Operations Management Report: C & J Clark International Ltd Case Study

This report provides an in-depth analysis of the operations management practices of C & J Clark International Ltd. It begins with an introduction to operations management and its importance, followed by a background of C & J Clark, highlighting its history, global presence, and operational strategies. The report then details the various processes within the company, including brand management, business improvement, customer services, digital operations, finance, human resources, legal, merchandising, outlet management, product development, retail operations, and supply chain. The assessment concludes with recommendations for improving the effectiveness and efficiency of these operational functions, focusing on areas such as business relationships, employee uniqueness, and the development of CRM systems and technologically advanced materials. The report emphasizes the importance of sustainable development and customer-centric strategies for enhancing operational efficiency and maintaining a competitive advantage.

Operations Management

INTRODUCTION
Addition of values to existing resources is operation management. Business processes have to
be developed with keen perfection for achieving objectives and goals of an organisation. From
efficient use of resources to effectively providing products and services, companies need great
efforts and strategies. End results of such strategically evaluated results gives high productivity
on a long term basis.
C & J Clark international Ltd. has been utilising its operational management techniques in
supply chain and logistics which is elaborated in this assignment. From manufacturing to
delivering its foot wears in market, report gives an insight about the complete business
processing of C & J Clarks International Ltd. Organisation goals are based on effective
functioning of it various departments. This report helps in getting a deep understanding about
different operational functions. When developments are made in predefined functions,
company has to utilise its resources effectively and set operations objectives; this is justified in
final part of the assessment.
a) Background
For getting better understanding of operations managements in an organisation, Clarks
International Ltd. is taken as reference. The company has been functioning effectively since
1825. Known for its high quality and beautifully crafted shoes, Clarks is an example of
efficient operations management. Technological developments and changing demands of
audiences never hindered functioning of the company. Over 1000 branded stores and franchises
are under ownership of C & J Clark international Ltd. About 84% share is under control of
inherited owners while 16% is acquired by employees and other related people (About Us,
2016).
Overseas management of supply chain, logistics, human resource and variety of other functions
is difficult. This indicates the need for developing manufacturing units and control offices in
specific regions, so that export and import operations can be easily handled. Development of
about 400 outlets in China is a great example of efficient operations of company. From about

past six years, enterprise has been working on a mission to connect its supply chain with store
shelf. Customers are much more comfortable in purchasing goods from authentic sellers. If
Clarks would devise strategies in such a manner that all its supply chain, waste and inventory
are under control; then costs applicable for meeting consumer demands can be effectively
managed. Kimberly Clark is the current head of the company.
Point of sale technology is used for managing demand based operations that is export, import,
manufacturing and supply. This software helps not only in creating reality check but also
provides forecast for developing sales and shipment processes. Apart from all sorts of foot
wears, company has focused on spreading its branches in personal care products for children
and women. In 2011, this engagement operation helped in earning $20 billion sales.
Warehouses have been developed in certain countries where human resource is easy and cheap.
This helped in growing global customers.
With launch of e-portals and better shopping options, customers from across different countries
are now familiar with brand’s products and services. This has led the company to develop its
functioning departments that were initial not available for guiding consumers. Increasing
options for payment and delivery, local retailers and proprietors have shown more interests in
collaborating with Clarks. Partnerships can be at international level or local level, as these are
important for increasing brand reputation of organisation.
Company has been developing customer oriented strategies. Stakeholders are people who are
interested with functioning of company in some form. Every organisation has two types of
stakeholders that are internal and external. Complete business processes of Clarks affects
stakeholders in a particular way. Internal stakeholders are groups or individuals who are
directly influenced by operations or functions majorly financial ones of the company. For C & J
Clark international Ltd., internal stakeholders are employees, managers, investors; shareholders
are people who get directly influenced. External stakeholders are people who indirectly get
affected by working status of company. C & J Clark international Ltd. being a products
oriented company has major stakeholders in form of customers (About Us, 2016). If company
faces a problem or crisis in its functioning, then all its pricing strategies will change. Buyers
will only be impacted by this strategy. If company shuts down, consumers will be least
sufferers because substitute products are already available in market.

