Business Operations and Systems: NTUC FairPrice Case Study Report

This report provides an in-depth analysis of NTUC FairPrice's business operations and systems. It begins by outlining the essential components of effective business operations management, including quality control, capacity planning, and cost reduction, with a focus on customer satisfaction and maintaining a strong brand value. The report then compares different solutions for improving operations and emphasizes the use of soft systems methodology, including a detailed breakdown of its seven stages and the application of CATWOE analysis to identify key issues and stakeholders. Furthermore, the report includes a rich picture, root definition, and business process plans (as-is and to-be) to illustrate the current state and proposed improvements in the context of communication errors and order processing. Finally, it discusses key performance objectives and recommends implementing an online shopping model to enhance productivity and profitability, concluding with a comprehensive references section.

Business Operations
and Systems

Contents
PART 1............................................................................................................................................1
Essential components for effective business operations management........................................1
Comparison of different solutions...............................................................................................2
Use soft system of methodology..................................................................................................2
Comparison and contrast of different models..............................................................................4
PART 2............................................................................................................................................5
Rich picture..................................................................................................................................5
Root definition.............................................................................................................................5
CATWOE....................................................................................................................................6
Business process plan (As is)..........................................................................................................9
Business process plan (To be).........................................................................................................9
PART 3..........................................................................................................................................10
Key performance objectives......................................................................................................10
REFERENCES..............................................................................................................................13

PART 1
Essential components for effective business operations management
The research is focused on NTUC FairPrice which is one of the retail in Singapore. Cited
firm aims at understanding the requirements and to take up appropriate steps so that they are able
to attain their set goals and objectives. Further, the brand value that developed by this firm is
high and so that they have developed a strong customer base (Turban, Sharda and Delen, 2011).
In order to make individuals satisfied, they focus on making understanding the need and
requirements with the help of which the rate of satisfaction can be raised. Further, there are
various type of business operations that are required to be considered by cited firm and they are
as follows:
Quality control and assurance: Steps that are included in operational process are
considered to be highly important. With this respect, it requires to access work at the end of
process. In this context, it is the responsibility for management for quality control so as to
examine final product and to eliminate goods that are defected. Further, steps are taken so that
they are able to overcome them (Choi, Chan and Yue, 2017). One of the effective way to
improve performance of business applied NTUC FairPrice is with the help of reducing waste. In
conditions when the rate of defects are low, then it becomes favorable enough to satisfy
individuals. NTUC FairPrice at Singapore it enables to deliver high quality services and
assurance control.
Capacity planning: It is identified that frequent changes are made in relation with taste
and preferences of service users. With this respect, time to time steps are taken up by cited firm
that is NTUC FairPrice so that they are able to make changes within the firm in positive manner.
With the help of operation management, they focus on developing plan so that optimum use of
resources are done.
Maintaining and placement: NTUC FairPrice is required to develop certain amount of
unit so that they are able to meet the requirement of customers. With the help of operation
management, cited firm is able to take up appropriate steps through which placement take place
in appropriate manner (Demirkan and Delen, 2013). There are frequent analysis made through
which sales that can be produced are identified and requirement of customers by NTUC
FairPrice met.
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Cost reduction and cost control: Operation management is effective enough to reduce the
cost and in controlling the cost that are incurred. This part is done by NTUC FairPrice efficiently
and they are able to control and reduce cost. This way, optimum use of resources are done
through which high quality maintaining standard place are included. NTUC FairPrice make sure
that products are provided to customers at low price so that they are able to develop strong
customer base.
Further, it can be stated that cited organization is able to maintain relationship with
services users and they are highly focused on quality of work. In addition to this, to create value,
feedbacks from customers are taken so as to solve the issues.
