Analysis of Operation Management and Performance at Morrisons

This report offers a comprehensive analysis of Morrisons' operation management. It begins with an executive summary and introduction, providing an overview of the company and its position in the retail industry. The report delves into the transformation process model, examining its key elements and how Morrisons adapts to external environmental factors and internal strategies. It then explores the 4Vs of operation (volume, variety, variation, and visibility) within the context of Morrisons' business practices. The report further examines operation performance, focusing on key objectives such as product quality, dependability, speed, flexibility, and cost. The report also covers process design and analysis, outlining steps involved in process development, and analyzing the transformation of resources into products. Additionally, the report discusses process layout and mapping, providing a detailed view of Morrisons' operational structure, and concludes with recommendations for improvement. References and an appendix are included to support the analysis.

Management of
operation

EXECUTIVE SUMMARY
Both management and operation are broad concept which is used by every type of
organisation either small or large. The concept of operation management is used to increase the
efficiency and production level in organisation. The main objective is to convert the raw material
i.e. input into finished goods i.e. output to process the work smoothly. This report has given a
detail about the management and operation of Morrisons. It is stated that company should take
decision appropriate about the activities and operation in organisation.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
About the company..........................................................................................................................4
Transformation Process Model........................................................................................................4
The 4V's of operation ......................................................................................................................7
Operation' Performance ..................................................................................................................9
Process design and analysis ..........................................................................................................10
Process Layout...............................................................................................................................11
Process Mapping............................................................................................................................12
CONCLUSION.............................................................................................................................13
REFERENCE.................................................................................................................................14
APPENDIX....................................................................................................................................16
Recommendation ..........................................................................................................................16

INTRODUCTION
Operation management is concerned with business practice which involve planning,
supervising and controlling which is related to manufacturing, production and services in
organisation. They ensure to produce high efficiency in production that convert raw material into
finished goods. In this report Morrisons is considered as organisation. It is public limited
company and deals in retail industry and have headquartered in England and United Kingdom.
This is the fourth largest supermarket in UK and CEO of Morrisons is David Tom Potts since
march 2015. This report include transformation model to give the direction and guidance for
leaders about the various activities. It also include organization performance which tell the
strategies to achieve the organisation goal successfully.
About the company
Morrisons is a retail organisation and fourth largest chain of retail market in UK and headquarter
is located in England, United Kingdom. They have currently 494 stores worldwide and sell
goods or services such as clothing, food items, books and magazines and other items in their
store. As per the current report, they have 1,10,000 employees in the year 2021. They satisfy
customer needs and requirements to accomplish the objectives of organisation.
Transformation Process Model
The transformation model is a structure adopted by organisation that help them to give
direction and guide them so they can clearly understand about activities of organisation and
redesign in an efficient manner. According to the viewpoint of (Anand and Gray, 2017) states
that by using this model leaders can recognize the structure and workflow of organisation. In
context to Morrisons, they face critical problem during the situation of COVID-19. Due to this
issue the sales and revenue of organisation fall down and now to solve this problem they are
ensuring the safety of customer health by giving them better services such as cashless payment
and contactless delivery. Morrison use this model to improve the efficiency, productivity and
profitability level, customer service and help them in decision making process. Transformation
model contain eight key elements which are mentioned below:

According to the environmental variable, every organisation have to focus on the
external business environment because they can maintain harmony in environment (Barnes,
2018). With reference to Morrisons, they follow PESTLE analysis to understand about business
environment and they can solve the problem arise from the recent pandemic situation so that it
will be easy for organisation to examine factors that impact the structure of organisation.
Another variable is strategy which help the organisation to develop business strategies to add
value to their customers and remain in competition in market. By using this strategy Morrisons
can plan strategies to overcome the problem of COVID-19 and help them to achieve target and
performance growth.

From the above there are some input involved in transformation model such as
employees, raw material and other inputs to convert them into output. This involve planning,
controlling so that they can improve their design according to the needs and demand of customer.
Finally, with the help of inputs they can effectively convert them output in order to produce
goods and services in market.
The another is core process that explain the flow of work which is examined by
organisation and after this the activities are carry out by employees. In context to Morrisons, they
determine the task and activities in an appropriate manner which help them to attain the goal of
organisation. In transformation model, the variable of structure is important for the process and
can determine the structure of organisation by clearly defining the roles and responsibility of
each employee (Bochtis, Sorensen and Kateris, 2018). Morrisons follow hierarchical structure
which help them to maintain cordial relationship with each other and allocate the proper
resources.
System is a interrelated set of activities that help organisation to coordinate work
accordingly. The activities include promotion, communication, selection and recruitment ,
feedback and many more. The selection organisation have the management department which
analyse the performance of employees and according to that they reward employees. This last

main variable is result in organisation because company can see how they are functioning and
the success level in market with comparing to its competitor (Chary, 2017).
From the above discussion of transformation model, it is analysed that these variable are
significant as they help to analyse the changes and adopt them accordingly. According to the
literature review, problem is analysed and organisation is responding that issue accordingly
which can determine the success of organisation.
The 4V's of operation
In operation every organisation have same business process which are converting raw
material into finished product. The four P's such as voloume, variation, variety and visibility are
defined below:
Volume (High): Volume is depend on how the business is been proceed and operated. In
relation to Morrisons they sell goods or services is less value as compared to their competitor as
this depend upon the number of customers that buy from their store.

