Operation Management of TESCO Sample for Students-Myassignment

Questions: 1.How Can TESCO achieve its Smart Objectives? 2.How Can Villa Maria Winery Optimize its Operational Processes? Answers: 1.Following are the SMART goals that TESCO is aimed at achieving within the next financial year: Identification of the target customers and developing mechanisms for encouraging them to by TESCO products Identification of the products that are highly popular among the customers and emphasize on the production of the same Understanding the specific needs of the target customers and making such products available to them that go along with their requirements. TESO had already started working on achieving the above mentioned strategies, as indicated by the story published in www.businesstoday.in, which report the initiative taken by TESCO in developing virtual stores in South Korea. In the following sections of the report, several other strategies would be discussed that TESCO might undertake efficiently, so as to achieve its SMART objectives. Identification of target customers and developing mechanism for reaching them: The very first step that TESCO should undertake to increase their sales is to identify their target customers and to develop appropriate strategies for gaining their attention (Talk, 2016). TESCO has made one such approach towards the development of virtual stores in South Korea. The said nation is considered to have one of longest working hours, which does not even provide the young executives of country with the time required to go to brick and mortar shops for grocery shopping. TESCO has thus developed virtual stores at busy train and bus stations, at which the tech-savvy generation can have an idea of the products available at the nearest TESCO stores and place orders for the same through their smart phones. The idea has been acknowledge massively in South Korea, which is only indicative of the fact that such virtual stores would also be successful in other metropolitan cities of the world. TESCO can also consider the development of mobile applications that would allow the elderly people to conduct their grocery shopping from home. Identification of popular products and emphasizing on their production: In order to increase the sale revenue of the organization, TESCO should emphasize on making only those products available to the customers that they ask for (and not any TESCO alternative) (Smith, Maull CL, 2014). Although TESCO claims that their in-house products match the quality and standards of all leading brands, overstressing on the same has resulted in a sharp decline in the total revenue generate in the last few years. Thus, at this point of time, TESO should allow customers to choose from a wide range of grocery products of other popular brands, and continue the production of those products that are popular among the consumers. Understanding the specific needs of the target customers: With a aim of understanding the dynamic needs of their customers and making healthier grocery products available to them, TESCO has already removed 2500 tons (approximately) of soaked fat items and 3000 tons (approximately) of food items containing huge quantities of salt from their stores since 2005. Continuing with such efforts would indeed allow the organization to increase its brand name and value, which in turn would facilitate the process of increasing the total sales revenue of the retail chain (Marshall, Metters Pagell, 2016). An illustrative demonstration of the ideas presented in the section above would be mad in the mind map given below. The mind map is being incorporated in this section of the report as to highlight the manner in which the above mentioned strategies would help TESCO in meeting its SMART goals. Mind map: Figure: Mind map depicting the strategies that can be utilized for meeting the SMART objectives of the project. (Source: Developed by author) As depicted in the diagram above, the identification of the target customers of TESCO would allow the retail chain to develop the appropriate mechanisms for reaching the target customers, thus encouraging more customers to make purchase from the retail chain. On the other hand, the identification of the TESCO popular TESCO products would allow the organization emphasize on the production of these products only, while provisions can be made such that the customers can also buy other grocery items produced by leading brands from TESCO outlets only. Last but not the least, TESCO can also identify the products that their target customers are not interested in purchasing, thus leading to the removal of the same from the store shelves. It is expected that the implementation of the above mentioned strategies would allow the TESCO to meet its SMART objectives. 2.The SMART objectives that Villa Maria Winery is currently aimed at achieving are being stated in the section below: Improving the quality of the wine: At present, Villa Maria Winery is experiencing certain issues with their sales figure, typically due to the fact that the quality of the product developed by the winery are of no match with the products being delivered from North America and china. On the other hand, speculations of the entire vineyard being infested with mushrooms have also reached the customers, which have led to a further decrease in the total decrease in the sales revenue. Therefore, the very first SMART objective that the winery aims to achieve is to improve the quality of the products of the Winery, such that it matches the quality of the products currently produced by the rival organizations (Walker, et al. 2014) Bringing in drastic changes in the branding policy of the organization: As identified in the previous assignment, the organization is experiencing issues with increasing the total sale as it is experiencing rising rivalry from other wineries, the market conditions are changing drastically and the marketing and/ or promotional activities under taken by the organization have not been successful at improving their goodwill. Therefore, the second smart objective is to improve the branding strategies of the organization (Bromiley Rau , 2016). In order to meet the above mentioned objectives, the Villa Maria Winery can utilize the under mentioned strategies: Lean Management: Researchers Martnez-Jurado and Moyano-Fuentes (2014) are of then opinion that the lean production, lean manufacturing or the lean production model is that aimed at adding additional values to any product, besides reducing the cost associated with the development of the same, along with the elimination of wastage The owners of Villa Maria Winery can effectively utilize the lean management approach for the identification of the values that the customers expect from the products (thus improving the quality of the product from their perspective) and make efforts towards incorporating the same. The utilization of the lean management strategy would not only allow the organization to increase the sale of their products, but would also facilitate the process of