Operations Management Report: Analyzing Primark's Business Strategies

This report delves into the operations management of Primark, a prominent fashion retailer. It examines the company's operational functions, emphasizing financial management, innovative product development, and alignment with customer needs. The report highlights the role of operations managers in overseeing various aspects, including conflict resolution, financial information, inventory, and workflow. A process chart illustrates Primark's manufacturing and customer interaction, while the analysis extends to process management and improvement, particularly concerning inventory control. The implementation of lean management practices and capacity management are also discussed, alongside recommendations for enhancing these areas. The report provides a comprehensive overview of Primark's business strategies and operational processes, offering insights into its success in the fast-fashion industry.

Running head: OPERATIONS MANAGEMENT
Operations management
Name of the student
Name of the university
Author’s note

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Executive summary
The report focuses on the importance of operations management and the manner in which
business organisations can take control of its processes by implementing the operational
process at its organisation. The focus is on Primark, one of the most popular fashion
companies located in Ireland. The report analyses the operations management of the company
and the role played by the operations manager. A process chart is provided that helps in
understanding the development of the process at Primark and the inventory process it
undertakes. Along with this, the implementation of the lean management of the company is
taken into consideration, which highlights the development of the company. Capacity
management is analysed that talks about the potential of the company. At the same time,
recommendations are provided such as development of the lean management, analysing the
external environment and the proper market research is provided in the report.

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Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................4
i) Operations management......................................................................................................4
ii) Process management..........................................................................................................9
iii) Lean management...........................................................................................................14
Part B........................................................................................................................................17
i) Capacity management.......................................................................................................17
Part C........................................................................................................................................20
Conclusion and recommendation.........................................................................................20
Reference..................................................................................................................................24

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Introduction
The emphasis of most corporate organisations is on the marketing of the products
based on the demands, needs and expectations of the customers. Therefore, operations
management in such organisations act as an important role in ensuring that the alignment of
business operations is made with that of the needs of the customers. According to Heizer et
al. (2017), operations management is organisations comprise of three levels, which include
strategic, tactical and operational levels. In the modern day, the process is dependent on the
capacity of the operations managers in trying to integrate the operations of various
departments like finance, marketing, human resource as well as the procurement of supply
chain management (Hitt Xu and Carnes 2016).
The role of the operations mangers in the business organisations in integrating the
different operational areas is the ultimate streamline required for the operations of an entire
organisation to meet the needs and demands of the customers. As stated by Reid and Sanders
(2015) the needs of the customers are dynamic with the nature and it keeps on fluctuating.
Hence, alignment of the operations is not feasible for any organisation based on customer
needs. However, a gap between the two variables that is the customer needs and
organisational operations may have impacts that may determine the success of the business.
The senior management bodies in large companies undertake the employment of the
operations management. It is usually done in consultation with the requirements of an
organisation and its industry standards. Khanna (2015) is of the opinion that the evaluation
reveals degrees based on which every organisation remain concerned with the needs of the
customers. It is a fact that the standards of the industry constitute the standards of the
operations, which are followed by the leading companies based on particular industry. For
this research, the current operations management of a company is in focus and is matched

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against the industry standards. The company in focus is Primark, a fashion retail company
that is located in Dublin.
The purpose of the research is to explore the importance and implementation of
operational management in large companies that leads to the satisfaction of the customers
based on the products manufactured and served. The research comprises of identifying the
operational management related with Primark along with its lean management practise that is
adopted. A process management diagram is provided that highlights the manufacturing and
serving process that is adopted by Primark. At the same time, the capacity of Primark is
analysed and recommendations are provided highlighting the changes that are to be
maintained.
Primark is an Irish fast fashion retailer that is headquartered in Dublin and is
considered as a subsidiary of ABF. Arthur Ryan founded the first store of the company on
behalf of the Weston family. The establishment of the company was made in June 1969. The
success story of Primark is the fact that even today the store remains in operation and has
managed to expand its dominance in countries like United States, Italy, Austria, Belgium and
so on (Primark.com 2019).
Part A
i) Operations management
Primark is one of the biggest fashion retailers in the world and thus, the operating
functions of the organisation need to be based on the recent changes that exist in the business
world. The operations functions adopted by Primark can be attributed to the fact that the
company plays an important role in the development of its business process and for the
expansion of its product line (Primark.com 2019). According to Mahadevan (2015), one of