b) processes
C & J Clark international Ltd. has been working from about 190 years. Such a huge journey can
only be achieved through great management techniques (Corporate Services, 2016).
The operational management of this company is very strong. Following operational functions
are managed by the business globally:
1. Brand: The organisation has been working by creating, innovating and inventing
exceptional styles and trademarks in shoe industry. This technique has helped it acquire
good brand reputation amongst customers.
2. Business Improvement and Procurement: With advancements in technology through
internet, it is very important that companies must also engage their profits in spreading

roots across the globe. This function of business improvement and procurement helps in
developing and establishing centres in different parts of world with effective planning and
management of resources (Slack, 2015).
3. Customer Services: For a product manufacturing firm, customer satisfaction is the first
priority. All the queries related to company and its products from the customers are handled
by this functional department. The media used for this purpose is email, social media,
phone and post. Complaints, requests and all sorts of customer related problems are heard
and solved through these portals.
4. Digital: Online shopping is trending in 21st century. Internet evolution will lead to
development of more e-portals through which companies can sell their products in any part
of the world without actually setting a physical store. Once online website for purchasing
and trading is developed it has to be maintained and checked regularly. Competitors may
develop strategies for hacking and breaking into credentials of these portals. Hence, digital
department takes care of all these functions across specific region. Although consumer
felicitation is main objective but protection from threats is also taken care in this
department (Bozarth and Handfield, 2016).
5. Finance: Money is needed for conducting all operations in a company. Finance function
maintains all records and systems that are needed for supporting global framework at every
key location. It is a crucial function of operations in Clarks.
6. Human Resources: Organisations are dysfunctional if major resource that is human
resource is not available. A company won’t be called so if no labourers or work force is
present. Human resource department is necessary for maintaining peace between employee
and employer. They work for making company a better place to work for. Issues related to
internal environment of a business that affect the functioning of labourers are resolved by
human resource department.
7. Legal: Even if a company follows all rules and regulations that are led by particular
government of a region, competitors or rivals can create situations in which allegations can
be faced. Legal department is therefore necessary. This function keeps Clarks away from
judicial complications and also provides advisory help in all range of business issues.

8. Merchandising: Practises that contribute to sales of products to retail customers is
merchandising. Apart from self-owned stores, Clarks has to maintain and build up relations
with shopkeepers and retailers who are a second option for building links with consumers.
Merchandising helps in building this relation. Demands from different business clients and
consumers are managed by this function of company (Corporate Services, 2016).
9. Outlet: Customers always prefer authentic products. Inclination is more towards full price
channels that is company outlets than retail stores. Hence, Clarks had to develop its
physical stores for such audiences so that they can avail all products that are shipped
directly from factory to shop without third party intervention. Outlets can be owned and
produced through mergers or franchises.
10. Product Development and Sourcing: Fashion is a trend and these change at any moment
depending on current situation of market. Being a shoe manufacturing company, Clarks has
to develop and innovate every now and then so that it doesn’t lose its competitive
advantage. Product development and sourcing is staged because any sort of negligence can
result in declining customer share which cannot be afforded by the company.
11. Retail Operations: Maintaining a multinational operational business, it is important that all
small and big mergers, partnerships and franchises are supported with effective resource.
Retail Operations department manages all business relations. It also provides support for
outlets across the country and continent.
12. Supply Chain: Demand and supply network has to be stable. Imbalance in any of the two
given things can destabilise the operations management of company. Information and
resources that are involved in processing product to consumers are managed in supply
chain. Evolution and improvements are important for this function of organisation because
needs and demands of customers change every moment (Krajewski, Ritzman and Malhotra,
2013).

c) Changes for improving effectiveness and efficiency of operational function
and recommended changes
Major operational tasks for C & J Clark international Ltd. include human resource, supply
chain, product development and sourcing, finance, marketing or merchandising and brand
maintenance. It is significant that company will develop within coming times but it is not
essential that this development can be sustainable. Customer segment that is targeted by
company is people with high income level. Efficiency of operations management can be
increased by accommodating changes in the main functional architecture of company (Hill and
Hill, 2012).
Business processes play a vital role in fighting competition. Significance of changes is realised
only when performance graph of company decreases or slows down. Strategies have to be
developed so that market position and profitability are maintained. Following recommendations
can be considered for increasing operational efficiency:
1. Although C & J Clark international Ltd. has a very good brand reputation. Business has its
own competitive advantage that cannot be easily substituted. This advantage is acquired
because of unique products and strategies that have been developed and evolved over time.
2. Just like customers, business partners are conspicuous for Clarks. Being a large enterprise
doesn’t mean it can overpower its partners or alliances. Effective business relationships
help gather a good reputation in market and decrease rivals in competition. Business
processes must be developed according to needs and requirements of business partners.
Stable infrastructure is based on secure and reliable relations through these operations.
3. Company must concentrate on inviting more easy collaborations. Be it small, medium or
even micro enterprises, chance must be given to all for creating a link with brand. This will
help in achieving sustainable development. According to triple bottom line theory effective
business operations are sustainable only when company meets requirements of employee,
people and environment. This decision doesn’t demand a compromise in profits but new
ideas can definitely change future perceptions of company (Brown, Bessant and Lamming,
2013).

