Operations Management Challenges for Woolworths Retail Chain Report

This report provides an analysis of the operational management challenges faced by the Australian retail chain, Woolworths. It explores various factors impacting the company's operations, including changing technology, globalization, evolving customer expectations, and job design. The report delves into specific areas such as quality management, global manufacturing, supply chain design, risk management, inventory control, and the Just-in-Time (JIT) method. The analysis highlights the influence of these factors on Woolworths' operational processes and discusses the strategies employed to manage constraints, margins, and balance planned objectives. The report emphasizes the importance of adapting to market changes and managing resources effectively to maintain competitiveness within the retail sector, particularly in light of increasing competition from international players like Aldi. It also underscores the significance of supply chain design, inventory management, and risk assessment in ensuring operational efficiency and financial performance. The report concludes by summarizing the key challenges and strategies that are central to Woolworths' operational success.

RUNNING HEAD: OPERATIONS MANAGEMENT 1
OPERATIONS MANAGEMENT
Challenges to Business Success an
Operations Management Focus
Submitted by:

Challenges to Business Success an Operations Management Focus 2
Contents
Introduction......................................................................................................................................2
Changing Technology......................................................................................................................2
Continued Globalization of markets including 1st and 2nd world entrants....................................2
Changing customer expectations.....................................................................................................3
Changing job designs.......................................................................................................................3
Quality management........................................................................................................................4
Global manufacturing......................................................................................................................4
The most influencing factors on Woolworths Operational Management process:..........................4
Supply Chain Design...................................................................................................................4
Managing constraints and margins...........................................................................................5
Managing risk...........................................................................................................................6
Balancing planned objectives with prepared objectives...........................................................6
Managing inventories...............................................................................................................6
The JIT Method........................................................................................................................7
Resource management.................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Challenges to Business Success an Operations Management Focus 3
Introduction
The report is based on the Australian Retail chain Woolworths. The operational manager has
come across challenges due to operational disruption. The operational managers participate in
stabilizing the organizational policies and procedures in the organization like marketing,
planning, technology and finance. It is difficult for an operational manager to manage the
competing business practices in an organization. These dissimilarities in the business process
have a damaging effect on effectiveness and competence of providing goods with better quality.
A pathetic communication process might hamper the process of order and invoice. The job of
operation manager is to ensure that everyone in the organization is using the same process to
communicate.
Changing Technology
Technology comes with a different type of challenges. All these changes are very expensive to
the company. New technology requires employee training and development that creates problem
at a later stage. These changes help in creating new products and services, thus forming entire
new market. Furthermore, development in technological products and procedure increases the
productivity and reduce costs (Birdi, et al 2008). Online shopping characteristically allows
shoppers to use to find specific models, brands or items. This technological up-gradation
facilitates customers to access the Internet and a valid technique of payment. Online grocery
shopping has become popular considering the growing market trends. The online stores are
almost three times more efficient than traditional supermarkets. This change in the retail sector
has eventually affected Retailers for most favourable picking and pickers or “personal shoppers”.
Innovation and changes creates difficulty for an operational manager in implementing changes
(Stevenson and Hojati, 2007).
Continued Globalization of markets including 1st and 2nd world entrants
Many business organizations have become cynical with sales in the international marketplace.
This is the reason that the old markets have become saturated. With plenty of international
competitors, it is getting difficult to manage the business activities. Multinational companies that
strenuous on distinctive consumer preferences have become perplexed and not capable to take in
the proper decision. The rationale is to gain long-term success by concentrating on every
individual desire (Lambin, Chumpitaz and Schuiling, 2007). Increasing competition in the retail

Challenges to Business Success an Operations Management Focus 4
sector from the foreign organizations like Aldi is posing threat to Woolworths. They had arrived
into the market with extraordinary strategy. Under such a situation, it is tough to manage the
business functions in the most appropriate way. Globalization has increased the level of
competition in the country. Multinational business organizations tend to come up with
competitive policies, hence creating a disturbance in managing the business activities. Aldi is an
ultra cheap German brand entered the Australian market with effective pricing strategies. It
thereby creates excess competition in the market creating an adverse situation for the operational
manager. In order to gain competencies in the market, it is necessary to manage the business
activities in an effective way. Woolworths has to formulate policies according to the market
demand and interest of the upcoming market players (Slack, 2015).
Changing customer expectations
Customer’s expectations are changing at a fast pace changing the complete frame of a retail
sector. It has become difficult to manage individual interest. For an operation manager, it is
difficult to incorporate the changes that are taking place in the business environment. Meeting
their expectation is the important aspect in order to attain market competencies. With the
changing behavior of customers it is important for the organization to handle each and every
function in the best possible way. This is to gain organizational competencies. The ultimate
purpose of an organization is to match up with the Customer’s expectation. In order to deal with
the changing market behavior it has become important to manage consumer behavior. This will
ultimately help in gaining better results (Wheelen and Hunger, 2011).
Changing job designs
Job designs are important for the business in gaining business competency. A change in the Job
design is a core function of human resource management. The operational manager has to deal
with the changes and has to incorporate the changes into the system accordingly. This is
important for dealing with the organization related issues. The requirement of contents,
techniques and relationship of jobs allow in arranging technological and organizational
requirements. A changing job design at Woolworths has affected the people in the organization
as well as the social and personal requirements. Every employee need to be aware of the changes
which in itself is a difficult task. Details regarding a change need to be discussed among each

