across multiple
scenarios along with this it will also help the companies to know about their supply demand
balance by focusing on their building buffer stock which is necessary to achieve the organization
objective. By using technology they can also evaluate the financial health of their suppliers by
knowing what the impact of supply change is. the company can also make long term
consideration by building agility my creating micro supply change and many operating models
which are important for creating flexible contract letter for supplier and building relationships
sweet manufacturing off purchase.

It will also help them to make their customers aware of what are the products sold by the
organization. Further by using this the company can also make short term and long term
approach that well drive and their values. At the time of distribution challenge the company had
to face various problems at the time of operational inefficiencies, say it insides an negative
impact of their shareholders value to overcome this challenge the company have started using
digitalization what their distribution operations. Argos have adopted the technology for it sales
and marketing latest regarding advertising the variety of products later sold by company. They
use social media to promote themselves in retail market that is on television, newspapers,
posters, magazines and on Internet.
Along this all the company was the most beneficial an efficient at the time. They have also
adopted the technology that helps them to find who their customers are what their needs and
preference of their clients and what are the factors they will need to achieve their targets. The
company has exploit technology ordered full potential that are used by Tesco and Amazon. The
company has also adopted the technology that is related to online serving their customers by
delivering products at their home which will help them not to waste their time. The company has
also adopted a technology in the year 1995 by launching their website which made them you
case number 2 clicks and breaks retailer that is the combination of both store and online sales.
Later they have also implemented stock ordering and re storing system that tells them do stock
room assistance at their correct location. on the other hand they have also improved their
technology in regards to their gaming sector because they were not performing well. They have
made strategies of gaming like Granger station games which will also include trade for games
and values
What are the supporting functions of operation management practice and how they help in
organizational success?
The supporting functions that are linked with distribution channel our marketing, sales,
production, human resource, accounting and finance (Donohue, Özer and Zheng, 2020). This
business function please as important rules in the company for achieving object and goals along
with this it also made Strategies that are related to achieving a competitive advantage.
Distribution channel is an important process that Argos deals with for expanding its business by
selling its product online through its customer. on the other hand the other function is related to

marketing that includes planning, promoting and selling of goods and services as per the needs
and satisfaction of customers. It also includes marketing mix that is related to price, place,
promotion and product all these perform different activities data related to fulfilling all the needs
and desires of the customers. also this is important for the firm to achieve its objectives to be
competitive in the global era (Merigó and Yang, 2017). The company uses 7 distribution
channels data related to sorting, accumulation, assorting, a location, promotion, negotiation and
risk taking. It helps in success of organization in various by this the company create a
distribution channel strategy which helps in achieving all the organization objectives.
Firstly the company chooses right distribution channels that is related to when and how their
customer will prefer to buy the goods Anne what are the trainings and guidance that is required
by the employees of the company at the time of strategy. Mainly the success of organization is
depended upon cost and profit margin especially at the time of Ben intermediaries and third
parties are involved in this distribution channel (Reid and Sanders, 2019). At the time of making
strategy the company have to make sure their distribution channel is viable and carried for long
term purpose along with possibility of scaling to demand. the main aim of the company is to give
benefit to its distributor and customers. to make effective distribution channel successful the
company make sure that their employees are properly trained about their products and they also
contribute their efforts at the time of success. Along with this company also focuses their
intermediaries and customer to understand what the product data are sold by the company for
this they also adapt the channels that are related to B to C and B2B. As it is easier channel by
which business can direct Contacts with other companies along with this they can also contact to
their customers.
Company also shared their information that is related to combining marketing and sales work it
has them to save time at the time of preparing the marketing of a distribution channel also it
results in success of the organization is if the strategies are made in proper way then it will
results in achieving all the objectives of the company along with this it is also the responsibility
of marketing Department to keep focus on this strategy that it is working properly or not in the
market (Harrak and Lababidi, 2020). Argos also knows how to keep the balance between the
number and type of distribution channel to avoid the consequences that is related to different
prices, launching an promotion campaign and positioning. For example if the customer will find

low price as compared to Argos then it will result in decreasing the profits and demands of its
goods. Further to make this strategy successful the company also cultivate national network of
distribution channel So that it can create natural partners which will also help them to increase
their relationship with their existing or target customer (Sabbaghtorkan, Batta and He, 2020).
Along with this it also has the success of the business ads company prepare common objectives
and coordinate them by conducting promotional campaigns Anne giving them training about
their product and services data manufactured by the company.
CONCLUSION
By summing up the above report it has been concluded that Operation management is concerned
with all the things that are related to converting materials and labor into goods and services. With
the assistance of the above report the company has very effective distribution channel it helps
them to have different outlets on the different location so did the customer can know about what
are the product which is the operation management practice by Argos. Further the report has also
discussed about the how operation management practice impact organizational in its efficiency.
With the assistance of above report technology plays an important role at the distribution channel
process and what is the function that has already been achieved. Lastly it has also explained the
supporting functions that are linked with distribution channel our marketing, sales, production,
human resource, accounting and finance

REFERENCES
Books and Journals
Abideen, A.Z., Mohamad, F.B. and Fernando, Y., 2020. Lean simulations in production and
operations management–a systematic literature review and bibliometric analysis. Journal of
Modelling in Management.
Al-Dulaimi, A., Wang, X. and Chih-Lin, I. eds., 2018. 5G networks: fundamental requirements,
enabling technologies, and operations management. John Wiley & Sons.
Chahal, H., and et.al., 2020. Operations management research grounded in the resource-based
view: A meta-analysis. International Journal of Production Economics, p.107805.
deSouza, A. and Haddud, A., Examining Supply Chain Management Structures and Models in
Maintenance and Repair Service Operations.
Donohue, K., Özer, Ö. and Zheng, Y., 2020. Behavioral operations: Past, present, and
future. Manufacturing & Service Operations Management. 22(1). pp.191-202.
Gupta, M. and Gupta, S., 2019. Influence of national cultures on operations management and
supply chain management practices—a research agenda. Production and Operations
Management, 28.11). pp.2681-2698.
Harrak, Y. and Lababidi, M.R., 2020. OPERATIONS MANAGEMENT TO BEHAVIORAL
OPERATIONS MANAGEMENT: SHIFT OF FOCUS FROM COST/QUALITY TO PEOPLE
ISSUE. In Развитие территориальных социально-экономических систем: вопросы теории и
практики (pp. 145-147).
Merigó, J.M. and Yang, J.B., 2017. A bibliometric analysis of operations research and
management science. Omega. 73. pp.37-48.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Sabbaghtorkan, M., Batta, R. and He, Q., 2020. Prepositioning of assets and supplies in disaster
operations management: Review and research gap identification. European Journal of
Operational Research. 284(1). pp.1-19.
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