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the biggest operating functions that are undertaken by Primark is the fact that the company
tries to maintain its finances in a proper manner (Primark.com 2019). The maintenance of the
finances of Primark can be attributed to the fact that the company ensures that proper revenue
is managed so that innovative strategies can be applied in the organisations (Primark.com
2019).
At the same time, it can be seen that the current practise of Primark is based on the
manufacturing of innovative clothes that can help in the development and promotion of
fashion (Primark.com 2019). Unlike in its earlier days, Primark has managed to improve its
business prowess and have expanded in various countries all across the world (Primark.com
2019). Therefore, the current operational practise undertaken by Primark can be attributed to
the fact that the company manages to manufacture products based on the cultural
requirements of the people (Primark.com 2019). The demands and desires of every person
need to be fulfilled and thus it is the duty of Primark to continue with the development of the
products that highlights the cultural considerations of the people (Primark.com 2019).
Hence, it can be said that the operations function of Primark comprise of
understanding the needs and requirements of the customers and contemplating the next
strategy that can help in its development. Lee and Tang (2017) are of the opinion that
customer satisfaction can be considered as one of the most important factors that can help in
the growth of an organisation. In the case of Primark, demands of the customers from across
the world need to be fulfilled in order to gain satisfaction.
Thus, proper financial management need to be undertaken so that the company can
continue to develop its operations in the market by planning and controlling the activities
related to manufacturing. Therefore, it can be said that for Primark to gain success, the

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development of the raw materials for manufacturing the fashionable products can be
considered as a valuable goods and service (Primark.com 2019).
In this regard, an analysis can be made about the role played by the operations
manager in trying to link the current practise with that of the standard practise that is adopted
by an organisation. The focus and comparison is on the role played by the operations
manager at Primark with the aim to understand the current practises that are encouraged by
the managers.
The role of the operations manager includes:
Provide a big picture perspective: The mangers are responsible for the overall
wellbeing of the operations of a company. Therefore, Swink et al. (2017) stated that the big
picture perspective comes into play owing to meet the demands and expectations of the
customers. The managers think critically to analyse the situations that are currently faced so
that the decisions taken are for the best interest of the companies.
Resolve conflicts: The managers need to resolve any type of conflicts that may exist
in the departments of an organisation. For Primark the operations managers manage to
maintain a unity among the various departments and stores of Primark so that conflict of
interest does not take place (Primark.com 2019). This is particularly useful since the
company deals with its various stores across different countries and different cultural
backgrounds.
Oversee the financial information: This can be considered as an important role for
the operations manager mainly because the monitoring of the financial conditions as well as
the curtailing of the departments from overspending suggests good attributes for leaders (Hitt
and Ireland 2017). Therefore, it can be said that the financial information related to business

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need to be manages based on the fact that cost benefit analysis need to be developed for
managing the processes in an organisation. Thus, for Primark the knowledge of the financial
information is considered as an important role for the managers.
Supervise the inventory and supply chain: According to Ivanov, Tsipoulanidi and
Schönberger (2017), the supervision of the inventory and the supply chain need to be done
based on the tracking and monitoring of the inventories within the organisation. For Primark,
the development of the inventory needs to be maintained for the steady supply chain
management and based on the supply chain management the company can continue to
develop its practises.
Supervise the entire process: The supervision of the entire operations process need to
be maintained so that failure in any of the process or department does not exist in an
organisation. The operations manager undergoes the development of the inventory and
ensures that the distribution to the customers is completed in a successful manner. Hence, as
observed by Choi, Wallace and Wang (2018) while employees are only specified in one
process, the managers need to be accountable for the entire operations process.
Workflow and staff: The management of the employees and the flow of work need to
be based on the staffing requirements of an organisation. The operations manager
collaborates with the HR managers in recruiting and managing the employees so that steady
workflow process can be implemented. For Primark, the workflow and staff process helps in
development of the operations (Primark.com 2019).
Based on the analysis of the role of the operations manager, the key issues that
Primark may face can be analysed. It can be said that one of the issues that may be faced is
the fact that supervising the entire operations process can be difficult since each department is

