Evaluating Strategic Business Growth in Retail Sector

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Business Process Management (BPM) is crucial for enhancing operational efficiencies and driving business performance. This assignment explores the strategic importance of BPM by examining its impact on operations and supply chains. Students will analyze different BPM methodologies, discuss their benefits, address implementation challenges, and evaluate case studies where BPM has significantly improved organizational efficiency. By understanding these dynamics, students can appreciate how BPM contributes to achieving competitive advantages in various business contexts.
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Running head: BUSINESS OPERATION SYSTEM
Business Operation System: Cold Storage, Singapore
Name of the student:
Name of University:
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1BUSINESS OPERATION SYSTEM
Table of Contents
Part 1................................................................................................................................2
Introduction to Business Operations Management.......................................................2
Cold Storage’s Operating Model.................................................................................. 2
Soft Systems Methodology...........................................................................................2
The Problem Situation..................................................................................................3
Online Grocery Sector Models.....................................................................................4
Operation Strategy Priorities Model..............................................................................4
Proposed Solution-Cold Storage Online Operations....................................................4
Parcel Conundrum........................................................................................................4
Part 2................................................................................................................................5
Rich Picture Symbols................................................................................................... 5
Rich Picture – Cold Storage.........................................................................................6
Root Definition..............................................................................................................6
CATWOE......................................................................................................................7
Business Process Map “AS IS”.....................................................................................8
Business Process Map “TO BE”...................................................................................9
Description “AS IS”.......................................................................................................9
Description “TO BE”................................................................................................... 10
Part 3..............................................................................................................................10
Effective Implementation and Change Management..................................................10
Balanced Scorecard Measurement of Performance...................................................11
Cold Storage Balanced Scorecard.................................................................................15
Financial Perspective................................................................................................. 15
Customer Perspective................................................................................................ 15
Internal Business Process Perspective......................................................................16
Learning and Growth Perspective..............................................................................16
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2BUSINESS OPERATION SYSTEM
Part 1
Introduction to Business Operations Management
For the key success of any business operation management plays the most vital
role. It is the role of the company head to develop proper business strategy so that they
can obtain competitive advantages and high level measureable commercial revenue.
For this particular report the nominated company is Cold Storage, Singapore and the
cold storage operation model operated by the company is illustrated in this report. With
the proper application of operational and functional business strategy the company will
be able to create long range of sustainable planning. Each of the business function
operated within the business plays a role that supports the business strategy. The
operation strategy has the ability to configure and develop business processes in such a
way so that the company can serve expected services and products to their consumers.
Though, the success of any business is partly dependent on the effective usage of the
resources. The operation strategy is referred to as a combination of different
components in terms of capacity planning, design, cost control, time management etc.
Moreover, it can be said that the aim of Cold Storage, Singapore is to deliver quality,
on-time, fresh and affordable products and services to the consumers.
Cold Storage’s Operating Model
Soft Systems Methodology
Soft system methodology is referred to as a attempt that helps to foster learning
and appreciation of the problematic situation among the company stakeholders rather
than the set out for resolving a pre-defined issue. In most of the cases the attempt to
define and resolve any problem becomes a complex situation rather a social problem. In
order to track and handle such difficult such situation the soft system methodology
(SSM) is very much useful. It provides a framework to that can easily define the problem
and also resolve the identified issue. Two different modes of SSM are there such as
system thinking and real world activities. Through conducting meetings, interview and
survey the root cause of the problem and the reason o the situation can be understood.
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3BUSINESS OPERATION SYSTEM
This phase of the operation model is represented through a rich picture. On the other
hand, the system thinking a hierarchical approach that is comprises of communication,
control, and properties emergent for identifying necessary relevant system that can
provide appreciable insights to the company. With the construction of a root definition
the relevant system can be logically represented. In order to generate the conceptual
models these logical representations are very much helpful. This concept of soft system
methodology was developed by Peter Checkland before twenty years. The logic of the
soft system methodology also shows the interrelationship between all the problems
those are facing by the company. With shared perception, debates and persuasion the
problem solving capabilities can be grown.
