Comprehensive Report: Business Operations and Systems at B&M Retail

This report provides a comprehensive analysis of B&M, a leading UK variety retailer, focusing on its business operations and systems. The report begins with an introduction to B&M, its history, and its current operations, including its transition to a hybrid retail model. It then delves into the application of Soft Systems Methodology to identify and address challenges related to data architecture and online search methods. The report outlines the steps involved in this methodology, including problem identification, rich picture creation, CATWOE analysis, and conceptual modeling. Furthermore, the report employs the Business Model Canvas to define operational activities, emphasizing the POLISM framework (Processes, Organization, Location, Information, Suppliers, and Management Systems). The report also examines potential issues such as data complexity, scalability limits, and increasing data volumes, providing solutions like database management strategies and external storage. The report concludes by exploring ways to enhance the customer shopping experience, including digital cards, secure transactions, and cloud storage solutions, ultimately aiming to provide recommendations for B&M's successful transition to a hybrid retail model.

Business Operations and
Systems

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
PART 2............................................................................................................................................8
PART 3............................................................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Operations system is the standard which a business processes in different
diversified industrial companies. These process are used to allow the smooth functioning of the
system within an organization. This report is based on B&M which is a leading variety retailer in
UK. The company was established in 1978 and deals in different grocery products. In this report,
different components, methodology, business models, solution to the problems and
recommendation are suggested for B&M company. In part two, root definition, CATWOE, Rich
Picture and Business Process Plan is prepared. In the end, part three included ways to turn
performance objectives into operations priorities and a balance scorecard for business
performance measurement is also explained.
PART 1
B&M is a British multi retailer home store which is formed in 1978. The company since
than has engaged 28000 staff. The company has overtaken Wilko in 2014 and continue to
improve its services in its competitive market. One of the biggest reason of taking the success
includes its purchasing of raw materials. The company sold its products a very cheaper rate as
compared to the other market competitors. The raw material and manufactured goods of around
30% of stock are purchased directly from the market of China. Apart from that, the company also
seeks the over production opportunities which can help it in purchasing the products at a lower
rate. In addition to this, the company also seeks in bulk but opportunity of purchasing goods.
This opportunity also help the company in purchasing the products at a very cheaper rate.
Purchasing ion cheaper rate allow the company to sell the products also in cheaper rate (Asif and
et. al., 2013). Thus the customers also gets attracted towards the premise of company. This will
help it in increasing its profitability and continue to grow in its sector or market.
Although B&M was already serving to the customers to the offline channels. The
company wants to switch into hybrid change i.e. they want to sell their products online also. This
will leads to a great problems for the company. Soft System Methodology is one of leading tool
in order to identify the issues and provide solutions to it. This model is not an organizational
theory but it provides faster solutions to the problem with consensus. The issues B&M can face
in selecting hybrid system is the architecture of data. This includes the products which should be
included or not. Apart from that, search methods is also one of the technical issue B&M is

facing. In order to find solution, there are many steps in this model which are performed step by
step.
The first step include, identification of a problematic situation. In order to identify the
issue the first thing is to gather a lot of information. In case of B&M, the problems can be
identified by interviewing the persons involved in making hybrid channel. Different factors also
included which can impact the situation in negative way.
Another step include, describing the problematic situation. After gathering all the
information in above step, the problems can be easily identified and defined. In order to do this, a
rich picture is framed in which role of customer, role of organization i.e. B&M and role of
problem solver is also examined. The problem identified is about to design the architecture of
data.
The next step is formulating basic definitions. In this step, an ideal way of system
functioning is described. The functioning of system depends upon CATWOE elements which are
customers of B&M, actors such as employees of B&M, transformation which include process of
turning input to output and problem solving, world view which include various stakeholder and
interested parties, owners of B&M and environmental constraints which have an influence over
B&M (Beynon-Davies, 2013).
The fourth step includes composing conceptual models. These models are created for
each activity within above step with a specific objective of each.
The fifth step includes comparing models and reality. In this step, the models which are
conceptual in nature are compared with the real scenario and analysed whether they can be
helpful or not for B&M. Gap analysis can be used for identifying the gaps between conceptual
and real world.
The sixth step include defining changes. Changes in the solution are not specific to be
applied. The changes could be implementing different data structure. The feasibility of changes
are checked whether they should be implemented or not (Bharadwaj and et. al., 2013). Therefore
implementing different data structures is not possible as it does not support the needs and
demand of customer within B&M.
The last step covers taking action. It is necessary for B&M to take action about the
problem. The changes within step 6 are involved and if the problem occurs the cycle starts from

