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MAN515 Operations Management Assignment Help
The operational management in an organization is the department where the activities are conducted to make the production and manufacturing process more effective and efficient. The operational management holds the duty to keep the production process and the technology used for the purpose updated. The available resources in the organization are used in an effective manner to provide the company with the benefit of increased production with the implication of low cost. The process of operational management included in the conversion of the raw material received from the supplier to the finished goods and services. The importance of operational management in an organization can be identified with the benefits that the company may enjoy with a systematic production process engaged to develop high-quality goods at low cost and affordable price. The companies develop the products in such a way that the products and the services of the company gain more and more customers with the additional features and value added to the existing product or a service to make it more attractive and present the product or the service in the manner that the need for the product and the service generated automatically in the minds of the customers. These activities of the company are termed as customer benefit package offered by the companies. The value changes analysis as suggested by Porter is the whole process of developing the finished valued product or service from the raw material. The organizations keep a check on each and every step in the production process in order to make the product more valued and efficient and to gain the competitive advantage for the company. The operational strategies are the part of operational management which includes the preparation of the policies which can be applied to the operational process of the company. These strategies are prepared by the top level management team in the organization and communicated to the line managers in order to the fulfillment of the objectives of the company. The line managers control the production processes being followed by the organization. For the purpose to understand the operational management, value chain along with the explanation of customer benefit packages, two organizations have been chosen. One of the organization is dealing with the hotel industry, named as Hilton and the other company taken for the study is the company operates in the retail industry named as Marks & Spencer. The two companies operate the business in two different industries and categorized as product offering company and the service serving company. These companies have different customer benefit packages and value chain process which is being explained in the report.
Customers have become the most important element for the success of the organizations and thus the customers are required to be served with the value products at affordable prices that can achieve the satisfactory level of the customers. Core products are the basic products that are prepared or manufactured by the companies which can only serve the basic needs of the customers and when additional features are added to these products, they become the product or service that can meet the challenge of the market and beat the competition with its core competencies. Customer benefit package for the products refers to the addition of the features to the core product of the company in order to make the product more attractive. The purpose of adding the product can be the values such as attractive packing, promotional advertisements and developing various variants in the range of the products. Similarly, the uses of the products can also be increased so that the company can gain the larger market segment and more customers to the existing customers. On the other hand, customer benefit packages for the service industry make the services attractive to the clients such as promotional offers in the services. The customer benefit packages help the companies to gain the competitive advantage and establishing a reputed brand image of the company in the minds of the customers. The two companies selected for the study are the Marks & Spencer which adopts the approach of the customer-centric manufacturing and production of the clothes which can satisfy the needs and demands of the customers. The company manufactures the vied variety of clothing which serves the needs of the customers of the different market segment and various age groups. Hilton, on the other hand, is the company in the hotel industry. The customer benefit packages of Hilton make the holiday packages of the hotel more attractive to the customers such as providing additional features and facilities of adventure sports in the holiday packages, promotional offers in the peak season to gain the competitive advantage over other hotels in the industry (Muro & Getembe, 2013).
The similarities in the customer benefit packages of Marks & Spencer and Hilton are;
1. The customer benefit package of both the companies focuses on the needs and preferences of the customers.
2. CBP for both the companies involves the process of the product and service development according to the recent trends in the market.
3. The motive of both the companies is to attract the new customers as well as retain the loyal customers of the companies.
4. Marks & Spencer and Hilton gain the competitive advantage with the practices of providing the customer benefit package along with the operations of the value chain and operational management.
5. The CBP benefits the companies with the generation of high revenue and establishment of the position of the companies in the market (White, 2013).
The differences in the customer benefit package of Marks & Spencer and Hilton are;
1. The features that are added in Marks & Spencer are with concern to the clothing range of the company and the range of variety added to it. Whereas the features that are added by Hilton are in the form of intangible additional services being added to make the package of customers more attractive.
2. The customer benefit package involved in Marks & Spencer is concerned with the usage of the product and for Hilton is the experience that the customers gained after the service of the company.
3. The difference between the customer benefit packages for both the industries can be considered in relation to the market segment which is targeted by both the companies.
4. In Marks & Spencer, the benefits include the increasing advertising strategies, quality in the clothing, the range of clothing etc. In Hilton, the benefits include premium quality services which can last the positive impact on the customers.
The value chain in the companies is adopted in order to produce the efficient and effective products and services. The value chain model has been explained by Porter in five elements and each of the element is the important part of the production process for the purpose to develop the quality product (Krykavsk & Patora-Wysocka, 2015).The elements of Porter’s value chain model are;
Inbound logistics where the raw material are gathered by the organization from the suppliers and the organizations need to develop and maintain a good relationship with the suppliers.
Operations are the process which consists of the activities of production in order to convert the raw material into finished product.
Outbound logistics is the process to transport the final products to the warehouse of the company.
Marketing and sales are the promotional activities conducted by the company to present the product or the service in front of the customers in the market.
The analysis of the value chain model makes the companies concentrate on the steps involved in the production and manufacturing of the product or the services and then preparing them to present to the customers. The effective value chain can help the company to gain greater revenues for the company.
Service considered the process of after-sales service provided to the customers in order to make the customers satisfied with the product and the service of the company.
The advantages of value chain of Marks & Spencer being a product-oriented company are;
1. The company through inbound activities can develop and maintain better relations with the suppliers of the company.
2. The increased productivity can be achieved by the company.
3. The outbound element of the value chain may benefit the company to keep the stock in the warehouse in an effective way.
