Business Operations and System Analysis Report - Part 1 & 2

This report delves into the essential components of effective business operations management, using LIDL as a case study. It explores key aspects such as capacity planning, quality assurance, and cost reduction. The report also examines the application of soft systems methodology, including its seven stages, and provides a comparison of different models and solutions. Furthermore, it includes a rich picture, root definition, and CATWOE analysis to identify and address communication errors within the context of online delivery systems. The report also provides a 'as is' and 'to be' business process plan. Finally, it identifies key performance objectives and references relevant literature.

Business operations
And
System

Contents
PART 1............................................................................................................................................1
Essential components for effective business operations management........................................1
Use of soft systems methodology................................................................................................1
Comparison and contrast of different models..............................................................................3
Comparison of different solutions...............................................................................................4
PART 2............................................................................................................................................4
Rich picture..................................................................................................................................4
Root definition.............................................................................................................................5
CATWOE....................................................................................................................................5
Business process plan (As is)..........................................................................................................7
Business process plan (To be).........................................................................................................8
To be................................................................................................................................................8
PART 3............................................................................................................................................9
Key performance objectives........................................................................................................9
REFERENCES..............................................................................................................................12

PART 1
Essential components for effective business operations management
In order to conduct the research in effective manner, LIDL retails is taken into
consideration. This is a firm that operates in UK and aims at delivering their customers with high
quality services (Toney and et.al 2015). Apart from, there are certain set of expectations that
customers have before purchase decision is taken. Cited firm focus on understanding these
preferences and aim at raising their satisfaction level. Different types of components for effective
business operations management that need to be considered by LIDL’s operations within UK are
as follows:
Capacity planning: Taste and preferences of customer changes on frequent basis. It is
important to make sure that time to time appropriate steps are taken so that changes can be made
in positive manner. Through operation management, manager is able to develop plan as per the
capability that is with available resources (Ahola and Vartiainen, 2016). When the service
delivered by the firm is innovative and as per the preferences and resources that are available
plan is developed.
Quality assurance and control: All the steps that are included in operational process are
important. It is important for the firm to access their work at end of process (Adams and et.al.,
2014). It is the responsibility of quality control to examine final product and eliminate the
defected goods and ways are developed to improve them. In other work, performance of business
gets improved when amount of waste that is faced by them is reduced. When defected goods get
reduced, then satisfaction level improves. In accordance with the finding made for the company,
LIDL is effective enough to focus on maintaining their quality and assuring control.
Cost reduction and cost control: Operation management enables to reduce the cost and
make proper control over the cost that are involved. In this context, even this aspect is effectively
done by LIDL. When cost is reduced and controlled, then it becomes favourable enough to make
use of the resources in other areas of development a well.
Maintaining and placement: These are helpful enough to provide interesting tension in
business operations. All supervisors should know that they need to develop certain amount of
unit so that they can meet the potential demand. Through operation management, individuals are
able to determine the steps that have to be taken and placement of work is done in effective
manner.
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Cited firm is able to develop strong relationship with customers by focusing on the
quality of services delivered to customers. In order to crease value, LIDL will take feedback
from customers and steps are taken by them to solve them. This way service users develop
positive perception within their mind.
Use of soft systems methodology
This is a type of methodology that is used by companies to eliminate the issues that are
faced. In other words, it determines the ways that will be suitable to make sure that effective
strategies are applied that can enable to overcome the problems in effective manner. There are
seven stages that are included and these enable to focus on improving the performance and in
eliminating the issues (Adams and et.al., 2014). LIDL’s has aimed at introducing hybrid facilities
to customers in which they can continue shopping in store and can order goods online and have
also planned to delivered to the door to compete the market place. The seven stages are helpful
enough to make sure that the issues that are faced in order to implement this changes can be
made in effective manner. In order to implement the project, it is required to have proper support
from the side of workers so that they are able to undertake the activities in appropriate manner.
There are conditions updating information. When the firm has aimed at delivering any type of
new information, then they are required to update the information. Another set of potential issue
that can be faced is in respect with flow of communication. In delivery of products, there are
condition in which the information is not conveyed to people and when this is there, then it
becomes difficult for the business to grow (Bilicki and et.al, 2016). To deliver the goods to
customers, then it is required to have individuals who can make the products reach them.
However, when the information delivered to them is appropriate, then it has negative impact on
the business. For the area of online services, proper system is to be made that can track down the
selection of goods made by customers and make them reach to them. One of the main issues that
are faced for this aspect is in relation with flow of communication. Each of the activities that are
to be developed is required to consist of division of roles and responsibilities done so that high
quality services can be delivered.