first stage. The company should use a professional database management architecture which can
help it in structuring different attributes of customers.
An appropriate operational model is used to support the discussion done at above. In
order to do this, business model canvas is used (Operating Canvas Model, 2019). This model is
sued to define the operations of each activity involved in performing a specific task. This model
was developed by Andrew Campbell. There are six elements which are helpful in delivering
values to the customers. These are processes, organization, location, information, suppliers and
management systems (POLISM).
Processes is the step in which working operations and machinery are included which are
used to create and deliver value to the customers and beneficiaries (Boehm and Thomas, 2013).
In case of B&M, the data base administrator is tasked to manage the database of products and
customers also. This will help the company in delivering value products to the customers. These
value products will enhance the selling of company and thus gaining the competitive advantage.
Organization is the step in which people who will do the work of managing database of
B&M are included. Apart from that, the ways through the work is done is also considered. The
database administrator should be hired by the company which has a good understanding and
knowledge of this specified work. It should keep in mind the strategies and processes of top level
management within B&M.
Location of the products and services defined the area in which operations are going to be
performed. In case of B&M, the company should take a warehouse in which different products
should be placed so as to avail quick delivery of products for the customer ordering online. Apart
from that, the inventory should be placed near by most frequent delivery area. This will help the
company in providing quick delivery to the customers.
Information is the system which will enhance the working of operations within company.
The database manager should consider all the information of top level management. This
information could be level of services, delivery time schedule, details of customers etc. (Chang,
2016). Al these information should be considered by the database administrator so as to gain
faith of customers.
Suppliers of B&M are the vendors which will help it in gathering the products deliver to
the customers. The suppliers of B&M included China, UK and many more countries. These

suppliers should be provided all the information about the information about the hybrid delivery
changes within B&M.
Management systems is the administration which will help B&M to run the organization
smoothly. It includes planning, budgeting, target setting, performance management, people
assessments, risk management and continuous improvement. In case of B&M, management of
the database is important because its is one of the important aspect in delivering the products
online. If database of products and customers is not managed properly, customers can face
serious concerns about purchasing products online.
There are various issues also which occurred in managing the database. These issues
include the growing complexity in the landscape. This is the touchpoint of customer towards the
application or website of B&M selling its products online. In case of complexity in the database,
the customer looking for a particular product will find it difficult to search for (Duan and Da Xu,
2012). This will increase complexity and thus affecting the sales of company. In order to do this,
the database administrator should keep the database simple and easier so as to accessing the
information of products easily. Apart from this issues, the database administrator can also face an
issue of limits on scalability. B&M can face an issue of limiting the number of transaction of the
website of company. This will increase traffic across the website and thus hindrance produces to
customer in purchasing the products online. In order to protect from this issue the company
should identify the number of customers and than limits the number of transactions. As the
customers increases the limits should also be increased. This will help them in increasing their
customer base also. Increasing data volumes is one of the another issue ion making the database.
As the number of customers increases, the volume on database will be decreased. Therefore the
company should provide external storage volumes which can help them in storing large volume
of data also. Therefore the company can saves its operations from being interrupted.
After implementing the digital shopping centre for the customers, the shopping
experience of customers increases (Gürtner and et. al., 2012). This shopping experience will help
them to visit the website of company again. Although there are pros and cons of each activity
therefore customers can face some issues also in purchasing the products online. The biggest
threat the customers can face is about their personal information. Although GDPR law of UK
will help them in protecting their personal data. Apart from that, the transactional security is also
an important threat to the customers. In order to counter that the company should focus on

providing effective security on the transactional platform. This will protect the transaction from
the activity of intruder. In addition to this soft system methodology also help the customers in
increasing their shopping experience online. This model help the customer in eliminating various
issues regarding online shopping. Hence increasing the experience of digital shopping.
In case of serving the better facilities to the customers, the company can use various
innovative ideas so that it can attract them to its premise. B&M can provide a digital card for its
valuable customers so that they can add money into it and shop at any premise of company.
Apart from shopping, the customers can use this card for another transactions such as cash
withdrawal, other shopping centres etc. (Mason and Simmons, 2014). This digital card will help
the customers in gaining advantage from others. Therefore, B&M can serve better by issuing
such card.
There are many services which are helpful for B&M in providing online services. The
company can contract with other company in order to protect the digital transaction. There are
many organizations which are providing safe and better transactions for many retailer giants.
This will help the company in increasing faith among the customers by providing safe
transactions. Apart from that, the company also store its database with other company known as
cloud storage. This will help the company in not investing in maintenance of its data. Thus
reducing the cost of online transaction. Therefore the company will be benefited with both of the
unique services.
In case of B&M, the company is going to provide two types of services to the customers.
Either they can purchase from the stores of company or they can purchase online. The value to
the customer depends upon the perception of customer whether it wants to purchase online or
offline. Online services help the customer in saving its time while it also creates a threat of
privacy and entry of intruder (Nawanir, Kong Teong and Norezam Othman, 2013). Apart from
that, the offline services takes a lot of time and brings customer efforts in that. Although the
company is going to launch online services to the customers in spite of that, many customers
wants to purchase offline. The services launched by B&M will attract the number of customers
to purchase the products online.
There are many strategies of costing such as price skimming, economy etc. All these
pricing strategies will help the company in choosing one of out of them. Pricing strategy allow
B&M to higher their prices and than lowers with time. This strategy will be used to create brand

