Cargills Food City: Business Operations and Hybrid Facilities Analysis

This report provides a comprehensive analysis of Cargills Food City's business operations, focusing on the evaluation of essential components for effective management and the challenges associated with introducing hybrid facilities. The study utilizes soft system methodology, including CATWOE analysis and business process mapping, to assess the company's current operations and potential improvements. It examines how managers translate performance objectives into operational priorities and resource allocation, culminating in a balanced scorecard to measure performance. The report also explores various operation models and costing solutions, offering insights into the company's strategies for maintaining a competitive edge in the Sri Lankan retail market. The introduction of hybrid facilities and the issues associated with them, such as customer value, service gaps, and operational efficiency, are also critically assessed, providing a holistic overview of Cargills' business strategies.

Business operations and
system

Table of Contents
INTRODUCTION...........................................................................................................................1
PART-1............................................................................................................................................1
1. Evaluating the essential components for effective business operation management of
Cargills.........................................................................................................................................1
2. Identifying the issues and challenges of Cargills if the company introduced hybrid facilities
for their customers.......................................................................................................................3
PART-2............................................................................................................................................4
Root definition and CATWOE analysis for Cargills in their new Process..................................4
Business process mapping for Cargills........................................................................................9
PART-3............................................................................................................................................9
Examining that how managers turn performance objectives into operation priorities and
required resources for effective implementation of to be process...............................................9
Balanced Scorecard...................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business Operation and system is referred as a collection of the business processes in
order to attain the main goals of the organization in efficient way, Business operations can be
termed as the activities which enable the organization to transform a range of basic input
material into the finished product with respect to the final consumption of the end user (Hazen
And et.al., 2018). This report is based on the business operations of Cargills food city which is
the largest modern retailer in Sri Lanka. This study will present the effective business operations
of the company using soft system methodology which allows the proper management of business
activities as per the business process modelling. It will also identify various issues and
challenges involved with the introduction of hybrid facilities within the organization.
Moreover, this study will provide different operation models of used by the firm in order
to sustain in this competitive market. Furthermore, it will help in creating a complete
understanding about costing solutions of the firm along with the appropriate solution with its
reasoning.
Problem statement- Issues faced by Cargills in Sri Lanka for operating as hybrid facilities to
allow customers to continue shopping (Hazen And et.al., 2018). There has been various issues
associated with the hybrid is that it facilitates both the fund and Lenders with maximum
flexibility in terms of satisfying the Liquidity needs of the company.
PART-1
1. Evaluating the essential components for effective business operation management of Cargills
Business operations can be termed as the activities which enable the organization to
transform a range of basic input material into the finished product with respect to the final
consumption of the end user. Cargills is providing food, agriculture, financial and industrial
products to all people around the Sri Lanka as they are doing their business from last 36 years.
With the help of this only company will be working towards success factors. They are providing
best food for many manufacturing companies like KFC as well. One of the biggest success factor
is their effective marketing evaluation and use of marketing metrics as well.
Cost of operation
This is one of the most important requirement as organizations are majorly responsible
for the production of goods and services (Artto, Ahola and Vartiainen, 2016). In order to deliver
the services to customer it is very important to minimise the cost of production which influences
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the buying decision of consumer. Cargills is mainly aimed at offering low cost services and
products to their customers which leads to simplicity and maximum efficiency at every stage of
the business process. Cargills performs the retail operations and continuously putting their efforts
to satisfy the customer requirements by offering fast services at lower prices. This company
produces privately labelled products which mainly eliminates the extra cost for the suppliers.
Meanwhile, this enterprise involves low cost of labour because employees are well trained that
they can perform the work in every field.
Furthermore, Cargills is also focussing towards the online presence of the market so they
have to consider a proper attention towards the manufacturing and distribution channels of the
firm. This company also stores the goods in warehouse in order to meet the demands and supply
of the goods. So centralised ERP system will help company in finding the effective supply chain
solution.
Quality
Cargills focus in providing the quality based products to customers which can be easily
affordable by large number of consumer. As per the safety standards, food items directly impact
on the health of the people so Cargills food city have to strictly meet the safety standards while
producing the food products. So the company fulfils these standards by purchasing the quality
based raw material in bulk which not only result in standard quality but also minimise the overall
cost of the product. In order to maintain required nutritious value in food product, the company is
also using sugar free substances which reduce the calories and also the use of the salt is also
substituted with the nutritious element. It does not affects the tastes of the food. Thus quality
influences the customer value.
Time and Flexibility
Cargills Food city provides the goods and services at the stores but these stores are
generally small in size which may lack in attracting large number of people towards its products.
Meanwhile, acquiring the Hybrid facilities has benefited the company in creating the value for
the customers. So large number of people takes keen interest in ordering food online and thus it
has helped in increasing the sales as well as profitability of the firm. It minimise the time
consumption of the people along with the flexible services online which contains offer details,
opening hours, variety of products etc.
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2. Identifying the issues and challenges of Cargills if the company introduced hybrid facilities for
their customers.
