Detailed Report on Business Operations and Systems for B&M Company

This report provides a comprehensive analysis of B&M's business operations and systems, focusing on key aspects such as retail models, e-commerce strategies, and online shopping solutions. The report begins with an introduction to operation management and its significance in the retail sector. It then delves into a comparison of different operational models, including the recurring revenue model and e-commerce sites, with a specific focus on their application within B&M. The report also explores appropriate solutions for online shopping, addressing issues like website usability, security, and the implementation of mobile applications. Furthermore, the report includes a detailed root definition and CATWOE analysis to address product delivery issues. Finally, the report concludes with a discussion on how managers can translate performance objectives into operational priorities, providing a holistic view of B&M's business operations.

Business Operations and
systems

Table of Contents
INTRODUCTION..................................................................................................................................2
TASK 1.................................................................................................................................................. 2
Compare and contrast of different models................................................................................................2
TASK 2.................................................................................................................................................. 5
TASK 3.................................................................................................................................................. 7
How the managers would turn performance objectives into operations priorities...................................7
CONCLUSION..........................................................................................................................................9
REFERENCES.....................................................................................................................................10

INTRODUCTION
Operation management is linked with the aspect of managing key operations of the
company so that it is possible to serve customers in effective manner. Further, it is the ultimate
objective of every business to satisfy need in efficient manner. In the modern era every business
has started to indulge into practices of selling products online so as to provide more convenience
to target market. So, this supports in enhancing customer satisfaction. Apart from this, mobile
applications along with other systems are effective for customers at the time when they purchase
products (Valtakoski and Järvi 2016). The present report being carried out is linked with B&M
company where business is considered as one of the leading variety retailers in the United
Kingdom. At present organization employs 22,500 staff members so that its overall operations
can be carried out efficiently. Various tasks have been covered in the present report which
includes different models used by retail sector, appropriate solutions for online shopping etc.
TASK 1
Compare and contrast of different models
In order to operate efficiently in the market large number of models are used by the
businesses operating in the retail sector and through this it becomes easy for company to carry
out overall operations efficiently and in appropriate manner. These models support businesses to
focus on their desired aims and objectives. In short it acts as development tools for company and
supports in gaining competitive advantage also
. Different models adopted by retail companies are as follows:
The recurring revenue model
Through this model main aim of the business enterprise is to secure the customers on a
long term basis as they are indulged into practices of consuming products and it is expected that
products will be purchased in near future also. Apart from this, it is well known fact that for
companies to acquire customers it is high but retaining them for longer period of time is
regarded as the main goal. Retail companies heavily relies on this model where they rely on
providing discount and other form of offers so that customers can be easily attracted towards
range of services in the market (TOMY, and Pardede, 2016). Apart from this, it generates large
amount of revenue for the businesses and this enhances their profitability along with the sales
volume. On the other hand, it is beneficial for the customers who prefer to purchase products in

bulk and this supports business in satisfying need of the target market. Recurring model strongly
relies on the ways through which company can recover the overall cost associated with selling
goods and services in the market. In case if higher revenues are earned then it is possible to
recover the major costs. Further, for enhancing profitability level discount and other form of
marketing tools such as social media promotion is considered with the help of which company
can easily serve its customers in better manner(Garg, Modi and Chaudhary, 2016).. Apart from
this, revenue model focuses on satisfying need and requirement of the target market where
business can easily its competitive strength and this can bring fruitful results.
Ecommerce site
It is one of the most effective models used by retail companies in the modern era.
Further, adoption of this model has supported businesses to focus on accomplishment of desired
aims and objectives. Apart from this, their exist large number of market challenges such as
competition, political barriers etc which directly leads to decline in overall performance of
company in the market. Further, majority of the businesses operating in the market of UK are
offering products with the help of online website and they are being able to deliver large number
of customers easily. It has acted as major source of attraction where businesses are able to retain
its customers. Further, with the development of ecommerce website companies can easily
highlight entire product range in front of customers and the overall benefits which can be
obtained through this. Company like B&M totally focuses on this model as business sells entire
range of retail products through online sources and this has enhanced overall sales volume of the
company in the market. It has lead to rise in the profitability level which is one of the main
motives of business. Company has provided additional benefits to its target market by employing
this model where individual sitting at home can easily purchase range of products and can satisfy
actual requirement (TAN, Muskat and Zehrer, 2016). Therefore, in this way development of E-
commerce site as a model is considered to be effective and has become one of the major source
of income for retail companies operating in the market.
Out of these two models more appropriate one is e-commerce site which provides
platform to business so that they can easily offer range of products to its target market. No doubt
various items are present in the retail sector which businesses can easily offer through online
source. Apart from this development of own company’s website bring favorable outcomes such