It is noticed that, activities assign to staff members of Morrisons are repeated
continuously on daily basis. They build a positive work environment and produce various types
of goods or services and sell them at low prices as compared to their competitors in market
whereas they also offer coupons, discounts and many other deals which attract customers to
purchase product. However, Morrisons volume is higher.
Variety (medium/low): With the reference to Morrisons, employees follow all rules and
regulation set by managers whereas they help customers by segmenting the department in stores,
cashless system and purchasing through online website which help them to attract customer to
purchase goods or services. Morrisons have a standard system and different types of operation is
range between medium to low.
Variation (low): In context to Morrisons, they respond to change in technology quickly
as the occasion season start they give offers to customer in those days they sell more products.
As they produce extra products in daily and there is low variation in demand as there is little
fluctuation during festive season (Demeter, 2017). In simple words, in Morrisons there is there is
more utilisation in resources and have less unit cost which lead to low variation in demand.
Visibility (high/low): In relation to Morrisons, they give better experience to customer as
they have tracking system. When customer order product they can easily track where the order
has been processed such as status where goods or services as been delivered, packed etc. there is
both low and high visibility in activities of Morrisons.

Operation' Performance
Operation performance plays an essential role in success of organisation and it shows the
level at which all the department in organisation work together to achieve the goal effectively
and efficiently (Operation's performance, 2019). The main aim of manager in operation
performance is to develop strategies to improve their performance according to the changes in
business environment. There are various objectives that Morrisons focus which are described as
under:
1. Quality of product: It measures that product is been manufactured as per the
specification set by the quality department (Gibson and Parkman, 2018). To maintain
quality, production and quality department regularly check the product so they can
analyse where improvement is needed to be done. They can provide the product and
services at reasonable price and deliver the products on time so they can satisfy
customers and maintain brand reputation in market. In relation to Morrisons, they
produce high quality products which will satisfy need and demand of customer as they
only focus on quality of product.
2. Dependability of operational performance: With the reference to Morrisons, they can
give offers and festive discounts in order to retain and attract customer as this not only
help in connecting customer but it also help selected organisation to earn profit.
3. Objective of speed: It measures that in how much time they can deliver goods or services
but it also raise issue regarding the time of manufacturing and time to develop strategies
regarding new product (Ketokivi and McIntosh, 2017). In context to Morrisons, customer
order items and organisation give them the opportunity to choose the delivery time and
date and before delivering product department check the quality and then deliver the
product at that time as ordered by customer
4. Flexibility of operation: Flexibility means the changes happen in business environment
such as rapid change in technology, government rules and so on (Machado and et. al.,
2017). In context to Morrisons, to operate their business effectively they can adopt
changes which will help them to gain competitive advantage in order to sustain for long
time.
5. Cost: Morrisons sells food as well as non-food items as they sell high quality goods or
services so they keep their prices at cheaper rate and demand of their product is high.

With the situation of the current pandemic, it is observed that performance of
organisation is affected and due to this sales revenue and profit is decreased. In context to
Morrisons, managers of all department has analysed many situation and planned some strategies
that help them to improve the performance level and can again build the reputation in market to
attract customer.
Process design and analysis
Process design is the process where the resources are transformed into the product
according to the organisation goal, vision and mission (Kurowski, 2017). In context to
Morrisons, they There are some steps of process development for process design which is
described below: Process Requirement: With the reference to Morrisons, they collect information of
customer, shareholder and many other which help them to achieve business objectives. Team Building: In relation to Morrisons, they assign and distribute in that team
according to skills and abilities which is required for particular position (Slack, 2018). Planning and implementation: In context to selected organisation, they develop
strategies which include rules and regulation as they communicate to employees in order
to work effectively and these regulations are approved by higher authority in Morrisons. Audit: According to Morrisons, after selling their goods and services to customer
through website or from store then it take feedback from customer that either the
delivered from is satisfied by them or not. As they also take suggestion for improving
products in future.
 End of life: In relation to Morrisons, they monitor changes that occur in business
environment and analyse what are needs and requirement of customer in market and
according to that they adopt those changes quickly.
Process analysis is defined as the process where the production process is divided into
various phases that turn the raw material into output (Li, Haghighi and Yang, 2018). There are
five steps involved in process analysis which are mentioned below:
 The first step is to discuss the plan to employees regarding what they have to do and
collect information about the requirement of resources from them to perform their task.