Comparison of different solutions
There are different types of steps that can be taken so as to implement the plan, cited firm
should make use of new or updated technology. Apart from this, the rate of interaction with
employees is required to be high (Reim, Parida and Örtqvist, 2015). When these aspects are
focused, then it becomes favourable enough to deliver high quality services. Further, information
to customers should be provided properly so that information in relation with the preferences of
customers is determined. The rate of competition is high and there are many firms that deliver
their customers with similar type of products and services. All the companies focus on gaining
maximum profit. In order to do so, it can be done when the areas in which development is to be
made are identified. There are other retails from which threat can be faced. Cited firm will make
use of warehouse so as to store the products and in delivering it to customers at their home. In
order to make the business operation effective discount offers need to be provided and quality is
required to be maintained (Elbashir, Collier and Sutton, 2011).
Use soft system of methodology
There is different type of methodology that has been used by organisation for remove any
kind of issue is to be created by online business. In this context, some effective strategies are to
be applied for overcome such kind of conditions. This is to be help to improve the market
performance and increase level of market (Shaw, Blanning and Whinston, 2012). In additions,
seven stages are to be inculcated in system of methodology. The main aim is improving the
execution and element the issue in such activity. NTUC FairPrice has purpose at introducing
hybrid artefact to custom-made in which they can go on shopping in shop and can order corking
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online and have also conceived to deliver to the movable barrier to compete the activity place.
The seven stages are accommodating enough to kind sure that the issues that are faced in order to
instrumentality this alteration can be successful in effectual mode. This is help to remove any
mistake and help to each and every customer to solve any problem. On the other side, update
information and aim to be delivery any kind of new information is to be faced in the respect with
the flow of communication (Jacobs, Chase and Lummus, 2014).
At the time of delivery the product to condition in which information will be provide in
better way about the product to each and every customer. Another set of prospective issue that
can be faced is in regard with flow of connection. In delivery of commodity, there are premise in
which the substance is not sent to people and when this is there, then it gets difficult for the
business to grow over (Morecroft, 2015). This is to be focus on to make the products to reach
them to increase the level of performance in market. This is one of the most important part to and
help to increase number of customer in market. On the main issue is faced by such techniques in
this is aspect the flow of communication with each and every customer. There are many gaps is
to be required for the consideration by the organisation. Nowadays, new technology or
innovation is most important part and online services and proper system is to be reached them.
The gap that is featured from the side of custom-made should be known and this can be
through by devising use of work gap theoretical account. In accord with this worthy, there are
five gaps that are needed to be reasoned by the organization and they are as follows:
 Step 1 : Thee to be focus on the distance customer and expect the perception of managing
director. The level of expectation of customer has been different in each and every level.
In this way, gap between manager and customer is covered (Yager and Zadeh, 2012).
 Step 2 : In this context, perception of management and actual specification of customer
experiences. On the other hand, responsibility of manager is to concentration on
antithetical level of facility they are to be necessitate. The management is to be focus on
some spacious plan for each and every activity.
 Step 3 : It is the gap identified from the side of customer’s education. For this facet, it is
essential for the managing director to audit experience of grouping in which all their
necessitate are contented.
 Step 4: It is the spread betwixt experience of custom-made and the message that is
delivered to them. The education of custom-made can be made optimistic when direction
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have becoming perceptive of aspects that they should be beaded (Asif, Searcy and
Fisscher, 2013).
 Step 5 : In this context, customer experience and perception is help to improve the
services and increase the level of overall performance in market.
The mixture dimension: This is the opposition between all the employment that are delivered,
Cited retails is preparation to deliver their customised within employment in which they will get
performance with online employment and location delivery.
Fluctuation magnitude: The kind of services that is conceived by the steady is not fresh. There
are galore other form that verbalise their custom-made with akin type of merchandise and
employment (Yager and Zadeh, 2012). These employments are used so that customized can be
reached out amended.