as acquiring customers and retaining them for longer period of time is easier. As compared with
revenue model ecommerce one is much better and provides favorable result to the company.
Moreover, business can easily understand what are the actual requirement of its customers and
initiatives can be taken for satisfying their overall need in most appropriate manner. B&M has
developed its own website online through which different products are offered such as home&
living, electrical, food and drink etc. Unique features of the entire product range are highlighted
and this has become one of the main reasons behind success of business in the market. Times to
time new models are being considered by the firm so as to maintain market performance
(Bäckström, Ingelsson and Johansson, 2016). On the other hand, this model is a source of
revenue generation for the company where by offering large number of products it become easy
for business to enhance revenue level which is considered as one of the main objective of
company behind carrying out operations in the market. So, on the basis of information gathered
it can be said that ecommerce model is effective for the entire organization (Tavakoli, 2016).
Appropriate solutions for online shopping
B&M offers entire range of its products through its online website and through this
customers are provided large number of information linked with product range. Further, it is
required for business to segregate category of every product individually so that customers can
easily gain information. Moreover, the website designed by business must be user friendly so
that it may not create confusion at the time when customer may purchase any kind of
information. Apart from this, it must provide full details regarding the product so that customers
can take quick purchase decision. Further, information in relation with discount and other offers
must be highlighted on the website as it can become major source of attraction for business
operating in the market. This can surely bring favorable results for B&M in the market (M,
2016). It is the duty of management to ensure that no outdated information must be present in
the website of company on the basis of which customers purchase product. Apart from this
security issues must be considered as site hacking and sharing of back account information with
third party is most common. Due to present of these issues customers may prevent from
shopping products online and in turn it has negative impact on the brand image of business.

On the other hand, it is beneficial for organization to introduce mobile applications in the
market through which full information linked with products and services can be shared with the
target market on continuous basis. Through mobile application it is convenient for customers to
know about the product range and they can support business in gaining competitive advantage
also. This can enhance overall online sales of the business and company can easily deal with the
range of challenges being present in the business environment (Eriksson, and Ingelsson, 2016).
Apart from this, large number of issues are present linked with the online shopping which
company has to consider such as centralized and decentralized inventory where company has to
ensure whether employees working at lower level has to take inventory decisions or top level
management. Further, cost implications have to be considered where cost of employing high
technology such as in mobile application etc. This can reduce profit margin of the business and
can have unfavorable impact on the management also.
Further, sustainability issues has also to be considered by management where business
has to search for appropriate ways with the help of which it is possible to sustain in the market
for longer period of time. On the other hand business is required to manage supply change in
appropriate manager where the parcel conundrum has become one of the major issue. Majority
of the companies delivers parcel to neighbors of customers at the time when they are not present
at home. So, it is recommended to B&M to adopt appropriate delivery channel where company
can give a call to customers in advance so as to know whether they are at home to receive the
order or not (Yarmen, and et. al., 2016). This can be convenient. Apart from this, advanced tools
can be employed with the help of which company can intimate to customers regarding product
delivery and this can be convenient to both. But on the other hand, B&M must focus on
designing such tools which are environmental friendly and does not have adverse impact on the
surroundings in which business operates.
TASK 2
ROOT definition
It is considered as the structured description of the new system and highlights the range
of activities which takes place in the company. Further, the root definition takes into
consideration three elements which are what, how and why. The new system being designed by

B&M is associated with resolving issue of product delivery where customers are not aware
regarding at what time they product will be delivered. In case if they are not at home then
products are delivered in their neighbor house (Valtakoski and Järvi 2016). So, customers are
unaware about the product delivery. So, in this regard new system can be adopted by B&M
through which proper information regarding product delivery can be provided to target market.
X: The system being designed by B&M supports in providing information regarding product
delivery such as time and data at which product will be delivered. Further, customers are given
cal when any individual departs for giving the order of customer at home. This is one of the
main function of this system which has been designed
Y: The entire functions are being carried out by this system through advanced technology such
as IT. Further, it reduces the overall efforts of the company which is being required at the time
of delivering product in the market.
Z: The main reason behind adoption of this system is that B&M is facing issue in relation with
product delivery where customers are not able to know the exact time at which products will be
delivered to them
(Draffan and et. al., 2016). So this has become issue for them.
CATWOE analysis
C = The main customers of the business are the individuals who prefer to purchase products
online. Further, on the basis of customers need B&M has identified the key issues being faced by
business at the time of carrying out overall operations in the market. Apart from this, with the
help of new system B&M will target its customers in appropriate manner and this can lead to
accomplishment of desired aims and objectives.
A = Considering the entire range of activities carried out by B&M the agents of business are
individuals who are indulged into practices of delivering products to the customers. Apart from
this, suppliers are also the main agents for business
T = The system being designed by the business takes information from the internal operations of
the business and the information is being shared with customers which is considered as an output
for the company (Yarmen, and et. al., 2016).