4. A major internal change Clarks can indulge in is uniqueness in working style of employees.
Productivity of human resource will only increase if core competencies are enhanced.
Every single employee working for the organisation must be unique and competent.
Duplication decreases efficiency of employees. Interaction with innovation is necessary in
employees. It is duty of human resource function to monitor discrepancy action so that
incompetent employees can be rejected while skills and talents of deserving individuals can
be polished.
5. The only thing that customers expect from company is on time delivery and best quality
products. Clarks can develop even better products by using technologically advanced
material for shoes. Finance functions must focus on investing in research and development
(Gunasekaran and Ngai, 2012). This expenditure is an investment because research will
enhance innovation and even invention can be attributed by the company. Hence,
investment functions must be included in operations management of complete business
structure.
Approaches to improving operations in the company Development of CRM:Streamlining better communication channels for consumers.
Although company has been giving great services through its customer services block
but this relationship has to be managed. Automated CRM (Customer relationship
management) software is available in market. C & J Clark international Ltd. can adopt
such technology for maintaining call records and customer queries. While devising new
or improvised product strategies, these records can be accessed for innovating new
methodologies. Pending orders and easy returns feature can be facilitated for
consumers. This will enhance better online shopping experience (Foropon and
McLachlin, 2013). Inventory management: Critical function of any business is supply chain and logistics.
Inventory management is necessary. Excess supply and no demand will lead to
decreasing prices of products (Bromiley and Rau, 2016). This situation is definitely not
favourable for long term. Profits margins will suffer and performance graph will slow
down. While more demand and less supply will ruin customer relationships. This
situation can have a positive impact also. Curiosity will arise amongst alien audiences

about empty stocks. People will gather more interests in knowing about company and its
products. C & J Clark international Ltd. being a renowned organisation can change this
threat into an opportunity.
 Better internal structure:Internal structure of an organisation must be strong enough to
fight outer competition. This durability will be retained only if employees are secured.
Its responsibility of human resource function to bestow with information that is
necessary for them. Employees cannot be deserted when it comes to discussing
strategies. This will decrease their interest level in working for organisation. They will
tend to turn their backs for company which cannot be afforded. Secure, reliable and self-
defendant network can be adopted by company for giving employees information and
technology for their own development (Hendricks, Hora and Singhal, 2014).
Operation management is complete processing of an idea to final reach in market. All inputs
have to undergo certain changes and evaluations so that best results can get company a source
of income. This value addition process is very crucial. Any sort of negligence or confusion will
change actual purpose and design of the proposed idea. Customer centric approach is a must in
developing this product. C & J Clark international Ltd. is a company that provides products that
help in improving lifestyle of customers. Henceforth above mentioned recommendations must
be applied for improving efficiency of its operations.
Recommendations
Changes are strides for evolution. What would have happened if Clarks had been working in
same conditions and with same equipment? Global expansion of the enterprise would have
remained just a thought. Slow and steady changes in the processing system of organisation
helped it gain brand reputation that now exists in current situation. Traditionally operations
were limited to production and manufacturing (Brown and et. al., 2013). People concentrated
less on marketing and development. Internet came up as a boon for every industrial section.
People connected more and more in virtual world. Real distances and barriers of
communication don’t exist in virtual world of internet. This technology can be used by
organisations for developing its marketing strategies. Social media marketing is a strategy that
can be enhanced in marketing function of C & J Clark international Ltd.. Portals like Facebook,