Comparison and contrast of different models
To be making the comparison among all the models to improve customer performance. It
is proper step to be taken, so the step will be taken in the right place. There are antithetic plans
that are ready-made and each of them it definite quantity to have befitting part of outgo to be
done. Further, it is also essential to hire person who will be effectual enough to activity the
activeness in grade-appropriate way. The gap of the experience is help to increase the overall on
the job state of affairs and indefinite quantity amount of customer in market place. This is to be
solve any such kind of issue that are to be faced the side of the consumer (Morecroft, 2015). All
the models utilized have their aim set of plus and disadvantage. The steadfast should follow 4 Vs
of Business activity Administration as it will change to concentration on the content in effective.
With the help of such kind of activity is help to improve overall management inside as well as
outside governing body. The planning is to be focus with the help of finance activity and work is
to be managed in financial carrying into action. It is main aspect of each and every business
organisation or activity to start and pull off number of client in securities industry.
As per the recommended solution for the issue that is faced, it can be stated that
delivering products online is effective enough to meet the need and requirement of customers in
appropriate manner. This way, it becomes helpful for NTUC FairPrice to raise their sales and
profitability.
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The organisation can design their website in order to make organisation online. Thus, it is
recommended to the management of NTUC to implement online shopping model in their
business framework in order to enhance productivity and profitability.
PART 2
Rich picture
Figure 1: Rich picture
Root definition
The only problem identified in the whole operation process is the communication error
that could be occurred during order receive and order processing process. If employee
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communicated incorrect order to processing department than it can cause degradation of
organisational image. As per the above rich picture made, it can be stated that there are two of
the main issues that are faced. In this context, it includes problems related with communication
error that is caused at the time when order is processed. With this respect, it is required to taken
up appropriate steps in which interaction with all the people involved are strong so that these
issues can be eliminated. In order to words, it can be stated that main cause of issue was caused
with communication error. When proper consideration is made towards resolving the issue, then
it will help to develop an effective supply of goods.
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 (Jacobs, Chase
and Lummus, 2014). 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. Further,
it is also convenient for users to select the most
appropriate way for making payment.
Actors NTUC FairPrice 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 (Shaw, Blanning and
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Whinston, 2012). 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. When payment procedure is done by
customers, then immediately the order is identified
by the firm (Elbashir, Collier and Sutton, 2011).
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
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
(Reim, Parida and Örtqvist, 2015). When firm is
able to reach out customers more effectively, then it
also boosts up the market share. The rate of
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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. 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 (Demirkan and Delen, 2013). In
accordance with the climate change act,
government make sure that proper control is done
for reducing the rate of emission form harmful
gases. Apart from this, there is Grocery Supply
Code of Practice (GSCOP) that makes sure that all
the companies do follow the regulation and harm
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caused by firms can be reduced.
Business process plan (As is)
Business process plan (To be)
To be: In the above, given graph, it demonstrates all the data in connection with the procedure
that which customers will experience in order to make utilization of the framework in fitting
way. At the point when contrasted and "As seems to be", in "To be" customers need to make
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their inquiry on the site that is created by the firm in which all data about the items are appeared.
Customers need to choose the items that they will purchase and afterwards the progression of
instalment happens in which individuals are given the alternative for instalment which should be
possible on the web or when conveyance of products is done. At the point when this progression
is finished, at that point the data related with the request put is promptly exchanged to
administration of the firm that works (Choi, Chan and Yue, 2017). At the procedure of
instalment it is essential for the customers to give finish insights with respect to the address and
telephone numbers. These are essential to be given as it causes the specialists to make the picked
items by the customers to contact them. At the point when these means are done, at that point the
parts of customers are finished.
AS-IS the process that is currently going on within NTUC FairPrice. On the other hand,
TO-BE is the process that will be followed in the future. There specific details added that firm is
will be implemented and these changes will helpful the firm to grow in positive manner. AS-IS
process is time consuming which consume time of both organisation and customers. As
compared with AS-IS, TO-BE model is more advance which helps in saving time and cost of
both customer and organisation.