The disadvantages of value chain of Marks & Spencer are;
1. In the application of an effective value, chain process can involve the cost of the organization in terms of advanced procedures adopted by the company.
2. There may be a case that the value chain may not provide the desired benefits for the company.
The advantages of value chain for Hilton are;
1. The hotel can gain competitive advantage with the efficient value chain in the services of Hilton.
2. The element of operations considers the efficiency of services provided by the hotel.
3. The reputation of the hotel can be increased by better services by the hotel.
The disadvantages of value chain for Hilton are;
1. The value chain makes the company to segment the activities of operations of the company which can result in the overlooking of the important factors.
2. The concept of the value chain is a concern to the manufacturing units and less to the service industry.
Business strategy is the process of preparing and developing the strategies and policies in order to decide the activities which can help in the accomplishment of the objectives of the company whether dealing in the retail industry or companies operating in the service sector. Business strategies lead to the formulation of business planning for the betterment of the organization along with the effective allocation of the available resources of the company. The product company business strategy will cover those activities in which the strategies are being prepared for the development of a valuable product. An example can be taken of Marks & Spencer, a product company which applies the product strategy in the efficient production of clothes. The company initiates the strategy by selecting the target market for the clothing range of the company. Creation of some unique selling proposition for the products of the company in order to gain the competitive advantage for the company. The quality check and the pricing policies are being applied to the organization to generate higher revenues (Teece, 2010).And as the clothes are ready as the finished product, the business strategy in the product company focuses the efforts on the effective distribution channels for the promotion of the products in the market and in the case of Marks & Spencer, the company can advertise the brand through print media in newspaper and magazines, hoardings, etc.
The operational strategy for Marks & Spencer may include the steps that are taken to make the production operations smooth. The strategy is prepared to keep a check on the technology used for the manufacturing of the clothes. The operational strategy focuses on the changes that the production process needs to engage the resources according to the changing requirements. The policies of the competitors are also to be considered such as pricing policies of competitors. The strong relationship should be maintained with the suppliers and the production process should be focused according to the needs and demands of the customers. The low production cost will benefit the company in maintaining the position of an affordable brand in the market.
The competitive priorities are the competencies that Marks & Spencer must possess to establish the brand with the different prepositions in the market and gain the competitive advantage over other clothing retail firms. These competitive priorities can be obtained by keeping the process updated. The company should get the idea about the advertising campaigns of the competitor firms and should engage in the efficient distribution channels in order to gain the attention of more customers and to attract the customers in such a way that they do not switch to the other brands available in the market (Mabry, L. 2012).
Service Company like Hilton hotel is engaged in the business strategies which focus on the development of attractive services for the customers that can deliver the services worth value to the customers. The strategies can involve the planning and policies regarding the offers that can be made such as the promotional offers on the tour packages or the holiday packages in the peak season. The services in the form of amenities can also become the part of the business strategies which can include the services of private pools, adventurous sports, special packages at offered prices and providing the customers with the ambiance to enhance their experience. The business strategy for Hilton can also involve the procedure of delivering the services to the clients on time and introducing a new service implying the innovative ideas for the betterment of the hotel.
The operational strategy for Hilton can be the activities that are involved in the operations of the hotel. The strategies concerning the research on the needs of the customers, the strategies can be prepared for the level of competition that the hotel is facing and accordingly the strategies can be prepared to distinguish the hotel from the policies of the competitive hotels in the industry. Better comfort can be offered to the customers in the form of effective room services.
The competitive priorities for Hilton can be the pricing policies that can be implemented to apply for the services of the hotel. The services of the hotel should be designed in a way that can serve the satisfaction level of the customers of the hotel. The offers in the peak season can be designed in a manner that they become more attractive to the customers then the offers presented by the competitors. The quality of food should also be improved along with the amenities of the hotel.
Conclusion & Recommendations
The recommendations that can be made for the two categories of the companies which consist of one of the production company which is Marks & Spencer and one of the service company which is chosen as Hilton hotel. Marks & Spencer can improve the operational management of the company so that the company will be able to manufacture the clothes of the latest technology and considering the choices of the customers. The customer-driven approach of Marks & Spencer should be maintained by the company along with the development of the core competencies in terms of unique production process, advertising process and the improvement in the internal environment of the company. For the customer benefit package, the company should keep on progressing in the diversification of the products of the company. Marks & Spencer should also focus the efforts on the value chain model where the company can improve the production process and analyze the steps in the production process. The company is advised to add those features to the products which can enhance the value of the product both for the customers as well as the organization. Similarly, the companies operating in the service industry like Hilton can be recommended to apply the competitive priorities and should differentiate the services and offerings from the competitors’ hotels.
This report has been prepared to explain the concept of operational management in the production company and the service providing company. For the purpose of the research on the importance of the operational management in these two different types of categories of the companies, the example has been taken of the organization like Marks & Spencer which is a clothing retail company situated in UK, considered as the product company and Hilton hotel, situated in London, considered as the service company. The report includes the importance of the operational management in the context of the two companies along with the description of the value chain model developed by Porter. It has been concluded with the explanation of the advantages and the disadvantages of the value chain for Marks & Spencer and Hilton, that the concept is more suitable for the production company. The report consists business strategy of the Product Company and service company and the operational strategies operated by these companies. The report also focuses on the competing priorities that the companies should develop for the purpose of the attainment of the competitive advantage and gain a reputed position in the market.
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