Morrisons take a session and discuss about if any resources is unavailable in their store or
tell them what are their roles and responsibilities which is to be performed by them.
 The second step is to carry out group discussion such as interview and brainstorming
sessions that help company to get innovative idea. In relation to Morrisons, they take
various different sessions in order to take idea for further improvement or introducing
any product from employees because they are the one who regularly interact with
customers in organisation.
 The third step is to identify bottlenecks and redundancies which means to found the areas
of delay and unnecessary activities so they can eliminate them (Manikas and et. al.,
2020). In context to Morrisons, in this step they find the areas where the unnecessary
resources are used and take or develop strategies in order to eliminate the waste
resources.
 The last step is to compare the actual process with the previous process and identify the
area where changes has to be made.
Process Layout
According to Morrisons, to produce goods or services raw material is important. They
have adopted functional layout which means they emphasize on activities of organisation rather
prices of items and for customer they have adopted line layout which means goods or services
are produced in flow and continuous in production. Morrisons sell variety of products so these
product keep on place according to the department. In relation to Morrisons, the customers enter
into the department then they choose items from each department and pay their bill by checkout
machines for their chosen product. This all process is line layout and is most appropriate when
volume is high and they offer membership cards, debit or credit cards.

Process Mapping
Process mapping is defined as method or tool where they plan and manage their work
that show how work has been flow. According to Morrisons, they sell their food as well as non
food products through their own websites which start from order given by customer then that
product is been packed and send to customers after that they take feedback that is product is been
delivered. As Morrisons, are only concerned with selling of goods and services as they are not
concerned with production. In other words, it can be said that they do not produce goods and
services their main work is to sell goods and services in market. It start with receiving order from
customer then they check that whether the product is available or not. If yes then they can order
and deliver to customer. On the other hand, the customer pay for goods through credit or debit
card. Then they check is card given by customer is valid and if it is valid then they deliver goods
and services to customer.

CONCLUSION
From the above discussion, it is concluded that operations management is very essential
in organisation because it manage and handle various issues for determining the allocation of
resources, adoption of new changes in technology, organisation structure and so on. It provides
direction control their process that transform inputs into output of product or services. The
transformation model is use to reduce complication in business and this model can be understand
by eight variable such as environment, strategy, culture, leadership and many more. Moreover.
Operation performance is adopted by every organisation because it is a key factor of success and
at this level all department work together to achieve common goals.

REFERENCES
Books & Journal
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management, 53, pp.1-8.
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Bochtis, D., Sorensen, C.A.G. and Kateris, D., 2018. Operations Management in Agriculture.
Academic Press.
Chary, S.N., 2017. Production and operations management. McGraw Hill Education.
Demeter, K., 2017. Research in global operations management: some highlights and potential
future trends. Journal of Manufacturing Technology Management.
Gibson, P. and Parkman, R., 2018. Cruise operations management: Hospitality perspectives.
Routledge.
Ketokivi, M. and McIntosh, C.N., 2017. Addressing the endogeneity dilemma in operations
management research: Theoretical, empirical, and pragmatic considerations. Journal of
Operations Management, 52, pp.1-14.
Machado, C.G., de Lima, E.P., da Costa, S.E.G., Angelis, J.J. and Mattioda, R.A., 2017.
Framing maturity based on sustainable operations management principles. International
Journal of Production Economics, 190, pp.3-21.
Slack, N., 2018. Essentials of operations management. Pearson UK.
Online:
Transformation Models, 2020 [Online], Available through:
<https://link.springer.com/chapter/10.1007/11880240_31>
Operation's performance, 2019 [Online], Available through:
<https://smallbusiness.chron.com/objectives-operational-performance-77937.html>

APPENDIX
Recommendation
Some of the recommendation that should be used by Morrisons for improvement which
so they can achieve organisational goal effectively and efficiently. Firstly, it is suggested that
whenever organisation is adopting new changes they have to give training and development
sessions to employees. The second recommendation is to improve process design as they can
recruit those candidates who have proper skills and have innovate ideas to modify or introduce
new products or services. The main recommendation to management is to motivate employees so
they can put their efforts to achieve organisation goal successfully. It is also suggested that to
develop HR strategies to make policies so they can adopt them effectively. They are also
recommended about marketing department that they should create some plan to market their
products to attract and satisfy customers.