PART 3
Key performance objectives
The NTUC FairPrice focuses on increases the online shopping market, therefore it can
help in increasing customer's satisfaction and loyalty. Another objectives of NTUC FairPrice is
to reduce operational cost. In all these activities, it is very important to consider cost involved in
the online system. Further, it additionally incorporates to screen employees with the goal that
they can decide the regions in which improvement should be made (Turban, Sharda and Delen,
2011). One of the contemplations that must be made is in connection with refreshing innovation.
This will be sufficiently compelling to ensure that all prerequisites of customers are
distinguished and satisfied and high quality is conveyed. Managers can be made utilization of
TQM (Total quality administration approach) for keeping up astounding principles.
Objectives Measures Targets Initiatives
To obtain share for Through statistics Increase in Introducing
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online grocery
market.
done with the help
of online grocery
market share
Through grocery
market share
market share by
0.6%
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.
Table 1: Balance scorecard in perspective of finance
In order to raise the market share up to 0.6%, this is only when online delivery of
products is effective and efficient. Furthermore, there are situations in which customers do not
trust online shopping. One of the main reason could be negative comments made by customers.
Further, it is also stated that focus is made on raising the annual profit to £55, all these can be
done when all the need and requirement of customers are satisfied.
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
Table 2: Customers Perspective
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Customers prefer to utilise services which are easy to access and effective. Organisation is
capable of reaching to the customers and developing strong customer base. It also helps in
creating customer loyalty.
Objectives Measures Targets Initiatives
To maintain low
cost by reducing
operational costs.
Making comparison
with previous
operating cost
Attaining 30% of
operation costs
Operations
management
and efficient
systems
To determine the
packing system
used is effective
Monitoring
employees
performance
In 60 minutes 2
orders should be
made ready
Making
customers
know about
convenience
benefits.
Table 3: Internet business processes perspective
The time taken by the business in performing business activities can be minimised if the
employees understand the working procedures and work effectively. When the time that is taken
is decreased, then it becomes favorable enough for the steady to sort sure that all the commodity
are made to reach group earlier the due date and this germinate trust and assurance
Objectives Measures Targets Initiatives
To decrease
turnover of
employees
Comparing previous
employment statistics
Annual raise in
employment for
40%
Introducing
incentives.
Table 4: Learning and growth perspective
On the other hand, proper perceptive about the total time that is taken place in abstraction with
underdeveloped the commodity and devising it at the ready for bringing. In additions, work
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become favourable to sort sure that the carrying into action of the business concern can be
elevated in effectual way.
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REFERENCES
Books and Journals
Asif, M., Searcy, C. and Fisscher, O. A., 2013. An integrated management systems approach to
corporate social responsibility. Journal of cleaner production, 56, pp.7-17.
Choi, T. M., Chan, H. K. and Yue, X., 2017. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics, 47(1),
pp.81-92.
Demirkan, H. and Delen, D., 2013. Leveraging the capabilities of service-oriented decision
support systems: Putting analytics and big data in cloud. Decision Support Systems,
55(1), pp.412-421.
Elbashir, M. Z., Collier, P. A. and Sutton, S. G., 2011. The role of organizational absorptive
capacity in strategic use of business intelligence to support integrated management
control systems. The Accounting Review, 86(1), pp.155-184.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Morecroft, J. D., 2015. Strategic modelling and business dynamics: a feedback systems
approach. John Wiley & Sons.
Reim, W., Parida, V. and Örtqvist, D., 2015. Product–Service Systems (PSS) business models
and tactics–a systematic literature review. Journal of Cleaner Production, 97, pp.61-75.
Shaw, M., Blanning, R. and Whinston, A. eds., 2012. Handbook on electronic commerce.
Springer Science & Business Media.
Turban, E., Sharda, R. and Delen, D., 2011. Decision support and business intelligence systems.
Pearson Education India.
Yager, R. R. and Zadeh, L. A. eds., 2012. An introduction to fuzzy logic applications in
intelligent systems (Vol. 165). Springer Science & Business Media.
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