Cargills is currently dealing with more than 366 stores and all the outlets of the company
mainly cover all the districts of the world (Xia and Wu, 2017). This company is mainly targeting
middle class people for the consumption of goods and services. So the company has introduced
the hybrid facilities in order to increase the market segment and attract large number of buyers
through the online marketing as well as selling of the goods.
Moreover, Strategic manager within Cargills has decided to move the organization
towards the hybrid system. This system allows the company to identify the trend and customer
buying behaviour. This allows to the company in minimising the cost and time and thus resulted
in increasing the sales of the firm through e-commerce approach. In order to achieve the
sustainable performance of business, various business operation models are used to strengthen
the main objectives and strategies of Cargills.
Operation strategy performance model is referred to the method by which the key
operations and decisions are made that is consistent to the overall strategic objectives of the firm
(Aschauer, Gronalt and Mandl, 2015). In order to match with the highly competitive industries in
the market, company need to develop effective operation management strategy for increasing the
overall performance of the business. On the other hand, Customer value is one of the effective
model which helps in building the strong value with the customers. Customer satisfaction is one
of the great concern which needs to be fulfilled with every aspect of the business. So Customer
value model is a data driven representation which predicts various possible situations in terms of
innovative products according to the marketing demands of customer. In order to calculate the
customer's lifetime value, Cargills need to identify its average purchasing value and then
multiply the number by the average purchase frequency. In contrast, other super markets, focus
towards the value based services to their customers, so in order to reach out the huge number of
customers, many supermarkets is employing the latest technology based tools. This supports
them to improve the customer interaction and hence enhances the relationship with the large
number of consumers across the world.
However, Service gap model allows Cargills to identify the actual gap between the
supply and demands of the customer (Xia and Wu, 2017). The gap model also helps in
identifying the service quality of products. Basically, it is a framework which helps the company
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in understanding the customer satisfaction level. When seeking to meet the customer
expectations, this model mainly identifies the four factors such as customer experience, customer
perceptions, service delivery, service delivery practices and customer health.
IT is recommended for the Cargills Food city to adopt mix strategies which help in
retaining the customers with as per the good quality of the product. In order to carry out the
hybrid facilities within the firm, company have to focus towards the operational efficiency as
well as customer value strategy. But in order to maintain the balance between the demands of the
product, company need to identify the Service gap model.
Although, other super markets are adopting various innovative ways to coordinate the
inventory within the business. So various retailing business are mainly focus towards the
employing the ERP software which help them to coordinate the sales and demands of the
company. Thus it allows them to increase the profitability and also helps them for the long term
growth and provides sustainable environment. The supermarket in Sri Lanka will be performing
into more depth of market which is due to their fast growing market and more number of
customers is attracted towards it. The grocery or supermarket chain is more connected with their
clients or customers as they are indulging or communicating with their customers on daily bases.
This is the only way to interact and operate into market for more in-depth so that competitive
rivalry could be attained.
Manufacturer model- Under Service gap model manufacturer will take raw materials
for creating products and assemble them to pre-made components into products like that of car
manufacturer which may be selling all the products directly to its customers or to outsource sales
for some another company.
PART-2
Root definition and CATWOE analysis for Cargills in their new Process
Employing technological advancement within the company has forced the managers to
increase the sales via adopting the hybrid system (Rosemann and vom Brocke, 2015). This
system is aimed at automated operations, effective logistics and increased sales by effective
marketing in order to increase the market share within two years. ROOT is part of soft system
methodology (SSM) which will be describing the system of interest which normally starts with a
system to should be using to include mention about al key elements of systems.
CATWOE Analysis
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Figure 1: CATWOE Analysis
(Zur, Muehlen and Shapiro, 2015)
Component Details
C Customers There are huge customer approaches in for the products which are
provided by Cargills. This is one of the largest modern retailer food city
which mainly consists of large number of loyal buyers. These
organizations have provided the optimum solution for buying the goods
and services online. This saves the time and energy and thus this
strategy attracted a large number of people towards online market of the
Cargills. It have also provided the easy choices and secured online
shopping experience as this company delivers the food online so these
services are easily accessible services which engage in large number of
customers in buying food online. This will include all process users
where people are defined and understand how process and system will
be affecting them. If Cargills is providing their customers all products
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for lower price and if they start rising up their prices then customers
would surely not liking it. It is very much essential for them to think
about their customers every minute
A Actors Employment of the new strategies and innovation within the company
require the development of skills and training of the staff members in
order to carry out the successful operations. This company has adopted
the hybrid system which includes the sales of the products from stores
as well as online. So manufactures, vendors, managers and logistic
owners have to maintain the stock within the warehouse for the online
consumption. The chain will affect IT, staff, distribution system, and
people doing marketing research. This will include all people who are
taking part in implementation process of change and transformation.
They all will be affected by decision which company is taking and
sometimes suffer the most as well.