The Problem Situation
The grocery retail environment is become very much competitive every day. In
order to gain competitive advantages and measurable economic growth it is necessary
for the company to take necessary actions accordingly. The rest of the retail sectors are
giving high level of competition to the company. Lack of managerial, functional and
operational abilities the company is facing major level of challenges. Previously Cold
Storage, Singapore had a traditional manual data management system which was
unable to handle all the necessary operations appropriately. The aim of the company is
to roll out pick up services nationally for the online orders. The numbers of online
service providers are increasing every day and due to speedy service the consumers
also prefer the online service. Due to lack of technical excellence the half of the sales of
the company is overtaking by other online service providers in the competitive market.
Cold Storage, Singapore is one of the top 100 companies those are listed in JSE. The
core business of Cold Storage, Singapore s focused on delivering retail products to their
consumers. Through the company is making life of the consumers easier everyday but
still due to some of the sales issues the rest of the companies were getting much
commercial benefit from this company. As all the products delivered by the company
are not produced by themselves thus those are required to be stored in such a way so
that those can remain fresh. The key success of any company is dependent on the
quality and affordability of its products. Thus, the aim of this company was also to
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4BUSINESS OPERATION SYSTEM
deliver quality products to the consumers. They were failing to do so each tome which
leads the company towards a problematic situation.
Online Grocery Sector Models
In order to deliver quality and affordable products to the consumers the online
grocery sector model should have to be maintained by the company. The factors that
should be maintained accordingly by Cold Storage, Singapore to keep their operational
capabilities include value chain model, inventory management, delivery chain, customer
value chain etc.
Operation Strategy Priorities Model
The operation strategy priority model deals with some factors such as flexibility,
cost, quality, speed, dependability.
Flexibility: The Company is focused to provide limited products to their
consumers thus they are capable to maintain their delivery and operational flexibility.
Cost: The Company is focused to keep the product’s cost within an affordable
range.
Quality: The quality control measures of the company are not compromised.
Speed: The Company uses proper standards so that the speed of the product
delivery can be maintained.
Proposed Solution-Cold Storage Online Operations
The proposed solution to Cold Storage, Singapore is “To deliver cold storage
online operations”. Traditionally Cold Storage, Singapore delivers their services only in
Singapore but with the expansion of business they become responsible to deliver their
products in many locations. Thus, in order to keep their products fresh they proposed to
develop cold storage for the online operation. The cold storage will help to keep the
quality of the products. The decentralized warehouse will help the company to deliver
quality and affordable products throughout.
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5BUSINESS OPERATION SYSTEM
Parcel Conundrum
The parcel conundrum is referred to as a process of parcel delivery. With the
business expansion the product delivery boundary of the company has also been
increased a lot. It is the responsibility of the company to deliver the desired products to
the consumers as an intact one without any kind of torture. In case of traditional home
deliveries many issues used to raise before however, with the help of parcel
conundrum, the delivery issues will be completely minimized.
Part 2
Rich Picture Symbols
Rich pictures are an aggregation of illustrations, pictures, images and content
that speak to a specific circumstance or issue from the viewpoint(s) of the individual or
individuals who drew them. Rich pictures can indicate connections, associations,
impacts, circumstances and end results.
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6BUSINESS OPERATION SYSTEM
Rich Picture – Cold Storage
Root Definition
After analyzing the above mentioned rich picture the following root definition has
been developed:
“Cold Storage, Singapore operates both online and offline service to deliver
quality, affordable and on time delivery to their consumer. In order to serve fresh
products to their customers the company also operates a cold storage.”
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7BUSINESS OPERATION SYSTEM
CATWOE
The CATWOE analysis helps the company to ensure that the defined root
definition is containing all the necessary elements.
C- The consumers of the Cold Storage, Singapore include both of their online
and offline consumers. Not only is this but also due to their simultaneous technical
advances incorporation the company becoming able to grab new consumers. The
invoice of the consumers measures the effectiveness of the new system implemented
by the company. In order to deliver fresh and affordable products to the consumers the
company has implemented an online cold storage.
A- The system of Cold Storage, Singapore includes both the consumers and the
employees who works operates collectively to process an error free service. In order to
manage the cold storage warehouse proper training and development programs are
also additionally incorporated.
T- Considering the satisfaction level of the consumers the Cold Storage,
Singapore should transform and process and deliver fresh food products.
W- The retail company is focused to deliver quality products to their consumers
by maintaining the perception the consumers.
O-The Company can manage a cold storage warehouse for their online food
products. It is expected that, it will give proper control over the delivery system for the
online operation.