W = This element highlights the overall consequences of implementing the system as it can lead
to rise in level of customer satisfaction etc
O = Owners of B&m posses the capability to implement this system
E = While implementing the new system business has complied with the legal requirement along
with the resource limitations.
TASK 3
How the managers would turn performance objectives into operations priorities
There are many ways which will help the B and M to turn performance objectives into
operations objectives.
 To increase cash and short term investments till 3 percent within year.
 To enhance the long term debt till 90 percent in the one year.
 To raise current ratio of firm till 3 percent within year.
 To increase market share of firm at least 3 percent in the one year.
 To raise sales of corporation till 10 percent within year.
 To expand its business in national and international market.
Management of organisation can increase Cash and short term investment by improving
financial conditions in appropriate manner. This process contribute effective role for B and M to
complete this goal in the United Kingdom. Further, organisation has also reduced its long term
debt which affect its business operations in the market. Corporation can achieve its objective
through developing better relationship with suppliers and consumers in the retail sector. In
addition to this current ratio of B and M is also reduced in 2013 which affect its liquidity and
efficiency in the market. Organisation can maintain its current ratio by reducing liabilities and
increasing current assets which can help to manage its operations (Eriksson, and Ingelsson,
2016). Along with this, management of corporation can increase market share through providing
effective quality of products and services in retail sector of United Kingdom. This process
contribute effective role for B and M corporation to increase market share and sales as per
targeted goals and objectives in the market. So these practice can play important role for
organisation to increase profit and revenues as comparison of its competitors. They can help the

B and M corporation to expand its business operations in global and domestic market. For better
development organisation take a feedback from their employees and according to their reviews
change the management strategies. By doing this thing company can create a positive
relationship with their staff member.
Resources for implementation of the new process
Generally, management of corporation needs various kind of resources human, financial
and technological resources to manage to implement new process which can provide huge
reliability to manage their operations in the market.
Human resources: They are key element for management of B and M corporation to
manage its operation in appropriate manner. Staff members and managers can play important
role for organisation to develop effective strategies by analysing various external and internal
factors in the market. In addition to this, they can also help the B and M corporation to avoid
various type of risks by taking correct steps on the basis their market experience (Bäckström,
Ingelsson and Johansson, 2016). So these human resources can support the B and M corporation
to execute new process in a appropriate manner. Further, they aid the firm to achieve success in
retail sector of United Kingdom. Human resources' management also time to time organised
some training section for the employees. In this training section head department or higher
authority guide their employees and also explain the roles and responsibility of each department.
By this training section employees raise their capabilities and also increase their efficiency. In
training section employees also clear their doubts which are related to the workplace or work.
Financial resources: financial resources play important role for organisation to
implement designed strategies in the market. For this execution of new approach, B and M can
use its net earning, monetary funds of their investors as well as bank loans which can contribute
effectively in the market. This process contributes effective role for organisation to manage its
operations in a better way. If the financial resources of organisation is strong so other
shareholder put their help into the company and also organisation raise their brand image.
Technological resources: these kind of resources can help the B and M organisation to
achieve effective information and knowledge. For this process, management of corporation can
use ERP (Enterprises resources planning) and CRM (Consumer Resource Management) to gain

better information. This approach can help the B and M corporation to execute their strategies in
a appropriate manner. Company can save their all data by using cloud computing, buy using this
latest technology company can save their whole data which are related to the customers and any
other numbers (TAN, Muskat and Zehrer, 2016). Moreover, the main benefit of cloud
computing is nobody can easily hack it. For more technology company provide Wi-Fi
technology to their all employees so they all can easily search anything.
Discussing how the business performance can be measured post implementation
For this process, management of corporation can use balance scorecard techniques to
evaluate performance of business in the market. B and M can develop effective criteria on the
basis financial, consumer services, internal process as well as organisational capabilities. Then
after, organisation set standards to compare with actual results on the basis designed aspect in the
market. So this way, management of B and M can evaluate its business performance after
implementation of new process (TAN, Muskat and Zehrer, 2016). In addition to this, this
process can contribute effective role for organisation to develop new strategies in a near future.
Further, B and M corporation can use Balance scorecard software which can help to analyse the
performance of implemented strategies in the market.
CONCLUSION
The entire study being carried out has supported in knowing about the business
operations of B&M. Further, business is efficiently operating in the market through its online
platform but some changes are needed necessarily for the growth and welfare of business. Apart
from this, market is highly challenging due to which company can totally rely on online sources
for enhancing market system. Further, the new system being implemented linked with
introduction of new system is effective through which business can easily deal with the range of
challenges being present in the environment.

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