Twitter, Google-plus help companies in marketing their products to people from all countries
and diversities.
As recommended before, framework depends on strength of foundation or base. If people
working for company are not satisfied by working atmosphere or pay scale, they will tend to
find better opportunities in other firms. This will deplete Clarks internally which cannot be
afforded. Hence, it is moral responsibility of Human resource to look after needs and demands
of employees and develop strategies in such a manner that these demands are regularly
attended. Another major stakeholder of company is customers. Brand image and reputation are
decided by customers (Drake and Spinler, 2013). Effective customer relationship management
is need of hour. Digital platforms need to be developed constantly for maintaining customers.
Company must not neglect even one customer because as stated before, media has emerged as a
powerful tool in today’s world.
Optimisation of operation management helps in managing costs and producing better quality
products. People won’t mind spending a bit more than other company products if quality is
exceptional (Sekar, 2014). Complete financial structure gets better when changes are
implemented in strategies of business processing. Major areas that require more investments
and techniques, is supply chain. Management of supply chain refers to complete controlled
flow of raw materials and resources in manufacturing of products. Headquarters of company
manage operations but warehouses are built in various other locations. Supply chain
management is an important aspect of operation management because other functions are
dependent on this single function. Demand and supply has to be controlled for every company.
Distribution networks like logistics and delivery services are involved in supply chain because
they take manufactured good to stores; outlets and places customers can complete product
cycle by purchasing (Rosemann and vom Brocke, 2015).
Supply chain and logistics are backbone of Clarks. Revenues and profits are generated through
effective functioning of these branches. Marketing and sales only enhance their working.
Inventory is managed under supply chain management (Subramanian and Ramanathan 2012).
Control and visibility of products has to be strategically arranged so that no extra costs are laid
on shoulders of operations. There are certain objectives that have to be focused before
implementing supply chain strategies:

 Generating effective pricing for all raw materials and services that suppliers will give to
company.
 Planning of products according to requirements of consumers.
 Deciding locations of warehouses and transporting centres for company.
 Declaring mediums through which products will be transported.
These objectives help in implementing proposed changes in the supply chain management
strategies of Clarks.
If these changes are effectively implemented and managed then efficiency of operation
management will increase which will definitely result in better productivity and market
acquisition by the company. Moreover, better investments options will be available for Clarks.
CONCLUSION
Operations management engage competent use of resources that are required in developing a
product at every stage. This was realised from above report by considering the operations of
Clarks. The report encloses analysis of variable functions that are managed by Clarks for
accessing all its customers across Europe and Asia. Enhancement of different functions helps in
setting pace of competition and provides company with a sustainable advantage. Complete
decision making of a company depends on business processes and the way they are managed.
Advancements in information technology have helped in attaining a place in global world
where consumers cannot easily be lost. Despite of adapting great technologies, company still
has to cultivate better techniques which are enclosed in the report for getting improved
efficiency of complete business processing.

REFERENCES
Books and Journals
Bozarth, C. B. and Handfield, R. B., 2016. Introduction to operations and supply chain
management. Pearson Higher Ed.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. Pp.95-106.
Brown, S. and et. al., 2013. Operations management: policy, practice and performance
improvement. Routledge.
Brown, S., Bessant, J. R. and Lamming, R., 2013. Strategic operations management. Routledge.
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.
Foropon, C. and McLachlin, R., 2013. Metaphors in operations management theory
building. International Journal of Operations & Production Management. 33(2). Pp.181-
196.
Gunasekaran, A. and Ngai, E. W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). Pp.687-701.
Hendricks, K. B., Hora, M. and Singhal, V. R., 2014. An empirical investigation on the
appointments of supply chain and operations management executives. Management
Science. 61(7). Pp.1562-1583.
Hill, A. and Hill, T., 2012. Operations management. Palgrave Macmillan.
Krajewski, L. J., Ritzman, L. P. and Malhotra, M. K., 2013. Operations management: processes
and supply chains. New York: Pearson.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process management.
In Handbook on Business Process Management 1, Springer Berlin Heidelberg. pp. 105-122.
Sekar, K. V., 2014. Manufacturing engineering and technology. Prentice Hall.
Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production Economics. 138(2).
pp.215-241.

Online
About Us. 2016. [Online]. Available Through:
< http://www.clarks.co.uk/information/about-us>.
[Accessed on 21st December, 2016].
Corporate Services. 2016. [Online]. Available Through:
<https://uk.clarksjobs.com/corporate-services/>.
[Accessed on 21st December, 2016].