T Transformation Changes in the strategies, logics and technology have transformed the
way in which Cargills perform the operations and work within the
company. Presence of online market also saves the intermediate and
duplicate process which is increasing the cost. This will consist of all
possible changes and transformation which is brought by company
either in process or system.
W Weltanchauung Now, Cargills will be determined as a new competitor in market which
allows the company to change the traditional method of supplying the
product (Zur, Muehlen and Shapiro, 2015). Online marketing and
selling of the product is captures new customers who are keenly
participating into online shopping. This will be considered too as
possible wider level impact of transformation of process of system.
O Owners Owners of the Cargills include Director, CEO, Managerial level
employees who are considered as an owner of new process. By using
the data and information, this company is able to develop the plan and
therefore this allows the owners in effective decision making. He is
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always regarded to as decision maker for company who is having
control over system and transformation as well. He would be deciding
over whether system should be implemented or not and if implemented
who all will be involved in it. The main responsibility will also be his
only for leading out suitable change for resolving problem and issue.
E Environment In order to increase the sales and profitability of the company, it allows
the manager to identify the waste management of the firm and thus it
helps in delivering the customized services to by effective calculations
of stock and market share. All the ethical, legal and sustainable
requirement which must be followed is included in this section. As if
any of them are not followed properly then it will surely be creating
problem for system and company.
To be Process of Cargills Food City Are as follows:
This functions of the system will be followed as store-Warehouse-procurement-finance-
supplier-marketing
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Business process mapping for Cargills
Business process modelling is the discipline in operation management in which people
use various methods to discover and analyse the performance by improvising the corporate
business process.
As Is Process
Cargills food city has been using the traditional method for storing the goods and this
process allows the company in ineffective and inefficient inventory storing methods. This
company earlier uses telephonic communications with the consumers in taking the orders which
is time consuming process. So this process will provide large opportunities to change the system
in automated way which mainly improve the sales and efficient customer approach of the
company. This will be regarded to as is process for Cargills as they are following it for many
number of years for storing goods and is regarded to as ineffective.
To be Process
This process helps in suggesting Cargills in order to change the technology for improving
the operations of the company (Peltier, 2016). It engages large number of people in accessing the
online services. It will speed up the counters and easy access, and also allow the company for the
quick and easy access, accurate updates of inventory system. This system will help in monitoring
the demand and supply by accurate means. To be process will also allow the Cargills in
identifying the customer behaviour, current trend and geographical changes within the area.
PART-3
Examining that how managers turn performance objectives into operation priorities and required
resources for effective implementation of to be process
As per the process mapping of Cargills there is a huge requirement for changing the
whole process in order to compete in the market. According to the the new System which is
employed in Cargills for expansion of the business operations Business process Model is
advancing a To be process system which will help in performing the automated tasks in order to
accomplish the organizational goals (Rossi, Lipsey and Henry, 2018). As per “To be process”
which provides the easy accessibility of the products and large variety of displayed stock that
provide wide range of opportunities for the consumption of goods and services online. In order to
achieve the main objective, manager generally perform a proper research in order to incorporate
the better system that enable the mobile application for the customers. So it allows the customer
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in providing the navigation search function that enables consumer to view the detail description
along with the secure payment processing system which allow them to create a user ID and
Password which avoids hacking. These selection needs help the manager in determining the
performance objectives as a operation priority of the business.
According to Berghuis and den Butter, 2017, store manager need to make sure that all the
stock is fully inspected and meet the standardised input material into the system. Effective
implementation of new system, may involve various problems related to the skills development
and unawareness about technology. So in order to resolve such issues, managers need to provide
new training sessions and educate them about the use of new changes within Cargills food city.
Managers need to promote the communication at workplace in order to motivate the workforce
for implementation of the such new process within the system.
According to Zur Muehlen and Shapiro, 2015, managers need to encourage their
employees by giving appreciation and rewards that will help in proper implementation of the
new process within the firm. For the effective delivery process of the products within Cargill’s
managers also have to implement proper GPS or tracking system. Managers also need to
determine the layout and online process of the store in order to attract large number of customers
for the products and services. This system will also allow Cargill’s Food city Manager to take
decisions regarding the vendors and supply chain agreement which is concerned with the
automation of work within the warehouse along with reduced cost and risk. It will help
increasing the product availability and inventory performance which helps in easy
implementation of demand and supply using inventory system. This allow the vendors in
managing the accounts of the product which ensures the refilling process as per the alert and
notification from the new system regarding the stock (Business Operation And System, 2018).
As per finance department, managers also need to instruct the employees in order to
upload all the past records into new inventory system as per the changing model (Artto, Ahola
and Vartiainen, 2016). Since the new system will perform the automated tasks then also
managers of the Cargills food city need to timely monitor the system. As payment will be
automatically credited to the suppliers as per the inventory system.
In addition to this, Implementation of new system will also allow the Marketing manager
in order to identify the Car gills food city target market and also promotion of the Hybrid system.
Marketing manager also attempt various modernizing techniques through social media market
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