Challenges to Business Success an Operations Management Focus 5
and every employee working in the organization. It is difficult to coordinate the functions in the
organization in a better way (Manu and Mentzer, 2008).
Quality management
It is important for the betterment of the organization. The operation manager has to ensure
quality of the work. It is difficult for the business organization to manage the changes in the
organization. Ensuring quality of a product is the primary purpose of the business. This allow in
managing the business activities in the most appropriate way. The quality management at
Woolworths is done by the Operational manager. Any flaw in the function is scrutinized at an
early stage. Later, the duty of the manager is to ensure the continuity of the work. This is
important for a business organization to ascertain the role and function of each and every
individual attached with the business functions. The most appropriate function is to handle the
organization quality assurance team. This is to ensure regularity in meeting the organizational
objectives. Quality can only be assured if the functions are managed in a better way. Quality
management functions are critical for the organization in dealing with specific issues (Jacobs,
Chase and Lummus, 2011).
Global manufacturing
It is the duty of the operational manager to ascertain the activities related to manufacturing and to
assemble the goods accordingly. Managing global manufacturing is effective in dealing with the
functions taking place in the organization. Woolworths has ample of business functions that need
to be handled carefully In order to manage the business activities. For attaining continuity of
goods, it is important to deal with the specific issues (David, 2011). The purpose of attaining
global quality is the process of managing resources in the best possible way. In order to gain
competencies, it is evident to manage the best possible occupation of the resources that are
available at one point of time (Peppard and Ward, 2016).
The most influencing factors on Woolworths Operational Management process:
Supply Chain Design
Woolworths works on a supply chain design process important to supply the goods timely to the
store from the warehouses. The supply chain is designed to help the organization in getting
goods on timely basis. It has become important aspect of the organization to deal with the supply

Challenges to Business Success an Operations Management Focus 6
design and management of resources to deliver goods on timely basis. It is necessary to match up
with the expectations of the customers largely (Nahmias and Cheng, 2009). It is important to
have an appropriate supply chain design process that can help in meeting the pre-requisite needs
in an organization. This is to ensure regular availability of goods and resources in order to
manage effectiveness. Supply chain is a concept important for managing resources. The design is
managed in a way that helps in organizing different functions for gaining effectiveness. The
reason is to administer the functions in a best possible way. This is important to manage the
resources in best possible way. The supply chain process is to provide with an effective delivery
of goods to the customers through a proper process. This process allow in allocating and
managing resources available. Supply chain design is organize assets to improve productivity
and shareholder value. Woolworths has to consider market and sourcing plans that will produce
the best financial performance. For gaining effectiveness it is important to manage the,
warehouses and distribution centers to make the most of long-term profit (Russell and Taylor-Iii,
2008).
It is significant to appreciate the efforts regarding the deployment of possessions for optimal
operational and financial performance. It is due to the involvement of supply chain process and a
concrete objective to gain market abilities. The financial impact is optimal on supplier to
consumer. The purpose of this process is to cut down the costs (Manuj and Mentzer, 2008).
Managing constraints and margins
These constraints occur where the arrangement of the utmost income and least cost solutions will
be different; the solution regarding the facility number, locations, sizes, product mix, will be
different. The supply design chain has to manage the design in order to gain high efficacy. In a
long run, it is evident to manage the resources to gain marketability (Klein, 2009).
The Conflicting concerns regarding the expenses and margins related with the process. This is to
manage the supply chain through numerous products with capability. This causes a change in
profit margins. Likewise, if product demands are tremendously changeable, the low cost solution
will not direct to the highest profits. The supply chain design solutions that are available at
Woolworths help in employing methodologies that helps in maximizing profit at a least cost
(Tang and Musa, 2011).

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Managing risk
There is uncertainty and risk in demand, supply and lead times that companies need to factor in
when designing supply chains. Companies need to be able to adjust to unforeseen market
changes (Somasundaram, 2017). Woolworths supply chain design explanation assist in
predicting alternative risk management strategies varying the performance and ability to act in
response to market changes. The organization has to look after the time, capital and other
resources to implement the strategies. These tools also facilitate in making profitable decisions
with no trouble and in achieving and evaluating assumptions during the original design process
(Chung, 2016).
Balancing planned objectives with prepared objectives
Woolworths need to balance short-term outlook with long term strategy and objectives in order
to gain competency, supply chain design desires to give with detailed insight to manage demand
and meet profitably. Woolworths design solutions help in optimizing long-term ability plans for
manufacture and warehousing in order to allocate recourses from warehouse to the retail outlet.
The design is managed in a way that helps in organizing different functions for gaining
effectiveness. The reason is to administer the functions in a best possible way.
Managing inventories
The purpose of inventory management is to manage the ordering cost and oversee the process of
effectiveness. Inventory management is about controlling and ordering the goods at shortage.
The process looks after the process of overseeing and controlling of finished goods. This act as
an effective parameter to represent the investment linked with the goods. Woolworths do acquire
costs to store, track and assure inventory. This has led to the creation of important financial
problems for a business. The misconduct of resources thereby led to Inventory surplus or an
inventory deficiency (Defoe, 2013).
In order to manage the inventory in an effective way, it is important to create a purchasing plan
in order to ensure availability of goods that are needed as an existing inventory and its use. The
common inventory-management use by Woolworths is the just-in-time (JIT) method, where it
plans to get items as they are desirable somewhat than preserving high inventory levels, and
materials requirement planning (MRP).