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usually dependent on one another. Hence, undertaking the duties of the supervision can be
considered as a huge issue for the development of Primark (Primark.com 2019).
ii) Process management
Feedback from customers are obtained from social media like Facebook

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Managers of Primark
provide approval to
the requirements and
approve budgets to
acquire the inventory
Customers visit the
retail outlet
Direct interaction is done
between the sellers and the
customers to understand
needs and requirements
Marketing department forwards
the information of the customers
Marketing department communicates
requirements of the customer to
inventory department
Inventory is checked to identify if
the customer requirements can be
metN
YN
Production of clothes as
per customer expectations
Inventory managers
present the
requirements before
management
Price set by the
account department
Feedback from customers are obtained from social media like Facebook
Inventory received
Placed order to the inventory
OPERATIONS MANAGEMENT
Figure: Process chart of Primark
(Source: Primark.com 2019)

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Process analysis and improvement: Based on the analysis of the process chart, it can
be said that for Primark to continue with its business process, it is necessary that the company
continue to develop its practises in the organisation by analysing and improving its products
on a regular basis (Primark.com 2019). Roth et al. (2016) is of the opinion that the process
analysis is done on a regular basis, so that Primark can make changes related to the manner
by which it can change its supply chain process or the manufacturing process.
For example, it is necessary that Primark analyses the rate at which the inventory is
checked so that the production of the clothes are done as per the requirements of the
customers (Primark.com 2019). It is necessary that Primark continue to develop its
composure in the business process while trying to improve the monitoring process for making
the process chart more flexible (Primark.com 2019). The analysis needs to be done by the
operations manager and the managers of Primark can embark on a quest to satisfy the
demands of the customers (Primark.com 2019).
Hence, improvement can be made to ensure that Primark continue with the
development of its process based on the flaws identified (Primark.com 2019). For example,
checking the inventory can be a challenging factor for Primark and thus, the improvement of
the process of checking with the inventory can be made. This can be done by maintaining a
proper checklist of record of the items that are to be sold so that Primark can ensure that the
requirements of the customers are met (Primark.com 2019).
Customer service strategies: As stated by Haniff and Caldwell (2019) the customer
service strategies refer to the plan of action that is undertaken to ensure that the customers
remain satisfied. For Primark, the customer satisfaction is one of the important factors that
are undertaken by the company and it helps in the development of profit as well as

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recognition among the customers (Primark.com 2019). The strategies that are undertaken by
Primark to help in its development include:
Ensure an optimised agent training programme: As stated by Agrawal, Atasu and
Van Wassenhove (2018) the satisfaction of the customers are mostly dependent on the
services provided by a company in terms of products and the quality of behaviour
undertaken. Hence, Spring et al. (2017) is of the opinion that proper training needs to be
provided to the employees so that they can behave properly with the customers and create a
sense of effective bonding with the customers.
Choose the right tools: It is necessary to ensure that the right tools and techniques
are used for the development of proper customer services. Primark can implement people in
every corner of the department stores so that proper guidance can be provided related to the
characteristics of the clothes (Primark.com 2019).
Personalise the experience: It is essential to ensure that the customers be provided
with a personalised experience so that the loyalty can be maintained. Wamba et al. (2018)
stated that the personal experience of the customers could be maintained by ensuring that
every customer is provided with emails or notifications in the case of any new products that
been manufactured. Primark can call the customers personally or send them text messages to
convey the similar information (Primark.com 2019).
Inventory management: Inventory management is the supervision that consists of the
non-capitalised assets such as the inventory and the stock items. Musalem et al. (2017) is of
the opinion that inventory management is considered as an important component of supply
chain management and it helps in the supervision of the flow of goods from the
manufacturers to the warehouses. In the case of Primark, the inventory management of the
company can be seen as critical from the analysis of the process chart (Primark.com 2019).