organizational wastage. Business process reengineering: Researcher Tnnessen (2014) is of the opinion that business process re-engineering can essentially be defined as a management strategy that includes the analysis of the current situation of the business and include changes in the existing workflow of the organization (based on the results of the analysis). One of the major issues that the Villa Maria Winery currently experiences is that the market demand for their products has reduced drastically. Besides this, the promotional and branding policies undertaken by the organization in the past, have failed drastically. Thus, the owners of Villa Maria Winery can utilize business process reengineering methods to identify the factors that have lead to the reduction in the market demand of their products, along with the identification of the strategies that can be utilized for changing the scenario. The business process reengineering method would also lead to the identification and incorporation of changes in the workflow of the organization, thus allowing them to increase the supply of products to the market. Potential barriers to optimization of operational processes In the following section of the report, discussions would be made on the identification of the factors that might act as barriers to the optimization of operational processes of the Villa Maria Winery. Conceptual barriers: The very first factor that might act as a conceptual barrier to the process of optimizing the operational activities of the winery is the inability to understand the concepts being utilized for doing the same. According to researchers Bori?, Stanisavljev and Zakin (2016), the inappropriate understanding of the approaches utilized for enhancing business processes often leads to the inappropriate identification of the scope of the entire task, thus leading to its failure. Financial barriers: According to researchers Par et al. (2014), the primary barrier to all organizational processes aimed at the optimization of workflow processes is the financial investment required to do so. As mentioned in the case study of Villa Maria Winery, the financial condition of the organization is not stable at this point of time, courtesy to the reduction in sales volumes and the inability of the owners to manage the finances. Thus, it can be concluded that the owners would indeed experience issues with arranging for the budget required to implement the Business process reengineering and Lean Management processes. Technical risks: Both Lean Management processes and Business process reengineering methods involve the implementation of technological methods and equipments. Needless to say, any issues with the identification, development and implementation of the technological systems and equipments would essentially affect the success of the optimization process itself (Herrmann Guenther, 2017). Organizational resistance: According to Aarons et al. (2015), the greatest barrier to the implementation of any new process or method within an organizational environment is the resistance that the resources currently associated with the work environment pose towards the same. In case of the Villa Maria Winery, the owners have been advised to utilize the Business process reengineering and Lean Management methods for improving the operational processes of the organization. Needless to say, both the methods would lead to the automation of certain operational activities of the organization which in turn would lead to the job loss of some employees. Therefore it is only natural that the employees of the Villa Maria Winery resist the implementation of operational process optimization technique within the winery. Researchers Bori?, Stanisavljev and Zakin (2016) are of the opinion that apart from the above mentioned barriers, the general risks and barriers associated with all organizational projects (eg: time barrier, unavailability of human resources etc) are also associated with those projects that are aimed at the optimization of operational processes . Use of Kaupapa Maori Approach for the issues: The use of the cultural approaches had been helpful for providing the benefit of system development and implementation of the plan and operation. The Maori people had been facing issue of lack of integrated approaches for sorting the planning and development of the organization. According to Pihama (2015), Kaupapa Maori is an approach that is helpful for supporting the development, modification and development of the universal organization for the influential development of Maori at the place. The Kaupapa Maori had been continuously helpful for implementing and developing the plan of operations. The benefits of the use of Kaupapa Maori Approach for planning, organizing, leading and controlling the operations of Maori are, Positive Outcomes- The approach of Kaupapa Maori is helpful for supporting the positive outcomes from any set of operations (Hayward et al., 2017). The people can use the positive outcome from the system to develop better and more effective planning and implementation of the lateral operations. The development of the ongoing operations would be helpful by the use of positive outcomes of the operations in the Maori place. Influential development of planning, organizing, leading and controlling would be helped and assisted by the use of approach. Holistic Development- According to Hayward et al. (2017), Kaupapa Maori provides a holistic modification of the implemented system. The use of system defined theories and knowledge accumulated by the scholars had been helpful for supporting the increment of the approach. The development of the ongoing culture and civilization of the people of Maori can be represented by the use of the Kuapapa approach. The operations of the development would be eased by the use of the approach and it would help in infusing the incorporation of the tools for modification of the organization. Reflective Evaluation- the Kaupapa Maori approach is useful for providing the benefit of self evaluation of the processes and organization (Pihama, 2015). The use of Kaupapa Maori is helpful for depicting the development of planning and modification of the ongoing process in the operations of Maori. The reflective evaluation had been helpful for the modification of the involved community by the deployment of the constructive feedbacks of the people. The influence of the self evaluation had been helpful for modifying the legislative and procurement of the information used for modifying the system tools. The individual self assessment had been helpful for modifying the position of the development tools for the secular informative functions. Deployment of role models: The Kaupapa Maori provides the benefit of deploying role models for influencing the self evaluation of the process. Pihama and Southey (2015), have pointed out that it is crucial for the deployment of the role model for testing the systematic and influential development of tools and organization. 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