Challenges to Business Success an Operations Management Focus 8
The JIT Method
Woolworths uses the JIT method to manage the inventory in a better way. The method helps in
reducing waste by using a JIT inventory management system. Thy only keep the goods that are
required at the retail outlet. They are necessary to manage the produce and sell products in
inventory that decreases the storage and insurance costs, and the cost of liquidating or discarding
unused, unwanted inventory.
Woolworths is managing the inventory, manufacturers and retailers to work together to observe
the availability of resources and meet the desired goals. The JIT process ensure availability if
resources at a right time. The overall purpose of the technique is to acknowledge availability of
goods at a right time. The goal of an organization is to manage the purpose of the approach in
order to gain a better insight into the matter. Meeting their expectation is the important aspect in
order to attain market competencies. With the changing behavior of customers it is important for
the organization to handle each and every function in the best possible way. Regular availability
of goods ensures competitiveness in the organization. People tend to switch to other retail store
in case of shortage of goods. Australian market is already very competitive. Under such a
circumstance it is important to meet the required norms. Coles, Aldi are the other retailers who
are meeting up with customer requirement. This will help in managing the organizational goals
and delivering effective results (Goolsby, Reed, 2016).
Resource management
The resource management method is resource leveling approach. It focuses on the resources on
the concept of both the excess and limited inventories available. The resources are used in an
appropriate way by aligning the data in a way that helps in resource configuration and
assembling. The quality management at Woolworths is done by the Operational manager. Any
flaw in the function is scrutinized at an early stage. The purpose is to achieve 100% utilization
unlikely, when weighted by significant metrics and subject to constraints. The purpose is met a
minimum service level and minimizing cost. The purpose is to allocate Project Resource
Allocation Matrix is uphold to visualize the resource allocations. The principle is to spend in
resources in order to unleash the desired capacity to meet the changes. A measurement of
resource expansion and growth is important for managing investment in resources that help in
additional investment to develop an original capability, at a lower investment than disposing of

Challenges to Business Success an Operations Management Focus 9
the existing resources that are available with the organization. Woolworths is making efforts in
managing the resources in best possible way to organize the availability. In a long term planning,
it is important to develop a resource management plan to gain contingencies (Hyam and Ong,
2016).
It is the duty of the operational manager to check the availability of the resources. It is important
to manage the list of the resources available and to frame an effective plan in order to gain
effectiveness. The requirement of contents, techniques and relationship of jobs allow in
arranging technological and organizational requirements. The purpose of resource management
is to develop plan according to the market. Woolworths is managing the resource in a better way
that helps in corporate resource management process, mostly assuring that resources are never
over-allocated. The purpose is to ensure timely availability of resources in every store. The
purpose is to focus resources, dumping less promising initiatives in a fragmented market. Details
regarding a change need to be discussed among each and every employee working in the
organization. It is difficult to coordinate the functions in the organization in a better way.
Management of resources has become critical for the organization in dealing with every
situation. This help in ensuring better availability of resources and dealing in better results
(Liguori, 2012).
Woolworths has an effective resource management planning and development in order to gain
market effectiveness. This is important for managing the plan and its functions in the changing
market scenario. For an operation manager, it is difficult to incorporate the changes that are
taking place in the business environment. Meeting their expectation is the important aspect in
order to attain market competencies (Low, 2016).
Conclusion
The report includes the role of an operational manager in order to deal with the challenges in the
market. Woolworths is a significant market player with an appropriate market plan. The role of
an operational manager increases with time. It is his responsibility to look into each and every
function. The possibility is to gain market appropriateness and marketability. The report focuses
on Changing Technologies, Continued Globalization of markets including 1st and 2nd world
entrants, Changing customer expectations , Changing job designs , Quality management and
Global manufacturing. This is to achieve market objectives and long term sustainable objectives.

Challenges to Business Success an Operations Management Focus 10
Operational manager has a duty to develop an effective plan by implementing an effective
operational management exercise. This will help in gaining competencies in the market for
allocating resources on timely basis. It is the basic requirement for gaining market competencies
and desires. Woolworths design solutions help in optimizing long-term ability plans for
manufacture and warehousing in order to allocate recourses from warehouse to the retail outlet.
The purpose of a desired plan is to manage the organizational plan and objectives pertaining to
operational management and development. This plan is important for fulfilling the necessary
results. Hence it is clear that, for an operational manager to manage the competing business
practices in an organization. These differences in the business process have a detrimental effect
on effectiveness and efficiency of delivering quality goods to the customers.
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Challenges to Business Success an Operations Management Focus 11
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