Essay on Operations Management at Morrisons and Yankee Candle Company
Number of words: 1740
Operations management refers to activities that revolve around planning, organizing and supervising in the context of production, manufacturing and provision of services. Organization in the world must manage their operations in a manner that promotes efficiency and convenience (Hendijani, 2019). The report seeks to explore operations management at two companies that have done well in various business sectors. The first company is Morrisons supermarket that operates in the retail sector and the second one is Yankee Candle Company. Morrisons is the 4th largest retail supermarket in the United Kingdom and examining its operations might prove strategic towards increasing the scope of knowledge on operations management (James, 2017). Equally, Yankee Candle Company is one of the largest American organizations that specialize in the manufacture of scented candles and related accessories. The report aims to examine operation management issues at the two companies at the input or process stage. Equally, it is vital to examine performance objectives and how the same can be improved for both Morrisons and Yankee Candle Company (Koleva and Andreev, 2018). Examining existing literature on operations management can help gain a deeper insight into the discussion topic. Operations management for the two companies can help shed more light on issues that affect the retail and service 9ndustr across the world.
2.0 Input, Output and Transformation Process
2.1 Morrisons Supermarket
Morrisons supermarket in the United Kingdom undergoes different stages in its operation management. The input process captures aspects such as equipment that is used at the supermarket (Monteiro, Hopkins and e Melo, 2020). For instance, computers and digital technology used to handle various aspects is classified under inputs. Customers and suppliers who bring various products for Morrisons supermarket. In the transformation stage, system improvements aimed at improving efficiency of service delivery at the online supermarket. In the output process, Morrison provides food and drink products for customers in the market (Zamudio and Jewell, 2018). Equally, profits gained from the business are part of the output process at Morrisons online retailers. It is important for the online retailer to run its operations in an efficient manner for improved profitability.
2.2 Yankee Candle Company
Yankee Candle Company operates in the manufacturing sector and has done well in the last few years in the industry. The input process has important aspects such as equipments and resources that are required for production (Demeter, 2017). Suppliers who help the company to manufacture items should be captured as part of the input process. Employees and customers for the company form important part of the input process at Yankee Candle Company (Zamudio and Jewell, 2018). At the transformation stage, planning and scheduling that happens forms a crucial step of the manufacturing company that is based in the United States (Koleva and Andreev, 2018). Equally, process design and other stochastic processes within the company are part of the transformation stage. The output stage cap6tures products provided in the market, profitability, accounts information and other unit costs.
3.0 Operational Issues
Operational issues in an organization can be detrimental to achievement of set objectives in a significant way. The first issue that might face Morrisons online retailer is increasing competition from established brands in the market (Monteiro, Hopkins and e Melo, 2020). High competition in the market is posing a risk as profitability for Morrisons will decline. Approaches that the company can use towards handling increasing competition can determine the level of success that can be achieved. Morrison can gain a competitive advantage if it applies the right methodology towards handling of increasing competition in the industry. Failure to adopt the right strategy for Morrisons will be detrimental to handling of lean operations for the company. The second issue that Morrisons might face in its operations involves cyber risks that can expose their systems to failure. Online transactions must be conducted in a way that promotes security and privacy of information (Hendijani, 2019). Failure to protect credit card information and delivery address for individuals might be detrimental to effective operations for Morrisons. The company can do better if it works on the operations issues mentioned in the right way.
Yankee Candle Company might face issues in its operations that might lead to reduced profitability. The first issue that the company might face in the industry is dealing with compliance in countries where the company operates (Palšaitis, Čižiūnienė and Vaičiūtė, 2017). Being an American firm, the company might face sanction in various countries where it operates. It is essential for the organization to come up with a strategic approach towards compliance. Failure to comply with set standards in various countries can make authorities ban the organization from conducting its operations. For instance, failure to pay corporation tax in the economy of operation might be detrimental to compliance standards that have been put in place (Hendijani, 2019). Another issue that Yankee Candle Company might face in its operations is monitoring performance. It is important to highlight that a company cannot do well in the market without assessing performance. The company should formulate a detailed set of performance indicators that should be used to check its progress within each economy of operation. The fact that company is large makes handling of matters and operations complex (Demeter, 2017). It is essential for management to assess performance in a bid to administer effectiveness and efficiency for the business. Yankee Candle Company can do well in managing its operations if it assesses performance and complies with set regulations in each country of operation.
4.0 Performance Objectives
Performance objectives include aspects that aim to improve input, output, and transformation processes for both Morrisons and Yankee Candle Company. The first performance objective for Morrisons is dependability in the market (Holmström et al., 2019). Customers in the market prefer organaiations that can be dependable in the manner that they run their operations. Morrisons provides online food and drink services to people and there is a need for it to improve its dependability (James, 2017). People must be able to count on the organization and its products for them to develop a positive perception. Lack of reliability is an aspect that can be detrimental to achieving set objectives in the market. The second performance objective for Morrisons is the quality of food and drink products that the market receives. It is essential to note that quality is important in creating a good mage about a brand within the market (Palšaitis, Čižiūnienė and Vaičiūtė, 2017). Providing poor quality products and services might be detrimental towards growing a good reputation. The online retailer will gain a competitive advantage and increase efficiency in the market if it becomes dependable and the quality is improved.
Cost and flexibility are two performance objectives that should be examined for Yankee Candle Company. The cost of its products in the market should be a matter that should be taken into consideration. High costs for products might be a step towards reducing competitiveness in the industry (Holmström et al., 2019). The company is well established in various markets that have many competitors. The high level of competition should be a reason for the company to sell products at affordable prices. Equally, the cost of operating in various markets should be taken into consideration as the management might want to utilize available resources(Palšaitis, Čižiūnienė and Vaičiūtė, 2017) . For instance, the cost of obtaining raw materials might differ from one place to another depending on economic factors. The second performance objective that is significant is flexibility of the company in executing various operations. Flexibility is essential as it can help the organizations adapt to various changes that might happen for the company in the industry. For instance, compliance to set standards and regulations in business must be addressed differently depending on the location (Demeter, 2017). Change within an organization is inevitable and it the duty of management to introduce strategic approaches that can promote efficiency in performance. Yankee Candle Company should address issues of cost and flexibility as crucial performance objectives.
To sum it up, operations management involves planning, organizing and supervising activities based on manufacturing and provision of services. Morrisons and Yankee Candle Company form two multinational organizations that can help understand the scope of performance and management of operations. The input, output and transformation processes must be taken seriously in a way that promotes performance. There are various performance objectives that the two organizations might face in the market including cost, flexibility, dependability and quality of products. Morrisons should purpose to become dependable in the market in a manner that promotes their reputation. Equally, Yankee Candle Company should be flexible in its operations in a manner that promotes compliance with set standards in various markets. The cost of products in the market is another performance objective that should not be overlooked for the company. Operational issues such s delayed service should be considered and eliminated as a way of promoting performance for both organizations.
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