value. Economic pricing strategy help the company in limiting the price within the reach of
common customers. From the above discussed pricing strategies the economic pricing strategy is
helpful for B&M. The company already captured its market by allowing the customers to
purchase cheaper products online. Therefore online segment should also be used with economic
pricing strategy.
PART 2
Root definition is a structured definition of a system. It is the clear statement of activities which
takes place in the organization. In case of B&M, the company is imposing itself in online
shopping mode with the help of effective database management in order to achieve higher
productivity and technology (Reim, Parida and Örtqvist, 2015).
“As is” process plan is the strategy used by the company in present time. In case of B&M, the
company is using offline strategy in order to sell its products. The company is now engaging
itself in the online shopping concept.
“To be” process plan is the strategy which company will use in future. In case of B&M, the
company will going to use online marketing concept with the help of effective database
management.
PART 3
Performance objectives are the goals set by managers of employees to identify their
performance. This performance than will be utilized into operations priorities. In case of B&M,
the company should identify the solution of database management system. The issue discussed in
part one include the management of traffic on the website. The company wants to engage
maximum number of customers on their website but this has created a threat of website
trafficking. The performance objectives of company include to gain maximum number of profit
from the online shopping store but the issue is to maintain the traffic on website. In order to turn
performance objectives into operations priorities, the manger of B&M should contact to website
development company so that they can manage that effectively (Rouhani, Ghazanfari, and Jafari,
2012). The IT individual will focus on increasing the capacity of website to hold as more number
as possible. This will help the company in visiting more customers on their website. Therefore
performance objectives can be turn onto objectives priorities.

According to the “to be”business process plan, the future state of a business process
within an organization is defined. It states the future situation after the changes have been
applied. In case of B&M, the company has to gather many resources for the implementation of
database. The resources required would be a number of computer systems, requirement of
database administrator, vendors etc. All these resources will help the company in providing
necessary beginning for ensuring data base. The management of database includes times for
extracting the query, redundancy and many more. All these activities should be maintained by
the database administrator (Vijayan, 2017). The cost of implementing the resources within B&M
will not be so much higher. The company can order the products with its local vendors whenever
required. The cost of inventory will be low when the products sell online. Apart from that, the
company can estimated the cost of resources required to manage the database and perform online
shopping operations easily. A logistics company is also required by B&M so that they can ensure
effective and on time delivery of products. The estimated cost of delivering the online shopping
concept to the customers can be £230.
Performance model is one of the models which is helpful in defining the way in which
actual system is operating. This operation of system depends upon the consumption of resources
and delays introduced by processing or physical limitation. In case of B&M, the resources
required by the company are database management system, administrator etc. The performance
of the system can be ensured on the basis of consumption of resources. The consumption of
resources can be identified with the help of number of customers visiting the website. In addition
to this the number of customers who purchased the products also be considered as the important
aspect of measuring the performance (Yao, Kohli and Cederlund, 2013). Both the number of
customers have been identified and analysed that how many numbers has visited and how many
has purchased. If the ratio is a higher difference, the performance of company is not good. The
performance will be good if the ratio is lower as compared. Therefore the performance of
company can be measured on the basis of consumption of resources. Therefore on the basis of
measuring the performance of resources, the company can analyse whether the used resources
are working for them or not. If the resources fits to their requirement than it can said that the
company has settled their feet in online market also.
Perspective Financial Customers Internal business Learning and

process Growth
Strategic Aim The financial aim
of company is to
increase its
profitability by
opening the
selling platforms.
To provide better
opportunity in
purchasing for the
customers in
terms of better
quality also.
Providing
effective skills to
the employees
and internal
internal business
process so as to
increase their
personal and
professional
development.
To adopt new
trends and
technology so as
to fulfil the needs
of customers.
Critical success
factor
In order to
achieve the
financial aim, the
company should
provide effective
advertisement and
economic pricing
of products.
With the help of
increasing
shopping
experience by
coupons and
discounts
strategic aim can
be achieved.
With the help of
providing
necessary skills to
the employees the
company can
impose skills in
the employees.
With the help of
selling products
online the
company has
engaged itself in
learning and
growth.
Strategic
Measure
Cash flow can be
used to measure
the business with
regards to
customer service.
Customer
retention can be
used to measure
the satisfaction of
customers.
Employee
retention and
employee
turnover can be
used to measure
the happiness of
employees by
implementing
online shopping
concept.
Learning and
growth can be
measured with the
help of number of
visiting customers
online and
offline.
Action Plan In order to succeed in the plan of imposing the online services for the

customers. The company should have used some of the innovative
technologies also which will help them in gaining customer base. This
customer base will provide proof of successful implementation of action
plan.
CONCLUSION
In this report, it can be concluded that, B&M is going to engage itself in the filed of
online shopping. For doing this the company has to use database management services within it.
Apart from that, the problems and solutions are also discussed in this report, regarding the
implementation of hybrid. Apart from that root definition, as is and to be process plan also help
in identifying the present and future state of the company. In the end, performance model,
requirement of resources and business process plan helped in identifying the needs and demands
of company, customer etc. in future.

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Operating Canvas Model. 2019. [Online]. Available
through:<https://whatis.techtarget.com/definition/operating-model>.