E- Cold Storage, Singapore is operated, monitored and regulated by the Grocery
Supply Code of practice (GSCOP). Due to the home delivery service of the company,
Cold Storage, Singapore needs to consider and evaluate their emission.
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8BUSINESS OPERATION SYSTEM
Business Process Map “AS IS”
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9BUSINESS OPERATION SYSTEM
Business Process Map “TO BE”
Description “AS IS”
The “AS-IS” process model depicts shows its present activities and forms that
happen from the point a client comes into store. The first pool is for the clients that shop
at Cold Storage, Singapore. The procedure begins when the client sees offers on the
web. They at that point travel to the store, buy the items, make an installment and leave
the store. In the meantime, inside the store there are a few procedures that happen,
obvious in the second pool of the guide. The stores receive an in the nick of time way to
deal with deal with their stock, which is reflected in the diverse pools: the store, local
stockroom and providers. Nearby providers convey deliver straightforwardly to the store.
Whereas, national and worldwide providers convey to the local stockrooms. As requests
are gotten they are handled and conveyed appropriately.
Description “TO BE”
The “TO-BE” process model depicts the diverse procedures that will happen
once Cold Storage, Singapore dispatches its online administration, created from the
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10BUSINESS OPERATION SYSTEM
arrangement proposed partially 1. The procedure begins once the client visits the site,
picks items, affirms the request and afterward picks a conveyance technique. Two
choices have been given as examined in part 1, home conveyance and snap also,
gather. Once chose, the client at that point makes an installment.
Part 3
Effective Implementation and Change Management
This particular section of the report reflects the effective implementation of the
change management so that the issues that the company was facing previously can be
managed rather completely resolved. The aim of Cold Storage, Singapore is to deliver
fresh quality food products to their consumers. In order to deliver fresh quality and
affordable products the company has implemented a cold storage warehouse. The
performance objectives of the company can be achieved with the development of this
new system approach. In order to support the new system that has been implemented
an operation priority model should be applied by the employees. The Cold Storage,
Singapore adopts a decentralized approach that can operate both the low level and
medium level activities. In order to implement the cold storage warehouse for the online
service the managers of the company should focus on certain components in terms of
flexibility, dependability, costs, quality etc. In order to process the operational and
functional capability the estimated cost would also involve all the required resources.
Moreover, it can be said that the online service offered by the company should have to
reliable and secured at the same time. In order to properly balance the system
efficiency the standard delivery methods are also required to be maintained by the
managers. Traditionally, the company delivers their products in Singapore only thus
they need not to maintain any cold storage warehouse but as they planned to expand
their business they decided to implement a cold storage warehouse for delivering fresh
quality food products to their consumers. After analyzing the effectiveness of this
change approach it can be said that with the successful implantation of these changes
the issues the company was previously facing will be resolved. There are two different
dimensions of the change management are there such as top level which include cost,
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11BUSINESS OPERATION SYSTEM
quality, tome on the other side the bottom level employee holds perception, attitudes
and acceptance capability of the employees. In order to develop the expected system
solution for the company the managers of the company should make sure that they are
using effective communication among each other. A realistic timeframe should have to
be used by the project managers to implement all the expected changes for the Cold
Storage, Singapore.
Balanced Scorecard Measurement of Performance
Balanced scope card is referred to as a strategic planning and management
system that are utilized by the business organizations to measure their performance.
The different components those are collectively managed by balanced score card are
the mission, vision and strategy of the company. In order to establish a balance among
the objectives, KPI and actions this particular tool is widely used by the business
organizations. Basically in the large business organizations this particular tool is used
for managing the financial status, customer satisfaction. In addition this for managing
both the internal and external business process the balance score card is used by the
business owners.
Cold Storage, Singapore is focused to develop a cold storage warehouse for
their company so that they can deliver fresh quality food products to their consumers
with an affordable price. The financial, consumers, internal business process and
learning and growth of the company are measured by this. It can be said that, with the
successful implementation of balanced score card the company will be able to meet the
preliminarily set objectives.
Objectives Measure Targets Initiatives
Financial To enhance
the overall
company
turnover
Benefit 54% By incorporation
advanced
technical
excellences to the
operational
abilities of the
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12BUSINESS OPERATION SYSTEM
company
To enhance
the rate of
market share
Market share 7% By strengthen the
online service
offered by the
company
To obtain high
level of online
market share
Online market
share
7% Addition of
market level
communication to
the company
Consumers
To provide
satisfactory
service to the
consumers
Rating for the
customers
90% Based o the
collected
consumer
feedback or
invoice the
operational
activities of the
company should
be increased.