The gap that is faced from the side of customers should be identified and this can be done
by making use of service gap model. In accordance with this model, there are five gaps that are
required to be considered by the organization and they are as follows:
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Gap 1: This is determined to be the distance customers expect and perception of
managers. The type of expectations that customers have will be different and it is important that
the gap among manager and customers are eliminated. This way, cited firm can determine the
requirements of customers and steps can be taken to fulfil them.
Gap 2: This is the gap between perception of management and actual specification of
customer experience. In this context, it is the responsibility of managers is to focus on defining
the level of services they are required. However, this is possible when management have an
effective plan to be applied.
Gap 3: It is the gap identified from the side of customer’s experience. For this aspect, it is
essential for the managers to audit experience of people in which all their requirements are
satisfied.
Gap 4: It is the gap between experience of customers and the information that is delivered
to them. The experience of customers can be made positive when management have proper
understanding of aspects that they should be covered.
Gap 5: It is the experience of the customer’s perception and their expectation of services.
The findings shows that managers need to deliver appropriate information to customers in
which they have proper understanding towards the type of steps that has to be considered. There
are issues like support of employees, budget planning, (Hsu and et.al 2017) etc. There are certain
set of expectations that people have before any products or services are used.
Further, it also includes 4 Vs of Operation Management. One thing that is common in this
aspect is its inputs like knowledge, capital, time, raw materials, etc. However, all these are used
in different ways and below given are four V’s:
The volume Dimension: Volume can be determined as the key through how business is
organized. As per the activities that cite firm is willing to operate need to determine the volume
that has to be considered.
The variety dimension: This is the contrast between all the services that are delivered,
Cited retails is planning to deliver their customers within services in which they will get
benefited with online services and home delivery.
Variation dimension: The type of services that is planned by the firm is not new. There
are many other organizations that deliver their customers with similar type of products and
services. These services are used so that customers can be reached out better.
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Visibility dimension : These are the ability of customers to track down their experience or
to order their operations process.
Comparison and contrast of different models
By making comparison among all these models, it can be stated that proper steps need to
be taken so that the gap that is raised among them can be eliminated. As per the solution to the
issue faced, one of the steps that have to be taken is related with planning of finance (Artto,
Ahola and Vartiainen, 2016). There are different plans that are made and each of them it requires
to have appropriate division of cost to be done. Further, it is also important to hire workers who
will be effective enough to support the activities in appropriate manner. Further, the gap of
experience can be eliminated when the issues that are faced from the side of customers are
considered. All the models used have their own set of advantages and disadvantages. The firm
should adopt 4 Vs of Operation Management as it will enable to focus on the goals in effective
manner.
Comparison of different solutions
As per the one of the steps that can be taken place in relation with the implementation of
plan can only be made effective when management make use of new or updated technology and
the rate of interaction among employees is high (Hsu and et.al 2017). When these are done, then it
becomes favourable enough to deliver high quality services. One of the main solution that can be
applied by the firm is that that proper updating of information is done so that customers get to
have appropriate knowledge about the services that are delivered by them firm. There are many
competitors of ALDL like Tesco, Sainsbury, ASDA, etc. All these firm have their own system
for making the products reach customers. All these firms are aiming to gain maximum profit.
This can be done when requirement of service users are identified and steps are taken to
overcome them. For all these companies one of the main threat that is faced is from the side of
Amazon. Further, the delivery will be done from warehouse in which all the products are stored
and packaging is done. In order to make the business deliver to customers at their home, it is
required that discount offers are made so that people get attracted and make use of the services
that are delivered by the firm.
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PART 2
Rich picture
Figure 1: Rich picture
Root definition
In accordance with the rich picture that is developed for the online delivery of products,
there are two main issues that are faced. It is important for the business to make sure that
appropriate consideration is made in which problems are eliminated. In this context, main issue
is related with communication error that can be caused among order receiver and the person who
processes the order. When the interaction between them is not appropriate, then it can affect the
satisfaction level of customers.
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CATWOE
Customers The type of system that is to be implement consists of customers at
the end. People generally have to visit the physical store and then
they need to select the product and taken up decision making so that
they are able to satisfy themselves. However, the system used by
the firm enables customers to sit at their home and to select the
most appropriate product that they are willing to purchase. Further,
it also makes the purchases made more convenient in which
individuals can make comparison among different products that are
delivered by other firms (Choi, Chan and Yue, 2017). Further, it is
also convenient for users to select the most appropriate way for
making payment.
Actors LIDL’s have focused on making employees to perform their set of
roles in appropriate manner. One of the issue that can be faced in
this process is related with communication. In order to overcome
them, proper training should be delivered by the firm so that the
issues that are faced can be eliminated. Further, there are certain set
of roles that has to be played by them. When they do not have
proper understanding for the same, then it has negative impact on
the satisfaction level of customers. When the rate of support from
the side of employees is high, then the activities that are developed
are attained in effective manner.