Considering the
online website
functionalities and
Total quality
management plan
the customer
service training
program should
be arranged by
the company
head.
Increasing the Market share To launch a user
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13BUSINESS OPERATION SYSTEM
online
consumers
base
2%
friendly website
for the consumers
and apply all
necessary
promotional
activities.
To retain the
current
consumers
Market share 70% The company
should focus on
delivering quality
and on time
products to the
consumers.
Adequate
employee or
staffing is
required by the
company so that
they can manage
both the online
and offline
services and
operation.
To lower down
the operational
cost
Environmental
performance
indicator
5% Effective system
and operation
management
system approach
should have to be
implemented.
Retain
consumers
and grab new
Market share
90%
Continuous
improvement
program
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14BUSINESS OPERATION SYSTEM
consumers
Internal
business
process
Long term
maintenance
of product
quality
TQM 95% By maintaining
the standard
quality the
company will be
able to deliver
throughout quality
products to the
consumers
Diminish the
overall
operational
cost
Operational
cost
4% For increasing the
quality
productivity of the
company training
must be arranged
by the company
heads.
Growth and
learning
Customer
service
program
should have to
be arranged.
Percentage of
total trained
employee
working in Cold
Storage,
Singapore
80% Developing FAQs
and all other
different scenario
so that the
training can be
supported
To introduce
new and
advances
Promotion 4% Delegate
responsibilities
and necessary
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15BUSINESS OPERATION SYSTEM
technical
advances
training program
should have to be
arranged.
Cold Storage Balanced Scorecard
Financial Perspective
Based on the competitive market and their serving ability the feasibility
perspectives of Cold Storage, Singapore should have to be created. In the year of 2013
to 2014 certain effective changes are incorporated to the company which implies that
there was no such profit from the discounting operations as compares to 2013-2014.
The operation of the company has been widened and the evidence for this is 3.89% of
increment in the finance structure. By 55.67% of interest rate has been decreased.
From the operation the revenue has also been increased up to 50% in these current
years. On the portfolio of the freehold sites the company has proposed a divestment
which is amounting to $600 million.
Customer Perspective
In this category the main aim of the company is to satisfy the consumers with
affordable and fresh quality food to the consumers. The success of the company and
the satisfaction of the consumer are directly proportional to each other which imply that
as much the consumers will be satisfied with the service and products that much
economic profit the company will gain. The second aim of the company is to increase
the consumer base. Moreover it can be said they should develop a customer focus
service. Thirdly another objective of the company is to ensure effective functionalities in
terms of marketing communication. With the help of effective open communication the
company head and the employees working for the company will be able to share their
ideas and creativity with the rest of the members. Thus, it should have to be key initiate
for the company to develop and consider all necessary approaches that may operated
the company functionalities and business operations. From the positive feedback the
company will be able to achieve the business success accordingly. With quality
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16BUSINESS OPERATION SYSTEM
productivity the company will be able to gain effective market revenue and commercial
profit simultaneously. The aim of the company must not be bounded within the
objectives rather they should focus on continuous improvement approach as well.
Internal Business Process Perspective
Based on the trends of standard business process, the business objectives are
accordingly prepared. It is expected that with the successful implement implementation
of the business objectives the company will be able to gain economic profit and
competitive advantages. In order to operate the internal business processes all the
environmental impacts are also required to be managed by the business operators.
Total quality management is an important thing that must be maintained and followed to
efficiently operate the old storage warehouse so that they can deliver fresh food to their
consumers throughout the world. As much positive feedback the company will gain that
much commercial profit the company will be gained.
Learning and Growth Perspective
The growth of any company is basically dependent on the learning and the
growth perspectives of the employees. Based on the trading trends and annual report of
the company the objectives are developed. In order to make the employees familiar with
the warehouse cold storage operational abilities it is necessary for the company to
arrange proper training and development programs accordingly. Whatever knowledge
and skills they are gaining from the training session must be evaluated through
performance evaluation. Based on the ability of individual employees incentives or
reward program should have been arranged accordingly. Therefore, in order to achieve
the company objectives they are required to maintain training program, responsibility
and delegation for improving the skills of the employees etc.
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17BUSINESS OPERATION SYSTEM
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