Transformation The process for transformation will start when customers log in the
website and at the time when selection is made for ta product. Then
there are different are aspects that are also included and these
enable to make sure that customers are able to reach the required
targets and fulfil their requirements (Artto, Ahola and Vartiainen,
2016). When payment procedure is done by customers, then
immediately the order is identified by the firm. However, it is
identified that this process require certain time and for that process
they have to wait. However, it is important to make sure that
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considerations is made in which they deliver appropriate
information so that they can fulfil their requirements.
Weltanschauung There are certain set of goals and objectives that are set by them
business. In online services, firm is able to reach out requirement of
customers. Further, it enables to make the service users to meet
their set of needs and make them satisfied and in creating value
towards the products and services (Toney and et.al 2015). When firm
is able to reach out customers more effectively, then it also boosts
up the market share. The rate of competition is high and when these
type of services are used in which people are able to get their
services online, then it positively affects the business and its
growth.
Owners In order to make sure that all the operations that are included in the
online system is performed in appropriate manner, the management
will develop a new system with different department and it will
work differently when compared with physical store. This way, it
will be favourable enough to determine the performance that is
shown by each one (Choi, Chan and Yue, 2017). Apart from when all
the workers will perform their set of roles in appropriate manner,
then this can have positive impact over the business. Other than
this, it also provides the opportunity to employees to have direct
interaction with customers and this helps them to determine the
issues that are faced by them and accordingly sets can be taken to
overcome them.
Environment constraints When implementation of home delivery is done, then the emissions
can get created to increase the business actions and for making the
products reach customers, there are uses of vehicles done in which
there is condition of emission in CO2 into the environment. In
accordance with the climate change act, government make sure that
proper control is done for reducing the rate of emission form
harmful gases (Lun and et.al 2016). Apart from this, there is Grocery
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Supply Code of Practice (GSCOP) that makes sure that all the
companies do follow the regulation and harm caused by firms can
be reduced.
Business process plan (As is)
Business process plan (To be)
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To be
In the above, given diagram, it shows all the information in relation with the process that
which customers will go through so as to make use of the system in appropriate manner. When
compared with “As is”, in “To be” customers have to make their search on the website that is
developed by the firm in which all information about the products are shown. Customers have to
select the products that they are willing to buy and then the step of payment occurs in which
people are provided with the option for payment which can be done online or at the time when
delivery of goods is done (Toney and et.al 2015). When this step is completed, then the
information related with the order placed is immediately transferred to management of the firm
that operates. At the process of payment it is important for the customers to provide complete
details regarding the address and phone numbers. These are important to be provided as it helps
the workers to make the chosen products by the customers to reach them. When these steps are
done, then the roles of customers are over (Lun and et.al 2016). Then it is the responsibility of
customers to make sure that they cover their roles that include order of products and packing
them and the making it available to customers within the due date.
PART 3
Key performance objectives
Main focus of the LIDL in respect with their key performance objectives is to increase
online shopper market. This way, it enables to increase the loyalty and customer’s satisfaction
and in reducing the operational cost. In all this process, it is essential to consider the cost that is
included in the online system and the cost also consists of training to be delivered to staff
members so that they are able to perform their set of roles in effective manner. in order to
introduce this system, the cost included will be high but once it is implemented, then for
maintaining it would not have that much. Further, it also includes to monitor workers so that they
are able to determine the areas in which development needs to be made. One of the
considerations that have to be made is in relation with updating technology. This will be
effective enough to make sure that all requirements of customers are identified and fulfilled and
high quality is delivered. Managers can be made use of TQM (Total quality management
approach) for maintaining high quality standards.
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Balance scorecard perspective of finance
Objectives Measures Targets Initiatives
To obtain share for
online grocery
market.
 Through statistics done
with the help of online
grocery market share
 Through grocery
market share
Increase in
market share by
0.6%
Introducing online
system
To increase
turnover of share
value and returns
Comparing net profit with
previous annual reports
Raising the
annual profit to
be £55
Attaining growth by
increasing sales
generated with online
system.
The targeting of raisin the market share up to 0.6% and this will be possible when consideration
is made in which the delivery of products done online is effective enough. Further, there are
conditions in which people do not trust to make purchases online and there are chances that
defected products are delivered. However, with the help of the online system, management of the
firm will be able to raise their market share in effective manner.
Perspective of customers
Objectives Measures Targets Initiatives
To raise loyalty Determining number
of repeated orders
Raising customers
transaction in one
week to 3.5 million
Benefits from
repeated sales.
To maintain base of
existing customers
Through market share
statistics
Growth market share
of 0.5%
Introducing online
system or service
Customers prefer to make use of the services that easy to access and the type of services
that they receive is effective enough. Firm is able to reach out customers and in developing
strong customer’s base. This way, it also has positive impact over raising the customer’s loyalty.
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